diff --git a/.github/workflows/deploy-sandbox.yml b/.github/workflows/deploy-sandbox.yml
index 8b8b4760d..fa60722e4 100644
--- a/.github/workflows/deploy-sandbox.yml
+++ b/.github/workflows/deploy-sandbox.yml
@@ -17,7 +17,7 @@ on:
 permissions:
   pull-requests: write
   id-token: write # This is required for requesting the JWT
-  contents: read  # This is required for actions/checkout
+  contents: read # This is required for actions/checkout
 
 jobs:
   validate_inputs:
diff --git a/infrastructure/lambda-bulk-upload.tf b/infrastructure/lambda-bulk-upload.tf
index 45e5b994a..22de62c49 100644
--- a/infrastructure/lambda-bulk-upload.tf
+++ b/infrastructure/lambda-bulk-upload.tf
@@ -42,10 +42,10 @@ module "bulk-upload-lambda" {
     APIM_API_URL               = data.aws_ssm_parameter.apim_url.value
   }
 
-  is_gateway_integration_needed  = false
-  is_invoked_from_gateway        = false
-  lambda_timeout                 = 900
-  reserved_concurrent_executions = local.bulk_upload_lambda_concurrent_limit
+  is_gateway_integration_needed = false
+  is_invoked_from_gateway       = false
+  lambda_timeout                = 900
+  manage_reserved_concurrency   = false
 
   depends_on = [
     module.ndr-bulk-staging-store,
diff --git a/infrastructure/modules/lambda/main.tf b/infrastructure/modules/lambda/main.tf
index 5275fd188..28d28475e 100644
--- a/infrastructure/modules/lambda/main.tf
+++ b/infrastructure/modules/lambda/main.tf
@@ -1,4 +1,13 @@
+# Migrate existing resources to indexed form
+moved {
+  from = aws_lambda_function.lambda
+  to   = aws_lambda_function.lambda[0]
+}
+
+# Lambda with Terraform-managed concurrency (default - keeps existing resource name)
 resource "aws_lambda_function" "lambda" {
+  count = var.manage_reserved_concurrency ? 1 : 0
+
   # If the file is not in the current working directory you will need to include a
   # path.module in the filename.
   filename                       = data.archive_file.lambda.output_path
@@ -41,6 +50,59 @@ resource "aws_lambda_function" "lambda" {
   ]
 }
 
+# Lambda with externally-managed concurrency (opt-in with new resource name)
+resource "aws_lambda_function" "lambda_unmanaged" {
+  count = var.manage_reserved_concurrency ? 0 : 1
+
+  # If the file is not in the current working directory you will need to include a
+  # path.module in the filename.
+  filename                       = data.archive_file.lambda.output_path
+  function_name                  = "${terraform.workspace}_${var.name}"
+  role                           = aws_iam_role.lambda_execution_role.arn
+  handler                        = var.handler
+  source_code_hash               = data.archive_file.lambda.output_base64sha256
+  runtime                        = "python3.11"
+  timeout                        = var.lambda_timeout
+  memory_size                    = var.memory_size
+  reserved_concurrent_executions = var.reserved_concurrent_executions
+  kms_key_arn                    = aws_kms_key.lambda.arn
+
+  ephemeral_storage {
+    size = var.lambda_ephemeral_storage
+  }
+
+  environment {
+    variables = var.lambda_environment_variables
+  }
+
+  vpc_config {
+    subnet_ids         = var.vpc_subnet_ids
+    security_group_ids = var.vpc_security_group_ids
+  }
+
+  layers = local.lambda_layers
+
+  lifecycle {
+    ignore_changes = [
+      # These are required as Lambdas are deployed via the CI/CD pipelines
+      source_code_hash,
+      layers,
+      # Allow external management of concurrency
+      reserved_concurrent_executions
+    ]
+  }
+
+  depends_on = [
+    aws_iam_role_policy_attachment.default_policies,
+    aws_iam_role_policy_attachment.lambda_execution_policy
+  ]
+}
+
+# Local value to reference the active lambda resource
+locals {
+  lambda = var.manage_reserved_concurrency ? aws_lambda_function.lambda[0] : aws_lambda_function.lambda_unmanaged[0]
+}
+
 resource "aws_cloudwatch_log_group" "lambda_logs" {
   count             = contains(var.persistent_workspaces, terraform.workspace) ? 0 : 1
   name              = "/aws/lambda/${terraform.workspace}_${var.name}"
@@ -128,14 +190,14 @@ resource "aws_api_gateway_integration" "lambda_integration" {
   http_method             = each.value
   integration_http_method = "POST"
   type                    = "AWS_PROXY"
-  uri                     = aws_lambda_function.lambda.invoke_arn
+  uri                     = local.lambda.invoke_arn
 }
 
 resource "aws_lambda_permission" "lambda_permission" {
   count         = var.is_invoked_from_gateway ? 1 : 0
   statement_id  = "AllowAPIGatewayInvoke"
   action        = "lambda:InvokeFunction"
-  function_name = aws_lambda_function.lambda.arn
+  function_name = local.lambda.arn
   principal     = "apigateway.amazonaws.com"
   # The "/*/*" portion grants access from any method on any resource
   # within the API Gateway REST API.
diff --git a/infrastructure/modules/lambda/outputs.tf b/infrastructure/modules/lambda/outputs.tf
index 64697f46f..055bd58e2 100644
--- a/infrastructure/modules/lambda/outputs.tf
+++ b/infrastructure/modules/lambda/outputs.tf
@@ -1,21 +1,21 @@
 output "invoke_arn" {
-  value = aws_lambda_function.lambda.invoke_arn
+  value = local.lambda.invoke_arn
 }
 
 output "qualified_arn" {
-  value = aws_lambda_function.lambda.qualified_arn
+  value = local.lambda.qualified_arn
 }
 
 output "function_name" {
-  value = aws_lambda_function.lambda.function_name
+  value = local.lambda.function_name
 }
 
 output "timeout" {
-  value = aws_lambda_function.lambda.timeout
+  value = local.lambda.timeout
 }
 
 output "lambda_arn" {
-  value = aws_lambda_function.lambda.arn
+  value = local.lambda.arn
 }
 
 output "lambda_execution_role_name" {
@@ -24,4 +24,4 @@ output "lambda_execution_role_name" {
 
 output "lambda_execution_role_arn" {
   value = aws_iam_role.lambda_execution_role.arn
-}
\ No newline at end of file
+}
diff --git a/infrastructure/modules/lambda/variable.tf b/infrastructure/modules/lambda/variable.tf
index 6a5f9553d..3f540997a 100644
--- a/infrastructure/modules/lambda/variable.tf
+++ b/infrastructure/modules/lambda/variable.tf
@@ -85,6 +85,18 @@ variable "reserved_concurrent_executions" {
   default     = -1
 }
 
+variable "manage_reserved_concurrency" {
+  description = <<-EOT
+    Whether Terraform should manage reserved_concurrent_executions. 
+    - true (default): Terraform enforces concurrency value on every deploy. Any external changes will be reset.
+    - false: Terraform ignores concurrency after creation, allowing external management (EventBridge, controller lambdas).
+    
+    Note: When false, reserved_concurrent_executions is set initially but then ignored. External systems can freely modify it.
+  EOT
+  type        = bool
+  default     = true
+}
+
 variable "default_policies" {
   description = "List of default IAM policy ARNs to attach to the Lambda execution role."
   type        = list(string)