Compensation Limitation Under Covered Contracts

Page Updated: May 20th, 2015

2 CFR §200.430(d)(2) limits the amount of compensation under covered contracts to a ceiling set by statute, currently Public Law 113-67. See statutory language related to §200.430(d)(2).

§200.430(d)(2)

"The allowable compensation for certain employees is subject to a ceiling in accordance with statute. For the amount of the ceiling for cost-reimbursement contracts, the covered compensation subject to the ceiling, the covered employees, and other relevant provisions, see 10 U.S.C. 2324(e)(1)(P), and 41 U.S.C. 1127 and 4304(a)(16). For other types of Federal awards, other statutory ceilings may apply."

Twice annually, Research and Sponsored Programs will monitor compensation (as defined in 10 U.S.C. 2324(l) and 41 U.S.C. 4301) under covered cost-reimbursement contracts to ensure that compensation remains within the statutory limitations, working with Deans' and Directors' offices as necessary.

This section of the Uniform Guidance indicates that "for other types of Federal awards, other statutory ceilings may apply." An example is the NIH Salary Cap, which is monitored through a separate process.