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CPFF LOE Subcontractors


vic03

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Question- Is a prime contractor able to use subcontractor hours to count against the total LOE required by a CPFF contract? If a contract requires 10,000 labor hours and the prime has delivered 8,000 and subcontractors have delivered 2,000, is the total LOE met and contractor is entitled to the full fixed fee?

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Guest Vern Edwards

vic03:

There is no fixed answer to your question. The answer depends entirely on the terms of your contract -- what it says.

If the language of your contract is not clear and unambiguous about what hours count toward the LOE, of if it does not address that issue, then you must work it out with the contracting officer and the agency's technical office.

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