Category:Novation
From Knowledge base
Background
Companies holding federal contracts cannot automatically sell or assign contracts to another company/contractor due to the Anti-Assignment Act. The Anti-Assignment Act has two statutory provisions. They are:
- The Assignment of Contracts Act
- The Assignment of Claims Act
The US Government may waive the statutory provisions of the Anti-Assignment Act and recognize a third party as the successor in interest. The most common and accepted approach is through a NOVATION agreement.
Exceptions to the Anti-Assignment Act
- When there is a change of ownership of a contractor as a result of a stock purchase, with no legal change in the contracting party, and when that contracting party remains in control of the assets and is the contracting party performing the contract.
- By Operation of Law
Regulations and Instructions
- FAR 42.12 - Novation and Change-of-Name Agreements
- DCMA-INST 132, CPR: DCMA-AQ, March 20, 2014 File:DCMA-INST-132 Novation Change of Name 3 20 14.pdf
Pages in category "Novation"
The following 5 pages are in this category, out of 5 total.
