[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR39.103]



[Page 769-770]

 

            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.



[[Page 770]]



    (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 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]