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A Key Performance Parameter is an attribute or capability considered so essential to a defense system that it must be achieved for the system to be acceptable. KPPs sit at the top of the requirements hierarchy: a program may track hundreds of requirements, but only a small set are designated KPPs because they define whether the system can do its job at all.
KPPs are usually stated as two values. The threshold is the minimum acceptable level, below which the capability has little operational value. The objective is the desired level, the point beyond which more performance is not worth the cost. The contractor's job is to deliver at least the threshold while managing cost and schedule toward the objective where it makes sense.
Because KPPs are tied to the validated operational requirement, missing a threshold is not a minor variance; it can trigger a formal program review and, in serious cases, restructuring or cancellation. For a contractor, that makes the KPPs the requirements you protect above all others in design trades and in your test planning. In a proposal, showing exactly how your solution meets each KPP, with evidence, is often the difference between a credible bid and an also-ran.
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