National Compensation Matrix - New Developments

The following excerpt is from the AASHTO Internal/External Audit Subcommittee website:

As recommended in the 2010 Audit Guide, the NCM was developed under the direction and guidance of the Federal Highway Administration. Chapter 7 says that state DOTs may use the NCM as a tool for determining reasonable levels of compensation. With the 2010 version of the Guide previously receiving AASHTO member approval via formal vote, and with the NCM concept being a part of that approval, a separate vote is not deemed necessary for the NCM itself. However, consideration of suggestions for changes to the NCM itself will be deferred to future modification efforts. Having developed the NCM in such a collaborative and communicative manner, including the regular sharing of ongoing progress with the larger Subcommittee membership, carefully following relevant official guidance, engaging an independent compensation expert, and needing the tool for ourselves and our partners as soon as possible, we feel confident that it is a sound, defendable tool for its intended purpose.

The development of the NCM was followed closely by the publication of the 2012 edition of the Audit Guide, including related changes to Chapter 7. With this revision, the issuance of the NCM was identified as being an acceptable tool for use in determining reasonable levels of executive compensation for engineering consultants in compliance with the criteria established in Section 7.5B.  

The following links direct you to the 2012 NCM and  two related Armed Services Board of Contract Appeals (ASBCA) decisions.

Link to the 2012 NCM

Link to the Taylor Case  /files/60179/Decision%2Epdf

Link to the Metron Case  /files/60179/20120605Metron%2DASBCADecision%2Epdf