The basic concept of modular contracting is to replace a single, all-encompassing, multiyear contract with a series of project contracts or orders. Apart from its other virtues, modular contracting is ideally suited for the current state of data processing technology. The disparate elements of the metacomputer are available separately. You can weave them into a single system. As each increment is added, the value of the others ideally increases exponentially, obeying the new laws of the networked economy.
Modular contracting has several programmatic strengths, too.
Generally, several smaller acquisitions are easier to manage than one huge one. The modular approach seems to guide participants naturally into thinking through more of the important issues. Similarly, defining the increments requires that a large program be broken down into its logical parts. Problems are smaller to begin with, and they are addressed one by one. Each increment includes delivery, implementation, and testing.