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Omega Tool - Cash and Voucher Food Security Cluster Kinshasa - DRC

Omega Tool - Cash and Voucher Food Security Cluster Kinshasa - DRC. 29 January, 2014. C&V Standard Model. Intervention Set-up. Implementation. Reconciliation. Needs Assessment & Response Analysis. Delivery mechanism selection Partners’ selection , Fee d etermination & Contracting.

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Omega Tool - Cash and Voucher Food Security Cluster Kinshasa - DRC

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  1. Omega Tool - Cash and Voucher Food Security Cluster Kinshasa - DRC 29January, 2014

  2. C&V Standard Model Intervention Set-up Implementation Reconciliation NeedsAssessment & Response Analysis • Deliverymechanismselection • Partners’selection, Fee • determination& Contracting • Contributions & Pipeline • Beneficiaryidentification&Distributionarrangements • Cyclicaldistributionplanning • Distributionmonitoring 10. Reconciliation and services payment • Needs assessment • Sectoralcapacityanalysis • Transfermodalityselection Processes

  3. The WFP C&V Standard Model Intervention Set-up Implementation Reconciliation NeedsAssessment & Response Analysis • Process 2: • Activities: • Output: Sectoral Capacity Assessment • Cooperating Partners Capacity • Deliverymechanismselection • Partners’selection, Fee • determination& Contracting • Contributions & Pipeline • Beneficiaryidentification&Distributionarrangements • Cyclicaldistributionplanning • Distributionmonitoring 10. Reconciliation and services payment • Needs assessment • Sectoralcapacityanalysis • Transfermodalityselection • Retail Sector Capacity Processes • Financial Services Capacity • IT & Communication Capacity • Field Security Assessment Intervention Scope

  4. Intervention Set-up • Activities: • Output: Implementation Reconciliation • Economy • Cost-efficiency • Cost-effectiveness • External Factors • Deliverymechanismselection • Partners’selection, Fee • determination& Contracting • Contributions & Pipeline • Beneficiaryidentification&Distributionarrangements • Cyclicaldistributionplanning • Distributionmonitoring 10. Reconciliation and services payment Intervention Set-up Implementation Reconciliation NeedsAssessment & Response Analysis • Risk analysis • Deliverymechanismselection • Partners’selection, Fee • determination& Contracting • Contributions & Pipeline • Beneficiaryidentification&Distributionarrangements • Cyclicaldistributionplanning • Distributionmonitoring 10. Reconciliation and services payment • Needs assessment • Sectoralcapacityanalysis • Transfermodalityselection • Consultations Modality Selection Transfer Modality Selection via OMEGA Tool

  5. Main Concept 1 - Inputs 2 - Outputs 3- Outcomes

  6. Three Important Concepts Value for Money – cost efficiency • Economy – cost per unit of inputs . • Cost-efficiency - cost per unit of programme outputs. • Cost-effectiveness - cost of achieving desirable programme outcome. Guidance from DFID on measuring and maximising value for money - 2011

  7. Economy • The key input for WFP operations is food. The cost of the food is the metric for understanding the “economy” of our programmes. • For in-kind food assistance the “economy” is: • For cash and voucher based programmes, the “economy” is: • transfer value

  8. Cost efficiency • The key output for WFP operations is the number of beneficiaries reached

  9. Cost Elements to calculate Efficiency

  10. Transaction Costs

  11. Cost-Effectiveness Cost effectiveness Value for Money – cost efficiency Cost-effectiveness is calculated where benefits can be quantified, although not necessarily expressed in money terms, making it possible to choose between variants in programme design on the basis of the relative cost of achieving desired outcomes Guidance from DFID on measuring and maximising value for money - 2011

  12. From Alpha to Omega Value In-kind, Cash, Voucher Nutritional Value score Model Full Costs Related Costs Food+Extrans+ltsh+ODOC Transfer value+Delivery+ODOC Sum

  13. Omega Value Nutrients score OmegaValue> 1 : In Kind Delivery will potentially be Nutritionally more Cost-Effective Scenario 1: Delivery of In-Kind Food Full Costs OmegaValue< 1 : Voucher Delivery will potentially be Nutritionally more Cost-Effective Nutrients score Scenario 2: Delivery of Voucher Full Costs

  14. Thank you!

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