Airing of Grievances: FAR Council Invites Novation Comments

Is it finally time to fix the outdated, incomplete, and often misunderstood novation regulations? Maybe. On April 5, 2024, the FAR Council released a Notice and Request for Comments requesting comments from federal contractors related to novation and change-of-name agreements under FAR 42.12. In particular, the FAR Council asks contractors to weigh in on whether the collection of contractors’ information under FAR 42.12 is necessary for the proper performance of the functions of federal government acquisitions. In addition, the FAR Council wishes to receive feedback on its estimated burden of this collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents. Comments are due by June 4, 2024. As anyone who has done a novation knows, practice has moved so far beyond these regulations that it is about time contractors shared their frustrations with this process. Of course, this may also open the door to new unnecessary requirements, so the overall process bears watching.

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