Reduce Administrative Burden

The FAR currently contemplates two solutions to resolve the impact of corporate acquisitions and/or reorganization on federal contractors under the Anti-Assignment Act: the Novation process and a Name Change agreement. We propose that a third avenue be established to address situations in which, due to internal restructuring, the legal entity has changed but the parent company remains the same. In these instances, while a simple name change may not be appropriate, it is not an efficient use of government and contractor resources to require a novation. Rather, consider adopting a more streamlined process that recognizes the new corporate entity while assuring the government of the continued responsibility of the contractor.