Terms of Reference for Consultancy:
Population Services International (PSI) is a global nonprofit organization focused on the encouragement of healthy behavior and affordability of health products and services. PSI was founded in 1970 to improve reproductive health using commercial marketing strategies and has expanded to work in over 50 countries in the areas of malaria, family planning, reproductive health, HIV, sanitation and non- communicable diseases. PSI is a non-profit but takes a business approach to our work, with a growing portfolio of social enterprise businesses in the health product and services space. In 2018, PSI, in partnership with UBS Optimus Foundation, USAID, Merck for Mothers, Palladium Group, and HLFPPT, launched the first ever Maternal and Child Health Development Impact Bond (DIB).
PSI recognizes that the financing landscape for global health and development is changing. Achieving global health impact will increasingly require participation from the full spectrum of capital sources. Development stakeholders note that the Sustainable Development Goals (SDGs) face an annual financing gap of approximately $2.5 trillion. A key strategy for addressing this need is encouraging participation of private capital and other capital sources not traditionally involved in the development space. The participation of new actors calls for innovation in the types and applications of financing instruments, including blended financing tools, impact investing, and pay-for-performance mechanisms such as DIBs.
To strengthen our strategies and approaches to innovative financing mechanisms, PSI seeks to understand and align new business opportunities to the growing range of blended finance, pay-for-performance, and impact investing approaches. This consultancy will help PSI determine how innovative financing can capitalize, and in some cases sustain, healthcare interventions delivered by PSI and healthcare interventions delivered by other actors where PSI plays a facilitation or intermediary role.
Specifically, the purpose of this work is to develop an innovative financing framework for PSI and align PSI interventions within that framework, and to make recommendations on internal capacity needs and partnerships for PSI to successfully operationalize the framework in the short-, medium-, and long-term. This will be done by first understanding PSI’s current activities, business models and approaches and PSIs long term strategic priorities.
3. Work to be performed
Output One: Understand PSI, our strategic priorities and business model innovations. (Estimated 15 days)
The first phase of the consultancy will focus on understanding PSI and taking inventory of strategic priorities and current capabilities with regard to innovative financing. Consultant(s) will review key documents, interview internal stakeholders, and, as appropriate, engage with key funders and financing institutions. Key questions include perceptions of risk, opportunities, successes and failures as it pertains to innovative financing approaches. From there, consultant(s) will analyze and catalogue PSI’s existing capacity and strategic direction in the pay-for-success, impact investing, and innovative financing space. In short, output one is a ‘deep dive’ into PSI that will enable the work requested in output two and three. Deliverables for output one includes a short (approx. 3 to 4 page) summary of findings, notes from interviews, and other background documentation as requested.
Output Two: Build out an Innovative Financing Framework and Roadmap for PSI. (Estimated 25 days)
The second phase of the consultancy will capture and outline the evolving landscape of innovative financing instruments including blended finance, impact investing, outcome funds, and pay-for-success. It will also identify the shifting landscape of investors in the development space, including bilaterals, multi-laterals, corporates, foundations, philanthropy, venture and impact investors. It is expected that the consultant(s) will draw on their own deep knowledge and resources to effectively define the evolving landscape.
Using the PSI organizational knowledge gained from phase one, and augmented through engagement with appropriate senior leadership, the consultant(s) will create a financing framework and roadmap for PSI. Consultant(s) may wish to draw on elements from existing financing frameworks, e.g. USAID’s Center for Accelerating Innovation and Impact. The PSI specific framework, to be developed within output two, will align existing and burgeoning external financing opportunities with PSI’s strategic priorities, business model innovations and health area strategies. Within this financing framework, potential investment vehicles/ financing instruments will be identified and matched for suitability to the different types of PSI programming. For each investment vehicle/ financing instruments, the operational complexities and learnings from the community of practice will be spelled out. Deliverables include the framework/ roadmap and accompanying documentation/annexes.
Output Three: Recommend where PSI should develop internal capacity/process or system change and where and with whom PSI can partner or contract to achieve strategic priority goals. (Estimated 15 days)
The third and final phase will focus on how PSI can best operationalize the financing framework and roadmap. The consultants will recommend internal resourcing needs and potential partnerships/ contractor relationships needed to operationalize the framework, particularly as it pertains to innovative business models for delivery of adolescent reproductive health, family planning, water & sanitation, and non-communicable diseases. Deliverables will include a report containing detailed and actionable recommendations.
To conclude the consultancy, PSI may request a final presentation of key findings and recommendations (please see Technical Supervision section). (Estimated 5 days).
Oversight and technical supervision of this consultancy will be provided by the family planning technical team with input and guidance from a small steering committee, including representation from fundraising, strategy, and social enterprise functions within PSI to ensure appropriate organization integration.
The consultancy will begin with an in-person kick-off meeting to introduce and orient all stakeholders and review scope of work, timelines, etc. together. Thereafter, technical supervision and support will be provided through every other week status update meetings with the family planning team designee and steering committee members. Submission and approval of deliverables related to each output will precipitate start of work on the following output. Consultant(s) may be asked to present consolidated final outputs to a larger group of stakeholders at PSI at the end of the consultancy.
Anticipated start date: February 15, 2019
Anticipated end date: April 30, 2019
6. Specific requirements
- Experience/ qualifications required: Strong experience working in resource mobilization and the intersection of international development and private/ innovative financing instruments. History of successfully completed projects or consultancies in blended finance, impact investing, pay-for-performance mechanisms, venture philanthropy, and/or social enterprise. Clear understanding of global health concepts and trends, including the evolving landscape in financing of development assistance. Familiarity with PSI a plus but not required.
- Skills / Technical skills and knowledge: Strong technical background in the intersection of international development and private/ innovative financing instruments. Ability to utilize existing expertise and connections to apply to PSI’s unique profile and aims. Strong desk research, interview, and facilitation capacity are required to fulfil the scope of work. Ability to clearly and simply articulate complex concepts including to audience members with limited background in innovative financing/ private sector financing concepts and language. Attention to deadlines and deliverables working in an independent fashion.
- Language requirements:
English - expert
7. Place of assignment
PSI is headquartered in Washington, DC. In-person interaction with PSI will be necessary; therefore, there is a preference for Washington DC based consultant(s). However, PSI will consider consultants based in other locations, provided that making several trips to DC over the consultancy period is possible and not price prohibitive.
8. Deadline for submission
Candidates and firms who are interested in this work, please submit any questions about the terms of reference by January 15th, 2019. Candidates and firms who wish to be considered for the work should submit the following by January 25th, 2019:
Questions and final submissions of interest should be made to Fareha Ahmed via email: firstname.lastname@example.org