US Code

Public Law 119-73 (01/23/2026)

41 U.S.C. § 1127

Determining benchmark compensation amount

(a)

Definitions .—

In this section:
(1)

Benchmark compensation amount .—

The term “benchmark compensation amount”, for a fiscal year, is the median amount of the compensation provided for all senior executives of all benchmark corporations for the most recent year for which data is available at the time the determination under subsection (b) is made.
(2)

Benchmark corporation .—

The term “benchmark corporation”, with respect to a fiscal year, means a publicly-owned United States corporation that has annual sales in excess of $50,000,000 for the fiscal year.
(3)

Compensation .—

The term “compensation”, for a fiscal year, means the total amount of wages, salary, bonuses, and deferred compensation for the fiscal year, whether paid, earned, or otherwise accruing, as recorded in an employer’s cost accounting records for the fiscal year.
(4)

Fiscal year .—

The term “fiscal year” means a fiscal year a contractor establishes for accounting purposes.
(5)

Publicly-owned united states corporation .—

The term “publicly-owned United States corporation” means a corporation—
(A)
organized under the laws of a State of the United States, the District of Columbia, Puerto Rico, or a possession of the United States; and
(B)
whose voting stock is publicly traded.
(6)

Senior executives .—

The term “senior executives”, with respect to a contractor, means the 5 most highly compensated employees in management positions at each home office and each segment of the contractor.
(b)

Determining Benchmark Compensation Amount .—

section 4304(a)(16) of this titlesection 3744(a)(16) of title 10For purposes of and , the Administrator shall review commercially available surveys of executive compensation and, on the basis of the results of the review, determine a benchmark compensation amount to apply for each fiscal year. In making determinations under this subsection, the Administrator shall consult with the Director of the Defense Contract Audit Agency and other officials of executive agencies as the Administrator considers appropriate.

Pub. L. 111–350, § 3124 Stat. 3689Pub. L. 117–81, div. A, title XVII, § 1702(h)(1)135 Stat. 2158(, , ; , , .)

Repeal of Section

Pub. L. 113–67, div. A, title VII, § 702(b)(1)127 Stat. 1189, (c), , , repealed this section applicable only with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after .

Pub. L. 113–66, div. A, title VIII, § 811(c)(1)127 Stat. 806, (d), , , repealed this section applicable with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after .

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

1127(a)(1)

41:435(b).

Pub. L. 93–400, § 39, as added Pub. L. 105–85, title VIII, § 808(c)(1), Nov. 18, 1997, 111 Stat. 1837; Pub. L. 105–261, title VIII, § 804(c)(1), Oct. 17, 1998, 112 Stat. 2083.

1127(a)(2)

41:435(c)(3).

1127(a)(3)

41:435(c)(1).

1127(a)(4)

41:435(c)(5).

1127(a)(5)

41:435(c)(4).

1127(a)(6)

41:435(c)(2).

1127(b)

41:435(a).

Editorial Notes

Amendments

Pub. L. 117–812021—Subsec. (b). substituted “section 3744(a)(16)” for “section 2324(e)(1)(P)”.

Statutory Notes and Related Subsidiaries

Effective Date of Repeal

Pub. L. 113–67section 702(c) of Pub. L. 113–67section 4304 of this titleRepeal by applicable only with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after , see , set out as an Effective Date of 2013 Amendment note under .

Pub. L. 113–66section 811(d) of Pub. L. 113–66section 4304 of this titleRepeal by applicable with respect to costs of compensation incurred under contracts entered into on or after the date that is 180 days after , see , set out as an Effective Date of 2013 Amendment note under .

Exclusive Applicability of Provisions Limiting Allowability of Compensation for Certain Contractor Personnel

Pub. L. 105–85, div. A, title VIII, § 808(f)111 Stat. 1838

“Notwithstanding any other provision of law, no other limitation in law on the allowability of costs of compensation of senior executives under covered contracts shall apply to such costs of compensation incurred after .”
, , , provided that:

Definitions for Purposes of Section 808 of Pub. L. 105–85

Pub. L. 105–85, div. A, title VIII, § 808(g)111 Stat. 1838Pub. L. 105–261, div. A, title VIII, § 804(c)(2)112 Stat. 2083

“In this section [see Tables for classification]:
“(1)
l10 U.S.C. 3741l41 U.S.C. 256l41 U.S.C. 4301 The term ‘covered contract’ has the meaning given such term in section 2324() of title 10, United States Code [see ], and section 306() of the Federal Property and Administrative Services Act of 1949 ([former] ()) [see ].
“(2)
l10 U.S.C. 374110 U.S.C. 2324l41 U.S.C. 4301 The terms ‘compensation’ and ‘senior executives’ have the meanings given such terms in section 2324() of title 10, United States Code [see as to “compensation” and former ()(5) as to “senior executives”], and section 306(m) of the Federal Property and Administrative Services Act of 1949 [see ].”
, , , as amended by , , , provided that: