DATE:           June 7, 2018

TO:                HCAs/Procurement Directors/Contracting Officers

FROM:          Director
                      Contract and Financial Assistance Policy Division
                      Office of Policy
                      Office of Acquisition Management

SUBJECT:     Cancellation of Acquisition Letter (AL) 2013-04, Contractor Executive Compensation

SUMMARY: In support of Departmental reform initiatives to reduce burden while maintaining accountability, the authority to approve the top contractor official’s salary was transferred from the Senior Procurement Executive (SPE) to the Head of Contracting Activity in the recent revision of DOE Order 350.1, Contractor Human Resource Management Programs (DOE O 350.1, Chg. 6). Consistent with this transfer of approval authority, AL 2013-04 has been cancelled since SPE approval of the top contractor salary is no longer required. Programs may establish their own approval levels in the review of salary actions, as deemed necessary, including determining whether or not to continue to use DOE F. 3220.5, "Application for Contractor Compensation Approval".

The cancellation of AL 2013-04 does not eliminate the need to comply with the Federal Acquisition Regulation, Department of Energy Acquisition Regulation, and Office of Federal Procurement Policy CAP requirements referenced in AL 2013-04.

Questions concerning this policy flash should be directed to Robert M. Myers, Director, Contractor Human Resources Policy Division (MA-612) at or (202) 287-1584.