Originally Posted by USFlyerUS

Contractors generally don't have access to Government airfare rates and, often, are prohibited from using Government rates at hotels. If you read the fine print of Government hotel rates, you'll notice it often says that the rates are not applicable for contractors. We've had many cases where our employees book the Government rates only to have the hotel charge them a higher rate upon check-in. Regardless, we eat the cost over the hotel per diem, unless the Contracting Officer grants approval to exceed the hotel per diem (which they can up to 300%, at their discretion).

Subcontractors have to follow the same rules as prime contractors. Almost every subcontract has flowdown provisions from the prime contract, which in effect puts the same FAR clauses in the subcontract that the Government put in the prime contract.