2Center for American Progress | Social Impact Bonds and Government Contracting
Ulimaely, governmen agencies wan o parner wih an exernal organizaion ha willsuccessully deliver he oucome. As we explain below, agencies should evaluae bids romexernal organizaions using hree key ses o crieria: he qualiy o he organizaion’s plansor achieving he oucome; he overall qualiy and demonsraed abiliies o he organiza-ion isel; and he price governmen will pay he organizaion i i achieves he oucomes.
Confidence in plans
Alhough he governmen should no require he exernal organizaion o use a paricu-lar inervenion o achieve a Social Impac Bond’s oucome, he exernal organizaion’s bid should sill conain a work plan. Te plan should:
Describe the interventions that will be used—and why.
Te governmen will cedeconrol over day-o-day aciviies o he exernal organizaion, bu he exernal orga-nizaion needs o demonsrae ha hey have hough seriously abou how o achievehe oucome. o ha end conracing ocers should wan a leas some o he orga-nizaion’s planned inervenions o have rigorous evidence o efeciveness in similarcircumsances. I here is any daa available on wha exernal acors make he iner- venion more likely o succeed, he exernal organizaion should seek o demonsraehose acors will hold rue in heir plan.
Describe a back-up plan.
Since he exernal organizaion is allowed o change is ac-ics midway hrough he SIB agreemen, conracing ocers should expec he organi-zaion o have plans in place o respond o and replace unsuccessul inervenions.
Confidence in the external organization
Te governmen shouldn’ jus evaluae he exernal organizaion’s plans when awardinga Social Impac Bond agreemen. Because o he rus inheren in hese unusual arrange-mens, he governmen agency will wan a high degree o condence ha hey will beable o orm a cooperaive working relaionship wih an exernal organizaion capable o carrying hrough he plans. o gain condence, he agency should consider:
Te governmen will need o work wih he exernal organizaion regu-larly o, among oher hings, provide access o daa and o he populaion o bene-ciaries. Having condence in he exernal organizaion’s senior employees is essenialas he governmen and he exernal organizaion will need o work closely ogeherhroughou he agreemen.
Te governmen should also consider he organizaion’s rack record— wheher hey have successully conraced wih he governmen beore, wheher hey