Attachment 3 - Statement of Work.pdf

Statement of Work for MBO Consultant Support

Support to the Development of the Solomon Islands Threshold Program

I. Introduction

MCC is seeking a part-time independent consultant to support the development of the Solomon Islands Threshold Program. The consultant would be based in Solomon Islands (preferred) or in the in South Pacific region. Under this Statement of Work (SOW), the consultant would provide logistical, operational, and relationship-management support for MCC’s efforts to develop the Solomon Islands Threshold Program, including an on-the-ground presence in Honiara, Solomon Islands.

II. Background and Status of Engagement

The U.S. Congress created the Millennium Challenge Corporation (MCC) in 2004 to serve as an innovative foreign aid agency dedicated to alleviating global poverty. MCC is governed by a Board of Directors comprised of members from the public and private sectors, and chaired by the Secretary of State. As a provider of U.S. Government foreign assistance, MCC is distinctive in its focused mandate to reduce poverty through economic growth in a select number of well governed low-income and lower middle-income countries. MCC achieves this mandate by providing two types of grant assistance programs --threshold and compact -- to countries committed to good democratic governance, economic freedom, and investing in their citizens.

In December 2018, the Board of Directors of the Millennium Challenge Corporation (MCC) selected the Solomon Islands as eligible to develop a Threshold Program. A Threshold Program is a grant to a country to support policy and institutional reform. Policy reforms involve changes in laws, regulations, administrative procedures, and other formal and informal rules and practices that govern a given sector or service. Institutional reforms involve improvements to the institutions or the creation of new institutions that provide regulation, oversight, or implementation in a targeted sector. In general, policy and institutional reform involves executing new approaches and implementing changes in behavior to enhance governance in a sector, placing an emphasis on efficiency, transparency, accountability, and beneficiary feedback and participation.

MCC Threshold Program Phases MCC’s Board of Directors meets each December to make selections for MCC’s Threshold Programs. Once a country is designated by the Board as threshold eligible, a program development and implementation process begins that is comprised of four key phases, described in greater detail below: (1) program launch;

(2) diagnostics; (3) program design; and (4) implementation. It is important to note that MCC manages program development from its headquarters in Washington, DC with frequent 2-week missions to Solomon Islands. MCC typically does not place staff on the ground until a program is in implementation.

MCC is currently in the diagnostic phase of program development.

Consultant SOW – Solomon Islands Threshold Program Development

Program Development in the Solomon Islands

Below is a brief description of the history and status of MCC’s program development in the Solomon Islands.

Phase 1: Program Launch (February 2019)

After selection by MCC’s Board of Directors as eligible to develop a threshold program, a delegation of MCC’s senior management conducts a country mission to officially kick off program development. For the Solomon Islands threshold program, this mission occurred in February 2019.

Phase 2: Diagnostics (est. March 2019 – February 2020)

The Constraints Analysis

The first major exercise in the diagnostics phase is the data-driven and methodologically rigorous constraints analysis (CA). The CA seeks to identify the most binding constraints to economic growth using a growth diagnostics framework. The analysis identifies, characterizes quantitatively, and prioritizes the fundamental constraints to private investment and economic growth. In practice, the CA identifies a small number of core impediments to growth. This analysis does not simply produce an exhaustive list of all possible economic concerns, but rather identifies those that represent the most binding constraints to growth.

In partnership with the Government of Solomon Islands (GoSI), an MCC team of economists, private sector specialists and gender and social inclusion experts began the CA in March 2019 through desk research combined with multiple trips to Solomon Islands. The Constraints Analysis for the Solomon Islands is expected to be finalized in December 2019.

Root Cause Analysis

After identifying a small number of binding constraints, MCC and country stakeholders examine the root causes of these constraints. The “root cause analysis” which tends to be deeper sector analysis, includes both primary and secondary source research conducted by the partner government, donor community, academic institutions, private sector actors, regional bodies, international governmental and non-governmental organizations, and civil society. When existing research is available and is directly relevant to the development of a program, the level of effort invested by MCC and the threshold country will be adjusted accordingly. The root cause analysis also involves extensive consultation with stakeholders in the sector. This consultation often takes the form of workshops which provide an opportunity for stakeholders with a variety of perspectives to discuss the nature of a sector constraint and its underlying causes.

How do these Diagnostics inform Program Development?

The results of the diagnostics conducted do not dictate specific projects to be funded by MCC, but rather provide a framework for considering appropriate projects that will address the identified constraints and stimulate economic growth. In sum, the diagnostic analysis serves as the starting point for developing a threshold program that addresses country priorities and is consistent with MCC’s mission to reduce poverty through economic growth.

Phase 3: Threshold Program Design (est. March 2020 – November 2020)

Opportunity Memo

Based on the completed diagnostic results which include identified binding constraints to economic growth and root causes of each, MCC will work closely with the GoSI to develop project proposal(s) that seek to overcome the identified policy and institutional challenges for the identified binding constraint.

The proposal(s) provides the foundation upon which more detailed projects can later be developed. The MCC team will then use the agreed-upon project proposal(s) to draft and present an Opportunity Memo that will recommend the selected proposal(s) based on MCC’s investment criteria and requests formal authorization to move forward into the project design phase.

Investment Memo

After the IMC has approved the concepts identified in the Opportunity Memo, the next phase of program development is transforming the selected concept(s) into fully fleshed out project(s), with detailed project designs. MCC and the partner country will work together to prepare a detailed description of the specific components that make up the substance of each proposed project. To accomplish this, MCC and the GoSI will: (1) define the project components; (2) estimate their total costs; (3) expand the preliminary theory of change into a more complete project logic that connects each component to a series of intermediate outputs and long-term impacts; (4) identify expected beneficiaries; (5) indicate the conditions and timeline for implementation; and, (6) highlight the full range of potential risks and other issues associated with the proposed project(s). Stakeholder workshops, field visits, and extensive consultations with government officials, civil society, and the private sector should be conducted to help inform project design.

Once the detailed project design work is completed, the MCC team will use the detailed project design/s to prepare and present an Investment Memo to MCC’s Investment Management Committee which will vote on whether to recommend that the CEO submit the program to the MCC Board of Directors for final approval.

Negotiations and Signing

After Board approval, MCC and the GoSI will meet to negotiate the terms of the threshold program grant agreement. The threshold program grant agreement stipulates the terms of the program and is signed by both MCC and the GoSI. This document has the status of an international treaty. After the Solomon Islands threshold program grant agreement has been agreed to by both parties, MCC will work with the GoSI to organize a signing ceremony.

Phase 4: Threshold Country Program Implementation (est. 2021-2025)

Threshold Programs may be implemented using varying mechanisms as appropriate for each country and the focus of the program, with the goal of maximizing effectiveness and efficiency of program implementation.

MCC typically hires a Resident Threshold Director (RTD) to oversee implementation in-country. The RTD is supported by MCC’s technical team which provides oversight and technical support from Washington, DC, making frequent country missions. For the Solomon Islands threshold program, a decision about how to lead program implementation, and the need for an RTD, will be made once an implementation model is finalized.

III. Country

Solomon Islands

IV. Tasks

The Consultant will provide in-country support throughout the development of the Solomon Islands Threshold Program. Program development began in February 2019 and is tentatively expected to continue through November 2020. The Consultant may be requested to assist with pre-implementation activities as well that will begin after program development is finalized (post-November 2020). The Consultant will report to an MCC Threshold Program Director who leads the Solomon Islands threshold program development. Support will include, but is not limited to:

(i) serving as coordinator and in-country contact for MCC Solomon Islands team members and consultants who travel to Solomon Islands to develop the threshold program;

(ii) maintaining engagement with threshold program stakeholders (including civil society, media, academia, and others) to ensure transparency of the threshold program development process and efficient information gathering, consultation and communication with key stakeholders in country;

(iii) keeping track of relevant private sector and/or donor activities related to the threshold program;

(iv) liaising with relevant private sector firms and donors involved in relevant threshold program activities;

(v) keeping the MCC team apprised of any political developments that may affect the MCC threshold program development process or timeline;

(vi) making logistical arrangements for MCC missions to Solomon Islands, including coordinating agendas, securing conference rooms, preparing materials, etc.; and

(vii) liaising with GoSI counterparts to follow-up on pending issues.

V. Illustrative Outputs

Activity Key Outputs Estimated LOE

Examples of Reporting

Donor Matrix Develop matrix of ongoing donor activity in Solomon Islands, including targeted sectors, activity descriptions, estimated budget, timing, etc.

Maintain donor matrix updated

40 hours

Written Summaries Short, written updates on changes to the political environment, changes in government priorities, or other relevant topics with the potential to impact program development.

Compilations of relevant press articles

Will vary

Examples of Mission Planning and Organizational Support

(1) Root Cause Analysis Mission

(2) Opportunity Memo Mission

(3) Investment Memo Mission

In coordination with GoSI counterparts, develop agenda, including setting up meetings, securing conference space, communicating mission objectives to key stakeholders

Participate in meetings and take detailed notes

Make logistical arrangements for MCC team members, including hotel room reservations, transportation arrangements, etc.

60 hours preparation/ mission

2 week mission (80 hours)

40 hours post-mission follow-up work

VI. Period and Place of Performance

The period of performance will be up to two years from date of award.

The estimated level of effort is up to 1,100 hours per year. MCC anticipates this level of effort but does not guarantee this level of effort as it may increase or decrease.

The Consultant shall perform the tasks under this SOW at his/her own facilities, preferably in the Solomon Islands. The Consultant is expected to participate in MCC missions to Solomon Islands and be available for separate in-person meetings when the team is in-country.

If the Consultant is not based in the Solomon Islands, travel to Solomon Islands will be required for up to three weeks for each visit (expected at least once per quarter). The Consultant may be requested to mobilize on short notice and will be expected to deliver high quality finished products in a timely manner.

VII. Qualifications of the Consultant

Mandatory/Required

Bachelor’s degree or equivalent in international development, economics, public administration, public health, international trade, business administration, law, civil engineering, or other fields relevant to the program.

A minimum of seven (7) years of work experience related to economic development, program design and management, budgeting, analysis and reporting, which includes experience collaborating with government agencies and international organizations, local or international NGO’s and/or foreign investors.

Substantial knowledge of the Solomon Islands development context, including GoSI national development policies and priorities, constraints to economic growth, and current socioeconomic trends.

Demonstrated ability to effectively communicate to a wide variety of audiences both in writing and orally.

Experience in researching and preparing effective communications and reports assessing and describing program/project progress.

Demonstrated working knowledge of MS Outlook, Word, Excel and PowerPoint.

Fluency in English.

Maintain a responsible and flexible attitude and be capable of managing a variety of tasks with minimal supervision.

Regionally based (Solomon Islands, Australia, Papua New Guinea, New Zealand or other South Pacific nation).

Preferred

Advanced degree in the area of international development, economics, public administration, public health, international trade, business administration, law, environmental studies, civil engineering, or other fields relevant to the program.

Working knowledge of Solomons Pijin.

Based in the Solomon Islands.