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Numerous studies have provided evidence that performance based logistics (PBL) can control cost and improve performance. The success—and failure—of PBL strategies suggest the need to position the PBL research domain into a fabric of theory. Just as engineering theories predict the reliability of a new armored vehicle, economic and business theories provide a framework that explains the efficacy of PBL. This article describes the underlying theoretical fabric of PBL. Armed with a framework grounded in theory, senior leaders can make science-based decisions to explain, predict, refine, and advocate for affordability-enhancing, life-cycle governance structures by leveraging the critical success factors of PBL.