Skeptics abound on White House proposal to raise contractor salary cap

The Office of Federal Procurement Policy raised the cap on executive pay for contractors by $190,000 for fiscal 2012 Wednesday, which led to an outcry from both federal employee unions and associations representing contractors, Federal News Radio reports.

The change brings the new benchmark for allowable costs to $952,308, up from $763,029 in 2011. While The American Federation of Government Employees called the increase “an outrage,” the Professional Services Council that represents federal contractors called the timing of the announcement “curious,” given that both the House and Senate Defense Authorization bills have provisions to change how OFPP would calculate the cap in the future.

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