Far 42.12 Novation And Change-Of-Name Agreements

To support the preparation of the name change agreement, Part 42.1205(b) presents a template with the necessary word and signature blocks. 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. 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. 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. 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. However, since this is an administrative amendment to the contract affecting all remaining work, name change agreements must be verified by a government advisor to ensure legal ability.

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 change of the contractor`s name as a business entity and do not involve a constructive change in contractual work or remuneration. . . .