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MCC Overview & InfrastructureMCC Overview & Infrastructure

Procurement Process and Opportunities

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MCC is an innovative foreign assistance institution designed to “reduce poverty through sustainable economic growth”

MCC is managed by a Chief Executive Officer and aMCC is managed by a Chief Executive Officer and a public-private Board of Directors comprised of:

• MCC CEO• Secretary of State• Secretary of the Treasury

U S T d R t ti• U.S. Trade Representative • USAID Administrator • Individuals from the private sectorp

Two forms of grant assistance with original commitments totaling $7.6 Billion:

• Compact Programs: US$7.1 billion• Threshold Programs: US$470 million

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Threshold Programs: US$470 million

MCC Core Principles

1 Sound governance economic and social policies:1. Sound governance, economic and social policies:

• Support countries who can use assistance effectively

• Spur private investment and increased trade theSpur private investment and increased trade, the real engines of growth

2. Country ownership:

• Increases responsibility

• Builds capacity

• Yields better results

3. Clear objectives and measurement of results:

• Increase accountability

• Contribute to development success

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Policies Matter – Annual Competition

Country Scorecards

MalawiCompact Eligible

KenyaThreshold Eligible

FY 2010

5* Compact-Eligible Countries are hereafter referred to as “Compact Countries”

Country Ownership is Critical – Proposal Development

“MCC has had a transformative effect across the developing worldMCC has had a transformative effect across the developing world. Responsible, reform-minded governments have set their sights on the MCC benchmarks, and this has accelerated the pace of reform while

empowering governments to make decisions on their own path ofempowering governments to make decisions on their own path of development and the direction of their future.”

-- Ellen Johnson Sirleaf, President of Liberia, October 2008

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MCC’s Compact Program

Unique MCC Characteristics

• MCC signs a Compact with the eligible country after they have designed a program to promote MCC: US foreign y g p g peconomic growth.

• The Compact details the projects to be funded and the implementing arrangements.

assistance agency designed to “reduce • MCC eligible countries form accountable

entities (e.g., MCA-Senegal) which are responsible for implementing the Compact and

l ti t t

to “reduce poverty through sustainable selecting contractors.

• At “entry into force” of the Compact all funding is obligated, reducing risk to implementers.C t f d t b t ithi 5

sustainable economic growth”

• Compact funds must be spent within 5 years.

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Where MCC Has Operated Since 2004

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MCC signed three new compacts in 2010:• Moldova - $262 million for agricultural development and

transportation infrastructure• Philippines - $434 million for transportation

infrastructure, community development, and improvement of government servicesimprovement of government services

• Jordan - $275 million for water and sanitation infrastructureinfrastructure

• Malawi Compact approved in Jan 2011Malawi Compact approved in Jan. 2011• Zambia and Indonesia compact-eligible• Ghana Georgia and Cape Verde eligible for second• Ghana, Georgia, and Cape Verde eligible for second

compacts

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What MCC Funds$7.9 Billion in 22 Compacts

In the pipeline: Malawi, Zambia, Indonesia;

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In the pipeline: Malawi, Zambia, Indonesia;2nd Compacts for Cape Verde, Georgia, Ghana

Infrastructure -- Services Procured

By MCAs

By MCCDue Diligence

• Project Management Consulting

• Due Diligence Support • Feasibility Studies

• SEAs EIAs RAPs• Feasibility Studies, EIAs, RAPs

• SEAs, EIAs, RAPs• Design & Preparation

of Bidding Documents• Independent Engineering Services

of Bidding Documents• Construction

S i i• Specialty Consulting Supervision• Construction • Specialty Consulting11

MCC Standard Bidding Documents

• In Nov 2007, MCC decided to create Standard Bidding Documents for:• Consulting servicesg• Small works• Large works – Design-Bid-Build

L W k D i B ild• Large Works – Design-Build• Goods• And others

• Why?• Consistent approach• Consistent approach• International standards known in the market• Cost/price management• Risks consistent from contract to contract• A bidder on a road in one country can count on the same general

conditions of contract if/when they bid on a road in another country

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co d o s o co ac / e ey b d o a oad a o e cou y

Comments/suggestions: mccsbd@mcc.gov

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 regulatory requirements.

Evaluation Criteria

Eligibility• No conflicts of interest

TechnicalGeneral similar &

Financial• Audited financial• No conflicts of interest

• No GOEs• Any nationality (with

• General, similar & specific experience

• Environmental and

• Audited financial statements

• Size (turnover) in y y (few restrictions)

• No debarred and excluded parties

social documents• Health and safety

documents

relation to contract• Financial ratios (current

ratio debt ratio)excluded parties• No history of non-

performing contracts or

documents• Technical offer – work

program, method t t t h fl

ratio, debt ratio)• Financial resources

(cash flow requirement)of litigation

• Other disqualifiersstatement, cash flow projection

• Construction

• Able to obtain securities (bid, performance, advance

equipment• Project management

organization &

p ,payment)

organization & personnel 14

Compacts & InfrastructureCompacts & Infrastructure

Procurement Process & Opportunities

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Compact procurementsCompact procurements• Administered by MCA Entities. • Contract opportunities are

published to:published to:1. http://www.mcc.gov/2. http://mcc.dgMarket.com/ 3. http://www.devbusiness.com/p

Threshold procurements• Administered by USAID• Administered by USAID.• Most tied to US companies.• Opportunities published to

http://www.FedBizOpps.gov/p pp g

MCC corporate procurements• Administered by MCC• Administered by MCC.• Some tied to US companies.• Opportunities published to

http://www.FedBizOpps.gov/16

http://www.FedBizOpps.gov/

www.MCC.gov: One-stop-shop for Bidders

Open Planned & Awarded Opportunities at/above $200k all posted to17

Open, Planned & Awarded Opportunities at/above $200k all posted tohttp://www.mcc.gov/pages/business

MCC Procurement PrinciplesMCC Procurement Principles

• Open, fair and competitive procedures • Solicitations based on clear and accurateSolicitations based on clear and accurate

descriptionsC t t d d l t ibl• Contracts awarded only to responsible suppliers and contractors

• No more than a commercially reasonable price shall be paidprice shall be paid

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MCC Program Procurement Guidelines

Fair

PrinciplesTransparent Competitive

Open

Si il t W ld B k P t G id li ith I t tSimilar to World Bank Procurement Guidelines with Important Exceptions:

• Provides broader advertising requirements for procurement opportunities • Tightens restrictions on currency use• Tightens restrictions on currency use• Prohibits national preference in the procuring of goods, works and services• Includes the excluded parties list under U.S. laws and policies • Identifies English as the official operating language for MCC funded

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Identifies English as the official operating language for MCC funded procurements

• Excludes Government Owned Enterprises from being awarded MCC funded contracts

MCC Program Procurement Guidelines:The Bid Challenge SystemThe Bid Challenge System

First Level Review: Accountable/MCA EntitySecond Level Review: Independent bodySecond Level Review: Independent body

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Procurement Opportunities

21http://www.mcc.gov/business/compactprocurements

Spanish Companies Working in MCA CountriesSpanish Companies Working in MCA Countries

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The Senegal Compact

Road Project$324 million total

Irrigation/Water$170 million total

Procurement TimeframeIrrigation: Delta Lot 1 (Canals) Works May/June 2011

Irrigation: Delta Lot 2 (Drains) Works May/June 2011

Irrigation: Ngalenka Works March/April 2011g g p

Roads: RN2 Works May 2011

Roads: RN6 Lot 1 (Zig to Tanaff) Works July 2011Roads: RN6 Lot 1 (Zig to Tanaff) Works July 2011

Roads: RN6 Lot 2 (Tanaff to Kolda) Works including Kolda Bridge*

Oct 2011

R d RN6 L t 3 (K ld t V li ) W k J 201223

Roads: RN6 Lot 3 (Kolda to Velingara) Works Jan 2012

MCC Model: A More Level Playing Field

• No preferences for U.S. or domestic contractors: Compacts are “untied”.• No Government Owned Enterprises may bid (new requirement).No Government Owned Enterprises may bid (new requirement).

• Past experience & environmental, health, safety, labor standards matter.• Open and competitive procurements.Open and competitive procurements.• Award decisions made by technically qualified experts.• Price reasonableness – low bid doesn’t always win if it doesn’t make

sense.

• Professional independent oversight of contract performance.

24• Checks and balances to guard against abusive discretion.

Doing Business With MCC

WWW.MCC.GOVWWW.MCC.GOV

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MCC Policy on Government Owned Enterprisesy p

T d i i i l d h b• Transparency and open competition in procurement lead to the best value for taxpayer money and stretches MCC’s resources. – Companies from 54 countries have won MCC-funded contracts. No p

single nation’s companies have dominated MCC contracting.• Noting that GOEs often compete with some form of support from

their home government MCC took action to help ensure a leveltheir home government, MCC took action to help ensure a level playing field for commercial firms from all countries to compete for MCC-funded contracts. MCC i d th PPG t l d f GOE ti f MCC• MCC revised the PPG to exclude from GOEs competing for MCC-funded contracts, except in certain cases. – The restriction on the eligibility of GOEs does not apply to Government-

owned educational, research, and statistical institutions and other technical units of government not formed primarily for a commercial or business purpose.

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Compact Implementing Structure

MCC $$

Washington, DC

Host Country Common Payment

MCC Resident

Government

AccountableEntity (MCA)

Fiscal Agent/Funds Control

Payment System (Paid from

US Treasury)

Mission Entity (MCA)Procurement

AgentBank

Account

$$

Project Manager 1

Project Manager 2

Project Manager 3

$$

ContractorContractor Contractor

28Ensures Sound Fiscal Accountability

Compacts & InfrastructureCompacts & Infrastructure

Procurement Process

MCC & Private Sector

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MCC’s Compact Program

Attractions for Private Sector

• Countries qualify for MCC assistance by supporting q y y pp gan environment conducive for private sector led growth including control of corruption.

• At “entry into force” of the Compact all funding is obligated, reducing risk to implementers.O titi f t ith t d d• Open competition for procurements with standard forms of contract.

• Vendors paid directly by USG• Vendors paid directly by USG.• Payments subject to Prompt Payment Act.

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MCC Initiatives with the Private Sector

COMPACT DEVELOPMENT COMPACT IMPLEMENTATION

Leveraging ToolkitM d l t l MCC f di ith i t t i t tModels to lever MCC funding with private sector investment

Investment / Trade OpportunitiesStrategic outreach to the private sector to benefit from MCC investmentsStrategic outreach to the private sector to benefit from MCC investments

Strategic PartnershipsPartnerships to support and benefit from

Private Sector Dialogue

p ppMCC investments and long-term private sector led growth

Procurement OpportunitiesInt’l businesses provide feedback

to MCA teamsAwareness and promotion of MCC, Compact & Threshold opportunities

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MCC Outreach

MCC has reached out to the private sector:• Entered into a number of MOUs with corporations• Participated in dozens of roundtables and conferences• Met with thousands of individuals across range of

icompanies• Maintains database of over 1,600 contacts with specific

areas of interestareas of interest• Collaborating with other USG agencies (Commerce,

USTDA SBA State) to expand outreach effortsUSTDA, SBA, State) to expand outreach efforts

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