1. Home
  2. |Insights
  3. |Compensation Caps Rule Finalized

Compensation Caps Rule Finalized

Client Alert | less than 1 min read | 11.02.16

On September 30, 2016, a more than two-year-old interim rule on the allowable cost limits of contractor and subcontractor employee compensation became final. Under this rule, which "applies to costs incurred on contracts award on or after June 24, 2014," compensation costs are capped at $487,000 (adjusted annually in accordance with the Employment Cost Index), though agencies may establish narrow exceptions for "scientists, engineers, or other specialists."

Insights

Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....