TERMS OF REFERENCE (TOR) FOR OUTSOURCED ASSIGNMENT

UNICEF - ARMENIA

Expert on Outsourcing of State Servicesto Non-state actors
1.  Background:
Governments have been outsourcing more of their social service delivery to NGOs, following a trend amongst all organizations to outsource non-core functions. Social services outsourcing is a governance mechanisms through which the government provides public funds to a non-profit organization or a business to provide public goods and services. In principle, it is based on a partnership between two distinctive actors: the government and the implementing organization. The government assumes a regulatory role: it establishes a legal framework, supervises the provision of services, and evaluates the performance of the implementing partner. The implementing organization operates, and assumes responsibility for the work.
Consultation services envisaged by this Terms of Reference (ToR) shall be provided in the framework of the program “Social inclusion of vulnerable children: expansion of alternative care, family support and inclusive education services” (hereinafter referred to as “Program”) co-funded by USAID and UNICEF. The program aims to support the Government of Armenia in child care reform and particularly in deinstitutionalization of vulnerable children, prevention of institutionalization of children at risk and ensuring accessibility of community-based non-residential services for families and children in need. This will particularly done in two ways: 1) through transformation of residential services into alternative community-based services and 2) delegation of state services to non-state providers (NGOs, etc.).
UNICEF promotes that all children enjoy their full rights in each country and within the childcare reform particularly concentrates on the child’s right to family environment, right to proper education and right to be protected from all forms of violence. In this regard, based on number of scientific researches which state the negative impact of institutionalization on child growth and development as well as considering the cost of institutional care UNICEF has been promoting termination of residential service provision for children and ensure children have access to alternative community and family-based care options close to their community of origin. Residential institutions are costly. According to state budget analysis every year the Government spends more than 13 million USD to keep the current system of institutional care. In 2012, the budget for special educational institutions (23) was 2.72 billion AMD, for orphanages (6) 1.72 billion AMD and for child care and protection boarding institutions (8) and 1 billion AMD[1]. Thus the per-child expense in special schools was 2521 USD, in orphanages - 5307 USD and in child care and protection boarding institutions - 3086 USD. The financing formula of the institution consists of fixed maintenance costs and per capita component.
According to various analysis, non-residential services that are community based rather than centralized may cost much less, especially when they are delegated to non-state providers.
2. Purpose of the assignment:
Government of Armenia has some experience in partial outsourcing of services, therefore UNICEF in Armenia is looking for an international Consultant to study the existing experience, and considering the essence of the current social reforms (child care and integrated social services) as well as existing most effective examples of outsourced services will come up with set of recommendations for specifically Ministry of Labour and Social Affairs, Ministry of Education and Science, Ministry of Territorial Administration and Emergency Situations and Ministry of Health in outsourcing of some state service provision to non-state providers
The Consultant will look into legal framework related to outsourcing of state services as well as the financial allocations for different types of state services and come up with a reasonable scheme of outsourcing, applicable control mechanisms and description of transparent selection process.
The obtained and analyzed information will result in a final report with recommendations for developing Armenia’s adoption system of delegation of state services.
The recommendations and international best practice, including cost analysis of outsourced services will be presented at a workshop.
3. Geographic Area: Yerevan, Armenia with visits to provinces
4. Duration: September-November, 2015
5. Supervisor: Anna Harutyunyan
6. Type of Supervision required: Periodic follow-up, technical guidance and support
7. Description of assignment:
Tasks / End Product/deliverables / Deadline
Conduct desk review of national legislation (including bylaws and government decrees/orders) to identify existing options/gaps related to outsourcing of services (with assistance of local lawyers) / An Overview of existing mechanisms/gaps related to outsourcing of services in Armenia / End of September
Collect and analyze international best practices in outsourcing of state services to non-state actors / Summary of international best practices of outsourcing of services to NGOs, including cost-effectiveness analysis and mechanisms for control and monitoring of services. / Mid-October
Meetings with respective Government partners- Ministry of Labour and Social Affairs, Ministry of Education and Science, Ministry of Territorial Administration and Emergency Situations and Ministry of Health to understand their perspective in service provision. / Briefing notes of the meetings / End of October
Meetings with NGOs who receive state funding for particular services, study the current scope of outsourcing, including legal framework. / Minimum requirements for NGOs to be able to compete for outsourced services / End of October
Propose types of services that can be outsourced to some NGOs as an example (with the help of local expert, if need be) / Recommendations for outsourcing certain types of social services and their mechanisms / End of November
Preparation of final report / Final report on situation with outsourcing of services in Armenia / End of November
8. Terms of the application
Interested candidates are requested to express their interest to UNICEF in Armenia by CoB September 21, by sending in a package:
-  The methodology they intend to use in implementing the assigned tasks;
-  A detailed workplan (with activities and timeframe) for the completion of the assigned tasks;
-  Detailed budget for completing the assignment;
-  Sample report from similar task
All necessary documents should be provided in English to the following e-mail address:
The final selection of the Consultancy will be conducted by UNICEF in Armenia based on the qualifications of the candidates, their relevant experience, and the quality of the proposal presented.
9. Qualification and specialized knowledge/experience required for the assignment:
Highly qualified experts with the following requirements:
-  At least Master’s degree in economics, public administration, public policy, international development or other related field
-  Minimum 10 years of international experience in policymaking or state administration
-  Experience in leading NGO providing services outsourced by state
-  Proven experience in conducting similar research/consultancy (sample report to be attached to the application)
-  Experience in Eastern Europe and CIS countries strongly preferred
-  Proficiency in English (written and spoken)
10. Nature of Penalty Clause to be stipulated in the contract:
UNICEF Armenia reserves the right not to pay the Contractor or withhold part of the payable amount if one or more requirements established for this assignment is not met or deadline set for the accomplishment of the tasks is missed.

[1] Law on the State Budget of Armenia 2012.