What is contract novation and when does an SDVOSB need it?
Contract novation is the legal process of substituting a new contractor for the original contractor on an existing contract, with the government's consent. An SDVOSB needs a novation when it transfers its assets or operations to a new entity (e.g., through sale or restructuring). The novation request must be submitted to the contracting officer with evidence of the transfer. Not all transfers qualify for novation — the contracting officer has discretion.
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