In order to maintain compliance with Federal Acquisition Regulations (FAR), the Pennsylvania Department of Transportation (PennDOT) has adopted a methodology for assessing the reasonableness of executive compensation that requires use of ERI’s Executive Compensation Assessor. The methodology is similar to that used by the Defense Contract Audit Agency in its efforts to ensure compliance with FAR. The PennDOT methodology relies on both ERI’s compensation data and its unique job descriptions. ERI expects other government agencies and privates entities to follow the lead of PennDOT and the DCAA in requiring the use of ERI data in order to maintain compliance with FAR.

PennDOT Methodology