1. Hello and welcome
Introduction 1

2. MCC PRINCIPLES LOOKING FORWARD PROCUREMENT PROCESS
We’ll start off by going over the grounding principles of MCC.

3. 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
Investments in people
Economic freedom
What is MCC?
MCC is an innovative foreign aid agency leading the U.S. fight against global poverty
We are a grant provider to countries committed to good governance, economic freedom and investment in their citizens.
Through two types of grants, called Compacts and Threshold Program Grants, MCC supports countries’ efforts to reduce poverty through economic growth.
MCC’s largest grants are Compacts; these range from $100 to $700 million dollars over the course of five years.
MCC was created by the U.S. Congress in 2004 with strong bipartisan support. Our funding is appropriated by Congress for each fiscal year.
MCC is led by a Board of Directors; chaired by the Secretary of State and including the Secretary of Treasury, the U.S. Trade Representative, the USAID Administrator, and members of the private sector.
MCC is relatively small government agency; we are capped by Congress at 300 employees. This enables MCC to be innovative and nimble in its policies and practices. 3

4. Created with bipartisan support by the U.S. Congress in 2004
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

5. Two Types of Programs MCC Compacts Threshold Programs 5-year grants
Large-scale and complex
Awarded to eligible countries as determined by MCC’s eligibility criteria and final vote of the MCC Board of Directors
$8.8 billion awarded as compact grants
24 partner countries in Latin America, Africa, Europe, the Middle East, Asia, and the Pacific (16 active compacts)
Implemented by the partner country government with guidance and oversight from MCC
2- or 3-year grants
Smaller in scale and objectives
Awarded to countries not compact- eligible but committed to improving policy performance
$495 million awarded as Threshold grants
21 partner countries in Latin America, Africa, Europe, the Middle East, and Asia (5 active)
Implemented by MCC and USAID in consultation with the partner country government
Large-scale Compacts generally range from $100 to $700 million over five years.
Smaller-scale Threshold Programs generally range from $12 to $100 million over two or three years.

6. Competitive selection
What’s Different About MCC
Competitive selection
Country-led design
Country-led implementation
Focus on results
Country ownership
Good policies
Results matter
Competitive selection: Countries must become eligible to receive MCC grants based on their performance on certain indicators of governance and freedom
Like primary education rates, immunization rates, freedom of press, efforts to combat corruption, and relative openness of the economy
Country-led solutions: Selected countries identify priorities for economic development and develop proposals in broad consultation within their society, including with private sector stakeholders, NGOs, and members of the public.
MCC teams then work in close partnership with countries to refine their programs.
Country-led implementation: MCC administers a Millennium Challenge Account, or MCA, in each partner country.
Each partner country government is responsible for setting up the MCA as an independent government agency or within an existing government agency. The partner country government manages and oversees all aspects of implementation.
Monitoring of funds is rigorous and transparent. MCC monitors all disbursements and retains full control over funds in order to protect against potential for corruption and fraud. 6

7. Geographic Coverage
Countries become eligible for MCC assistance by scoring well on a series of indicators. We’ll go a bit more in depth on these indicators shortly; in the meantime, you can see here a map of MCC-eligible countries here.
Countries with blue labels have already signed MCC Compacts; countries with green labels have signed smaller Threshold Program grants, and countries with orange labels are eligible to develop an MCC Compact

8. Distribution of Investments
MCC believes strongly in the principle that true economic growth is the only sustainable form of poverty alleviation. In pursuit of economic growth, MCC focuses much of its investments on raising incomes.
Investments in water supply and sanitation and health, education, and community services improve people’s abilities to participate in the local economy
Investments in agricultural infrastructure, agricultural training, entrepreneurship, and renewable energy improve agricultural outputs.
Investments in roads, bridges, railways, ports, and other transportation infrastructure improve farmers’ abilities to get their goods to market.
Investments in good governance, finance and enterprise development, property rights and land policy, and gender integration strengthen policies and encourage entrepreneurial organization and democratic processes

9. MCC PRINCIPLES
LOOKING FORWARD
PROCUREMENT PROCESS

10. Water Sector Project $355 million total
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

11. Power Sector Project $350 million total
Malawi
Power Sector Project $350 million total
Procurement
Timeframe
Program Management Consultant
2012
TA Consultancies
Works (TX, DX, GX)

12. WASH Sector Project $41 million
Cape Verde II
WASH Sector Project $41 million
Procurement
Timeframe
Study – WASH Sector Master Plan
2012
Technical Assistance – Project Management and Change Management (Sector/Utility Reform)
End 2012
Supervisory Engineer – Water and Sanitation Projects
Small Works – Water and Sanitation Projects

13. Green Prosperity (GP) Project $334 million
Indonesia
PICTURE
Green Prosperity (GP) Project $334 million
Procurement
Timeframe
Project Arranger and Oversight Services
2012
Technical Assistance (TA) Consultants
Land Use Planners
Financial Facility Manager
2013
Program Management
Contractors and Equipment Suppliers
2014
Engineers (design and works supervision)

14. Compacts in Development Timeframe for MCA Procurements
Country
Timeframe for MCA Procurements
Sector
Ghana II ?
Benin II
Georgia II
El Salvador II

15. MCC PRINCIPLES LOOKING FORWARD PROCUREMENT PROCESS 9/21/2018
This is a Footer

16. MCC and MCA Opportunities – What, Where
Compact procurements
Administered by MCA Entities.
Contract opportunities – all untied – are published to:
Threshold procurements
Administered by USAID.
Most tied to US companies.
Opportunities published to
MCC corporate procurements
Administered by MCC.
Some tied to US companies.

17. Open, Planned & Awarded Opportunities at/above $200k all posted to
- A one-stop-shop for bidders
So where to find these contract opportunities? This is the website potential bidders should first visit to learn how to bid and what to bid on.
This website has links to the standard bidding documents, the procurement guidelines, and the list of open contract opportunities and planned procurement opportunities.
Open, Planned & Awarded Opportunities at/above $200k all posted to

18. Typical Implementing Structure Sound Fiscal Accountability$$
MCC
Common Payment System
Government
Fiscal Agent/
Funds Control
Accountable
Entity
MCC Rep
Procurement
Agent
Bank Account
Project
Manager 1
Project
Manager 2
Project
Manager 3 $$
Vendor
Vendor
Vendor

19. MCC Program Procurement Guidelines
Fair
Principles
Transparent
Competitive
Open
Similar to World Bank Procurement Guidelines with Important Exceptions:
No Geographic Preferences
US Prohibited Sources ineligible
US or Local Currency only

20. 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?
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
Bidders will be comfortable that MCC uses standard “FIDIC” contracts.
Templates available at
Refer to back up slide if asked for more information.

21. Small Works, Goods & Consulting services
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
For these contracts MCC is using World Bank standards with minor accommodations to reflect MCC regulatory requirements.
Small Works, Goods & Consulting services

22. MCC Program Procurement Guidelines: The Bid Challenge System
First Level Review: Accountable/MCA Entity
Second Level Review: Independent body

23. Lessons Learned
Beware reliance on couriers (DHL, FEDEX) for bid deliveries
Knowledge of local challenges – teaming is encouraged
Read the requirements! Ask questions! Submit EVERYTHING that is requested
Bid Security required – ensure it accompanies the bid
Advance Payment requires a bank guarantee
Performance Guarantees required from bank acceptable to the MCA entity – budget for them
Price reasonableness – low bid doesn’t always win if it doesn’t make sense
The SBD form contracts are MCC reviewed and approved – agree to them before bidding

24. 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

25. For more information, visit www.mcc.gov.