48 CFR § 1642.7001 - 1642.7001 Management agreement.

---
identifier: "/us/cfr/t48/s1642.7001"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 1642.7001 - 1642.7001   Management agreement."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "1642.7001"
section_name: "1642.7001   Management agreement."
chapter_number: 16
chapter_name: "OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH BENEFITS ACQUISITION REGULATION"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "1642"
part_name: "CONTRACT ADMINISTRATION"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301."
regulatory_source: "59 FR 14765, Mar. 30, 1994, unless otherwise noted."
cfr_part: "1642"
---


# 1642.7001 1642.7001   Management agreement.

When it is in the best interest of FEHBP enrollees to continue a contract for an interim period after the carrier discontinues its operations and has entered into a Purchase and Sale Agreement (or other descriptive term), but before a successor in interest has been recognized by OPM, the carrier may submit for OPM approval a Management Agreement that enables it to continue a contract through an agreement with a third party to administer the day-to-day performance of the contract. Examples of situations in which a Management Agreement may be accepted by OPM are:

(a) When a transfer of assets does not meet the criteria for a novation;

(b) While a request for a novation is pending;

(c) While awaiting a decision on a request for a novation;

(d) As an interim measure, when the timing of a transfer of assets or the timing of a carrier's withdrawal make administration of the contract inconvenient;

(e) When it is not in the interests of the Government to either recognize a successor in interest or to immediately terminate the existing FEHBP contract.