Notice2024-14725
Submission for OMB Review; Novation and Change-of-Name Agreements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 5, 2024
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to the Office of Management and Budget (OMB) a request to review and approve an extension of a previously approved information collection requirement regarding novation and change-of-name agreements.
Full Text
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<title>Federal Register, Volume 89 Issue 129 (Friday, July 5, 2024)</title>
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[Federal Register Volume 89, Number 129 (Friday, July 5, 2024)]
[Notices]
[Pages 55595-55596]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14725]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0076; Docket No. 2024-0053; Sequence No. 8]
Submission for OMB Review; Novation and Change-of-Name Agreements
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Notice.
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SUMMARY: Under the provisions of the Paperwork Reduction Act, the
Regulatory Secretariat Division has submitted to the Office of
Management and Budget (OMB) a request to review and approve an
extension of a previously approved information collection requirement
regarding novation and change-of-name agreements.
DATES: Submit comments on or before August 5, 2024.
ADDRESSES: Written comments and recommendations for this information
collection should be sent within 30 days of publication of this notice
to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular information
collection by selecting ``Currently under Review--Open for Public
Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Zenaida Delgado, Procurement Analyst,
at telephone 202-969-7207, or <a href="/cdn-cgi/l/email-protection#88f2ede6e9e1ece9a6ecede4efe9ece7c8effbe9a6efe7fe"><span class="__cf_email__" data-cfemail="dba1beb5bab2bfbaf5bfbeb7bcbabfb49bbca8baf5bcb4ad">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
A. OMB Control Number, Title, and Any Associated Form(s)
9000-0076, Novation and Change-of-Name Agreements.
B. Need and Uses
This clearance covers the information that contractors must submit
to comply with the following requirements in Federal Acquisition
Regulation (FAR) subpart 42.12:
<bullet> FAR 42.1203(a), Written Request. If a contractor wishes
the Government to recognize a successor in interest to its contracts or
a name change, the contractor must submit a written request to the
responsible contracting officer. The request is used by the contracting
officer to determine what additional supporting documentation should be
submitted by the contractor and to determine what other contract
administration offices should be notified of the contractor's request.
<bullet> FAR 42.1204(e) and (f), Novation Agreement. Pursuant to
FAR 42.1203(b)(1), upon request from the contracting officer, the
contractor shall submit three signed copies of the proposed novation
agreement, plus copies of the supporting documentation listed at
42.1204(e) and (f), as applicable. The documentation is used by the
contracting officer to evaluate and, if appropriate, execute a proposed
agreement for recognizing a third party as a successor in interest.
<bullet> FAR 42.1205(a), Change-of-Name Agreement. Pursuant to FAR
42.1203(b)(1), upon request from the contracting officer, the
contractor shall submit three signed copies of the proposed change-of-
name agreement, plus copies of the supporting documentation listed at
42.1205(a), as applicable. The documentation is used by the contracting
officer to evaluate and, if appropriate, execute a proposed agreement
for recognizing a contractor's name change.
C. Annual Burden
Respondents: 1,625.
Total Annual Responses: 1,625.
Total Burden Hours: 3,163.
D. Public Comment
A. A 60-day notice was published in the Federal Register at 89 FR
24001, on April 5, 2024. A 60-day notice was published in the Federal
Register at 89 FR 24001, on April 5, 2024. Comments from 3 respondents
were received; however, they did not change the estimate of the burden.
Comment: Three respondents submitted the following recommendations
for changes to the FAR:
<bullet> For novation agreements:
[check] Define time frames in which the government will review the
novation request and request any further information.
[check] Explicitly permitting the electronic submission of novation
packages.
[check] Reserve the novation process for only actual transfer of
assets which are embodied in a sale between two entirely separate
unaffiliated legal entities.
[check] Include recognition of a successor in interest to
Government contracts among entities registered in the System for Award
Management (SAM) that have a common parent company when there is no
transfer of assets.
[check] Allow for a streamlined process for a transfer of assets
between two affiliated entities within the same corporate parent
structure.
[check] Remove the requirement to provide the ``approximate
remaining unpaid balance'' of contracts to be novated at FAR
42.1204(e)(2)(iv).
[check] Clarify that a novation process can begin before all the
documents are submitted although it won't be complete until all
necessary requirements are fully satisfied.
[check] Remove the requirement for a corporate seal or require it
only if the novated contracts are above a very high dollar threshold.
[check] Replace the listed documents at FAR 42.1204(f)(1) to (3)
with a simple Secretary's Certificate, certifying that all the
activities (registration, approval by the board, etc.) have been
completed.
[check] Require the government to appropriately deem an acquirer as
a successor in interest to the proposals. This could be a confirmation
or certification in SAM that the resources proposed remain available to
perform and that the acquisition or novation does not change the
ability to perform.
[[Page 55596]]
[check] Require that the contracting officer managing the contract
with the largest total contract value be the responsible contracting
officer to execute the novation agreement including a review by the
government's legal counsel.
[check] Limit the list requested at FAR 42.1204(e)(2) to multiple
year contracts identified at the time of submission of the request.
[check] Review the list of documentation being requested in light
of the advancement of electronic records.
<bullet> For change-of-name agreements:
[check] Run the change-of-name process through SAM exclusively.
Deem the name change automatically effective on all existing contracts
and work orders and all pending submitted proposals via SAM.
[check] Limit the list requested at FAR 42.1205(a)(3) to multiple
year contracts identified at the time of submission of the request.
[check] Explicitly permitting the electronic submission of change-
of-name packages.
Response: The respondents' input is appreciated. The
recommendations made by the commenters may be considered for future
action. Any necessary revisions to FAR subpart 42.12, Novation and
Change-of-Name Agreements, will be accomplished through rulemaking.
Comment: In the process of updating a legal entity name in SAM,
Defense Logistics Agency (DLA) Commercial and Government Entity (CAGE)
Review requires a signed statement from a contracting officer before an
update to a contractor's CAGE will be made. At the same time, the
responsible contracting officer requests that SAM be updated before
issuing a novation or name change. This apparently irreconcilable
administrative conflict causes delay in updating SAM resulting in more
awards being issued against the original contractor that would need a
modification. This creates additional burden for both the contractor
and the government.
Response: If a contractor is changing its name in SAM--
1. After completing the steps required by FAR 42.1205, the
contractor would have to update/renew its entire Entity Registration in
SAM and should be able to upload either the signed Change-of-Name
Agreement or the signed SF30, Modification of Contract, satisfying
what's required by the DLA CAGE team for screening and validation. See
SAM's Knowledge Base articles #KB 0016829 and KB 0016831.
2. Before completing the steps required by FAR 42.1205, the
contractor--
a. Must provide the notification required by paragraph (d) of the
FAR clause at 52.204-13, System for Award Management Maintenance.
b. Would have to update/renew its entire Entity Registration in
SAM.
c. When SAM sends the CAGE for screening and validation to the CAGE
team, the team may request legal documentation to support the name
change. This could result in the contractor getting a request from the
DLA CAGE team for the same documentation needed to complete the steps
required by FAR 42.1205. See SAM's Knowledge Base article #KB 0016831.
3. But the contractor does not have any open federal government
contracts, then, the contractor would have to update/renew its entire
Entity Registration in SAM. The contractor must provide the legal
documentation needed to support the name change to the CAGE team to
complete the CAGE/SAM validation process.
Obtaining Copies: Requesters may obtain a copy of the information
collection documents from the GSA Regulatory Secretariat Division by
calling 202-501-4755 or emailing <a href="/cdn-cgi/l/email-protection#b2f5e1f3e0d7d5e1d7d1f2d5c1d39cd5ddc4"><span class="__cf_email__" data-cfemail="24637765764143774147644357450a434b52">[email protected]</span></a>. Please cite OMB
Control No. 9000-0076, Novation and Change-of-Name Agreements.
Janet Fry,
Director, Federal Acquisition Policy Division, Office of Governmentwide
Acquisition Policy, Office of Acquisition Policy, Office of
Governmentwide Policy.
[FR Doc. 2024-14725 Filed 7-3-24; 8:45 am]
BILLING CODE 6820-EP-P
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