Federal Contracting Acronym
NOVATION
Novation Agreement
Plain-English definition
Novation Agreement (Novation) is a core federal acquisition term used in regulations, solicitations, and contract administration. Federal acquisition teams use this term when structuring competition, drafting solicitations, and administering contracts under the FAR framework. Contractors encounter it when interpreting clause libraries, compliance matrices, and award documents.
Why it matters
Awards cannot simply be assumed in asset deals without CO-approved novation agreements.
Where you will see it
M&A diligence, SAM updates, and CO novation packages.
Example in context
When reviewing a solicitation, a contractor confirms how NOVATION is used in the notice, whether related clauses apply, and which internal subject-matter experts should validate the response.