Market testing, involves the Contractor retendering certain Services to determine the market price of those Services. The Contract Management Team will need to decide in advance which of the Services should undergo market testing, based on the list of Services in the definition of Market Tested Services46. Any Service not Market Tested is subject to benchmarking (see Section 5.6.3).
The market testing section in the WIDP Contract (Clause 34) is complex. It requires the Authority to work with the Contractor at the initial scoping stage before the Contractor invites and evaluates tenders. The Authority is entitled to ask the Contractor to share with it the tenders received, but can only veto the choice of tenderer if that tenderer has committed a Prohibited Act. Market testing can lead to an entirely new organisation performing the role of the relevant Sub-contractor.
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46 Typical examples include the cost of disposal of Bottom Ash, Fly Ash, CLO and SRF, haulage costs, landfill gate fees for untreated waste, the cost of treating ad hoc waste and CA site management fees.