Management and Operating Contracts Law and Legal Definition
Management and operating contracts are agreements under which government contracts for the operation and maintenance of a government owned or testing establishment.
A management and operating contract creates special relationship between government and a contractor. The following criteria can generally be applied in identifying management and operating contracts:
1. To safeguard the interest of national defense or mobilization readiness;
2. To perform an agency’s mission adequately; or
3. To maintain a special, close relationship with a contractor and the contractor’s personnel in various important areas like safety, security, cost control and site conditions.
4. To provide special protection covering orderly transition of personnel and work in the event of a change in contractors.
According to 48 CFR 17.603, the limitations of management and operating contracts are the following :
1.Functions involving direction, supervision, or control of government personnel, except supervision incidental to training ;
2. Functions involving the exercise of police or regulatory powers in the name of the government, other than guard or plant protection services ;
3.Functions determining basic government policies.****
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