We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Management and Operating Contracts: Key Legal Aspects
Definition & Meaning
Management and operating contracts are agreements between the government and contractors for the operation and maintenance of government-owned facilities or establishments. These contracts establish a unique relationship where contractors assume responsibility for specific operational functions while adhering to government standards and regulations. The primary goal is to ensure that government facilities operate efficiently and effectively, particularly in areas related to national defense and public safety.
Table of content
Legal Use & context
Management and operating contracts are commonly used in federal and state government operations, particularly in defense, research, and public service sectors. These agreements allow agencies to fulfill their missions by leveraging the expertise of private contractors. Users may encounter these contracts in legal practices related to public procurement, administrative law, and government contracting. With the right tools, such as templates from US Legal Forms, individuals and agencies can manage these agreements effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
1. A government agency contracts a private company to manage a research facility. The contractor is responsible for maintaining the facility, ensuring compliance with safety regulations, and managing personnel.
2. A defense department uses a management and operating contract to ensure that a military base operates smoothly, with the contractor overseeing logistics, security, and maintenance (hypothetical example).
Relevant laws & statutes
According to 48 CFR 17.603, management and operating contracts have specific limitations, including:
Prohibiting functions involving direction, supervision, or control of government personnel, except for training-related supervision.
Restricting the exercise of police or regulatory powers in the government's name, except for guard services.
Preventing contractors from determining basic government policies.
Comparison with related terms
Term
Definition
Management Contract
A contract where a contractor manages operations but does not assume full operational responsibility.
Operating Contract
A contract that focuses specifically on the operational aspects of a facility, often without management oversight.
Common misunderstandings
What to do if this term applies to you
If you are involved in a management and operating contract, ensure that all parties understand their roles and responsibilities. It's advisable to consult with a legal professional to navigate the complexities of these agreements. Additionally, consider using US Legal Forms' templates to draft or review contracts effectively.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.