Federal glossary · Process
Novation Agreement (FAR 42.12) transfers a contractor's rights and obligations under a contract to a successor (typically due to merger, acquisition, or sale). Requires CO approval and a formal novation agreement.
Example: Respond to an RFI, RFP, or Sources Sought notice.
Reference record · Sources: Federal Acquisition Regulation · Verified Jul 2, 2026 · Covers definition, governing source
Novation Agreement (FAR 42.12) transfers a contractor's rights and obligations under a contract to a successor (typically due to merger, acquisition, or sale). Requires CO approval and a formal novation agreement.
is a process concept federal contractors and grant writers run into across solicitations, regulations, and award filings
NOVATION is a step or workflow in the federal-procurement lifecycle. For example: Example: Respond to an RFI, RFP, or Sources Sought notice. Knowing where NOVATION fits in the larger acquisition arc — from market research through award through performance — helps contractors time their engagement, identify the right contracting officials, and avoid showing up too late to influence the requirement. Many proposal failures trace back to misunderstanding when NOVATION occurs, who owns it, and what artifacts it produces. The related terms above name the adjacent process steps that most commonly precede or follow NOVATION, and tracking those transitions over time is one of the more reliable ways to build pipeline visibility ahead of formal solicitations.
Example: Respond to an RFI, RFP, or Sources Sought notice.
Meaning in practice
NOVATION is a step in a government workflow or procurement lifecycle.
Where you’ll see it
You will see it in NOFOs, solicitations, evaluation sections, award letters, and procedural instructions. Example: Example: Respond to an RFI, RFP, or Sources Sought notice..
Common confusion
People often confuse the document that describes the process with the process itself.
What to do next
Identify the deadline, owner, and artifacts the process produces before you move forward.
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