PARTNERSHIP FOR RESULTS BASED CONTRACTING
PRBC works with Governments and Donor Agencies in:
- Contracting social services with non-state actors achieving desired outcomes
- Developing proper policies, strategies, guidelines, tools and templates for results-based contracting
- Enhancing capacity in designing, administering, managing performance and measuring results
- Improving understanding in defining and verifying results in social services
PRBC works with Civil Society Organizations, NGOs, and Private Sector in:
- Enhancing capacity in implementation of Results-based Contracting
- Developing a community of practice with individuals and organizations working in RBC
- Publishing and disseminating evidences on RBCs
Enhancing Social Service Financing through Results-Based Project Design
In many developing countries, the prevailing method of financing social services involves partnerships between the government or donor agencies and non-state actors. Unfortunately, in the majority of cases, these financial arrangements are not effectively aligned with achieving meaningful results. The current financing model often relies on project-based disbursements, with funds being channeled to non-state actors in various ways:
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Financial Capacity and Management: Funding is tied to the financial capacity and management of implementers, involving extensive financial audits, spot checks, and reimbursement based on invoices and financial reports.
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Staff Salaries: Funding is linked to staff salaries, requiring continuous monitoring to prevent the payment of ghost staff or to ensure that the right skills are deployed.
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Procedures or Activities: Funding is linked to specific procedures or activities such as training, report generation, studies, and the development of standard operating procedures (SOPs).
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Functional Facilities: Funding is linked to the number of functional facilities, such as hospitals, clinics, schools, bridges, etc.
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Equipment Purchases: Funding is tied to the purchase of equipment such as x-ray machines, lab equipment, vehicles, computers, and others.
While these approaches have their merits, there are consequences associated with this kind of funding:
Loose Link Between Funding and Desired Outcomes: There may be a loose link between what is funded and the expected (desired) outcome. For example, salaries and equipment are provided, but they might not be used for their intended purpose, resulting in a failure to achieve desired outcomes.
Emphasis on Financial Reports Encourages Fraud: Overemphasis on financial reports, records, and books can encourage providers to create fake documentation, leading to corruption risks.
Fear of Ineligible Expenditures Delays Activities: Providers, fearing ineligible expenditures, may hesitate to take risks, opting to delay activities as their salaries are assured.
Lack of Innovation: Purchasers may hinder the implementation of innovative approaches by dictating methods, limiting the providers' ability to use new ways of doing business to achieve desired outcomes.
Proposed Solution: Results-Based Project Design
Our proposed solution at PRBC is to link funding with project outputs or meaningful activities within the project's result chain to ensure the achievement of desired outcomes.
The key components of this approach include:
Clear Linkage in Result Chain: The project's result chain clearly links critical inputs and activities with outputs, scientifically connected to the desired outcome.
Focus on Key Deliverables: Emphasis is placed on verifying key deliverables, with an independent verifier systematically ensuring the results are linked with payment.
Ineligibles Eliminated: As long as the provider achieves the deliverables, there are no ineligibles. Frequent performance reviews address any problems before they affect project achievement.
Innovation Encouraged: Purchasers do not dictate methods but ensure deliverables are achieved and independently verified, allowing providers to use innovative approaches efficiently.
Designing a Results-Based Project in Social Service: 7 Questions
To design a successful results-based project in social services such as health and education, PRBC recommends addressing the following seven questions:
PRBC is ready to collaborate with donors and governments to design projects that link funding with results. We will also work with non-state actors to enhance their capacity for successful project implementation. Additionally, PRBC will collaborate with partners to create an enabling environment by developing policies, guidelines, and templates. Our commitment extends to collaborating with other agencies to conduct robust evaluations, providing evidence to decision-makers on project outcomes and suggesting ways to enhance project effectiveness and efficiency.