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Paper or plastic and other news

Fed / Contractor Compensation Issues Are Burning Red Hot
Scott Amey – (POGO) – February 3, 2012 – Compensation was a hot topic this week–here’s a recap of the biggest developments:

Monday: The Congressional Budget Office (CBO) released a study that found that federal employees, on average, are paid 16 percent more than employees in the private sector with the same education.

Tuesday: The White House blogged that the contractor executive compensation cap of $693,951 should be reduced to a “level on par with what the Government pays its own executives – approximately $200,000.”

Wednesday: The House passed a bill (H.R. 3835) freezing federal salaries through 2013.

Thursday: The Senate proposed a bill to freeze civilian pay through 2014 and cut the civilian workforce.

You might recall that in 2011, the FY 2012 National Defense Authorization Act (H.R. 1540) included a provision that extended the reimbursable compensation cap to all defense contractors (with a large loophole for top-talented scientists and engineers that is ripe for abuse). This might sound good, however the cap is expected to jump to approximately $750,000 (see p. 21) in 2012. Although, one might question that cap because it was based on “commercially available surveys of executive compensation,” which included the “5 most highly compensated employees in management position.” With the new cap applying to defense contractor employees, it seems top-heavy to use the old formula. (Click HERE for article)

13th ESC commander dies of apparent natural causes in Afghanistan
Brigadier General Terence J. Hildner
(Fort Hood Press Center) – FORT HOOD, Texas – February 3, 2012 – Fort Hood officials have released the name of a Soldier who died of apparent natural causes Feb. 3 in Kabul, Afghanistan.

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