Brian Sandoval
Governor
Julia Teska
Director
STATE OF NEVADA
DEPARTMENT OF ADMINISTRATION
209 E. Musser Street, Room 200 │ Carson City, NV 89701-4298
Phone: (775) 684-0222 │ Fax: (775) 684-0260
Request for Information: 15-001
For
Pay for Success (PFS) – Early Childhood Education
Release Date: February 12, 2015
Pay for Success Information Session: March 5, 2015, at 2:00 p.m. PST
Deadline for Submission and Opening Date and Time: March 27, 2015 at 2:00 p.m. (PST)
Refer to Section 7, RFP Timeline for the complete RFI schedule
For additional information, please contact:
Sheila Lambert, Chief of Grant Management
State of Nevada, Department of Administration
209 E. Musser Street, Room 200
Carson City, Nevada 89701-4298
Phone: 775-684-5676
Email address: [email protected]
TABLE OF CONTENTS
1.0
OVERVIEW OF PROJECT ................................................................................................... 3
2.0
PROJECT BACKGROUND ................................................................................................... 3
3.0
RESEARCH AND PROCUREMENT ................................................................................... 4
4.0
SUBMISSION OF PROPOSALS ........................................................................................... 4
5.0
INFORMATION SOLICITED............................................................................................... 4
6.0
COST AND ADDITIONAL INFORMATION ..................................................................... 7
7.0
RFP TIMELINE ...................................................................................................................... 7
State of Nevada Department of Administration RFI
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A Request for Information (RFI) process will be used in planning and budget construction. The
State expects vendors to provide creative solutions to the agency's stated problem or need, as
specified below. The State is not obligated to any vendor through this process, nor does it have
any expectations of the responding vendors. If a project receives funding, the next phase is a
formal Request for Proposal (RFP) and Invitation to Bid.
1.0
OVERVIEW OF PROJECT
The State of Nevada Department of Administration (NDA), in cooperation with the Nevada
Department of Education (NDE), Clark County and the City of Las Vegas is seeking information
regarding the design and development of a Pay for Success (PFS) program focused on lowering the
cost of public programs and improving early education program outcomes. The State is focused on the
P-3 continuum. P-3 represents the potential for a well-integrated education experience for children 3
to 8 years old. The “P” refers to a full-day voluntary learning experiences for children 0-4 years old
with an emphasis on 3-4 year-olds. Pre-kindergarten helps children develop the skills necessary to be
successful when they enter kindergarten. The assumptions underlying P-3 focuses on pre-kindergarten,
kindergarten, grades 1-3. NDA encourages interested parties both within and outside of the State to
provide feedback in response to this RFI or any part thereof. This document is not a Request for
Proposals (RFP). The State is not seeking proposals at this time.
2.0
PROJECT BACKGROUND
NDA is developing financial alternatives, including what could be the State’s first Pay for Success
(PFS) program, in order to scale interventions that improve early childhood education and other social
outcomes of disadvantaged youth. Since the initiation of the first PFS program in England in 2010,
several American cities and states have initiated studies or pilot programs involving this financing
model. Additionally, the United States federal government has signaled its interest in exploring Pay for
Success programs. In its fiscal year 2014 budget request, the Obama Administration requests nearly
$500 million to support “pay-for-success” programs, including a $300 million fund to be administered
by the Treasury Department incentivizing the development of Pay for Success programs by state and
local governments.
Pay for Success (PFS), also known as Social Impact Bonds (SIB) contracts, are an innovative approach
to improving outcomes and reducing costs for contracted government services. PFSs are contracts in
which a substantial portion of the payment is conditioned on the achievement of specific outcomes
based on defined performance targets. Unlike typical pay-for-performance contracts, PFSs often ask
contracted parties to raise upfront capital and will only reimburse such upfront capital expenses if an
independent evaluator determines that performance targets have been achieved. If outcomes are
achieved, the initial investors are reimbursed for the entire cost of the program plus risk premium
payments. Ideally, these payments are made when governmental and/or societal savings are realized
due to the program’s effectiveness. Programs in which potential governmental savings are larger than
the cost of the program are strong candidates for the PFS model. While there are many different
structures that satisfy the principles of a PFS, the common characteristics include:

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Rigorous measurement of desired goals and outcomes, validated by an outside party;
Performance-based payments made by the government, only if outcomes are met; and
State of Nevada Department of Administration RFI
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
3.0
Private-sector and/or philanthropic financing.
RESEARCH AND PROCUREMENT
NDA will carefully consider responses to this RFI when establishing its strategy for the PFS program.
In addition, NDA may conduct interviews with select respondents. If these interviews are initiated,
they will likely occur in April 2015. If respondents have specific questions related to this RFI, they
should be submitted via email and NDA may respond at its sole discretion.
4.0
SUBMISSION OF PROPOSALS
Submit one (1) original email submittal via email: [email protected]. The email shall not exceed
a total of twenty (20) pages. All pages submitted count towards the page number. The attachment
shall be in a searchable PDF format on or before the 2:00 p.m. (PST) on March 27, 2015.
Please respond to those questions that are applicable to your organization. There is not an expectation
that all organizations that submit a response will be able to respond to all questions. Special attention
will be paid to proposals submitted by:


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5.0
Local and national intermediaries;
Organizations with promising or existing programs (for-profits & non-profits);
City and County government agencies providing services or proposing to partner with
the State of Nevada on an initiative within their focus area. (Please provide leadership
information on who would be willing to participate.)
Foundations and potential investors that have an interest in a particular issue.
Private business interests.
INFORMATION SOLICITED
5.1
Respondent Information
Provide a brief overview of your organization including experience with Pay for
Success contracts, service provision, social investment, social program delivery, or
other as you deem appropriate, as well as contact information for a representative from
the organization who can speak to your response. (Limit two (2) pages)
5.2
Promising Interventions for the Pay for Success Structure
5.2.1
What are the age, size, demographics and proposed geography of the population
the State of Nevada should target?
5.2.2
What social and/or academic outcomes are lacking in this population that your
proposal seeks to address?
State of Nevada Department of Administration RFI
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5.3
5.4
5.2.3
What are the most promising interventions that would improve social outcomes
in the State of Nevada, in the area of early childhood education, while resulting
in reduced or avoided costs in future expenditures in other areas? Please
describe the specific types of interventions you are proposing, how the
intervention fits within the Pay for Success model, the costs of each intervention,
outcomes you predict can be achieved through each intervention, and the types
and amount of governmental savings you believe each intervention will achieve.
Do your cost savings projections or cost avoidance metrics rely upon
involvement from the other government entities (state or federal government,
school districts, or other possible government payers)?
5.2.4
What evidence exists to support your projected outcomes or impact and
potential reduced or avoided costs?
Please describe existing programs and the results they have been able to
achieve, and other available evidence demonstrating outcomes and potential
cost reductions or cost avoidance.
Structure of the Pay for Success Contract and Performance Measures
5.3.1
What partners are needed to accommodate your proposed intervention(s) or
similar interventions? Please describe the partners needed for your proposed
intervention, possible roles of an intermediary or subcontractor(s.
5.3.2
What, if any, other governmental entities would be essential to the success of
you program or the realization of governmental savings (i.e. the State, other
counties, or a school district) to realize cost reductions or cost avoidance?
5.3.3
How should the Pay for Success contract be measured? Please describe the time
duration needed to accomplish the intervention’s outcomes and cost reductions,
and the specific outcomes measurements that can be used to evaluate
performance.
5.3.4
What quantitative performance measures would allow for a rigorous
methodology that will successfully measure early childhood education impacts,
cost savings, and/or cost avoidance.
Other Social Innovation Financing Structures the State Should
Consider
5.4.1
Are there other government services that should be examined for opportunities
to restructure traditional program financing in favor of funding based on
performance goals and targets? Please describe alternative structures or
different services that the State should consider in creating innovative solutions
to social problems.
State of Nevada Department of Administration RFI
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5.5
5.4.2
What other information would be useful to the State as it looks to draft a more
detailed procurement solicitation on a Pay for Success pilot program?
5.4.3
What services do you offer that have impact and could save money for the State,
but you lack sufficient evaluation resources to demonstrate effectiveness and
cost savings?
Description of Potential Governance Structure
In developing a governance structure for the PFS program, NDA is interested in
exploring the roles of potential intermediaries and/or other advisors, service providers,
investors, and evaluators, and the available processes for selecting and establishing
relationships between the department and each of these types of entities (and each other,
where appropriate). Please describe a potential governance structure for the PFS
program. In particular, please address the following points and where appropriate,
contrast your recommended model with other alternatives:
5.6
5.5.1
Describe the use of intermediaries and/or other advisors, service providers,
investors, and evaluators, and the process for selecting and establishing
relationships between the State and each of these types of entities.
Explain the role that each entity would play during the development and
implementation of the PFS program.
5.5.2
Are there alternative models that are consistent with PFS principles that
NDA should consider, including contracting directly with service providers?
How would this approach be executed if multiple interventions and/or multiple
service providers are included in the PFS program?
Description of Potential Financial Structure
In addition to exploring various service delivery models and governance structures,
NDA is also considering the range of financial structures that could be utilized to
support the PFS program. NDA is interested in the feasibility of using of an incentive
structure, particularly those that could leverage federal funds. Please describe a
potential financial structure for the PFS program. In particular, please address the
following points:
5.6.1
Describe ideas and/or recommendations for leveraging federal funds for
inclusion in the PFS project.
5.6.2
Description of Challenges and Other Considerations. Please describe any
challenges and/or other concerns that NDA should consider when exploring a
PFS program that could potentially incorporate multiple interventions and/or
multiple service providers.
State of Nevada Department of Administration RFI
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6.0
COST AND ADDITIONAL INFORMATION
This State of Nevada NDA RFI is issued solely for research, planning, and informational
purposes and is not to be construed as a commitment by the State to acquire any product or
service or to enter into a contractual agreement. Any costs incurred by a party in preparing or
submitting information in response to the RFI are the sole responsibility of the submitting
party.
The State reserves the right to postpone or cancel this RFI, or reject all submittals, if in its
judgment it deems it to be in the best interest of the State to do so. The State shall not be liable
for any costs incurred by vendor in the preparation of submittals or for any work performed in
connection therein.
Additional Information: The State retains the right to request additional information from
respondents and may, at its sole discretion, elect to request formal presentations from certain
vendors which will include the detailed requirements and criteria and be based, at least in part,
on the responses received to this RFI. The NDA may request further explanation or
clarification from any and all respondents during the review process.
7.0
RFP TIMELINE
The following represents the proposed timeline for this project. All times stated are Pacific
Standard Time (PST). These dates represent a tentative schedule of events. The State reserves
the right to modify these dates at any time.
Task
Date/Time
Information Session on Pay for Success (PFS)
Location: Conference Call
Dial In: (775) 687-0999; Participant Code: 45676
Deadline for submission and opening of proposals
03/05/2015 at 2:00 a.m. PST
No later than 2:00 PM on 03/27/2015
Evaluation period (approximate time frame)
Report Posted On the Results from the RFI
State of Nevada Department of Administration RFI
03/30/2015 – 04/30/2015
05/29/2015
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