On September 30, 2016, the FAR Council adopted as final an interim rule, with certain changes, amending the FAR to revise the allowable cost limit relative to the compensation of contractor and subcontractor employees. Specifically, the final rule amends and reorganizes FAR §31.205-6(p) (Compensation for personal services). The final rule implements Section 702 of the Bipartisan Budget Act of 2013, which sets the initial limitation on allowable contractor and subcontractor employee compensation cost at $487,000 per year, to be adjusted annually to reflect the change in the Employment Cost Index for all workers, as calculated by the Bureau of Labor Statistics. The final rule also implements a narrowly targeted exception to the allowable cost limit for scientists, engineers and other specialists if the agency determines that an exception is needed to ensure it has access to needed skills and capabilities. The final rule became effective on September 30, 2016. (81 Fed. Reg. 67,778, 09/30/16)