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Capability Acquisition & Sustainment Group

Performance Based Contracting

Performance Based Contracting (PBC) Centre of Excellence (CoE) was established in May 2013 to collect, refine and distribute PBC better practice across the contracting lifecycle by providing the following 4 services:
  1. Support through the delivery of direct supporting activities (e.g. drafting, workshops, evaluations and negotiation support etc.) or subject matter expertise input (e.g. documentation review, coaching/mentoring, etc).
  2. Guidance through the provision of PBC standards, methodologies, tools and knowledge repositories for the Capability Acquisition and Sustainment Group, and the wider Department of Defence.
  3. Training through PBC training and certification, skills assessments, team building and formalised roles (i.e. position description) using a 4 level PBC skills framework.
  4. Measurement through the capture, analysis and incorporation of lessons learnt across Defence and industry that increase the value of performance based contracts in Defence.

Sitting within the Supplier Analysis and Engagement Branch of the Australian Department of Defence, the PBC CoE has grown to become a world leader in providing PBC support, policy and research to Defence alongside other government clients and foreign governments. The PBC CoE membership on the Performance Based Logistics International Working Group serves to further enhance their ability to provide and shape world's best practice in this field.

The concept of using performance based contracts to ensure successful capability delivery has been a central part of Defence's procurement strategy for over a decade. Today approximately AUD $2 billion of Defence's spending is done under performance based contracts on over 200 active programs.

The following PBC factsheets are currently available:

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