The Senate Armed Services Committee has approved an amendment to the fiscal year 2013 National Defense Authorization Act (NDAA) that would limit reimbursement of salaries for DoD contractors to $230,700, the salary of Vice President Joseph Biden.
Senator Grassley pointed out that private companies can still pay their employees whatever they want but they should not be allowed to pass salaries on to the taxpayers that are three times what a cabinet secretary makes. (The current compensation limit on Government contracts is $763 thousand.) Senator Boxer stated: "This important reform will help rein in the exorbitant taxpayer-funded salaries paid to top defense contractor employees.
Compensation is not addressed in the House version of the NDAA and so the issue will probably be resolved in a future Senate-House conference committee.
Not surprisingly, the Senate amendment is supported by Government unions and opposed by contractor groups.