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  • Question

    CAN THIS KIND OF MOA BE CONSIDERED AS CONCESSIONAIRE CONTRACT SINCE IT IS AN INCOME GENERATING CONTRACT AND BE PREPARED AS CONCESSIONAIRE CONTRACT?


    Answer

    As a representative of DAU, any response given would be based on the statutory/requirements of the FAR and the DFARS.  A search of both documents has produced zero results for "concessionaire contract" or "concessionaire agreement."  A web search provided the following definition:

     

    "A negotiated contract between a company and a government that gives the company the right to operate a specific business within the government's jurisdiction, subject to certain conditions.  A concession agreement may also refer to an agreement between the owner of a facility and the concession owner or concessionaire that grants the latter exclusive rights to operate a specified business in the facility under specified conditions.  Regardless of the type of concession, the concessionaire usually has to pay the party that grants it the concession ongoing fees that may either be a fixed amount or a percentage of revenues."

     

    Because of the reference to MWR, it is believed that the agreement is dealing with non-appropriated funds that are not covered under the regulations (FAR/DFARS) which is why there were zero results when searching.

     

    Also further research resulted in a sample of an Army Concessionaire Contract that had a location for a “contract number”. This sample can be accessed at armypubs.army.mil/eforms/pdf/a5756.pdf. The question appears to be more of an internal procedure question within the local organization versus one to be answered under the DAU AAP program as DAU cannot provide guidance on any internal local policy procedures. 

     

    Consultation with your Base JAG office is recommended in that you indicate you plan to collect a usage fee from the school district.

     

     

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