The Japan Maritime Self Defense Force (JMSDF) will initiate its first performance-based logistics (PBL) contract in fiscal year 2010. This first contract is an experiment in contracting with private firms to provide direct support for military forces. Performance-based logistics is a very new concept for the Japan Self Defense Force, and many policy issues remain unaddressed. The purpose of this Master's project is to explore the critical strategic and operational risks and benefits that the JMSDF should consider concerning outsourcing public functions. This project identifies aspects of the experiences of the United States with performance-based logistics and how the JMSDF might learn from these experiences in order to emulate successes where conditions allow and avoid critical mistakes and failures. This study analyzes publicly available literature and documentation on performance-based logistics contracting, as well as contractor logistics support contracting, to develop a summary of the U.S. experience with PBL. We analyzed 37 articles to summarize their findings and claims with regard to cost, performance, performance measurement, risk, information systems, appropriateness of a particular weapon system for PBL implementation, and organizational capability to evaluate, implement and manage a PBL contract.