SOW.docx

Statement of Work

Applied Political Economy Analysis for Europe, Asia, Pacific, and Latin America

A. Background

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

MCC Compacts – large, five-year grants – are developed with partner countries over the course of several years. The compact development process is data-driven and iterative, moving through the following five distinct phases[footnoteRef:1]: [1: For more on MCC’s approach to compact development, see https://www.mcc.gov/resources/doc/guidance-compact-development-guidance.]

· Preliminary Analysis. In this phase, the country in partnership with MCC undertakes broad consultations with stakeholders and conducts an analysis of the constraints to economic growth in that country. The phase ends with the development of a Constraints Analysis that outlines the binding constraints to growth in the country.

· Problem Diagnosis. In this phase, the country in partnership with MCC defines problems and conducts an analysis of the root causes of the identified binding constraints. The phase ends with the development of Concept Notes that identify the core root causes and what opportunities may exist to address the root causes.

· Project Definition. In this phase, the country in partnership with MCC defines and scopes specific projects, identifies investments and activities, and builds the actual program logic for the proposed compact program. The phase ends with the development of Project Proposals that detail the specific projects that comprise the compact program, and how they might meet MCC’s investment criteria.

· Project Development. In this phase, the country in partnership with MCC launches public procurements, conducts feasibility, environmental and other studies, identifies beneficiaries from the projects and calculate the probable economic impact from the projects. The phase ends with the development of an Investment Memorandum that details the proposed compact program and discusses the manner in which the proposed program accomplishes the overarching objectives in the country while also meeting MCC investment criteria.

· Negotiation. This is the final stage, during which the compact is negotiated with the partner country’s government, the compact is finalized, submitted for approval by both the country and MCC, and signed.

After an MCC Compact is signed, the country sets up a local accountable entity to manage and oversee all aspects of implementation.

B. Scope

MCC will obtain the required services of up to three (3) Consultants to provide ongoing, applied political economy analysis and guidance, principally at the sector, sub-national government, or project level, during the compact lifecycle in partner countries in Europe, Asia, Pacific, or Latin America, as required by MCC.

This is an opportunity to serve as a true thought-partner to MCC teams, with broad scope to provide critical analyses and recommendations that will inform decision-making. The Consultant’s input that will be fundamental to the success and sustainability of multi-million dollar economic growth and poverty reduction programs.

MCC is seeking to further integrate political economy analysis into compact development and implementation. Political economy analysis is particularly useful for development practitioners since it helps us to understand what drives political behavior, how this shapes particular policies and programs, who are the main “winners” and “losers”, and what the implications are for development strategies and programs. In this way, political economy analysis helps us to understand how incentives, institutions and ideas shape political action and development outcomes in a given country. This can be extremely useful when thinking about the feasibility of investments, the contribution that MCC can realistically make, and the risks involved.

Several distinctive features of MCC contribute to there being very limited room for error in project design, thereby necessitating ongoing, applied political economy analysis:

1. MCC operates under the principle of country ownership. Countries identify their own priorities for achieving sustainable economic growth and poverty reduction following broad consultation within their society and work in partnership with MCC to refine programs.

2. MCC’s compact programs are strictly limited to an implementation period of no more than five years.

3. MCC investments typically involve significant policy and institutional reform components.

4. MCC expects its compact programs to continue delivering benefits long after a five-year compact program comes to a close. To do so, compact programs must be designed and implemented for long-term sustainability.

C. Countries

Any eligible MCC countries

D. Tasks and Deliverables

Tasks:

The Consultant shall be an expert resource for technical team members identifying opportunities for investment. Depending on needs, the Consultant may begin with high-level sector and problem overviews and evolve – along with the compact lifecycle – to advising the MCC team on project design and refinement in one or more sectors and/or within a given sub-national jurisdiction. The Consultant will provide direct, substantive inputs into project design that account for political realities.

As a compact moves from development to implementation to evaluation, the Consultant may be asked to provide additional strategic guidance and tactical information to MCC teams to inform decisions around real-time operations that will ensure compacts meet their objectives and that stakeholders sustain their results.

The consultant’s assignments may include the following:

· Conduct literature reviews and field research to inform high-level sector and problem analyses in a country or sub-national jurisdiction. These may include, but is not limited to, analysis of the following:

1. Problem analysis, including root cause analysis

2. Power, accountability, and decision-making structures and relationships

3. Formal and informal economic institutions

4. Organization(s) and public administration, including the role of decentralized governance

5. Stakeholder mapping, including those who would impact MCC investments through both formal and informal channels

6. Social relationships and institutions consequential to MCC investments

7. Social and political conflicts and their consequences for MCC investments

8. Features of the social and political landscape which might undermine inclusive growth and the equitable distribution of project benefits across demographic groups (e.g. women, minorities, youth, poor) or geographic regions

9. Landscape of ongoing or proposed reforms and opportunities and barriers for proposed reforms

10. Challenges and risks associated with MCC investments

11. Identifying how and where to focus efforts to promote positive change, including through strategic pacing or ordering of interventions to achieve maximum impact

12. Actionable guidance on stakeholder engagement strategies, project design, and organizational and institutional change strategies

· Conduct literature and field research to inform project design and assess the potential scope and viability of projects. This may include:

· A more focused and detailed analysis of the eleven dimensions listed above.

· Technical review of project proposals, reports, and work products from other MCC consultancies and partners.

· Provide ongoing technical support to the MCC country team to facilitate politically informed, contextually appropriate and strategically sound approaches to compact design and partner engagement. This might include:

· Attending (via Skype or in person) meetings.

· Generating briefings or presentations.

· Brief, rapid-response memos on critical emerging issues and questions.

· Organization of briefings or consultations with key experts.

· Technical inputs and guidance on country team due diligence.

· Develop on-the-ground relationships in MCC partner countries to facilitate ongoing learning and information-exchange.

The consultant is expected to work closely with members of the MCC country team to ensure that political economy analysis is well-integrated into sector and problem analyses and project design. This will require routine communication and collaborative problem-solving.

Deliverables:

The Consultant shall provide services to MCC on an as needed basis. To support MCC in the flexible and timely manner needed to meet the evolving needs of compact development, negotiation, implementation and evaluation, technical direction under this statement of work will be issued and the Consultant deployed each time the Consultant’s services are needed over the course of this contract. 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 associated with implementation planning and oversight requirements. Technical direction from the COR/PM will outline a set of activities and deliverables, to include but not be limited to:

· Research reports, briefs, memos or information

· Presentations and briefings (in-person or Skype)

· Technical feedback on relevant documents, including due diligence and design products from other consultants and partners

· Trip scopes of work and trip reports

· Consultation with MCC teams

E. Place and Period of Performance

All work shall be completed between the dates of the award through a five year period of performance.

The estimated level of effort required under this contract (and for each individual Consultant) is in a range of 400 up to 1200 hours per year including between 2 – 6 missions to targeted countries as directed per Consultant. Consultant must be willing to travel a minimum of once per quarter for assigned projects and countries. Depending on experience of the applicants to this RFP, MCC might choose to fund up to 3 Consultants at the mid-range of hours and travel, or 1-2 at a higher level of effort (LOE). MCC anticipates this level of effort but does not guarantee this level of effort as it may decrease or increase depending on eligible countries and proposed projects.

Consultant shall perform the tasks under this contract in MCC-eligible countries, in MCC offices in Washington DC as requested, and at his/her own facilities. International travel is required. The Consultant may be requested to mobilize on a short notice and will be expected to deliver high quality finished products in a timely manner.

F. Subcontracting

Consultants are authorized to subcontract data collection, data preparation, economic analysis, and related services as needed. The overall costs for subcontracting shall not exceed 25% of the consultant’s total negotiated unloaded direct labor cost.

G. Time 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.

H. Conflict of Interest

The Consultant would be precluded from bidding on work and services (design, assessment, construction and supervision) to be procured by a country specific Millennium Challenge Account (MCA)[footnoteRef:2] or using funds advanced under a compact in the relevant country. The designated Consultant would be expected to coordinate with local authorities and MCA (Accountable Entity) responsible for MCC compact development or implementation as well as other donors, where relevant. However, the Consultant would report directly to the designated COR/PM[footnoteRef:3]. [2: Upon award of a Compact, the grantee establishes an MCA which is the entity responsible for the implementation of the program, the Accountable Entity.] [3: Contracting Officer’s Representative/Program Manager]

I. Evaluation Criteria

Required

· Minimum 5 years of experience doing sector- or project-level applied political economy analysis in international settings. This experience must include both field research and literature reviews, and span at least two distinct sectors.

· Master’s degree in a social science field or a field with a strong political economy tradition.

· Minimum 5 years of experience and expertise in Europe, Asia, Pacific, and/or Latin America.

· Demonstrated ability to provide clear, actionable guidance and recommendations for project design and implementation.

· Ability to work with colleagues and stakeholders from a broad array of disciplinary and cultural backgrounds.

Preferred

· Minimum 10 years of experience doing sector-level political economy research in international settings, spanning more than four sectors.

· PhD in a social science field, or a field with a strong political economy tradition.

· Experience and expertise in Timor-Leste, Indonesia, and/or Kosovo.

· Portuguese, Albanian, and/or Bahasa Indonesia language skills.

· Experience in program design or implementation.

· Experience in one or more of the following sectors: commercial law, energy, water and sanitation, health, and/or education.

· Familiarity with MCC model and approach to project development, design, and implementation oversight.

J. Other Requirements

International travel may be needed as early as August 2019. Applications should indicate ability and availability to make such a trip.