Once the contract’s PBP structure has been established, it may become necessary to adjust it to reflect subsequent changes or contract modifications. The required adjustments can take the form of adding new PBP events or modifying the definition, value, or timing of existing events. The particular circumstances of the contract and the modification will determine which method is the best to use. In general, the parties should seek to use whichever is administratively most expedient and maintains the same Win-Win financial arrangement as the original contract. Because each contract’s PBP structure is unique, those changes will have to be made by a contract modification.
Remember that the payment office responsible for the contract must be kept fully informed about changes to the PBP structure. Without up-to-date and complete contract information, that office will be unable to process the payments properly. Unnecessary delays in payment or erroneous payment may result if the paying office record is not properly maintained. Whenever changes are made to a contract's PBP structure, thePBP schedule in the contract must be revised and quickly distributed to all parties having a role in making or overseeing payments.
