Modular contracting is all the rage now. It promises to reduce risk, add flexibility, and deliver great software, faster. But merely breaking a $500 million procurement into smaller procurements isn’t going to solve your problem. Any complex project contains a lot of uncertainty. To be successful, your program needs to be responsive to what you learn as you go and update the direction based on what is discovered. Using multiple, small contracts does not necessarily guarantee this result, but you can build better products and get better at incorporating new information as you go by: Using short option periods instead of independent contracts, and fluidly moving between the product phases of discovery, scoping, prototyping and build-out.
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