Whay Law Firm Assists Federal Contractors With Third Party Transfer of Government Contract

The Whay Law Firm is a full-service government contracts law firm dedicated to providing outstanding legal service to businesses whose government contracts are subject to a transfer of the business. Although the Anti-Assignment Act dictates that federal contracts may not be redistributed, there are certain exceptional situations in which the U.S. government will consider a transfer.

Whay Law Firm’s lawyers and trusted advisors have the necessary experience in helping contractors to transfer their government contract to a third party, as set out in the Federal Acquisition Regulation rules, and to provide your business with the best possible outcome.

There Are Exceptions to the Anti-Assignment Act

The Anti-Assignment Act prohibits the transfer of government contracts to a third party. However, in certain situations the Government may consent to such a transfer. The contractor must know under what circumstances a Novation Agreement is required, and he or she must carefully and completely follow the Federal Acquisition Regulation (FAR) rules for contract novation.

When is a contract Novation Agreement needed? When a third party’s interest in a contract arises from a transfer of all the contractor’s assets, or the entire portion of the contractor’s assets that are involved in performing the contract, a Novation Agreement may be required to gain the Government’s consideration for consenting to the transfer. Even a merger/acquisition or change in ownership through a stock purchase could be cause for a contract novation.

The Novation Package For Contract Novation

The contractor must submit a “Novation Package” to the responsible contracting officer (CO) who will use the details in the package to make an informed decision. The required contents of the package includes, but is not limited to:

• The proposed novation agreement
• Documents that describe and authenticate the transfer of the business
• List of the affected contracts with details
• Evidence of the transferee’s capability to perform and appropriate corporate approvals
• Financial statements
• Security clearance evidence

The novation process should be started as early in the transfer process as possible, beginning with expert legal advice from an experienced and trusted law firm.

Contact Whay Law Firm in Washington DC

If your firm is anticipating a purchase, merger/acquisition or transfer, contact Whay Law Firm today at (202) 448-9677 to learn how your business may hand over a government contract to a trusted third party.