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In many cases the ultimate review of service is to tender or re-tender the services, formally and legally seek the most “economically advantageous” price. Within PFI contracts the process is referred to as “Market Test” The services to be tested and frequency will be stated within the contract and whether an alternative method such as Benchmarking may be chosen.
Both Domestic & Acute wave 1 case studies incorporate Service tendering
Domestic was a single service tender of cleaning which involved the development of new Service specifications Preparation of details to advertising in the European Journal as well as development of tender assessment process. This resulted in contacted services being brought in-house
Acute wave 1 was a PFI Market Test of Hotel Services and involved supporting the development of the tender documentation for the SPV and contribution to the service evaluation of bids received. Although the process was correct the final price to the client was to high resulting in direct negotiation with the preferred supplier to significantly reduce their tendered price.