Effect of Physician Pay-for-Performance (P4P) Incentives in a Large Primary Care Group Practice
Pay for Performance: Implementing an Outcomes …...WIOA Pay for Performance (P4P) Provisions New...
Transcript of Pay for Performance: Implementing an Outcomes …...WIOA Pay for Performance (P4P) Provisions New...
This document is the property of Third Sector Capital Partners Inc It contains confidential proprietary copyright andor trade secret information of Third Sector that must not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector unless expressly authorized in writing by an executive officer of Third Sector
Pay for PerformanceImplementing an Outcomes-Based ApproachCWA Meeting of the Minds 2018
September 4 2018230 pm ndash 330 pm
Insert Client Logo Here if Relevant
Agenda
bull Introduction to Outcomes-Orientated Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Anatomy of an Outcomes Orientation
Innovative outcome-oriented contracts align policy dollars data and services around improved social outcomes
BETTER OUTCOMES
SERVICES
POLICY
DOLLARS
Evaluate the effect of services on outcomes to inform policy
decisions improving the efficiency and effectiveness of
spending over time
Utilize contracts to leverage flexible funding by creating incentives for coordination innovation and continuous
improvement in services
Implement policies that link funding to outcomes providing
increased flexibility and transparency in spending of
taxpayer dollars
Share data to support service delivery focused on outcomes
allowing providers to align services with the needs of their
community
DATA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
OUTCOME GOALS
INCENTIVE STRUCTURES
Components of an Outcomes Contract
Outcomes contracts are created by a group of stakeholders and share common components focused on innovation rather than instruction
Developing outcomes contracts with stakeholders through a collaborative process builds capacity for the community to scale their outcomes orientation
DATA SHARING amp EVALUATION
PERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS
1
2
3
4
5
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
WIOA Pay for Performance (P4P) Provisions
New workforce legislation incentivizes agencies to structure outcomes-oriented ldquoP4Prdquo contracts to achieve longer-term program outcomes
Ties payments to costs or if performance based inputsoutputs or short-term outcomeslike job placement
2-year funding cycle requires short contract periods no time for course correction
Most workforce contracts are actually just cost-reimbursement with no link to performance at all
Payments tied to long-term outcomes like education attainment wage growth and reduced recidivism
10 ldquono-yearrdquo set-aside of WIOA formula funds can be spent well beyond the 2-year funding cycle
P4P contracting strategy is required Includes evaluation 3rd
party data checks and project cost-modeling
Traditional Workforce Contracts including Performance-Based Contracting WIOA Pay-for-Performance
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Orientated Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Anatomy of an Outcomes Orientation
Innovative outcome-oriented contracts align policy dollars data and services around improved social outcomes
BETTER OUTCOMES
SERVICES
POLICY
DOLLARS
Evaluate the effect of services on outcomes to inform policy
decisions improving the efficiency and effectiveness of
spending over time
Utilize contracts to leverage flexible funding by creating incentives for coordination innovation and continuous
improvement in services
Implement policies that link funding to outcomes providing
increased flexibility and transparency in spending of
taxpayer dollars
Share data to support service delivery focused on outcomes
allowing providers to align services with the needs of their
community
DATA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
OUTCOME GOALS
INCENTIVE STRUCTURES
Components of an Outcomes Contract
Outcomes contracts are created by a group of stakeholders and share common components focused on innovation rather than instruction
Developing outcomes contracts with stakeholders through a collaborative process builds capacity for the community to scale their outcomes orientation
DATA SHARING amp EVALUATION
PERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS
1
2
3
4
5
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
WIOA Pay for Performance (P4P) Provisions
New workforce legislation incentivizes agencies to structure outcomes-oriented ldquoP4Prdquo contracts to achieve longer-term program outcomes
Ties payments to costs or if performance based inputsoutputs or short-term outcomeslike job placement
2-year funding cycle requires short contract periods no time for course correction
Most workforce contracts are actually just cost-reimbursement with no link to performance at all
Payments tied to long-term outcomes like education attainment wage growth and reduced recidivism
10 ldquono-yearrdquo set-aside of WIOA formula funds can be spent well beyond the 2-year funding cycle
P4P contracting strategy is required Includes evaluation 3rd
party data checks and project cost-modeling
Traditional Workforce Contracts including Performance-Based Contracting WIOA Pay-for-Performance
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Anatomy of an Outcomes Orientation
Innovative outcome-oriented contracts align policy dollars data and services around improved social outcomes
BETTER OUTCOMES
SERVICES
POLICY
DOLLARS
Evaluate the effect of services on outcomes to inform policy
decisions improving the efficiency and effectiveness of
spending over time
Utilize contracts to leverage flexible funding by creating incentives for coordination innovation and continuous
improvement in services
Implement policies that link funding to outcomes providing
increased flexibility and transparency in spending of
taxpayer dollars
Share data to support service delivery focused on outcomes
allowing providers to align services with the needs of their
community
DATA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
OUTCOME GOALS
INCENTIVE STRUCTURES
Components of an Outcomes Contract
Outcomes contracts are created by a group of stakeholders and share common components focused on innovation rather than instruction
Developing outcomes contracts with stakeholders through a collaborative process builds capacity for the community to scale their outcomes orientation
DATA SHARING amp EVALUATION
PERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS
1
2
3
4
5
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
WIOA Pay for Performance (P4P) Provisions
New workforce legislation incentivizes agencies to structure outcomes-oriented ldquoP4Prdquo contracts to achieve longer-term program outcomes
Ties payments to costs or if performance based inputsoutputs or short-term outcomeslike job placement
2-year funding cycle requires short contract periods no time for course correction
Most workforce contracts are actually just cost-reimbursement with no link to performance at all
Payments tied to long-term outcomes like education attainment wage growth and reduced recidivism
10 ldquono-yearrdquo set-aside of WIOA formula funds can be spent well beyond the 2-year funding cycle
P4P contracting strategy is required Includes evaluation 3rd
party data checks and project cost-modeling
Traditional Workforce Contracts including Performance-Based Contracting WIOA Pay-for-Performance
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
OUTCOME GOALS
INCENTIVE STRUCTURES
Components of an Outcomes Contract
Outcomes contracts are created by a group of stakeholders and share common components focused on innovation rather than instruction
Developing outcomes contracts with stakeholders through a collaborative process builds capacity for the community to scale their outcomes orientation
DATA SHARING amp EVALUATION
PERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS
1
2
3
4
5
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
WIOA Pay for Performance (P4P) Provisions
New workforce legislation incentivizes agencies to structure outcomes-oriented ldquoP4Prdquo contracts to achieve longer-term program outcomes
Ties payments to costs or if performance based inputsoutputs or short-term outcomeslike job placement
2-year funding cycle requires short contract periods no time for course correction
Most workforce contracts are actually just cost-reimbursement with no link to performance at all
Payments tied to long-term outcomes like education attainment wage growth and reduced recidivism
10 ldquono-yearrdquo set-aside of WIOA formula funds can be spent well beyond the 2-year funding cycle
P4P contracting strategy is required Includes evaluation 3rd
party data checks and project cost-modeling
Traditional Workforce Contracts including Performance-Based Contracting WIOA Pay-for-Performance
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
WIOA Pay for Performance (P4P) Provisions
New workforce legislation incentivizes agencies to structure outcomes-oriented ldquoP4Prdquo contracts to achieve longer-term program outcomes
Ties payments to costs or if performance based inputsoutputs or short-term outcomeslike job placement
2-year funding cycle requires short contract periods no time for course correction
Most workforce contracts are actually just cost-reimbursement with no link to performance at all
Payments tied to long-term outcomes like education attainment wage growth and reduced recidivism
10 ldquono-yearrdquo set-aside of WIOA formula funds can be spent well beyond the 2-year funding cycle
P4P contracting strategy is required Includes evaluation 3rd
party data checks and project cost-modeling
Traditional Workforce Contracts including Performance-Based Contracting WIOA Pay-for-Performance
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Beneficiary Population
Contracting
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Reaching an Outcomes Orientation in Workforce Development
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Identify a specific population in need Expand beneficiary pool
Intervention
Data
Outcomes
Performance Payments
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
San Diego Workforce P4P Project Overview
San Diego Workforce Partnership (SDWP) used WIOA funds to pilot paying for a combination of outputs WIOA measures and long-term outcomes
Method Independent validation of long-term individual and cohort level performance data as compared to historical baseline and agreed-upon success targets to confirm achievement of successful long-term outcomes by program participants
Funding ~176M total WIOA funding over 35 program years
Incentives $700K in performance contingent payments paid to provider
OUTCOMES GOALS
GOALSImprove education employment and recidivism outcomes for 300 justice-involved Out-of-School Youth in San Diego County by leveraging WIOA funding to transition towards outcomes-based contracting
Outcomes bull Increased educational placement and attainmentbull Increased short- and long-term employment
placementbull Earnings above minimum wagebull Reduced recidivism rate
DATA SHARING ampEVALUATIONPERFORMANCE METRICS
CONTINUOUS IMPROVEMENT PROCESS INCENTIVE STRUCTURES
Improvementsbull Tracking of administrative data outside
traditional workforce outcomes = uarr insightbull Data feedback loop generates ongoing
iteration for improved service provision
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
To serve the goals of the county SDWP assessed populations being served by itrsquos WIOA funds to identify a high-need high-risk population
Outcomes-Oriented ContractingTraditional Contracting
OUTCOMES GOALS
Ad Hoc Enrollment Across Large Population
Focused Outreach and Enrollment
41000 disconnected youth in San Diego County are eligible for services
Targeted focus on harder to reach youth means 300 justice-involved young adults
will be served
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
SDWP outcomes contract links three different administrative data sources to develop outcome measures for evaluation and incentives
Employment Data(Short amp Long Term)
OutcomesEducation
Data(Short amp
Long Term)
Justice Data
Three-Year Window12-Month Window
PERFORMANCE METRICS DATA SHARING and EVALUATION
CalJOBSEmployment
Education Data(Short Term Only)
Long term employment data will come from Employment Development Department Justice Data includes data from San Diego County Probation City Attorneyrsquos Office and DArsquos Office Long term education data will come from the National Student Clearing House
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Outcomes-Oriented ContractingTraditional Contracting
Stronger partnership and deeper insight create the opportunity for continuous improvement of program services
CONTINUOUS IMPROVEMENT PROCESS
bull Compliance-driven reporting and focusbull Limited understanding of what works for
specific beneficiary populationsbull Limited opportunities for pivoting and course
correctionbull Limited incentives to refine programbull Separate decision making processes
bull Feedback loop-driven reporting and focusbull Better targeting allows insights into services
across different populationsbull More opportunities to understand why
something worksbull Course corrections possible over longer time
framebull Embedded partner collaboration
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWPrsquos combined contract structure supports providerrsquos cash flow needs while also incentivizing the achievement of long-term outcomes
11
P4P Contracting StrategyService provider is incentivized to achieve long-term employment education amp recidivism outcomes via bonus payments
Outcomes tracked through administrative and program data sources
INDEPENDENT VALIDATION
P4P BONUS PAYMENTS
Fixed-Rate Performance ContractService provider is paid upon achievement of outputs and short-term WIOA measures
OUTPUTS WIOA MEASURES
FIXED-RATE PERFORMANCE
PAYMENTS
LONG-TERM OUTCOMES
bull Youth servedbull Monthly progress
report
bull Placement in jobs or post-sec education
bull Measurable skills gain
bull Employment enrollment in post-sec education rate
bull Median earningsbull Recidivism rate
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
SDWP uses a ldquorate cardrdquo structure that bases payments on a combination of outputs WIOA measures and longer-term outcomes
Payment structure is designed to maximize enrollment and outcomes payments while ensuring the project is financially sustainable for the Service Provider
Cost Reimbursement Payments
Output Payments ndash Enrollment
Short-term Outcomes Performance Contingent Payments
Long-term Outcomes Performance Contingent Bonus Payments
0
41
28
11
Average Payment Amount for Contract Timeframe
Output Payments ndash Reporting 20
$0
$718000
$495000
$200000
$348000
Percent Dollars
INCENTIVE STRUCTURES
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Shift to Outcomes Contracting
Third Sector worked with SDWP to shift the status quo to one of an outcomes orientation with better outcomes for justice-involved youth
Policy implementation traditionally utilizes cost-reimbursement for services delivered or individuals served without incentives for coordination or improved outcomes
Status Quo Approach Outcomes-Oriented Approach
San Diego took advantage of the new DOL enabling legislation Pay for Performance provisions empowering them to focus on harder to reach and longer term outcomes through performance payments
County dollars reimbursed providers for costs instead of measurable outcomes
Dollars reward provider for improved employment education and recidivism outcomes
Services for WIOA-eligible youth did not distinguish between different sub-populations and their distinct needs
Services are focused on 300 justice-involved young adults driving improved outcomes in both workforce and recidivism
Short- and long-term outcomes data on employment education and recidivism will be collected and shared to support deeper insight and continuous improvement
Data was used for monitoring instead of surfacing new insights or identifying problems in the system
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Workforce organizations can take incremental steps to towards outcomes-oriented strategies
Incremental Steps taken by SDWP in itrsquos Youth Workforce Development P4P Pilot
Identify a specific population in need Expand beneficiary pool
Beneficiary Population
Intervention
Data
Outcomes
Performance Payments
Contracting
Service entire workforce system through outcomes orientation
Establish enrollment and referral structure
Scale enrollment and service delivery
Share best practices for achieving outcomes across provider network
Access existing data sources Gain access to external data sources to measure outcomes
Establish streamlined data sharing and integration
Identify end-of-program and existing metrics
Include outcomes beyond existing workforce metrics
Long-term outcome measures (workforce and other metrics)
Set aside contingent payment for achieving outcomes
Expand amount of contract value that is contingent
Create menu of performance payment options across providers
Update contract addendum with payment provisions
Include payment and evaluation process in contractaddendum
Execute outcomes contracts across workforce system
Evaluation Establish baselines for existing metrics
Improve performance by managing to outcomes
Rigorous evaluation and program monitoring and reporting
SERVICES
DATA
DOLLARS
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Option 10Pilot Contract
Option 20Scaled Initiative
Option 30Systems Change
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Agenda
bull Introduction to Outcomes-Oriented Contracts and WIOA P4Pbull San Diego Workforce Partnership Case Studybull Discussion and QampA
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Questions Comments Ideas
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Brooke ValleVice President of StrategySan Diego Workforce Partnership(619) 228-2955brookevalleworkforceorgwwwworkforceorg
Yelena DanzigerDirector and General CounselThird Sector Capital Partners Inc(415) 939-1434ydanzigerthirdsectorcaporgwwwthirdsectorcaporg
Contact Information
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
This presentation contains confidential proprietary copyright andor trade secret information of Third Sector Capital Partners that may not be reproduced disclosed to anyone or used for the benefit of anyone other than Third Sector Capital Partners unless expressly authorized in writing by an executive officer of Third Sector Capital Partners
Disclosure
Third Sector Capital Partners IncBoston bull San Francisco bull Washington DC
infothirdsectorcaporg | wwwthirdsectorcaporg
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
APPENDIX
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of Fixed-Rate Performance Contract with Technical Guidelines
In the absence of federal WIOA guidelines on Performance-Based Contracts this project was evaluated for its compliance to the WIA technical guidelines particularly its section on Performance-Based Contracts
Structure
bull Service providerrsquos WIOA budget has been reviewed and approved to ensure that cost of service delivery is reasonable
bull A thorough costbudget analysis was conducted
bull Provider was competitively selected and screened to ensure that it can serves justice-involved youth has the capacity to deliver on specific short- and long-term outcomes and is best fit for the project
bull Documentation for the procurement and selection process is available
Service Provider
bull Payments are earned only with delivery of the agreed upon precisely defined measurable outcome(s)
bull There is no obligation for SDWP to pay the service provider unless satisfactory delivery is achieved unlike cost reimbursement
bull The payment plan is set up so that efficient effective delivery of services would be expected to enhance the margin of earnings in excess of service providerrsquos actual costs while lower performance will yield fewer payments
Payment Plan
bull Payment plan ensures that a large portion of the payments is tied to outcomes rather than outputs and sufficient funds are held back to encourage full performance
bull Design entails sufficient risk to provider to ensure compensation is based on performance and includes payment variants based on participantrsquos risk level to funnel value add to those most in need
bull Payment plan designed based on agreed upon success targets ensures that intervention activities being paid for are responsible for the impact
AuditSince documentation of participant achievement of outcomes is the primary object of auditing a PBC extra care will be taken to ensure provider documents everything in CalJOBS and and keep records in addition to going through numerous verification processes conducted by SDWP an external third party monitor as well as EDD
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP
Alignment of P4P Contracting Strategy with WIOA Federal Regulations
As required by the US Code of Federal Regulations (CFR) Title 20 Chapter V 20 CFR 683500 SDWP has completed a feasibility study to determine its suitability for a WIOA P4P contracting strategy
Target Population
bull Assessed needs of Opportunity Youth in San Diego County identified justice-involved youth as beneficiary population who have high barriers to employment have been traditionally underserved by the workforce board and meet WIOA Title I Out-of-School Youth requirements
Performance Reporting amp Validation
bull Determined outcomes and success targets that will be tracked which are based on national and local historical baseline data for education employment and recidivism and will be measured against a pre-determined and agreed-upon baseline
bull Achievement of P4P outcomes will be independently validated (by SANDAG) prior to payment (subject to gaining access to long term employment data)
Intervention amp Service Provider
bull Competitively selected provider (eligible under WIOA sec 122123) who provides WIOA youth training services (as in WIOA sec 129(c)(2)) with intervention structure that is cost-effective for P4P WIOA amp desired outcomes for selected beneficiary population
Structure of Payments
bull Specified fixed amount to be paid to provider based on achievement of agreed upon performance outcomes within a defined timeline P4P outcomes will be independently validated prior to disbursement of funds
bull Contract includes a process to reallocate funds to other activities in the event provider does not achieve outcomes
copy THIRD SECTOR CAPITAL PARTNERS INC AND SAN DIEGO WORKFORCE PARTNERSHIP