I
104TH CONGRESS
2D SESSION
H. R. 3513
To establish limitations on the ability of a Federal agency to pay a contractor
under a contract with the agency for the costs of compensation with
respect to the services of any individual.
IN THE HOUSE OF REPRESENTATIVES
MAY 22, 1996
Mr. SANDERS introduced the following bill; which was referred to the Commit-
tee on Government Reform and Oversight, and in addition to the Com-
mittee on National Security, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To establish limitations on the ability of a Federal agency
to pay a contractor under a contract with the agency
for the costs of compensation with respect to the services
of any individual.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. LIMITATION ON COMPENSATION PAID UNDER
GOVERNMENT CONTRACTS.
(a) ARMED SERVICES ACQUISITIONS.—(1) Section
2324 of title 10, United States Code, is amended—
(A) by redesignating subsection (l) as sub-
section (m); and
(B) by inserting after subsection (k) the follow-
ing new subsection (l):
‘‘(l) LIMITATION ON COMPENSATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the head of an agency may not obligate funds to pay
a contractor under a contract with the agency for
the costs of compensation with respect to the serv-
ices of any one individual to the extent that the total
amount of the compensation paid in a fiscal year to
that individual exceeds $200,000.
‘‘(2) AGGREGATION RULE.—For purposes of de-
termining the limitation on payment to a contractor
under paragraph (1), all contracts entered into by
the contractor with the agencies covered by this
chapter and with all executive agencies (if any) shall
be treated as one contract, and the $200,000 limita-
tion with respect to the services of an individual in
a fiscal year shall be allocated among the contracts
in the manner prescribed in regulation by the Ad-
ministrator for Federal Procurement Policy.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) The term ‘compensation’ includes sal-
aries, bonuses, deferred compensation, stock op-
tions and payouts, certified indirect costs, re-
structuring costs, and performance-based pay-
ments.
‘‘(B) The term ‘executive agency’ has the
meaning provided by section 3 of the Federal
Property and Administrative Services Act of
1949 (41 U.S.C. 472).’’.
(2) Subsection (l) of section 2324 of title 10, United
States Code, as added by paragraph (1), applies to con-
tracts entered into after the date of the enactment of this
Act.
(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section
306 of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 256) is amended—
(A) by redesignating subsection (l) as sub-
section (m); and
(B) by inserting after subsection (k) the follow-
ing new subsection (l):
‘‘(l) LIMITATION ON COMPENSATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the head of an executive agency may not obligate
funds to pay a contractor under a contract with the
agency for the costs of compensation with respect to
the services of any one individual to the extent that
the total amount of the compensation paid in a fiscal
year to that individual exceeds $200,000.
‘‘(2) AGGREGATION RULE.—For purposes of de-
termining the limitation on payment to a contractor
under paragraph (1), all contracts entered into by
the contractor with all executive agencies and with
the Department of Defense, the Coast Guard, and
the National Aeronautics and Space Administration
(if any) shall be treated as one contract, and the
$200,000 limitation with respect to the services of
an individual in a fiscal year shall be allocated
among the contracts in the manner prescribed in
regulation by the Administrator for Federal Pro-
curement Policy.
‘‘(3) DEFINITION.—In this subsection, the term
‘compensation’ includes salaries, bonuses, deferred
compensation, stock options and payouts, certified
indirect costs, restructuring costs, and performance-
based payments.’’.
(2) Subsection (l) of section 306 of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C.
256), as added by paragraph (1), applies to contracts en-
tered into after the date of the enactment of this Act.
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