Pub. L. 94-502, tit. V, sec. 503

Sec 503. Section 1774 of title 38, United States Code, is amended— (1) by adding at the end of subsection (a) thereof the following new sentence: “The Administrator may also reimburse such agencies for work performed by their subcontractors where such work has a direct relationship to the requirements of chapter 32, 34, 35, or 36 of this title, and has had the prior approval of the Administrator.”; and (2) by amending subsection (b) to read as follows: “(b) The allowance for administrative expenses incurred pursuant to subsection (a) of this section shall be paid in accordance with the following formula: “Total salary cost reimbursable under this section Allowable for administrative expense $5,000 or less $600. Over $5,000 but not exceeding $10,000 $1,080. Over $10,000 but not exceeding $35,000 $1,080 for the first $10,000 plus $1,000 for each additional $5,000 or fraction thereof. Over $35,000 but not exceeding $40,000 $6,535. Over $40,000 but not exceeding $75,000 $6,535 for the first $40,000 plus $865 for each additional $5,000 or fraction thereof. Over $75,000 but not exceeding $80,000 $12,960. Over $80,000 $12,960 for the first $40,000 plus $755 for each additional $5,000 or fraction thereof.