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

2. C&V Standard Model Needs Assessment & Response Analysis Intervention
Sectoral capacity analysis
Transfer modality selection
10. Reconciliation
and services
payment
Contributions & Pipeline
Beneficiary identification & Distribution arrangements
Cyclical distribution planning
Distribution monitoring
Delivery mechanism selection
Partners’ selection, Fee
determination & Contracting
Needs Assessment
& Response
Analysis
Intervention
Set-up
Implementation
Reconciliation
Processes

3. The WFP C&V Standard Model
Needs Assessment
& Response
Analysis
Intervention
Set-up
Process 2:
Activities:
Output:
Implementation
Reconciliation
Sectoral Capacity Assessment
Cooperating Partners Capacity
Retail Sector Capacity
Financial Services Capacity
IT & Communication Capacity
Field Security Assessment
Needs assessment
Sectoral capacity analysis
Transfer modality selection
Delivery mechanism selection
Partners’ selection, Fee
determination & Contracting
Contributions & Pipeline
Beneficiary identification & Distribution arrangements
Cyclical distribution planning
Distribution monitoring
10. Reconciliation
and services
payment
Processes
Multi sectoral capacity assessment to inform the operational capacity of the programme
Supports the selection of the most adequate transfer modality
Takes place at any given time (possibly after market assessment) and re-assessed prior to the design of a new intervention
Intervention Scope

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

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:
𝑭𝒐𝒐𝒅 𝒄𝒐𝒔𝒕 # 𝒐𝒇 𝒓𝒂𝒕𝒊𝒐𝒏𝒔 =𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒓𝒂𝒕𝒊𝒐𝒏
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
The scale issue!!!! Will you also consider scenarios according to the scale of the operation?

9. Cost Elements to calculate Efficiency
In-kind
Commodities
External transport
LTSH by EDP
ODOC
Cash
Transfer Value
Delivery by EDP
Voucher
Transfer value / Commodities

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

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

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. Delivery of In-Kind Food
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

14. Thank you!