A project manager is initiating an agile project that includes external components from vendors. One vendor cannot deliver its component incrementally or collaboratively. How should the project manager handle this?

The correct approach is to integrate the vendor's component using a different method while maintaining the overall agile framework for the rest of the project. This is known as a hybrid approach, where different components or phases of a project utilize different methodologies based on their specific requirements and constraints. The vendor's inability to work incrementally or collaboratively doesn't negate the benefits of agile for the internal team. Requesting the sponsor to replace the vendor might be disruptive and costly, especially if the vendor is critical or unique. Asking the PMO to abandon agile is an overreaction and negates the benefits of agile for the rest of the project. Moving the component to be addressed after agile work is finished could delay critical functionality and is not a practical solution for integrated systems.