Modular contracting

U.S. government
Modular contracting provides for the delivery, implementation, and testing of a workable system or solution in discrete increments, or modules. Modular contracting is one of many approaches that may be used by Federal Agencies to acquire major IT systems. It may be achieved by a single procurement, or multiple procurements, but is intended to ensure that the government is not obligated to purchase more than one module at a time. Modular contracting is intended to balance the government's need for fast access to rapidly changing technology and incentivized contractor performance, with stability in program management, contract performance and risk management. Analysis of relevant laws, regulations, and studies, etc., indicate that modular contracting provides a significant opportunity to help remedy many systemic IRM and acquisition problem areas. Its beneficial application, however, introduces a number of management and cultural challenges requiring increased attention to areas such as Agency architecture and standards, system integration, modular interoperability, program management and configuration control, and innovative contracting techniques. Federal Agencies that can effectively meet and manage these challenges will be able to incrementally address complex IT objectives thereby significantly increasing the likelihood of achieving their program objectives.