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Did You Know This About Novation Agreements?

In instances where a contractor holds several contracts with various agencies, the responsibility for initiating and executing the novation agreement falls with the contracting officer administering the largest unsettled dollar balance; or the contracting officer designated by the agency having the largest unsettled dollar balance, if none of the affected agency contracts have been assigned to a contracting officer. The responsible contracting officer shall send a copy of Standard Form 30 with attached executed novation to each contract administration office or contracting office involved, which shall be responsible for further appropriate distribution.

Contracting officers are only required to review the novation agreement, but not initiate an additional novation agreement.

 

(Novation Agreements – FAR Subpart 42.12)

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