42.1202
Responsibility for executing agreements
FAR 42.1202 establishes a clear hierarchy for determining which contracting officer is responsible for executing novation and change-of-name agreements, ensuring smooth contract administration during business changes.
Overview
FAR 42.1202 outlines how to determine which contracting officer is responsible for processing and executing novation and change-of-name agreements when a contractor's business changes ownership or name. The section provides a hierarchy for assigning responsibility based on whether contracts are assigned to an Administrative Contracting Officer (ACO), the presence of multiple plants or divisions, and the unsettled dollar balance of contracts. This ensures that the appropriate contracting officer oversees the legal and administrative transition of contract rights and obligations, minimizing confusion and ensuring continuity in contract administration.
Key Rules
- ACO Assignment
- If any affected contracts are assigned to an ACO, that ACO is responsible, or if contracts span multiple plants/divisions, the ACO for the corporate office takes responsibility.
- No ACO Assignment
- If no contracts are assigned to an ACO, the contracting officer with the largest unsettled dollar balance is responsible.
- Multiple Transferors
- If several transferors are involved, the ACO with the largest unsettled dollar balance is responsible, or the officer designated by the agency with the largest unsettled balance if no ACO is assigned.
Responsibilities
- Contracting Officers: Must determine and assume responsibility for executing novation or change-of-name agreements per the outlined hierarchy.
- Contractors: Must cooperate with the designated contracting officer and provide necessary information for the agreement process.
- Agencies: Must designate a responsible officer when required and ensure proper contract administration during ownership or name changes.
Practical Implications
- This section ensures clear assignment of responsibility, reducing delays and confusion during contract transfers or name changes.
- Contractors should identify the correct contracting officer early to streamline the novation or name change process.
- Misidentification of the responsible officer can delay contract modifications and payments.