Milestone Payments – Strategic Institute for Innovation in Government …

OT milestone payments are not to be confused with FAR performance-based payments (PBP). FAR PBP’s were introduced in 1996 a few years after OT’s pioneered milestone payments. Unlike OT milestone payments, which have multiple potential functions, PBP’s are considered only a method of financing a project under FAR.

https://strategicinstitute.org/other-transactions/milestone-payments/