LOE at Funding Level Method

To calculate the fee amount using the level of effort (LOE) at funding level method, the system first divides the total invoice hours for the lines that you set up as cross-references by the hours specified in the LOE Target Hrs field on the funding level contract. The system then multiplies this quotient by one of the limit amounts on the funding level contract, which is determined by the combination of the values in these two fields:

• Billing Limit field on the funding level contract

  If the value in this field is either Awarded By Line or Awarded By Total, the system uses the awarded limit amounts for the funding level contract. If the value is Funded By Line or Funded By Total, the system uses the funded limit amounts.

  Note: If the Billing Limit field is set to No Limit for the funding level contract, you cannot use this fee calculation method.

• BL (billing line type) field on the fee billing line.

  If the billing line type is A, the system uses either the awarded or funded award fee amounts, depending on the value in the Billing Limit field for the funding level contract. If the billing line type is F or 4, the system uses either the awarded or funded fee amounts, depending on the value in the Billing Limit field for the funding level contract.

This table describes how the system determines which amount to use in the fee calculation:

Billing Limit	Billing Line Type	Limit Amount Used for Fee Calculation
Awarded By Line or Awarded By Total	A	Awarded award fee amount
Awarded By Line or Awarded By Total	F or 4	Awarded fee amount
Funded By Line or Funded By Total	A	Funded award fee amount
Funded By Line or Funded By Total	For 4	Funded fee amount

Note: If the LOE Target Hrs field on the funding level contract is cleared, you cannot select this method for fee calculation for the funding level contract.

If you do not select the Cumulative check box for the fee billing line, the Invoice Generation program (R52121) program uses these steps to calculate the fee amount:

1. Accumulates invoice hours from all records in the Invoice Summary table (F4822) that are associated with the lines that are cross-referenced to the fee line for the current invoice.

2. Divides the total hours by the LOE target hours specified on the funding level contract.

3. Multiplies this amount by the appropriate contract limit amount.

If you select the Cumulative check box for the fee billing line, the R52121 program uses these steps to calculate the fee amount:

1. Accumulates invoice or revenue hours from all records in the Invoice Summary table (F4822) that are associated with the lines that are cross-referenced to the fee line for the current invoice.

2. Adds hours for the cross-reference lines from previous invoices to the current hours.

3. Divides the total hours by the LOE target hours specified on the funding level contract.

4. Multiplies the quotient calculated in Step 3 by the appropriate contract limit amount.

5. Subtracts fee amounts from previous invoices.

If the accumulated hours are greater than the LOE target hours specified on the funding level contract, the system uses the LOE target hours as a limit, and uses that amount in the calculation. For example, if the accumulated hours are 300 and the LOE target hours are 250, then the system uses 250 when calculating the fee.