4.20 In some cases, especially for the first benchmark, the option to go to market testing may not exist in the contract. Both parties may wish a solution based on benchmarking and believe it to represent the best value for money solution, but it may have proved difficult to achieve this through directly managed negotiation. In this case, the normal practice would be to invoke the agreed dispute resolution procedures.
4.21 If that situation arises, the Scottish Government FPU should be advised immediately so that the case can be monitored and, if necessary and in agreement with the parties, special arrangements put in place in an effort to facilitate an agreement.
Benchmarking - tips and pitfalls• Plan early - agree the process and have processes in place to resolve disputes e.g. a Principal's Group • Ensure required resources are available • Know the market and how costs have moved since the last benchmarking date • Identify comparable data sources early • Understand impact of potential conflicts of interest on accessing comparable data and be prepared to facilitate the process • Develop clear and objective evaluation criteria to demonstrate VfM |