Performance Based Payments (PBP) Guide - The Better Buying Power Initiative

This is a web-enabled version of the Department of Defense Performance Based Payments (PBP) Guide. 

Contents

Introduction

Chapter 1. Contract Financing Basics – FAR Part 32

1. What is Contract Financing
2. Purpose and Scope of Contract Financing
3. Order of Preference
4. Customary Contract Financing
5. A Contract Cannot Use Both Progress Payments and PBPs
6. Changing Financing Methods

Chapter 2. Performance-Based Payments Basics

1. What are PBPS?
2. PBP Limitation

Chapter 3. Why Use PBPs? Expected Advantages

1. Expected Advantage: Enhanced Technical and Schedule Focus
2. Expected Advantage: Reduced Cost of Oversight and Administration
3. Expected Advantage: Broadened Contractor Participation
4. Expected Advantage: Potentially Improved Cash Flow for the Contractor
5. Win-Win: Lower Price in Exchange for Better Cash Flow
6. The PBP Analysis Tool

Chapter 4. Determining When PBPs Are Practical

1. General Consideration
2. Production Contracts
3. Service Contracts
4. Development Contracts
5. Undefinitized Contract Actions (UCAs)
6. Competitive Solicitations

Chapter 5. PBP Planning

1. PBP Steps
2. Contractor Personnel
3. Government Personnel
   1. Defense Contract Management Agency (DCMA)
   2. Defense Contract Audit Agency (DCAA)
   3. Defense Finance and Accounting Service (DFAS)

Chapter 6. Identifying PBP Events

Chapter 7. Establishing Completion Criteria For PBP Events

1. What is “Completion,” and Is There Any Flexibility?
2. Be Aware of Unintended Consequences

Chapter 8. The Importance of the Expenditure Profile

1. Evaluating the Expenditure Profile

Chapter 9. Establishing PBP Event Values

1. "Value" of a PBP Event
2. Special Considerations with Severable Events

Chapter 10. PBP Contract – Special Provision

Chapter 11. Processing PBPs

1. Liquidation
2. Title to Property Acquired or Produced by Contractors

Chapter 12. Contract Changes and Modifications

Appendix. PBP Evaluation Checklist