Performance-Based Logistics is a strategy that optimizes total system availability while minimizing cost and logistics footprint. Trade-off decisions involving cost, useful service, and effectiveness shall consider corrosion prevention and mitigation. Sustainment strategies shall include the best use of public and private sector capabilities through government/industry partnering initiatives, in accordance with statutory requirements. 
“Program Mangers are required to develop and implement performance-based logistics strategies that optimize total system availability while minimizing cost and logistics footprint.” DoD Directive 5000.01
Contracting for performance based logistics is a multiple step process that can be applied to new, modified or legacy systems. The process is detailed on the web-based Performance-Based Agreement Toolkit as a best practice.
Performance-Based Logistics implementation strategies shall consider Public-Private Partnerships (PPP) to satisfy the core capabilities requirements of 10 U.S.C. 2464 “Core logistics capabilities” and the limitations on the performance of depot-level maintenance and materiel requirements contained in 10 U.S.C. 2466 “Limitations on the performance of depot-level maintenance of materiel”.
AcqLinks and References:
-  Defense Acquisition Guidebook (DAG) – Chapter 4
- Performance Based Logistics (PBL) Guidebook – 27 May 2014
- DoD Template for Application of TLCSM and PBL