Jump to content
The Wifcon Forums and Blogs

Recommended Posts

Maybe...with this response based on a couple of premises as supported by the FAR.

An order is considered by some to be a "contract" in its own right per FAR Part 2 definitions.

A novation (request by contractor for a successor in interest) may or may not be recognized by the Government based on the facts and the best interest of the Government. Ref: FAR Part 42.12

If such a request by the contractor is supported with facts and if such facts supported adequately that the IDIQ and the order are separately recognized for the purposes of successor in interest it just might fly through the various ACO, CO, and legal reviews necessary for the Government to honor the request.

I would hazard a guess that the real problem would come with how to adjust each through the electronic systems that are used today in handling the contract accounting and payment processes. In the old days of stubby pencils it could get accomplished but in current times an unusual change (at least one I have never heard of) might confuse the systems of today.

Link to comment
Share on other sites

Cajuncharlie provides an additional point but a simple perception of the facts for a yes/no answer in such a complicated matter seems off base to me.

If, for instance the current IDIQ was awarded in a multiple award scenario, could not the old and new agree to holding the IDIQ contract in their negotiations? Or, could not the requirement to adhere to the IDIQ T&C?s for a single novated order be memorialized in the novation agreement and a related modification? Many other scenarios could be painted as well.

The detailed facts of the purchase/sale agreement, MOU, etc between the old/new leading to the requested novation and the facts of the contracts, inclusive of the order, the Government holds will be the determining factors for approval or not of a novation request.

From personal experience novation strategies go haywire because the old/new firms fail to give ample consideration to matters of Government contracts during their negotiations and then ask the Government to pound the square peg into the round hole after the fact. Adequate advance planning and addressing Government contracts specifically by the old and new in their purchase/sale agreement/MOU helps tremendously.

Link to comment
Share on other sites

Is it possible for a contractor to novate an IDIQ contract but retain a task order that the contractor is currently perfoming under the IDIQ? Common sense says no but any insight would be appreciated.

You asked a theoretical question, so you should expect a theoretical answer. While it might be theoretically possible to do so, some real world factors should be considered such as who has the authority to do the novation? For example, which contracting officer would have the power to novate an order under a GSA Schedule contract? Next, what is the basis upon which a novation is required? If you have a supply contract and Oldco sells all the assets used to perform any order under the IDIQ contract, what would be the basis for not novating the contract and all orders under it? Another factor is who is the contract holder? If it is an 8(a) contractor performing a set-aside contract such a novation might not be possible. Hopefully, this demonstrates why a theoretical answer will probably not be of much value if you have a real issue for which you are seeking information.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...