For large 3PL partnerships, performance measures are usually linked to the legal contract between the 3PL provider and its client, to determine the performance incentives and non-performance penalties. In any of such contracts, it is important that the associated penalties and incentives stated are fair for both parties involved. In the paper by Lim [58], he proposed a game-theoretical model to find an optimal contract, which includes penalty and gain-sharing incentives, which will be accepted by the 3PL provider and induce the 3PL provider to truthfully reveal his capability. However, from the list of performance measures given above, it is obvious that the performance measures are rather numeric in nature and does not directly relate to the true bottom line, dollars and cents. How then can the penalties and incentives be valued if the performance measures are not measured in dollars and cents?