The Commission’s Uniform Managed Care Manual incorporates a federal acquisition regulation that includes a limitation on executive compensation. However, that federal acquisition regulation
(Title 48, Code of Federal Regulations, Part 31) related to the executive compensation limitation is applicable only to cost-based contracts. In its cost principles, which are part of its
contract with Superior, the Commission explicitly defined its contract with Superior as a fixed-price contract. As a result, the Commission’s limitation for reporting the cost of executive
compensation may not be enforceable.
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