Benchmarking will only apply in the limited circumstances set out in the Contract. It involves the Contractor comparing the costs of its Sub-contractors providing certain Services against a reasonable benchmark.
Under the WIDP Contract (Clause 34.4) the Authority is required to cooperate in this exercise, with a view to agreeing with the Contractor its financial impact in line with the requirements of the Contract. The Authority should undertake it own due diligence of the information provided by the Contractor, which may require specialist advice. Unlike market testing, benchmarking cannot change the identity of the Sub-Contractor providing the benchmarked Service.