42.1203
Processing agreements
FAR 42.1203 establishes detailed procedures and documentation requirements for processing novation and change-of-name agreements to ensure proper recognition of contract successors and protect Government interests.
Overview
FAR 42.1203 outlines the procedures for processing novation and change-of-name agreements when a contractor requests the Government to recognize a successor in interest or a name change. The section details the steps contractors and contracting officers must follow, including submission of written requests, information requirements, notifications, legal review, and documentation. It ensures that all affected parties are informed and that the Government’s interests are protected during contract transfers or name changes.
Key Rules
- Contractor Request
- Contractors must submit a written request to the responsible contracting officer for recognition of a successor or a name change, unless the contract falls under specific exceptions (e.g., subpart 8.7).
- Information Submission and Evaluation
- Contracting officers must request and evaluate necessary information, notify affected offices, and solicit comments or objections within 30 days.
- Government Interest Determination
- The contracting officer must determine if recognizing the successor is in the Government’s interest, considering responsibility and performance factors.
- Legal Review and Documentation
- Agreements must be reviewed by Government counsel for legal sufficiency, executed, and properly distributed and filed using Standard Form 30.
Responsibilities
- Contracting Officers: Request and evaluate information, notify affected parties, ensure legal review, execute and distribute agreements, and maintain documentation.
- Contractors: Submit written requests and required information, reference liability agreements in novation documents.
- Agencies: Oversee compliance, provide comments or objections, and ensure proper distribution of documents.
Practical Implications
- This section ensures orderly and transparent processing of contract transfers and name changes, protecting Government interests and clarifying responsibilities. Failure to follow these procedures can delay recognition of successors or name changes, potentially impacting contract performance and payment.