Tracking LOE in FFP subcontracts in Contract Administration Posted Tuesday at 03:50 PM · Report reply 47 minutes ago, Vern Edwards said: I'm not sure it makes a difference. Remember, the contract is cost-reimbursement. The contractor invoices on the basis of allowable cost incurred to deliver the level of effort. not by the hour at a fixed rate. There could be more to the cost of the level of effort than direct labor hours. If the subcontract cost is allowable, then the contractor invoices for it and the government reimburses up to the estimated cost or the total funds allotted. All fair points. And with that, I'm now more confused at what the OP is concerned with "losing." Though the chances of an overzealous COR are high, at which point it's hard to apply the rules when the "rules" are all in one person's head.