There is a DoD prime contract that is categorized as FFP LOE. However, they are buying specific Lab Cats, at specific rates, for specific hours (I might add the value of the prime K is $5M). The invoicing is monthly with lab cats/hours/rates being itemized in the invoice. For whatever reason, this office is not permitted to enter into T&M contracts. By calling it FFP LOE, I guess they are skirting this prohibition. Anyway, the prime has flowed down all of the T&C's to my company in a subcontract with all the same proposal requirements/invoicing instructions.
My question is, if DCAA/DCMA were to audit my companies contracts, is this going to cause an issue?