[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR17.605]



[Page 341-342]

 

            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



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    (3) Whether it is likely that qualified offerors will compete for 

the contract.



                           PART 18 [RESERVED]



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