Performance Based Contracting (PBC), also known as performance-based logistics (PBL) or performance-based acquisition, is a product support strategy used to achieve measurable performance outcomes, for example in the defense industry. A PBC approach focuses on developing strategic performance metrics and directly relating contracting payment to performance against these metrics. Common metrics include availability, reliability, maintainability, supportability and total cost of ownership. The primary means of accomplishing this are through incentivized, long-term contracts with specific and measurable levels of operational performance defined by the customer and agreed on by contracting parties. This stands in contrast to the traditional waterfall approach, where payment is related to compl