Common use of Benchmarking Review Clause in Contracts

Benchmarking Review. Commencing *** Allegheny may *** engage the services of an independent third party (a “Benchmarker”) to compare the quality and cost of a Tower or the Services as a whole, as applicable, against the quality and cost of other well managed service providers performing similar services to determine whether Allegheny is receiving from Service Provider pricing and levels of service that are competitive with market rates, prices and service levels, given the nature, volume and type of Services provided by Service Provider hereunder (“Benchmarking”). The benchmarker shall be engaged on terms consistent with this Section 11.10 and otherwise acceptable to Allegheny, provided that Service Provider shall have an opportunity to review and comment on the proposed agreement. If the Service Provider believes the agreement in the form proposed by Allegheny is inconsistent with this Section 11.10 such that the benchmarking is likely to be skewed in favor of Allegheny, Service Provider may submit the issue to dispute resolution pursuant to Section 19. *** In making this comparison, the Benchmarker shall consider the following factors, and such other factors as it deems appropriate under the circumstances, and adjust the prices as and to the extent appropriate: (A) whether supplier transition and transformation charges are paid by the customer as incurred or amortized over the term of the agreement or the manner in which such transition and transformation charges are invoiced and paid; (B) the extent to which supplier pricing includes the purchase of the customer’s existing assets; (C) the extent to which supplier pricing includes the cost of acquiring future assets; (D) the extent to which this Agreement calls for Service Provider to provide and comply with unique Allegheny requirements; and (E) whether Service Taxes are included in such pricing or stated separately in supplier invoices.

Appears in 1 contract

Sources: Professional Services Agreement (Allegheny Energy, Inc)

Benchmarking Review. Commencing *** Allegheny may *** During the course of the Contract, beginning not less than eighteen (18) months after the Commencement Date and no more than once, DIR may, at DIR’s expense and subject to this Section, engage the services of an independent third party (a "Benchmarker") to compare the quality and cost of a Tower or the Services as a whole, as applicable, managed services rates for application development services against the quality managed services, contemporaneous rates for the same roles and cost levels of other well managed service providers representative suppliers performing similar application development services to determine whether Allegheny DIR is receiving from Service Provider Successful Respondent pricing and levels of service that are is competitive with market rates, prices rates and service levelsprices, given the nature, volume and type of application development Services and Service Levels provided by Service Provider Successful Respondent hereunder ("Benchmarking"). The benchmarker Prior to commencement of such a comparison, Successful Respondent and DIR shall be engaged on terms consistent with this Section 11.10 and otherwise acceptable to Alleghenyagree in writing upon the number of representative suppliers, provided characteristics that Service Provider shall have an opportunity to review and comment on the proposed agreement. If the Service Provider believes the agreement in the form proposed by Allegheny is inconsistent with this Section 11.10 such that the benchmarking is likely suppliers to be skewed in favor included must have, and the other details and metrics of Allegheny, Service Provider may submit the issue to dispute resolution pursuant to Section 19comparison. *** In making this comparison, the Benchmarker shall consider a minimum of four (4) comparable transactions and all shall have state agency or department clients, the time period of the compared pricing shall be the same, and shall further consider the following factors, factors and such other factors as it deems appropriate under normalize the circumstances, and adjust the prices pricing data as and to the extent appropriate: : (Ai) whether supplier transition transition, transformation, and transformation other charges are paid by the customer as incurred or amortized over the term a period of the agreement or the manner in which such transition and transformation charges are invoiced and paid; time; (Bii) the extent to which supplier pricing includes the purchase of the customer’s 's existing assets; assets or assumption of any agreements. (Ciii) the extent to which supplier pricing includes the cost of acquiring future assets; ; (Div) the extent to which the comparable supplier is working within a Multi-Sourcing Services Integrator (MSI) model; (v) the extent to which this Agreement calls for Service Provider Successful Respondent to provide and comply with unique Allegheny DIR requirements; and ; (Evi) whether Service Taxes taxes are included in such pricing or stated separately in supplier invoices; (vii) project staff experience, level and roles; (viii) the restrictions related to location of the delivery of the Services; (ix) differences in the volumes of the services being compared; (x) applicability of service levels, and (xi) material differences in terms and conditions and/or risk.

Appears in 1 contract

Sources: Master Services Agreement