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DCAA Executive Compensation Calculation Rejected (Again)

Jun.21.2012

In Metron, Inc., decided on June 4 by the ASBCA, DCAA's flawed methodology for assessing the reasonableness of executive compensation paid by government contractors was rejected for the second time this year by the Board (see bullet point on J.F. Taylor, Inc.). The board found that Metron appropriately based its compensation decisions on data in a single survey that was most relevant to Metron's business, found that other survey data that DCAA relied on was not relevant to Metron's compensation costs, and rejected all of the "adjustments" that DCAA had made to the relevant survey data because the adjustments were based on speculation and assumptions that were not supported by factual evidence.


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For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Terry L. Albertson
Senior Counsel – Washington, D.C.
Phone: +1 202.624.2635
Email: talbertson@crowell.com