Overview
FAR 17.603 establishes the boundaries for Management and Operating (M&O) contracts by identifying specific inherently governmental and administrative functions that cannot be legally delegated to a contractor.
Key Rules
- Prohibited Personnel Management: M&O contractors cannot direct, supervise, or control Government personnel, with the exception of supervision incidental to training.
- Restricted Authority: Contractors are barred from exercising police or regulatory powers in the name of the Government, though they may provide standard guard and plant protection services.
- Policy and Management Exclusion: Contractors are prohibited from determining basic Government policies or performing the day-to-day staff and management functions of an agency.
- Property Use Priority: Functions that are better suited for Subpart 45.3 (Authorizing the Use and Rental of Government Property) should not be performed under an M&O contract.
- Validity of Authorization: An authorization issued under 17.602(a) serves as sufficient proof of compliance with these limitations, protecting the legal standing of the contract.
Practical Implications
- Inherently Governmental Functions: This section serves as a safeguard to ensure that private contractors do not take over core sovereign responsibilities, such as law enforcement or policy-making.
- Administrative Protection: Paragraph (b) provides a "safe harbor" for Contracting Officers, ensuring that once an M&O contract is properly authorized, its legality cannot be easily challenged based on the specific limitations listed in this section.