[Federal Register Volume 89, Number 129 (Friday, July 5, 2024)]
[Notices]
[Pages 55595-55596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 www.reginfo.gov/public/do/PRAMain. 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 [email protected].

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:
     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.
     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.
     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:
     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.
     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 [email protected]. 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]
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