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

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Presentation on theme: "Omega Tool - Cash and Voucher Food Security Cluster Kinshasa - DRC 29 January, 2014."— Presentation transcript:

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

2 C&V Standard Model Processes 1.Needs assessment 2.Sectoral capacity analysis 3.Transfer modality selection 10. Reconciliation and services payment 6. Contributions & Pipeline 7.Beneficiary identification & Distribution arrangements 8.Cyclical distribution planning 9.Distribution monitoring 4.Delivery mechanism selection 5.Partners selection, Fee determination & Contracting Needs Assessment & Response Analysis Intervention Set-up ImplementationReconciliation

3 1.Needs assessment 2.Sectoral capacity analysis 3.Transfer modality selection 10. Reconciliation and services payment 6. Contributions & Pipeline 7.Beneficiary identification & Distribution arrangements 8.Cyclical distribution planning 9.Distribution monitoring 4.Delivery mechanism selection 5.Partners selection, Fee determination & Contracting The WFP C&V Standard Model Needs Assessment & Response Analysis Intervention Set-up Implementation Processes Reconciliation Process 2: Activities: Output: Sectoral Capacity Assessment Cooperating Partners Capacity Retail Sector Capacity Financial Services Capacity IT & Communication Capacity Field Security Assessment Intervention Scope

4 Transfer Modality Selection via OMEGA Tool 1.Needs assessment 2.Sectoral capacity analysis 3.Transfer modality selection 10. Reconciliation and services payment 6. Contributions & Pipeline 7.Beneficiary identification & Distribution arrangements 8.Cyclical distribution planning 9.Distribution monitoring 4.Delivery mechanism selection 5.Partners selection, Fee determination & Contracting Needs Assessment & Response Analysis Intervention Set-up ImplementationReconciliation 10. Reconciliation and services payment 6. Contributions & Pipeline 7.Beneficiary identification & Distribution arrangements 8.Cyclical distribution planning 9.Distribution monitoring 4.Delivery mechanism selection 5.Partners selection, Fee determination & Contracting Intervention Set-up ImplementationReconciliation Activities: Output: Economy Cost-efficiency Cost-effectiveness External Factors Risk analysis Modality Selection Consultations

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

6 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

7 Economy

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

9 Cost Elements to calculate Efficiency In-kind CommoditiesExternal transportLTSH by EDPODOC Cash Transfer ValueDelivery by EDPODOC Voucher Transfer value / Commodities Delivery by EDPODOC

10 Transaction Costs Transport to/from distribution Milling Waiting time In-kind Transport to/from market Transport to/from distribution Cash Transport to/from distribution Waiting time Transport to/from market Voucher

11 Value for Money – cost efficiency 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 Cost-Effectiveness

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

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

14 Thank you!


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