EXTENSION OF APPLICABILITY OF THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF ALLOWABLE COST LIMITATIONS UNDER DEFENSE CONTRACTS.

SEC. 803. EXTENSION OF APPLICABILITY OF THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF ALLOWABLE COST LIMITATIONS UNDER DEFENSE CONTRACTS. (a) Certain Compensation Not Allowable Under Defense Contracts.—Subsection (e)(1)(P) of section 2324 of title 10, United States Code, is amended— (1) by striking “senior executives of contractors” and inserting “any contractor employee”; and (2) by adding before the period at the end the following: “, except that the Secretary of Defense may establish one or more narrowly targeted exceptions for scientists and engineers upon a determination that such exceptions are needed to ensure that the Department of Defense has continued access to needed skills and capabilities”. (b) Conforming Amendment.—Subsection (l) of such section is amended by striking paragraph (5). (c) [10 U.S.C. 2324 note] Effective Date.—The amendments made by this section shall apply with respect to costs of compensation incurred after January 1, 2012, under contracts entered into on or after December 31, 2011.