Procurement Innovation Lab Tackles SaaS Acquisition Models

Published October 29, 2022

One of the main issues facing procurement modernization efforts is how to adapt commercial Software as a Service (SaaS) models for government consumption. SaaS cloud-delivered software solutions relieve the burden of buying and installing on-premise software and the associated costs and maintenance of hardware and data centers for individual agencies and offices.

SaaS subscription models do not easily translate to the Firm Fixed Price (FFP) contract model typically used by government agencies to compete and award contracts for supplies and services. SaaS models can vary widely with the inherent problem of finding a balance between pay-as-you-go flexibility and FFP requirements as identified by the Federal Acquisition Regulation.

The advantages of SaaS solutions, such as access to sophisticated applications and easy workforce mobilization have driven many agencies to seek new and innovative ways to structure contracts. The Department of Homeland Security Procurement Innovation Lab (PIL) tackles this question head-on by creating a framework allowing experimentation with innovative acquisition techniques to promote best practices.

Hear directly from the PIL and other industry leaders from Immigration and Customs Enforcement, Amazon Business, and Paperless Innovations in an upcoming panel discussion available via webinar on November 17, 2022.