Contractor's provide for vacation and sick leave (for their employees), and the government RFQ states that only actual worked hours will be paid by the government. I have several questions and also seek other's opinions. 1) does anyone set up their contracts like this? 2) if so, what type of contract are they (T&M, labor hours, etc). 3) assuming this is under FAR 8 and bidders can't propose more than their awarded FSS pricing, how could they price their offer knowing that they need to give vacation and sick to their employees yet they won't get paid for any of it under the contract and they can't increase their hourly rates more than the awarded FSS rates? 4) seeking opinions on a FFP task order written that contractor must provide a specific number of hours per day and per week. However it goes on to say that if they fail to perform this, they can just deduct the hours not worked from the monthly invoice.