PERFORMANCE-BASED BUSINESS ENVIRONMENT

Acquisition strategies should use a performance-based business environment (PBBE) approach to enable government customers and contractor suppliers to jointly capitalize on commercial process efficiencies to Improve acquisition and sustainment processes. The PBBE shall be structured to:

• Convey product definition to Industry In performance terms.
  
  
• Use systems engineering and management practices, including affordability, integrated product and process development, and support, to fully integrate total life-cycle considerations.
  
  
• Increase emphasis on past performance.
  
  
• Motivate process efficiency and effectiveness up and down the entire supplier base (i.e., primes, subcontractors and vendors) through the use of contractor-chosen commercial products, practices and processes.
  
  
• Encourage life-cycle risk management as opposed to risk avoidance.
  
  
• Simplify acquisition and product support methods by transferring tasks to industry where cost effective, risk-acceptable commercial capabilities exist.
  
  
• Use performance requirements or conversion to performance requirements during reprocurement of systems, subsystems, components, spares and services beyond the initial production contract award and during postproduction support to facilitate technology insertion and modernization of operational weapons systems.