In developing FAR-allowable overhead rates, A/E firms should determine the reasonableness for executive compensation in accordance with FAR 31.205-6.
The A/E firm should have policies in place that provide descriptions as to how the compensation levels are established, the approval of such compensation, and a clear outline of the eligibility criteria for:
(1) base salary
(3) deferred compensation
(4) other compensation (i.e. vehicle allowances)
Download the National Compensation Matrix HERE