We are excited to launch the second round of our Outcomes Rate Card Development Competition, to help governments scale solutions to society’s most pressing challenges by employing Pay for Success to shift the procurement focus from outputs to outcomes. Local, state, and tribal governments, as well as nonprofits, are invited to apply between now and January 31, 2018.
Social Finance will select up to four applicants to develop outcomes rate cards. Each awardee will receive free, in-depth support from a dedicated Social Finance team over 12 months to develop an outcomes rate card, issue an RFP to procure for service providers, and launch the resulting Pay for Success projects.
Outcomes rate cards are one approach to developing Pay for Success (PFS) projects. Through this outcomes-based procurement tool, government defines a menu of outcomes it wishes to “purchase” — such as improving student achievement, completing a degree or training program, and boosting earnings — and the amount it is willing to pay each time a given outcome is achieved.
As a tool to launch multi-provider procurements, outcomes rate cards have the potential to innovate the US PFS market by standardizing processes, expediting development timelines and significantly increasing the number of PFS projects launched.
With an outcomes rate card, governments and nonprofits can take a community focus on outcomes to the next level through contracts that link payment to performance. An outcomes rate card can be used across many social issues or policy domains, including, but not limited to, early childhood, workforce development, homelessness, health, child welfare, and criminal justice. With technical assistance from Social Finance, governments receive dedicated support to set up outcomes-based contracts — the first step in a system that creates feedback loops to improve service delivery in the future, beyond the scope of this project.
The open and fair competition is supported through funding awarded to Social Finance in 2016 by the Social Innovation Fund. The first round of the competition awarded outcomes rate card development assistance to Riverside County, CA and to the Yale Child Study Center and Connecticut Office of Early Childhood in April 2017. The Connecticut partners are building on the state’s history of collaboration and experience with Pay for Success to design an outcomes rate card addressing early childhood outcomes. Riverside County Executive Office is developing an outcomes rate card to improve services for Children of Incarcerated Parents (CIP).