[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR17.605]

[Page 331]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 17_SPECIAL CONTRACTING METHODS--Table of Contents
 
             Subpart 17.6_Management and Operating Contracts
 
Sec.  17.605  Award, renewal, and extension.

    (a) Effective work performance under management and operating 
contracts usually involves high levels of expertise and continuity of 
operations and personnel. Because of program requirements and the 
unusual (sometimes unique) nature of the work performed under management 
and operating contracts, the Government is often limited in its ability 
to effect competition or to replace a contractor. Therefore contracting 
officers should take extraordinary steps before award to assure 
themselves that the prospective contractor's technical and managerial 
capacity are sufficient, that organizational conflicts of interest are 
adequately covered, and that the contract will grant the Government 
broad and continuing rights to involve itself, if necessary, in 
technical and managerial decisionmaking concerning performance.
    (b) The contracting officer shall review each management and 
operating contract, following agency procedures, at appropriate 
intervals and at least once every 5 years. The review should determine 
whether meaningful improvement in performance or cost might reasonably 
be achieved. Any extension or renewal of an operating and management 
contract must be authorized at a level within the agency no lower than 
the level at which the original contract was authorized in accordance 
with 17.602(a).
    (c) Replacement of an incumbent contractor is usually based largely 
upon expectation of meaningful improvement in performance or cost. 
Therefore, when reviewing contractor performance, contracting officers 
should consider--
    (1) The incumbent contractor's overall performance, including, 
specifically, technical, administrative, and cost performance;
    (2) The potential impact of a change in contractors on program 
needs, including safety, national defense, and mobilization 
considerations; and
    (3) Whether it is likely that qualified offerors will compete for 
the contract.

                           PART 18 [RESERVED]

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