Transcript Slide 1

MCC PRINCIPLES
LOOKING FORWARD
PROCUREMENT PROCESS
What is MCC
• The Millennium Challenge Corporation is a U.S. Government
agency designed to reduce poverty through economic growth in
select developing countries.
Good
governance
Economic
freedom
Investments
in people
MCC’s Mandate
Reduce poverty through economic growth
• Created with bipartisan support by
the U.S. Congress in 2004
• Led by a governing Board of
Directors:
• Secretary of State (Chair)
• MCC Chief Executive Officer
• Secretary of the Treasury
• U.S. Trade Representative
• USAID Administrator
• Four members of the private sector
Two Types of Programs
MCC Compacts
Threshold Programs
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5-year grants
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2- or 3-year grants
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Large-scale and complex
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Smaller in scale and objectives
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Awarded to eligible countries as
determined by MCC’s eligibility criteria
and final vote of the MCC Board of
Directors
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Awarded to countries not compacteligible but committed to improving
policy performance
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$495 million awarded as Threshold
grants
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$8.8 billion awarded as compact grants
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24 partner countries in Latin America,
Africa, Europe, the Middle East, Asia,
and the Pacific (16 active compacts)
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21 partner countries in Latin America,
Africa, Europe, the Middle East, and
Asia (5 active)
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Implemented by the partner country
government with guidance and
oversight from MCC
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Implemented by MCC and USAID in
consultation with the partner country
government
What’s Different About MCC
Competitive selection
Country-led design
Country-led implementation
Focus on results
Country ownership
Good policies
Results matter
Geographic Coverage
Distribution of Investments
Program Admin
& Monitoring
11%
Health, Education
& Comm Servs
7%
Transport 36%
Governance
4%
Energy 7%
Financial
Services 6%
Water Supply &
Sanitation 9%
Agriculture 20%
MCC PRINCIPLES
LOOKING FORWARD
PROCUREMENT PROCESS
Zambia
Water Sector Project
$355 million total
Procurement
Timeframe
Program Management Consultant
2012
Lusaka Water and Sanitation Projects – Works
2013
Lusaka Drainage Project – Works
2013–14
Technical Assistance Consultancies
2013 –14
Malawi
Power Sector Project
$350 million total
Procurement
Program Management Consultant
Timeframe
2012
TA Consultancies
2012-13
Works (TX, DX, GX)
2014-15
Cape Verde II
WASH Sector Project
$41 million
Procurement
Study – WASH Sector Master Plan
Technical Assistance – Project Management and
Change Management (Sector/Utility Reform)
Timeframe
2012
End 2012
Supervisory Engineer – Water and Sanitation Projects
2014-15
Small Works – Water and Sanitation Projects
2014-15
Indonesia
PICTURE
Green Prosperity (GP) Project
$334 million
Procurement
Timeframe
Project Arranger and Oversight Services
2012
Technical Assistance (TA) Consultants
2012
Land Use Planners
2012
Financial Facility Manager
2013
Program Management
2013
Contractors and Equipment Suppliers
2014
Engineers (design and works supervision)
2014
Compacts in Development
Country
Timeframe for MCA
Procurements
Sector
Ghana II
2013-14
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Benin II
2013-14
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Georgia II
2013-14
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El Salvador II
2013-14
?
MCC PRINCIPLES
LOOKING FORWARD
PROCUREMENT PROCESS
7/16/2015
This is a Footer
MCC and MCA Opportunities – What, Where
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Compact procurements
Administered by MCA Entities.
Contract opportunities – all untied – are
published to:
1. http://www.mcc.gov/
2. http://mcc.dgMarket.com/
3. http://www.devbusiness.com/
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Threshold procurements
Administered by USAID.
Most tied to US companies.
Opportunities published to
http://www.FedBizOpps.gov/
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MCC corporate procurements
Administered by MCC.
Some tied to US companies.
Opportunities published to
http://www.FedBizOpps.gov/
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www.mcc.gov - A one-stop-shop for bidders
Open, Planned & Awarded Opportunities at/above $200k all posted to
http://www.mcc.gov/mcc/procurement/index.shtml
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Typical Implementing Structure
Sound Fiscal Accountability
$$
MCC
Common
Payment
System
Government
Fiscal Agent/
Funds Control
MCC Rep
Project
Manager 1
Accountable
Entity
Project
Manager 2
Procurement
Agent
Bank
Account
Project
Manager 3
$$
Vendor
Vendor
Vendor
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MCC Program Procurement Guidelines
Fair
Transparent
Principles
Competitive
Open
Similar to World Bank Procurement Guidelines with Important Exceptions:
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No Geographic Preferences
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US Prohibited Sources ineligible
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US or Local Currency only
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Standard Bidding Documents
In Nov 2007, MCC decided to create Standard Bidding Documents for:
• Small works
• Consulting services
• Design bid build
• Design build
• Goods
• And others
Why?
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Consistent approach
International standards known in the market: FIDIC
Cost/price management
Risks consistent from contract to contract
A bidder on a road in Tanzania can count on the same general conditions of
contract if/when they bid on a road in another country
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Forms of Contract
Large Works
MCC has purchased licenses from the International Federation of Consulting Engineers
(FIDIC) for large works:
Design bid build (Red Book)
Design build (Yellow Book)
MCC General conditions – identical in all FIDIC contracts Conditions of Particular
Application (COPAs) supplement and amend the General Conditions
Small Works, Goods & Consulting services
For these contracts MCC is using World Bank standards with minor accommodations to
reflect MCC regulatory requirements.
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MCC Program Procurement Guidelines:
The Bid Challenge System
First Level Review: Accountable/MCA Entity
Second Level Review: Independent body
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Lessons Learned
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Beware reliance on couriers (DHL, FEDEX) for bid deliveries
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Knowledge of local challenges – teaming is encouraged
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Read the requirements! Ask questions! Submit EVERYTHING that is requested
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Bid Security required – ensure it accompanies the bid
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Advance Payment requires a bank guarantee
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Performance Guarantees required from bank acceptable to the MCA entity – budget for them
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Price reasonableness – low bid doesn’t always win if it doesn’t make sense
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The SBD form contracts are MCC reviewed and approved – agree to them before bidding
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MCC Model: A Fairer Playing Field
• No preferences for U.S. or domestic contractors: Compacts are “untied”
• Government Owned Enterprises (GOE) not eligible
• Past experience and environmental, health, safety, labor standards matter
• Open and competitive procurements
• Award decisions made by technically qualified experts
• Professional independent oversight of contract performance
• All funds are obligated when Compacts enter into force
• Contractors paid directly by USG through the Common Payment System
• Checks and balances to guard against abusive discretion
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For more information, visit www.mcc.gov.