95332420Q0010 Attachment 3 - CBA Economist SOW.pdf

STATEMENT OF WORK

Cost-Benefit Analysis Economist (Independent Consultant)

INTRODUCTION: The Millennium Challenge Corporation (MCC) is a U.S. Government corporation whose mission is to provide assistance that will support economic growth and poverty reduction in carefully selected countries that demonstrate a commitment to just and democratic governance, economic freedom, and investments in their citizenry. For more information on the MCC, please visit www.mcc.gov.

On January 23, 2003, the United States established the Millennium Challenge Corporation (MCC), an innovative foreign assistance program designed to reduce poverty by promoting sustainable economic growth. MCC, a U.S. government corporation, is based on the principle that aid is most effective in countries that promote good governance, economic freedom, and investments in people.

SCOPE: The Department of Policy and Evaluation, Economic Analysis (EA) Division is seeking to retain the services of an independent consultant with cost benefit analysis expertise to support economic research, strengthen applied cost-benefit analysis methods, and contribute to preparation and/or review of cost-benefit analysis modeling the division conducts for country compacts under preparation by MCC.

More than one consultancy may be awarded through this solicitation at MCC’s sole discretion. MCC expects that up to four (4) consultancies may be awarded.

TASKS:

The Cost Benefit Analysis Economist Consultant:

• Conducts cost benefit analysis (CBA) to calculate the economic rate of return (ERR) and to identify key risks to and drivers of the CBA results.

• Conducts beneficiary analysis (BA) to determine the distribution of benefits by beneficiary income category.

• Identifies data needs, designs surveys or other data collection as needed, identifies the appropriate method of analysis, and communicates effectively with country teams, consultants, stakeholders, and counterparts to obtain the information required on program logic, context, economic costs and benefits, and likely impacts of proposed interventions by MCC.

• Performs other related duties as assigned.

The estimated level of effort required to complete the tasks for this requirement over the 5-Year performance period is 1,600 hours (estimated at 500 hours in Year 1 and 275 hours in each of Years 2-5).

MCC anticipates this level of effort but does not guarantee this level of effort, as it may increase or decrease.

PERFORMANCE CRITERIA: Performance is reviewed in terms of the quality of the final documents and models that will be produced. The quality of those documents and models will be assessed according to, but not limited to:

• Quality and level of communication between the CBA Consultant and EA Staff;

• Contribution of the CBA Consultant to strengthening the consistency and quality of MCC CBA models; and

• Overall style, consistency with MCC CBA Guidance, quality of evidence and methodology employed, readability, documentation, and accessibility of documents and models delivered

DELIVERABLES: The Consultant shall provide MCC cost benefit analysis support. The Consultant shall provide services to MCC on an as needed basis. No additional tasks shall imply any additional costs to the Government beyond the amount allowed for in the initial call order; however, this call order may be amended to reflect additional costs.

1 Review MCC CBA models to identify methodological, calculation and formatting errors to be addressed prior to publication.

2 Develop Original (ex-ante) CBA and BA models independently or in collaboration with EA staff for MCC investments currently under preparation, including identification of data needs, survey design, and other data collection tasks as needed.

3 Revise MCC CBA and BA models independently or in collaboration with MCC staff both during and following program implementation based on new data and/or methodological insights.

4 Review MCC CBA Guidance Papers and advise MCC on potential refinement to CBA methodology and practice in a variety of areas.

5 Prepare current MCC models for publication independently or in collaboration with MCC staff.

6 Perform high-level, systematic analysis of CBA practice across MCC’s portfolio.

7 Provide general CBA support as required.

Specific tasks and the associated timeline and deadline will be defined by technical directives issued over the period of the agreement.

Each submission shall include a note on the cover page that provides the following certification: “To the best of my knowledge this report does not contain any non-public information” OR “I have identified the following potential non-public information that may not make this report suitable for wider circulation because of [issue, page/paragraph].”

To be clear: It is only necessary to identify problematic sections. MCC is responsible for the final decision to share, or not, as appropriate.

In the event that the document is not suitable for broader circulation, MCC and the consultant may have to discuss how to make a sharable version (i.e. one that can be provided to local counterparts and other

MCC consultants as appropriate).

MCC TECHNICAL DIRECTION:

(a) Performance of the work under this task order is subject to the written technical direction of the

Contracting Officer's Representative (COR) and any Government Project Monitor (PM), who shall be specifically appointed in writing, and responsibilities identified, by the Contracting Officer in accordance with MCC policy. "Technical direction" means a directive to the Contractor that approves approaches, solutions, designs, or refinements; fills in details or otherwise completes the general description of work or documentation items; shifts emphasis among work areas or tasks; or furnishes similar instruction to the Contractor. Technical direction includes requiring studies and pursuit of certain lines of inquiry regarding matters within the general tasks and requirements in Section C of this task order.

(b) The COR/Government PM does not have the authority to, and shall not, issue any instruction purporting to be technical direction that–

(1) Constitutes an assignment of additional work outside the statement of work;

(2) Constitutes a change as defined in the changes clause;

(3) Constitutes a basis for any increase or decrease in the total estimated task order value, the fixed fee (if any), or the time required for task order performance;

(4) Changes any of the expressed terms, conditions, or specifications of the task order; or

(5) Interferes with the contractor's rights to perform the terms and conditions of the task order.

(c) Technical direction may be oral or in writing; however, the COR or Government PM shall confirm oral direction in writing within five workdays.

(d) The Contractor shall proceed promptly with the performance of technical direction duly issued by the COR or PM in the manner prescribed by this clause and within the COR's/PM's authority. If, in the

Contractor's opinion, any instruction or direction by the COR/PM falls within any of the categories defined in paragraph (b) of this clause, the Contractor shall not proceed but shall notify the Contracting

Officer in writing within five (5) workdays after receiving it (either orally or in writing, whichever comes first) and shall request the Contracting Officer to take action as described in this clause. Upon receiving this notification, the Contracting Officer shall either issue an appropriate task order modification within a reasonable time or advise the Contractor in writing within 30 days that the instruction or direction is–

(1) Rescinded in its entirety; or

(2) Within the requirements of the task order and does not constitute a change under the changes clause of the contract/task order, and that the Contractor should proceed promptly with its performance.

(e) A failure of the Contractor and Contracting Officer to agree that the instruction or direction is both within the requirements of the task order and does not constitute a change under the changes clause, or a failure to agree upon the contract action to be taken with respect to the instruction or direction, shall be subject to the Disputes clause of this contract/task order.

(f) Any action(s) taken by the Contractor in response to any direction given by any person other than the

Contracting Officer or the COR/PM shall be at the Contractor's risk.

INSPECTION AND ACCEPTANCE TERMS: The deliverables will be evaluated according to the following criteria:

• Thoroughness and timeliness in complying with all of the elements in the tasks specified.

• Finished products shall be submitted in a timely manner, require minimal corrections from the reviewer, and provide clarity of analyses and work produced.

• Timeliness and efficacy of communications with relevant counterparts at MCC.

• Written reports will be submitted in English in MS Word. CBA models will be submitted in MS

Excel with supplemental tables, data and calculations in MS Excel, STATA or other appropriate software files.

PERSONNEL QUALIFICATIONS:

Required Qualifications

• Advanced knowledge of cost-benefit analysis (CBA) methodology.

• Mastery of and expertise in economic principles, concepts and practices, and modeling complex economic concepts.

• Experience preparing comprehensive reports for technical and executive-level audiences that provide recommendations in complex and critical areas of economic CBA.

• At least three (3) years of experience conducting CBA in one or more relevant sectors such as agriculture, education, electricity, financial services, health, nutrition, policy and institutional reform, private sector development, roads, tax administration, or WASH. Please submit one or more previously completed CBA models (including detailed calculations) fulfilling this requirement and clearly state your role in producing the model and the role of any other contributors.

• Education: A master's degree in economics, public policy or a closely related field that has a significant quantitative analysis component; OR A combination of education and experience: A degree that included at least 21 semester hours in economics and 3 semester hours in statistics, accounting, or calculus, and at least five years of experience conducting cost-benefit analysis.

Desired Qualifications

• Either a Ph.D. in Economics with 5 or more years or a master’s in economics with 8 or more years of demonstrated experience in relevant fields of economics as applied to developing countries.

• Publications in relevant fields of economics.

PERIOD OF PERFORMANCE: The contract will consist of a five year performance period.

Base: Date of Award through March 15, 2025

PLACE OF PERFORMANCE:

The consultant will be required to perform work at his or her home office with occasional travel to

MCC's Washington, D.C. office.

SUBCONTRACTING: With MCC’s explicit authorization, limited elements of these tasks may be subcontracted to a Research Assistant approved by MCC. In no case shall more than 25% of the total direct labor costs be subcontracted to a research assistant.

TIMING AND REPORTING: All formal communication with MCC, including reports, will be submitted to the COR/PM. The COR/PM for this requirement will be identified via separate correspondence. The

COR/PM will have technical responsibility for monitoring the contractor's performance. The COR/PM will review and evaluate the contractor's performance, and also will coordinate any communications with relevant counterparts and other donor agencies and organizations.

CONTRACTING OFFICER’S REPRESENTATIVE (COR)/PROJECT MONITOR (PM): The COR/PM shall have technical responsibility over the Consultant. Any change in the terms of the Call Order must be made in writing and approved by the Contracting Officer. No representation of the COR/PM shall serve as a basis for an alteration in the general scope of this Contract or of the terms and conditions of the Contract unless confirmed in writing by the Contracting Officer. The Consultant must communicate with the prime contractor (MBO Partners) on all matters that pertain to the Contract terms, and the prime contractor must in turn communicate with the Contracting Officer. Proceeding with work without proper contractual coverage could result in nonpayment for that work.