Identifying management and operating contracts
Management and operating contracts are defined by their use of government facilities, close government-contractor relationships, and alignment with agency missions, requiring special oversight and continuity provisions.
Overview
FAR 17.604 outlines the criteria for identifying management and operating (M&O) contracts, which are unique due to their purpose and the special relationship they establish between the government and the contractor. These contracts typically involve the use of government-owned or -controlled facilities, often for reasons related to national defense, agency mission requirements, or when private enterprise cannot or will not provide the necessary facilities. M&O contracts require a close, ongoing relationship between the government and contractor, particularly in areas such as safety, security, and cost control. The work performed under these contracts is usually distinct from the contractor’s other business activities and is closely tied to the agency’s mission, often requiring continuity and special provisions for transition between contractors.