As part of the overall modernisation process, the Army needs to move ahead in transforming its logistics processes and hold contractors accountable to a performance based agreement. Performance-based agreements (PBA) serve as a baseline for determining the sustainment requirements for the warfighter during execution of operational plans and also serve to codify realistic expectations between the customer and the supplier in terms of level of support.
For example, the US Quadrennial Defense Review mandates the use of performance-based agreements between the US Department of Defense entities that are sources of supply and the customers at major command levels. This places a requirement on those parties to sign collaborative agreements that would employ a customer focussed supply chain