Page:United States Statutes at Large Volume 111 Part 2.djvu/756

 Ill STAT. 1836 PUBLIC LAW 105-85—NOV. 18, 1997 (c) DEFINITION. — The term "micro-purchase threshold" has the meaning provided by section 32(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 428(f)). (d) REPORT. — Not later than October 31, 1998, the Inspector General of the Department of Defense shall submit to Congress a report on the results of the audit performed under subsection (a). SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CER- TAIN CONTRACTOR PERSONNEL. (a) CERTAIN COMPENSATION NOT ALLOWABLE AS COSTS UNDER DEFENSE CONTRACTS.— (1) Subsection (e)(1) of section 2324 of title 10, United States Code, is amended by adding at the end the following: "(P) Costs of compensation of senior executives of contractors for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds the benchmark compensation amount determined applicable for the fiscal year by the Administrator for Federal Procurement Policy under section 39 of the Office of Federal Procurement Policy Act (41 U.S.C. 435).". (2) Subsection (1) of such section is amended by adding at the end the following: "(4) The term 'compensation', for a year, means the total amount of wages, salary, bonuses and deferred compensation for the year, whether paid, earned, or otherwise accruing, as recorded in an employer's cost accounting records for the year. "(5) The term 'senior executive', with respect to a contractor, means— "(A) the chief executive officer of the contractor or any individual acting in a similar capacity for the contractor; "(B) the four most highly compensated employees in management positions of the contractor other than the chief executive officer; and "(C) in the case of a contractor that has components which report directly to the contractor's headquarters, the five most highly compensated employees in management positions at each such component. "(6) The term 'fiscal year' means a fiscal year established by a contractor for accounting purposes.". (b) CERTAIN COMPENSATION NOT ALLOWABLE AS COSTS UNDER NON-DEFENSE CONTRACTS. — (1) Subsection (e)(1) of section 306 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by adding at the end the following: "(P) Costs of compensation of senior executives of contractors for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds the benchmark compensation amount determined applicable for the fiscal year by the Administrator for Federal Procurement Policy under section 39 of the Office of Federal Procurement Policy Act (41 U.S.C. 435). ". (2) Such section is further amended by adding at the end the following: "(m) OTHER DEFINITIONS.—In this section:

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