PIA 2734 Privatization and Contracting Out The Knowledge

PIA 2734 Privatization and Contracting Out: The Knowledge and Skills Base

Assessing Performance in Contract Relationships Contracts, Foreign Aid and International Development

The Policy Process n Department of State n U. S. Agency for International Development n Office of Management and Budget. Executive Office of President n Congress

Policy Making and the Interaction of Major Agency Processes Planning Budgeting Legislation Foreign Policy Ongoing Projects Office of Management And Budget (OMB) Design Approval Implementation Evaluation Reporting LDC Needs Agency Policy Global Sector Strategies Regional Strategies Research Strategy Management Objectives Budget Submissions Project Identification Country Field of Program Concentration Document (PID) Strategy (DAPI) (DAPII) Prior Evaluation Lessons Learned Congressional Presentation (CP) Project Review Paper (PRP) Appropriation Project Paper (PP) Operational Year Budget (OYB) Pre. Implementation Project Reporting Project Performance Tracking (PPT); Financial Reporting Management Reports Financial MANAGEMENT Programming INFORMATION Implementation SYSTEM External Needs Program Support Data Bank (CPDB, PAIS, DIS, ESDB) Personnel Administration Support Database for Future Decisions, Policy Host Country Evaluation Ex-Post Facto Evaluation

Foreign Aid?

From Policy to Project n Grants vs. Contracts: Assessing Sub. Grants n RFA’s and Implementation n Project is the Common Denominator for the International Donor

Resourcing Projects

Project Identification, Formulation, Preparation & Design n Problems in project identification ¨ In developing countries: Lack effective procedures for project identification within national planning agencies and operating ministries n Weak conceptual and operational links exist between various national, regional, local, and special interest constituencies n National plans often fail to provide a strategy for development n Allocation of resource issues n Issues of priority n

Project Identification, Formulation, Preparation & Design n Problems in project identification ¨ In developing countries, cont. : Influence of interest groups n Limited international assistance agency staff time to help government planners n Excessive turnover and rotation of field representatives of assistance agencies n Weaknesses in the overall planning system n Design Primarily focuses on Contracting Process n

The Name of the Game

Blueprint Approach to Development Planning Planner Project Blueprints Administrators Actions Target Population Tested Models Pilot Project Researchers Actual Change Versus Targeted Change Evaluation Researchers Before-After Surveys

The Blueprint

Contract Analysis n Assessment vs. Evaluation n Impact Assessment n The Need for Quantitative Data n The Reason for Blueprints

The Project Cycle and the Contract n Analysis--collection of: ¨ Social Analysis targeted groups: women, minorities, indigenous peoples ¨ Economic Analysis--Cost Benefit ¨ Institutional Analysis Sustainability n Organizational Requirements n Recurrent Cost Implications n Human Skills Needed n Social Acceptance n

The Project Cycle & Contracts n Design ¨ Identifying nature of problem and possible solutions--specific needs and desired changes n Appraisal ¨ (Mandatory) data needed to prepare project plan and measure completion

COMMUNITY PROJECT DESIGN

The Project Cycle n Analysis--collection of information ¨ Prediction ¨ Selection of preferred alternatives ¨ Measurement of Impact to determine contract fulfillment

The Project Cycle 1. Design 3. Evaluation Project Objectives Achieved 2. Execution Source: Project Management System, Practical Concepts, Inc. ,

The Project Cycle Analysis ¨ The Logical Framework: (LOGFRAME) If-then conditions n Some donors have moved away from Logframe n Was replaced by a system based on identifying Strategic Objectives, Intermediate Results, Measurable Indicators, etc. n That system was recently "de-emphasized. " n AID mission requests for funds were tied to promises of specific results n Results Framework system is "under review. " n

The Log Frame

Project Management System Provides Management Tools to Support all Stages of the Project Cycle Logical Framework Performance Networks 1. Design Networks display performance plans over time 3. Evaluation Project Objectives Achieved Evaluation System 2. Execution Reporting System ACHIEVEMENT EXCEPTION Evaluations assess performance against plans and analyze causal linkages Practical Concepts, Progress indicators and formats for communicating project information

Preparation of Documents: Donor – USAID Development Assistance Programs (DAPs) n Country Strategy Paper n Concept Paper n Project Identification Document (PID)

Policy Making and the Interaction of Major Agency Processes Planning Budgeting Legislation Foreign Policy Ongoing Projects Office of Management And Budget (OMB) Design Approval Implementation Evaluation Reporting LDC Needs Agency Policy Global Sector Strategies Regional Strategies Research Strategy Management Objectives Budget Submissions Project Identification Country Field of Program Concentration Document (PID) Strategy (DAPI) (DAPII) Prior Evaluation Lessons Learned Congressional Presentation (CP) Project Review Paper (PRP) Appropriation Project Paper (PP) Operational Year Budget (OYB) Pre. Implementation Project Reporting Project Performance Tracking (PPT); Financial Reporting Management Reports Financial MANAGEMENT Programming INFORMATION Implementation SYSTEM External Needs Program Support Data Bank (CPDB, PAIS, DIS, ESDB) Personnel Administration Support Database for Future Decisions, Policy Host Country Evaluation Ex-Post Facto Evaluation

Implementation Documents Program Agreement (Donor) PP (USAID) (PP = Project Paper) Technical Proposal (Contractor to Donor) Country Context (Contractor to Country)

Characteristics Affecting Project Implementation Less Problematic 1. Simple technical features 2. Marginal change from status quo 3. One-actor target 4. One-goal objective 5. Clearly stated goals 6. Short duration More Problematic 1. Complex technical features 2. Comprehensive change from status quo 3. Multi-actor targets 4. Multi-goal objectives 5. Ambiguous or unclear goals 6. Long duration

The Project Cycle n Implementation (Data- Country Program Data Bank, Economic and Social Data Bank, Project Accounting Information System, Development Information System) ¨ Carrying out actions planned ¨ Personnel- local (and foreign) ¨ Budget and Accounting Information

The Project Cycle Monitoring and Evaluation: n Focus on Verification of Completion of Contract n Linked to End of Contract and Verification of Objective indicators n ¨ Understanding what has happened and assessing changes and quality of change ¨ Issue: sustainability regarding follow-on within the country and replicability from one country to another

Monitoring and Evaluation n Nature of Data: ¨ Interview vs. survey ¨ Seat of the pants observation n "the old quick and dirty" ¨ The problem of project goals: Goals are to be limited and bounded n Specific activities are to be clearly defined and achieved n Short run success leads to successful evaluation n Short-term loop is five years n

Monitoring and Evaluation n Nature of Data: ¨ Judgment: Evaluation vs. Assessment n Two views: a. Learn from experience ¨ b. Judge performance ¨ Problem: judgment requires clear goals, in contradiction with learning n Problem: power of the expert n Problem: Contract limits judgement n

Monitoring and Evaluation n Nature of Data: ¨ Evaluation is a donor requirement External activity n Targets blueprint activity (CPA) n Critical path analysis (Time based action) n PERT chart (Project Evaluation Review Technique) very technical, programmed n Evaluation often the need for more action n Contracts Lack Flexibility n

Monitoring and Evaluation n Nature of Data: ¨ Evaluation as an end product: Separate from implementation n Action pre-determined in design prior to evaluation n ¨ Separates evaluation from the on-going activity ¨ Evaluation Used to Determine Certification of Completion

Monitoring and Evaluation n Issues ¨ Problem with Evaluation concept Implementation suggests a finished product n Bureaucratic action is ongoing n Part of larger system with ambiguous boundaries n ¨ Assessment Ongoing, part of implementation process n Not conducive to Contracts Management n

End of Project Status n Central to the Contracting Out Process

End of Project Status (EOPS) n Are of great importance and are primary target of project efforts and discussion n Projects are usually very complex n ¨ It is common to find that no single indicator is sufficient to describe the project achievement completely

End of Project Status (EOPS) n In determining EOPS we apply following principle: ¨ If all EOPS conditions are satisfied, then there would be no credible alternative explanation n Except the purpose of the project (and the contract) has been achieved ¨ Good project design will include the conditions that demonstrate successful achievement of the Project Purpose

End of Project Status (EOPS) n Example ¨ PROJECT PURPOSE IN THE DEVELOPMENT OF AN OIL FIELD: n Export oil ¨ EOPS 50, 000 Barrels of crude/day transferred to tankers at nearest port; n Quality of crude produced is competitive with that currently sold on world market. To verify, one needs a) the purity of oil, b) the world price, c) price sold, d) amount sold n

n. Group Presentations