What does COCO mean in US GOVERNMENT

Contractor-Owned, Contractor-Operated (COCO) is a term commonly used to describe contracts where a customer pays for the services and/or products of an external contractor. The customer pays for these services but holds no ownership or operational responsibility over them.

This type of contract typically covers the provision of goods or services from an outside contractor, including but not limited to design work, consulting, specialized manufacturing processes, and IT solutions.

The equipment or property associated with COCO projects is usually owned by the contractor who provides them. The customer does not assume any ownership responsibility but may take on certain operational roles such as providing oversight or quality control.

Generally speaking, liability for COCO projects rests with the contractor who owns and operates them. However, depending on the terms of the individual project agreement it is possible that some liabilities might be shared between both parties. It is important that agreements clearly define each party's liability before signing any contracts.

Payment for COCO agreements can be structured in various ways including fixed fees determined at specific milestones within a project timeline; a direct purchase price based on agreed upon terms; or ongoing “maintenance” fees related to ongoing service needs met by contractors. It is important to clarify payment terms ahead of time in order to prevent misunderstandings down the line.