# Federal Agencies Favor Phased Modernization

Former IRS Commissioner Daniel Werfel argues that durable federal reform is more likely to come from staged improvements than disruptive organizational change. He emphasizes delivering measurable taxpayer value at each step while managing operational, security, and workforce risks. The discussion identifies no solicitation, award, funding, or procurement timeline, so it is management context rather than a current contracting opportunity.

- Contractors supporting federal IT modernization, AI, or organizational change can frame proposals around phased deployment, measurable outcomes, and risk controls, as these are the practices Werfel highlights.
- Procurement teams may use the argument to assess whether proposed changes can demonstrate value incrementally without compromising agency operations, security, or workforce capacity.
- The signals name no specific requirement or agency procurement; businesses should not treat the commentary as an announced opportunity or funding commitment.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Digital Infrastructure
**Published:** November 06, 2026

### Government Entities
- Internal Revenue Service (IRS)

### Key Quotes
> You have to figure out a way to show that these segments that you're moving are each delivering value for the taxpayer.
> — Daniel Werfel, former IRS commissioner

### Sources
- [
        Does taking a wrecking ball to government actually make it work better? - Federal News Network](https://federalnewsnetwork.com/reorganization/2026/11/does-taking-a-wrecking-ball-to-government-actually-make-it-work-better) - Federal News Network
- [
        We’ve all been living through 18 months of testing one theory of government reform in real time. Does taking a wrecking ball to government actually make it work better? - Federal News Network](https://federalnewsnetwork.com/podcast/federal-drive-with-terry-gerton-podcast/weve-all-been-living-through-18-months-of-testing-one-theory-of-government-reform-in-real-time-does-taking-a-wrecking-ball-to-government-actually-make-it-work-better) - Federal News Network