b201a113_lowability_of_Costs_Activities__Explanation_of_Allowable_Costs
[Items] Salaries and Wages / Unallowable Costs
(1) Costs which are unallowable under other sections of these principles must not be allowable under this section solely on the basis that they constitute personnel compensation. (2) The allowable compensation for certain employees is subject to a ceiling in accordance with statute. For the amount of the ceiling for cost reimbursement contracts, the covered compensation subject to the ceiling, the covered employees, and other relevant provisions, see 10 U.S.C. 2324(e)(1)(P), and 41 U.S.C. 1127 and 4304(a)(16). For other types of Federal awards, other statutory ceilings may apply.
7.9 Allowability of Costs/Activities
Explanation of Allowable Costs