If you are buying or selling a business that holds federal contracts, one of the most important steps is called a novation. Many business owners hear the word and immediately think: how long is this going to take? The short answer is usually several months, but the longer answer depends on how well you prepare for the FAR novation timeline.
This article explains what a FAR novation is, how long it usually takes, why it sometimes drags out, and what steps you can take to keep your business deal on track.
Understanding the FAR novation timeline is crucial for making informed decisions.
What is a Novation Under FAR?
A novation is a formal process where the federal government agrees to transfer a contract from one company to another. This happens most often when one company buys another, when two companies merge, or when business assets tied to government contracts are sold.
Think of novation as a three-way agreement. The original contractor, the new company, and the government all sign documents that say:
- The new company will take over the rights and responsibilities of the contract.
- The old company gives up its claims to the contract.
- The government approves the transfer.
For businesses holding a GSA contract, novation is especially important. Agencies need to know the successor company can deliver at the same standards. This is where GSA modification guidance becomes critical, since any change to your GSA Schedule contract — including novation — must be properly documented to stay compliant.
What the FAR Says About Timing
The Federal Acquisition Regulation (FAR) explains what documents you need for a novation and what steps the contracting officer must take. But it does not give a hard timeline.
This means the approval process often depends on the workload of your contracting officer, the complexity of the deal, and how complete your package is when submitted.
How Long Does a Novation Usually Take?
In practice, novations often take three to six months. That is the range most contractors and GSA contract consultants report. Some novations are quicker if the paperwork is flawless. Others can last much longer if the contracting officer needs additional proof that the new company is responsible or financially sound.
Why Novations Take So Long
Here are the most common reasons why novations get stuck:
- Heavy documentation: FAR requires a long list of supporting documents. Even a missing signature can stop the clock.
- Agency differences: Each agency handles novations a little differently. For example, the GSA commercial platforms team may have different expectations than the Defense Contract Management Agency.
- Timing of submission: Most companies wait until after their deal closes before submitting novation paperwork. That means you cannot get a head start.
- Contracting officer workload: Novations are not always high priority compared to new acquisitions, so delays happen.
How to Make the Process Faster
While you cannot control everything, you can avoid the most common delays.
- Start early. Speak with your contracting officer before the transaction closes. This shows good faith and prepares them for the request.
- Prepare a complete package. Gather every required document and organize it neatly. Clear presentation matters.
- Expect extra requests. Even if you send everything, the government may ask for more. Respond quickly to keep momentum.
- Plan your deal terms. Tie your payment structure or closing date to the completion of novation so you are not left exposed if it takes longer than expected.
Quick Timeline Snapshot
| Step | Timeframe (Typical) | Notes |
|---|---|---|
| Preparing documents | 2 to 4 weeks | Depends on deal complexity |
| Submitting to government | After transaction closing | Novation request formally begins |
| Government review | 3 to 6 months | Longer if incomplete or complex |
| Approval and signing | Final step | Contract officially transferred |
Capitol 50’s Perspective
Going through a FAR novation can feel slow and uncertain. The rules tell you what must be submitted, but not how long the process will take. That is why preparation and expert guidance make a difference.
Capital 50 works with businesses to prepare Contract-Qualification Reviews that reveal risks before submission. We help companies:
- Build a clean and complete novation package.
- Navigate GSA-specific requirements like GSA modification guidance and most favored customer GSA pricing obligations.
- Plan for how novation affects future sales opportunities, including whether you may need a GSA contract consultant to support growth.
FAQ: Common Questions on GSA Contracts
What is a GSA contract?
A GSA contract is a long-term government-wide contract with the General Services Administration. It allows businesses to sell products and services directly to federal agencies under pre-negotiated terms.
What is a GSA SIN number?
A Special Item Number (SIN) is a category under the GSA Schedule system. Each SIN number represents a specific type of product or service. When people talk about GSA SINs, they mean the categories that determine how your offerings are classified.
How to obtain a GSA contract?
To obtain a GSA contract, a company must apply through GSA’s eOffer system, submit past performance data, pricing, and financials, and undergo review by a contracting officer. Many companies rely on consultants to guide them through the process, since errors can lead to delays or rejections.
Final Takeaway
So how long does a FAR novation take? Most of the time, three to six months. Sometimes longer, rarely shorter. The best way to control the process is by submitting a complete, carefully prepared package and engaging early with the government.
If your business is preparing for a merger, acquisition, or sale that involves federal contracts, do not risk delays by going in blind.
Take the first step today. Explore our Contract-Qualification Review or Request a Free Audit to see how prepared your business is for novation.
