Devil's In The Details For New Contractor Pay Cap

By Dietrich Knauth (January 6, 2014, 7:05 PM EST) -- Congress finally acted in December on long-simmering proposals to reduce the amount that the government will pay toward contractor salaries, but implementing a new cap will require harmonization of competing laws and a careful consideration of what compensation costs will be included in the new rule, contractors say.

The two-year budget agreement signed by President Barack Obama on Dec. 26 restores some stability after years of herky-jerky budgeting that culminated in a government shutdown in October. But the deal isn't all good news for contractors — it reduces what the government will pay toward contractor salaries under cost-reimbursement contracts from nearly...

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