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Firm-fixed-price, level-of-effort term contracts

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I am attempting to validate as to whether or not a Prime, if awarded a FFP contract, may issue a FFP-LOE SubK knowing the work that is to be performed by the subcontractor will exceed the $150k limitation per FAR 16.207.3 (Limitations of firm-fixed-price, level-of-effort term contracts)?

Thank you in advance for your time.

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The limitation in FAR does not apply to contractors and to the award of subcontracts. It limits the Government's use of FFP-LOE contracts, not a contractor's use.

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