PSC, through the Council of Defense and Space Industry
Associations (CODSIA), on August 26, responded to interim and proposed FAR
rules to implement the 2012 National Defense Authorization Act provision
requiring the cap on executive compensation to apply to all employees
performing under defense contracts.
The two sets of comments, available here
and here
raised concerns that the interim and proposed rules improperly applied the
expansion to contracts that were forged before the law expanding coverage went
into effect on December 31, 2011. Such retroactive applications would cause the
government to breach all contracts established before the effective date,
CODSIA said. In addition, CODSIA said that, contrary to the rules’ Regulatory
Flexibility Act statements, the rules did impose a burden on contractors, particularly
small businesses, to maintain more than one billing rate structure for 2012,
2013, and possibly several years into the future. Many systems are not designed
or configured to process different rates for the same work, the comments said.
