LOE
Level of Effort
Acronyms & AbbreviationsDefinition
Level of Effort (LOE) refers to a type of contract or task that is measured by the amount of labor hours applied rather than specific deliverables or outcomes. LOE contracts pay for a defined number of labor hours over a period, regardless of what is produced.
LOE is common in support services contracts where the government needs a certain number of people performing ongoing work — help desk support, program management, administrative assistance, or advisory services. The "deliverable" is essentially the labor itself, not a specific product.
LOE vs. Completion-type contracts:
- LOE: "Provide 2 senior analysts, 40 hours/week each, for 12 months." Payment is for the hours worked.
- Completion: "Deliver a cybersecurity assessment report by March 31." Payment is tied to the deliverable.
In proposals, LOE tasks require you to specify labor categories, qualifications, and hourly rates. The government evaluates whether your proposed staff and rates represent good value for the effort required.
LOE is frequently used in IDIQ task orders and cost-plus contracts. It's also common to see a contract with both LOE and completion-type CLINs.
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