Steward Posted October 21, 2019 Report Share Posted October 21, 2019 This is an odd one, hoping to lean on the community for some guidance. Context: Local agency IDIQ (agency XYZ let's say), Corp A. - 8(a) IDIQ contract holder- Corp B.- See below. Proposed scenario: Can Corp B. buy/acquire just the IDIQ as an asset (rather than acquiring all of Corp A.)? If so, does the Government novation process differ, if not, any guidance to where I can find a clear "NO" to this type of scenario in the regs would be most appreciated. Link to comment Share on other sites More sharing options...
joel hoffman Posted October 21, 2019 Report Share Posted October 21, 2019 You are asking if Corporation B can substitute itself for Corporation A on a government ID/IQ contract by paying Corporation B - for what? Corp A cant just bow out of a contract obligation other than by defaulting. Link to comment Share on other sites More sharing options...
Steward Posted October 21, 2019 Author Report Share Posted October 21, 2019 I wasn't sure if the IDIQ could be sold as an asset to Corp B and the Government undergo novation procedures, I figured this was left field but I had to get a sanity check. I appreciate the sounding board. Link to comment Share on other sites More sharing options...
ji20874 Posted October 22, 2019 Report Share Posted October 22, 2019 Please read FAR 42.1204 for the answer to your question. Link to comment Share on other sites More sharing options...
C Culham Posted October 22, 2019 Report Share Posted October 22, 2019 I think 13 CFR 124.515 is applicable as well. Link to comment Share on other sites More sharing options...
joel hoffman Posted October 22, 2019 Report Share Posted October 22, 2019 2 hours ago, C Culham said: I think 13 CFR 124.515 is applicable as well. Thanks, Carl. 3 hours ago, ji20874 said: Please read FAR 42.1204 for the answer to your question. Thanks, ji. Link to comment Share on other sites More sharing options...
Retreadfed Posted October 22, 2019 Report Share Posted October 22, 2019 Steward, what do you mean by "local agency"? Is this a Federal agency subject to the FAR? Is the IDIQ contract the only contract A has? What type of contract is it, e.g., supplies, services, etc.? Link to comment Share on other sites More sharing options...
Steward Posted October 22, 2019 Author Report Share Posted October 22, 2019 Apologies, appreciate the opportunity to clarify and elaborate. Yes, the agency is Federal and subject to FAR. The IDIQ contract is for supplies + services (Corp A is one of 150+ IDIQ holders on an agency vehicle (not GWAC)). It is the only contract Corp A has at said agency. Link to comment Share on other sites More sharing options...
joel hoffman Posted October 22, 2019 Report Share Posted October 22, 2019 Stewart, is B an 8(a) firm? Link to comment Share on other sites More sharing options...
Steward Posted October 22, 2019 Author Report Share Posted October 22, 2019 Yes, B is an active 8(a) Link to comment Share on other sites More sharing options...
.gif)
Recommended Posts