FAR 42.1200—Scope of subpart.
Plain-English Summary
FAR 42.1200 is the scope statement for FAR Subpart 42.12, and it tells you exactly what this subpart is about: recognizing a successor in interest when contractor assets are transferred, recognizing a contractor’s change of name, and having the responsible contracting officer execute novation agreements and change-of-name agreements. In practice, this section matters when a contractor sells, merges, reorganizes, or otherwise transfers the business assets tied to a federal contract, because the Government must decide whether the new entity can step into the old contractor’s place. It also matters when a contractor simply changes its legal name, since the Government needs a formal process to keep contract records accurate without treating the event as a transfer of obligations. The section does not itself set out the detailed procedures; instead, it establishes the subject matter and signals that the rest of Subpart 42.12 governs how these changes are documented and approved. For contractors and contracting officers, the practical significance is that business changes affecting contract performance, payment, responsibility, and legal identity must be handled through the proper FAR process rather than informally or by assumption.
Key Rules
Asset transfers may require novation
When contractor assets are transferred, the Government may recognize a successor in interest to the contracts. This means the new entity does not automatically become the contractor; recognition must occur under the procedures in this subpart.
Name changes are separately recognized
A contractor’s change of name is treated differently from a transfer of assets or business. The Government can recognize the new name without creating a new contractor relationship, but the change must still be documented properly.
Responsible contracting officer acts
The responsible contracting officer is the official who executes novation agreements and change-of-name agreements. This centralizes authority and ensures the contract file reflects the legally recognized party.
Subpart governs procedures
This section is only the scope statement, so it points users to the detailed policies and procedures elsewhere in Subpart 42.12. The practical rule is that the actual steps, required documents, and approval standards come from the rest of the subpart, not from this section alone.
Responsibilities
Contracting Officer
Determine whether a transaction is a successor-in-interest situation or only a name change, and execute the appropriate novation agreement or change-of-name agreement when authorized under the subpart.
Contractor
Notify the Government of asset transfers or legal name changes and provide the information needed to support recognition of the successor or the new name.
Agency
Apply the Subpart 42.12 procedures consistently so contract records, payment arrangements, and legal responsibility are updated correctly when contractor identity changes.
Successor Entity
If seeking recognition as the contractor’s successor in interest, demonstrate that it qualifies under the applicable novation process and accept the contractual obligations associated with the transferred contracts.
Practical Implications
A business sale, merger, or asset transfer affecting a federal contractor cannot be handled casually; the Government must formally recognize the successor before contract administration can continue under the new entity.
A simple corporate name change is not the same as a transfer of assets, but it still requires formal documentation so invoices, modifications, and records match the contractor’s legal name.
Contractors should not assume that a merger or reorganization automatically transfers contract rights and obligations; without a novation, the Government may continue to view the original contractor as the legal party.
Contracting officers should verify whether the event is a true successor-in-interest issue or only a name change, because using the wrong agreement can create enforceability and payment problems.
The main day-to-day risk is incomplete documentation: if the contract file, SAM registration, payment information, and agreement language are not aligned, performance and administration can be delayed.
Official Regulatory Text
This subpart prescribes policies and procedures for- (a) Recognition of a successor in interest to Government contracts when contractor assets are transferred; (b) Recognition of a change in a contractor’s name; and (c) Execution of novation agreements and change-of-name agreements by the responsible contracting officer.