17.604 Identifying management and operating contracts.
A management and operating contract is characterized both by its purpose (see 17.601 ) and by the special relationship it creates between Government and contractor. The following criteria can generally be applied in identifying management and operating contracts:
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(a) Government-owned or -controlled facilities must be utilized; for instance-
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(1) In the interest of national defense or mobilization readiness;
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(2) To perform the agency’s mission adequately; or
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(3) Because private enterprise is unable or unwilling to use its own facilities for the work.
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(b) Because of the nature of the work, or because it is to be performed in Government facilities, the Government must maintain a special, close relationship with the contractor and the contractor’s personnel in various important areas (e.g.,safety, security, cost control, site conditions).
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(c) The conduct of the work is wholly or at least substantially separate from the contractor’s other business, if any.
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(d) The work is closely related to the agency’s mission and is of a long-term or continuing nature, and there is a need-
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(1) To ensure its continuity; and
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(2) For special protection covering the orderly transition of personnel and work in the event of a change in contractors.
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