SOW.docx

Statement of Work

Public Financial Management (PFM) Strategy Consultant

A. Introduction

MCC’s mission is to provide grant assistance to support economic growth and poverty reduction in select developing countries with a demonstrated commitment to just and democratic governance, economic freedom, and investments in their citizenry. MCC grants complement other U.S. and international development programs that not only help poor countries rise out of poverty but also create a more secure and prosperous home front. Our model is defined by core principles, of selectivity, country ownership, transparency, and a focus on results.

There are two types of MCC grants, compacts and thresholds:

1. The Compact is MCC’s primary grant mechanism, whereby partner countries enter into a five-year agreement with MCC that includes a plan for achieving shared development objectives and the responsibilities of each country in achieving those objectives.

2. Threshold Programs are smaller grants focused on policy and institutional reform in selected countries that come close to passing MCC’s eligibility criteria and show a firm commitment to improving their policy performance.

MCC’s values identify who we are and what is important to us. Our Values are CLEAR: Embrace Collaboration, Always Learn, Practice Excellence, Be Accountable and Respect individuals and ideas. MCC’s values define how we behave on a daily basis, both as individuals and as an institution, in pursuit of our mission. They guide how we make decisions, set priorities, address challenges, manage tradeoffs, recruit and develop staff, and work together with our country partners and stakeholders.

To achieve its mission and objectives, MCC actively engages and partners with external parties throughout the compact development and implementation process to ensure that projects are designed with the appropriate due diligence and technical expertise.

Background In the execution of its mission, MCC identifies constraints and develops remedies within various sectors. One of these sectors is public financial management (PFM). PFM is a class of systems and elements involved in the management of public resources. It primarily refers to the processes, procedures, laws, and activities associated with spending public resources to include budgeting, treasury, cash management, disbursement, accounting and reporting, audit and control, and may include the financial management features of various government systems such as procurement and human resources, as well as the financial management aspects of transparency, governance and public accountability. Effective PFM systems enable governments to secure and use resources effectively, efficiently and transparently.

There are no specifically designed tools or methodologies to isolate and assess the impact of PFM reforms on service delivery. However, there are a number of assessment tools which provide indicators that can be used to track progress in PFM alongside progress in service delivery. Though assessment tools are the main data sources for monitoring PFM performance, the data is not always comparable across countries and time periods. Some of the most commonly used and applied PFM assessment tools include the following:

· Public Expenditure and Financial Accountability (PEFA) (Multiple Institutions: World Bank, IMF, EC, DFID, SPA): A PFM performance report and a set of high level indicators that draw on international standards produced by the governments, donors, and independent groups.

· Public Expenditure Tracking Surveys (PETS) (World Bank): Surveys of service providers with data collected through interviews with managers and staff, from the service provider’s records and select interviews with beneficiaries. Each PETS is country-specific but includes six core elements: characteristics of the provider; inputs; outputs; quality; financing; institutional mechanisms and accountability

· Country Assessment in Accountability and Transparency (CONTACT) (UNDP): Sets of generic guidelines with accompanying assessment checklists relating to: accounting infrastructure; information management; expenditures and budgeting; internal control and internal auditing; financial reporting; external auditing; revenue administration; debt management; project and foreign aid management; procurement and assets management; integrity improvements to prevent and control corruption; and public sector cash management.

· Engendering Budgets: A Practitioners’ Guide to Understanding and Implementing Gender-Responsive Budgets (Commonwealth Secretariat): A descriptive guide with no explicit methodology but suggestions for data sources including national statistics, household surveys, local and international NGOs, international sources of online gender specific information, national policy plans, and the national budget book. There are no explicit indicators but a five-step process is outlined which consists of: 1) analyzing the situation of women, men, girls and boys; 2) assessing the gender-responsiveness of policies; 3) assessing budget allocations; 4) monitoring spending and service delivery; and 5) assessing outcomes.

· Open Budget Initiative (International Budget Project): A questionnaire consisting of 122 multiple-choice questions, plus four tables covering the manner in which budget documents are disseminated. Questions and tables are grouped into three sections: 1) the availability of budget documents (information on the budget year of documents used in completing the questionnaire; internet links for key budget documents; distribution of documents related to the executive’s proposal; and distribution of enacted budget and other reports); 2) the executive’s budget proposal (estimates for the budget year and beyond; estimates for years prior to the budget year; comprehensiveness; the budget narrative and performance monitoring; and additional key information for budget analysis & monitoring); and 3) the budget process (executive’s formulation of the budget; legislative approval of the budget; executive’s implementation of the budget; executive’s year-end report and the supreme audit institution).

· Diagnostic Framework for Revenue Administration (World Bank): An assessment questionnaire to be used in a group setting involving different stakeholders, with no rules on assessment design or implementation, or how results should appear. The assessment is divided into eight frameworks for analysis of the revenue administration, each containing a detailed set of diagnostic questions on: environment, resources; history; strategy; transformation processes; outputs; and feedback mechanisms.

B. Scope

MCC seeks an experienced public financial management (PFM) consultant to develop a methodology to incorporate PFM interventions into MCC’s Compact and Threshold programs. The Consultant will under and with work closely with MCC Program Financial Services (PFS) Practice Group to undertake a review of past MCC programs and processes around PFM. The Consultant will use this information and apply his/her comprehensive PFM expertise, to develop a coherent, viable and implementable PFM methodology to identify, assess, and incorporate PFM interventions into MCC programs.

C. Country

Any MCC eligible countries

D. Tasks and Deliverables

The Contractor shall be expected to complete the following primary tasks with accompanying sub-tasks as part of the engagement:

Task 1 – Research and Data Collection

· Review and understand MCC Compact and Threshold development cycles, to include timelines and parameters for due diligence and other deliverables;

· Review past MCC Compact and Threshold programs to develop a comprehensive list of all PFM programs initiated, conducted, and/or partnered by MCC since the inception of the Agency (2004);

· Develop and organize a list of all past MCC PFM interventions by type, size, comprehensiveness, timeframe, and result; detail strengths and weaknesses and lessons learned;

· Develop and categorize a list of overall PFM reform effort by type, size, implementation difficulty;

· Interview select MCC personnel to garner additional understanding of past PFM programming; and

· Liaise with select US Government agencies to carry out assigned tasks to include, but not limited to, US Agency for International Development (USAID) - E3 Office of Economic Policy, Department of the Treasury - Office of Technical Assistance (OTA), Government Accountability Office – International Affairs and Trade Team.

Task 2 - Develop PFM Strategy

· Develop and implement a strategic plan to implement public financial management interventions into MCC’s country programing;

· Conduct a SWOT analysis to determine the strengths, weaknesses, opportunities, and threats to MCC implementing PFM programming;

· Develop roadmap to implement PFM strategy, to include timelines, dependencies, and the following:

· Specified areas and focus of MCC PFM programming

· Human resource requirements to implement a MCC PFM strategy

· Financial resources required to implement and sustain the strategy

· Recommended monitoring and evaluation metrics to measure effectiveness and value of respective PFM interventions

· Identify specific injection and interface points within MCC programming cycle to initiate and commence PFM diagnostics and introduce PFM interventions;

· Identify and explain the most relevant and beneficial PFM diagnostic tools for MCC to leverage or utilize in PFM due diligence;

· Detail specific PFM interventions where MCC possesses a competitive advantage;

· Detail specific project sectors (e.g., water, education, etc.) where PFM interventions can support/leverage MCC investments; identify particular sectors that are more suited for integrating PFM programming;

· Detail specific PFM policy and institutional reform interventions that can be implemented with the timeline and parameters of MCC’s funding mechanisms;

· Develop necessary materials, including presentations, fact sheets, success stories, and other materials that may assist in communicating a PFM strategy; and

· Detail the viability of potential partners (bi-lateral, multi-lateral international development finance institutions) with experience developing and/or implementing PFM programs.

Timeline and Deliverables

Month 1

· Kick-off meeting

· Work plan. This will be a detailed plan of work summarized in table or spreadsheet format.

· Desk review and analysis of past and present MCC Compact and Threshold PFM programs and interventions

· Interviews with MCC staff

· Deliverable #1 – Historical inventory of MCC PFM projects in Compacts and Threshold Programs. This will be a written report not to exceed 15 pages, with additional pages for annexes and references as appropriate.

· Presentation on Deliverable #1 (PowerPoint) not to exceed 15 slides, with additional slides for annexes and references as appropriate

Month 2

· Additional research and analysis of MCC PFM programming and lessons learned, select PFM interventions and approaches at select US government agencies, applicable PFM diagnostic tools and interventions, and other relevant areas

· Review work plan with MCC; update as directed

· Deliverable #2 – Draft PFM Strategy Report. This will be a written report not to exceed 25 pages, with additional pages for annexes and references as appropriate.

· Presentation on Deliverable #2 (MS PowerPoint) not to exceed 15 slides, with additional slides for annexes and references as appropriate

Month 3

· Review work plan with MCC; update as directed

· Finalized review and analysis of previous research of MCC PFM programs and activities.

· Presentation on conclusions and PFM strategy to MCC

· Deliverable #3 – Final PFM Strategy Report. This will be a written report not to exceed 25 pages, with additional pages for annexes and references as appropriate. This will be a written report not to exceed 25 pages, with additional pages for annexes and references as appropriate.

· Presentation on Deliverable #3 and overall conclusions on PFM strategy (MS PowerPoint) not to exceed 25 slides, with additional slides for annexes and references as appropriate

E. Period and Place of Performance

All work will be completed between the dates of the award through a one year period of performance.

The estimated level of effort is estimated at up to 500 hours. MCC anticipates this level of effort but does not guarantee this level of effort as it may increase or decrease.

The consultant shall work from his/her home office and/or any MCC eligible country.

F. Timing and Reporting

All formal communication with MCC, including reports, will be submitted to the Contracting Officer Technical Representative (COR), Program Manager (PM), and other designated MCC personnel. 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.

Any changes in the terms of the ToR will 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 ToR or of the terms and conditions of the ToR unless confirmed in writing by the Contracting Officer. The contractor must communicate with the Contracting Officer on all matters that pertain to the Contract terms. Proceeding with the work without proper contractual coverage could result in nonpayment for that work.

G. Qualifications

· Master's Degree, or equivalent, in Economics, Accounting, Finance, Business Administration, Public Administration or related fields.

· Minimum 15 years of relevant work experience with governments or development partners on Public Financial Management (PFM) reform design and implementation, including change management.

· Prior technical work experience supporting public financial management in the public sector in developing and emerging economies;

· Public financial management and administration reform at national and sub-national level;

· Experience with public financial management assessments and diagnostic tools (e.g., PEFA, MTFFs, MTBFs, PERs, PETs, FRAs, PIMs and budget transparency);

· Experience developing an organization's process of defining its strategy and making decisions on allocating resources to pursue this strategy;

· Experience developing senior/executive management presentations;

· Experience with macro-fiscal policies, budget process, financial management and reporting and central government reform and coordination;

· Comprehensive understanding of and established networks with relevant actors and organizations in the PFM field (e.g., DFID, WB, EU, DFAT, GIZ);

· Prior experience on donor-funded technical assistance programs for PFM assessments, reforms, and strategy implementation;

· Knowledge of US Government Foreign Assistance Act , applicable foreign assistance appropriations and relevant USG agency budgeting processes

· Knowledge of international development finance institutions funding mechanisms;

· Demonstrated ability to work independently and within a team to achieve results;

· Excellent interpersonal skills and ability to build and maintain relationships with a variety of stakeholders

· English language fluency

· Previous senior management and/or executive experience is desirable (not mandatory)

· Experience working in both the public and private sectors is highly desirable (not mandatory)

· Relevant experience working with MCC and other international development institutions (e.g., World Bank, International Monetary Fund) is an advantage (not mandatory)