I was at a conference for government contractors and the software systems we use to manage those programs. In the federal government agile is moving forward. Greater Accountability and Faster Delivery Through Modular Contracting.
During one of the session there was a quote that says it all about Agile Development
AGILE MEANS YOU'RE BEING PAID FOR DISCOVERING THE SCOPE OF THE PROJECT
This says it all. Agile is a powerful approach to software development in the commercial world. Agile in the government domain, encounters the Federal Acquisition Regulations (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS).
In these environments, Earned Value Management, the Six Business System Rules, and other procurement guidance define how work is performed. This is all being worked out, but the quote above did it for me!!