SOW.docx

Statement of Work Political Economy Analysis

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 an internal Constraints Analysis Summary Memo 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 produces Concept Notes that identify the core root causes and what opportunities may exist to address the root causes. This phase culminates in an internal Opportunity Memo.

· 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. This phase culminates in an internal Project Proposal Assessment Memo.

· 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 one consultant (who may or may not decide to sub-contract) to provide ongoing, applied political economy analysis and guidance, principally at the sector, sub-national government, or project level, during the program lifecycle in any MCC partner country, with initial assignments expected for Mozambique.

MCC is seeking to further integrate political economy analysis into compact development and implementation. Political economy analysis is particularly useful for MCC because 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. MCC utilizes political economy analysis across the compact development cycle to understand how incentives, institutions, interests, power structures, and conflicts shape our relationships with partners, the feasibility of investments and activities, how best to design programs and activities to achieve desired goals, identification of allies and champions, decision-making dynamics, and the risks involved.

Several distinctive features of MCC contribute to 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.

MCC first engaged with the Government of Mozambique to design a USD $506.9 million compact—signed in 2007 and entered into force in 2008—to increase the country’s economic growth and reduce poverty by investing in four project areas: water and sanitation, roads, land tenure, and agriculture. The compact closed in 2013.

MCC’s Board of Directors selected Mozambique as eligible to develop a subsequent compact in December 2019. MCC and its Mozambican partners are currently in the process of fleshing out our understanding of problems in the Mozambican economy and of potential leverage points for change. We will not be identifying specific projects for some months. The initial assignments will inform high-level project concepts (e.g., governance reform in selected constraint areas), future due diligence requests (to this and other consultants), and the team’s ongoing thinking about strategic opportunities and challenges ahead. Later envisioned assignments will help MCC understand sector dynamics, the feasibility of emerging project and activity ideas, and how to best design projects and activities given existing institutions, stakeholder alignments, and incentive structures.

C. Country

Mozambique and any other eligible MCC countries.

D. Task and Deliverables

Initial assignments for Mozambique would include a national-level political economy analysis to inform strategic country engagement, project design, and due diligence moving forward. There are two sequential deliverables, the first a preliminary literature review and the second a more extensive and fully-fledged political economy analysis. However, future technical direction may be issued for any MCC partner country, and are also likely at the sector, project, problem, and subnational level in Mozambique.

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

E. Level of Effort and Period of Performance

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

The estimated level of effort required under this contract is up to 1200 hours per year including between two to six missions involving travel.

Consultant must be willing and should expect to travel a minimum of once per quarter for assigned projects and countries. MCC anticipates this level of effort but does not guarantee this level of effort as it may decrease or increase depending on 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 short notice and will be expected to deliver high quality finished products in a timely manner.

F. Subcontracting

Consultant(s) 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 SoW 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 SoW or of the terms and conditions of the SoW 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) or using funds advanced under a compact in the relevant country. The designated Consultant would be expected to coordinate with local authorities and the Mozambique Core Team 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 .

I. Evaluation Criteria

Required

· Minimum 5 years of experience conducting 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 any MCC partner country, with preference given to Mozambique.

· Demonstrated ability to provide clear, actionable guidance and recommendations for root cause analysis, 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 Mozambique.

· French, Portuguese, and/or Spanish language skills.

· Experience in program design or implementation.

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

J. Other Requirements

International travel may be needed as early as August 2020. Applications should indicate ability and availability to make such a trip.