Federal Contracting Acronym
PBP
Performance Based Payment
Plain-English definition
Performance Based Payment is a federal contracting term used in acquisition policy, solicitations, or contract administration materials published under the FAR framework. In federal practice, Performance Based Payment connects to how contracting officers, program offices, and industry teams interpret requirements, document decisions, and execute awards. Authoritative context is typically found in FAR materials and agency supplements where applicable. Contractors should trace how PBP appears in the specific solicitation or contract rather than assuming uniform usage across agencies.
Why it matters
Understanding Performance Based Payment (PBP) reduces misalignment during proposal preparation, contract performance, and compliance reviews tied to acquisition obligations.
Where you will see it
SAM.gov notices, contract clauses and attachments, DoD forms and supply systems when applicable, and internal capture or program management documentation.
Example in context
During a bid review, the capture lead notes PBP in the solicitation, assigns a subject-matter owner to confirm requirements, and records the decision in the compliance matrix.