RGCI - DCAA Publishes the 2024 Compensation Cap

Our friendly DCAA auditors have taken up the government requirement to calculate and publish annually the new compensation cap as provided for in Section 702 of the Bipartisan Budget Act of 2013 (BBA; Pub. L. 113-67), dated December 26, 2013. The 2024 cap amount is $646,000. Below, we have provided the compensation caps going back to 2016.

It is important to understand that simply ensuring the compensation cap is not exceeded is only the start of your journey through the wonderful world of supporting your compensation to government auditors.

Compensation System

DCAA audits of your accounting system, incurred cost, and price proposals all have an expectation that the contractor be able to walk the auditor through its compensation system. As we discussed in our prior article, “Why are Policies and Procedures so Important in Government Contracting?” DCAA believes any system without adequate policies and procedures is an inadequate system. Please refer to the additional articles below outlining the importance of this area.

Prior Year Caps

DCAA Publishes the 2024 Compensation Cap

Redstone GCI assists contractors throughout the U.S. and internationally with understanding the Government’s requirements and implementing an adequate compensation system, including the necessary policies and procedures. We would be happy to be part of your team.

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Written by John Shire and Sheri Buchanan

John Shire and Sheri Buchanan

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Employee & Contractor Compensation, Incurred Cost Proposal Submission (ICP/ICE), DCAA Audit Support, Government Regulations, Federal Acquisition Regulation (FAR)