Manage and Operate (M&O) Contract Model for R&D Centers
Management and Operating Contract (M & O) Model is one of the business models specific to the United States (US) Ministry of Energy. The concept first came into use in the US Energy Minister's 1983 memorandum, and its first applications coincided with the Second World War.
The Manhattan Project, which involved the design, development and production of the first atomic bomb during World War II, was successfully concluded due to collaboration of private sector firms, educational and research institutions and other civil society organizations with US public institutions. In this project, a public private sector collaboration model was implemented in which the public institution took the role of the project manager, the educational and research institutions provide the scientists and the private sector firms undertook the engineering and production services.
Following this successful model, the Atomic Energy Law enacted in 1946 and the basic principles of the M&O Contract were determined. Accordingly, while the Atomic Energy Commission was carrying out its mission, it would use the capabilities of private sector firms and educational and research institutions. Similarly, technical and managerial skills of private sector firms and training and research institutions would be used in the operation of publicly owned facilities.
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