FAR and DFARS › FAR Part 17: Special Contracting Methods › Subpart 17.6
FAR 17.603 Limitations.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section lists functions that cannot be performed under a management and operating contract, such as directing Government personnel, exercising police or regulatory powers, setting basic Government policies, or handling day-to-day agency staff or management work. It also says that once an authorization is issued under 17.602(a), that authorization is sufficient proof of compliance with these limits and does not affect the authorization's validity or legality. It points to subpart 22.5 for project labor agreements.
Applies to: Management and operating contracts
Key terms: management and operating contracts · authorization · police or regulatory powers · basic Government policies · project labor agreements
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Management and operating contracts shall not be authorized for—
(1) Functions involving the direction, supervision, or control of Government personnel, except for supervision incidental to training;
(2) Functions involving the exercise of police or regulatory powers in the name of the Government, other than guard or plant protection services;
(3) Functions of determining basic Government policies;
(4) Day-to-day staff or management functions of the agency or of any of its elements; or
(5) Functions that can more properly be accomplished in accordance with Subpart 45.3, Authorizing the Use and Rental of Government Property.
(b) Since issuance of an authorization under 17.602(a) is deemed sufficient proof of compliance with paragraph (a) immediately above, nothing in paragraph (a) immediately above shall affect the validity or legality of such an authorization.
(c) For use of project labor agreements, see subpart 22.5.
Sections it refers to
- 17.602 Policy.
← 17.602 Policy. · 17.604 Identifying management and operating contracts. →
Rule changes for FAR Part 17
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 16, 17, and 35 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-05-12 · effective 2025-06-11
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation: Prohibition on the Use of Reverse Auctions for Complex, Specialized, or Substantial Design and Construction Services ↗ · proposed 2024-08-29 · comments due 2024-10-28
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-07-30 · effective 2024-08-29
- Federal Acquisition Regulation: Reverse Auction Guidance ↗ · final rule 2024-07-30 · effective 2024-08-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.