1. Advanced Contract Billing Implementation Guide
  2. LOE at Labor Category Method

LOE at Labor Category Method

To calculate the fee amount using the LOE at labor category method, the system accumulates invoice hours for lines cross-referenced to the fee billing line by labor category, similar to the labor category method of fee calculation. However, instead of using the fee rate type information for each labor category, the system uses the level of effort (LOE) hours for each labor category in conjunction with one of the contract limit amounts to calculate the fee amount. To determine which limit amount to use, the system uses a 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 value in the Billing Limit field is No Limit for the funding level contract, you cannot use the LOE at labor category 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

If you do not select the Cumulative check box for a fee billing line that uses the LOE at labor category method, the Invoice Generation program (R52121) uses these steps to calculate the fee amount:

  1. Accumulates hours by labor category in the Workfile Detail table (F4812) that are associated with the lines that are cross-referenced to the fee billing line.

  2. Retrieves both the LOE hours for each labor category that has accumulated hours and the total LOE hours for all of the labor categories for the contract. The system retrieves the hours from the LOE Hours field in the Contract Specific Labor Categories program (P52G20).

  3. Divides the LOE hours for the labor category by the total LOE hours for all labor categories for the contract.

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

  5. Multiplies the product from Step 4 by the quotient that is derived by dividing the accumulated hours from the labor category by the LOE hours required for the labor category. The system performs this step for each labor category with accumulated hours.

  6. Adds all products from Step 5 to calculate the total fee amount.

If you select the Cumulative check box for a fee billing line that uses the LOE at labor category method, the R52121 program uses these steps to calculate the fee amount:

  1. Accumulates hours by labor category in the Workfile Detail table (F4812) by labor category that are associated with the lines that are cross-referenced to the fee billing line.

  2. Retrieves both the LOE hours required for each labor category that has accumulated hours and the total LOE hours required for all of the labor categories for the contract.

  3. Adds invoice amounts and hours for the cross-reference lines from previous invoices to the current hours by labor category.

  4. Divides the LOE hours required for the labor category by the total LOE hours required for all labor categories for the contract.

  5. Multiplies the quotient from Step 4 by appropriate contract limit amount.

  6. Multiplies the product from Step 5 by the quotient that is derived by dividing the accumulated hours from the labor category by the LOE hours required for the labor category. The system completes this step for each labor category with accumulated hours.

  7. Adds all products from Step 6.

  8. Subtracts fee amounts from previous invoices.

If the accumulated hours for a labor category are more than the LOE hours for that labor category, the system uses the LOE hours in the calculation, instead of the accumulated hours, using the LOE hours as a limit. For example, if the accumulated hours for labor category ADMIN are 300, and the LOE hours specified for the labor category are 250, the system uses 250 in the calculation, instead of 300.

See Entering Contract-Specific Labor Categories.