diff --git a/src/config/svc-monitor/svc_monitor/instance_manager.py b/src/config/svc-monitor/svc_monitor/instance_manager.py
index b9b170a542b..9b5af5ed14e 100644
--- a/src/config/svc-monitor/svc_monitor/instance_manager.py
+++ b/src/config/svc-monitor/svc_monitor/instance_manager.py
@@ -102,7 +102,7 @@ def _allocate_iip(self, vn_obj, iip_name):
             try:
                 self._vnc_lib.instance_ip_create(iip_obj)
             except RefsExistError:
-                pass
+                iip_obj = self._vnc_lib.instance_ip_read(fq_name=[iip_name])
 
         return iip_obj
 
@@ -259,7 +259,6 @@ def validate_network_config(self, st, si):
             nic['static-route-enable'] = st_if.get('static_route_enable')
             nic['static-routes'] = si_if.get('static_routes')
             nic['user-visible'] = user_visible
-            nic['mac-address'] = self.mac_alloc(vn_id)
             si.vn_info.insert(index, nic)
 
         if config_complete:
@@ -398,8 +397,6 @@ def _create_svc_vm_port(self, nic, instance_name, si, st,
                 vmi_updated = True
 
         if vmi_create:
-            mac_addrs_obj = MacAddressesType([nic['mac-address']])
-            vmi_obj.set_virtual_machine_interface_mac_addresses(mac_addrs_obj)
             try:
                 self._vnc_lib.virtual_machine_interface_create(vmi_obj)
             except RefsExistError:
@@ -426,6 +423,11 @@ def _create_svc_vm_port(self, nic, instance_name, si, st,
                 % (instance_name, proj_obj.name))
             return
 
+        # set mac address
+        mac_addrs_obj = MacAddressesType([self.mac_alloc(iip_obj.uuid)])
+        vmi_obj.set_virtual_machine_interface_mac_addresses(mac_addrs_obj)
+        self._vnc_lib.virtual_machine_interface_update(vmi_obj)
+
         # check if vmi already linked to iip
         iip_update = True
         iip = InstanceIpSM.get(iip_obj.uuid)
diff --git a/src/config/svc-monitor/svc_monitor/svc_monitor.py b/src/config/svc-monitor/svc_monitor/svc_monitor.py
index a2b6067700a..d2a1641bc68 100644
--- a/src/config/svc-monitor/svc_monitor/svc_monitor.py
+++ b/src/config/svc-monitor/svc_monitor/svc_monitor.py
@@ -713,9 +713,8 @@ def _delete_service_instance(self, vm):
         return True
 
     def _relaunch_service_instance(self, si):
-        if si.state == 'active':
-            si.state = 'relaunch'
-            self._create_service_instance(si)
+        si.state = 'relaunch'
+        self._create_service_instance(si)
 
     def _check_service_running(self, si):
         st = ServiceTemplateSM.get(si.service_template)