1. TITLE

   Using Social Finance Mechanisms For Crime Prevention Projects

2. OBJECTIVE

   The purpose of the work is to implement crime prevention project(s) using social finance funding mechanisms.

   Phase 1: Completion of the pilot project.

   Phase 2: Task Authorization - As required, assist with the development of future social finance-related projects.

   At the end of Phase 1, PS will determine whether or not to proceed to Phase 2. Phase 2 will be managed through a Task Authorization.

3. BACKGROUND

   The Government of Canada is committed to creating safer communities. Public Safety Canada (PS) supports this objective by offering effective crime prevention, policing and corrections programs and policies. Under the National Crime Prevention Strategy (NCPS), PS provides national leadership on effective and cost-efficient ways to prevent and reduce crime by intervening on crime-related risk factors in high risk populations and places by providing time-limited grants and contributions to organizations across the country. By implementing and evaluating targeted, evidence-based crime prevention interventions, the NCPS supports the development and dissemination of practical knowledge on crime prevention which fosters the adoption of effective practices.

   To advance and augment current investments in crime prevention, it is important to look at forging new partnerships and exploring different funding opportunities. PS is experimenting with the use of social finance funding mechanisms to leverage new partners, new ideas and new sources of funds to expand the reach of evidence-based crime prevention practices to more communities across Canada.

Social finance is an approach to mobilizing multiple sources of capital that delivers a social dividend and an economic return in the achievement of social and environmental goals. Social finance provides opportunities to leverage additional investments to increase the available dollars to scale up proven approaches that address social and environmental challenges. It also creates opportunities for investors to finance projects that benefit society and for community organizations to access new sources of funds.

In February 2015, the Standing Committee on Public Safety and National Security (SECU) tabled its report “Social Finance as it Relates to Crime Prevention in Canada” which contains ten recommendations for the Government’s consideration. The report is available online at: https://www.ourcommons.ca/DocumentViewer/en/41-2/SECU/report-9. To support the Government of Canada in moving forward on the recommendations in the above noted SECU study, PS is testing the use of a social financial mechanism in a pilot project.

Under a previous contract, PS sought expert advice on whether the department’s crime prevention funding programs would be amenable for a social finance-based pilot project. The contractor was asked to evaluate known social finance mechanisms, using their subject matter expertise, for application in the crime prevention context. The result of the contractor’s assessment indicated that several crime prevention project models could be suitable to implement a social finance pilot project, specifically by creating a Social Impact Bond (SIB). One project model was selected for SIB design and implementation. The previous contract completed significant work on designing the SIB. This contract will focus primarily on implementing the SIB, applying the design elements already constructed under the previous contract. This contract will complete the remaining project design requirements as well as lay the groundwork for future social finance projects at PS.

Under the previous contract, the following details for the pilot project were developed:

• The feasibility assessment of developing a SIB in the domain of crime prevention, using existing crime prevention models;

• Intervention design elements specific to the SIB;

• The objectives, expected outcome metrics and corresponding targets of the pilot project based on existing evidence of the efficacy of the project model;

• The amount that should be paid as a premium to investors for the successful attainment of pre-determined goals by the crime prevention project model stakeholders during the pilot and a preliminary financial model;

• The selection of the target population, potential intervention locations, and the estimation of preliminary budgets;

• The outline of a preliminary evaluation framework including a strategy for data capture and a plan for performance management for the pilot project; and

• Draft investors opportunity materials including the preliminary business case and preliminary financial modeling.

  4. CONSTRAINTS

  Given that this is a pilot project, it is possible that the intervention service provider may choose to end its partnership in the development of this project if investors are not found in a reasonable length of time. Should that occur, PS may consider moving forward with the tasks identified under Phase 2, should there be a continued interest in developing another project.

  5. TASKS

  Phase 1 – Development of the Pilot Project

  Under Phase 1, the Contractor will secure investors to participate in the pilot project, using their own connections and expertise in the area of impact investing. The Contractor will procure the services of a validator who will be responsible for verifying the data submitted by the service provider. Additionally, the Contractor will provide advisory services to assist with the development of all contractual documentation required to negotiate investor participation in this pilot project.

  In the course of providing advice and recommendations on how to best proceed with developing and implementing a social finance pilot project, the contractor may be required to complete, but not limited to

  the following items, among others:

  5.1 Attend an information session (kick-off meeting) with the Project Authority (PA) and other key personnel from PS, in person or by teleconference, within five (5) days of contract award in order to confirm the overall requirements and specific objectives, the project plan and to clarify any issues. 

  5.2 Submit a work plan within ten days (10) days of contract award that outlines the critical path including actions, milestones and timelines for the implementation of the pilot project. The Project Authority must approve the work plan prior to the initiation of any further work.

  5.3 Develop tools for investor solicitation, including but not limited to: the business case; a summary of investment terms; investors opportunity materials; financial modeling; and any other document deemed necessary by the Project Authority to enable the participation of investors in the pilot project;

  5.4 In order to raise capital investments in the pilot project, the Contractor shall present the investment opportunity to potential investors, and/or facilitate the introduction of potential investors to Project Team members, as appropriate, including assisting any due diligence processes requested by the potential investors;

  5.5 Provide feedback to the Project Authority on the results of each of the meetings with potential investors, particularly highlighting reasons investors choose not to participate in the project, in order to develop lessons learned for future social finance projects;

  5.6 Secure binding investor participation commitment in the pilot project;

  5.7 Assist the service provider with the structuring of the financial investment mechanism and signing of agreements between the service provider and the investors;

  5.8 Procure an independent validator including developing the Request for Proposals, evaluating those proposals and selecting the winning candidate, in consultation with the Project Authority;

  5.9 Selection of an independent validator who will be verifying data provided by the service provider for the duration of the pilot project;

  5.10 Inform the selected validator of the context of the pilot project and social finance funding mechanics as needed to perform their duties over the duration of the pilot;

  5.11 Develop the terms of reference for the SIB Advisory Board that will oversee the implementation of the pilot project;

  5.12 Work with the Project Authority and the Communications team at PS to prepare for the public announcement of the launch of the pilot project including liaising with project participants on the development of announcement materials and assisting with the launch event;

  5.13 Throughout the development of the pilot (prior to the launch of the project), the Contractor must mitigate any risks or challenges that may arise and must notify the Project Authority immediately.

  5.14 Report back to Public Safety and stakeholders on the progress of the pilot project on a weekly basis or as requested.

  5.15 At the end of the pilot project, the Contractor must submit a summary report to the Project Authority for review and approval. The summary report must, at a minimum, address lessons learned, risks and/or challenges, and recommendations on how to proceed with future pilot projects.

Phase 2 - Development of Future Projects – Task Authorization Based

Should the Department choose to launch another project using a social finance payment mechanism, in addition to the tasks specified in Phase 1, the following tasks may also be required, but not limited to:

5.16 Selecting an intervention model;

5.17 Designing the project in detail;

5.18 Selecting the outcome metrics and targets;

5.19 Designing the financial model and the payment mechanisms;

5.20 Engaging with investors in order to secure their participation in the project;

5.21 Developing the legal structure around the project;

5.22 Selecting a validator to verify data captured to measure outcomes;

5.23 Developing the contracts/agreements that will bind the parties to the project; and

5.24 Assisting with the public launch of the project.

6. DELIVERABLES

The Contractor must submit the following deliverables:

Phase 1 – Development of the Pilot Project

6.1 A work plan, including milestones and timelines;

6.2 Presentation and other supporting materials for the solicitation of potential investors (i.e. investors opportunity materials);

6.3 Weekly/bi-weekly reports on the status of investor solicitation including but not limited the type of investor contacted (high net worth individual, foundation or corporation), the method of contact, and result of contact.

6.4 All other contractual documentation required for the inclusion of investing partners in the pilot project;

6.5 Signed contracts with the service providers, investors and outcome funder that will secure all the capital required for the implementation of the pilot project;

6.6 An evaluation framework and the performance management plan;

6.7 A financial vehicle to house investor capital, if required; 

6.8 Terms of Reference for the SIB Advisory Board that will oversee the implementation of the pilot project;

6.9 Finalized communications strategy and public announcement materials, developed in partnership with the Project Authority;

6.10 Ongoing status reports (either through regular meetings or formal reporting);

6.11 Summary reports, including lessons learned, for the pilot project at the end of Phase 1.

Phase 2 - Development of Future Projects – Task Authorization Based

6.12 A recommendation on which intervention model to use in the project;

6.13 Project plans in detail including locations, target audience and preliminary budgets;

6.14 Outcome metrics and targets;

6.15 A financial model including the payment timelines;

6.16 Investors opportunity materials to provide to investors;

6.17 Signed legal documents binding the parties to the terms of the project;

6.18 A validator to verify data captured to measure outcomes; and

6.19 A public launch/announcement of the project, in collaboration with the Project Authority.

6.20 Any other deliverables that may be required, to be discussed and negotiated through a Task Authorization after completion of Phase 1.

7. LOCATION OF THE WORK

The Contractor will be expected to work from its own location. However, the Contractor will be expected to attend PS-led meetings in Ottawa, ON, and potentially in the jurisdiction(s) where the pilot project is being tested. The exact location of any meeting will be negotiated between the Project Authority and the Contractor and as agreed to and as specified in the work plan.

The Contractor must be available for teleconference calls as required. 

8. LANGUAGE

8.1 All communications with Public Safety Canada staff and the Canadian public (if applicable) must be performed in the official language (English or French) preferred by the employee/citizen.

8.2 All deliverables must be submitted in English.

8.3 PS will arrange for the translation of Contractor-produced deliverables, as required.

3. Period of Work

The period of the Contract is from date of contract award to approximately March 31, 2020

This bid solicitation is being issued to satisfy the requirement of Public Safety Canada [the “Client”] for the provision of resources as and when required for “Using Social Finance Mechanisms For Crime Prevention Projects” for Public Safety Canada It is intended to result in the award of one contract for a period of approximately two years with three additional three year option periods.

4. Evaluation Process and Selection Methodology

Basis of selection – Highest Combined Rating of Technical Merit 70% and Price 30 %. Detailed in the RFP, Part 5

5. Contracting Authority

Jennifer Yee

Contracting and Procurement Section

Public Safety Canada

269 Laurier Avenue West, 13^th Floor

Ottawa, Ontario K1A 0P9

Tel: 613-949-1048

Fax: 613-954-1871

Email: ps.contractunit-unitedecontrats.sp@canada.ca

The Contracting Authority is responsible for all matters of a contractual nature.

6. Enquiries - solicitation stage

All enquiries or issues concerning this procurement must be submitted in writing to the Contracting Authority named as early as possible within the bidding period.

Enquiries and issues must be received by the Contracting Authority no later than five (5) business days prior to the bid closing date specified on the cover page or this RFP document to allow sufficient time to provide a response. Enquiries or issues received after that time may not be able to be answered prior to the bid closing date. To ensure consistency and quality of information provided to Bidders, the Contracting Authority will provide, simultaneously to all bidders to which this solicitation has been sent, any information with respect to significant enquiries received and the replies to such enquiries without revealing the sources of the enquiries.

It is the responsibility of the Bidder to obtain clarification of the requirements contained herein, if necessary, prior to submitting a bid.

7. Intellectual Property

The intellectual property shall vest with Canada under the following exception:

6.4 Where the main purpose of the Crown Procurement Contract, or of the deliverables contracted for, is:

6.4.1 to generate knowledge and information for public dissemination;

8. Security

There is no security requirement identified.