Product Performance Agreement Guide
Abstract
Product Performance Agreements (PPAs) are required to be considered, for weapon system production contracts, by title 10 section 2403 of the United States Code. The objective of a PPA is to deliver an effective and available weapon system to the Combat Commander by providing the system manufacturer with a suitable incentive to assume increased responsibility for post delivery performance. PPAs normally responsibility for post delivery performance. PPAs normal provide financial incentives -- positive and negative -- in order to motivate the contractor to deliver reliable and maintainable products. The Government should not be paying a second time for performance we reasonably expected to achieve under the basic contract. Actually the PPA provides specification enforcement when system field performance is below what was required. Pricing the PPA is used to assess cost effectiveness and to monitor the expected cost increases due to the contractor's additional risk. The objective of this guide is to provide the acquisition team with basic information about the PPA process.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1985
- Accession Number
- ADA236724