Predecessor of Offeror
Offerors must disclose if they are successors to entities that held federal contracts or grants in the past three years, providing specific predecessor information to ensure transparency and accountability.
Overview
FAR 52.204-20, "Predecessor of Offeror," requires offerors to disclose whether they are successors to any entities (predecessors) that held a federal contract or grant within the past three years. This provision is designed to provide transparency regarding organizational changes, such as mergers or acquisitions, that may affect the offeror's responsibility or performance history. Offerors must provide specific information about any such predecessor, including the CAGE code and legal name, to help the government assess risk and ensure continuity in contract oversight.
Key Rules
- Disclosure Requirement
- Offerors must indicate if they are a successor to a predecessor entity that held a federal contract or grant within the last three years.
- Predecessor Information
- If the offeror is a successor, they must provide the predecessor's CAGE code (or mark "Unknown") and legal name for each relevant predecessor.
- Definitions
- The provision defines key terms such as "CAGE code," "predecessor," and "successor" to clarify reporting obligations and ensure consistent interpretation.
Responsibilities
- Contracting Officers: Must ensure the provision is included in solicitations as prescribed and review offeror disclosures for compliance and risk assessment.
- Contractors (Offerors): Must accurately disclose predecessor information if applicable and ensure all required data is provided.
- Agencies: Use the information to evaluate offeror responsibility and track performance history across organizational changes.
Practical Implications
- This provision helps prevent offerors from obscuring past performance or responsibility issues by changing organizational structure. It ensures transparency in federal contracting and supports due diligence in responsibility determinations. Common pitfalls include failing to disclose relevant predecessor information or providing incomplete data, which can delay or jeopardize contract awards.