Today SIB News has a story discussing the teenage birth SIB proposed in Washington DC…
Between 1997 and 2011, the number of teen births dropped by 64 percent in D.C. But in Wards 5, 7, and 8, the numbers were still in the double digits, as of 2012: 113, 192 and 265 births, respectively.
In addition to the traditional local and federal funding for programs to combat the teen pregnancy rate, Mayor Vince Gray announced yesterday that D.C. will pursue a Social Impact Bond to “finance services aimed at reducing teen pregnancy and improving education outcomes.”
A social impact bond uses private investment capital to provide the upfront funding needed for evidence-based programs, in this case, one that will reduce teen pregnancy. D.C. will work with the intermediary Social Finance US, which released a Request for Qualifications yesterday. “The mechanism used is a ‘Pay-for-Success’ (PFS) contract, which allows government payors, in this case the District of Columbia, to re-pay a portion of savings and benefits generated if and only if the intervention achieves predefined outcomes,” the RFQ states.
Qualifications to apply for the SIB include “a history of service delivery in the District or demonstrated potential to undertake successful operations in the District; demonstrated capacity for completing program evaluations, tracking program participants, and keeping accurate records; and demonstrated capacity for managing services to meet performance targets.”