- Start Date:
- Monday, January 27, 2014
- Estimated Report Date:
- Monday, April 21, 2014
The OIG is currently conducting a review of the Postal Service's professional consulting contracts. Our objectives are to assess the evaluation of suppliers for professional consulting contracts and compare the suppliers’ executive compensation rates with federal government rates for comparable services.
The General Service Administration’s eLibrary contains contract award information. Included in this information are contractor rates. While the Postal Service does not use GSA for their contracting needs, the Postal Service could use information provided on the website to compare contractors' hourly charges to the federal government for comparable work, when available.
Executive compensation has been a hot topic in the federal government. Previously, the allowability of the compensation costs for the senior executives of Government contractors was capped by statute (10 U.S.C. 2324(e)(1)(P) and 41 U.S.C. 4304(a)(16) at a benchmark executive compensation amount. On December 4, 2013, the executive compensation cap was raised from $763,029 in 2011 to $952,308 for 2012. You can see the caps and how they have changed at: http://www.whitehouse.gov/omb/procurement_index_exec_comp/
As a part of National Defense Authorization Act for 2014, signed by President Obama on December 26, 2013, the allowable compensation cap for any civilian contractor employee under a government cost reimbursable contract was set at $625,000. The President also signed the Bipartisan Budget Act of 2013 on the same day, which reduced the allowable compensation cap for any civilian contractor employee under a government cost reimbursable contract to $487,000. Section 702 of the Bipartisan Budget Act is effective for all contracts entered 180 days after the enactment of the Act.
•Should the Postal Service compare rates they receive during the bidding process with rates currently listed on GSA contractor schedules?
•Should the Postal Service limit contractor executive pay, similar to how the federal government does for their contracts?