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IDIQ transfer as a asset?

Started by Steward · Oct 21, 2019 · 9 replies

  1. S

    Steward

    Oct 21, 2019 · 6y ago

    Original post

    This is an odd one, hoping to lean on the community for some guidance.  

    Context:

    Local agency IDIQ (agency XYZ let's say),

    Corp A. - 8(a) IDIQ contract holder-

    Corp B.- See below.

    Proposed scenario: Can Corp B. buy/acquire just the IDIQ as an asset (rather than acquiring all of Corp A.)?  If so, does the Government novation process differ, if not, any guidance to where I can find a clear "NO" to this type of scenario in the regs would be most appreciated.

  2. j

    joel hoffman

    Oct 21, 2019 · 6y ago

    You are asking if Corporation B can substitute itself for Corporation A on a government ID/IQ contract by paying Corporation B -  for what?  

    Corp A cant just bow out of a contract obligation other than by defaulting.

  3. S

    Steward

    Oct 21, 2019 · 6y ago

    I wasn't sure if the IDIQ could be sold as an asset to Corp B and the Government undergo novation procedures, I figured this was left field but I had to get a sanity check.  I appreciate the sounding board.

  4. j

    ji20874

    Oct 22, 2019 · 6y ago

    Please read FAR 42.1204 for the answer to your question.

  5. C

    C Culham

    Oct 22, 2019 · 6y ago

    I think 13 CFR 124.515 is applicable as well.

  6. j

    joel hoffman

    Oct 22, 2019 · 6y ago

    C Culham said:

    I think 13 CFR 124.515 is applicable as well.

    Thanks, Carl. 

    ji20874 said:

    Please read FAR 42.1204 for the answer to your question.

    Thanks, ji.

  7. R

    Retreadfed

    Oct 22, 2019 · 6y ago

    Steward, what do you mean by "local agency"?  Is this a Federal agency subject to the FAR?

    Is the IDIQ contract the only contract A has?  What type of contract is it, e.g., supplies, services, etc.?

  8. S

    Steward

    Oct 22, 2019 · 6y ago

    Apologies, appreciate the opportunity to clarify and elaborate.

    Yes, the agency is Federal and subject to FAR.  The IDIQ contract is for supplies + services (Corp A is one of 150+ IDIQ holders on an agency vehicle (not GWAC)).  It is the only contract Corp A has at said agency.

  9. j

    joel hoffman

    Oct 22, 2019 · 6y ago

    Stewart, is B an 8(a) firm?

  10. S

    Steward

    Oct 22, 2019 · 6y ago

    Yes, B is an active 8(a)

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