Benchmarking

A comparison of cost of an item or service against the market price for that item or service.
In the context of government-pay PPPs with a relevant component of “soft services” (for example, in health PPPs, schools, and so on), benchmarking is used as a method to calculate price adjustments to the service payments based on a review of the market price of such services (for example, comparing the costs of the private partner or their contractors with the current market price of those soft services). Benchmarking is an alternative for “value testing”, the objective of which is to test the actual level of costs of the soft services against the market
8718,Best And Final Offer (BAFO)»