Novation - Retaining CDA Claim

John M., why not? The general rule is that a company cannot assign a contract. This is based on statute. However, the government can consent to the transfer of a contract if it is in the government's interest to do so. FAR 42.12 provides guidance on determining when it is in the government's interest to consent to the transfer of a contract. Nothing in 42.12, requires a contractor to transfer a contract. In the case you have described, performance on the contract is complete. None of the assets being acquired by B will be used in the performance of that contract. Therefore, I see no reason why contractor A could not retain that contract and continue to pursue its claim. Further, even if the contract and claim is novated, that would not necessarily extinguish the claim and A could still continue to pursue it in B's name.

What you say makes complete sense. The key is that all (or substantially all) of the assets are being transferred. So, keeping one contract which is remains open due to a claim, but where no work is required, does not prevent novation of other executory contracts. Thank you very much for your thoughts.

Minor point to Retreads post but a close read of FAR 42.12 notes sitiations of mutual contracts