Definition
FAR 17.601 defines what constitutes a management and operating contract, setting the foundation for compliance with specialized rules for such agreements.
Overview
FAR 17.601 provides the official definition of a "management and operating contract" (M&O contract) as used in federal procurement. This definition is crucial for understanding the scope and application of Subpart 17.6, which governs contracts where the government outsources the operation, maintenance, or support of government-owned or controlled facilities—typically those focused on research, development, special production, or testing. These facilities are usually dedicated to major programs of the contracting federal agency. The definition clarifies when a contract falls under the specialized rules and oversight requirements for M&O contracts, which often involve unique compliance, reporting, and operational obligations.