The National Geospatial-Intelligence Agency is shaking up how it buys IT services like software engineering, infrastructure and IT operations and sustainment, starting with a new $34 million contract.

The contract, awarded Dec. 1 to Octo Consulting Group, based in McLean, Virginia, supports NGA's agile web presence (AWP) program, which develops and maintains the agency's websites. The agreement "emphasizes the purchase of development capacity instead of the typical delivery against finite, fixed requirements," according to a release from Octo.

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The idea is to provide flexibility within the contract terms to improve efficiency and cost savings, and to ensure the products and services meet mission requirements.

"This type of contract structure allows NGA to see what it is paying for as progress is made, ensuring that the deliverables meet the needs of the agency and fulfill its mission requirements," Octo CEO and founder Mehul Sanghani said in the release. "We wouldn't be surprised if more agencies look towards this approach moving forward as they seek ways to reduce wasteful spending and keep both agencies and contractors on the same page on critical projects."

Octo is collaborating with NGA on the AWP program via a development environment launched within Amazon's GovCloud.

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