GSA Contract Novation

A GSA contract novation agreement is required when a firm or its key assets are sold to a third party. This is because a government contract cannot be assigned or transferred to another party without the government's permission.

When is a Novation Agreement Required?

Once assets have changed, a novation agreement must be negotiated with your contract officer. In addition to compliance issues, contract modifications cannot be approved until the novation is completed. A lack of agreement could also affect future payments on current GSA task orders.

An agreement is required when

    • all of the contractor’s assets are transferred to another firm, or
    • if the assets involved in performing the contract are transferred  

When is a Novation Agreement Not needed?

A novation agreement is not needed if:

    • A change of ownership is due to a stock purchase 
    • There is no legal change in the contracting party
    • The contracting party remains in control of assets and performing the contract
    • When it is not in the Government’s interest to agree to the transfer

TurboGSA Novation Assistance

TurboGSA works with both firm's management team and attorney's in preparing and submitting all the necessary novation agreement documentation as outlined in FAR 42.1204.  The primary purpose is to demonstrate to the GSA Contracting Officer that the transferee is a responsible contractor under the requirements of FAR 9.1.

After completion of the novation, TurboGSA will modify required pricelists and upload new information to GSA Advantage and GSA eLibrary.

Please contact us for information on our novation services.

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