In materiel development, KPPs determine the level of review and who will make milestone decisions.

• A. KPPs directly approve the total program budget without review
• B. KPPs determine the level of review and who will make milestone decisions
• C. KPPs determine the life-cycle cost baseline
• D. KPPs are not used in milestone decisions

Answer: (B)

Key Performance Parameters establish the essential thresholds a program must meet and directly shape how reviews are conducted and who has authority at each milestone. When KPPs define the critical performance goals, they set the criteria for the level of scrutiny required and identify the decision authority responsible for approving progression. If KPPs are met or at acceptable risk, the appropriate milestone review proceeds at the assigned level with the designated decision maker; if not, the review level can tighten and the decision authority may shift to higher levels. Budget approval, lifecycle cost baselines, and similar financial decisions are handled through separate cost management processes, not by KPPs themselves. So, KPPs play a direct role in milestone decisions and the review structure, which is why this statement is correct.