Step 1 of 7
1. Define the problem
To establish whether it is feasible, taking into consideration the quality of data available, that the authority will be able to develop both a robust business case for the outcome contract and transfer risk to a service provider.
Locate and analyse good quality
data that defines impact and cost.
whether there is sufficient data or evidence to create a good counterfactual
case (the 'do nothing' or alternative option).
whether there high quality data is available to accurately forecast the level
of need for the new intervention.
- If the contract is a social impact bond (SIB), check whether
the value of the current service is likely to meet a minimum viable value (circa £1m over a contract period).
- Establish a
broad consensus amongst key stakeholders of the cost and impact of the problem.