15.3  Benchmarking

The benchmarking exercise will involve:

(a)  identifying an efficient alternative service provider;

(b)  the determination of an efficient alternative service provider cost, on the basis that an efficient alternative service provider will:

(i)  have the resources, expertise and financial standing sufficient to reliably provide the Reviewable Services;

(ii)  achieve a profit level consistent with the market for comparable services; and

(iii)  optimise the use of its resources in providing the Reviewable Services to achieve the least cost mix of inputs consistent with providing the Reviewable Services to the standard required under the project agreement;

(c)  adjustment of the determined amount to reflect:

(i)  the terms and conditions associated with the delivery of the services under the project agreement and relevant sub-contract; and

(ii)  volumes inherent in the Base Case Financial Model (given the focus of the exercise is on prices and not volumes); and

(d)  adjusting the service fee in accordance with section 15.6 below.