Office of Federal Procurement Policy Compensation Limit Updated

The Office of Federal Procurement Policy recently published the compensation cap amount for the Statutory Fiscal Year 2024. Section 6-414.7 in the Defense Contract Audit Agency (DCAA) Contract Audit Manual was updated to include the compensation cap amount for 2024. 

For contracts awarded after June 24, 2014, the updated allowable compensation limit for costs incurred in 2024 is $646,000 for all employees of government contractors, up from $619,000 for 2023. The escalation is based on the percentage change in the Employment Cost Index for all civilian workers reported by the Bureau of Labor Statistics for the twelve months ending in September. 

Find the memorandum here: DCAA Audit Alert