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News | Oct. 16, 2024

Reimagining Contracts in the Digital Era

By Bridget Lynch

ABERDEEN PROVING GROUND, Md. (October 15, 2024) – Agile. It’s defined as the ability to move quickly and easily, and one of the “buzz” words heard around the globe as the Army continues to modernize. Commanders must be agile in multiple ways. Physically – to shoot, move and defend over their adversaries; and mentally – to learn, understand and lead their troops. To be agile is a critical quality you want to find in a Soldier, but what about in technology?

In today’s digital era, technology is changing at warp speed, and we depend on it to function. For our Soldiers, technology can make all the difference on the battlefield. Ensuring they are equipped with the right hardware and software is critical to maintaining a competitive advantage over our adversaries.

Through the creation of the Digital Capabilities Contracting Center of Excellence (DC3oE) at Army Contracting Command - Aberdeen Proving Ground (ACC-APG), the Army is engaging earlier in the capabilities process by examining initial requirements and reimagining contracting processes that account for software success.

Take for example the routine software updates that are installed on a cell phone. There is always another version available, another bug needing to be fixed. In a perfect world, they are as easy as a click of a button, but if the physical equipment can’t support the software installation, you are left with a piece of hardware that is essentially obsolete.

Hardware and software are equal players in warfighting, and having the right combination will enable commanders to defeat their enemies in the information environment just as effectively as in physical combat.

“The DC3oE will help us reimagine how we do contracts for software capabilities, making it a standard way of doing business. We must change our thought process to create contracts that are agile in nature, and with the right aligned incentives and disincentives,” said Danielle Moyer, ACC-APG executive director and senior contracting official.

Under this Army-wide directive, the DC3oE is responsible for new contracts, and select existing contracts, for software capabilities executed by Program Executive Office Enterprise; PEO Intelligence, Electronic Warfare & Sensors (PEO IEW&S); PEO Command, Control, Communications, and Network (PEO C3N); and PEO Simulation, Training, and Instrumentation (PEO STRI); as well as select contracts for the Army Commands, Army Service Component Commands, and Direct Reporting Units.

Since its official designation by the Secretary of the Army in March of 2024, and achieving initial operating capability in June, the DC3oE continues to make significant progress in enhancing software contracting processes across the Army by turning its focus on building expertise among contracting officers and training to familiarize them with digital transformation concepts.

There are several initiatives in place to upskill the workforce through education, such as leveraging the “Digital Foundations” courses, created by the Army Director of Acquisition Career Management, and developing a workshop on contracting for modern software development in coordination with Defense Acquisition University.

Additionally, the development of several playbooks, covering modular contracting, contract structure, and source selection and evaluation, will assist in the development and execution of contracting strategies, requests for information, requests for proposal, contracts, and agreements.

Implementing specialized training strengthens contracting officers by teaching them to think differently when procuring software, and to consider critical components such as cybersecurity and vulnerabilities, when writing agile contract requirements. Creating this centralized expertise within the workforce ultimately enables streamlined and expedited timelines for contract development.

The DC3oE continues to make significant progress with mission partners towards agile and effective contract implementation. Take the contract award for the Integrated Personnel and Pay System - Army (IPPS-A) Army Military Payroll (AMP) as an example.

This contract supports the Army’s Program Executive Office Enterprise in developing and producing a total AMP solution with agile software development methodology for all Active, Reserve, and National Guard Army components, and was the first major effort the DC3oE advisory group provided guidance on.

Working closely alongside PEO Enterprise, the group deviated from traditional contracting methods using formal source selection procedures and added an innovative Expedited Delivery/ Enhanced Performance Contract Line Item Number, or CLIN, tied objectively to metrics to incentivize performance.

“The AMP contract takes an innovative approach to incentives that drive contract behavior to deliver quality software rapidly. This model will be used for future IPPS-A Increment II contracts and hopefully across the Army,” said Lt. Col. Ryan Martin, product manager for IPPS-A Increment II.

This innovative approach provided the best support to the mission partner and the warfighter, which resulted in awarding a $350 million requirement in under 180 days.

“We appreciate the DC3oE for developing a modular contracting approach that provides the Army with greater flexibility but with enough structure to incentivize great performance,” said Col. Matthew Paul, project manager for IPPS-A. “The AMP contract enables the Army to leverage industry’s agile best practices to deliver new capabilities faster and in smaller increments.”

As the DC3oE evolves, there are plans to integrate industry contracting support, making collaboration and transparency with industry increasingly important. With this goal in mind, the DC3oE is already actively engaged with industry, seeking to learn and understand how to create better partnerships while also maintaining a competitive environment.

“Our team has participated in over 160 individual engagements with our industry partners on a wide range of subjects to improve how we do contracts. We’ve hosted two digital Advanced Planning Briefings for Industry (APBI) and will continue to host similar events to maintain an open dialogue with our industry partners,” said Rob Perry, chief of strategic initiatives for ACC-APG and lead for the DC3oE advisory group.

“This communication is going to help both the Army and industry as we develop requirements and seek solutions on complex software requirements. I see it as a win-win,” Perry said.

The creation of the DC3oE at ACC-APG signifies a commitment to reimagining contracting processes for digital requirements. With eyes set on reaching full operating capability in December of 2024, ACC-APG continues to work with mission partners in identifying software development actions and utilizing assessments and lessons learned as it forges ahead in improving and streamlining contracting for software.

“In this age of digital transformation, it is our job to deliver the best capabilities to our Soldiers. We never want to enter a fair fight. We always want to have the advantage. Change is never easy but understanding and believing in the ‘why’ makes it all worth it,” Moyer said.

SOURCE: Army.mil, https://www.army.mil/article/280498/reimagining_contracts_in_the_digital_era