ACQUISITION AND TECHNOLOGY
DP(DAR) In reply refer to DFARS Case: 96-D332 D. L. 96-020 MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT, ASN(RD&A)/ABM DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY SUBJECT: Restructuring Costs/Bonuses We have amended Part 231 of the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 8095 of the FY 1997 Defense Appropriations Act (Pub. L. 104-208). Section 8095 prohibits the use of FY 1997 appropriated funds to reimburse a contractor for costs paid by the contractor to an employee when such costs are for a bonus or other payment in excess of the normal salary paid by the contractor to the employee, and such bonus is part of restructuring costs associated with a business combination. This prohibition does not apply to severance or early retirement incentive payments. This interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular. /s/ Eleanor R. Spector Director, Defense Procurement
cc: DSMC, Ft. Belvoir
SUBPART 231.2 -- CONTRACTS WITH COMMERCIAL ORGANIZATIONS
231.205-6 Compensation for personal services.
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