- The U.S. Army Contracting Command is leading initiatives to reform the branch’s software acquisition infrastructure, according to ACC Executive Director Danielle Moyer
- Moyer cited challenges including disparate contracts of identical products and the absence of a dedicated pricing framework
- The ACC plans to consolidate contracts of repeat software purchases as one of the solutions to their procurement issues
The U.S. Army is pursuing changes to its contracting approach to address speed and efficiency challenges in software procurement that stemmed from obsolete acquisition practices, Danielle Moyer, executive director of the Army Contracting Command, said during a Dcode session covered by GovCIO Media & Research.
According to Moyer, the command is focused on improving how software is purchased by consolidating contracts, adjusting contracting approaches and exploring new pricing strategies to create a more effective acquisition model.
What Are the Army’s Software Acquisition Challenges?
One of the Army’s key software acquisition challenges is the fragmented way commercial software purchases are managed across the service. Moyer explained that the Army frequently acquires identical commercial software products through numerous separate contracts, sometimes numbering in the dozens or hundreds, which makes it more difficult to track spending and limits the Army’s ability to negotiate more favorable terms. She highlighted Oracle as an example, noting that the ACC found 109 separate brand-name justification and approval documents associated with individual Oracle software purchases made by different Army organizations.
Moyer also noted that many existing Army procurement vehicles are not fit for commercial software purchasing. Although the service has implemented digital procurement marketplaces, several of these platforms still depend on multiple-award, indefinite-delivery/indefinite-quantity contracts that involve competitive bidding for each individual purchase. According to Moyer, this approach can create additional hurdles and limits the ability of commanders to acquire software with the same speed and simplicity available through commercial purchasing platforms.
When it comes to pricing, Moyer explained that because the Federal Acquisition Regulation does not provide a dedicated framework for software purchases, contracting officers do not have specific guidance for commercial software pricing or assessing software labor categories. As a result, cost evaluations can become complicated when specialized software professionals are compared against broader IT personnel, creating disagreements that may delay contract awards for emerging capabilities.
Moyer highlighted that the government’s evaluation process does not always account for the specialized expertise required for certain software roles, creating a disconnect between industry pricing models and government assessments. She added that contracting officers often manage hundreds of acquisition actions annually across a wide range of technology areas, limiting the ability to develop in-depth expertise for each specialized software market.
What Are the ACC’s Efforts to Improve Software Procurement?
Under the updated approach, the ACC is examining ways to streamline software acquisition activities and reduce inefficiencies associated with existing contracting structures.
Rather than maintaining separate agreements for the same software products with varying licensing conditions and pricing arrangements, the Army is moving toward greater enterprise-level contract consolidation for frequently purchased commercial software. Moyer said the effort is intended to create a more coordinated acquisition approach by bringing repeat software purchases under consolidated agreements.
To improve commercial software procurement vehicles, the ACC is developing a smart contracting tool aimed at creating the foundation for a more centralized and data-driven software acquisition model.
In terms of pricing models, the command is exploring outcome-based and value-based pricing models that focus on the operational benefits a technology provides rather than only examining its underlying cost components. Moyer emphasized that acquisition officials should consider the value delivered by a capability, including whether a new technology can replace multiple existing tools or significantly improve mission efficiency. She highlighted next-generation command software that reduced the time required to complete a task from 17 minutes to less than one minute as an example of the type of performance improvement that should influence procurement decisions.
Moyer noted that adopting this approach will require more than changes to policy and will involve training the contracting workforce to evaluate technology purchases through a value-focused perspective.
