fucidin ointment treatment for hidradenitis gupisone tablets albendazole suspension dosage for children ropinirole hcl 0.5mg tamsulosin online cialis france alli availability in canada sinequanone hong kong stores asia minocin without perscription malarone tesco westhroid vs armour luvox medication information biaxin antibiotic for sinus infection amantadina para parkinson symptoms ebillme later viagra viagra for women in hindi viagra vendors vermox side effects doctor amerimedrx modells sporting paxil side effects paxil withdrawal lidocaine viscous 2 topical buy clomid paypal buy amitryptiline 10g stanozolol dosage for horses mexico prednisone diazepam valium 2 mg side effects cialis 5mg australia risperdal consta injection dosage viagra walmart price letrozole for fertility side effects viagra online kaufen erfahrung buy viagra master card clavamox dosage for cats phgh rx where to buy rapidtabs pills and potions make viagra work better levitra bestellen ohne rezept ditropan side effects doctor fucidin ointment price philippines betamethasone ointment 0 05 purchase suhagra cheap content validity index famvir dosage famciclovir natural eshop cialis danmark kemadrin 5mg online pharmacies without scripts procalisx ingredients in beer buy amytriplitine tablets generic viagra overnight delivery buy accutane no prescription canada cialis generic tadalafil strongest viagra available tab viagra 100mg clonidine for opiate withdrawal protocol lamotrigine 25mg reviews voltaren 75mg ec tadacip20 canada digoxin therapeutic level arrhythmia buy clomid online with echeck name brand viagra canada novolog 70/30 dosing buy domperidone uk where can i buy praziquantel for dogs tapeworms paypal cialis lanoxin toxicity symptoms midamor amiloride medication buy cialis 100mg online 468 metallica nothing else matters lyrics youtube tiotropium vs spirivatizanidine zyrtec coupons printable 2014 esquina carlos gardel tango plavix uk pfizer animal health south africa tetrocycline overnight highest rated rx store viagra canada prescritions plus gabapentin adderall high levitra 100mg guaranteed lowest price finasteride dosage prostate erexin capsules bottle buy std antibiotics online canada canadain rx buy viagra cheap differin reviews citrate synthase deficiency toradol 10mg po maxaman ingredients in splenda fucidin ointment antibiotic doxycycline hyclate side effects medication pain meds uk drug broker kamagra prescription viagra in pakistan lahore viagra kaufen vasotec medication ingredients cholesterol diet food list proventil coupon freeprovera cena cialis c20 w aptece seroxat antidepressant dosage tryptizol drug interactions metformin hydrochloride tablets 500 mg bupropion weight loss dosage bleaching dalacin cream cholesterol ratio 2.8 benazepril hcl medication drugs imitrex sumatriptan succinate coupons vigrx plus side effects buy clonidine hydrochloride thyroxine medication side effects atarax 25mg medication sleep condyline podophyllotoxin extraction pfizer viagra buy norvasc 10mg is it legal to buy prednisone on line code red seven purchasing antidepressants online xl pharmacy provigil side effects medication dicyclomine hydrochloride capsules doxycycline 100mg for sale purchase cognitive enhancing drugs bactroban nasal over the counter ativan generic strattera usa overnight order augmentin buy celebrex uk dyazide side effects hydrochlorothiazide pergotime 50mg prednisone information about imitrex for migraines prednisolone 5 mg uk cenveo message board cvo music feature audio clotrimazole troche absolute cheapest viagra pharmacie en ligne du canada cialis topmed shop24 how can i buy cialis online clomid for sale buy kefelx online diflucan on amazon lavestra tablettalk cipa online pharmacy medomycin antibiotics for ear omnicef side effects in babies levitra pro pas cher phone number for cialis mircette generic brands buy viagra vs cialis vs levitra purchase cialis 5mg is alli back in stock viprogra plus size floxin drops for canine ear infections how much does proventil inhaler cost vegera sildenafil 50mg domperidone canada drugs equivalent au viagra sans ordonnance nolvadex side effects for men stanozolol side effects for men retin a cream no script abilify weight gain children celebrex 200 mg online pharmacy orderpharma scam report cost of levitra vs viagra prometrium progesterone 100mg capsule macrobid 100mg capsule dosage viagra alternative at walmart building generic tadalafil cialis soft tab india buying viagra betneval lotion source synthyroid without a prescription over counter anxiety pill doxitab 100 mg tramadol aggrenox 25 200 generic list of canada rx claritin reditabs 24 hour airol cream extenze male enhancement pills cozaar 50 mg dose danazol in endometriosis how to order nympho max drugs hydroxyzine pamoate vistaril side effects via herbal viagra e bay malegra 100 sunrise palm let me watch this channel meloxicam 7 5 mg vs lortab benadryl ingredients side effects medrol side effects anxiety aciphex 20 mg over the counter order prednisolone online predisolone 5mg tab how does cialis work printable maxalt coupons accutane side effects statistics eu pharmacy online free combivent respimat coupon baclofen 10 mg tabletsbaclofenebactrim viagra has stop working generic cealis with no script propecia minoxidil inhalers for asthma buy mexico lagatrim forte albendazole shelflife irbesartan 300 mg picture stanozolol tablets usage walmart alli 60 mg redustat orlistat priligy fda approval digoxin toxicity symptoms in children fempro software update cheap antibiotics cipro furosemide 20 mg tablets side effects cheap duloxetine without a rx where to find domperidone 2013 usa orderpharma accutane zyvoxid pretty cheap bupropion xl no prescription ritalin online uk no prescription metronidazole flagyl and pregnancy clozapine dosage forms vitamix recipes buy clomid tijuana non prescription synthroid best diet pills canada buy meds on line mobicox 7 5mg ambien microcidal 500mg ceftin 500mg sinusitis canadian pharmacy online 24h sildenafil 100 mg paypal provera and clomid and metformin what is zestoretic 20 12.5 mg buy 1 mg propecia slc desogen birth control pill reviews rimadyl for dogs overdose adipex p 37.5mg pills bupropion hcl xl 150 side effects escitalopram oxalate 10mg side effects provigil weight loss reviews is pharmacy rx one legit diclofenaco sodico dosis rite aid pharmacy cialis price lumigan 0.01 vs 0.03 viagra bestellen per rechnung valtrex caplets alli diet pills availability mailorder viagra ausralia super cialis order therapy appointment therapist log in vardenafil hcl 20mg drug side effects permethrin canadian pharmacy suhagra 50 advantages of computer bulteran de 100 mg no rx pharmacy online in canada bayer brand name levitra cialis en pharmacie schott suprax lantern cialis once a day can i take 4 pills tetracycline uk pharmacy zolpidem 10mg photo benoquin pills viagra without prescription tri cyclen order medrol pack best place to purchase viagra online mometasone furoate ointment usp 0.1 use for lamictal side effects lamotrigine relafen 500 mg tablets ll jefe grande clomia online that takes echeck medrol dose pack instructions confidex reviews for fifty triamterene hctz 75 50 meprate dosage for infantmeridiamestinon bactroban nasal eszopiclone tab 2 mg carprofen 75 mg for dogs side effects india pharmacies prednisone midamor medication glyprin aspirin kemadrin procyclidine purchase ny indian viagra names provera medications haldol dosage elderly differin reviews for wrinkles advil and viagra diclobru tablets on sale where to buy tretinoin cream buying authentic cialis pain pills online without pres prometrium side effects medication no perscription azithromocin tablets adderall medication guide erectile dysfunction vitamin d kamatra gelish gel buy ascorbic acid india how to buy levitra in usa cefabiot suspension omifin clomifeno 50 mg omeprazole 40 mg capsule what is for mirtazapine dosage for dogs ritalin vs adderall for narcolepsy no presription viagra pharmacy reviews nizoral tablets for dogs cheao non generic viagra champix smoking pfizer best value of generic viagra furosemide 500mg without prescription accutane at a discounted rate xanax bars pictures condyline solutie prospect mometasone cream brand name how much does viagra cost at cvs buy prednisone for poison ivy doxycycline hyclate elomet cream for pregnancy ordering tinidazole podofilox 0.5 solution or gel for sale claravis accutane coupons pharmacy without dr prescriptions baclofen antidote phexin 75070 supradol ketorolac english to french fosamax 70mg price sertraline 50mg tablets reviews buy accutane online canada pharmacy celebrex 200 mg capsules means clobex spray buying doxycycline from canada cialis to buy in perth fluconazole no script lozol medication thailand pharmacies buy mylan doxycycline warfarin and alcohol interactions premarin online no prescription otc bacterial shampoo trazodone side effects in dogs where can i buy misoprostol over the counter esomeprazole strontium price rocket raccoon wallpaper canada no script synthroid where to buy albendazole for dogs vistaril 25mg information for pain enalapril maleate medication for dogs ritalin and alcohol effects sublingual vitamin b12 methylcobalamin progesterone levels in early pregnancy ivf fungsi flagyl how can i find viagra cheap healthy man prescriptions omaggio hadley condyline pdf download what pharmacy in the uk sells motilium should i take levitra everyday viagra barata septra suspension dosing cipla tadacip 20 mg secure ordering online cialis metallica tour 2015 review escitalopram user reviews sale priligy online viagra online canadian pharmacy scam rumafen diclofenac sodium 50mg tablets buy azithromycin online australia clindamycin hcl 300 mg uses clotrimazole troches list of reputable online pharmacies cyrux misoprostol pills cyproheptadine no rx fluconazole tablet over the counter levitra 10 acquista on line valium withdrawal schedule viagra online best price blue force online viagra stores that work voltaren oyunu minocycline hydrochloride for dogs side effects buy orlistat online meds online topamax side effects topamax weight loss azulfidine side effects in dogs cheapviagrausa coupon generic nexium without prescription epogen injection dose calculator female viagra uk buy cholesterol lowering diet menu bio metronidazole zyvoxid pretzels healthman south africahealthymalehealthyman tretinoin cream 0.1 uses buy cefixime 400 mg uk amitriptyline purchase online lisinopril side effects lisinopril recall buy cheap kamagra jelly rythmol medication drug interactions levothyroxine buy online canada maxal amphetamine withdrawal symptoms treatment septrin dosage in children flagyl otc omnicef side effects in toddlers buy roaccutane online uk where to buy clomid online safely finasteride side effects reductil diet pills usa polarmeds complaints against companies mobicox tabletas enalapril maleate side effects order medicine with express mail mobicool mini fridge f0510b2705 toprol side effects depression levitra side effects cialis vs levitra ranigast lekarze roxifen gel manicure reglan dosage for rabbits best site to buy proventil walgreens employee website company walgreens employee login pilexil shampoo zentel prospect pret viamedic coupon code viagra samples buy orlistat 272 can i trust canadian viagra online famvir dosage dose generic cialis by mail advantage federal credit union locations maxaman caye caulker belize accommodations prednisone withdrawal symptoms anxiety vantin antibiotic for pneumonia fluoxetine online without prescription cialis over the counter canada feldene 20 mg side effects brand viagra no prescription lasix for dogs without prescription navidoxine drug interactions hydrochlorothiazide pills extenze reviews enlargement pills vasotec side effects etodolac 300 mg capsule side effects claritin side effects in dogs donepezil side effects 23mg buy zocor without prescription amoxicillin 500mg famvir 500mg dosage can you buy furosemide over the counter proventil inhaler cost vgr 100 facts about chuck asthma inhaler pharmacy availibility of viagra in pakistan rocket launch today wallops island ritalin side effects adults clavupen gutish canadian pharmaceuticals lialda medication for colitis ic valacyclovir hcl retirides reviews 50 potassium rich foods list of foods high in potassium irbesartan hydrochlorothiazide generic name canadian cialis pharmacy how order periactin pills provigil vs nuvigil price mexico colchicine glipizide xl 5mg feldene canadian yasminelle ulotka polo effexor xr 150mg without prescription jamaican peritol weight gain abortion pill online pharmacy uk androgel 1 62 street value coupon codes for nympo max pills prozac withdrawal symptoms in children anafranil 10 mg valium zyban side effects depression diclofenac online overnight shipping anxiety in children symptoms exelon patch cost donepezil classification where i can buy viagra online relafen nabumetone medication 500 tofranil medication and migraines free aggrenox coupons altace 2.5mg capsules etodolac 400 mg dose trimetabol ingredients in beer pharmacies online 3 day delivery betnesol n eye drops secure viagra cialis 20mg rezeptfrei vistaril medication propranolol hydrochloride side effects diazepam dosage for cats methocarbamol no prescription dilantin toxicity symptoms patients strattera drug glucovance 5/500mg tablets zenegra cheapest glyprin 100mg viagra mifepristone and misoprostol sunsuria avenue badminton court measurement how do u get presribed viagra roxifen capsules vs tablets fentanyl patch equivalent oxycodone
Consulting Core Services
On-Site Training

GCA can orient the course to any  number of topics but typical ones have included:

  • Basics of the Federal Acquisition Regulation
  • FAR Cost Principles
  • Cost Accounting Standards
  • Working with DCAA
Sample Download

Click to download and view a sample of a recent issue of the GCA REPORT.
Click to download and view  a sample of a recent issue of the GCA DIGEST.


Contact Us

Don't hesitate to contact us if you have any questions, comments, suggestions, or problems with registration.

Phone: 1-925-362-0712

Fax: 925-362-0806

Email GCA

Subscriber Login

Executive Compensation

(Editor’s Note. Differing interpretations of regulations covering personal compensation cause considerable grief for our clients. Budget cuts at DCAA offices has eliminated highly trained compensation teams, leaving determination of allowability to often-untrained auditors at the local level. In this second part of a three-part article on executive compensation, we will discuss the criteria for allowability and discuss specific elements of compensation.

Our series of articles are based on an excellent article by Karen Manos of the law firm of Hourey & Simon in the December 1997issue of Briefing Papers. Because we want to discuss use of salary surveys in greater depth, we have expanded our original two part series on executive compensation to three. The first article discussed government changing rules on executive compensation caps while the third article will explore how to determine what are reasonable levels of compensation with particular emphasis on what auditors consider appropriate use of salary survey. Though our newsletters are oriented to cost, price and contracting issues, we believe this series will be quite helpful for human resources personnel. We will be happy to provide the previous issue of the DIGEST to all new subscribers at no charge.)

Employee compensation is the single largest element of cost by many contractors. The government is, not surprisingly, quite interested. In addition to the more recent caps on executive compensation, the FAR cost principle 31.205-6, "compensation for personnel services" holds the record for most revisions (over 20) in the last 15 years.

The cost principle defines "compensation broadly:

Compensation for personal services includes "all remuneration paid currently or accrued, in whatever form and whether paid immediately or deferred for services rendered by employees to the contractor during the period of contract performance". It includes, but is not limited to salaries, wages, directors and executive committed members’ fees, bonuses, stock securities, insurance, fringe benefits, contributions to pension, annuity, and management incentive plans, off-site pay, severance and differential pay.

Criteria for Allowability

Five general criteria must be met for costs of personal compensation to be allowable.

With limited exception we will discuss later, compensation must be for work performed in the current year and may not be for retroactive payment for work performed in prior years.

Compensation must be paid in accordance with "an established compensation plan or practice followed so consistently as to imply, in effect, an agreement to make payment". Does this mean it needs to be in writing? Boards of Appeals have ruled that a compensation policy can be held to exist without being in writing when costs were incurred for the "first time" (Boeing, ASBCA 46274). On the other hand, a Board disallowed bonus payments when a survey of employees indicated the major of employees said they did not believe a promise or agreement existed. It certainly is easier to prove an establihsed policy or practice if the compensation program is set forth in writing and communicated to employees.

There is no presumption of allowability where the contractor has failed to notify the contracting officer of a "major revision" to its compensation plan or practices. Conversely, there will be such a presumption if the contractor notifies the ACO and gives them the opportunity to review the change.

Costs unallowable under other cost principles are not considered allowable simply because they are called "compensation". For example, costs of membership in social, dining or country clubs made unallowable under "Entertainment Costs" are still unallowable even if reported as income to employees.

Compensation must be "reasonable" for the work performed. The cost principle has undergone considerable changes in clarifying what is "reasonable". It started out with the prudent person principle – not to exceed what would be incurred by a prudent person in the conduct of competitive business. This principle has been supplemented by more specific guidance that we will discuss next issue.

Specific Elements

Bonuses and Incentive Compensation

Use of bonuses has proliferated in recent years. The principle identifies as allowable bonuses incentive compensation for managers, cash bonuses, suggestion awards, safety awar4ds and incentive compensation based on production, cost reduction or efficient performance provided such costs are accrued under an agreement before the services are rendered. Employees need not have had the right to receive the bonus provided there was a reasonable expectation the bonus would be paid.

Other criteria includes (1) if payment is deferred, criteria of deferred compensation must be met (discussed later) (2) compensation in lieu of salary for partners and sole proprietors cannot be a distribution of profit. (Editor’s Note. This is a major area of dispute we encounter in our consulting engagements. Compensation for owners in excess of reported W-2 earnings are commonly questioned by auditors on the grounds they are a "distribution of profit") and (3) for closely-held corporations, the compensation must be tax deductible.

Corporate Securities

Executive compensation frequently includes payments in the form of contractor’s corporate securities such as stock options and stock appreciation rights. The government has imposed additional restrictions on allowability of this form of compensation:

Securities must be valued at their fair market value on the "measurement date" (the first date the number of shares awarded is known).

Accruals for the cost of the securities before issuance to employees must take into account the possibility some employees’ interests in the accrual will be forfeited.

For stock options, allowable costs are limited to the difference between the option price, if lower and the market price of the stock on the first date both number of shares and option price are known. Since option prices are generally equal or greater than the market price, stock options are generally unallowable.

Compensation calculated or valued on the basis of changes in the price of the securities (e.g. stock appreciation rights, phantom stock plans and junior stock conversions) are unallowable because it is considered not compensation based on actual work performed.

Compensation in the form of dividend payments are unallowable because they are considered "distribution of profits").

For employee stock ownership plans (ESOPs) (a) contributions cannot exceed 15% of participant’s salary and wages (25% when a money purchase plan is included) (b) contribution rates higher than earlier ones must be approved by the CO (c) funding must be made by the time for filling the contractor’s federal income tax (d) payment in the form of corporate securities must be valued at the fair market value of the stock on the date title is effectively transferred.


To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .


GCA Subscription
  • New Developments-Rule Changes, New Guidelines, Court Decisions
  • Feature article for Small/New Contractors
  • Practical Q&A Sections

Download & View Sample

  • Experts' Discussion of "HOT" Contracting Issues
  • Analyzing a Cost Principle or Cost Accounting Standard
  • Pricing Strategies
  • Case Studies on Challenges to Government Findings

Download & View Sample

  • Free use of our "Ask the Experts" panel where subscribers can submit questions to or chat with our network of eminent consultants and attorneys.
  • Electronic access to all prior newsletters through 2000. We provide state-of-the-art word search Word and linked electronic index to all articles.
  • Mailed hard copies and electronic versions will provide timely access to all newsletters.

 Learn More