The Contractor Owned Contractor Operated Co Co (COCCO) is a business model where a contractor owns and operates a company. This means that the contractor has full control and responsibility over the operations and management of the company. The contractor is typically responsible for providing the necessary resources, such as equipment, personnel, and capital, to run the company. The COCCO model is commonly used in industries where specialised skills or expertise are required, such as construction, transportation, and defence. It is important to note that the contractor assumes all risks and liabilities associated with the company’s operations.
A CoCo arrangement is a business model in which a contractor owns and operates a facility or service on behalf of a government agency or private entity.
Yes, CoCo arrangements are legal as long as they comply with all relevant laws and regulations, including those related to contracting, ownership, and operation of the facility or service.
Some potential benefits of a CoCo arrangement include cost savings, increased efficiency, and access to specialised expertise from the contractor.
Some potential drawbacks of a CoCo arrangement include the risk of conflicts of interest, the potential for reduced accountability, and concerns about the contractor’s ability to prioritise profit over the best interests of the government or private entity.
CoCo arrangements can vary widely in their structure, but they generally involve a contract between the contractor and the government or private entity outlining the terms of ownership, operation, and compensation.
CoCo arrangements are commonly used for facilities and services such as military bases, government-owned utilities, and infrastructure projects.
The terms of early termination of a CoCo arrangement are typically outlined in the contract between the contractor and the government or private entity and may include provisions for breach of contract, non-performance, or other specified reasons.
The legal responsibilities of the contractor in a CoCo arrangement are outlined in the contract and may include obligations related to performance, maintenance, reporting, and compliance with laws and regulations.
To ensure the success of a CoCo arrangement, the government agency or private entity should carefully vet potential contractors, establish clear performance metrics and oversight mechanisms, and regularly evaluate the contractor’s performance.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 27th April 2024.
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