Far Subpart 42.12 Novation And Change-Of-Name Agreements

42.1205 – Agreement on the Recognition of the Change of Name of Contractors covers cases where only the name of the Contractor is changed and the rights and obligations of the Government and the Contractor are not affected. In these cases, the parties set up a contract reflecting the name change. In summary, name change agreements do not significantly change the contract, but since the administrative data need to be updated, the competent CO must nevertheless sign a formal agreement describing the subsequent modification of the management contract. To support the preparation of the name change agreement, Part 42.1205(b) presents a template with the necessary word and signature blocks. A previous article dealt with the issue of novation agreements involving the sale or restructuring of a company, which resulted in a change in the commercial information published in the signed contract. The much simpler process is closely related to this approach, with name changes for the main contractor. By definition, these situations only involve the modification of the name of the contractor as a commercial entity and do not involve a constructive change in contractual work or remuneration. Part 42.12 of the Federal Acquisition Regulation (FAR) also describes the nature and process of these changes. The name change processes are the same as for novation.

As described in FAR Part 42.1203, the contractor initiates the action by a written request addressed to the competent CO. The name change agreement assimilates a simple administrative modification, but nevertheless requires a modification of the contract in order to ensure the proper management of all remaining works, invoices and payments. The government does not assume any risk associated with an administrative name change and this process does not constitute a conflict of interest that could preclude recognition of the change by the government. Since name changes do not affect the material nature of the contract or counterparty, FAR Part 42.1204, which deals specifically with novation contracts, does not apply to name change agreements. 2. The opinion of the holder`s legal adviser, which indicates that the change of name has been carried out correctly in accordance with the legislation in force and which indicates the date of entry into force. 3. A list of all relevant contracts and orders which have not yet been concluded between the Contractor and the Government, with respectively the number and nature of the contract, as well as the name and address of the contract office. The CO may request the full amount of the dollar as amended and the remaining balance of the outstanding amount for each contract.

This article was written by: SignEx