What is the process for a novation agreement when acquiring another government contractor?

The standard process for a novation agreement when acquiring another federal government contractor involves the transferor and transferee submitting a written request to the responsible contracting officer for approval of the transfer of contracts, as detailed in FAR 42.1204.

The request must include a copy of the instrument effecting the transfer of assets, such as a bill of sale or merger agreement. It also requires a list of all affected contracts, a statement of the transferee's capabilities, evidence of the transferee's legal capacity to perform, and a statement of financial responsibility. The agreement itself must clearly state the transfer of all rights and obligations from the transferor to the transferee, with the government recognizing the transferee as the new contractor. Each contract requires a separate novation agreement. My company has seen these with DLA contracts when a small distributor gets bought out.