This manuscript reviews and synthesizes the product service system, lifecycle affordability, and performance-based contracting (PBC) literature across supply chain management, operations management, and logistics discipline. The study is based on 128 peer-reviewed articles published between 2005 and 2023 in journals related to the supply chain, logistics, and operations management field. The study proposes a framework for lifecycle affordability (LCA) and key aspects of performance-based strategy design and management, performance specification, and cost elements. This study is a robust literature review of lifecycle affordability and performance-based contracting. It proposes a framework to assist in business-to-business managerial decision-making to reduce lifecycle costs.