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

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 Ongoing Projects Office of Management And Budget (OMB) Design Approval Legis- lation Foreign Policy Implementation Evaluation LDC Needs Reporting Budget Submissions Congressional Presentation (CP) Appropriation Operational Year Budget (OYB) Host Country Agency Policy Global Sector Strategies Regional Strategies Research Strategy Management Objectives Project Identification Document (PID) Project Review Paper (PRP) Project Paper (PP) Pre- Implementa- tion Implementa- tion Evaluation Country Program Strategy (DAPI) Field of Concentration Strategy (DAPII) Project Reporting Project Performance Tracking (PPT); Financial Reporting Ex-Post Facto Evaluation Prior Evaluation Financial MANAGEMENT Programming INFORMATION Management Reports Implementation SYSTEM 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 RFA’s 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. 1. Design Project Objectives Achieved 3. Evaluation 2. Execution 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 Ongoing Projects Office of Management And Budget (OMB) Design Approval Legis- lation Foreign Policy Implementation Evaluation LDC Needs Reporting Budget Submissions Congressional Presentation (CP) Appropriation Operational Year Budget (OYB) Host Country Agency Policy Global Sector Strategies Regional Strategies Research Strategy Management Objectives Project Identification Document (PID) Project Review Paper (PRP) Project Paper (PP) Pre- Implementa- tion Implementa- tion Evaluation Country Program Strategy (DAPI) Field of Concentration Strategy (DAPII) Project Reporting Project Performance Tracking (PPT); Financial Reporting Ex-Post Facto Evaluation Prior Evaluation Financial MANAGEMENT Programming INFORMATION Management Reports Implementation SYSTEM External Needs Program Support Data Bank (CPDB, PAIS, DIS, ESDB) Personnel Administration Support Database for Future Decisions, Policy Lessons Learned Evaluation Criteria

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

39. Group Presentations