Originally Posted by
skunker
It's interesting that as a sub they are holding you to that FAR clause. Remember, the government does not have a contract with you; you can a contract with the prime. For primes, the government reimburses direct costs in accordance with that clause and receipts are required. In theory you won't be able to travel or stay under government rates as you aren't under contract to the government.
The subk likely includes flow down provisions from the prime contract, so in effect this won't be an issue.