performance-based logistics

Performance-based logistics (PBL) is a contract approach where the focus is on delivering results rather than just supplier activities. Instead of paying for parts or services upfront, the provider is responsible for ensuring that equipment operates effectively and meets specific performance standards over time. This encourages the supplier to proactively maintain and improve systems, reducing downtime and costs. PBL aligns the contractor’s incentives with the customer’s mission success, emphasizing outcomes like reliability and availability rather than the mere completion of scheduled tasks. This approach fosters more efficient, reliable, and cost-effective support for complex systems.