[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR39.103]

[Page 745-746]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 39_ACQUISITION OF INFORMATION TECHNOLOGY--Table of Contents
 
                          Subpart 39.1_General
 
Sec.  39.103  Modular contracting.

    (a) This section implements Section 5202, Incremental Acquisition of 
Information Technology, of the Clinger-Cohen Act of 1996 (Public Law 
104-106). Modular contracting is intended to reduce program risk and to 
incentivize contractor performance while meeting the Governments need 
for timely access to rapidly changing technology. Consistent with the 
agency's information technology architecture, agencies should, to the 
maximum extent practicable, use modular contracting to acquire major 
systems (see 2.101) of information technology. Agencies may also use 
modular contracting to acquire non-major systems of information 
technology.
    (b) When using modular contracting, an acquisition of a system of 
information technology may be divided into several smaller acquisition 
increments that--
    (1) Are easier to manage individually than would be possible in one 
comprehensive acquisition;
    (2) Address complex information technology objectives incrementally 
in order to enhance the likelihood of achieving workable systems or 
solutions for attainment of those objectives;
    (3) Provide for delivery, implementation, and testing of workable 
systems or solutions in discrete increments, each of which comprises a 
system or solution that is not dependent on any subsequent increment in 
order to perform its principal functions;
    (4) Provide an opportunity for subsequent increments to take 
advantage of any evolution in technology or needs

[[Page 746]]

that occur during implementation and use of the earlier increments; and
    (5) Reduce risk of potential adverse consequences on the overall 
project by isolating and avoiding custom-designed components of the 
system.
    (c) The characteristics of an increment may vary depending upon the 
type of information technology being acquired and the nature of the 
system being developed. The following factors may be considered:
    (1) To promote compatibility, the information technology acquired 
through modular contracting for each increment should comply with common 
or commercially acceptable information technology standards when 
available and appropriate, and shall conform to the agency's master 
information technology architecture.
    (2) The performance requirements of each increment should be 
consistent with the performance requirements of the completed, overall 
system within which the information technology will function and should 
address interface requirements with succeeding increments.
    (d) For each increment, contracting officers shall choose an 
appropriate contracting technique that facilitates the acquisition of 
subsequent increments. Pursuant to Parts 16 and 17 of the Federal 
Acquisition Regulations, contracting officers shall select the contract 
type and method appropriate to the circumstances (e.g., indefinite 
delivery, indefinite quantity contracts, single contract with options, 
successive contracts, multiple awards, task order contracts). 
Contract(s) shall be structured to ensure that the Government is not 
required to procure additional increments.
    (e) To avoid obsolescence, a modular contract for information 
technology should, to the maximum extent practicable, be awarded within 
180 days after the date on which the solicitation is issued. If award 
cannot be made within 180 days, agencies should consider cancellation of 
the solicitation in accordance with 48 CFR 14.209 or 15.206(e). To the 
maximum extent practicable, deliveries under the contract should be 
scheduled to occur within 18 months after issuance of the solicitation.

[63 FR 9068, Feb. 23, 1998]