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  • Question

    Can a novation agreement be done on an Other Transaction governed by 10 USC 2371b? Can you use FAR 42.1204 to model a novation agreement but change the authority to 10 USC 2371b. I looked through everything I had and found nothing discusses this topic. Any help/advice would be greatly appreciated. Thank you for your time.


    Answer

    Yes, the procedure in this FAR section can be used as a model to craft the novation agreement, as long as the consortia agrees to the term that would be added to their OT. The procedures in the FAR can be copied, as long as doing so would not turn away companies from wanting to do business with the government. Instead of referring to the FAR reference or USC for the change, a recommendation is to state "Mutual agreement of the parties", or something to that effect so the FAR is not governing any portion of the OT and 10 USC 2371b is silent on novations.

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