1. Organisational background
The Bertha Centre for Social Innovation and Entrepreneurship (BC) is the first academic centre in Africa dedicated to advancing social innovation and entrepreneurship. It was established as a specialised unit at the UCT Graduate School of Business in late 2011, in partnership with the Bertha Foundation, a family foundation that works with inspiring leaders who are catalysts for social and economic change. Today the Centre is a dynamic space, with several programme areas in Advancing Social Innovation, Education Innovation, Inclusive Health Innovation, Innovative Finance and ScaleShift, with a strong focus on South Africa and Africa.
The core approach of the Bertha Centre has been to uncover, pioneer and connect social innovations and social entrepreneurs that work to generate inclusive opportunities and advance social justice in our country and continent. Since inception, our team has uncovered over 300 innovative models, programmes and solutions; convened over 5,000 citizens and practitioners across sectors; tested the feasibility of pioneering social solutions ranging from social impact bonds, social franchising, and social innovation hubs; and produced numerous knowledge outputs and publications and awarded over R4m in Bertha Scholarships to over 40 African students. Social Innovation & Entrepreneurship is now one of the school’s three strategic themes in its 5-year strategy.
In the last three years, our team has played a leading role in integrating outcomes-based principles into public and private sector contracts and financial instruments. We have worked with national, provincial and local governments to determine the potential for setting up Impact Bonds or other Payment by Results instruments for Early Childhood Development, workforce development, job creation, tertiary student support and HIV prevention.
2. Purpose and objectives
- Design and implementation of Outcomes Fund
- Increase educational and economic activity in young girls and women in order to reduce their risk of contracting HIV
The BC has been working with Johnson & Johnson (J&J) for the last 6 months to identify an innovative finance project that the Global Public Health (GPH) team can pilot and potentially scale. The innovative finance instrument is not an end in itself but rather a tool that GPH can use to further the work being done in three key areas being the prevention of HIV in adolescent girls, drug resistant TB and maternal and child deaths in low income communities.
The purpose of this project will be to create an Outcomes Fund that will help to promote educational and economic activity in adolescent girls and young women in Gauteng and/or Kwazulu Natal thereby reducing the risk of their contracting HIV.
The output- or outcomes-based contracting and financing model is purported to drive innovation and efficiency of delivery through incentive effects. A funder and service provider agree on results and payment is based on achievement of those results. There is thus a financial incentive for delivery, which in turn incentivises ongoing data collection and programmatic improvements.
Operating from the assumption that young girls are increasingly entering romantic relationships or transactional sex work in search of financial security, GPH is aiming to incentivise them to stay in school and attain either further formal training or employment. This will increase their ability to provide for themselves financially which will decrease the prevalence of risky behaviour thereby lowering HIV infection rates.
- Perform scoping study to identify target focus of fund: To assess the high-level potential for an innovative finance instrument, including considerations such as the scope for a clearly defined issue, target beneficiary group, demand from stakeholders, intervention model and payment trigger metrics.
- Perform feasibility study; build business case and design fund in particular focus area: To design an Outcomes Fund that will finance a range of innovative finance instruments, including their overall structure, detailed operational and financial models and proposition for key stakeholders.
- Implement fund design by identifying and supporting implementing organisations: To develop a pilot/s and build systems to support J&J in the management of the fund as well as collect data that will inform the next objective.
- Refine and develop fund design: To adjust the design depending on what is working and attract additional funders in order to initiate second round of outcomes payments from the fund.
There are three phases to this project the first of which is covered by these Terms of Reference. The Project Partner will have the opportunity to bid for Phase 2 and 3 of this project towards the end of the first phase.
The process of designing and implementing an Outcomes Fund is non linear and iterative. The activities contained in this scope are thus guidelines based on previous experience but the Project Partner will be required to be flexible, if research suggests an alternative approach.
The Project Partner role can be performed by a single organisation or split between organisations depending on their expertise. It can also be taken on by a single organisation that subcontracts experts to carry out certain tasks.
The writing up of legal contracts will be done by J&J thus falling outside of the scope of this bid. The legal team will however need to be briefed on the parameters of those contracts by the Project Partner.
Phase 1: <R850, 000
This phase will involve scoping, feasibility, fund design and implementation of first round of fund disbursement.
|Define social issue|
|Identify target beneficiaries|
|Select outcome metrics|
|Analyse possible intervention models|
|Map outcome funder landscape|
|Map investor funder landscape|
|2||Feasibility and design|
Develop Outcome Fund structure options
Design contracting methodology
|Establish pricing methodology|
Build payment mechanism and financial model
Build M&E framework
|Design technical assistance framework|
|3||Implementation and capacity building|
Design and run procurement process
Support implementers to prepare bid and raise investment
Develop performance management system
Phase 2: TBD
This phase will involve some pre-contracting and all ongoing support required by the implementer in order to deliver on outcomes –based contract.
|Strengthen M&E systems|
|Provide performance management support|
Phase 3: TBD
This phase will involve refining the initial fund design, raising additional funding and running a second procurement round.
|5||Refine and develop|
|Refine fund design|
|Conduct second procurement process|
|Support implementers to prepare bid and raise investment|
|6||Implementation and capacity building|
|Design and run procurement process|
|Support implementers to prepare bid and raise investment|
|Develop performance management system|
5. Accountabilities and Responsibilities
The BC has completed the design of several outcome-based contracting projects and would like to support the Project Partner in building this expertise. We will thus work alongside the winning bidder in an advisory, symbiotic and oversight capacity in order to achieve the objectives below.
The responsibilities of each party will be formalised during the planning phase. In summary we will co-design the fund but the Project Partner will do the bulk of the research, interviews and report writing.
Shortlisted bidders will be given the opportunity to discuss and refine bids during an hour-long interview. The collaboration will officially kick off with a workshop where project plans and milestones will be agreed. The ongoing communication will likely be in the form of weekly meetings with an increase in frequency at the start of each particular phase as well as workshops, site visits and stakeholder meetings.
The BC will assign a Project Manager to represent the centre during the project. The Project Manager will be responsible for:
- Overall responsibility and accountability for the project.
- Guidance throughout all phases of execution.
- Approval of all deliverables.
The Project Partner is responsible for:
- Conducting the scoping, feasibility, design and implementation of the Outcomes Fund;
- Day–to–day management of operations;
- Regular progress reporting to BC’s Project Manager;
- Production of deliverables in accordance with contractual requirements.
6. Deliverables & Timings
This engagement is intended to run over a 10 month time period from April 2017 to 30 January 2018.
A draft work plan will be drawn up in conjunction with BC in the week before the contract is signed.
- Scoping study
7 April 2017 to 1 June 2017
Output: Scoping study document and presentation assessing high level potential for Outcomes Fund including consideration of social issue, target beneficiaries and outcome metrics, with a view to informing discussions with potential outcomes funders, such as government and donor agencies, and feasibility of the fund in the second phase
- Feasibility and design
1 June 2017 to 1 September 2017
Output: Feasibility study document and revised presentation with outline of the design of the outcomes fund, including the overall structure, detailed operational and financial model and proposition for key stakeholders. Includes list of possible operational and funding partners
- Implementation and capacity building
1 October 2017 to 1 January 2018
Output: Fund design document and implementation plan with stakeholder buy-in. Contract/s signed with implementers/s. Performance management plan. Learning document on start of implementation phase.
These deliverables are to be:
- Submitted electronically via e-mail and/or on a flash-drive.
- Submitted in hard copy format (2). All reports are to be submitted to Project Manager
- Performance management
1 January 2018 for 1-3 years
- Refine and develop
1 January 2018 to 1 April 2018
- Implementation and capacity building
1 April 2018 to 30 September 2018
|Output: Fund design document and stakeholder buy in. Implementation plan for second procurement round. Additional outcomes funders engaged and recruited. Learning document to be generated after fund has been refined.|
7. Project Partner qualifications
The Project Partner is expected to be:
- A reliable and effective consultant with extensive experience in developing and implementing multi-stakeholder projects
- Proven track record in conducting similar projects
- Understanding and knowledge of the target areas
8. Application Procedure
Interested Project Partners should respond with proposals including technical and financial items.
The technical items should include:
- Organisational profile and details
- Details of previous experience developing and implementing projects, highlighting relevant topic or context (social investment, NGO, social enterprise, outcomes in young women and girls) and 1 or 2 sample reports;
- Explanation of proposed approach and methodology drawing on activities outlined in the Scope;
- CV(s) of proposed consultants/analysts that will be assigned to the project including nominated Project Leader.
- MOU between partnering organisations if applicable
The financial items should include:
- Breakdown of costs according to budget template supplied.
- Explanation of cost assumptions
- Costs to be supplied in ZAR
- A fixed overall quotation up to a maximum of R850, 000
The proposals will be assessed based on previous experience, best value, i.e. best quality and cost-effectiveness of the proposed offers. Only quotations that include both technical and financial proposals will be considered.
|Date and time||Event|
|14h00 on 14 March 2017||Briefing|
|17h00 on 24 March 2017||Application submission|
|3 April 2017||Shortlist interview|
There will be a 1 hour briefing session at the Solution Space and the Graduate School of Business, UCT on 14 March at 14h00. The Q&A from the briefing will be emailed to all interested bidders. If you cannot attend and have questions they can be emailed to BC in advance.
Shortlisted candidates will be contacted after the 24 March and asked to attend a 1 hour interview on 3 April during which time they will have the opportunity to discuss the proposal.
Quotations and questions should be submitted and directed to Dr Susan de Witt at firstname.lastname@example.org by or before 17h00 on 24 March 2017.
We look forward to receiving quotes from interested parties.