Neil, I have not accepted the rate as I do not believe that it would be beneficial to accept such a low rate at this moment with no way to afford any fringe and G&A expenses since I can't burden (at the very least) the prime's rate. Of course, I want to do what's best for my company and get a few sub agreements, but let's face it, it's a business and I would like to make a small profit, just like the prime does. The difference between the burdened rate and the NTE is $28 almost all of that is to cover fringe benefits, as I do not really have OH costs. Also, I am confident that my rate does not exceed what the government already funds for the labor category. If it does (and it wouldn't be by much), I am willing to negotiate, but the prime is not interested. Anyway, I don't see any solution for me, I just wanted to know if what they are doing is standard. As a PM I never set a rate for the subs my employer primed for. We always asked and worked with them if they exceeded the mark.