Fun with the FAR Part 42

1. For contractors other than educational institutions and nonprofit organizations, the “cognizant” Federal agency normally will be the agency with the largest dollar amount of contracts, including options. FAR 42.003(a).

2. Once a Federal agency assumes cognizance for a contractor, it should remain cognizant for at least 5 years. FAR 42.003(b).

3. Contractors are require to submit final indirect cost rate proposals with the six-month period following the expiration of its fiscal years. FAR 42.705-1(b)(ii).

4. Novation Agreements may be executed by the U.S. Government only AFTER contractors have executed a stock purchase or asset sale agreement. FAR 42.1204.

5. The cognizant Federal agency of the contractor transferring its contracts via a Novation Agreement is generally the responsible party tasked with negotiating and executing that agreement on behalf of the U.S. Government.

6. Even after the execution of a Novation Agreement with the Government, the contractor transferring its contracts to another contractor is still responsible for performance of those contracts until they are completed or terminated. See FAR 42.1204(i) (standard Novation Agreement, Article (b)(8)).

7. As a general rule, Government stop work orders should not last more than 90 days. FAR 52.242-15.

8. A contractor’s ability to obtain monetary or schedule relief from a Government change order is strictly controlled by the Changes clause in their Government contract. See FAR 52.243-1 thru 52.243-5.

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