CV on Omega tool for FSC in Kin 29January2014

Report
Omega Tool - Cash and Voucher
Food Security Cluster
Kinshasa - DRC
29 January, 2014
C&V Standard Model
Needs
Assessment
& Response
Analysis
Processes
1. Needs
assessment
2. Sectoral
capacity
analysis
3. Transfer
modality
selection
Intervention
Set-up
4. Delivery
mechanism
selection
5. Partners’
selection, Fee
determination
& Contracting
Implementation
6.
Contributions
& Pipeline
7. Beneficiary
identification
& Distribution
arrangements
8. Cyclical
distribution
planning
9. Distribution
monitoring
Reconciliation
10. Reconciliation
and services
payment
The WFP C&V Standard Model
Needs
Assessment
& Response
Analysis
1. Needs
assessment
Processes
2. Sectoral
capacity
analysis
3. Transfer
modality
selection
Intervention
Process
Set-up
2:
4. Delivery
mechanism
selection
Activities:
5. Partners’
selection, Fee
determination
& Contracting
Output:
Sectoral Capacity Assessment
Implementation
Reconciliation
6.
Cooperating Partners Capacity
Contributions
& Pipeline
10. Reconciliation
Retail Sector Capacity
and services
7. Beneficiary
payment
identification
Financial Services Capacity
& Distribution
arrangements
IT & Communication Capacity
8. Cyclical
distribution
Field Security Assessment
planning
9. Distribution
monitoring
Intervention Scope
Needs
Assessment
& Response
Analysis
1. Needs
assessment
2. Sectoral
capacity
analysis
3. Transfer
modality
selection
Intervention
Intervention
Set-up
Set-up
Activities:
Reconciliation
• Implementation
Economy
Implementation
Reconciliation
• Cost-efficiency
• Cost-effectiveness
6.External
Contributions
•
Factors
6.
Contributions
4. Delivery
4. Delivery
mechanism
mechanism
selection
selection
7.
5.
Partners’
5. Partners’
selection,
selection,
Fee Fee
determination
determination
& Contracting
& Contracting
8.
Output:
& Pipeline
10. Reconciliation
10. Reconciliation
& Pipeline
services
andand
services
7. Beneficiary
payment
Beneficiary
payment
identification Risk analysis
identification
& Distribution
& Distribution
arrangements
arrangements
Cyclical
8.Consultations
Cyclical
distribution
distribution
planning
planning
9. Distribution
9. Distribution
Modality
Selection
monitoring
monitoring
Transfer Modality Selection
via OMEGA Tool
Main Concept
1 - Inputs
2 - Outputs
3 - Outcomes
Value for Money – cost efficiency
Three Important Concepts
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
-
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
Cost efficiency
 The key output for WFP operations is the number of beneficiaries
reached
In Kind Food ZD/HH/month
Commodities
6,300
External transport
Transfer Value
Cash
Voucher
6,800
7,300
850
LTSH by EDP
1,150
Delivery by EDP
400
600
ODOC
2,000
ODOC
700
800
sum
cost efficiency
Cost transfer ratio
C&V ZD/HH/month
ZD per p/mo
10,300
1,717
81%
sum
7,900
1,317
86%
8,700
1,450
84%
Cost Elements to calculate Efficiency
In-kind
Cash
Voucher
Commodities
Transfer Value
Transfer value /
Commodities
LTSH by EDP
Delivery by EDP
Delivery by EDP
ODOC
ODOC
ODOC
External transport
Transaction Costs
In-kind
Transport
to/from
distribution
Milling
Waiting
time
Cash
Transport
to/from
market
Transport
to/from
distribution
Voucher
Transport
to/from
distribution
Waiting
time
Transport
to/from
market
Value for Money – cost efficiency
Cost effectiveness
Cost-Effectiveness
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
-
From Alpha to Omega Value
In-kind,
Cash,
Voucher
Related
Costs
Model
Food+Extrans+ltsh+ODOC
Sum
Transfer
value+Delivery+ODOC
Nutritional
Value score
Full
Costs
Omega Value
Scenario 1:
Nutritional
Nutrients
Value
score
In Kind Delivery will potentially be
Delivery of
In-Kind
Full
Delivery
Food
Costs
Costs
Scenario 2:
Nutritional
Nutrients
Value
score
Delivery of
Voucher
Omega Value > 1 :
Full
Delivery
Costs
Costs
Nutritionally more Cost-Effective
Omega Value < 1 :
Voucher Delivery will potentially be
Nutritionally more Cost-Effective
Thank you!

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