PIA 2734

1
PIA 2734
Privatization and Contracting Out The Knowledge
and Skills Base

2
Assessing Performance in Contract Relationships

• Contracts, Foreign Aid and International
  Development

3
(No Transcript)
4
The Policy Process

• Department of State
• U.S. Agency for International Development
• Office of Management and Budget- Executive Office
  of President
• Congress

5
Policy Making and the Interaction of Major Agency
Processes
Planning
Budgeting
Office of Management And Budget (OMB)
Ongoing Projects
Design Approval
Legis- lation
Foreign Policy
Implementation
Evaluation
LDC Needs
Reporting
Operational Year Budget (OYB)
Appropriation
Congressional Presentation (CP)
Budget Submissions
Host Country
Agency Policy Global Sector Strategies Regional
Strategies Research Strategy Management Objectives
Evaluation
Implementa- tion
Pre- Implementa- tion
Project Paper (PP)
Project Review Paper (PRP)
Project Identification Document (PID)
Field of Concentration Strategy (DAPII)
Country Program Strategy (DAPI)
Project Reporting Project Performance Tracking
(PPT) Financial Reporting
Ex-Post Facto Evaluation
Prior Evaluation
Financial MANAGEMENT Programming
INFORMATION Management Reports Implementation SYST
EM External Needs Program Support Data Bank
(CPDB, PAIS, DIS, ESDB) Personnel Administration
Support Database for Future Decisions, Policy
Lessons Learned Evaluation Criteria
6
Foreign Aid?
7
From Policy to Project

• Grants vs. Contracts Assessing Sub-Grants
• RFAs and Implementation
• Project is the Common Denominator for the
  International Donor

8
Resourcing Projects
9
Project Identification, Formulation,
Preparation Design

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

10
Project Identification, Formulation, Preparation
Design

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

11
The Name of the Game
12
Blueprint Approach to Development Planning
Pilot Project Researchers
Tested Models
Planner
Project Blueprints
Actual Change Versus Targeted Change
Administrators
Evaluation Researchers
Actions
Before-After Surveys
Target Population
13
The Blueprint
14
Contract Analysis

• Assessment vs. Evaluation
• Impact Assessment
• The Need for Quantitative Data
• The Reason for Blueprints

15
The Project Cycle and the Contract

• Analysis--collection of
• Social Analysis targeted groups women,
  minorities, indigenous peoples
• Economic Analysis--Cost Benefit
• Institutional Analysis
• Sustainability
• Organizational Requirements
• Recurrent Cost Implications
• Human Skills Needed
• Social Acceptance

16
The Project Cycle Contracts

• Design
• Identifying nature of problem and possible
  solutions--specific needs and desired changes
• Appraisal
• (Mandatory) data needed to prepare project plan
  and measure completion

17
Community Project Design
18
The Project Cycle

• Analysis--collection of information
• Prediction
• Selection of preferred alternatives
• Measurement of Impact to determine contract
  fulfillment

19
The Project Cycle
Source Project Management System, Practical
Concepts, Inc., Washington, DC 1979.
20
The Project Cycle Analysis

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

21
The Log Frame
22
Project Management System Provides Management
Toolsto Support all Stages of the Project Cycle
Logical Framework
Performance Networks
1. Design
Networks display performance plans over time
Project Objectives Achieved
3. Evaluation
2. Execution
Evaluation System
Reporting System
ACHIEVEMENT
EXCEPTION
Evaluations assess performance against plans and
analyze causal linkages
Progress indicators and formats for communicating
project information
Practical Concepts, Incorporated
23
Preparation of Documents Donor USAID
Development Assistance Programs (DAPs)

• Country Strategy Paper
• Concept Paper
• Project Identification Document (PID)

24
Policy Making and the Interaction of Major Agency
Processes
Planning
Budgeting
Office of Management And Budget (OMB)
Ongoing Projects
Design Approval
Legis- lation
Foreign Policy
Implementation
Evaluation
LDC Needs
Reporting
Operational Year Budget (OYB)
Appropriation
Congressional Presentation (CP)
Budget Submissions
Host Country
Agency Policy Global Sector Strategies Regional
Strategies Research Strategy Management Objectives
Evaluation
Implementa- tion
Pre- Implementa- tion
Project Paper (PP)
Project Review Paper (PRP)
Project Identification Document (PID)
Field of Concentration Strategy (DAPII)
Country Program Strategy (DAPI)
Project Reporting Project Performance Tracking
(PPT) Financial Reporting
Ex-Post Facto Evaluation
Prior Evaluation
Financial MANAGEMENT Programming
INFORMATION Management Reports Implementation SYST
EM External Needs Program Support Data Bank
(CPDB, PAIS, DIS, ESDB) Personnel Administration
Support Database for Future Decisions, Policy
Lessons Learned Evaluation Criteria
25
Implementation Documents
26
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
27
The Project Cycle

• 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

28
The Project Cycle

• Monitoring and Evaluation
• Focus on Verification of Completion of Contract
• Linked to End of Contract and Verification of
  Objective indicators
• 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

29
Monitoring and Evaluation

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

30
Monitoring and Evaluation

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

31
Monitoring and Evaluation

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

32
Monitoring and Evaluation

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

33
Monitoring and Evaluation

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

34
End of Project Status

• Central to the Contracting Out Process

35
End of Project Status (EOPS)

• Are of great importance and are primary target of
  project efforts and discussion
• Projects are usually very complex
• It is common to find that no single indicator is
  sufficient to describe the project achievement
  completely

36
End of Project Status (EOPS)

• In determining EOPS we apply following principle
• If all EOPS conditions are satisfied, then there
  would be no credible alternative explanation
• 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

37
End of Project Status (EOPS)

• Example
• PROJECT PURPOSE IN THE DEVELOPMENT OF AN OIL
  FIELD
• Export oil
• EOPS
• 50,000 Barrels of crude/day transferred to
  tankers at nearest port
• 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

38
(No Transcript)
39

• Group Presentations