MCC-Program Procurement Guidelines

Millennium Challenge Corporation
Program
Procurement
Guidelines
October 23, 2009
i Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Table of Contents
.PurposeandScope.................................................................................................................................................................................
a.Authorities...............................................................................................................................................................................................
StatutoryAuthority............................................................................................................................................................
FederalGovernmentRegulations,StandardsandOtherGuidance.........................................................................
RelatedMCCPoliciesandProcedures...........................................................................................................................
.EectiveDate........................................................................................................................................................................................ a
.Guidelines............................................................................................................................................................................................... a
Part.ConductandAdministrationofProcurement..............................................................................................................................
Section.A.ProgramProcurementGuidelines:ProcurementofGoods,Works,andNon-ConsultantServices...............
I.Introduction....................................................................................................................................................................................
ApplicabilityofSection.AoftheseGuidelines.........................................................................................................
GeneralConsiderations....................................................................................................................................................
ConictofInterest............................................................................................................................................................
Eligibility..............................................................................................................................................................................
AdvanceContractingandRetroactiveFinancing....................................................................................................... 6
JointVentures..................................................................................................................................................................... 6
MCCReview....................................................................................................................................................................... 6
Misprocurement................................................................................................................................................................ 6
ReferencestoMCC........................................................................................................................................................... ;
FraudandCorruption...................................................................................................................................................... ;
Price-ReasonablenessAnalysis....................................................................................................................................... ,
II.CompetitiveBidding................................................................................................................................................................... ,
A.General........................................................................................................................................................................... ,
Introduction........................................................................................................................................................ ,
TypeandSizeofContracts............................................................................................................................. ,
Two-StageBidding.......................................................................................................................................... o
NoticationandAdvertising......................................................................................................................... o
Pre-qualicationofBidders............................................................................................................................
B.BiddingDocuments.....................................................................................................................................................a
General...............................................................................................................................................................a
ValidityofBidsandBidSecurity...................................................................................................................a
Language...........................................................................................................................................................
ClarityofBiddingDocuments......................................................................................................................
StandardsandTechnicalSpecication........................................................................................................
UseofBrandNames........................................................................................................................................
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ii
Over-Specication............................................................................................................................................
Denition...........................................................................................................................................................
ProceduresforVerifyingProperSpecication...........................................................................................
ConsequencesofOver-Specication............................................................................................................
Pricing.................................................................................................................................................................
PriceAdjustment............................................................................................................................................ 6
TransportationandInsurance....................................................................................................................... 6
AllowableCurrenciesforBids...................................................................................................................... 6
CurrencyConversionforBidComparison..................................................................................................;
AllowableCurrenciesforContractDenominationandPayment...........................................................;
TermsandMethodsofPayment..................................................................................................................;
AdvancePayments..........................................................................................................................................8
AdvancePaymentSecurityGuarantees.......................................................................................................,
ProgressPayments............................................................................................................................................,
Finalpayment...................................................................................................................................................ao
PerformanceGuarantees................................................................................................................................ao
InterestonLatePayments............................................................................................................................ao
AlternativeBids...............................................................................................................................................ao
PerformanceSecurity.....................................................................................................................................ao
LiquidatedDamagesandBonusClauses...................................................................................................ao
ForceMajeure....................................................................................................................................................a
ApplicableLawandSettlementofDisputes...............................................................................................a
C.BidOpening,EvaluationandAwardofContract................................................................................................a
TimeforPreparationofBids..........................................................................................................................a
BidOpeningProcedures.................................................................................................................................a
ClaricationsorAlterationsofBids............................................................................................................. aa
Condentiality.................................................................................................................................................. aa
ExaminationofBids....................................................................................................................................... aa
EvaluationandComparisonofBids............................................................................................................ aa
DomesticPreferences.................................................................................................................................... a
ExtensionofValidityofBids.......................................................................................................................... a
Post-qualicationofBidders........................................................................................................................ a
AwardofContract........................................................................................................................................... a
PublicationoftheAwardofContract......................................................................................................... a
RejectionofAllBids........................................................................................................................................ a
Debrieng.......................................................................................................................................................... a
iii Piogiam Piocuiement Cuidelines, Octobei a, aoo,
D.ModiedCompetitiveBidding............................................................................................................................... a6
ProcurementofCommodities..................................................................................................................... a6
III.OtherMethodsofProcurement........................................................................................................................................... a6
General............................................................................................................................................................................. a6
LimitedBidding.............................................................................................................................................................. a6
NationalCompetitiveBidding...................................................................................................................................... a6
Shopping........................................................................................................................................................................... a;
DirectContracting......................................................................................................................................................... a;
ForceAccount................................................................................................................................................................. a8
ProcurementAgentsandFiscalAgents...................................................................................................................... a8
InspectionAgents............................................................................................................................................................ a,
ProcurementunderBOOiBOTiBOOT,ConcessionsandSimilarPrivateSectorArrangements................ a,
PerformanceBasedProcurementiOutputBasedProcurement.......................................................................... a,
Section.B.ProgramProcurementGuidelines:ProcurementofConsultantsandConsultantServices.............................
I.Introduction...................................................................................................................................................................................
Purpose...............................................................................................................................................................................
GeneralConsiderations...................................................................................................................................................
ApplicabilityofSection.BoftheseGuidelines........................................................................................................ a
ConictofInterest.......................................................................................................................................................... a
UnfairCompetitiveAdvantage....................................................................................................................................
Eligibility............................................................................................................................................................................
AdvanceContractingandRetroactiveFinancing.....................................................................................................
AssociationsbetweenConsultants..............................................................................................................................
MCCReview,Assistance,andMonitoring.................................................................................................................
Misprocurement...............................................................................................................................................................
ReferencestoMCC......................................................................................................................................................... 6
TrainingorTransferofKnowledge............................................................................................................................. 6
Language.......................................................................................................................................................................... 6
FraudandCorruption.................................................................................................................................................... ;
Price-ReasonablenessAnalysis..................................................................................................................................... ,
II.QualityandCostBasedSelection.......................................................................................................................................... ,
TeSelectionProcess.................................................................................................................................................... ,
TermsofReference......................................................................................................................................................... ,
Budget............................................................................................................................................................................... ,
Advertising........................................................................................................................................................................o
ShortListofConsultants..............................................................................................................................................o
Piogiam Piocuiement Cuidelines, Octobei a, aoo, iv
PreparationandIssuanceoftheRequestforProposals..........................................................................................
ReceiptofProposals.......................................................................................................................................................
EvaluationofProposals:ConsiderationofTechnicalQualityandCost.............................................................. a
EvaluationofFinancialProposals................................................................................................................................. a
CombinedTechnicalQualityandPriceEvaluation..................................................................................................
NegotiationsandAwardofContract...........................................................................................................................
PublicationoftheAwardofContract..........................................................................................................................
Debrieng..........................................................................................................................................................................
RejectionofAllProposals,andRe-invitation............................................................................................................
Condentiality..................................................................................................................................................................
III.OtherMethodsofSelection...................................................................................................................................................
General.............................................................................................................................................................................
QualityBasedSelection................................................................................................................................................
SelectionunderaFixedBudget................................................................................................................................... 6
Least-CostSelection...................................................................................................................................................... 6
SelectionBasedontheConsultantsQualications................................................................................................ ;
IndividualConsultants................................................................................................................................................... ;
SoleSourceSelection..................................................................................................................................................... 8
IV.TypesofContractsandImportantProvisions.................................................................................................................... ,
TypesofContracts......................................................................................................................................................... ,
Fixed-PriceContract...................................................................................................................................................... ,
Time-BasedContract..................................................................................................................................................... ,
Reimbursable-CostContracts....................................................................................................................................... ,
PercentageContract....................................................................................................................................................... o
IndeniteDeliveryandIndeniteQuantityContract............................................................................................. o
RequirementsandBlanketPurchaseAgreementsContracts................................................................................. o
AllowableCurrenciesforProposals............................................................................................................................. o
CurrencyConversionforProposalComparison....................................................................................................... o
AllowableCurrenciesforContractDenominationandPayment......................................................................... o
TermsandMethodsofPayment...................................................................................................................................
AdvancePayments...........................................................................................................................................................
AdvancePaymentSecurityGuarantees.......................................................................................................................
ProgressPayments.......................................................................................................................................................... a
FinalPayment................................................................................................................................................................... a
PerformanceGuarantees................................................................................................................................................ a
InterestonLatePayments............................................................................................................................................. a
v Piogiam Piocuiement Cuidelines, Octobei a, aoo,
StaSubstitutions.............................................................................................................................................................
ProfessionalLiability........................................................................................................................................................
ApplicableLawandSettlementofDisputes...............................................................................................................
Parta.ProcurementPlanning,Implementation,andReporting........................................................................................................
Pa.ProcurementPlan..................................................................................................................................................
Purpose..............................................................................................................................................................................
RequirementsandApprovals........................................................................................................................................
PeriodCovered.................................................................................................................................................................
ContentsandOrganization...........................................................................................................................................
DirectContractingiSoleSourceProcurement...........................................................................................................
Amendment.......................................................................................................................................................................
Pa.aProcurementImplementationPlan................................................................................................................... 6
PurposeandRequirement:............................................................................................................................................ 6
ContentsandOrganization........................................................................................................................................... 6
PIPChecklist.................................................................................................................................................................... 6
Pa.ProcurementPerformanceReport..................................................................................................................... ;
Purpose.............................................................................................................................................................................. ;
SubmissionRequirements............................................................................................................................................. 8
Pa.ContractorPastPerformanceReportingSystem(CPPRS)............................................................................ 8
Policy.................................................................................................................................................................................. 8
Applicability...................................................................................................................................................................... 8
Part.StandardBiddingDocuments......................................................................................................................................................... ,
Part.ReviewandApprovalRequirements.............................................................................................................................................6o
Part.BidChallengeSystem...................................................................................................................................................................... 6a
P.Introduction............................................................................................................................................................. 6a
P.aBidChallengeSystem............................................................................................................................................. 6a
P.FirstLevelofReviewbytheMCAEntity........................................................................................................... 6
ChecklistforNecessaryElementsofBCSReviewProcessbyMCAEntity........................................................ 6
Language........................................................................................................................................................................... 6
FilingEligibility,Deadline,andFees............................................................................................................................ 6
ContentofBidChallenge............................................................................................................................................... 6
SuspensionofProcurement.......................................................................................................................................... 6
IssuesSubjecttoReview................................................................................................................................................ 6
WrittenDecision,Deadline,andRemedies............................................................................................................... 6
P.AppealProcess........................................................................................................................................................ 6
ChecklistforNecessaryElementsofBCSAppealProcess..................................................................................... 6
Piogiam Piocuiement Cuidelines, Octobei a, aoo, vi
IndependentAppealBody............................................................................................................................................. 6
P.ReporttoMCC........................................................................................................................................................ 6
P.6InterimBidChallengeSystem.............................................................................................................................. 6
BidChallenges.................................................................................................................................................................. 6
Appeals..............................................................................................................................................................................66
Part6.Subcontracting................................................................................................................................................................................... 6;
Part;.AmendmentsandWaivers............................................................................................................................................................. 68
;.Amendments............................................................................................................................................................. 68
;.aWaivers........................................................................................................................................................................ 68
Part8.PublicationofMCCProgramProcurementGuidelinesandAdditionalInformation......................................................... ;o
PublicationbyMCAEntity........................................................................................................................................... ;o
AdditionalInformation.................................................................................................................................................. ;o
Part,.Language.............................................................................................................................................................................................;
OcialLanguage..............................................................................................................................................................;
AdvertisingDocumentsSolicitation,ProcurementandContractDocuments...................................................;
ProcurementRecordsandReports...............................................................................................................................;
Waivers...............................................................................................................................................................................;
Parto.EligibilityVericationProcedures............................................................................................................................................... ;a
Po.Introduction........................................................................................................................................................... ;a
Po.aEligibilityVericationProcedures..................................................................................................................... ;
PartialEligibilityVerication........................................................................................................................................ ;
Po.aFullEligibilityVerication.................................................................................................................................... ;
PeriodicEligibilityVerication..................................................................................................................................... ;
DocumentationofEligibilityVerication.................................................................................................................. ;
Part.ChoiceofContractType.................................................................................................................................................................;
Parta.PropertyLeasing.............................................................................................................................................................................. ;;
Part.RecordsandPostReview............................................................................................................................................................... ;8
ProcurementRecords..................................................................................................................................................... ;8
PostReview....................................................................................................................................................................... ;8
Attachment.ApprovalRequirements.................................................................................................................................................... ;,
ScheduleA............................................................................................................................................................................................... ;,
ScheduleB:ProgramsiCompactsinOversight................................................................................................................................. 8
Attachmenta.GlossaryofTerms.................................................................................................................................................................,
Attachment.DirectorofProcurement-ModelPositionDescription............................................................................................. ,
MajorResponsibilitiesandDuties.............................................................................................................................. ,
RequiredQualicationsandExperience.................................................................................................................... ,
vii Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment.EligibilityVericationTemplate....................................................................................................................................... ,6
Attachment.SampleTechnicalEvaluationPanelCondentialityAgreement................................................................................ ,;
Attachment6.SampleProcurementPlanandAmendmentForm....................................................................................................... ,,
Attachment;.GuidanceonWritingandReviewingTermsofReference.........................................................................................o
PurposeandFunctionoftheTermsofReference....................................................................................................o
Statetheobjectiveorpurposeoftheprocurement:................................................................................................o
Provideacleardescriptionofthebackgroundandcontext:.................................................................................o
Clearlydescribedeliverablesandrequiredresources:.......................................................................................... oa
SpecialguidanceforprocurementofMonitoringandEvaluationservices:.................................................... o
Editing:............................................................................................................................................................................. o
Attachment8.SampleGeneralProcurementNotice............................................................................................................................ o
Attachment,.SampleSpecicProcurementNotice(SPN)................................................................................................................ o;
Attachmento.SampleMCCProgramProcurementGuidelinesWaiverRequestForm............................................................. o,
Attachment.GuidanceonthePrice-ReasonablenessAnalysis........................................................................................................o
ResponsibilityandDocumentation............................................................................................................................o
DenitionandPurpose.................................................................................................................................................o
MethodsforConductingaPrice-ReasonablenessAnalysis...................................................................................o
Attachmenta.FinancialEligibilityCriteriaforPreandPostQualicationofLargeWorksContractors................................. a
Introduction............................................................................................................................................................................................ a
CFMAAnnualSurvey...................................................................................................................................................
OverviewofcurrentnancialeligibilityCriteriaranges........................................................................................
Liquidity:CurrentRatioandCashFlowRequirements.........................................................................................
CashFlowRequirement................................................................................................................................................
AccesstoCapital:Debt-EquityRatio..........................................................................................................................
AverageAnnualConstructionTurnover...................................................................................................................6
ValueofComparableContracts..................................................................................................................................6
AdditionalFinancialCriteria....................................................................................................................................6
TimesInterestEarned...................................................................................................................................................6
BacklogtoWorkingCapital......................................................................................................................................... ;
QuickRatio...................................................................................................................................................................... 8
BacklogMonths.............................................................................................................................................................. ,
Notes................................................................................................................................................................................. ,
Attachment.ContractFileIndexSample............................................................................................................................................. a
Attachment.BidReviewandTechnicalEvaluationPanels...............................................................................................................a
TechnicalMembers........................................................................................................................................................a
AuxiliaryMember..........................................................................................................................................................a
Observers........................................................................................................................................................................ a
ApprovalofPanelMembers........................................................................................................................................ a
Condentiality................................................................................................................................................................ a
PaymentstoPanelMembers.....................................................................................................................................a
BidRevieworTechnicalEvaluation...........................................................................................................................a
BidRevieworTechnicalEvaluationReport.............................................................................................................a
Piogiam Piocuiement Cuidelines, Octobei a, aoo,
. Purpose and Scope
Teprinciples,rules,andproceduressetoutintheseProgramProcurementGuidelines(Guidelines)shall
governtheconductandadministrationbytheMCAEntityorotherentity(excludingMCC)oftheprocurement
ofthegoods,works,consultant,andnon-consultantservicesthatneedtobeacquiredtoimplementtheprojects
fundedbyMCC(ProjectorProjects)underMillenniumChallengeCompactsandgrantandimplementation
agreementsenteredintopursuanttoSection6o,(g)oftheMillenniumChallengeActunlesstheMillennium
ChallengeCorporation(MCC)specicallyagreestotheapplicationofalternativeprocurementprocedures.
TeseguidelinesdonotapplytoMCCthresholdprogramsfundedpursuanttoSection66ofsuchAct.
. Authorities
a. StatutoryAuthority
a. Section6o,(b)()(I)oftheMillenniumChallengeActofaoo,asamended(P.L.No.o8-
,,,codiedataaU.S.C.;;o,etseq.)
a.a FederalGovernmentRegulations,Standards,andOtherGuidance
a. Notapplicable
a. RelatedMCCPoliciesandProcedures
a. GuidanceonReportingandConsideringPastPerformancebyContractorsinMCA
EntityProgramProcurements
b. CostPrinciplesforCost-ReimbursementContractsunderMCC-FinancedGrants
c. CostPrinciplesforGovernmentAliatesInvolvedinMCCCompactImplementation
d. PolicyonPreventing,Detecting,andRemediatingFraudandCorruptioninMCC
Operations
e. GuidelinesforAccountableEntitiesandImplementationStructures
TeMCCProgramProcurementGuidelinesarebasedonGuidelines:ProcurementUnderIBRDLoansandIDACreditsMayaoo,revisedOctober
aoo6andGuidelines:SelectionandEmploymentofConsultantsbyWorldBankBorrowers,Mayaoo,revisedOctoberaoo6.aoobytheInternational
BankforReconstructionandDevelopmentiTeWorldBank.Allrightsreserved.Forfurtherinformation,pleasevisithttp://www.worldbank.org.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, a
. Eective Date
Teseguidelinesshallbecomeeectiveonthedateapprovedandshallsupersedeallpreviousversions.
. Guidelines
Part .
Conduct and Administration
of Procurement
Section .A. Program Procurement Guidelines: Procurement of Goods, Works,
and Non-Consultant Services
I. Introduction
Applicability of Section .A of these Guidelines
P.A..Section.Asetsforththeprinciples,rules,andproceduresgenerallyapplicabletotheprocurementof
goods,works,andnon-consultantservicesfundedbyMCC.
General Considerations
P.A..aTeMCAEntityisresponsibleforimplementingtheProjectsandthereforeforselectingthecontractors
andsuppliersandawardingandsubsequentlyadministeringthecontracts.Whileinpracticethespecicpro-
curementrulesandprocedurestobefollowedintheimplementationofaProjectdependonthecircumstances
oftheparticularcase,thefollowingfourconsiderations(MCC Program Procurement Principles)generally
guidetheapplicationoftheseGuidelines:
P.A..a(a)Open,fair,andcompetitiveproceduresusedinatransparentmannertosolicit,award,andadminis-
tercontractstoprocuregoods,works,andnon-consultantservices,
P.A..a(b)Solicitationsforgoods,works,andnon-consultantservicesshallbebaseduponaclearandaccurate
descriptionofthegoods,works,ornon-consultantservicestobeacquired,
P.A..a(c)Contractsshallbeawardedonlytoqualiedandcapablesuppliersandcontractorsthathavethe
capabilityandwillingnesstoperformthecontractsinaccordancewiththetermsandconditionsoftheapplicable
contractsandonacost-eectiveandtimelybasis,and
P.A..a(d)Nomorethanacommerciallyreasonableprice(asdetermined,forexample,byacomparisonofprice
quotationsandmarketprices)shallbepaidtoprocuregoods,works,andnon-consultantservices.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, (
P.A..TeMCAEntityshallensurethatalltheprocurementsforgoods,works,andnon-consultantservices
undertakeninfurtheranceoftheCompactandfundedinwholeorinpart,directlyorindirectly,withMCC
fundingshallcomplywiththeseMCCProgramProcurementPrinciples.
P.A..Opencompetitionisthebasisforecientpublicprocurement.Inmostcasestherefore,MCCrequires
thatMCC-fundedgoods,works,andnon-consultantservicesbeobtainedthroughacompetitivebiddingprocess
(Competitive Bidding)opentoeligiblesuppliersandcontractorsassetoutinSub-Section.A.IIbelow.
P.A..WhereCompetitiveBiddingisnotthemostappropriatemethodofprocurement,othermethodsof
procurementmaybeused.Sub-Section.A.IIIdescribestheseothermethodsofprocurementandthecircum-
stancesunderwhichtheirapplicationwouldbemoreappropriate.Teparticularmethodstobefollowedfor
procurementsundertheCompactshallbesetoutinProcurementPlansasapprovedbyMCC.
Conict of Interest
P.A..6Bidders,suppliers,contractors,andsubcontractorsshallprovideprofessional,objective,andimpartial
adviceandatalltimesholdtheinterestsoftheMCAEntityparamount,withoutanyconsiderationforfuture
work.Firmsandindividualsshallavoidconictswithotherassignmentsandtheirowncorporateinterests.Firms
andindividualsshallnotbehiredforanyassignmentthatwouldbeinconictwiththeirpriororcurrentobliga-
tionstootherclients,orthatmayplacetheminapositionofbeingunabletocarryouttheassignmentinthebest
interestoftheMCAEntity.Withoutlimitingthegeneralityoftheforgoing,rmsandindividualsshallnotbe
hiredunderthecircumstancessetforthbelow:
P.A..6(a)Conictbetweenconsultantactivitiesandprocurementofgoods,works,ornon-consultantservices:
ArmorindividualthathasbeenengagedbyMCC,theMCAEntityoranotherdonortoprovidegoods,works,
ornon-consultantservicesforaProject,andeachofitsaliates,shallbedisqualiedfromprovidingconsultant
servicesrelatedtothosegoods,works,ornon-consultantservices.Conversely,armorindividualhiredto
provideconsultantservicesforthepreparationorimplementationofaProject,andeachofitsaliates,shallbe
disqualiedfromsubsequentlyprovidinggoods,works,ornon-consultantservicesresultingfromordirectly
relatedtothermsconsultantservicesforsuchpreparationorimplementation.
P.A..6(b)RelationshipswiththeMCAEntitysta:ArmorindividualthathasbeenengagedbytheMCA
Entitytoprovide,goods,works,orservices(includingtheirpersonnel,subcontractorsandaliates)thateither
arethemselvesorhaveabusinessorfamilyrelationshipwith(i)amemberoftheMCAEntityboardofdirectors
orsta,(ii)theProjectimplementingentityssta,or(iii)theProcurementAgentorFiscalAgenthiredbythe
MCAEntityinconnectionwiththeCompactanyofwhomisdirectlyorindirectlyinvolvedinanypartof:(A)
thepreparationofthebiddingdocumentsrelatedtotheprocurement,includingthecontract,(B)theselection
processforsuchprocurement,or(C)thesupervisionofanycontractawardedintheprocurement,maynotbe
awardedthecontract,unlesstheconictstemmingfromthisrelationshiphasbeenresolvedinamannerac-
ceptabletoMCCthroughouttheprocessofpreparingthedocumentsrelatedtotheprocurement,theselection
processandtheawardandexecutionofthecontract.
Eligibility
P.A..;Tofostercompetition,MCCpermitsrmsandindividualstooergoods,works,andnon-consultant
servicesforMCC-fundedProjects,exceptrmsandindividualsfromanycountrysubjecttosanctionorrestric-
tionbylaworpolicyoftheUnitedStates.Anyconditionsforparticipationshallbelimitedtothosethatare
essentialtoensurethermscapabilitytofulllthecontractinquestion.
P.A..8InconnectionwithanyMCC-fundedcontract,MCCdoesnotpermittheMCAEntitytodenypre-or
post-qualicationtoarmforreasonsunrelatedtoitscapabilityandresourcestoperformthecontractsuc-
cessfully,nordoesitpermittheMCAEntitytodisqualifyanybidderforsuchreasons.Consequently,theMCA
Entityshouldcarryoutduediligenceonthelegal,technical,andnancialqualicationsofbidderstobeassured
oftheircapabilitiesinrelationtothespeciccontract.
P.A..,Asexceptionstotheforegoing:
P.A..,(a)Firmsofacountryorgoodsmanufacturedinacountrymaybeexcludedif,(i)asamatteroflawor
ocialregulation,thecountryoftheMCAEntityprohibitscommercialrelationswiththatcountry,provided
thatMCCissatisedthatsuchexclusiondoesnotprecludeeectivecompetitionforthesupplyofgoods,
worksornon-consultantservicesrequired,or(ii)byanactofcompliancewithadecisionoftheUnitedNations
SecurityCounciltakenunderChapterVIIoftheCharteroftheUnitedNations,thecountryoftheMCAEntity
prohibitsanyimportofgoodsfrom,orpaymentsto,aparticularcountry,person,orentity.
P.A..,(b)Armwhichhasbeenengagedtoprovideconsultantservicesforthepreparationorimplementa-
tionofaProject,andanyofitsaliates,shallbedisqualiedfromsubsequentlyprovidinggoods,works,or
non-consultantservicesresultingfromordirectlyrelatedtothermsconsultantservicesforsuchpreparation
orimplementation.Tisprovisiondoesnotapplytothevariousrms(consultants,contractors,orsuppliers)
whichtogether,areperformingthecontractorsobligationsunderaturnkeyordesignandbuildcontract.(See
paragraph PI.A.:., of this Section I.A for discussion of the use of turnkey or design and build contracts).
P.A..,(c)Government-ownedenterprises,otherthanForceAccountunits,inthecountryoftheMCAEntity
mayparticipateonlyiftheycanestablishthatthey(i)arelegallyandnanciallyautonomous,(ii)operateunder
commerciallaw,and(iii)arenotadependentagencyoftheMCAEntity.
P.A..,(d)ArmdeclaredineligibleinaccordancewithParto,EligibilityVericationProcedures,shallbein-
eligibletobeawardedanMCC-fundedcontract.Tiswouldalsoremovefromeligibilityanyprocurementfrom
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 6
acountryorfromarmthatisorganizedinorhasitsprincipalplaceofbusinessorasignicantportionofits
operationsinanycountrythatissubjecttosanctionorrestrictionbylaworpolicyoftheUnitedStates.
Advance Contracting and Retroactive Financing
P.A..oIncertaincircumstances,suchastoaccelerateProjectimplementation,theMCAEntitymay,withthe
approvalofMCC,wishtoproceedwiththeprocurementofgoods,works,ornon-consultantservicesbefore
theobligationofCompactfundsthatwillnancesuchprocurement.Tisprocessisreferredtoasadvance
contracting.Insuchcases,theprocurementprocedures,includingadvertisement,shallbeinaccordancewith
theseGuidelines,andMCCshallreviewtheprocessusedbytheMCAEntity.TeMCAEntityundertakessuch
advancecontractingatitsownrisk,andanyconcurrencebyMCCwiththeprocedures,documentation,orpro-
posalforawarddoesnotcommitMCCtofundthecontractinquestion.Ifthecontractissigned,reimbursement
byMCCofanypaymentsmadebytheMCAEntityunderthecontractpriortoobligationoftherelatedCompact
fundsisreferredtoasretroactivenancing.UndernocircumstanceswillMCCreimbursetheMCAEntityfor
anycontractcostsifthecontractissignedpriortoobligationoffundsbyMCCandanyrequiredMCCapproval.
Joint Ventures
P.A..Anyrmmaybidindependentlyorinjointventure(solongasallrmsparticipatinginthejoint
venturearejointlyandseverallyliable)withdomesticrmsandiorwithforeignrms,butMCCdoesnotaccept
conditionsofbiddingwhichrequiremandatoryjointventuresorotherformsofmandatoryassociationbetween
rms.
MCC Review
P.A..aMCCshallreviewtheMCAEntityprocurementprocedures,documents,bidevaluations,award
recommendations,andcontractstoensurethattheprocurementprocessiscarriedoutinaccordancewiththe
agreedprocedures.TesereviewproceduresaredescribedinAttachmentoftheseGuidelines.
Misprocurement
P.A..MCCdoesnotfundexpendituresforgoods,works,ornon-consultantserviceswhichhavenotbeen
procuredinaccordancewiththeagreedprovisionsasdetailedintheCompact,anySupplementalAgreement,
theseGuidelines,andtheapprovedProcurementPlans.Insuchcases,MCCwilldeclareamisprocurementand
maycancelthatportionoftheCompactallocatedtothegoods,works,ornon-consultantservicesthathave
beenmisprocuredifcorrectivemeasuressatisfactorytoMCCarenottaken.MCCmay,inaddition,exercise
otherremediesprovidedforundertheCompact.Evenoncethecontractisawardedafterobtaininganapproval
fromMCC,MCCmaystilldeclareamisprocurementifitconcludesthattheapprovalwasissuedonthebasisof
incomplete,inaccurate,ormisleadinginformationfurnishedbytheMCAEntityorthetermsandconditionsof
thecontracthadbeenmodiedwithoutMCCapproval.
; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
References to MCC
P.A..TeMCAEntityshallusethefollowinglanguage(orsimilarlanguageacceptabletoMCC)whenrefer-
ringtoMCCinprocurementdocuments:
Te United States of Anerica acting through the Millenniun Challenge Corporation (MCC) and the jInsert
Country[ (the Governnent) have entered into a Millenniun Challenge Conpact for Millenniun Challenge Ac-
count assistance to help facilitate poverty reduction through econonic growth in [InsertCountry] (the Conpact)
in the anount of approxinately [InsertamountofCompact] USD (MCC Funding). Te Governnent, acting
through [InsertfulllegalnameoftheMCAEntity] (MCA-[InsertasAppropriate]) intends to apply a portion
of the MCC Funding to eligible paynents under a contract for which this [InsertTypeofBiddingDocument] is
issued. Any paynents nade under the proposed contract will be subfect, in all respects, to the terns and condi-
tions of the Conpact and related docunents, including restrictions on the use and distribution of MCC Funding.
^o party other than the Governnent and [theMCAEntity] shall derive any rights fron the Conpact or have any
clain to the proceeds of MCC Funding.
Fraud and Corruption
P.A..MCCrequiresthatallbeneciariesofMCCfunding,includingtheMCAEntityandanybidders,
suppliers,contractors,andsubcontractorsunderanyMCC-fundedcontracts,observethehigheststandardsof
ethicsduringtheprocurementandexecutionofsuchcontracts.MCCsPolicyonPreventing,Detecting,andRe-
mediatingFraudandCorruptioninMCCOperationsisapplicabletoallprocurementsinvolvingMCCfunding
andcanbefoundontheMCCWebsite.Inpursuanceofthispolicy,thefollowingprovisionsshallapply.
P.A..6(a)Forthepurposesoftheseprovisions,thetermssetforthbelowaredenedasfollows:
(i)coercivepracticemeansimpairingorharmingorthreateningtoimpairorharm,directlyorindirectly,
personsortheirproperty,toinuencetheirparticipationinaprocurementprocess,oraecttheexecutionofa
contract,
(ii)collusivepracticemeansaschemeorarrangementbetweentwo(a)ormoreparties,withorwithoutthe
knowledgeoftheMCAEntity,designedtoestablishpricesatarticial,noncompetitivelevelsortootherwise
deprivetheMCAEntityofthebenetsoffreeandopencompetition,
(iii)corruptpracticemeanstheoering,giving,receiving,orsoliciting,directlyorindirectly,ofanythingof
valuetoinuencetheactionsofapublicocial(includingMCAEntityandMCCsta,andemployeesofother
organizationstakingorreviewingselectiondecisions)intheselectionprocessorincontractexecution,orthe
makingofanypaymenttoanythirdparty,inconnectionwithorinfurtheranceofacontract,inviolationof(A)
theUnitedStatesForeignCorruptPracticesActof,;;,asamended(USC;8aetseq.)(FCPA),oranyother
actionstakenthatotherwisewouldbeinviolationoftheFCPAiftheFCPAwereapplicable,or(B)anyapplicable
lawintheMCAEntityscountry,
(iv)fraudulentpractice meansanyactoromission,includinganymisrepresentation,inordertoinuence(or
attempttoinuence)aselectionprocessortheexecutionofacontract,toobtainanancialorotherbenet,or
toavoid(orattempttoavoid)anobligation,
(v)obstructivepracticemeans
(aa)destroying,falsifying,alteringorconcealingofevidencematerialtotheinvestigationormakingfalsestate-
mentstoinvestigatorsinordertoimpedeaninvestigationintoallegationsofacoercive,collusive,corrupt,fraud-
ulent,orprohibitedpractice,andthreatening,harassing,orintimidatinganypartytopreventitfromdisclosing
itsknowledgeofmattersrelevanttotheinvestigationorfrompursuingtheinvestigation,and
(bb)actsintendedtoimpedetheexerciseoftheinspectionandauditrightsofMCCprovidedundertheCom-
pact,andrelatedagreements,and
(vi)prohibitedpracticemeansanyactionthatviolatesSectionE(CompliancewithAnti-Corruption,Anti-
MoneyLaunderingandTerroristFinancingStatutesandOtherRestrictions)oftheGeneralProvisionsAnnex
thatwillbemadeapartofMCC-fundedcontractsandmaybefoundontheMCCwebsiteathttpwww.ncc.
govguidanceconpactgeneral_provisions.pdf.
P.A..6(b)TeMCAEntitywillrejectabid(andMCCwilldenyapprovalofaproposedcontractaward)ifit
determinesthatthebidderrecommendedforawardhas,directlyorthroughanagent,engagedincoercive,col-
lusive,corrupt,fraudulent,obstructive,orprohibitedpracticesincompetingforthecontractinquestion.
P.A..6(c)MCCandtheMCAEntityhavetherighttosanctionabidder,supplier,contractor,orsubcontrac-
tor,includingdeclaringsuchpartyineligible,eitherindenitelyorforastatedperiodoftime,tobeawardedan
MCC-fundedcontractifatanytimeeithertheMCAEntityorMCCdeterminesthatthebidder,supplier,con-
tractor,orsubcontractorhas,directlyorthroughanagent,engagedincoercive,collusive,corrupt,fraudulent,
obstructiveorprohibitedpracticesincompetingfor,orinexecuting,suchacontract.
P.A..6(d)MCCandtheMCAEntityhavetherighttorequirethataprovisionbeincludedinsolicitation
documentsandinMCC-fundedcontractsrequiringabidder,supplier,contractor,orsubcontractortopermit
theMCAEntity,MCC,oranydesigneeofMCC,toinspectitsaccounts,recordsandotherdocumentsrelating
tothesubmissionofabidorperformanceofanMCC-fundedcontractandtohavethemauditedbyauditorsap-
pointedbyMCCortheMCAEntitywiththeapprovalofMCC.
, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
P.A..6(e)MCChastherighttocancelanyportionoralloftheMCCfundingallocatedtoacontractifit
determinesatanytimethatrepresentativesofabeneciaryoftheMCCfundingengagedincoercive,collusive,
corrupt,fraudulent,obstructiveorprohibitedpracticesduringtheselectionprocessortheexecutionofan
MCC-fundedcontract,withouttheMCAEntityhavingtakentimelyandappropriateactionsatisfactorytoMCC
toremedythesituation.
P.A..;WiththespecicapprovalofMCC,theMCAEntitymayintroduce,intobidformsforcontractsfunded
byMCC,anundertakingofthebiddertoobserve,incompetingforandexecutingacontract,thecountryslaws
againstfraudandcorruption(includingbribery),aslistedinthesolicitationdocumentsMCCwillacceptthe
introductionofsuchundertakingattherequestoftheMCAEntity,providedthearrangementsgoverningsuch
undertakingaresatisfactorytoMCC.
Price-Reasonableness Analysis
P.A..8OneoftheMCCProgramProcurementPrinciplesisthatNomorethanacommerciallyreasonable
price(asdetermined,forexample,byacomparisonofpricequotationsandmarketprices)shallbepaidto
procuregoods,works,andnon-consultantservices.Toensurecompliancewiththisprinciple,theMCAEntity
shallsystematicallygatherbidandpriceinformationforallprocurementsandusethisaspartoftheprocessof
conductingaprice-reasonablenessanalysisofthepricesoeredinaprocurementprocess(bothforcompetitive
andsingle-sourceprocurementsforgoods,works,consultantandnon-consultantservicesinaccordancewith
Attachment,GuidanceonthePrice-ReasonablenessAnalysis.
II. Competitive Bidding
A. General
Introduction
P.A.a.TeobjectiveofCompetitiveBidding,asdescribedintheseGuidelines,istoprovidealleligibleprospec-
tivebidderswithtimelyandadequatenoticationoftheMCAEntitysrequirementsandanequalopportunityto
bidfortherequiredgoods,works,andnon-consultantservices.
Type and Size of Contracts
P.A.a.aTesolicitationdocumentsshallclearlystatethetypeofcontracttobeenteredintoandcontainthe
proposedcontractprovisionsappropriateforthetypeofcontracttobeused.Temostcommontypesof
contractsprovideforpaymentsonthebasisofalumpsum,unitprices,reimbursablecostplusfees,orcombina-
tionsthereof.Requirementscontracts,indenitedelivery-indenitequantitycontractsandblanketpurchase
agreementsarealsopermitted.AsdiscussedinPart,reimbursable-costcontractsareacceptabletoMCConly
inexceptionalcircumstancessuchasconditionsofhighriskorwherecostscannotbedeterminedinadvance
Piogiam Piocuiement Cuidelines, Octobei a, aoo, o
withsucientaccuracy.Suchcontractsshallincludeappropriateincentivestolimitcostsandshallreferencethe
relevantMCCCostPrinciplesfoundattheMCCwebsite,www.ncc.gov.
P.A.a.Tesizeandscopeofindividualcontractswilldependonthemagnitude,nature,andlocationofthe
Project.ForProjectsrequiringavarietyofgoodsandworks,separatecontractsgenerallyareawardedforthe
supplyandiorinstallationofdierentgoodsandforworks.Techoiceofcontractwilldependuponprocure-
menteciency,minimizingoverhead,mobilizationcosts,easingthecontractadministrationandoversight
burden,marketconsiderations,andfundingavailability.
P.A.a.ForaProjectrequiringsimilarbutseparateitemsofgoodsorworks,bidsmaybeinvitedunderalterna-
tivecontractoptionsthatwouldattracttheinterestofbothsmallandlargermswhichcouldbeallowed,attheir
option,tobidforindividuallotsorforagroupofsimilarlots.Allbidsandcombinationsofbidsshallbereceived
bythesamedeadlineandopenedandevaluatedsimultaneouslysoastodeterminethebidorcombinationof
bidsoeringthelowestevaluatedcosttotheMCAEntity.
PA.a.Incertaincases,MCCmayacceptorrequireaturnkeycontractunderwhichthedesignandengineer-
ing,thesupplyandinstallationofequipment,andtheconstructionofacompletefacilityorworksareprovided
withinonecontract.Alternatively,theMCAEntitymayremainresponsibleforthedesignandengineering,and
invitebidsforasingleresponsibilitycontractforthesupplyandinstallationofallgoodsandworksrequiredfor
theProjectcomponent.Designandbuild,andmanagementcontractingcontractsarealsoacceptablewhereap-
propriate.
Two-Stage Bidding
P.A.a.6Inthecaseofturnkeycontractsorcontractsforlargecomplexfacilitiesorworksofaspecialnature,or
complexinformationandcommunicationtechnology,itmaybeundesirableorimpracticaltopreparecomplete
technicalspecicationsinadvance.Insuchacase,atwo-stagebiddingproceduremaybeused,underwhich
rstun-pricedtechnicalproposalsonthebasisofaconceptualdesignorperformancespecicationsareinvited,
subjecttotechnicalaswellascommercialclaricationsandadjustments,tobefollowedbyamendedbidding
documentsandthesubmissionofnaltechnicalproposalsandpricedbidsinthesecondstage.
Notication and Advertising
P.A.a.;Timelynoticationofprocurementopportunitiesisessentialincompetitivebidding.Onatleastasemi-
annualbasis,theMCAEntityshallpublicizethroughaGeneralProcurementNotice(GPN),procurements
plannedfortheupcomingperiodasidentiedintheadoptedProcurementPlanwhichwasapprovedbyMCC.
TeGPNshallbeadvertisedinamannertoprovidereasonablenoticeofplannedprocurementstopotential
suppliersandcontractors.AdvertisementoftheGPN,shallincludepostinginEnglishattheMCAEntitysweb-
site(orsuchotherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC),theDevelopment
GatewayMarketwebsiteatwww.dgnarket.con(dgMarket)andtheUnitedNationsDevelopmentBusiness
onlinewebsiteatwww.devbusiness.con(UNDB Online).TeMCAEntityshallalsopublishtheGPNina
newspaperofwidecirculationinthecountryoftheMCAEntityandinsuchothermediaoutletsasappropriate
orasrequestedfromtimetotimebyMCC.IncountrieswheretheociallanguageisotherthanEnglish,the
GPNshallbepublishedintheociallocallanguageofthecountryoftheMCAEntityinatleastonenewspaper
ofwidecirculationinthecountryandontheMCAEntityswebsite.
P.A.a.8Invitationstoprequalifyortobid,asthecasemaybe,shallbeadvertisedasSpecicProcurement
Notices(SPN).Forcontractsforgoodsandnon-consultingserviceswithanestimatedvalueatorover
aoo,oooUSDandcontractsforworksvaluedatorover,ooo,oooUSD,suchinvitationsshallbepublishedin
atleastone()newspaperofnationalcirculationinthecountryoftheMCAEntityandpostedattheMCA
Entityswebsite(orsuchotherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC),at
the dgMarketwebsiteandatUNDBOnline.Contractsvaluedbelowtherespectivethresholdscanbeadvertised
inthevenueofpreferenceoftheMCAentity-local,regionalandiorinternational.Publicationinlocalprintand
broadcastandothernationalandinternationalmediaisencouragedaslongasthepostingdoesnotpre-datethe
requiredpostings.TeMCAEntityshallpublishtheSPNsinsucienttimetoenableprospectivebiddersto
obtainpre-qualicationorbiddingdocumentsandprepareandsubmittheirresponses.MCCreservestheright
toapprovethetextofanySPN.
Pre-qualication of Bidders
P.A.a.,Pre-qualicationcanbeconductedforlargeorcomplexworks,orinanyothercircumstancesinwhich
thehighcostsofpreparingdetailedbidscoulddiscouragecompetition,suchascustomdesignedequipment,
industrialplants,specializedservices,somecomplexinformationandtechnologyandcontractstobeletunder
turnkey,designandbuild,ormanagementcontracting.Tisalsoensuresthatinvitationstobidareextendedonly
tothosewhohaveadequatecapabilitiesandresources.Pre-qualicationshallbebasedentirelyuponthecapabil-
ityandresourcesofprospectivebidderstoperformtheparticularcontractsatisfactorily,takingintoaccountthe
factors,methods,criteria,andrequirementsdenedinSectionIIIoftheStandardBiddingDocumentsforthe
Pre-qualicationofWorks.
P.A.a.oTeinvitationtoprequalifyforbiddingonspeciclotsorgroupsofsimilarlotsshallbeadvertised
asdescribedinParagraphsP.A.a.;andP.A.a.8above.Tescopeofthecontractandaclearstatementofthe
requirementsforqualicationshallbesenttothosewhorespondedtotheinvitation.TeMCAEntityshallin-
formallapplicantsoftheresultsofpre-qualication.Followingpre-qualication,thebiddingdocumentsshallbe
madeavailabletothequaliedprospectivebidders.Forpre-qualicationforgroupsofcontractstobeawarded
overaperiodoftime,alimitforthenumberortotalvalueofawardstoanyonebiddermaybemadeonthebasis
ofthebiddersresources.Telistofprequaliedrmsinsuchinstancesshallbereviewedannuallyandupdated
asnecessary.Vericationoftheinformationprovidedinthesubmissionforpre-qualicationshallagainbe
conrmedpriortoawardofcontract,andawardmaybedeniedtoabidderthatisjudgednolongertohavethe
capabilityorresourcestoperformthecontractsuccessfully.
B. Bidding Documents
General
P.A.a.Tebiddingdocumentsshallfurnishallinformationnecessaryforaprospectivebiddertopreparea
bidforthegoods,worksornon-consultantservicestobeprovided.Whilethedetailandcomplexityofthese
documentsmayvarywiththesizeandnatureoftheproposedbidpackageandcontract,theygenerallyinclude:
invitationforbids,instructionstobiddersandabiddatasheet:evaluationandqualicationcriteria,bidding
forms,formofcontract,includingbothgeneralandspecicconditions,specicationsanddrawings,relevant
technicaldata(includingofgeologicalandenvironmentalnature),listofgoodsorbillofquantities,deliverytime
orscheduleofcompletion,andnecessaryappendices,suchasformatsforvarioussecurities.Tebasisforbid
evaluationandselectionofthelowestevaluatedbidshallbeclearlyoutlinedintheinstructionstobiddersandior
thespecications.Ifafeeischargedforthebiddingdocuments,itshallbereasonableandreectonlythecostof
theirprintinganddeliverytoprospectivebidders,andshallnotbesohighastodiscouragequaliedbidders.Te
MCAEntitymayuseanelectronicsystemtodistributebiddingdocuments,providedthatMCCissatisedwith
theadequacyofsuchsystem.Ifbiddingdocumentsaredistributedelectronically,theelectronicsystemshallbe
securetoavoidmodicationstothebiddingdocumentsandshallnotrestricttheaccessofbidderstothebidding
documents.Guidanceoncriticalcomponentsofthebiddingdocumentsisgiveninthefollowingparagraphs.
P.A.a.aTeMCAEntityshallusetheappropriateStandardBiddingDocuments(SBDs)madeavailableby
MCCpursuanttoPartoftheseGuidelines.TeSBDsmaybemodiedtoaddressProject-specicconditions,
subjecttoapprovalbyMCCwhenthechangeismaterial.Totheextentpossible,suchchangesshallbeintro-
ducedthroughtheBidDataSheets(BDSs),AppendixtoBidorthroughtheSpecialConditionsofContract
(SCC)andnotbyintroducingchangesintheGeneralConditionsofContract(GCC).
Validity of Bids and Bid Security
P.A.a.Biddersshallberequiredtosubmitbidsvalidforaperiodspeciedinthebiddingdocumentswhich
shallbesucienttoenabletheMCAEntitytocompletethecomparisonandevaluationofbids,reviewthe
recommendationofawardwithMCC(ifrequired),andobtainallthenecessaryapprovalssothatthecontract
canbeawardedwithinthatperiod.
P.A.a.TeMCAEntityhastheoptionofrequiringabidsecurity.Whenused,thebidsecurityshallbeinthe
amountandformspeciedinthebiddingdocumentsandshallremainvalidforasucienttimebeyondthe
validityperiodofthebids,inordertoprovidereasonabletimefortheMCAEntitytoactifthesecurityistobe
called.TeformatofthebidsecurityshallbeinaccordancewiththeStandardBiddingDocumentsandshallbe
issuedbyareputablebankornancialinstitutionselectedbythebidder.Iftheinstitutionissuingthesecurityis
locatedoutsidethecountryoftheMCAEntity,itshallhaveacorrespondentnancialinstitutionlocatedinthe
countryoftheMCAEntity.Exceptundercertaincircumstances(e.g.,whereabidderwithdrawsitsbidduring
theperiodofbidvalidity,whereabidderdoesnotacceptcertaincorrectionstoitsbid,orwhereanotherwise
successfulbidderfailstosignthecontractorprovidetheperformancesecuritywithinthetimespecied)that
aretobeclearlystatedinthebiddingdocuments,bidsecurityshallbereleasedtounsuccessfulbiddersoncethe
contracthasbeensignedwiththewinningbidder.
Language
P.A.a.Alladvertisementsforcontractsandnoticesofcontractawardsforcontractsvaluedatorabove
oo,oooUSD,whetherpostedattheMCAEntityswebsite,atdgMarket,orUNDB Onlineshallbepostedin
English,and,atthediscretionoftheMCAEntitymayalsobepublishedintheociallanguageofthecountryof
theMCAEntity(ifdierentfromEnglish).Advertisementsforcontractsandnoticesofcontractawardsforcon-
tractsvaluedatlessthanoo,oooUSDmaybepublishedinEnglishortheociallocallanguageofthecountryof
theMCAEntity(ifdierentfromEnglish)orinbothlanguagesatthediscretionoftheMCAEntity.TeEnglish
versionwillcontrolintheeventofdiscrepanciesbetweentheEnglishversionandalocallanguageversion.
P.A.a.6Forallcontractsatoraboveoo,oooUSD,thesolicitationdocuments,thedocumentsrespondingto
thesesolicitations(includingthebids)andthecontractsthemselvesshallbepreparedinEnglish,andEnglish
shallgoverncontractualrelationsbetweentheMCAEntityandthesupplierorcontractor.Atthediscretionof
theMCAEntity,thesolicitationdocumentsalsomaybepreparedinthelocalociallanguageofthecountry
oftheMCAEntity(ifdierentfromEnglish).Forcontractsvaluedatlessthanoo,oooUSD,anysolicitation
document,respondingdocumentsandcontractsmaybepreparedinEnglishorthelocalociallanguageofthe
countryoftheMCAEntity(ifdierentfromEnglish)orbothatthediscretionoftheMCAEntity,providedthat
ifthedocumentsarepreparedinbothlanguages,theEnglishversionwillcontrol.However,contractorsandsup-
pliersshallnotbepermittedorrequiredtosigncontractsintwolanguages.
P.A.a.6.TeMCAEntitymayseekalimitedwaiverfromthelanguagerequirementsofParagraphsP.A.a.
andP.A.a.6asdescribedinPart,,Language.
Clarity of Bidding Documents
P.A.a.;Biddingdocumentsshallbesowordedastopermitandencourageinternationalcompetitionandshall
setforthclearlyandpreciselytheworktobecarriedout,thelocationofthework,thegoodstobesupplied,
theplaceofdeliveryorinstallation,theschedulefordeliveryorcompletion,minimumperformancerequire-
ments,andthewarrantyandmaintenancerequirements,aswellasanyotherpertinenttermsandconditions.
Inaddition,thebiddingdocuments,whereappropriate,shalldenethetests,standards,andmethodsthatwill
beemployedtojudgetheconformityofequipmentasdelivered,orworksasperformedwiththespecications.
Drawingsshallbeconsistentwiththetextofthespecications,andanorderofprecedencebetweenthetwo
shallbespecied.
P.A.a.8Tebiddingdocumentsshallspecifyanyfactors,inadditiontoprice,whichwillbetakenintoaccount
inevaluatingbids,andhowsuchfactorswillbequantiedorotherwiseevaluated.Ifbidsbasedonalternative
designs,materials,completionschedules,etc.,arepermitted,conditionsfortheiracceptabilityandthemethod
oftheirevaluationshallbeexpresslystated.
P.A.a.,Allprospectivebiddersshallbeprovidedthesameinformation,andshallbeassuredofequalop-
portunitiestoobtainadditionalinformationonatimelybasis.TeMCAEntityshallprovidereasonableaccess
toProjectsitesforvisitsbyprospectivebidders.Forworksorcomplexsupplycontracts,particularlyforthose
requiringrefurbishingexistingworksorequipment,apre-bidconferencemaybearrangedwherebypotential
biddersmaymeetwithrepresentativesoftheMCAEntitytoseekclarications(inpersonoronline).Minutes
oftheconferenceshallbeprovidedtoallprospectivebidderswithacopyincludedintherecordoftheprocure-
ment.Anyadditionalinformation,clarication,correctionoferrors,ormodicationsofbiddingdocuments
shallbesenttoeachrecipientoftheoriginalbiddingdocumentsinsucienttimebeforethedeadlineforreceipt
ofbidstoenablebidderstotakeappropriateactions.Ifnecessary,thedeadlineshallbeextended.Foranybidding
documentsoriginallyapprovedbyMCC,MCCwillprovidenalapprovalofallresponses,modications,and
addendabeforetheirbeingsentbytheMCAEntitytotheprospectivebiddersorconsultants.
Standards and Technical Specication
P.A.a.aoStandardsandtechnicalspecicationsquotedinbiddingdocumentsshallpromotethebroadest
possiblecompetition,whileassuringthecriticalperformanceorotherrequirementsforthegoods,worksor
non-consultingservicesunderprocurement.Asfaraspossible,theMCAEntityshallspecifyinternationallyac-
ceptedstandardssuchasthoseissuedbytheInternationalStandardsOrganizationwithwhichtheequipmentor
materialsorworkmanshipshallcomply.Wheresuchinternationalstandardsareunavailableorareinappropri-
ate,nationalstandardsmaybespecied.Inallcases,thebiddingdocumentsshallstatethatequipment,material,
orworkmanshipmeetingtheindustrystandards,whichpromiseatleastsubstantialequivalence,willalsobe
accepted.
Use of Brand Names
P.A.a.aSpecicationsshallbebasedonrelevantcharacteristicsandiorperformancerequirements.References
tobrandnames,catalognumbers,orsimilarclassicationsshallbeavoided.Ifitisnecessarytoquoteabrand
nameorcatalognumberofaparticularmanufacturertoclarifyanotherwiseincompletespecication,thewords
orequivalentshallbeaddedaftersuchreference.Tespecicationshallpermittheacceptanceofoersfor
goodswhichhavesimilarcharacteristicsandwhichprovideperformanceatleastsubstantiallyequivalentto
thosespecied.
Over-Specication
Denition
P.A.a.aaOver-specicationoccurswhenaspecicationexceedstheminimumstandardsnecessarytocomplete
theintendedtask.
Procedures for Verifying Proper Specication
P.A.a.aMCAEntitiesmustproposespecicationsfortheprocurementofgoodsthatmeettheminimum
requirementsnecessarytocompletetheintendedtask.Goodswhichmeettheminimumstandardsdonothave
tobegoodsofthelowestpossiblequality,butmusthavetheminimumphysical,functionalandiorperformance
characteristicsrequiredtocompletetheintendedworkinaneectiveandecientmanner.
TeProcurementAgent(s)oftheMCAEntityisthenresponsibleforverifyingthespecicationsandquestioning
anyinstanceswhereover-specicationisindicated.Extraordinarycircumstanceswhichmayrequirespecica-
tionsaboveminimumrequirementsmustbedocumentedandnotedwhensubmittedforMCCapproval.
Consequences of Over-Specication
P.A.a.aInallinstancesofover-specication,theprimaryconsequencesarerestrictionofcompetitionandthe
potentialforexcessiveandinecientexpenditureoffunds.Competitionisrestrictedbecauseover-specication
excludesviablealternativesthatcouldmeettheminimumstandardsoftheintendedusewithoutinhibiting
programeciency.Tisnotonlylimitsthenumberofbidsthatcouldbereceivedandconsidered,butrepresents
thepotentialforintentionalmanipulationandfraud.Tereisalsothepotentialforwasteoffundsbecauseover-
specicationcanalsoresultinunnecessarypriceincreases.
Pricing
P.A.a.aUnlessotherwisespeciedinthesolicitationdocuments,bidsforgoodsshallbeinvitedonthebasisof
(a)CIP
a
forallgoodsmanufacturedabroad,includingthosepreviouslyimported,and(b)EXW
forgoodsmanu-
facturedorassembledinthecountryoftheMCAEntity,plusthecostofinlandtransportationandinsurance
totheplaceofdestination.Biddersshallbeallowedtoarrangeforoceanandothertransportationandrelated
insurancefromanyeligiblesource.Whereinstallation,commissioning,orothersimilarservicesarerequiredto
beperformedbythebidder,asinthecaseofsupplyandinstallationcontracts,thebiddershallberequiredto
quotefortheseservices,inaddition.
P.A.a.a6Inthecaseofturnkeycontracts,thebiddershallberequiredtoquotethepriceoftheinstalledplant
atsite,includingallcostsforsupplyofequipment,marineandlocaltransportationandinsurance,installation,
a RefertoINCOTERMSaooo,publishedbytheInternationalChamberofCommerce,CoursAlberter,;oo8Paris,France,fordenitionofCIP.
RefertoINCOTERMSaooo,publishedbytheInternationalChamberofCommerce,CoursAlberter,;oo8Paris,France,fordenitionofEXW.
andcommissioning,aswellasassociatedworksandallotherservicesincludedinthescopeofcontractsuchas
design,maintenance,operation,etc.
P.A.a.a;Biddersforworkscontractsshallberequiredtoquoteunitpricesorlumpsumpricesfortheperfor-
manceoftheworks.Biddersshallbeallowedtoobtainallinputsfromanyeligiblesourcesothattheymayoer
theirmostcompetitivebids.
Price Adjustment
P.A.a.a8Biddingdocumentsshallstateeither(a)thatbidpriceswillbexedor(b)thatpriceadjustmentswill
bemadetoreectanychanges(upwardsordownwards)inmajorcostcomponentsofthecontract,suchaslabor,
equipment,materials,andfuel.Priceadjustmentprovisionsareusuallynotnecessaryinsimplecontractsinvolv-
ingdeliveryofgoodsorcompletionofworkswithineighteenmonths,butmightbeincludedincontractswhich
extendbeyondeighteen(8)monthswiththeapprovalofMCC.
P.A.a.a,Pricesmaybeadjustedbytheuseofaprescribedformula(orformulae)whichbreaksdownthetotal
priceintocomponentsthatareadjustedbypriceindicesspeciedforeachcomponentor,alternatively,onthe
basisofdocumentaryevidence(includingactualinvoices)providedbythesupplierorcontractor.Teuseofthe
formulamethodofpriceadjustmentispreferabletothatofdocumentaryevidence.Temethodtobeused,the
formula(ifapplicable),andthebasedateforapplicationshallbeclearlydenedinthebiddingdocuments.Ifthe
paymentcurrencyisdierentfromthesourceoftheinputandcorrespondingindex,acorrectionfactorshallbe
appliedintheformula,toavoidincorrectadjustment.
Transportation and Insurance
P.A.a.oBiddingdocumentsshallpermitsuppliersandcontractorstoarrangetransportationandinsurance
fromanyeligiblesource.Biddingdocumentsshallstatethetypesandtermsofinsurancetobeprovidedby
thebidder.Teindemnitypayableundertransportationinsuranceshallbeatleastopercentofthecontract
amountdenominatedinUnitedStatesdollarsorlocalcurrencyofthecountryoftheMCAEntitydepending
uponthecurrencyofthecontract.Forworks,acontractorsallriskformofpolicyusuallyshallbespecied.
ForlargeProjectswithseveralcontractorsonasite,awrapuportotalProjectinsurancearrangementmaybe
obtainedbytheMCAEntity,inwhichcasetheMCAEntityshallseekcompetitionforsuchinsurance.
Allowable Currencies for Bids
P.A.a.Biddingdocumentsshallstatethecurrencyorcurrenciesinwhichbiddersaretostatetheirprices.
Biddersmustcomplywiththecurrencyrestrictionsassetoutinthesolicitationdocuments.Anybidorproposal
thatdeviatesfromthecurrencyrequirementasstatedinthesolicitationdocumentsmayberejectedasnon-
responsive.
P.A.a.aInstatingthecurrencyorcurrencies:
P.A.a.a(a)TeMCAEntitymayallowbidderstosubmitbidsusingUnitedStatesdollars,thelocalcurrency
ofthecountryoftheMCAEntity,or,ifjustiedbysoundbusinessreasons,acombinationofthetwo.Noother
currencyorcombinationsofcurrenciesareallowed.
P.A.a.a(b)TeMCAEntitymayrestrictbidderstouseonlyonecurrencyandnotacombinationofthetwo,or
eventooneparticularcurrencyoftheMCAEntityschoice,evenifitisthelocalcurrencyofthecountryofthe
MCAEntity.
Currency Conversion for Bid Comparison
P.A.a.TebidpriceisthesumofallpaymentsinUnitedStatesdollarsorthecurrencyofthecountryofthe
MCAEntityasapplicable.Forthepurposeofcomparingprices,bidpricesshallbeconvertedtoeitheroneofthe
twocurrenciesasselectedbytheMCAEntityandstatedinthebiddingdocuments.TeMCAEntityshallmake
thisconversionbyusingtheselling(exchange)ratesforthosecurrenciesquotedbyanocialsource(suchasthe
CentralBankofthecountryoftheMCAEntityortheOANDAwebsite-httpwww.oanda.conconvertclassic),
byacommercialbankorbyaninternationallycirculatednewspaperforsimilartransactionsonadateselected
inadvance.Suchsourceanddateshallbespeciedinthebiddingdocuments,providedthatthedateshallnot
beearlierthanfourweekspriortothedeadlineforthereceiptofbidsandnolaterthantheoriginaldateforthe
expirationoftheperiodofbidvalidity.
Allowable Currencies for Contract Denomination and Payment
P.A.a.ContractDenomination.ContractscanbedenominatedeitherinUnitedStatesdollars,thelocalcur-
rencyofthecountryoftheMCAEntity,or,ifjustiedbysoundbusinessreasons,acombinationofthetwo.
P.A.a.ContractPayment.Paymentneednotbemadeinthecurrencydenominatedintheproposalorbid
documents.ContractscanbepayableeitherinUnitedStatesdollars,thelocalcurrencyofthecountryofthe
MCAEntity,or,ifjustiedbysoundsbusinessreasons,acombinationofthetwo.
P.A.a.6Inallcaseswherethecurrencydenominateddiersfromthecurrencyforpayment,aspecicex-
changeratemustbexedatthedateofcontractsigningandclearlydenedatthattimeinthecontractitself.
P.A.a.;TeMCAEntitymaynotrequireforeignbidderstobepaidinthelocalcurrencyofthecountryofthe
MCAEntity,theforeignbiddermustbepaidinUnitedStatesdollarsunless,atitsoption,itrequeststobepaid
inthelocalcurrencyofthecountryoftheMCAEntity.
Terms and Methods of Payment
P.A.a.8Biddingdocumentsshallspecifythetermsandmethodsofpayment.Termsofpaymentmaynotbe
usedasanevaluationcriterionandmaynotaectthebidevaluation.
P.A.a.,Paymenttermsshallbeinaccordancewiththeinternationalcommercialpracticesapplicabletothe
specicgoods,works,ornon-consultantservices.Tecontractshallprovideforthepaymentofinterestifpay-
mentisdelayedduetothefaultoftheMCAEntityoritsagentsbeyondthetimeallowedinthecontract,andthe
rateofchargesshallbespeciedinthecontract.
P.A.a.,(a)Contractsforthesupplyofgoodsshallprovideforfullpaymentonthedeliveryandinspection,if
sorequired,ofthecontractedgoodsexceptforcontractsinvolvinginstallation,commissioningandtesting,in
whichcaseaportionofthepaymentmaybemadeafterthesupplierhascompliedwithallitsobligationsunder
thecontract.Teuseoflettersofcreditisencouragedsoastoassurepromptpaymenttothesupplier.Inmajor
contractsforgoodsandplants,provisionshallbemadeforpartialpaymentsforworkdoneand,incontractsof
longduration,forpartialpaymentsduringtheperiodofmanufactureorassembly.
P.A.a.,(b)Contractsforworksshallprovideinappropriatecasesforpartialpaymentsforworkdoneinfur-
theranceofcontractperformanceandreasonableretentionamountstobereleaseduponcompliancewiththe
contractorsobligationsunderthecontract.
P.A.a.oAnypaymentforworkdoneinfurtheranceofthecontractshallberelatedtotheestimatedamountof
theseexpensesandbespeciedinthebiddingdocuments.Amountsandtimingofotherpaymentstobemade,
suchasformaterialsdeliveredtothesiteforincorporationintheworks,shallalsobespecied.
Advance Payments
P.A.a.Advancepaymentsareadvancesoffundstoasupplierorcontractorbefore,inanticipationof,andfor
thepurposeofperformanceunderthecontract.Sinceadvancepaymentsarenotmeasuredbycontractperfor-
mance,theydierfromprogresspaymentswhicharebasedonactualperformanceoftasksinfurtheranceofthe
contract.Advancepaymentsmaybeadvisabletocovertheinitialmobilizationexpensesforlargecivilworksor
custom-madegoods.
P.A.a.aBecauseadvancepaymentsaremadebeforetheMCAEntityreceivesanyvalueforthefunds,advance
paymentsmaybeauthorizedonlywhenprogresspaymentsarenotviablebecauseofthedicultyinestablishing
anappropriatepaymentschedule.Advancepaymentshallbelimitedtoofthecontractvalueforgoodsand
forworksprocurementsandofornon-consultingservicesprocurements,unlessMCCapprovesawaiverfor
ahigherpercentage.Tejusticationandapprovalofadvancepaymentsmustbeincludedintheprocurement
les.
P.A.a.Whereadvancepaymentshavebeenproperlyjustiedandapproved,therelatedbiddingdocuments
shallspecify(a)theamountoftheadvancepayment(asapercentageofthecontractvaluedeterminedinac-
cordancewiththeseGuidelines),(b)theformofsecurityrequiredinconnectionwiththeadvancepayment(as
discussedmorefullyinP.A.a.),and(c)themannerinwhichsuchadvancepaymentwillbeliquidatedagainst
futureinvoicepayments.Generally,advancepaymentsareliquidatedfrompaymentsmadetothesupplieror
contractorduringperformanceofthecontract,usuallybydeductingapercentagefromeachscheduledpayment
forperformance.
Advance Payment Security Guarantees
P.A.a.Inallcaseswhereadvancepaymentsareauthorized,includingpaymentmadeuponsignatureofa
contractforgoods,works,ornon-consultantservices,anadvancepaymentsecurityguaranteeisrequired.Tis
securityshallbeprovidedinanappropriateformandamount,asspeciedbytheMCAEntityinthebidding
document.
Progress Payments
P.A.a.ProgresspaymentsarethepreferredformofpaymentforallMCC-fundedcontracts,whetherfor
goods,works,orservices.Progresspaymentsaremultiplepayments,eachpayableuponacceptablepartialper-
formanceofthecontract.Althoughprogresspaymentsforpartialperformancegenerallyaretreatedasamethod
ofpaymentandnotasamethodofcontractnancing,paymentforpartialperformancecanprovidesuppliers
andcontractorswithneededworkingcapitaltoperformthecontractwithoutuseofanadvancepaymentto
providecontractnancing.
P.A.a.6Wheneverappropriate,thecontractdeliverablesandthepaymentscheduleshouldbedesignedto
permitacceptanceandpaymentfordiscreteportionsofcontractperformancethatcomplywithapplicablecon-
tracttermsassoonasaccepted.Duringtheearlystagesofcontractperformance,paymentsmaybescheduled
fordeliverablesofsuchtasksoritemsofworkas(a)aworkplanorinceptionreport,(b)achievementofdened
milestones,suchasordersplacedorstamobilized,(c)establishmentofanoce,and(d)depositsongoods
orservicesrequiredforcontractperformance.Oncethecontractorhasmobilized,thepaymentswouldmost
likelybelessfrequentandthedeliverablestotriggerpaymentwouldbetiedtoperformanceoftheprogrammatic
work,suchasapercentageorstageofcompletion,accomplishmentofdenedmilestonesorotherquantiable
measuresofresults.
P.A.a.;Progresspaymentsbasedoncostsareappropriateonlyinthecaseofcost-reimbursementtypeofcon-
tracts.Progresspaymentsbasedoncostswouldbebasedonthedocumentationsupportingthecostsincurredby
thesupplierorcontractorasworkprogressesunderthecontract.Cost-reimbursementcontractsareextremely
diculttoadminister.Inallcaseswhereprogresspaymentsbasedoncostsareused,theMCAEntitymusten-
surethatallcostsundersuchcontractsareallowableandappropriatelyrecordedandjustiedinaccordancewith
therelevantMCCCostPrinciples.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ao
Final payment
P.A.a.8Finalpaymentismadeonlyafterallcontractperformanceiscompletedandaccepted.Normally,aper-
centageofthecontractamountisretainedforaperiodoftimeafterphysicalcompletionanddeliveryofgoodsor
works.Retentionsarenotnormallyusedundercontractsforservices.
Performance Guarantees
P.A.a.,Inthecaseofaworksprocurement,performancesecuritymustbeprovidedbythecontractorinan
amountsucienttoprotecttheMCAEntityincaseofbreachofcontractbythecontractor.Inthecaseofa
goodsprocurement,performancesecuritymayberequireddependingonthemarketconditionsandcommercial
practicefortheparticularkindofgoods.Teseperformanceguaranteesareinadditiontotheunconditional
securityguaranteeforadvancepaymentsinsectionP.A.a.above.
Interest on Late Payments
P.A.a.oTecontractshallprovideforthepaymentofinterestatspecicrateswhenpaymentisdelayeddueto
thefaultoftheMCAEntityoritsagentsbeyondthetimeallowedinthecontractforpayment.
Alternative Bids
P.A.a.Tebiddingdocumentsshallclearlyindicatewhenbiddersareallowedtosubmitalternativebids,how
alternativebidsshouldbesubmitted,howbidpricesshouldbeoeredandthebasisonwhichalternativebids
shallbeevaluated.
Performance Security
P.A.a.aBiddingdocumentsforworksshallrequireaperformancesecurityinanamountsucienttoprotect
theMCAEntityincaseofbreachofcontractbythecontractor.Tissecurityshallbeprovidedinanappropriate
formandamount,asspeciedbytheMCAEntityinthebiddingdocument.Teamountofthesecuritymay
vary,dependingonthetypeofsecurityfurnishedandonthenatureandmagnitudeoftheworks.Aportionof
thissecurityshallextendsucientlybeyondthedateofcompletionoftheworkstocoverthedefectsliabilityor
maintenanceperioduptonalacceptancebytheMCAEntity.
P.A.a.Incontractsforthesupplyofgoods,theneedforperformancesecuritydependsonthemarketcondi-
tionsandcommercialpracticefortheparticularkindofgoods.Suppliersormanufacturersmayberequiredto
provideasecuritytoprotectagainstnonperformanceofthecontractandtocoverwarrantyobligations.Te
securityshallbereasonableinamount.Tebiddingdocumentsshallspecifythearrangementsforrequired
performancesecurities.
Liquidated Damages and Bonus Clauses
P.A.a.Provisionsforliquidateddamagesorsimilarprovisionsinanappropriateamountshallbeincluded
intheconditionsofcontractwhendelaysinthedeliveryofgoods,completionofworksorfailureofthegoods,
a Piogiam Piocuiement Cuidelines, Octobei a, aoo,
worksornon-consultantservicestomeetperformancerequirementswouldresultinextracostorlossofrev-
enueorlossofotherbenetstotheMCAEntity.WithpriorapprovalofMCC,provisionmayalsobemadefor
abonustobepaidtosuppliersorcontractorsforcompletionofworksordeliveryofgoodsaheadofthetimes
speciedinthecontractwhensuchearliercompletionordeliverywouldbeofbenettotheMCAEntity.
Force Majeure
P.A.a.Teconditionsofcontractshallstipulatethatfailureonthepartofthepartiestoperformtheirobliga-
tionsunderthecontractwillnotbeconsideredadefaultifsuchfailureistheresultofaneventofforcemajeure
asdenedintheconditionsofcontract.
Applicable Law and Settlement of Disputes
P.A.a.6Teconditionsofcontractshallincludeprovisionsdealingwiththeapplicablelawandtheforumfor
thesettlementofdisputes.SettlementofdisputesshalltakeplaceinthecountryoftheMCAEntitywiththe
possibilityforinternationalarbitrationinthecasewhereforeignentitiesarepartiestothecontractandinother
caseswherethepartiessoagree.Inthecaseofworkscontracts,supplyandinstallationcontracts,andturnkey
contracts,thedisputesettlementprovisionmightalsoincludemechanismssuchasdisputereviewboardsor
adjudicators,whicharedesignedtopermitaspeedierdisputesettlement.
C. Bid Opening, Evaluation, and Award of Contract
Time for Preparation of Bids
P.A.a.;Tetimeallowedforthepreparationandsubmissionofbidsshallbedeterminedwithdueconsider-
ationoftheparticularcircumstancesoftheProject,themagnitudeandcomplexityofthecontract,andthepe-
riodofadvancenoticeprovidedbytheGPN.Wherelargeworksorcomplexitemsofequipmentareinvolved,the
periodshallbelongenoughtoenableprospectivebidderstoconductinvestigationsbeforesubmittingtheirbids.
Insuchcases,theMCAEntityisencouragedtoconvenepre-bidconferencesandarrangesitevisits.Biddersshall
bepermittedtosubmitbidsbymailorbyhand.TeMCAEntitymayalsouseelectronicsystemspermittingbid-
derstosubmitbidsbyelectronicmeans,providedMCCissatisedwiththeadequacyofthesystem,including,
inter alia,thatthesystemissecure,maintainsthecondentialityandauthenticityofbidssubmittedandusesan
electronicsignaturesystemorequivalenttokeepbiddersboundtotheirbids.Inthiscase,biddersshallcontinue
tohavetheoptiontosubmittheirbidsinhardcopy.Tedeadlineandplaceforreceiptofbidsshallbespecied
intheinvitationtobid.
Bid Opening Procedures
P.A.a.8Tetimeforthebidopeningshallbethesameasforthedeadlineforreceiptofbidsorpromptly
thereafter,i.e.,toallowsucienttimetotakethebidstotheplaceannouncedforpublicbidopeningandshall
beannounced,togetherwiththeplaceforbidopening,intheinvitationtobid.TeMCAEntityshallopenall
bidsatthestipulatedtimeandplace.Bidsreceivedafterthetimestipulatedshallnotbeconsidered.Biddersor
Piogiam Piocuiement Cuidelines, Octobei a, aoo, aa
theirrepresentativesshallbeallowedtobepresent(inpersonoronline,whenelectronicbiddingisused)atthe
bidopening.TegeneralpublicmayattendatthediscretionoftheMCAEntity.Tenameofthebidderand
totalamountofeachbid,andofanyalternativebidsiftheyhavebeenrequestedorpermitted,shallbereadaloud
(andpostedonlinewhenelectronicbiddingisused)andrecordedwhenopened.Acopyofthisrecordshallbe
providedtobiddersinaccordancewiththeprovisionsofthebiddingdocuments.
Clarications or Alterations of Bids
P.A.a.,ExceptasotherwiseprovidedinParagraphsP.A.a.;6andP.A.a.;;ofSection.AoftheseGuidelines,
biddersshallnotberequestedorpermittedtoaltertheirbidsafterthedeadlineforreceiptofbids.TeMCAEn-
tityshallaskbiddersforclaricationneededtoevaluatetheirbidsbutshallnotaskorpermitbidderstochange
thesubstanceorpriceoftheirbidsafterthebidopening.Requestsforclaricationandthebiddersresponses
shallbemadeinwriting,inhardcopyandiorbyanelectronicsystemsatisfactorytoMCC.
Condentiality
P.A.a.6oAfterthepublicopeningofbids,informationrelatingtotheexamination,clarication,andevaluation
ofbidsandrecommendationsconcerningawardsshallnotbedisclosedtobiddersorotherpersonsnotocially
concernedwiththisprocessuntilthepublicationofcontractaward.
Examination of Bids
P.A.a.6TeMCAEntityshallascertainwhetherthebids(a)meettheeligibilityrequirementsspeciedin
ParagraphsP.A..;,P.A..8andP.A..,ofSection.AoftheseGuidelines,(b)havebeenproperlysigned,(c)
areaccompaniedbytherequiredsecuritiesorrequireddeclarationsignedasspeciedinParagraphP.A.a.of
Section.AoftheseGuidelines,(d)aresubstantiallyresponsivetothebiddingdocuments,and(e)areotherwise
generallyinorder.Ifabidisnotsubstantiallyresponsive,thatis,itcontainsmaterialdeviationsfromorreserva-
tionstotheterms,conditions,andspecicationsinthebiddingdocuments,itshallnotbeconsideredfurther.
Tebiddershallnotbepermittedtocorrectorwithdrawmaterialdeviationsorreservationsoncebidshavebeen
opened.
Evaluation and Comparison of Bids
P.A.a.6aTepurposeofbidevaluationistodeterminethepricetotheMCAEntityofeachbidinamanner
thatpermitsacomparisononthebasisoftheirevaluatedprice.SubjecttoParagraphP.A.a.;oofSection.Aof
theseGuidelines,thebidwiththelowestevaluatedpricebutnotnecessarilythelowestsubmittedpriceshallbe
selectedforaward.(DesigniBuildWorksProcurementsusingQCBSprocurementprocessshallbeevaluatedin
compliancewithParagraphB.a.,throughB.a..)
P.A.a.6Tebidpricereadaloudatthebidopeningshallbeadjustedtocorrectanyarithmeticalerrors.Also,
forthepurposeofevaluation,adjustmentsshallbemadeforanyquantiablenonmaterialdeviationsorreserva-
tions.
P.A.a.6TeevaluationandcomparisonofbidsshallbeonCIPpricesforthesupplyofimportedgoods,the
MCAEntitymayaskforpricesonaCIFbasis(andbidscomparedonthatsamebasis)onlywhenthegoodsare
carriedbyseaandthegoodsarenotcontainerized.CIFshallnotbeusedforanythingotherthanseatransport.
Inthecaseofmanufacturedgoods,itisunlikelythatthechoiceofCIFwillbeappropriate,becausethesegoods
areusuallycontainerized.CIPcanbeusedforanymodeoftransport,includingseaandmultimodaltransport.
EXWprices,pluscostofinlandtransportationandinsurancetotheplaceofdestination,forgoodsmanufac-
turedwithinthecountryoftheMCAEntity,togetherwithpricesforanyrequiredinstallation,training,com-
missioning,andothersimilarservices.Teevaluationofbidsshallnottakeintoaccount:(a)customsdutiesand
othertaxesleviedonimportedgoodsquotedCIP(whichareexcludedofcustomduties),or(b)salesandsimilar
taxesleviedinconnectionwiththesaleordeliveryofthegoods.
P.A.a.6Biddingdocumentsshallalsospecifytherelevantfactorsinadditiontopricetobeconsideredinbid
evaluationandthemannerinwhichtheywillbeappliedforthepurposeofdeterminingthelowestevaluatedbid.
Forgoodsandequipment,otherfactorsmaybetakenintoconsiderationincluding,amongothers,deliverytime,
operatingcosts,eciencyandcompatibilityoftheequipment,availabilityofserviceandspareparts,andrelated
training,safety,andenvironmentalbenets.Tetechnicalresponsivenessfactorsotherthanpricetobeusedfor
determiningthelowestevaluatedbidshallbegivenarelativeweightintheevaluationprovisionsinthebidding
documents.
P.A.a.66Bidevaluationforworksshallbebasedsolelyonbidprice.Anyevaluationprocedureunderwhich
bidsaboveorbelowapredeterminedprojectcostestimateareautomaticallydisqualiedisnotacceptable.If
timeisacriticalfactor,thevalueofearlycompletiontotheMCAEntitymaybetakenintoaccountaccordingto
criteriapresentedinthebiddingdocuments,onlyiftheconditionsofcontractprovideforcommensuratepenal-
tiesfornoncomplianceandMCChasgrantedpriorapproval.
P.A.a.6;TeMCAEntityshallprepareadetailedreportontheevaluationandcomparisonofbidssettingforth
thespecicreasonsonwhichtherecommendationisbasedfortheawardofthecontract.
Domestic Preferences
P.A.a.68Applicationofdomesticpreferencesshallnotbepermitted.
Extension of Validity of Bids
P.A.a.6,TeMCAEntityshallcompleteevaluationofbidsandawardofcontractwithintheinitialperiodof
bidvaliditysothatextensionsarenotnecessary.Anextensionofbidvalidity,ifjustiedbyexceptionalcircum-
stances,shallberequestedinwritingfromallbiddersbeforetheexpirationdate.Teextensionshallbeforthe
minimumperiodrequiredtocompletetheevaluation,obtainthenecessaryapprovals,andawardthecontract.
Wheneveranextensionofbidvalidityperiodisrequested,biddersshallnotberequestedorbepermittedto
changethequoted(base)priceorotherconditionsoftheirbid,unlessspeciedinthebiddingdocuments.Bid-
Piogiam Piocuiement Cuidelines, Octobei a, aoo, a(
dersshallhavetherighttorefusetograntsuchanextension.Ifthebiddingdocumentsrequireabidsecurity,
biddersmayexercisetheirrighttorefusetograntsuchanextensionwithoutforfeitingtheirbidsecurity,but
thosewhoarewillingtoextendthevalidityoftheirbidshallberequiredtoprovideasuitableextensionofbid
security.
Post-qualication of Bidders
P.A.a.;oIfbiddershavenotbeenprequalied,theMCAEntityshalldeterminewhetherthebidderwhosebid
hasbeendeterminedtooerthelowestevaluatedpriceandsubstantiallyresponsivebidhasthecapabilityand
resourcestoeectivelycarryoutthecontractasoeredinthebid.Tecriteriatobemetshallbesetoutinthe
biddingdocuments,andifthebidderdoesnotmeetthem,thebidshallberejected.Insuchanevent,theMCA
Entityshallmakeasimilardeterminationandalsoconrmeligibilityofthenext-lowestevaluatedbidder.
P.A.a.;Ifbiddershavebeenprequalied,theMCAEntityshallrequestanupdateoftheinformationprovided
atthetimeofpre-qualication,andshallverifyifthelowestevaluatedbidderstillmeetsthepre-qualication
criteria.
Award of Contract
P.A.a.;aTeMCAEntityshallawardthecontract,withintheperiodofthevalidityofbids,tothebidderwho
meetstheappropriatestandardsofcapabilityandresourcesandwhosebidhasbeendetermined(i)tobesub-
stantiallyresponsivetothebiddingdocumentsand(ii)tooerthelowestevaluatedprice.Abiddershallnotbe
required,asaconditionofaward,toundertakeresponsibilitiesforworknotstipulatedinthebiddingdocuments
orotherwisetomodifythebidasoriginallysubmitted.
Publication of the Award of Contract
P.A.a.;Aftertheawardofcontract,theMCAEntityshallposttheresults,identifyingtheprocurement,the
nameofthewinningbidderandtheprice,duration,andsummaryscopeofthecontractatthesamesitethat
hostedtheSPN,andattheMCAEntityswebsite.Tesameinformationshallbesenttoallbidderswhohave
submittedbids.TepostingattheSPNwebsitesshallbedonemonthlyandattheMCAEntityswebsite(orsuch
otherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC)atleastweekly.Teposting
shallbeinaformatofasummarizedtablecoveringthepreviousperiod.AllsuchpostingsshallbeinEnglish.
AtthediscretionoftheMCAEntity,postingontheMCAEntityswebsite(orsuchotherappropriatewebsite
designatedbytheMCAEntityandapprovedbyMCC)mayalsobeinthelocallanguageofthecountryofthe
MCAEntity.
Rejection of All Bids
P.A.a.;BiddingdocumentsusuallyprovidethattheMCAEntitymayrejectallbids.Rejectionofallbidsis
justiedwhenthereislackofeectivecompetition,bidsarenotsubstantiallyresponsiveorwhenbidprices
areunreasonableoraresubstantiallyhigherthantheMCAEntitysbudgetfortheProject.Lackofcompetition
shallnotbedeterminedsolelyonthebasisofthenumberofbidders.Evenwhenonlyonebidissubmitted,the
biddingprocessmaybeconsideredvalidifthebidwassatisfactorilyadvertisedandpricesarereasonableincom-
parisontomarketvalues.TeMCAEntitymay,afterapprovalbyMCC,rejectallbids.Ifallbidsarerejected,the
MCAEntityshallreviewthecausesjustifyingtherejectionandconsidermakingrevisionstotheconditionsof
contract,designandspecications,scopeofthecontract,oracombinationofthese,beforeinvitingnewbids.
P.A.a.;Iftherejectionofallbidsisduetolackofcompetition,wideradvertisingshallbeconsidered.Ifthere-
jectionisduetomostorallofthebidsbeingnon-responsive,newbidsmaybeinvitedfromtheinitiallyprequali-
edrms,orwithapprovalofMCCfromonlythosethatsubmittedbidsintherstinstance.
P.A.a.;6Allbidsshallnotberejectedandnewbidsinvitedonthesamebiddingandcontractdocumentssolely
forthepurposeofobtaininglowerprices.IfthelowestevaluatedresponsivebidexceedstheMCAEntitypre-bid
costestimatesbyasubstantialmargin,theMCAEntityshallinvestigatecausesfortheexcessivecostandcon-
siderrequestingnewbidsasdescribedinthepreviousparagraphs.Alternatively,withpriorapprovalofMCC,
theMCAEntitymaynegotiate,withthelowestevaluatedbiddertotrytoobtainasatisfactorycontractthrough
areductioninthescopeandiorareallocationofriskandresponsibilitywhichcanbereectedinareduction
ofthecontractprice.However,substantialreductioninthescopeormodicationtothecontractdocuments
generallywillrequirerebidding.
P.A.a.;;TepriorapprovalofMCCshallbeobtainedbeforerejectingallbids,solicitingnewbids,orentering
intonegotiationswiththelowestevaluatedbidder.Withintwoweeksoftherejectionofallbids,theMCAEntity
shallpostatthesamesitethathostedtheSPN,andtheMCAEntityswebsite(orsuchotherappropriatewebsite
designatedbytheMCAEntityandapprovedbyMCC)noticationofthecancellationoftheprocurement.Te
noticationshallidentifytheprocurementandstatebrieythereasonforcancellingtheprocurement.Tesame
informationshallbesenttoallbidderswhohavesubmittedbids.AllsuchpostingsshallbeinEnglish.Atthedis-
cretionoftheMCAEntity,postingontheMCAEntityswebsite,orsuchotherappropriatewebsitedesignated
bytheMCAEntityandapprovedbyMCC,mayalsobeinthelocallanguageofthecountryoftheMCAEntity.
Debrieng
P.A.a.;8Tebiddingdocumentsshallspecifythatanybidderwhowishestoascertainthegrounds,onwhichits
bidwasnotselected,mayrequestanexplanationfromtheMCAEntity.TeMCAEntityshallpromptlyprovide
anexplanationofwhysuchbidwasnotselected,eitherinwritingandiorinadebriengmeeting,attheoptionof
theMCAEntity.Terequestingbiddershallbearallthecostsofattendingsuchadebrieng.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, a6
D. Modied Competitive Bidding
Procurement of Commodities
P.A.a.;,Marketpricesofcommodities,suchasgrain,animalfeed,cookingoil,fuel,fertilizer,andmetals,
uctuatedependinguponthedemandandsupplyatanyparticulartime.Manyarequotedinestablishedcom-
moditymarkets.Procurementofteninvolvesmultipleawardsforpartialquantitiestoassuresecurityofsupply
andmultiplepurchasesoveraperiodoftimetotakeadvantageoffavorablemarketconditionsandtokeep
inventorieslow.Alistofprequaliedbiddersmaybedrawnuptowhomperiodicinvitationsareissued.Bidders
maybeinvitedtoquotepriceslinkedtothemarketpriceatthetimeoforpriortotheshipments.Bidvalidities
shallbeasshortaspossible.BidpricesmustbedenominatedandpaidineitherUnitedStatesdollarsorthelocal
currencyofthecountryoftheMCAEntity.Tecurrencyshallbespeciedinthebiddingdocument.Bidding
documentsmaypermitfaxedbidsorbidssubmittedbyelectronicmeans.Insuchcaseseithernobidsecurityis
requiredorstandingbidsecuritieswillhavebeensubmittedbyprequaliedbiddersthatarevalidforaspecied
periodoftime.Standardcontractconditionsandformsconsistentwithmarketpracticesshallbeused.
III. Other Methods of Procurement
General
P.A..TisSectiondescribes,indescendingorderofpreference,themethodsofprocurementthatcanbeused
whereCompetitiveBiddingwouldnotbethemosteconomicandecientmethodofprocurement,andwhere
othermethodsaredeemedmoreappropriate.Contractsshallnotbedividedintosmallerunitsinordertomake
themlessattractiveforCompetitiveBiddingprocedures,anyproposaltodivideacontractintosmallerpackages
shallrequirethepriorapprovalofMCC.
Limited Bidding
P.A..aLimitedBidding(LB)isessentiallyCompetitiveBiddingbydirectinvitationwithoutopenadvertise-
ment.Itmaybeanappropriatemethodofprocurementwhere(a)thereareonlyalimitednumberofsuppliers,
or(b)otherexceptionalreasonsmayjustifydeparturefromfullCompetitiveBiddingprocedures.UnderLB,the
MCAEntityshallseekbidsfromalistofpotentialsuppliersorcontractorsbroadenoughtoassurecompetitive
prices,suchlisttoincludeallsuppliersorcontractorswhenthereareonlyalimitednumber.Inallrespectsother
thanadvertisement,CompetitiveBiddingproceduresshallapply,includingthepublicationofthecontractaward
asindicatedinParagraph,P.Aa.;ofSection.AoftheseGuidelines.
National Competitive Bidding
P.A..NationalCompetitiveBiddingisnotanauthorizedmethodofprocurementundertheseGuidelines.

a; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Shopping
P.A..Shoppingisaprocurementmethodbasedoncomparingpricequotationsobtainedfromseveralsup-
pliers(inthecaseofgoods)orfromseveralcontractors(inthecaseofcivilworks),withaminimumofthree(),
toassurecompetitiveprices,andisanappropriatemethodforprocuringreadilyavailableotheshelfgoodsor
standardspecicationcommoditiesofsmallvalue,orsimplecivilworksofsmallvalue.
Shoppingmaybeusedwhenacontracthasanestimatedvalueofaoo,oooUSDorlessoroo,oooUSDorless
forvehicles.TeMCAEntitymayrequestawaivertouseshoppingforhighervaluecontractsonacase-by-case
basis.
Requestsforquotationsshallindicatethedescriptionandquantityofthegoodsorspecicationsofworksor
non-consultantservices,aswellasdesireddelivery(orcompletion)timeandplace.Quotationsmaybesubmit-
tedbyletter,facsimileorelectronicmeans.Teevaluationofquotationsshallfollowthesameprinciplesas
CompetitiveBidding.Tetermsoftheacceptedoershallbeincorporatedinapurchaseorderorbriefcontract.
Direct Contracting
P.A..Directcontractingiscontractingwithoutcompetition(solesource)andmaybeanappropriatemethod
underthefollowingcircumstances:
P.A..(a)Anexistingcontractforgoods,worksornon-consultantservices,awardedinaccordancewith
proceduresacceptabletoMCC,maybeextended,withinreasonablelimits,foradditionalgoods,worksornon-
consultantservicesofasimilarnature.MCCshallbesatisedinsuchcasesthatnoadvantagecouldbeobtained
byfurthercompetitionandthatthepricesontheextendedcontractarereasonable.Provisionsforsuchanexten-
sion,ifconsideredlikelyinadvance,shallbeincludedintheoriginalcontract.
P.A..(b)Standardizationofequipmentorspareparts,tobecompatiblewithexistingequipment,mayjustify
additionalpurchasesfromtheoriginalsupplier.Forsuchpurchasestobejustied,theoriginalequipmentshall
besuitable,thenumberofnewitemsshallgenerallybelessthantheexistingnumber,thepriceshallbereason-
able,andtheadvantagesofanothermakeorsourceofequipmentshallhavebeenconsideredandrejectedon
groundsacceptabletoMCC.
P.A..(c)Terequiredequipmentisproprietaryandobtainableonlyfromonesource.
P.A..(d)Tecontractorresponsibleforaprocessdesignrequiresthepurchaseofcriticalitemsfromapar-
ticularsupplierasaconditionofaperformanceguarantee.
P.A..(e)Inexceptionalcases,suchasinresponsetonaturaldisasters.
P.A..(f )Tevalueofthecontractisundera,oooUSD.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, a8
P.A..6Forallprocurementsvaluedabove,oooUSD,theMCAEntity,afterthecontractsignature,shallpost
attheMCAEntityswebsiteorsuchappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC,
atdgMarketandatUNDB Onlinethenameofthecontractor,price,duration,andsummaryscopeofthedirect
contract.Tispublicationmaybedonequarterlyandintheformatofasummarizedtablecoveringtheprevious
period.
Force Account
P.A..;ForceAccount,thatis,constructionbytheuseofthegovernmentsownpersonnelandequipment,may
betheonlypracticalmethodforconstructingsomekindsofworks.Agovernment-ownedconstructionunitthat
isnotlegally,operationallyandnanciallyautonomousshallbeconsideredaforceaccountunit.Forceaccount
isotherwiseknownasdirectlabor,departmentalforces,ordirectwork.TeuseofForceAccountmaybe
justiedwhere:
P.A..;(a)quantitiesofworkinvolvedcannotbedenedinadvance,
P.A..;(b)worksaresmallandscatteredorinremotelocationsforwhichqualiedconstructionrmsare
unlikelytobidatreasonableprices,
P.A..;(c)workisrequiredtobecarriedoutwithoutdisruptingongoingoperations,
P.A..;(d)risksofunavoidableworkinterruptionarebetterbornebytheMCAEntitythanbyacontractor,or
P.A..;(e)thereareemergenciesneedingpromptattention.
Procurement Agents and Fiscal Agents
P.A..8WheretheMCAEntitylacksthenecessaryorganization,resources,andexperience,theMCAEntity
maywish(orberequiredbyMCC)toemploy,asitsagents,rmsspecializinginhandlingprocurementandi
ornancialmanagementservices(Procurement AgentorFiscal Agent,respectively).Suchagentsshallbe
selectedfollowingtheappropriateproceduresasapprovedbyMCCandsetoutintheRFPrequestingsuchagent
services.TeProcurementAgentshallfollowalltheprocurementproceduresprovidedforintheCompactand
anySupplementalAgreements,includingtheseGuidelines,conductprocurementinconformancewithaPro-
curementPlanapprovedbyMCC,useappropriatelytheStandardBiddingDocumentsorotherformsprovided
byMCC,followreviewprocedures,andproperlydocumenttheprocurementactivity.Managementcontractors
maybeemployedinasimilarmannerforafeetocontractformiscellaneousworksinvolvingreconstruction,
repairs,rehabilitation,andnewconstructioninemergencysituations,orwherelargenumbersofsmallcontracts
areinvolved.
a, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Inspection Agents
P.A..,PreshipmentinspectionandcerticationofimportsisoneofthesafeguardsfortheMCAEntity,par-
ticularlywherethecountryhasalargeimportprogram.Teinspectionandcerticationusuallycoversquality,
quantity,andreasonablenessofprice.ImportsprocuredthroughCompetitiveBiddingproceduresshallnot
besubjecttopriceverication,butonlyvericationforqualityandquantity.However,importsnotprocured
throughCompetitiveBiddingmayadditionallybesubjectedtopriceverication.Teinspectionagentsordi-
narilyarepaidforonafeebasisleviedonthevalueofthegoods.Costsforcerticationofimportsshallnotbe
consideredintheevaluationofbidsunderCompetitiveBiddingandthecostofthiscerticationshallbepaid
separatelybytheMCAEntity.
Procurement under BOO/BOT/BOOT, Concessions and Similar Private Sector Arrangements
P.A..oWhereMCCisparticipatinginfundingthecostofaProjectprocuredunderaBuild,Own,Operate
(BOO)iBuild,Operate,Transfer(BOT)iBuild,Own,Operate,Transfer(BOOT),concessionsorsimilartypesof
privatesectorarrangements,eitherofthefollowingprocurementproceduresshallbeused,asprovidedforinthe
CompactincludinganySupplementalAgreementsandfurtherelaboratedintheProcurementPlanapprovedby
MCC:
P.A..o(a)TeconcessionaireorentrepreneurundertheBOOiBOTiBOOTorsimilartypeofcontract,for
projectssuchastollroads,tunnels,harbors,bridges,powerstations,wastedisposalplants,andwaterdistribu-
tionsystems.shallbeselectedunderCompetitiveBiddingproceduresacceptabletoMCC,whichmayinclude
severalstagesinordertoarriveattheoptimalcombinationofevaluationcriteria,suchasthecostandmagnitude
ofthenancingoered,theperformancespecicationsofthefacilitiesoered,thecostchargedtotheuseror
purchaser,otherincomegeneratedfortheMCAEntityorpurchaserbythefacility,andtheperiodofthefacilitys
depreciation.
Or,
P.A..o(b)IfthesaidconcessionaireorentrepreneurhasnotbeenselectedinthemannersetforthinSubpara-
graph(a)above,thegoods,works,ornon-consultantservicesrequiredforthefacilityandtobefundedbyMCC
shallbeprocuredinaccordancewithCompetitiveBiddingproceduresdenedinSub-Section.A.II.
Performance Based Procurement / Output Based Procurement
P.A..PerformanceBasedProcurement,alsocalledOutputBasedProcurement,referstocompetitive
procurementprocessesresultinginacontractualrelationshipwherepaymentsaremadeformeasuredoutputs
insteadofthetraditionalwaywhereinputsaremeasured.Tetechnicalspecicationsdenethedesiredresult
andwhichoutputswillbemeasuredincludinghowtheywillbemeasured.Toseoutputsaimatsatisfying
afunctionalneedbothintermsofquality,quantityandreliability.Paymentismadeinaccordancewiththe
quantityofoutputsdelivered,subjecttotheirdeliveryatthelevelofqualityrequired.Reductionsfrompayments
(orretentions)maybemadeforlower-qualitylevelsofoutputsand,incertaincases,premiumsmaybepaid
forhigherqualitylevelsofoutputs.Tebiddingdocumentsdonotnormallyprescribetheinputs,norawork
methodforthecontractor.Tecontractorisfreetoproposethemostappropriatesolution,basedonmature
andwellprovenexperienceandshalldemonstratethatthelevelofqualityspeciedinthebiddingdocuments
willbeachieved.TeuseofPerformanceBasedProcurementinMCCfundedprojectsshouldbetheresultofa
satisfactorytechnicalanalysisofthedierentoptionsavailableandshallbesubjecttopriorapprovalbyMCCfor
incorporationintotheProcurementPlan.
P.A..aPerformanceBasedProcurementcaninvolve:(a)theprovisionofservicestobepaidonthebasisof
outputs,(b)design,supply,construction(orrehabilitation)andcommissioningofafacilitytobeoperatedbythe
MCAEntity,or(c)design,supply,construction(orrehabilitation)ofafacilityandprovisionofservicesforits
operationandmaintenanceforadenedperiodofyearsafteritscommissioning.Examplesofsuchtypeofpro-
curementare:(i)forthecaseofprocurementofservices:provisionofmedicalservices,i.e.paymentsforspecic
services,likeocevisits,ordenedlaboratorytests,etc.,(ii)forthecaseofprocurementofafacility:design,
procurement,construction,andcommissioningofathermalpowerplanttobeoperatedbyagrantee,(iii)forthe
caseofprocurementofafacilityandservices:design,procurement,construction(orrehabilitation)ofaroadand
operationandmaintenanceoftheroadforyearsafterconstruction.Forthecaseswheredesign,supplyandior
constructionarerequired,pre-qualicationisnormallyrequiredandtheuseofTwo-StageBiddingasindicated
inParagraphP.A.a.6ofSection.AoftheseGuidelineswillusuallyapply.
Section .B. Program Procurement Guidelines: Procurement of Consultants and
Consultant Services
I. Introduction
Purpose
P.B..TisSection.Bsetsforththeprinciples,rulesandproceduresgenerallyapplicabletotheprocurement
ofconsultantsandconsultantservices.
P.B..aForthepurposeoftheseGuidelines,thetermconsultantsincludesawidevarietyofentities,including
consultingrms,engineeringrms,constructionmanagers,projectandprogrammanagers,managementrms,
ProcurementAgents,FiscalAgents,inspectionagents,auditors,investmentandmerchantbanks,universities,
researchinstitutions,nongovernmentalorganizations,andindividuals.Consultantsassistinawiderangeofac-
tivitiessuchaspolicyadvice,institutionalreforms,management,engineeringservices,constructionsupervision,
nancialservices,procurementservices,andsocialandenvironmentalstudies.
General Considerations
P.B..TeMCAEntityisresponsibleforimplementingtheProjects,andthereforeforselectingtheconsul-
tants,andawardingandsubsequentlyadministeringthecontracts.Whileinpracticethespecicprocurement
rulesandprocedurestobefollowedintheimplementationofaProjectdependonthecircumstancesofthe
particularcase,thefollowingfourMCCProgramProcurementPrinciplesshallgenerallyguidetheapplicationof
theseGuidelines:
P.B..(a)Open,fairandcompetitiveproceduresusedinatransparentmannertosolicit,awardandadminister
contractstoprocureconsultantservices,
P.B..(b)Solicitationsforconsultantservicesshallbebaseduponaclearandaccuratedescriptionofthecon-
sultantservicestobeacquired,
P.B..(c)Contractsshallbeawardedonlytoqualiedandcapableconsultantsthathavethecapabilityand
willingnesstoperformthecontractsinaccordancewiththetermsandconditionsoftheapplicablecontractsand
onacost-eectiveandtimelybasis,and
P.B..(d)Nomorethanacommerciallyreasonableprice(asdetermined,forexample,byacomparisonofprice
quotationsandmarketprices)shallbepaidtoprocuretheconsultantservices.
P.B..TeMCAEntityshallensurethatalltheprocurementsforconsultantservicesundertakeninfurther-
anceoftheCompactandfundedinwholeorinpart,directlyorindirectly,byMCCfundingshallcomplywith
theseMCCProgramProcurementPrinciples.
P.B..MCCconsidersthat,inthemajorityofcases,theseconsiderationscanbestbeaddressedthroughcom-
petitionamongqualiedrmsinwhichtheselectionisbasedonthequalityoftheproposalandthepriceofthe
servicestobeprovided.Sub-Sections.B.IIandIIIoftheseGuidelinesdescribethedierentmethodsofselec-
tionofconsultantsandthecircumstancesinwhichtheyareappropriate.SinceQualityandCostBasedSelection
(QCBS)isthemostcommonlyrecommendedmethod,Sub-Section.B.IIoftheseGuidelinesdescribesin
detailtheproceduresforQCBS.However,QCBSisnotthemostappropriatemethodofselectionforallcases,
therefore,Sub-Section.B.IIIdescribesothermethodsofselectionandthecircumstancesinwhichtheyaremore
appropriate.
Applicability of Section .B of these Guidelines
P.B..6TeconsultantservicestowhichSection.BoftheseGuidelinesapplyareofanintellectualandadvisory
nature.TissectionoftheseGuidelinesdoesnotapplytoothertypesofservicesinwhichthephysicalaspects
oftheactivitypredominate(forexample,operationandmaintenanceoffacilitiesorplants,surveys,exploratory
drilling,aerialphotography,satelliteimagery,andservicescontractedonthebasisofperformanceofmeasurable
physicaloutput).
Conict of Interest
P.B..;Consultantsshallprovideprofessional,objective,andimpartialadviceandatalltimesholdtheinterests
oftheMCAEntityparamount,withoutanyconsiderationforfuturework,andinprovidingadviceconsultants
shallavoidconictswithotherassignmentsandtheirowncorporateinterests.Consultantsshallnotbehiredfor
anyassignmentthatwouldbeinconictwiththeirpriororcurrentobligationstootherclients,orthatmayplace
theminapositionofbeingunabletocarryouttheassignmentinthebestinterestoftheMCAEntity.Without
limitingthegeneralityoftheforgoing,consultantsshallnotbehiredunderthecircumstancessetforthbelow:
P.B..;(a)Conictbetweenconsultantactivitiesandprocurementofgoods,worksornon-consultantservices:
ArmthathasbeenengagedbytheMCAEntitytoprovidegoods,works,ornon-consultantservicesfora
Project,andeachofitsaliates,shallbedisqualiedfromprovidingconsultantservicesrelatedtothosegoods,
worksornon-consultantservices.Conversely,armhiredtoprovideconsultantservicesforthepreparationor
implementationofaProject,andeachofitsaliates,shallbedisqualiedfromsubsequentlyprovidinggoods,
worksornon-consultantservicesresultingfromordirectlyrelatedtothermsconsultantservicesforsuch
preparationorimplementation.
P.B..;(b)Conictamongconsultantassignments:Neitherconsultants(includingtheirpersonnelandsub-
consultants)noranyoftheiraliatesshallbehiredforanyassignmentthat,byitsnature,maybeinconictwith
anotherassignmentoftheconsultants.Asanexample,consultantshiredbyMCC,theMCAEntityoranother
donortoprepareengineeringdesignforaninfrastructureProjectgenerallyshouldnotbeengagedtopreparean
independentenvironmentalassessmentforthesameProject.Similarly,consultantshiredtoprepareaTermsof
Reference(TOR)foranassignmentshallnotbehiredforthatassignment.
P.B..;(c)RelationshipswiththeMCAEntitysta:consultants(includingtheirpersonnel,sub-consultantsand
aliates)thateitherarethemselvesorhaveabusinessorfamilyrelationshipwith(i)amemberoftheMCAEn-
tityboardofdirectorsorsta,(ii)theProjectimplementingentityssta,or(iii)theProcurementAgentorFiscal
AgenthiredbytheMCAEntityinconnectionwiththeCompact,anyofwhomisdirectlyorindirectlyinvolved
inanypartof:(A)thepreparationofthebiddingdocumentsrelatedtotheprocurement,includingthecontract,
(B)theselectionprocessforsuchprocurement,or(C)thesupervisionofanycontractawardedintheprocure-
ment,maynotbeawardedthecontract,unlesstheconictstemmingfromthisrelationshiphasbeenresolvedin
amanneracceptabletoMCCthroughouttheprocessofpreparingthedocumentsrelatedtotheprocurement,
theselectionprocessandtheawardandexecutionofthecontract.
P.B..;(d)Teconsultantshallnotreceiveanyremunerationinconnectionwiththeassignmentexceptaspro-
videdinthecontract.Teconsultantanditsaliatesshallnotengageinconsultantorotheractivitiesthatcon-
ictwiththeinterestoftheMCAEntityunderthecontract.Tecontractshallincludeprovisionslimitingfuture
engagementoftheconsultantorotherservicesresultingfromordirectlyrelatedtothermsconsultantservices
inaccordancewiththerequirementsofthisParagraphP.B..;andParagraphP.B..8oftheseGuidelines.
Unfair Competitive Advantage
P.B..8Consultants(andsub-consultants)ortheiraliatescompetingforaspecicassignmentshallnotderive
anunfaircompetitiveadvantagefromhavingprovidedconsultantservicesrelatedtotheassignmentinquestion.
Tothatend,theMCAEntityshallmakeavailabletotheconsultants,togetherwiththeRequestforProposal
(RFP),allinformationthatwouldgiveaconsultantanunfaircompetitiveadvantage.IftheMCAEntity,incon-
sultationwithMCC,determinesthatitisinappropriateorimpracticaltoreleaseinformationsucienttocurea
potentialunfairadvantage,theconsultantwiththepotentiallyunfairadvantagemaybedisqualiedforpurposes
oftheparticularprocurement.
Eligibility
P.B..,Tofostercompetition,MCCpermitsrmsandindividualstooerconsultantservicesforMCC-funded
Projects,exceptrmsandindividualsfromanycountrysubjecttosanctionorrestrictionbylaworpolicyofthe
UnitedStates.Anyconditionsforparticipationshallbelimitedtothosethatareessentialtoensurethermsor
individualscapabilitytofulllthecontractinquestion.
P.B..,(a)Consultantsmaybeexcludedif:(i)asamatteroflaworocialregulation,thecountryoftheMCA
Entityprohibitscommercialrelationswiththeconsultantscountry,providedthatMCCissatisedthatsuch
exclusiondoesnotprecludeeectivecompetitionfortheconsultantservicesrequired,or(ii)byanactof
compliancewithadecisionoftheUnitedNationsSecurityCounciltakenunderChapterVIIoftheCharterof
theUnitedNations,thecountryoftheMCAEntityprohibitsanypaymentstoaparticularrmorpersonorfor
particulargoods.
P.B..,(b)Government-ownedenterprises,otherthanforceaccountunits,inthecountryoftheMCAEntity
mayparticipateonlyiftheycanestablishthatthey(i)arelegallyandnanciallyautonomous,(ii)operateunder
commerciallaw,and(iii)arenotdependentagenciesofthecountryoftheMCAEntity.
P.B..,(c)Asanexceptionto(b),government-owneduniversitiesorresearchcentersmayparticipate.
P.B..,(d)Governmentocialsandcivilservantsmayonlybehiredunderconsultantcontracts,eitherasindi-
vidualsorasmembersofateamofaconsultantrm,ifthey(i)areonleaveofabsencewithoutpay,(ii)arenot
beinghiredbytheagencytheywereworkingforimmediatelybeforegoingonleave,and(iii)theiremployment
wouldnotcreateaconictofinterest(seeParagraphP.B..,ofthisSection.B).
P.B..,(e)ArmdeclaredineligibleinaccordancewithParto,EligibilityVericationProcedures,shallbein-
eligibletobeawardedanMCC-fundedcontract.Tiswouldalsoremovefromeligibilityanyprocurementfrom
acountryorfromarmthatisorganizedinorhasitsprincipalplaceofbusinessorasignicantportionofits
operationsinanycountrythatissubjecttosanctionorrestrictionbylaworpolicyoftheUnitedStates.
Advance Contracting and Retroactive Financing
P.B..oIncertaincircumstances,suchastoaccelerateProjectimplementation,theMCAEntitymay,withthe
approvalofMCC,wishtoproceedwiththeselectionofconsultantsbeforetheobligationofCompactfundsthat
willnancesuchprocurement.Tisprocessisreferredtoasadvancecontracting.Insuchcases,theselection
procedures,includingadvertisement,shallbeinaccordancewiththeseGuidelines,andMCCshallreviewthe
processusedbytheMCAEntity.TeMCAEntityundertakessuchadvancecontractingatitsownrisk,andany
concurrencebyMCCwiththeprocedures,documentation,orproposalforawarddoesnotcommitMCCto
fundthecontractinquestion.Ifthecontractissigned,reimbursementbyMCCofanypaymentsmadebythe
MCAEntityunderthecontractpriortoobligationoftherelatedCompactfundsisreferredtoasretroactive
nancing.UndernocircumstanceswillMCCreimbursetheMCAEntityforanycontractcostsifthecontractis
signedpriortoobligationoffundsbyMCCandanyrequiredMCCapproval.
Associations between Consultants
P.B..Consultantsmayassociatewitheachotherintheformofajointventureorofasub-consultancyagree-
menttocomplementtheirrespectiveareasofexpertise,strengthenthetechnicalresponsivenessoftheirpropos-
alsandmakeavailablebiggerpoolsofexperts,providebetterapproachesandmeth odologies,and,insomecases,
oerlowerprices.Suchanassociationmaybeforthelongterm(independentofanyparticularassignment)or
foraspecicassignment.IftheMCAEntityemploysanassociationintheformofajointventure,theassocia-
tionshouldappointoneofthermstorepresenttheassociation,andallmembersofthejointventureshallsign
thecontractandshallbejointlyandseverallyliablefortheentireassignment.Short-listedrmsmayformajoint
ventureorsub-consultancyonlywiththeapprovaloftheMCAEntity.TeMCAEntityshallnotrequireconsul-
tantstoformassociationswithanyspecicrmorgroupofrmswithoutthepriorapprovalofMCC.
MCC Review, Assistance, and Monitoring
P.B..aMCCreviewsthehiringofconsultantsbytheMCAEntitytosatisfyitselfthattheselectionprocessis
carriedoutinaccordancewiththeprovisionsoftheseGuidelines.TethresholdsforMCCreviewaredescribed
inAttachmentoftheseGuidelines.
P.B..MCCdoesnotfurnishashortlistoralonglistofrmsorindividualstotheMCAEntity.However,
iftheMCAEntityundertakesashortlistingprocedurebeforeinvitingproposals,therecordoftheshortlisting
proceduretogetherwiththenalshortlistshallbesubmittedtoMCCforapprovalbe foretheMCAEntityis-
suestheRFPiftheestimatedvalueoftheanticipatedcontractexceedsthethresholdsinAttachmentofthese
Guidelines.
P.B..TeMCAEntityisresponsibleforsupervisingtheperformanceoftheconsultantsandensuringthat
theycarryouttheassignmentsinaccordancewiththecontract.Withoutassumingtheresponsibilitiesofthe
MCAEntityortheconsultants,MCCshallmonitortheworkasnecessarytosatisfyitselfthatitisbeingcar-
riedoutaccordingtoappropriatestandardsandisbasedonacceptabledata.Attimesitmaybeappropriatefor
MCCtoreviewandapprovedeliverablesfromconsultants(e.g.,thosethatarecriticaltotheimplementation
oftheprogramiProjectorthosethathavebeenexpresslycalledforinconditionsprecedent,setforthinany
SupplementalAgreementorotherdocumentsassociatedwiththeCompact.Asappropriate,MCCmaytakepart
indiscussionsbetweentheMCAEntityandtheconsultantsand,ifnecessary,mayhelptheMCAEntityinad-
dressingissuesrelatedtotheassignment.IfasignicantportionofProjectpreparationworkisbeingcarriedout
intheconsultantshomeoces,MCCstamay,withapprovaloftheMCAEntity,visittheseocestoreview
theconsultantswork.
Misprocurement
P.B..MCCdoesnotfundexpendituresforconsultantservicesiftheconsultantsorconsultantservices
selectedhavenotbeencontractedinaccordancewiththeagreedprovisionsasdetailedintheCompactandany
SupplementalAgreements,theseGuidelinesandtheapprovedProcurementPlans.MCCwilldeclaremispro-
curementandmaycancelthatportionoftheCompactallocatedtotheservicesthathavebeenmisprocuredif
correctivemeasuressatisfactorytoMCCarenottaken.MCCmay,inaddition,exerciseotherremediesprovided
forundertheCompact.EvenoncethecontractisawardedafterobtaininganapprovalfromMCC,MCCmay
stilldeclaremisprocurementifitconcludesthattheapprovalwasissuedonthebasisofincomplete,inaccurate,
ormisleadinginformationfurnishedbytheMCAEntityorthetermsandconditionsofthecontracthadbeen
modiedwithoutMCCapproval.
References to MCC
P.B..6TeMCAEntityshallusethefollowinglanguage(orsimilarlanguageacceptabletoMCC)whenrefer-
ringtoMCCinprocurementdocuments:
Te United States of Anerica, acting through the Millenniun Challenge Corporation (MCC) and the jInsert
Country[ (the Governnent) have entered into a Millenniun Challenge Conpact for Millenniun Challenge Ac-
count assistance to help facilitate poverty reduction through econonic growth in jInsert Country[ (the Conpact)
in the anount of approxinately jInsert anount of Conpact[ USD (MCC Funding). Te Governnent, acting
through jInsert full legal nane of the MCA Entity[ (MCA-jInsert as Appropriate[) intends to apply a portion
of the MCC Funding to eligible paynents under a contract for which this Request for Proposals is issued. Any
paynents nade under the proposed contract will be subfect, in all respects, to the terns and conditions of the
Conpact and related docunents, including restrictions on the use and distribution of MCC Funding. ^o party
other than the Governnent and jthe MCA Entity[ shall derive any rights fron the Conpact or have any clain to
the proceeds of MCC Funding.
Training or Transfer of Knowledge
P.B..;IftheassignmentincludesanimportantcomponentfortrainingortransferofknowledgetotheMCA
Entitystaornationalconsultants,theTORshallindicatetheobjectives,nature,scope,andgoalsofthetraining
program,includingdetailsontrainersandtrainees,skillstobetransferred,timeframe,andmonitoringand
evaluationarrangements.Tecostforthetrainingprogramshallbeincludedintheconsultantscontractandin
thebudgetfortheassignment.
Language
P.B..8Alladvertisementsforcontractsandnoticesofcontractawardsforcontractsvaluedatorabove
oo,oooUSD,whetherpostedattheMCAEntityswebsite,atdgMarket,orUNDB Online,shallbepostedin
English,and,atthediscretionoftheMCAEntitymayalsobepublishedintheociallanguageofthecountry
oftheMCAEntity(ifotherthanEnglish).Advertisementsforcontractsandnoticesofcontractawardsforcon-
tractsvaluedatlessthanoo,oooUSDmaybepublishedinEnglishortheociallocallanguageofthecountry
oftheMCAEntity(ifdierentfromEnglish)orinbothlanguagesatthediscretionoftheMCAEntity.TeEng-
lishversionwillcontrolintheeventofdiscrepanciesbetweentheEnglishversionandalocallanguageversion.
P.B..,Forallcontractsatoraboveoo,oooUSD,thesolicitationdocuments,thedocumentsrespondingto
thesesolicitations(includingtheproposals)andthecontractsthemselvesshallbepreparedinEnglish,andthis
languageshallgoverncontractualrelationsbetweentheMCAEntityandtheconsultant.Atthediscretionofthe
MCAEntity,thesolicitationdocumentsalsomaybepreparedinthelocalociallanguageofthecountryofthe
MCAEntity(ifdierentfromEnglish).Forcontractsvaluedatlessthanoo,oooUSD,anysolicitationdocument,
respondingdocumentsandcontractsmaybepreparedinEnglish,thelocalociallanguageoftheMCAEntity
(ifdierentfromEnglish)orbothatthediscretionoftheMCAEntity.However,consultantsshallnotbepermit-
tedorrequiredtosigncontractsintwo(a)languages.TeEnglishversionwillcontrolintheeventofdiscrepan-
ciesbetweentheEnglishversionandalocallanguageversion.
P.B.,.TeMCAEntitymayseekalimitedwaiverfromthelanguagerequirementsofParagraphP.B..8and
P.B..,asdescribedinPart,,Language.
Fraud and Corruption
P.B..aoMCCrequiresthatallbeneciariesofMCCfunding,includingtheMCAEntityandanyconsultantand
sub-consultantsunderanyMCC-fundedcontracts,observethehigheststandardsofethicsduringtheprocure-
mentandexecutionofsuchcontracts.MCCsPolicyonPreventing,Detecting,andRemediatingFraudand
CorruptioninMCCOperationsisapplicabletoallprocurementsinvolvingMCCfundingandcanbefoundon
theMCCWebsite.Inpursuanceofthispolicy,thefollowingprovisionsshallapply.
P.B..a(a)Forthepurposesoftheseprovisions,thetermssetforthbelowaredenedasfollows:
(i)coercivepractice
meansimpairingorharmingorthreateningtoimpairorharm,directlyorindirectly,
personsortheirproperty,toinuencetheirparticipationinaprocurementprocess,oraecttheexecutionofa
contract,
(ii)collusivepractice
meansaschemeorarrangementbetweentwo(a)ormoreparties,withorwithoutthe
knowledgeoftheMCAEntity,designedtoestablishpricesatarticial,noncompetitivelevelsortootherwise
deprivetheMCAEntityofthebenetsoffreeandopencompetition,
(iii)corruptpracticemeanstheoering,giving,receiving,orsoliciting,directlyorindirectly,ofanythingof
valuetoinuencetheactionsofapublicocial(includingMCAEntityandMCCsta,andemployeesofother
organizationstakingorreviewingselectiondecisions)intheselectionprocessorincontractexecution,orthe
makingofanypaymenttoanythirdparty,inconnectionwithorinfurtheranceofacontract,inviolationof(A)
theFCPA,oranyotheractionstakenthatotherwisewouldbeinviolationoftheFCPAiftheFCPAwereappli-
cable,or(B)anyapplicablelawintheMCAEntityscountry,
(iv)fraudulentpractice
meansanyactoromission,includinganymisrepresentation,inordertoinuence(or
attempttoinuence)aselectionprocessortheexecutionofacontract,toobtainanancialorotherbenet,or
toavoid(orattempttoavoid)anobligation,
(v)obstructivepracticemeans
(aa)destroying,falsifying,alteringorconcealingofevidencematerialtotheinvestigationormakingfalsestate-
mentstoinvestigatorsinordertoimpedeaninvestigationintoallegationsofacoercive,collusive,corrupt,fraud-
ulent,orprohibitedpractice,andthreatening,harassing,orintimidatinganypartytopreventitfromdisclosing
itsknowledgeofmattersrelevanttotheinvestigationorfrompursuingtheinvestigation,and
(bb)actsintendedtoimpedetheexerciseoftheinspectionandauditrightsofMCCprovidedundertheCom-
pactandrelatedagreements,and
(vi)prohibitedpracticemeansanyactionthatviolatesSectionE(CompliancewithAnti-Corruption,Anti-
MoneyLaunderingandTerroristFinancingStatutesandOtherRestrictions)oftheGeneralProvisionsAnnex
thatwillbemadeapartofMCC-fundedcontractsandmaybefoundontheMCCwebsiteathttpwww.ncc.
govguidanceconpactgeneral_provisions.pdf.
P.B..a(b)TeMCAEntitywillrejectaproposal(andMCCwilldenyapprovalofaproposedcontractaward)
ifitdeterminesthattheconsultantrecommendedforawardhas,directlyorthroughanagent,engagedincoer-
cive,collusive,corrupt,fraudulent,obstructiveorprohibitedpracticesincompetingforthecontractinquestion.
P.B..a(c)MCCandtheMCAEntityhavetherighttosanctionaconsultantorsub-consultant,including
declaringsuchpartyineligible,eitherindenitelyorforastatedperiodoftime,tobeawardedanMCC-funded
contractifatanytimeeithertheMCAEntityorMCCdeterminesthattheconsultantorsub-consultanthas,
directlyorthroughanagent,engagedincoercive,collusive,corrupt,fraudulent,obstructiveorprohibitedprac-
ticesincompetingfor,orinexecuting,suchacontract.
P.B..a(d)MCCandtheMCAEntityhavetherighttorequirethataconsultantorsub-consultantpermitthe
MCAEntity,MCC,oranydesigneeofMCC,toinspectitsaccounts,recordsandotherdocumentsrelatingto
thesubmissionofaproposalorperformanceofanMCC-fundedcontractandtohavethemauditedbyauditors
appointedbyMCCortheMCAEntitywiththeapprovalofMCC.
P.B..a(e)MCChastherighttocancelanyportionoralloftheMCCfundingallocatedtoacontractifit
determinesatanytimethatrepresentativesofabeneciaryoftheMCCfundingengagedincoercive,collusive,
corrupt,fraudulent,obstructiveorprohibitedpracticesduringtheselectionprocessortheexecutionofan
MCC-fundedcontract,withouttheMCAEntityhavingtakentimelyandappropriateactionsatisfactorytoMCC
toremedythesituation.
P.B..aaWiththespecicapprovalofMCC,theMCAEntitymayintroduceintotheproposalformsforcon-
tractsfundedbyMCC,anundertakingoftheconsultanttoobserve,incompetingforandexecutingacontract,
thecountryslawsagainstfraudandcorruption(includingbribery).MCCwillaccepttheintroductionofsuch
undertakingattherequestoftheMCAEntity,providedthearrangementsgoverningsuchundertakingaresatis-
factorytoMCC.
P.B..aOneoftheMCCProgramProcurementPrinciplesisthatNomorethanacommerciallyreasonable
price(asdetermined,forexample,byacomparisonofpricequotationsandmarketprices)shallbepaidtopro-
curetheconsultantservices.Toensurecompliancewiththisprinciple,theMCAEntityshallconductaprice-
reasonablenessanalysisofthepricesoeredinaprocurementprocess(bothforcompetitiveandsingle-source
procurements)forconsultantservicesinaccordancewithAttachment,GuidanceonthePrice-Reasonableness
Analysis.
II. Quality and Cost Based Selection
Te Selection Process
P.B.a.QualityandCostBasedSelectionusesacompetitiveprocessthattakesintoaccountthequalityofthe
proposalandthecostoftheservicesintheselectionofthesuccessfulrm.Costasafactorofselectionshall
beusedjudiciously.Terelativeweighttobegiventothequalityandcostshallbedeterminedforeachcase
dependingonthenatureoftheassignment.
Terms of Reference
P.B.a.aTeMCAEntityshallberesponsiblefortheTermsofReference(TOR)fortheassignment.TeTOR
shallbepreparedbyanimplementingentity,person(s),orarmspecializedintheareaoftheassignment.Te
scopeoftheservicesdescribedintheTORshallbecompatiblewiththeavailablebudgetasapprovedbyMCC
intheProcurementPlan.TeTORshalldeneclearlytheobjectives,goals,andscopeoftheassignmentand
providebackgroundinformation(includingalistofexistingrelevantstudiesandbasicdata)tofacilitatethecon-
sultantspreparationoftheirproposals.Iftransferofknowledgeortrainingisanobjective,itshouldbespeci-
callyoutlinedalongwithdetailsofnumberofstatobetrained,andsoforth,toenableconsultantstoestimate
therequiredresources.TeTORshalllisttheservicesandsurveysnecessarytocarryouttheassignmentand
theexpectedoutputs(forexample,reports,data,maps,surveys).However,theTORshouldnotbetoodetailed
orinexible,soastopreventcompetingconsultantsfromproposingtheirownmethodologyandstang.Firms
shallbeencouragedtocommentontheTORintheirproposals.TerespectiveresponsibilitiesoftheMCA
Entity,theimplementingentity(ifrelevant)andtheconsultantshouldbedenedclearlyintheTOR.SeeAttach-
ment,GuidanceonWritingandReviewingTermsofReference,foradditionalguidanceonpreparingtheTOR.
Budget
P.B.a.PreparationofathoroughandrealisticbudgetestimateisessentialifMCCfundingistobemanaged
properly.TisbudgetshouldbecarefullyconsideredduringthepreparationoftheProcurementPlanbetween
theMCAEntitysprocurementdirector,scaldirectorandtherelevantsectordirector,andshouldcorrespond
tothefundsavailableinthescalaccountabilityplanforthatsectorandtheactivity.Basedonthisbudget,
theMCAEntitysprocurementdirectorwilldecidetheprocurementmethodologytobeused,whichisthen
Piogiam Piocuiement Cuidelines, Octobei a, aoo, (o
approvedbyMCCduringtheapprovaloftheProcurementPlan.Anymodicationofthebudgetortheprocure-
mentmethodologyaftertheapprovaloftheProcurementPlan,mustbeapprovedbyMCC(seePartaforguid-
anceondevelopingtheProcurementPlan).TebudgetestimateshallbebasedontheMCAEntitysassessment
(withinputfromtheimplementingentity)oftheresourcesneededtocarryouttheassignment,includingsta
time,logisticalsupport,andphysicalinputs(e.g.vehiclesandequipment).
Advertising
P.B.a.Timelynoticationofprocurementopportunitiesisessentialincompetitivebidding.Onatleastasemi-
annualbasis,theMCAEntityshallpublicizethroughaGeneralProcurementNotice,procurementsplanned
fortheupcomingperiodasidentiedintheadoptedProcurementPlanwhichwasapprovedbyMCC.TeGPN
shallbeadvertisedinamannertoprovidereasonablenoticeofplannedprocurementstopotentialsuppliersand
contractors.AdvertisementoftheGPN,shallincludepostinginEnglishattheMCAEntityswebsite(orsuch
otherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC),thedgMarketandUNDB On-
line.TeMCAEntityshallalsopublishtheGPNinanewspaperofwidecirculationinthecountryoftheMCA
EntityandinsuchothermediaoutletsasappropriateorasrequestedfromtimetotimebyMCC.Incountries
wheretheociallanguageisotherthanEnglish,theGPNshallbepublishedintheociallocallanguageofthe
countryoftheMCAEntityinatleastonenewspaperofwidecirculationinthecountryandalsoontheMCA
Entityswebsite.
P.B.a.InvitationsforspecicprocurementsshallbeadvertisedasSPNs.Forcontractsvaluedatorover
oo,oooUSD,suchinvitationsshallbepublishedinatleastone()newspaperofnationalcirculationinthecoun-
tryoftheMCAEntityandpostedattheMCAEntityswebsite(orsuchotherappropriatewebsitedesignatedby
theMCAEntityandapprovedbyMCC),atthedgMarketwebsite,andatUNDBOnline.Contractsvaluedbelow
oo,oooUSDcanbeadvertisedinthevenueofpreferenceoftheMCAentity--local,regionalandiorinterna-
tional.Publicationinlocalprintandbroadcastandothernationalandinternationalmediaisencouragedaslong
asthepostingdoesnotpre-datetherequiredpostings.TeMCAEntitywillpublishaSPNinsucienttime
toenableprospectiveconsultantstoobtaininformation,ortherelevantsolicitationdocuments,andprepare
andsubmittheirresponses,takingintoconsiderationtheestimatedvalueofthecontractandperiodofadvance
noticegivenwiththeGPN.MCCreservestherighttoapprovethetextofaSPN.
Short List of Consultants
P.B.a.6TeMCAEntitymaybegintheprocurementwithanopenrequestforproposalsorconsultantqualica-
tionsor,ifprovidedforintheProcurementPlan,theMCAEntitymayadvertiseforRequestforExpressionof
Interest(REOI).IftheMCAEntityadvertisesforREOI,basedonthereviewofthesubmissions,itmayprepare
ashort-listandinviteonlyshort-listedrmsorindividualstosubmitproposalsorqualicationsasappropriate
fortheselectionprocedurechosenfortheparticularprocurement.WhentheMCAEntitychoosestobegina
procurementwithashortlistingprocedure,theMCAEntityisresponsibleforpreparationoftheshortlist.Tere
( Piogiam Piocuiement Cuidelines, Octobei a, aoo,
isnomaximumlimittothenumberofrmsthatmaybeshort-listedandcareshouldbetakennottoeliminate
qualiedparticipantsfromcompetingfortheconsultantcontract.Considerationmustbegiventoallrmsor
organizationsnationalandinternationalexpressinginterestandpossessingtherelevantqualications.Te
methodfordevelopingashortlistshallbefairandobjectiveaccordingtothecriteriapre-announcedinthe
REOI.
Preparation and Issuance of the Request for Proposals
Pa.B.a.;TeRequestforProposals(RFP)shallinclude(a)aLetterofInvitation(LOI):(b)Instructionsto
Consultants(ITC)togetherwithaproposaldatasheet:,(c)adescriptionofthequalicationsandevaluation
criteriatobeusedinconsideringtheproposalsreceived,(d)formstobeusedtoprepareboththetechnicaland
nancialproposals,(e)contractforms,and(f )theTermsofReference.TeMCAEntityshallusetheStandard
BiddingDocumentsforConsultingServicesprovidedbyMCCpursuanttoPartoftheseGuidelines,asmay
bemodiedtoaddressProject-specicconditions,subjecttoMCCapprovalwhenthechangeismaterial.
TeMCAEntitymayuseanelectronicsystemtodistributetheRFP,providedthatMCCissatisedwiththe
adequacyofsuchsystem.IftheRFPisdistributedelectronically,theelectronicsystemshallbesecuretoavoid
modicationstotheRFPandshallnotunfairlyrestricttheaccessofconsultantstotheRFP.WhentheStandard
BiddingDocumentsarenotappropriate(forexample,forpreshipmentinspectionandprocurementservices),
theMCAEntityshalluseothercontractformsacceptabletoMCC.
Receipt of Proposals
P.B.a.8TeMCAEntityshallallowenoughtimefortheconsultantstopreparetheirproposals.Tetime
allowedshalldependontheassignment,thevalueofthecontractandthedicultyofpreparingatechnical
proposalandthedurationoftheadvancenoticegivenwithpostingoftheGPN.Tetechnicalandnancialpro-
posalsshallbesubmittedatthesametime.Noamendmentstothetechnicalornancialproposalsshallbeac-
ceptedafterthedeadline.Tosafeguardtheintegrityoftheprocess,thetechnicalandnancialproposalsshallbe
submittedinseparatesealedenvelopes.Anyproposalreceivedaftertheclosingtimeforsubmissionofproposals
shallbereturnedunopenedafterthetimeforprotesthasexpired.Consultantsortheirrepresentativesshallbe
allowedtobepresent(inpersonoronline,whenelectronicbiddingisused).Tegeneralpublicmayattendat
thediscretionoftheMCAEntity.Tenancialproposalsshallremainsealedandshallbeproperlysecureduntil
theyareopenedinaccordancewithParagraphP.B.a.ooftheseGuidelines.TeMCAEntitymayuseelectronic
systemspermittingconsultantstosubmitproposalsbyelectronicmeans,providedMCCissatisedwiththe
adequacyofthesystem,including,thatthesystemissecure,maintainsthecondentialityandauthenticityof
proposalssubmittedandusesanelectronicsignaturesystemorequivalenttokeepconsultantsboundtotheir
proposals.Consultantsshallcontinuetohavetheoptiontosubmittheirproposalsinhardcopy.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, (a
Evaluation of Proposals: Consideration of Technical Quality and Cost
P.B.a.,Teevaluationoftheproposalsshallbecarriedoutintwo(a)stages:()technicalqualityand(a)cost.
TeMCAEntityshalluseatechnicalevaluationpanel(TEP)toevaluateeachtechnicalproposal.Guidance
ontheTEPisprovidedinAttachment.MCCencouragesexpertexternalexpertiseonmajorprocurements.
Evaluatorsoftechnicalproposalsshallnothaveaccesstothenancialproposalsuntilthetechnicalevaluation,
includinganyrequiredMCCreviewsandapprovals,isconcluded.Teevaluationshallbecarriedoutinfull
conformitywiththeprovisionsoftheRFP.
Evaluation of Financial Proposals
P.B.a.oAftertheevaluationofqualityiscompletedandtherequiredreviewsandapprovalshavebeenissued,
theMCAEntityshallinformtheconsultantswhohavesubmittedproposalsofthetechnicalpointsassignedto
eachconsultantandshallnotifythoseconsultantswhoseproposalsdidnotmeettheminimumqualifyingmark
orwereconsiderednonresponsivetotheRFPandtheTORthattheirnancialproposalswillbereturnedun-
openedafterthesignatureofthecontract.TeMCAEntityshallsimultaneouslynotifytheconsultantsthathave
securedatleasttheminimumqualifyingmarkofthedate,time,andplacesetforopeningthenancialproposals
andnotifythemthattheirattendanceattheopeningofthenancialproposalsisnotmandatory.Baseduponthe
nancialproposalopeningdate,unavoidableconstraintsmayallowforaveryshortnoticetoconsultantstomake
arrangementstoattendtheopeningofthenancialproposals.Tenancialproposalsshallbeopenedpublicly
inthepresenceofrepresentativesoftheconsultantswhochoosetoattend(inpersonoronline).Tenameofthe
consultant,thetechnicalpoints,andtheproposedpricesshallbereadaloudandrecorded.Acopyoftherecord
willbeprovidedtoallconsultantswhoseproposalswereopened.
P.B.a.TeMCAEntityshallthenreviewthenancialproposals.Ifthereareanyarithmeticalerrors,they
shallbecorrected.Forthepurposeofcomparingproposals,theRFPshallrequirethatallproposalsbestated
inthesamecurrencyorcurrencies(localcurrencyofthecountryoftheMCAEntity,orUSDoracombination
ofthetwo).Ifthereisaneedtomakeaconversionbetweenthetwoallowablecurrencies,theRFPshallspecify
thesourceoftheexchangeratetobeusedandthedateofthatexchangerate,providedthatthedateshallnot
beearlierthanfourweekspriortothedeadlineforsubmissionofproposals,norlaterthantheoriginaldateof
expirationoftheperiodofvalidityoftheproposal.Anyproposalthatdeviatesfromthecurrencyrequirementas
statedintheRFPmayberejectedasnon-responsive.
P.B.a.aForthepurposeofevaluation,thenancialproposalsshallincludeorexcludelocalidentiabledirect
orindirecttaxesasinstructedintheRFP.Tenancialproposalshallincludeallconsultantsremunerationand
otherexpensessuchastravel,translation,reportprinting,orsecretarialexpenses.Teevaluationmethodology
tobeusedshallbedescribedintheRFP.
Combined Technical Quality and Price Evaluation
P.B.a.Tetotalscoreshallbeobtainedbyweightingthetechnicalqualityandpricescoresusingthemethod-
ologyasdescribedintheRFP.Termobtainingthehighesttotalscoreshallbeinvitedfornegotiations.
P.B.a.WhentheprocurementissubjecttoMCCpriorreviewforproposedaward(SeeAttachment),the
MCAEntityshallfurnishacombinedevaluationreporttoMCCforitsreviewandapprovalbeforetheMCAEn-
titycommencesnegotiationswiththeselectedbidder.Tecombinedevaluationreportmustcontainacomplete
historyoftheprocurementprocessculminatingwitharecommendationforaward.
Negotiations and Award of Contract
P.B.a.NegotiationsshallincludediscussionsoftheTOR,themethodology,stang,inputsbytheMCAEntity
andspecialconditionsofthecontract.TesediscussionsshallnotsubstantiallyaltertheoriginalTORorthe
termsofthecontract,lesttheprocurementprocessbeinvalidated.TenalTORandtheagreedmethodology
shallbeincorporatedintotheDescriptionofServices,whichshallformpartofthecontract.
P.B.a.6Teselectedrmshouldnotbeallowedtosubstitutekeysta,unlessbothpartiesagreethatundue
delayintheselectionprocessmakessuchsubstitutionunavoidableorthatsuchchangesarecriticaltomeetthe
objectivesoftheassignment.Ifthisisnotthecaseandifitisestablishedthatkeystawereincludedinthepro-
posalwithoutconrmingtheiravailability,thermmaybedisqualiedandtheprocesscontinuedwiththenext
rankedrm.Tekeystaproposedforsubstitutionshallhavequalicationsequaltoorbetterthanthekeysta
initiallyproposed.
P.B.a.;Financialnegotiationsshallincludeclaricationoftheconsultantstaxliabilityinthecountryofthe
MCAEntity(ifany)toensurethatthecontractisconsistentwiththeprovisionsoftheCompactandanySupple-
mentalAgreement.AspaymentsunderFixed-PriceContractsarebasedonworkdoneanddeliveryofoutputs
(orproducts),theoeredpriceshallincludeallcosts(statime,overhead,travel,hotel,etc.).Consequently,ifthe
selectionmethodforaFixed-PriceContractincludedpriceasacomponent,thispriceshallnotbenegotiated.
InthecaseofTime-BasedContracts,paymentisbasedoninputs(statimeandreimbursables)andtheoered
priceshallincludestaratesandanestimationoftheamountofreimbursables.Whentheselectionmethod
includespriceasacomponent,negotiationsofstaratesshouldnottakeplace,exceptinspecialcircumstances,
suchaswhenstaratesoeredaremuchhigherthanratestypicallychargedbyconsultantsinsimilarcircum-
stancesforsimilarcontracts.Reimbursablesaretobepaidonactualexpensesincurredatcost,subjecttolimita-
tionssetoutintheapplicableMCCCostPrinciples,uponpresentationofreceiptsandthereforearenotsubject
tonegotiations.However,iftheMCAEntitywantstodeneceilingsforunitpricesofcertainreimbursables(like
travelorhotelrates)itshouldindicatethemaximumlevelsofthoseratesintheRFPordeneaperdieminthe
RFP.Ifthecontractpermitsreimbursementofanycosts,thereimbursementratesshallbelimitedbyapplicable
MCCCostPrinciplesfoundattheMCCwebsite,www.ncc.gov.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ((
P.B.a.8Ifthenegotiationsfailtoresultinanacceptablecontractwithinareasonabletime,theMCAEntity
shallterminatethenegotiationsandinvitethenextrankedrmfornegotiations.Ifthereisnonextrankedrm
fortheprocurement,theprocurementmaybecancelledandre-competed.TeMCAEntityshallconsultwith
MCCpriortotakingthisstep.Teconsultantshallbeinformedofthereasonsforterminationofthenegotia-
tions.Oncenegotiationsarecommencedwiththenextrankedrm,theMCAEntityshallnotreopentheearlier
negotiations.Afternegotiationsaresuccessfullycompletedandallrequiredreviewsandapprovalshavebeen
issued,theMCAEntityshallpromptlynotifyotherrmsthattheywereunsuccessful.
Publication of the Award of Contract
P.B.a.,Aftertheawardofcontract,theMCAEntityshallposttheresults,identifyingtheprocurement,the
nameofthewinningbidderandtheprice,duration,andsummaryscopeofthecontractatthesamesitethat
hostedtheSPNandtheMCAEntityswebsite.Tesameinformationshallbesenttoallconsultantswhohave
submittedproposals.TepostingattheSPNsitesmustbedonemonthlyandattheMCAEntityswebsite(or
suchotherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC)atleastweekly.Tepost-
ingshallbeinaformatofasummarizedtablecoveringthepreviousperiod.AllsuchpostingsshallbeinEnglish.
AtthediscretionoftheMCAEntity,postingontheMCAEntityswebsite(orsuchotherappropriatewebsite
designatedbytheMCAEntityandapprovedbyMCC)mayalsobeinthelocallanguageofthecountryofthe
MCAEntity.
Debrieng
P.B.a.aoInthepublicationofcontractawardreferredtoinParagraphP.B.a.,above,theMCAEntityshall
specifythatanyconsultantwhowishestoascertainthegroundsonwhichitsproposalwasnotselectedshould
requestanexplanationfromtheMCAEntity.TeMCAEntityshallpromptlyprovidetheexplanationastowhy
suchproposalwasnotselected,inwritingandiorinadebriengmeeting,attheoptionoftheconsultant.Te
requestingconsultantshallbearallthecostsofattendingsuchadebrieng.
Rejection of All Proposals, and Re-invitation
P.B.a.aTeMCAEntitywillbejustiedinrejectingallproposalsonlyifallproposalsarenonresponsive
becausetheypresentmajordecienciesincomplyingwiththeTOR,iftheyinvolvepricessubstantiallyhigher
thantheoriginalestimate,orifcontractingfortheservicesisnolongerinthebestinterestofimplementationof
theCompact.Inthecaseofahigherprice,thefeasibilityofincreasingthebudget,orscalingdownthescopeof
serviceswiththermshouldbeinvestigatedinconsultationwithMCC.Beforealltheproposalsarerejectedand
newproposalsareinvited,theMCAEntityshallnotifyMCC,indicatingthereasonsforrejectionofallpropos-
als,andifrequiredbyAttachment,shallobtainMCCsapprovalbeforeproceedingwiththerejectionandthe
newprocess.TenewprocessmayincluderevisingtheRFP(includingtheshortlist)andthebudget.Teserevi-
sionsshallbeagreeduponwithMCC.Withintwoweeksoftherejectionofallproposals,theMCAEntityshall
postatthesamesitethathostedtheSPNnoticationofthecancellationoftheprocurement.Tenotication
shallidentifytheprocurementandstatebrieythereasonsforcancellation.Tesameinformationshallbesent
toallthosewhohavesubmittedproposals.AllsuchpostingsshallbeinEnglish.AtthediscretionoftheMCA
Entity,postingontheMCAEntityswebsite(orsuchotherappropriatewebsitedesignatedbytheMCAEntity
andapprovedbyMCC)mayalsobeinthelocallanguageofthecountryoftheMCAEntity.
Condentiality
P.B.a.aaInformationrelatingtoevaluationofproposalsandrecommendationsconcerningawardsshallnotbe
disclosedtotheconsultantswhosubmittedtheproposals,ortootherpersonsnotociallyconcernedwiththe
process,exceptasprovidedinParagraphsP.B.a.oandP.B.a.8ofSection.BoftheseGuidelines.
III. Other Methods of Selection
General
P.B..TisSub-Section.B.IIIdescribestheselectionmethodsotherthanQCBS,andthecircumstancesunder
whichtheyareacceptable.Alltherelevant
provisionsofSub-Section.B.II(QCBS)shallapplywhenevercom-
petitionisused.
Quality Based Selection
P.B..aQualityBasedSelection(QBS)maybeappropriateforthefollowingtypesofassignments:
P.B..a(a)complexorhighlyspecializedassignmentsforwhichitisdiculttodenepreciseTORsandthe
requiredinputfromtheconsultants,andforwhichtheMCAEntityexpectstheconsultantstodemonstratein-
novationintheirproposals,
P.B..a(b)assignmentsthathaveahighdownstreamimpactandinwhichtheob jectiveistohavethebest
experts,and
P.B..a(c)assignmentsthatcanbecarriedoutinsubstantiallydierentways,suchthatproposalswillnotbe
comparable.
P.B..InQBS,theRFPmayrequestsubmissionofatechnicalproposalonly(withoutthenancialproposal),
orrequestsubmissionofbothtechnicalandnancialproposalsatthesametime,butinseparateenvelopes(two
(a)-envelopesystem).TeprocurementshallbeadvertisedaccordingtotherequirementssetoutinParagraphs
P.B.a.andP.B.a.ofSection.B,andmay,atthediscretionoftheMCAEntity,beprecededbyashortlisting
procedure(seeParagraphP.B.a.6ofSection.B).TeRFPmayprovideeither,butneverboth,theestimated
pricebudgetortheestimatedlevelofeortofkeysta.
AllprovisionsofSection.B.IIshallbeappliedwiththemodicationsandsuppressionsrequiredbythemethodforselectingconsultantsusedinthe
speciccase.Advertisementisnotrequiredwhensinglesourceselectionisused.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, (6
P.B..Iftechnicalproposalsalonewereinvited,afterevaluatingthetechnicalproposalsusingthesame
methodologyasinQCBS,theMCAEntityshallasktheconsultantwiththehighestrankedtechnicalproposal
tosubmitadetailednancialproposal.TeMCAEntityandtheconsultantshallthennegotiatethenancial
proposalandthecontract.AllotheraspectsoftheselectionprocessshallbeidenticaltothoseofQCBS,includ-
ingthepublicationoftheawardofcontractasdescribedinParagraphP.B.a.,.Ifconsultantswererequestedto
providenancialproposalsinitiallytogetherwiththetechnicalproposals,safeguardsshallbebuiltinasinQCBS
toensurethat,afterthenegotiationsaresuccessfullyconcluded,thenancialproposalofonlytheselectedrm
isopenedandtherestarereturnedunopened.
Selection under a Fixed Budget
P.B..TeSelectionunderaFixedBudget(FBS)methodisappropriatewhentheassignmentcanbeprecisely
dened.TeRFPshallindicatetheavailablebudgetandrequesttheconsultantstoprovidetheirbesttechnical
andnancialproposals,whichstaywithinthebudget,inseparateenvelopes.TeTORshouldbeparticularly
wellpreparedtomakesurethatthebudgetissucientfortheconsultantstoperformtheexpectedtasks.Te
procurementshallbeadvertisedaccordingtotherequirementssetoutinParagraphsP.B.a.andP.B.a.of
Section.B,andmay,atthediscretionoftheMCAEntity,beprecededbyashortlistingprocedure(seePara-
graphsP.B.a.6ofSection.B).EvaluationofalltechnicalproposalsshallbecarriedoutrstasintheQCBS
method.Tenthenancialproposalsshallbeopenedinpublicandpricesshallbereadaloud.Proposalsthat
exceedtheindicatedbudgetshallberejected.Teconsultantwhohassubmittedthehighestrankedtechnical
proposalshallbeselectedandinvitedtonegotiateacontract.Tepublicationoftheawardofcontractshallbeas
describedinParagraphP.B.a.,.
Least-Cost Selection
P.B..6TeLeast-CostSelection(LCS)methodisappropriateforselectingconsultantsforassignmentsof
astandardorroutinenature(audits,engineeringdesignofnoncomplexworks,etc.)wherewellestablished
practicesandstandardsexist.TismethodshallnotbeusedasasubstituteforQCBSandshallbeusedonlyfor
thespeciccasesofprocurementsthatareofaverystandardandroutinetechnicalnaturewheretheintellectual
componentisminor.Underthismethod,aminimumqualifyingmarkforthequalityof;opointsorhigheris
established.Proposals,tobesubmittedintwo(a)envelopes,areinvited.Teprocurementshallbeadvertisedac-
cordingtotherequirementssetoutinParagraphsP.B.a.andP.B.a.ofSection.B,andmay,atthediscretion
oftheMCAEntity,beprecededbyashortlistingprocedure(seeParagraphsP.B.a.6ofSection.B).Technical
proposalsareopenedrstandevaluated.Tosesecuringlessthantheminimumqualifyingmarkarerejected,
andthenancialproposalsoftherestareopenedinpublic.Termwiththelowestpriceshallthenbeselected
andthepublicationoftheawardofcontractshallbeasdescribedinParagraphP.B.a.,.Underthismethod,the
minimumqualifyingmarkshallbeestablished,understandingthatallproposalsabovetheminimumcompete
onlyonprice.TeminimumqualifyingmarkshallbestatedintheRFP.
(; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Selection Based on the Consultants Qualications
P.B..;TeConsultantsQualications(CQS)methodmaybeusedwheretheneedforpreparingandevaluat-
ingcompetitiveproposalsisnotjustiedbecauseofthecostorlengthoftheassignment.Insuchcases,theMCA
EntityshallpreparetheTOR,requestinformationontheconsultantsexperienceandcompetencerelevantto
theassignment,andselectthermwiththemostappropriatequalicationsandreferences.Teprocurement
shallbeadvertisedaccordingtotherequirementssetoutinParagraphsP.B.a.andP.B.a.ofSection.B.Te
selectedrmshallbeaskedtosubmitacombinedtechnicalandnancialproposalandthenbeinvitedtonegoti-
atethecontract.
P.B..8TepublicationoftheawardofcontractshallbeasdescribedinParagraphP.B.a.,.
Individual Consultants
P..B..,Individualconsultantswhosecontractswillhaveavalueabovethea,oooUSDthresholdareemployed
onassignmentsforwhich(a)teamsofpersonnelarenotrequired,(b)additionaloutside(homeoce)profes-
sionalsupportisnotrequired,and(c)theexperienceandqualicationsoftheindividualaretheparamount
requirement.Whencoordination,administration,orcollectiveresponsibilitymaybecomedicultbecauseof
thenumberofindividuals,itwouldbeadvisabletoemployarm.
P.B..oIndividualconsultantsareselectedonthebasisoftheirqualicationsfortheassignment.Teprocure-
mentshallbeadvertisedaccordingtotherequirementssetoutinParagraphsP.B.a.andP.B.a.ofSection.B
andmay,atthediscretionoftheMCAEntity,beprecededbyashortlistingprocedure(seeParagraphsP.B.a.6
ofSection.B).Consultantsdonotneedtosubmitproposalsbutshallbeselectedthroughevaluationand
comparisonofqualications.Individualsconsideredforcomparisonofqualicationsshallmeettheminimum
relevantqualicationsandthoseselectedtobecontractedbytheMCAEntityshallbethebestqualiedandshall
befullycapableofcarryingouttheassignment.Capabilityisjudgedonthebasisofevidenceofknowledgeand
pastexperiencerelevanttotheservicestobeprovidedandpastperformancebaseduponreferencesandrecom-
mendations.
P.B..Fromtimetotime,permanentstaorassociatesofaconsultantrmmaybeavailableasindividual
consultants.Insuchcases,theconictofinterestprovisionsdescribedintheseGuidelinesshallapply.
P.B..aIndividualconsultantsmaybeselectedonasolesourcebasiswithduejusticationinexceptionalcases
suchasfor:(a)tasksthatareacontinuationofpreviousworkthattheconsultanthascarriedoutandforwhich
theconsultantwasselectedcompetitively,(b)certainassignmentswithtotalexpecteddurationoflessthansix
(6)months,(c)emergencysituationsresultingfromnaturaldisasters,and(d)whentheindividualistheonly
consultantqualiedfortheassignment.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, (8
P.B..RecruitmentofMCAEntitystaisnotconsideredaprocurementforthepurposesoftheseGuidelines
andthereforenotcoveredhereby.TeMCAEntity,however,shouldfollowitshiringpracticesandemployment
policies.
Sole Source Selection
P.B..SoleSourceSelection(SSS)ofconsultantsdoesnotprovidethebenetsofcompetitionwithregard
toqualityandcost,lackstransparencyinselection,andcouldencourageunacceptablepractices.Terefore,sole
sourceselectionshallbeusedonlyinexceptionalcases.Tejusticationforsolesourceselectionshallbeexam-
inedinthecontextoftheoverallinterestsoftheMCAEntityandimplementationoftheCompactandthere-
sponsibilityofMCCtoensureeconomyandeciencyandprovideequalopportunitytoallqualiedconsultants.
P.B..Solesourceselectionmaybeappropriateonlyifitpresentsaclearadvantageovercompetition:(a)for
tasksthatrepresentanaturalcontinuationofpreviousworkcarriedoutbytherm(seeParagraphP..B..6),
(b)inemergencycases,suchasinresponsetodisastersandforconsultantservicesrequiredduringtheperiodof
timeimmediatelyfollowingtheemergency,(c)forassignmentsofsmallvalueorofshortduration,or(d)when
onlyone()rmisqualiedorhasexperienceofexceptionalworthfortheassignment.
P.B..6Whencontinuityfordownstreamworkisessential,theinitialRFPshalloutlinethisprospect,andif
practical,thefactorsusedfortheselectionoftheconsultantshalltakethelikelihoodofcontinuationintoac-
count.Continuityinthetechnicalapproach,experienceacquired,andcontinuedprofessionalliabilityofthe
sameconsultantmaymakecontinuationwiththeinitialconsultantpreferabletoanewcompetition,subjectto
satisfactoryperformanceintheinitialassignment.Forsuchdownstreamassignments,theMCAEntityshallask
theinitiallyselectedconsultanttopreparetechnicalandnancialproposalsonthebasisoftheTORfurnishedby
theMCAEntity,whichshallthenbenegotiated.
P.B..;Iftheinitialassignmentwasnotawardedonacompetitivebasisorifthedownstreamassignmentis
substantiallylargerinvalue,acompetitiveprocessacceptabletoMCCshallnormallybefollowedinwhichthe
consultantcarryingouttheinitialworkisnotexcludedfromconsiderationifitexpressesinterest.MCCwill
considerexceptionstothisruleonlyunderspecialcircumstancesandonlywhenanewcompetitiveprocessis
notpracticable.
P.B..8TepublicationoftheawardofcontractshallbeasdescribedinSection.B,ParagraphP.B.a.,.
(, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
IV. Types of Contracts and Important Provisions
Types of Contracts
Fixed-Price Contract
P.B..Fixed-PriceContracts(eachaFixed-Price Contract)maytakevariousformssuchaslumpsum,unit
priceandpercentagefees.Percentagecontractsdirectlyrelatethefeespaidtotheconsultanttotheestimatedor
actualprojectconstructioncost,thecostofthegoodsprocuredorinspectedorothermeasureofservicesuchas
(i)inthecaseofaProcurementAgent,thevalueofcontractsprocuredor(ii)foraFiscalAgent,theamountof
fundsdisbursed.Percentagecontractsmustbedistinguishedfromcost-plus-percentage-of-costtypecontracts
whichareprohibitedassuchcontractsmotivateasupplier,contractororconsultanttoincreaseitsprotsby
increasingcostofperformance.Fixed-PriceContractsareusedmainlyforassignmentsinwhichthecontentand
durationoftheservicesandtherequiredoutputoftheconsultantsareclearlydened.Teyarewidelyusedfor
simpleplanningandfeasibilitystudies,environmentalstudies,detaileddesignofstandardorcommonstruc-
tures,preparationofdataprocessingsystems,andsoforth.Paymentsarelinkedtoworkdoneinperformanceof
thecontractandtooutputs(deliverables),suchasreports,drawings,billsofquantities,biddingdocuments,and
softwareprograms.Fixed-PriceContractsareeasiertoadministerthanTime-BasedContractsbecausepayments
aredueonclearlyspeciedoutputs.
Time-Based Contract
P.B..aTeTime-BasedContract(Time-Based Contract)isappropriatewhenitisdiculttodenethe
scopeandthelengthofservices,eitherbecausetheservicesarerelatedtoactivitiesbyothersforwhichthe
completionperiodmayvary,orbecausetheinputoftheconsultantsrequiredtoattaintheobjectivesoftheas-
signmentisdiculttoassess.Paymentsarebasedonagreedhourly,daily,weekly,ormonthlyratesforsta(who
arenormallynamedinthecontract)andonreimbursableitemsusingactualexpensesandioragreedunitprices.
Time-basedcontractsneedtobecloselymonitoredandadministeredbytheMCAEntitytoensurethatthe
assignmentisprogressingsatisfactorilyandthatpaymentsclaimedbytheconsultantsareappropriate.Forcon-
tractsthatpermitreimbursementofanycosts,thereimbursementratesshallbelimitedbyapplicableMCCCost
Principles.TecostsshallalsobesubjecttoauditinaccordancewiththerequirementssetoutintheCompact
andanySupplementalAgreements.
Reimbursable-Cost Contracts
P.B..AsdiscussedinPart,reimbursable-costcontractsareacceptabletoMCConlyinexceptionalcircum-
stancessuchasconditionsofhighriskorwherecostscannotbedeterminedinadvancewithsucientaccuracy.
Percentage Contract
P.B..PercentageContracts(eachaPercentage Contract)arecommonlyusedforarchitecturalservices.
PercentageContactsdirectlyrelatethefeespaidtotheconsultanttotheestimatedoractualProjectconstruction
cost.Tecontractsarenegotiatedonthebasisofmarketnormsfortheservicesandiorestimatedsta-month
costsfortheservices,orcompetitivelybid.Itshouldbeborneinmindthatinthecaseofarchitecturalorengi-
neeringservices,PercentageContractsimplicitlylackincentiveforeconomicdesignandarehencediscouraged.
Terefore,theuseofsuchacontractforarchitecturalservicesisrecommendedonlyitifisbasedonaxed
targetcostandcoverspreciselydenedservices
Indenite Delivery and Indenite Quantity Contract
P.B..IndeniteDeliveryandIndeniteQuantity(IDIQ)contractsareusedwhentheMCAEntityrequires
goods,simpleworks,andiorservicesforwhichdeliveryandquantitycannotbedenedinadvance.TeIDIQ
contractisnormallyforaperiodofayearormore.
Requirements and Blanket Purchase Agreements Contracts
P.B..6TeMCAEntitymayusethesecontracttypesforreoccurringneeds.
Allowable Currencies for Proposals
P.B..;RFPsshallclearlystatethatrmsmustexpressthepricefortheirservicesinthecurrencystatedinthe
RFP,whichineverycasemustbeeitherUnitedStatesdollarsorthelocalcurrencyofthecountryoftheMCA
Entityoracombinationthereof.ConsultantsmustcomplywiththecurrencyrestrictionsassetoutintheRFPs.
Anyproposalthatdeviatesfromthecurrencyrequirementasstatedinthesolicitationdocumentsmaybere-
jectedasnon-responsive.
Currency Conversion for Proposal Comparison
P.B..8TeproposalpriceisthesumofallpaymentsinUnitedStatesdollarsorthecurrencyofthecountryof
theMCAEntityasapplicable.WheretheRFPallowstheproposalpricetobestatedinmorethanonecurrency,
orthepurposeofcomparingpricesproposalpricesshallbeconvertedtoeitheroneofthetwocurrenciesasse-
lectedbytheMCAEntityandstatedintheRFP.TeMCAEntityshallmakethisconversionbyusingtheselling
(exchange)ratesforthosecurrenciesquotedbyanocialsource(suchastheCentralBankofthecountryofthe
MCAEntityortheOANDAwebsite-httpwww.oanda.conconvertclassic),byacommercialbankorbyan
internationallycirculatednewspaperforsimilartransactionsonadateselectedinadvance.Suchsourceanddate
shallbespeciedintheRFP,providedthatthedateshallnotbeearlierthanfourweekspriortothedeadlinefor
thereceiptofproposalsandnolaterthantheoriginaldatefortheexpirationoftheperiodofproposalvalidity.
Allowable Currencies for Contract Denomination and Payment
P.B..,ContractDenomination.ContractscanbedenominatedeitherinUnitedStatesdollars,thelocalcur-
rencyofthecountryoftheMCAEntity,or,ifjustiedbysoundbusinessreasons,acombinationofthetwo.
P.B..oContractPayment.ContractscanbepayableeitherinUnitedStatesdollars,thelocalcurrencyofthe
countryoftheMCAEntity,oracombinationofboth.
P.B..Inallcaseswherethecurrencydenominateddiersfromthecurrencyforpayment,aspecicexchange
ratemustbexedatthedateofcontractsigningandclearlydenedatthattimeinthecontractitself.
P.B..aTeMCAEntitymaynotrequireforeignbidderstobepaidinthelocalcurrencyofthecountryofthe
MCAEntity,theforeignbiddermustbepaidinUnitedStatesdollarsunless,atitsoption,itrequeststobepaid
inthelocalcurrencyofthecountryoftheMCAEntity.
Terms and Methods of Payment
P.B..TeRFPshallspecifythetermsandmethodsofpayment.Termsofpaymentmaynotbeusedasan
evaluationcriterionandmaynotaecttheproposalevaluation.
Advance Payments
P.B..Advancepaymentsareadvancesoffundstoaconsultantbefore,inanticipationof,andforthepurpose
ofperformanceunderthecontract.Sinceadvancepaymentsarenotmeasuredbycontractperformance,they
dierfromprogresspaymentswhicharebasedonactualperformanceoftasksinfurtheranceofthecontract.
Advancepaymentsforlong-termcontractsinvolvingconsiderablefront-endsetupcostsmaybeappropriatefor
consultingservices.
P.B..BecauseadvancepaymentsaremadebeforetheMCAEntityreceivesanyvalueforthefunds,advance
paymentsmaybeauthorizedonlywhenprogresspaymentsarenotviablebecauseofthedicultyinestablishing
anappropriatepaymentschedule.Advancepaymentshallbelimitedtooforconsultingservicesprocure-
ments,unlessMCCapprovesawaiverforahigherpercentage.
P.B..6Tebiddingdocumentsshallspecify(a)theamountoftheadvancepayment(asapercentageofthe
contractvaluedeterminedinaccordancewiththeseGuidelines),(b)theformofsecurityrequiredinconnection
withtheadvancepayment(asdiscussedmorefullyinP.B..;),and(c)themannerinwhichsuchadvancepay-
mentwillbeliquidatedagainstfutureinvoicepayments.Generally,advancepaymentsareliquidatedfrompay-
mentsmadetothesupplierorcontractorduringperformanceofthecontract,usuallybydeductingapercentage
fromeachscheduledpaymentforperformance.
Advance Payment Security Guarantees
P.B..;Inallcaseswhereadvancepaymentsareauthorized,includingpaymentmadeuponsignatureofacon-
tractforconsultantservices,acommitmentfromtheconsultantofanunconditionalsecurityguaranteefroma
reputablecommercialbankisrequiredinanamountequaltotheamountoftheadvancepayment.TeRFPshall
specifythearrangementsforanysecurityrequiredforadvancepayments.
Progress Payments
P.B..8ProgresspaymentsarethepreferredformofpaymentforallMCC-fundedcontracts.Progresspay-
mentsaremultiplepayments,eachpayableuponacceptablepartialperformanceofthecontract.Although
progresspaymentsforpartialperformancegenerallyaretreatedasamethodofpaymentandnotasamethod
ofcontractnancing,paymentforpartialperformancecanprovideconsultantswithneededworkingcapitalto
performthecontractwithoutuseofanadvancepaymenttoprovidecontractnancing.
P.B..,Wheneverappropriate,thecontractdeliverablesandthepaymentscheduleshouldbedesignedto
permitacceptanceandpaymentfordiscreteportionsofcontractperformancethatcomplywithapplicablecon-
tracttermsassoonasaccepted.Duringtheearlystagesofcontractperformance,paymentsmaybescheduled
fordeliverablesofsuchtasksoritemsofworkasaworkplanorinceptionreportandachievementofdened
milestones,suchasstamobilized.Oncetheconsultanthasmobilized,thepaymentswouldmostlikelybeless
frequentandthedeliverablestotriggerpaymentwouldbetiedtoperformanceoftheprogrammaticwork,such
asapercentageorstageofcompletion,accomplishmentofdenedmilestonesorotherquantiablemeasuresof
results.
P.B..aoProgresspaymentsbasedoncostsareappropriateonlyinthecaseofcost-reimbursementtypeofcon-
tracts.Progresspaymentsbasedoncostswouldbebasedonthedocumentationsupportingthecostsincurredby
thesupplierorcontractorasworkprogressesunderthecontract.Cost-reimbursementcontractsareextremely
diculttoadminister.Inallcaseswhereprogresspaymentsbasedoncostsareused,theMCAEntitymusten-
surethatallcostsundersuchcontractsareallowableandappropriatelyrecordedandjustiedinaccordancewith
therelevantMCCCostPrinciples.
Final Payment
P.B..aFinalpaymentismadeonlyafterallcontractperformanceiscompletedandaccepted.Retentionsare
notnormallyusedundercontractsforconsultantservices.
Performance Guarantees
P.B..aaPerformanceguaranteesarenotallowedforconsultantsservices.Teirenforcementisoftensubjectto
judgmentcalls,theycanbeeasilyabused,andtheytendtoincreasethecoststotheconsultantindustrywithout
evidentbenets,whichareeventuallypassedontotheMCAEntity.
Interest on Late Payments
P.B..aTecontractshallprovideforthepaymentofinterestatspecicrateswhenpaymentisdelayeddueto
thefaultoftheMCAEntityoritsagentsbeyondthetimeallowedinthecontractforpayment.
Sta Substitutions
P.B..aDuringanassignment,ifsubstitutionisnecessary(forexample,becauseofillhealthorbecauseasta
memberprovestobeunsuitable),theconsultantshallproposeotherstaofatleastthesamelevelofqualica-
tionsforapprovalbytheMCAEntity.
Professional Liability
P.B..aTeconsultantisexpectedtocarryoutitsassignmentwithduediligenceandinaccordancewith
prevailingstandardsoftheprofession.IfthepartieswishtolimittheconsultantsliabilitytotheMCAEntity,
thismustbeprovidedforinthecontract.Inaddition,(a)anysuchlimitationshallbesubjecttoapplicablelaw,
(b)theremustbenosuchlimitationincaseoftheconsultantsgrossnegligenceorwillfulmisconduct,(c)the
consultantsliabilitytotheMCAEntitymayinnocasebelimitedtolessthanamultiplierofthetotalvalueofthe
contracttobeindicatedintheRFPandinthespecialconditionsofthecontract(theamountofsuchlimitation
willdependoneachspeciccase),TeMCAEntityisencouragedtosecureinsuranceforpotentialrisksabove
theselimitsand(d)anysuchlimitationmaydealonlywiththeconsultantsliabilitytowardtheMCAEntityand
notwiththeconsultantsliabilitytowardthirdparties.
Applicable Law and Settlement of Disputes
P.B..a6Tecontractshallincludeprovisionsdealingwiththeapplicablelawandtheforumforthesettlement
ofdisputes.SettlementofdisputesshalltakeplaceinthecountryoftheMCAEntitywiththepossibilityfor
internationalarbitrationinthecaseofforeignconsultantsandinothercaseswherethepartiessoagree.
Part i. Procurement Planning,
lmplementation, and Reporting
P. Procurement Plan
Purpose
Pa..TeMCAEntityshallprepareperiodicprocurementplansforacquiringgoods,worksandconsultantand
non-consultantservicesneededtoimplementtheCompact(each,aProcurement Plan).TeProcurement
PlanisakeyprogramplanningandimplementationdocumentpreparedbytheMCAEntity.Teprimaryfunc-
tionoftheProcurementPlanistoserveasamanagingtoolbywhichtheMCAEntityoverseestheprocurement
activitiesoftheProcurementAgentandbywhichMCCmonitorstheMCAEntitysapproachtoimplementa-
tion.
Requirements and Approvals
Pa..aTeMCAEntityshallensurethatallgoods,works,andconsultantandnon-consultantservicesshallbe
procuredusingtheprocurementmethodapprovedintheProcurementPlan.TeMCAEntityshallperiodically
prepareaProcurementPlanforacquiringgoods,works,andconsultantandnon-consultantservicesneededto
implementtheCompact.Compliance,satisfactorytoMCC,withtheapprovedProcurementPlanshallbeacon-
ditionprecedenttoMCCdisbursementsorpayments.EachProcurementPlanshallbeadoptedbythegoverning
bodyoftheMCAEntityandshallbesubmittedtoMCCforitsapproval.
Period Covered
Pa..EachProcurementPlanwillcoveraspecicminimumperiodoftime,whichshallbeatleastsix(6)
monthsinduration(longerperiodsarestronglyencouragedwhereappropriate),andshallbeupdated,atamini-
mumeverysix(6)months.
Contents and Organization
Pa..TeProcurementPlanshall(a)listtheparticularcontractsforthegoods,works,non-consultantand
consultantservicesrequiredtoimplementtheCompactfortheperiodcoveredinsuchProcurementPlan,
(b)identifytheproposedmethodofprocurementforsuchcontractsasdeterminedaccordingtotherulesset
outintheseGuidelines,and(c)setforththeestimatedvalueforeachcontract.TeProcurementPlanshallbe
organizedasfollows:eachprocurementactionshallbecategorizedundergoods,works,consultantservices,or
non-consultantservices.EachprocurementactionshallthenbelinkedtotheProjectforwhichitisbeingpro-
curedusinganumberingsystemorothersystemofidentication.Forexample,thenumberingsystemFINoo
andFINooamaybeusedforthersttwoprocurementactionsforananceProject.Tereshallbeacolumnfor
procurementactiondescriptions,pricesandprocurementmethods.SeeAttachment6foraSampleProcure-
mentPlan.
Direct Contracting/Sole Source Procurement
Pa..IftheMCAEntitywishestodoadirectcontractingorsole-sourceselection,itmustsubmitajustication
foritatthetimeofsubmissionoftheProcurementPlan.IftheMCAEntitydoesnotsubmitthejustication,
MCCmay,atitsdiscretion,approvetheplanconditionally,subjecttoreceiptofadequatejustication,orMCC
mayrequirethattheprocurementmethodbechangedtocompetitive.
Pa..6Exceptforsolesourceprocurementsofindividualstoserveasevaluationpanelmembers,alldirect
contractingorsole-sourceselectionabove,oooUSDshallbelistedandapprovedintheProcurementPlanwith
ajusticationforthedirectcontractingorsole-sourceselectionrecommendationasaprerequisitebeforeinitiat-
inganyprocurementactivity.Forthoseexceedinga,oooUSDMCCsapprovalofthisjusticationisrequired.
Forsolesourceprocurementsofindividualevaluationpanelmembers,thethresholdrequiringMCCpriorap-
provalisprocurementsvaluedatmorethana,oooUSD.
Amendment
Pa..;IftheMCAEntitydeterminesthatamaterialchangefromtheapprovedProcurementPlanisnecessary
orappropriate,theMCAEntityshallproposeanamendmentandsecureapprovalfromMCCbeforebegin-
ningtheneworchangedprocurementaction.TeMCAEntityshallsubmitanamendedProcurementPlan
whenevernewprocurementsareplanned.Updatesaddingorincreasingthevalueofaparticularprocurementby
a,oooUSDormoreshallbesubmittedtoMCCforitsapproval.AnymaterialchangetotheProcurementPlan
mustalsobeapprovedbythegoverningbodyoftheMCAEntity.Examplesofmaterialchangesareinitiating
procurementactionsthatarenotintheProcurementPlan,changingtheprocurementmethod,signicantly
increasingordecreasingthebudgetofprocurement,orincreasingtheestimateibudgetallocationabovethe
thresholdforthedesignatedmethodofprocurement.IfMCCapprovestheamendment,theMCAEntityshall
complywithanyinstructionscontainedintheapproval,includinganypublicationrequirements(e.g.updateof
theGPN).SeeAttachment6forSampleProcurementPlanAmendmentForm.
Pa..8Ifaparticularprocurementresultsintherecommendationforawardatapricesignicantlyhigherthan
thebudgetedamountintheapprovedProcurementPlan,theMCAEntitywillnotamendtheProcurementPlan,
butwillensurethedocumentationsubmittedforapprovaloftheresultingproposedawardexplicitlyidenties
thedierencebetweenthebudgetedandproposedawardvalues.
P. Procurement Implementation Plan
Purpose and Requirement:
Pa.a.TeprincipalpurposesoftheProcurementImplementationPlan(PIP)aretoidentifytimelinesforkey
milestonesintheprocurementprocessandtoprovidedetailsoftheplannedstrategyforsuccessfulcompletion
ofeachprocurementaction.TeProcurementAgentisrequiredtoprepareaseparatePIPforeachprocurement
intheProcurementPlan.
Contents and Organization
Pa.a.aAsappropriatefortheprocurement,thePIPshallidentifyanddene:(a)theprocurementmethodor
selectionproceduretobeused,(b)thetimelinesforprocurement,includingapprovalsbyMCCandtheMCA
Entity,(c)theadvertisingstrategytobeusedtomaximizecompetition,(d)theplanforconductingpre-bidipro-
posalconferences,(e)thestrategyforappointingmembersofTechnicalEvaluationPanels,(f )themethodology
tobeusedbytheTEPforreviewingbidsorevaluatingproposals,(g)anyauxiliaryrequirementsorprerequisites
toplannedprocurements,aswellaspropersequencing,and(h)thesourceandstatusoftheTermsofReference
orSpecications.SeeAttachment;:Attachment;presentsGuidanceonWritingandReviewingTermsofRefer-
encetotheseGuidelinesforaSamplePIP.
PIP Checklist
Pa.a.TeelementsofaPIPinParagraphPa.a.aofthisPartaarecapturedinthechecklistbelowwhichpresents
theProcurementAgentwithaseriesofquestionstobeanswered.Whilenoteveryquestionwillbeapplicablein
everycase,eachquestionshallbeconsideredinconstructingtheProcurementImplementationPlan:
Elements of the PIP Includes:
ProcurementMethodor
SelectionProcedure
Whatprocurementmethod(suchasCompetitiveBidding)orselection
procedure(suchasQualityandCost-BasedSelection,QualityBased
Selection,FixedBudgetSelection,LeastCostSelection,orSelectionBased
onConsultantsQualications)willbeusedtodeterminethewinner
ProcurementTimelineand
Approvals
Whatarethemajorprocurementmilestones(withdates)requiredtonalize
eachcontractTisshouldincludetimeforreviewandapprovalbythe
MCAEntityandMCC,aslaidoutinAttachment1oftheMCCProgram
ProcurementGuidelinesaspartoftheplanning.
AdvertisingStrategy

Inwhichnewspaperorothermediaoutletswillnoticesbeplacedinorderto
maximizecompetitionconsistentwiththerequirementsoftheprocurement
Whatwillbethetimingofthesenotices
TextofnoticesshouldbeincludedasanannextothisProcurement
ImplementationPlan.
Pre-bidiProposalConference
Isapre-bidiproposalconferencenecessarytoclarifytherequirementand
gathermarketfeedback
Whatisthetimeframeforprovidingresponsestoquestionsandissuesraised
inthepre-bidiproposalconference

TechnicalEvaluationPanel
orTechnicalReviewPanel
SelectionPlan

Whatexpertisewillbesoughtforpanelmembers
Howmanywillberequired
Whatprocedureswillbeundertakentoensurethereisnoconictof
interest
WhatisthetrainingplanforTechnicalEvaluationPanelmembers
AuxiliaryorPrerequisite
ProcurementsiSequencing
Willthisprocurementrequireadditionalprocurementstoacceptiverify
deliverablesorsupervisetheprocessesthathavenotbeenanticipated
previouslyIsthesequencingwithrelatedprocurementsappropriately
structured
P. Procurement Performance Report
Purpose
Pa..TeinformationintheProcurementPerformanceReport(PPR)isusedforimplementationoversight
andispreparedbytheMCAEntity.TeprimaryfunctionoftheProcurementPerformanceReportistoserveas
amanagingtoolbywhichtheMCAEntityoverseestheprocurementactivitiesoftheProcurementAgentand
bywhichMCCmonitorstheMCAEntitysapproachtoimplementationandprogressonthespecicmilestones
achievedintheprocurementprocess.TeobjectiveistoassistMCCinmonitoringtheMCAEntityscompliance
withtheseGuidelines.
Submission Requirements
Pa..aTeMCAEntityshallpreparethePPRusingtheformatinGuidanceonPreparingtheProcurement
PerformanceReport(PPR)postedathttp:iiwww.mcc.goviprocurementimca-guidancepapers.php.TeMCA
EntityshallsubmitthePPRtogetherwiththeregularquarterlyreportingsubmissionsrequiredtobeincludedas
partofeachDisbursementRequest.
P. Contractor Past Performance Reporting System (CPPRS)
Policy
Pa..MCCsContractorPastPerformanceReportingSystem(CPPRS)mandatesregularreportingoncon-
tractorperformance,therebyfacilitatinginformationsharingandstandardizeduseofinformationrelatingto
contractorperformancesothatbetterinformeddecisionscanbemadeacrossMCCpartnercountriesregarding
awardingnewcontractsormaintainingcurrentcontractswithspeciccontractors.Tothatend,theMCAEntity
shall(a)ensurethat,foreachprocurementresultinginatotalcontractawardedthatisvaluedorestimatedto
bevaluedinexcessofoo,oooUSD,apastperformancereportonthecontractorsperformanceissubmittedat
leastannually(quarterlyifoneormoreaspectsofperformanceareproblematic)duringtheperiodofcontract
performance(b)consulttheMCClocaloceintheMCAEntityscountryatspecicstagesintheprocurement
processtoseekrelevantCPPRSinformationonbiddersorpotentialbiddersandusesuchinformationinits
evaluationandreviewpanels,and(c)includeaprovisionwithintheirsolicitationdocument(s),andcontracts,as
thecasemaybe,toensurethatcontractorsareawareoftheCPPRSobligationandhowinformationgatheredas
aresultofcompliancewiththeCPPRSmightbeused.Furtherinformationregardingtheproceduresandforms
tobeusedbytheMCAEntityinperformingthesetasksisprovidedinMCCsGuidanceonReportingandCon-
sideringPastPerformancebyContractorsinMCAEntityProgramProcurementspostedat:httpwww.ncc.
govnccprocurenentppgindex.shtnl.
Applicability
Pa...aTeCPPRSproceduresapplytoanyprocurementresultinginatotalcontractawardedthatisvaluedor
estimatedtobevaluedinexcessofoo,oooUSD.Totalvalueorestimatedtotalvalueisbasedonthebaseperiod
ofperformanceaswellasanyoptionperiodsofperformance.
Part .
Standard Bidding Documents
P..MCChasdevelopedStandardBiddingDocumentsthatarerequiredtobeusedbyallMCAEntitiesinpro-
curingthegoods,works,andservicesneededtoimplementtheirCompacts.TeseSBDsaretheprocurement
standardtobeusedbyallMCAEntities,regardlessofwhethertheMCAEntitieshaveSBDspreviouslyapproved
byMCCfortheiruse.
P..aMCCwillnotifytheMCAEntitieswhentheSBDsforeachtypeofprocurementarepostedonMCCs
websiteathttpwww.ncc.govnccprocurenentsbdindex.shtnl.OnceanySBDispostedonMCCswebsite,
unlessotherwiseagreedbyMCC,theMCAEntitieswillusetheapplicableSBDsforallprocurementsthereafter,
andreviseanyexistingdraftdocumentsthathavenotyetbeensubmittedtoMCCforapprovaltoconformtothe
SBD.
P..EachSBDincludesanIntroductionprovidingspecicguidanceontheuseoftheSBD,includingguid-
anceonwhichsectionsaretobeusedinprocurementdocumentswithoutmodication.Insituationswherea
modicationtothesesectionsmaybenecessarytoaddressuniquesituationsinaparticularcountry(e.g.,tax
arrangements),theMCAEntitymustconsultMCCbeforemakingthemodication.
P..FrenchandSpanishversionsoftheSBDsalsoarepostedontheMCCwebsite.TeseSBDsmayonlybe
usedifMCChaswaivedtheEnglishlanguagerequirementsoftheseGuidelinesasdescribedinPart,Lan-
guage.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 6o
Part .
Review and Approval Requirements
P..Certainimportantprocurementactionsanddecisionsshallbesubjecttopriorrevieworapprovalbylevels
ofauthoritywithintheMCAEntityorbyMCC,asprovidedinAttachmentoftheseGuidelines.Tissystem
ofreviewandapprovalrequirementsisintendedtoensureadequateoversightandmonitoringofMCC-funded
procurementactivities,helpdetecterrorswhentheycanbeeasilycorrectedandotherwiseavoidproblemsin
suchprocurementactivities.
P...BecausethelevelofreviewbytheMCAEntityorMCCneededtoassurethatthesegoalsareachieved
candependondierentfactors,includingtheexperienceoftheMCAEntityinconductingprocurementsgener-
allyoraparticularprocurementapproach,thesusceptibilityoftheprocurementtofraudandcorruption,andthe
degreeofcompletionrisksurroundingtherelatedProject,AttachmentoftheseGuidelinesprovidestwolevels
ofapprovalrequirements.TeapprovalssetforthinScheduleAofAttachmentshallapplytoprocurements
undertakenbytheMCAEntity,unlessMCChasnotiedtheMCAEntityotherwise.IfMCCdetermines,inits
solediscretionthattheapprovalssetforthinScheduleB(ProgramsiCompactsinOversight)ofAttachment
shouldapplytotheMCAEntitysprocurementsitwillnotifytheMCAEntityandthereaftertheapprovalsset
forthinScheduleBshallberequired.TelevelofapprovalrequirementssetforthinScheduleAofAttachment
reectsMCCsgeneralstandardofreview,andwillapplytomostMCAEntities.Tesecondlevel,setforth
inScheduleBofAttachmentandreferredtoastheoversightmodel,isbasedontheideaofsimplifyingthe
reviewprocesswhereitiswarrantedbyfocusingMCCsreviewofdocumentsandprocessesmoreonafterthe
factaction(expost)ratherthanbeforethefact(exante).Tus,forexample,approvalofcontractsawarded,op-
erationsmanuals,materialchangeorders,etc.isnotautomaticallyrequired.MCC,however,reservestheright,
torequiretheincreasedlevelofreviewreectedinScheduleAatanytime.
P....aInparticular,MCCreservestherightto(i)requireadditionalapprovalsattheProjectorprocurement
actionlevelbasedonperceivedriskleveland(ii)requiretheMCAEntitytofollowtheapprovalsrequiredin
ScheduleAofAttachmentiftherearematerialnegativendingsinanyex-postnancialorprocurement
reviewsorauditsoftheMCAEntityorMCCdeterminesthattheMCAEntityoritsProcurementAgentisnot
adheringtotheseGuidelines.Tissystemofreviewandapprovalrequirementsissubjecttomodicationor
exceptionatanytimebyMCC.
P..aTeMCAEntityshallensurethatallprocurementactionsdescribedinAttachmentforgoods,works,
consultantandnon-consultantservicesinfurtheranceoftheCompactandfundedinwholeorinpartbyMCC
fundingshallbesubjecttothepriorapprovaloftheMCAEntitysProcurementDirectororboardofdirectors
6 Piogiam Piocuiement Cuidelines, Octobei a, aoo,
(orequivalentgoverningbody)forthecorrespondingtypeofactionordollaramountthresholdinAttachment,
unlessMCChasgrantedawrittenexceptiontotheapprovalrequirementsetoutinAttachment.
P..NotwithstandingtheapprovalrequirementssetoutinAttachment,MCCshallhavetherighttoreview
andrequirepriorapprovalofanyotherprocurementaction,decisionordocument.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 6a
Part ,. Bid Challenge System
P. Introduction
P..TisPartprovidesguidancetotheMCAEntityondevelopingaBidChallengeSystem(BCS,)andfor
implementinganInterimBidChallengeSystem(IBCS)tobeuseduntiltheBCSisoperational.
P..a.NoprocurementsmaybeissuedunlessanIBCSoranapprovedBCSisinplaceandBiddersandPotential
Biddershavebeengivennoticeofit.TeMCAEntityshallensurethatallbidchallengesareaccepted,reviewed,
andprocessedinaccordancewiththerulesandproceduresoftheMCAEntitysBCSasapprovedbyMCCorthe
IBCS.
P..Denitions.
P.. (a)AppealBodymeanstheindependentpanelthatconsidersappealsofinitialdecisions
madewithrespecttobidchallenges.
P.. (b)Biddermeansanyconsultant,contractororsupplierthatparticipatesinthe
procurementprocesstoprovidegoods,worksorservicesinfurtheranceoftheCompact.
P.. (c)ChallengermeansanyBidderorPotentialBidderwhosubmitsabidchallenge
P.. (d)Filedorlingmeansthereceipt,eitherbymailservicesorotherdelivery
services(faxandemail),ofanydocumentbytheaddresseebeforethecloseofitsbusinessday.
P.. (e)PotentialBiddermeanstheBidderswhowouldhaveparticipatedinthesolicitation
processbutforanallegedmistakeoftheMCAEntity.
P. Bid Challenge System
P.a.Withinsix(6)monthsofCompactsigning,theMCAEntitymustestablishandpublishaBidChallenge
SystemthatprovidesBiddersorPotentialBidderswhobelievetheyhavebeendamagedbyaviolationofthe
procurementprinciplesorproceduresbytheMCAEntitytheabilitytoseekreviewoftheprocurementprocess.
Teparticularorganization,rules,andproceduresoftheBCSarelargelyuptothediscretionoftheMCAEntity.
However,theBCSmustcomplywiththisPartandmustbeapprovedinwritingbyMCC.MCCalsoreserves
therighttoreviewandcommentontheorganizationandoperationoftheBCS.
P.a.aTeBidChallengeSystemmustinclude(a)arstlevelofreviewbytheMCAEntityand(b)anappealto
anindependentAppealBody.
P. First Level of Review by the MCA Entity
Checklist for Necessary Elements of BCS Review Process by MCA Entity
P...AspartoftheBCS,theMCAEntityshalladoptclearandtransparentwrittenprocedureswhichmustbe
followedbytheMCAEntityinitsreviewofbidchallenges.Teproceduresshallincludethefollowingnecessary
elements:
Languagerequirements
Eligibilitytoleabidchallenge
Deadlinetoleabidchallenge
Filingfees
Requiredelementsofbidchallengedocument
Proceduresforacceptingabidchallengeclaim
Suspensionconsiderations
Issuessubjecttoreview
Writtendecisions
Deadlinetoissuewrittendecision
Possibleremedies
ReporttoMCC

Language
P..aTeBCSshallstatethelanguageforthebidchallengeproceedings,includingtheappealprocess.Permit-
tedlanguagesincludeEnglish,Spanish,French,orPortugueseatthediscretionoftheMCAEntity.
Filing Eligibility, Deadline, and Fees
P..BiddersandPotentialBiddersshallbeeligibletoleabidchallenge.Subcontractorsormembersofthe
generalpublicarenoteligibletolebidchallenges.Tebidchallengemustbeledwithinareasonabletime,to
bedeterminedbytheMCAEntity,aftertheChallengerbecameawareof,orshouldhavebecomeawareof,the
circumstancesgivingrisetothebidchallenge.AnylingfeesshallbesetoutintheBCS.
Content of Bid Challenge
P..Tebidchallengemustspecify:(a)theprovisionsoftheseGuidelineswhichallegedlywereviolated,(b)
thejusticationforrelief,and(c)theremedysought.
Suspension of Procurement
P..TeBCSshallprovidethatassoonasthebidchallengehasbeenled,theprocurementwillbesuspended
forthedurationofthebidchallengeprocess unlesstheMCAEntitydeterminesthat(a)thereareurgentorcom-
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 6(
pellingreasonsnottosuspend,(b)theclaimisfrivolous,(c)therewillbenoirreparableharmtotheChallenger,
or(d)thegrantingofthesuspensionwillcausedisproportionateharmtotheMCAEntity.
Issues Subject to Review
P..6TeBCSshalllistwhichactsbytheMCAEntityarenotsubjecttoreview,suchastheselectionofa
methodofprocurement,thechoiceofaselectionprocedure,orthedecisiontorejectalloers.
Written Decision, Deadline, and Remedies
P..;TeMCAEntityshallreviewthebidchallengeandissueawrittendecisiononthebidchallengebya
specieddeadline.Tedecisionshallstatethereasonsforthedecisionandanyremediestobetaken.
P. Appeal Process
Checklist for Necessary Elements of BCS Appeal Process
P..AspartoftheBCS,theMCAEntityshalladoptclearandtransparentwrittenprocedureswhichmustbe
followedbytheAppealBody.Teproceduresshallincludethefollowingnecessaryelements:
IndependenceofAppealBody
AuthorityofAppealBody
QualicationsandtrainingofAppealBody
Languagerequirements
Eligibilitytoleappeal
Deadlinetoleappeal
Locationtoleappeal
Filingfees
Requiredelementsofappealdocument
Procedureforacceptinganappeal
Suspensionconsiderations
Oralhearingoptions
Writtendecision
Deadlinetoissuewrittendecision
Possibleremedies
ReporttoMCC
Independent Appeal Body
P..aTeBCSshallidentifyanindependentAppealBody.TeAppealBodyshallbeimpartial,independent,
havenointerest(throughnancial,family,business,benecialownership,orotherwise)intheoutcomeofthe
procurement,norbeinvolvedinorrelatedtotheprocurementprocess.TeAppealBodycanbeaprocurement
panel,composedofoutsideprocurementexperts,anadministrativebody,oracourt.
P..TeBCSshallprovidethattheAppealBodyhastheauthoritytorequiretheMCAEntitytorevisethe
procurementproceedingstoconformtotheapplicableguidelines,suspendtheprocurementinordertopreserve
thecommercialopportunitypendingtheoutcomeofthereview,terminatetheprocurement,orderanewpro-
curement,orrequiretheMCAEntitytocompensateasuccessfulChallengerforlossordamagesueredtothe
extentofthecostofpreparationofthebidchallenge.Anticipatedprotsmaynotberecovered.
P..TeProcurementAgentortheMCAEntitywillberesponsibleforrecruitment,training,andcertication
oftheAppealBody.TeAppealBodymustbewell-versedinprocurement,buttheMCAEntitymustensurethat
theyaretrainedinMCCprocurementprinciples,practicesandprocedures.Non-governmentalAppealBody
membersmayreceivereasonablecompensationforthisservicebasedonlocalmarketconditions.
P. Report to MCC
P..TeChallengershallhavenorighttoappealtoMCC.TeMCAEntitymustsubmitareportofthe
handlinganddispositionofanybidchallengetoMCC.TereportmustbesubmittedtoMCC(a)ifthereisno
appeal,withindaysafterthedeadlineforlinganappealor(b)ifthereisanappeal,withindaysafterreceipt
ofthedecisionoftheAppealBody.
P. Interim Bid Challenge System
P.6.DuringtheperiodbeforetheBCShasbeenadoptedandbecomesoperational,theMCAEntityshalluse
theIBCSsetforthinthisParagraphP.6..IncontrasttotheBCS,thedesignoftheIBCSisnotuptothediscre-
tionoftheMCAEntity.TeMCAEntitymustfollowthedirectionsbelow.TeIBCSmustbepresentedtoBid-
dersandPotentialBiddersinthesolicitationdocumentspreciselyasfollows(unlessotherwiseagreedbyMCC):
Bid Challenges
Te[InsertnameofMCAEntity]shallentertainabidchallengefromanycontractor,supplier,or
consultantthatclaimstohavesueredorthatmaysuerlossorinjuryduetoabreachofadutybythe
[InsertnameofMCAEntity]intheconductofthisprocurement.Anybidchallengeshallbesubmit-
tedinwriting(maybeinelectronicform)to[InsertnameoftheMCAEntity]withinve()working
daysofwhenthecontractor,supplierorconsultantsubmittingthebidchallengebecameaware,or
shouldhavebecomeaware,ofthecircumstancesgivingrisetothebidchallenge.Unlessthebidchal-
lengeisresolvedbymutualagreement,the[InsertnameofMCAEntity]shall,withinfteen()days
aftersubmissionofthebidchallenge,issueawrittendecisionstatingthereasonsforthedecisionand,
ifthebidchallengeisupheldinwholeorinpart,indicatingthecorrectivemeasuresthataretobe
taken.Tebidchallengeshallbeaddressedto:
Coordinator
[InsertnameofMCAEntity]
Address
Fax
Email
Appeals
Incertaincases,acontractor,supplier,orconsultantmayseekreviewbyMCCafterithasexhausted
allremedieswith[InsertnameoftheMCAEntity].MCCsreviewwillbelimitedtoclaimsthat[Insert
nameofMCAEntity]failedtoentertainitsbidchallenge,orfailedtoissueawrittendecisiononthe
bidchallenge,orclaimsthat[InsertnameoftheMCAEntity]violatedtheproceduressetoutinthe
solicitationdocuments.TeappealtoMCCmustbereceivedinwriting(maybeinelectronicform)
withinve()workingdaysofthedatethecontractor,supplierorconsultantlearnedorshouldhave
learnedofanadversedecisionby[InsertnameoftheMCAEntity]orotherbasisofappealtoMCC.
Teappealshouldbeaddressedto:
MillenniumChallengeCorporation
Attention:VicePresidentforCompactImplementation
(withacopytotheVicePresidentandGeneralCounsel)
8;FifteenthStreet,N.W.
Washington,DCaooo
UnitedStatesofAmerica
Fax:(aoa)a-;oo
Email: VPInplenentation@ncc.gov(VicePresidentforCompactImplementation)
VPGeneralCounsel@ncc.gov(VicePresidentandGeneralCounsel)
6; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Part 6.
Subcontracting
Everycontractorsubcontractforgoods,works,consultant,ornon-consultantserviceswithanypartythat
receivesMCCfundingshallrequirethecontractingpartytofollowthefundamentalprocurementprinciples
promotingtransparency,openness,competitionandfairnesstothemaximumextentpossible,remainingconsis-
tentwiththeobjectivesandrequirementsofthecontractwhensubcontractingforgoods,works,consultantor
non-consultantservices.
Anycontractororsubcontractorplanningtosubcontractforamajoritemofgoods,works,consultant,ornon-
consultantservices(deemedmajorifvaluedinexcessofoo,oooUSD)shallseektheMCAEntityspriorwritten
approvalofthesubcontractor.
Part ;.
Amendments and Waivers
. Amendments
P;..TeseGuidelinesmaybesupersededfromtimetotimebytheissuanceofneweditionsormaybe
amendedfromtimetotimethroughtheissuanceofinterimamendments(InterimAmendments).Suchnew
editionsandInterimAmendmentsshallapplywithpriornoticetotheMCAEntitiesorasMCCandanyMCA
Entitymayotherwiseagree.
P.;..aAnInterimAmendmentisachangetotheseGuidelinesthatoccursbetweeneditionsbecauseithasbeen
determinedtobeofasignicantnature.Amongotherthings,itmayintroduceimprovedprocedures,correct
errorsoromissions,ortemporarilywaiveaspecicprovisionoftheseGuidelines.Ittypicallywillapplytoall
MCAEntities,butifappropriate,mayapplyonlytoasubset.InterimAmendmentswillbeannouncedinan
InterimAmendmentNoticepostedonMCCswebsiteandwilltakeeectonthedatespeciedinthenotice.
Unlessearlierrepealed,eachInterimAmendmentwillremainineectuntilissuanceofthenexteditionofthese
Guidelines(orsuchshorterperiodasmaybespeciedintheInterimAmendmentNotice),atwhichtimethe
InterimAmendmentmaybeincorporatedinthenewedition.MaterialInterimAmendments(asdeterminedby
MCCsProcurementCoordinator)willbeapprovedinaccordancewithMCCsPolicyonCreatingandMaintain-
ingMCCPolicies.AllotherInterimAmendmentswillbeapprovedbyMCCsProcurementCoordinator.
. Waivers
P;.a.Generally.Onacase-by-casebasis,MCCmaygrantwaiversofspecicprovisionsoftheseGuidelines
foraparticularprocurement.Eachwaivershallbeinwritingandshallbeeectiveonlytotheextentspecically
setforthinsuchwriting.UnlessissuedasanInterimAmendment,awaiverdoesnotaectpermanentchange
totheseGuidelines,but,rather,functionsasaone-timeexceptionnecessarytosupportaspecicprocurement
andappliesonlytothespecicMCAEntityrequestingthewaiver.Forexample,awaivermay,ifjustied,beap-
propriatetopermitashortersolicitationperiodortoincreasethedollarvaluethresholdforusingaprocurement
method.
P;.a.aInitiationandRequiredContent.WaiversareinitiatedbytheMCAEntity.Waiverrequestsmustinclude
adescriptionoftheanticipatedimpactthewaiverwouldhaveontheMCAEntitysprocurementactivitiesand
theprogramobjectivessupportedbythoseprocurementactivities.Itmustcontainsucientdetailtoexplainthe
basisoftherequest,theprocedure(s)tobewaived,andanyrecommendedalternativeaction.Terequestmust
alsodetailwhygrantingsuchawaiverisintheinterestofthecountrysCompactprogram,andwhyitwould
6, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
bedetrimentaltotheprogramifthewaiverweredenied.SeeAttachmentoforaSampleGuidelinesWaiver
RequestForm.
P;.a.ReviewandApproval.AllwaiversrequireformalMCCapprovalpriortoimplementation.Waiver
requestsmustbesubmittedbytheMCAEntitytotheMCCResidentCountryDirectorincountrywhowill
forwardittotheappropriateMCCProcurementDirector.TeMCCProcurementDirectorwillmakeadetermi-
nationinaccordancewiththetablebelowonthelevelofapprovalwithinMCCrequiredforthewaiver.Asnoted
inthetable,therequiredapprovallevelwilldependonthenatureofthewaiveranditspotentialimpactonthe
overallMCCprocurementpolicy.WaiverrequestsmaybedeniediftheMCAEntitysinterestsinrequestingthe
waiverdonotoutweightheinterestsofproceedingundertheseGuidelineswithoutvariation.
Nature of Requested Waiver Approver
MinordeviationfromtherequirementsoftheseGuidelines
aectingoneMCAEntity
Director,Procurementforcountryofthe
requestingMCAEntity
MinordeviationfromtherequirementsoftheseGuidelines
potentiallyaectingallMCAEntities(e.g.,correctionofcon-
ictbetweentheseGuidelinesandSBDs)
ProcurementCoordinator
SignicantdeviationaectingoneMCAEntity(e.g.,pilotpro-
gramforuseofinsurancebondsinsteadofbankguarantees)
DeputyVicePresident,CompactImple-
mentation
Agency-widesignicantchangepotentiallyaectingthema-
jorityofMCAEntities
AsdeterminedbyMCCsPolicy on Creat-
ing and Maintaining MCC Policies
WaiversofthisnaturewillresultinanInterimAmendment
P;.a.WaiverTracking.EachMCAEntity,eitheraloneorinconjunctionwithitsProcurementAgent,isre-
sponsibleformaintainingcopiesintheMCAEntitysprocurementlesofallwaiverrequestsandtheassociated
MCCapprovalsirejections.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ;o
Part 8.
Publication of MCC Program
Procurement Guidelines and
Additional lnformation
Publication by MCA Entity
P8..TeMCAEntityshallensurethattheseGuidelines(includinganyamendmentsthereto)arepublishedon
theMCAEntityswebsite(orsuchotherappropriatewebsitedesignatedbytheMCAEntityandapprovedby
MCC).
Additional Information
P8..aInformationaboutMCCanditsprogramscanbefoundatwww.ncc.gov. InformationaboutMCCpro-
gramsinthecountryoftheMCAEntityistobeincludedonthewebsiteestablishedbytheMCAEntity(orsuch
otherappropriatewebsitedesignatedbytheMCAEntityandapprovedbyMCC).
Part ,.
Language
Ocial Language
P,..EnglishistheocialoperatinglanguageofMCC-fundedprocurementdocuments.
Advertising Documents Solicitation, Procurement and Contract Documents
P,..aTelanguagerequirementsforthesedocumentsareinParagraphsP.A.a.andP.A.a.6ofSection.A
andParagraphsP.B..8andP.B..,ofSection.BoftheseGuidelines
Procurement Records and Reports
P,..AnydocumentwhichissubjecttoMCCapprovalaccordingtoAttachment(ApprovalRequirements)of
theseGuidelines,andanyreportsrequiredunderPartaoftheseGuidelines,mustbeinEnglish.
Waivers
P,..MCCmay,initssolediscretionwaivetheEnglish-onlylanguagerequirementsoftheseGuidelinestoper-
mitanyprocurementdocumentation(including,withoutlimitation,procurementibiddingdocuments,technical
evaluationreports,andcontracts),tobeinEnglish,Spanish,French,oracombinationthereof,regardlessof
contractvalue.Tewaiver,ifapproved,wouldcontinueforaperiodofsix(6)months.MCCmayalso,initssole
discretion,renewanywaiverforanadditionalperiodoftimeasdeemednecessarythroughwrittennotication
totheMCAEntity.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ;a
Part o.
Fligibility Verication Procedures
P. Introduction
Po..TisPartprovidesguidanceonperformingeligibilityvericationproceduresduringtheevaluationof
bidsandproposalsforMCAEntityprogramprocurements.
Po..aArmdeclaredineligiblebyTeWorldBankforanyreasons,includinginaccordancewithTeWorld
BankGroupanti-corruptionpolicies,shallbeineligibletobeawardedanMCC-fundedcontractduringthe
periodoftimethatthermissanctionedbyTeWorldBank.
Po..Inaddition,anypersonorentitythathasbeenblacklistedbyTeWorldBankordebarredorsuspended
fromparticipationinprocurementsfundedbytheUnitedStatesFederalGovernmentorotherwiseprohibitedby
applicableUnitedStateslaworexecutiveorderorUnitedStatespoliciesincludingunderanythen-existinganti-
terroristpoliciesshallalsobeineligibletobeawardedanMCC-fundedcontract.
Po..TeMCAEntityshallrecognizeasineligibleanyrmlistedonanyofthefollowing:
Excluded Parties List System (EPLS)-- httpwww.epls.gov
World Bank Debarred List-- httpweb.worldbank.orgexternaldefaultnain?contentMDK=o,oo8,,ne
nuPK=IIo,,opagePK=o,I,88piPK=o,I,88,querycontentMDK=o,oo,ootheSitePK=8,:oo
US Treasury, Ofce of Foreign Assets Control, Specially Designated Nationals List (SDN)- -httpwww.
treas.govocesenforcenentofacsdn
US Department of Commerce, Bureau of Industry and Security, Denied Persons List (DPL)- -httpwww.
bis.doc.govdplDefault.shtn
US Department of Commerce, Bureau of Industry and Security, Te Entity List- -httpwww.bis.doc.gov
EntitiesDefault.htn
US State Department, Directorate of Defense Trade Controls, Debarred Parties List- -httpwww.pnddtc.
state.govconpliancedebar.htnl
US State Department, Terrorist Exclusion List-- httpwww.state.govsctlist
P. Eligibility Verication Procedures
Po.a.TeMCAEntity(orthroughitsProcurementAgent)shallperformthefollowingprocedurestoverifythe
eligibilityofrms,keypersonnelandsubcontractors:
Partial Eligibility Verication
Po.a.aTeMCAEntityshallverifytheeligibilityoftheconsultantorcontractor(partial eligibility verica-
tion)concurrentlywiththeadministrativecompliancereviewatthebeginningofthebidorproposalevaluation
process.Ifaconsultantorcontractorisdeemedeligibleinthisrstreview(i.e.,noadverse,materialrecordshave
beenfound),theMCAEntitywillclearitsbidorproposaltoproceedtothenextstepintheevaluationprocess.
Ifanadverserecord(s)hasihavebeenfoundforoneormorecontractorsorconsultants,theMCAEntitymust
conductadditionalresearchtodeterminewhetherthendingisafalsepositive.Ifitis,theMCAEntitywill
clearthecontractororconsultantforfurtherevaluationandwillnotifyMCC.Ontheotherhand,ifafterfurther
investigationanyrmisfoundonanyofthelistsprovidedabove,thatrmwillbedeemedtobeineligibleandits
proposalorbidwillberejected.
P.Full Eligibility Verication
Po.a.Aftercompletionofthetechnicalrevieworevaluationthepanelmayrecommendaconsultantor
contractorforcontractaward.However,beforethepanelsrecommendationisapproved,theMCAEntitywill
conductafulleligibilityverication,whichconsistsofthesameeligibilityvericationprocessintherstreview
withtwoexceptions:a)onlythehighestscoringconsultantorcontractorwillbereviewed,andb)thereviewwill
alsobeconductedonallkeypersonnelandsubcontractorsincludedinthebidorproposalforthatconsultant
orcontractor.Inthecasewhereanadverserecord(s)isfoundforthecontractor,theconsultant,oranyofitskey
personnelorsubcontractors,additionalresearchmustbeconductedtodeterminewhetherthendingisafalse
positive.Ifallpositiverecordsaredeemedtobefalsepositives,theconsultantandiorcontractorwillbecleared
forawardandMCCshouldbenotied.
Po.a.IntheeventthattheMCAEntityndsanadverserecordforthecontractororconsultantthatisnot
determinedtobeafalsepositive,thebidorproposalwillberejectedandtheconsultantorcontractorwiththe
nexthighestevaluatedbidorproposalwillthenbeexaminedthroughthefulleligibilityvericationprocess.If,
ontheotherhand,anyoftheselectedconsultantsorcontractorskeypersonnelorsubcontractorsarefoundto
beineligibleatthisstage,theMCAEntitywilldeterminewhetheritispossibleunderthecircumstancestoallow
theconsultantorcontractortomakeasubstitution.Tisdeterminationwillbemadeonacasebycasebasisand
willrequireapprovalbyMCCregardlessoftheestimatedvalueoftheproposedcontract.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ;(
Periodic Eligibility Verication
Po.a.Aftercontractaward,MCAEntitiesshallperiodicallyexaminetheeligibilityofconsultantsand
contractorspriortopartialpaymentsaccordingtotherequirementsoftheMCAEntitysscalaccount-
abilityplan.Duringthecourseofthesechecks,ifanyconsultantorcontractorisfoundtobeineligibledue
toitsappearanceonanyoftherequiredlists,theMCAEntityshouldproceedwithcontracttermination
immediately.Ifanyoftheselectedconsultantsorcontractorskeypersonnelorsubcontractorsarefoundto
beineligibleaftercontractaward,theMCAEntitywilldeterminewhetheritispossibleunderthecircum-
stancestoallowtheconsultantorcontractortomakeasubsti tution.Tisdeterminationwillbemadeona
casebycasebasisandwillrequireapprovalbyMCCregardlessofthevalueofthecontract.
Documentation of Eligibility Verication
Po..Documentationoftheprocesstakestwoforms.Twoofthelists,EPLSandWorldBankDebarred,
aresearchabledatabasesthatreturnapositiveornegativesearchresultspageuponsubmissionofaname
tobesearched.Inordertodocumenttheeligibilityofagivencontractororconsultant,theMCAEntity
shouldprintoutthesearchresultspage,whichreads,Yoursearchreturnednoresults,(inthecaseof
EPLS)and,NoMatchingRecordsfound!(inthecaseofWorldBankDebarredList).Tesedocuments
shouldbeprintedandretainedaspartoftheoverallrecordoftheprocurement.Teotherlists,while
updatedonaregularbasis,arestaticallyratherthandynamicallysearchable,i.e.theusermustlookforan
entry.Teyarealsooftenquitelong,makingitadministrativelyburdensometoprintoutandretainthelists
duringeachsearch.Terefore,theforminAttachmenttotheseGuidelinesprovidesaspacefortheMCA
Entitytoinsertthedateonwhicheachoftheselistswaslastupdated.Eachofthewebsitespoststhedate
onthelistsite.
Po..aTeresultsofthepartialeligibilityvericationshouldbedocumentedusingthepartialeligibility
complianceworksheet(seesampleAppendixAinAttachmenttotheseGuidelines).whichisreferencedin
thetechnicalevaluationreportortechnicalreviewreportandincludedasanannextothatreport.
Po..Teresultsofthefulleligibilityvericationshouldbedocumentedusingthefulleligibilitycompli-
anceworksheet(seesampleinAppendixBofAttachment),whichshouldbereferencedinthetechnical
evaluationreportortechnicalreviewreportandincludedasanannextothatreport.
Po..TeMCAEntityoritsagentmustlloutthepartialandfulleligibilitycomplianceworksheetsby
insertingEforeligibleinanyinstancesinwhichthereisNOTanadversematerialrecordthatwouldshow
aconsultantorcontractortobeineligible,andIifanyconsultantorcontractorhasanadversematerial
recordshowingthemtobeineligible.Intheeventthatacontractororconsultanthasnoadversematerial
recordsonanyofthelists,thentheyaredeemedtobeeligible,andthisshouldbeindicatedbyanEinthe
farrightcolumn.
Part .
Choice of Contract Types
P..WhileMCCdoesnotprohibittheuseofreimbursable-costcontracts,reimbursable-costcontractsare
acceptabletoMCConlyinexceptionalcircumstances,suchasconditionsofhighriskorwherecostscannotbe
determinedwithsucientaccuracyinadvance.
P.aReimbursable-costcontractsshallincludeappropriateincentivestolimitcostsandshallreferenceandbe
subjecttotherelevantMCCCostPrinciplesfoundattheMCCwebsite,www.ncc.gov
P.MCCfavorstheuseofxedpricecontractsoverreimbursable-costcontractsforMCCsponsoredprocure-
mentsforanumberofreasons.
P..Temostsignicantreasonforfavoringtheuseofxed-pricecontractsistheauditrequirementfor
reimbursable-costcontracts.Fixed-pricecontractsdonotrequireauditofthecostsbecausethereisaxedprice
fortheworkrequiredand,therefore,noneedtomonitortheindividualcostsassociatedwithcompletingthe
work.Incontrast,auditofindividualcosts,includingoverhead,underreimbursable-costcontractsisaMCCIn-
spectorGeneralmandatethatisnotsubjecttonegotiation.Whiletheauditprovisionsarenotonerousrequire-
mentsforU.S.rmsthathavesignicantcontractexperienceundertheFederalAcquisitionRegulations,small,
internationalorinexperiencedU.S.rmswhowishtoparticipateinMCCfundedprocurementsarelikelytond
themonerous,whichwouldundermineMCCseortstoachievethebroadestpossibleinternationalparticipa-
tioninMCAEntityprocurements.Inaddition,becauseoftheauditrequirement,areimbursable-costcontract
awardmayhavetobeconditionedonasuccessfulpre-contractawardaudittodetermineifthecontractorhasa
nancialmanagementsysteminplacecapableoftrackingspeciedcostsduringcontractperformance.
P...aGiventheambitiousnatureofMCCfundedactivities,thetighttimeframesduringwhichtheymustbe
completed,andtherelativelylimitedcontractmanagementexpertiseoftheMCAEntities,xed-pricecontracts
aremoreappropriate.Tisisduetothefactthatattheinceptionofthesecontractsthereisanoperatingassump-
tionbythepartiestothecontractthatalloftheworkwillbecompletedfortheagreed-uponpriceandwithinthe
speciedtimeframe.Reimbursable-costcontractsdonotoerthesamelevelofassurances.
P...Fixed-pricecontractsfavortheMCAEntityinthecontractualrelationshipbecausemostoftherisk
involvedincompletingtherequirementisassumedbythecontractor.
Inreimbursable-costcontracts,theMCAEntityassumesmoreriskwithinthecontextofthecontractualrela-
tionship.Tereisnormcommitmentbythecontractortodeliverallrequirementswithintheceilingamount
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ;6
andthespeciedtimeframeestablishedinthecontract,thereisonlyapromisenottoexceedtheexpenselimit,
oftenreferredtoasatotalestimatedcost,duringcompletionoftherequiredtasks.
P...Becausereimbursable-costcontractshaveaceilingpriceandnoassumptionorguaranteethatthework
willbecompletedwithintheceilingprice,theyalsoinvolvesignicantlymoreoversightbytheMCAentityand
MCCduringperformance.
P..Forthereasonsstatedabove,MCCstronglyrecommendsthatMCAEntitiesconsiderverycarefullythe
audit,contractmanagement,riskandotherimplicationsofcost-reimbursablecontactsbeforemakingadecision
touseareimbursable-costcontractinsteadofaxed-pricecontract.
;; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Part i.
Property Leasing
Pa..TisPartprovidesguidancetotheMCAEntityinrentingocespaceorotherrealestateforuseunder
Compactfunding.
Pa..aTeMCAEntityisnotrequiredtoincludepropertyleasesintheProcurementPlan.
Pa..Propertyleasingmustbebasedonthefundamentalprocurementprinciplesof(a) opencompetition,
(b) market price,and(c) no conictofinterest.
Pa..TeMCAEntityshallclearlydeneitsrequirementsforthespace,suchasnature,sizeandfunctionality
ofthespacetakingintoaccountitsneedsforemployeeocesorcubicles,meetingrooms,documentstorage,
utilities(suchastelephone,internet,water,electricity,back-upgeneration),thecostofadaptingthespaceforthe
anticipateduses,parking,securityandbuildingmanagement.
Pa..TeMCAentityshallalsoestablishasetofclearselectioncriteria.Twoaspectswhichare distinctively
criticalforrealestatearelocation andthecostofadaptingthebuildingfortheanticipateduses.
Pa..6Afterreachingadecisiononrequirementsandselectioncriteria,theMCAEntityshouldconducta
searchforpossiblespaceandseekproposalsfromseveralsources(fourtovewouldbeideal).Selectionshould
bemadebaseduponthebestoverallvaluethatmeetstherequirementsoftheMCAEntity.
Pa..;TeMCAEntityshouldensurethatthebudgetedamountfortheleaseisnotexceededwithoutapproval
andindicationfromtheFiscalAgentofthesourcefortheadditionalfunds.
Pa..8.Wherethetimeperiodoftheleaseisnegotiable,MCCprefersaxedcommitmentforashorterperiod
(a-years)withoptionyearsthatwouldcompletetheCompactperiod.Prepaymentforafullyearsleaseis
discouragedbaseduponprinciplesofsoundcashmanagement andshouldonlybemadeincircumstanceswhere
thereisnoalternativeoptionorthefullpaymentismorecosteective.
Pa..,MCCwillreviewtheprocessandtermspriortoleasesigning,aswellasanymodicationstothelease
termsmadeaftersigning.Teleaseshallbesignedbyanocialofeachpartywithauthoritytoenterintosuch
agreements.
Pa..oAnysub-leasingmustbeapprovedbytheMCC.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ;8
Part . Records and Post Review
Procurement Records
P..TeMCAEntityshallmaintaincompleteanduniformprocurementrecordsaccordingtoastandard
formatapprovedbyMCC.TeprocurementrecordswillberetainedbytheMCAEntityforatleastve()years
aftertheexpirationorterminationoftheCompactAspartoftheprocurementrecords,theMCAEntityshall
retainalldocumentationwithrespecttoeachcontractduringimplementationoftheCompactwhichshould
include,butisnottobelimitedto,thesignedoriginalofthecontract,theanalysisoftherespectiveproposals,
recommendationsforaward,therecordofMCCapprovals,andtherecordofanybidchallenge.
Post Review
P.a.TeprocurementrecordsaresubjecttoexaminationbyMCC,itsoversightagenciesandbyitsagents
andconsultants.TeMCAEntityshallfurnishsuchdocumentationtoMCCuponrequest.IfMCCdetermines
thatthegoods,worksornon-consultantorconsultantserviceswerenotprocuredinaccordancewiththeagreed
procedures,asreectedintheCompactincludinganySupplementalAgreementsandfurtherdetailedinthe
ProcurementPlanapprovedbyMCC,orthatthecontractitselfisnotconsistentwithsuchprocedures,itmay
declaremisprocurementasestablishedinParagraphP.A..ofSection.AorParagraphP.B..ofSection.B
oftheseGuidelines.MCCshallpromptlyinformtheMCAEntityofthereasonsforsuchdetermination.
;, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment .
Approval Requirements
Schedule A
ScheduleA:Goods,WorksandNon-ConsultantServices
LEVELOFAPPROVAL
(ThresholdsexpressedinUSD)
Procurement
ProcedureorMethod
Decision5
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity6
MCC7
ProcurementPlans All All All
AmendmentstoProcurement
Plans
All MaterialChange8 MaterialChange
8
Pre-qualication Pre-qualicationdocumentsand
advertisingprocedures
All None Above1,000,000USD
Reportwithproposedlistof
entitiesqualied
All Above
500,000USD
Above500,000USD
RecordofBidChallenges All All All
CompetitiveBidding BiddingDocuments All None Above1,000,000USDGoods
Above5,000,000USDWorks
BidReviewPanelMembership All None Above1,000,000USDGoods
BidReviewReportwithProposed
Award
All None
9
Above500,000USD
RejectionofAllBids All None All
FinalContract All None
10
None
10
WithineachProcurementProcedureorMethod,eachseparateDecisionshownisanindependentrequirement,andallrequisiteapprovalsmust
bereceivedforeachsuchDecisionbeforeproceeding,sequentiallyfromtoptobottom,tothenextDecisionrequirement.
6 NotwithstandingthethresholdsfortheGoverningBodyoftheMCAEntitysetforthinthisAttachment,ScheduleA,theGoverningBodymay
exerciseitsauthoritytoreviewanyprocurementdecisionwithpriornoticetotheprincipaloceroftheMCAEntity.
; NotwithstandingthethresholdsfortheMCCsetforthinthisAttachment,ScheduleA,theMCCmayexerciseitsauthoritytoreviewandapprove
anyprocurementdecisionwithpriornoticetotheprincipaloceroftheMCAEntity.
8 Updatesaddingorincreasingthevalueofaparticularprocurementbya,oooUSDormoreshallbesubmittedtotheGoverningBodyoftheMCA
EntityandMCCfortheirapproval.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 8o
LEVELOFAPPROVAL
Procurement
ProcedureorMethod
Decision5
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity6
MCC7
LimitedBidding ShortListReport All None Above100,000USD
BiddingDocuments All None Above1,000,000USDGoods
BidReviewPanelMembership All None Above1,000,000USDGoods
BidReviewReportwithProposed
Award
All None
9
Above1,000,000USDGoods
RejectionofAllBids All None All
10
None
10
Shopping EvaluationReport Over2,000USD None None
RecordofPurchases Weekly Monthly None
DirectContracting ProposedAward Over2,000USD None
9
Above50,000USD
FinalContract Over2,000USD
(Under2,000USD
reviewmonthly
report)
Above50,000USD Above50,000USD
ForceAccount Selectionofusingequipment
ownedbyoremployeesofGov-
ernmentforperformingworks
All All All
ProposedContract All None
10
All
Finalcontract All All All
a
, UnlesstheproposedcontractawardvalueismorethanohigherthantheestimatedawardvalueintheapprovedProcurementPlan.
o Unlesscontracthasasubstantialchangeintermsoflegalclausesortechnicalrequirementsfromthedraftissuedwithbiddingdocuments.
LEVELOFAPPROVAL
Procurement
ProcedureorMethod
Decision5
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity6
MCC7
AllProcurementAc-
tions
ContractModicationsand
ChangeOrders
All
(Exception:Ifap-
provalauthorityhas
beendelegatedto
theFIDICEngineer
underandas
denedinthe
applicablebidding
documents,only
approvalofthe
FIDICEngineershall
berequiredfor
changeswithinthe
FIDICEngineers
delegatedauthor-
ity)
Ifindividualcon-
tractmods/change
orders(i)raisea
contractwhich
didnotrequire
approvalabovean
approvalthreshold,
or(ii)extendthe
originalcontract
termby25%or
morewithoutan
increaseinvalue,
or(iii)increasethe
originalcontract
valueby10%or
more.
Ifindividualorcollectivecontract
mods/changeorders(i)raisethe
contractvalueofacontractthat
didnotrequireapprovalabovean
approvalthreshold,or(ii)extend
theoriginalcontracttermby25%
ormorewithoutanincreasein
contractvalueor(iii)increasethe
originalcontractvalueby10%or
more.Oncethe10%contractmod/
changeorderthresholdsetinclause
(iii)hasbeenreachedforacontract,
anysubsequentcontractmods/
changeordersthatindividuallyor
collectivelyexceed3%oftheoriginal
contractvaluewillalsorequireMCC
approval.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 8a
ScheduleA:ConsultantServices
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
5
MCAEntityDirectorof
Procurement
GoverningBodyof
MCAEntity
6
MCC
7
Plans All MaterialChange
8
MaterialChange
8
QualityandCostBased
Selection(QCBS)
RequestforExpressionofInterest All None None
Membership
All None Above500,000USD
ShortListReport All None Above500,000USD
ProposalDocuments All None Above500,000USD
TechnicalEvaluationReport All None Above500,000USD
Rejectionofallproposals All None Above500,000USD
CombinedEvaluationReport All None
9
Above500,000USD
10
None
10
QualityBasedSelec-
tion(QBS)
Membership
ReviewReportwithProposed
Award
All Above500,000USD Above500,000USD
FinalContract All Above500,000USD Above500,000USD
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
5
MCAEntityDirectorof
Procurement
GoverningBodyof
MCAEntity
6
MCC
7
FixedBudgetSelection
(FBS)
Membership
9
Above500,000USD
10
None
10
Least-CostSelection RequestforExpressionofInterest All None None
Membership
ProposalDocuments All None None
Award
All None
9
Above500,000USD
10
None
10
SelectionBasedon
ConsultantsQualica-
tions
Membership
TechnicalEvalutaionReport All None None
RejectionofAllProposals All None Above500,000USD
Award
All None None
Piogiam Piocuiement Cuidelines, Octobei a, aoo, 8(
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
5
MCAEntityDirectorof
Procurement
GoverningBodyof
MCAEntity
6
MCC
7
Sole-SourceSelection ProposedAward All None Above50,000USD
IndividualConsultants ShortListReport All None Above50,000USD
TechnicalEvaluationPanel All None Above50,000USD
TechnicalEvaluationReport All None None
Award
All None None
AllProcurement
Actions
ChangeOrders
All Ifindividualcontract
mods/changeorders(i)
raiseacontractwhich
didnotrequireapproval
aboveanapproval
threshold,or(ii)extend
theoriginalcontract
termby25%ormore
withoutanincreasein
value,or(iii)increase
theoriginalcontract
valueby10%ormore.
Ifindividualorcollec-
tivecontractmods/
changeorders(i)raise
thecontractvalueof
acontractthatdidnot
requireapprovalabove
anapprovalthreshold,
or(ii)extendthe
originalcontractterm
by25%ormorewithout
anincreaseincontract
valueor(iii)increase
theoriginalcontract
valueby10%ormore.
Oncethe10%contract
mod/changeorder
thresholdsetinclause
(iii)hasbeenreached
foracontract,any
subsequentcontract
mods/changeorders
thatindividuallyor
collectivelyexceed3%
oftheoriginalcontract
valuewillalsorequire
MCCapproval.
Schedule B - Programs/Compacts in Oversight
ScheduleB:Goods,WorksandNon-ConsultantServices
LEVELOFAPPROVAL
Procurement
Procedureor
Method
Decision
11
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity
12
MCC
13
Plans
All MaterialChange
14
MaterialChange
14
Pre-qualication Pre-qualicationdocumentsand
advertisingprocedures
All None None
Reportwithproposedlistof
entitiesqualied
All Above500,000USD None
Competitive
Bidding
BidReviewPanelMembership All None None
BidReviewReportwithPro-
posedAward
All None
15
Above500,000USD
Rejectionofallbids All None Above1,000,000USDGoods
16
None
16
WithineachProcurementProcedureorMethod,eachseparateDecisionshownisanindependentrequirement,andallrequisiteapprovalsmust
bereceivedforeachsuchDecisionbeforeproceeding,sequentiallyfromtoptobottom,tothenextDecisionrequirement.
a NotwithstandingthethresholdssetforthinthisAttachment,ScheduleBoftheseGuidelineswithrespecttotheGoverningBodyoftheMCAEntity,
theGoverningBodymayexerciseitsauthoritytoreviewanyprocurementdecisionwithpriornoticetotheprincipaloceroftheMCAEntity.
NotwithstandingthethresholdssetforthinthisAttachment,ScheduleBoftheseGuidelineswithrespecttotheMCC,theMCCmayexerciseits
authoritytoreviewandapproveanyprocurementdecisionwithpriornoticetotheprincipaloceroftheMCAEntity.
Updatesaddingorincreasingthevalueofaparticularprocurementbya,oooUSDormoreshallbesubmittedtotheGoverningBodyoftheMCA
EntityandMCCfortheirapproval.
UnlesstheproposedcontractawardvalueismorethatohigherthantheestimatedvalueintheapprovedProcurementPlan.
6 Unlesscontrathasasubstantialchangeintermsoflegalclausesortechnicalrequirementsfromthedraftissuedwithbiddingdocuments.
LEVELOFAPPROVAL
Procurement
Procedureor
Method
Decision
11
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity
12
MCC
13
LimitedBidding ShortListReport All None Above1,000,000USDGoods
BidReviewPanelMembership All None None
BidReviewReportwithPro-
posedAward
All None
15
Above1,000,000USD
Goods
Above5,000,000USD
Works
Rejectionofallbids All None All
16
None
16
Shopping EvaluationReport Over2,000USD None None
RecordofPurchases Weekly Monthly None
DirectContract-
ing
ProposedAward Over2,000USD None
15
Above50,000USD
FinalContract Over2,000USD
(Under
2,000USD
reviewmonthly
report)
Above50,000USD Above50,000USD
ForceAccount Selectionofusingequipment
ownedbyoremployeesofGov-
ernmentforperformingworks
All All All
Proposedcontract All None
15
All
Finalcontract All All All
8; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
LEVELOFAPPROVAL
Procurement
Procedureor
Method
Decision
11
MCAEntity
Directorof
Procurement
GoverningBody
ofMCAEntity
12
MCC
13
AllProcurement
Actions
ChangeOrders
All
(Exception:
Ifapproval
authorityhas
beendelegated
totheFIDIC
Engineerunder
andasdened
intheap-
plicablebidding
documents,
onlyapproval
oftheFIDIC
Engineershall
berequired
forchanges
withintheFIDIC
Engineers
delegated
authority)
Ifindividualcontract
mods/changeorders(i)
raiseacontractwhich
didnotrequireapproval
aboveanapproval
threshold,or(ii)extend
theoriginalcontractterm
by25%ormorewithout
anincreaseinvalue,or
(iii)increasetheoriginal
contractvalueby10%or
more.
Ifindividualorcollectivecontract
mods/changeorders(i)raisethe
contractvalueofacontractthat
didnotrequireapprovalabovean
approvalthreshold,or(ii)extendthe
originalcontracttermby25%ormore
withoutanincreaseincontractvalue
or(iii)increasetheoriginalcontract
valueby10%ormore.Oncethe10%
contractmod/changeorderthreshold
setinclause(iii)hasbeenreachedfor
acontract,anysubsequentcontract
mods/changeordersthatindividually
orcollectivelyexceed3%ofthe
originalcontractvaluewillalsorequire
MCCapproval.
Schedule B:ConsultantServices
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
11
MCAEntityDirec-
torofProcurement
GoverningBody
ofMCAEntity
12
MCC
13
AmendmentstoProcurementPlans All MaterialChange
14
MaterialChange
14
QualityandCostBased
Selection(QCBS)
TechnicalEvaluationPanelMembership All None None
15
None
16
None
16
QualityBasedSelection
(QBS)
ReviewReportwithProposedAward All Above
500,000USD
Above500,000USD
FinalContract All Above
500,000USD
Above500,000USD
8, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
11
MCAEntityDirec-
torofProcurement
GoverningBody
ofMCAEntity
12
MCC
13
FixedBudgetSelection
(FBS)
CombinedEvaluationReport All None None
16
None
16
Least-CostSelection RequestforExpressionofInterest All None None
ShortListReport All None None
ReviewReportwithProposedAward All None
15
None
16
None
16
SelectionBasedon
ConsultantsQualica-
tions
ShortListReport All None None
15
None
FinalContract All None None
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ,o
LEVELOFAPPROVAL
ProcurementProce-
dureorMethod
Decision
11
MCAEntityDirec-
torofProcurement
GoverningBody
ofMCAEntity
12
MCC
13
Sole-SourceSelection ProposedAward All None Above50,000USD
IndividualConsultants ShortListReport All None None
TechnicalEvaluationPanel All None None
TechnicalEvaluationReport All None None
15
None
FinalContract All None None
AllProcurementAc-
tions
ContractModicationsandChange
Orders
All Ifindividual
contractmods/
changeorders(i)
raiseacontract
whichdidnot
requireapproval
aboveanapproval
threshold,or
(ii)extendthe
originalcontract
termby25%or
morewithoutan
increaseinvalue,
or(iii)increase
theoriginal
contractvalueby
10%ormore.
Ifindividualorcollective
contractmods/change
orders(i)raisethecontract
valueofacontractthatdid
notrequireapprovalabove
anapprovalthreshold,or
(ii)extendtheoriginalcon-
tracttermby25%ormore
withoutanincreaseincon-
tractvalueor(iii)increase
theoriginalcontractvalue
by10%ormore.Once
the10%contractmod/
changeorderthreshold
setinclause(iii)hasbeen
reachedforacontract,
anysubsequentcontract
mods/changeordersthat
individuallyorcollectively
exceed3%oftheoriginal
contractvaluewillalso
requireMCCapproval.
Attachment i.
Glossary of Terms
Bid Challenge System or BCShasthemeaningsetforthinPart ,.
BOOorBuild Own Operatemeansanancingarrangementinwhichadeveloper()designsandbuildsacom-
pleteProjectorfacility,(a)operatesthefacilityasabusinessforaspeciedperiod.
BOOTorBuild, Own, Operate Transfermeansanancingarrangementinwhichadeveloper()designsand
buildsacompleteProjectorfacility,(a)ownsandoperatesthefacilityasabusinessforaspeciedperiodafter
which()transfersittothegovernmentorpartneratapreviouslyagreed-uponormarket-price.]
BOT orBuild, Operate Transfermeansanancingarrangementinwhichadeveloper()designsandbuildsa
completeProjectorfacility,(a)operatesthefacilityasabusinessforaspeciedperiodafterwhich()transfersit
tothegovernmentorpartneratapreviouslyagreed-uponormarket-price.
Consultants QualicationsorCQShasthemeaningsetforthinSection I.B, Par. ,.,.
Contractors Past Performance Reporting System or CPPRS hasthe meaningsetforthinPart :, Par. ,.I
CompactmeanstheMillenniumChallengeCompactenteredintobetweentheUnitedStatesofAmerica,acting
throughtheMillenniumChallengeCorporation,andthegovernmentofthecountryreceivingassistancefrom
theMillenniumChallengeAccount.
Competitive BiddinghasthemeaningsetforthinSection I.A, Par. I.,.
dgMarkethasthemeaningsetforthinSection I.A, Par :.,.
Direct ContractinghasthemeaningsetforthinSection I.A, Pars. ,.,and,.o.
Disbursement Request meansarequestfordisbursementoftheproceedsoftheCompactfundingmadeinac-
cordancewiththetermsoftheCompactandrelateddocuments.
FCPAhasthemeaningsetforthinSection I.A, Par. I.Io(a) (iii).
Fiscal AgenthasthemeaningsetforthinSection I.A., Par. ,.8.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ,a
Fixed BudgetorFBShasthemeaningsetforthinSection I.B, Par. ,.,.
Fixed Price ContracthasthemeaningsetforthinSection I.B, Par. ,.I.
Force AccounthasthemeaningsetforthinSection I.A, Par.,.,.
General Procurement Notice(GPN)hasthemeaningsetforthinSection I.A, Par. :.,.
GuidelineshasthemeaningsetforthinPart I, Preanble.
Indenite Delivery and Indenite Quantity Contract orIDIQ Contract hasthemeaningsetforthin
SectionI.B, Par. ,.,.
Instructions to Consultants orITChasthemeaningsetforthinSection IB, Par. :.,.
Interim Bid Challenge System orIBCShasthemeaningsetforthinPart ,.
Least-Cost Selection orLCShasthemeaningsetforthinSection I.B, Par. ,.o.
Letter of Invitation orLOIhasthemeaningsetforthinSection I.B, Par. :.,.
Limited Bidding orLBhasthemeaningsetforthinSection IA, Par.,.:.
MCA Entity meanstheentitydesignatedbythegovernmentofthecountryreceivingassistancefromtheMil-
lenniumChallengeAccountasresponsiblefortheoversightandmanagementofimplementationoftheCompact
onbehalfofthegovernment.
MCChasthemeaningsetforthinPart I, Preanble.
MCC Cost Principles meansMCCsCostPrinciplesforCost-ReimbursementContractsunderMCC-Financed
GrantsandCostPrinciplesforGovernmentAliatesInvolvedinMCCCompactImplementation,bothlo-
catedonMCCswebsiteatwww.mcc.gov.
MCC Program Procurement Principles hasthemeaningsetforthinSection I.A, Par. I.:.
Partial eligibility verication hasthemeaningsetforthinPart Io.
Percentage ContracthasthemeaningsetforthinSection I.B, Par. ,.,.
Performance Based Procurement orOutput Based Procurement hasthemeaningsetforthinSection I.A,
Par. ,.II.
Procurement Agent hasthemeaningsetforthinSection I.A, Par. ,.8.
Procurement DirectormeanstheoceroftheMCAEntityresponsiblefortheoverallmanagementofprocure-
mentactivitiesoftheMCAEntity.
Procurement Implementation Plan orPIPhasthemeaningsetforthinPart :, Par. :.I through :.,.
Procurement Performance Report orPPR has themeaningsetforthinPart :, Par. ,.I.
Procurement PlanhasthemeaningsetforthinPart :, Par. I.I.
Project(s)hasthemeaningsetforthinPart I, Preanble.
Quality Based SelectionorQBShasthemeaningsetforthinSection I.B, Pars.,.: through ,.,.
Quality Cost Based SelectionorQCBShasthemeaningsetforthinSection I.B, Para. I.,.
Request for Expression of InterestorREOIhasthemeaningsetforthinSection I.B, Par. :.o.
Request for ProposalsorRFPhasthemeaningsetforthinSection I.B, Par. :.,.
ShoppinghasthemeaningsetforthinSection I.A, Par. ,.,.
Sole Source SelectionorSSShasthemeaningsetforthinSection I.B, Pars. ,.I, through ,.I8.
Specic Procurement Notice(SPN)hasthemeaningsetforthinSection I.A, Par. :.8.
Standard Bidding Documents or SBDshasthemeaningsetforthinSection I.A, Par. :.I:.
Supplemental Agreement meansanyagreementexecutedinconnectionwiththeCompact.
Technical evaluation panel orTEPhasthemeaningsetforthinSection I.B, Par. :..
Terms of ReferenceorTORhasthemeaningsetforthinSection I.B, Par. :.:.
Time-Based ContracthasthemeaningsetforthinSection I.B, Par. ,.:.
Two-Stage BiddinghasthemeaningsetforthinSection I.A, Par. :.o.
UNDB OnlinehasthemeaningsetforthinSection I.A, Par. :.,.
USDmeansUnitedStatesdollars.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ,(
Attachment .
Director of Procurement - Model
Position Description
Major Responsibilities and Duties
TeProcurementDirectorworksunderthesupervisionoftheChiefExecutiveOcer.
TeProcurementDirectorensuresthatallprocurementtransactionsareimplementedinaccordancewiththese
Guidelines,consolidatesandkeepsrecordsofallprocurementactivity,andreportsontheprogressofthisactiv-
ity.
TeProcurementDirectorisresponsibleformanagingtheowofprocurementactivitytoimplementthe
CompactbytheMCAEntity.TeProcurementDirectorservesastheprimaryliaisonbetweentheProcurement
Agent(s),MCCandoutsideentitiesfromavarietyofspecializedsectorsonallprocurementactivitiesandfacili-
tatesthesmoothinterplaybetweenandamongallelementsoftheprocurementprocess.Akeyaspectofthis
responsibilityinvolvessynchronizingthesubstanceandprocesselementsofprocurementactivities.
Inaddition,theProcurementDirector:
CoordinatesthefunctionsoftheMCAEntityandtheProcurementAgent(s)inimplementingtheCompact
program,includingidentifyinginitialprocurementneedsandorganizingprocurementoperations.
Reviewsthesolicitationdocuments,ProcurementPlans,CPPRsandallotherrequireddocumentsprepared
bytheProcurementAgent(s)andrecommendanynecessarychangesorimprovementstoensuretheycom-
plywiththeMCCProgramProcurementPrinciplesandtheseGuidelinesandthattheymeettheprocure-
mentneedsoftheMCAEntity.
ReviewstheMCAEntitysprocurementoperationsmanualpreparedbytheProcurementAgent(s)and
recommendsanynecessarychangesorimprovementstoensureitrespondstotheoperationalrealityofthe
MCAEntity.
EnsuresthattheProcurementAgent(s)actconsistentlywiththeapprovedprocurementoperationsmanual.
MonitorscompliancebytheProcurementAgent(s)withalltherulesandproceduresoftheseGuidelines.
SupportsmanagementandthechiefexecutiveoceroftheMCAEntityinmaintainingtheintegrityand
condentialityoftheprocurementprocess.
FacilitatesthepreparationandsubmissiontotheProcurementAgent(s)ofnecessaryprocurementdocu-
mentsbythetechnicalstaoftheMCAEntity.
ReviewsreportssubmittedbytheProcurementAgent(s).
ManagesthemembersoftheMCAEntityprocurementteam.
ApprovesprocurementdecisionsinaccordancewithAttachmenttotheseGuidelines.
PerformsothertasksandresponsibilitiesasrequestedbythechiefexecutiveoceroftheMCAEntity.
Required Qualications and Experience
Universitydegreeinbusinessadministration,publicadministration,nance,law,internationaldevelopment
orrelatedeld
Approximately;to8yearsexperiencedevelopingandmanagingprocurementsinsystemsapplyinginterna-
tionalstandards
Abilitytocoordinatewithnumerousdistinctentitiesinoverseeingandreportingonprocurementactivities
Familiarityandiorexperiencewithinternationaldonorinstitutionsprocurementguidelinesandprocedures,
particularlythoseoftheWorldBankandiorUSGovernment.
StrongcomputerskillswithMicrosoftOceapplications(Word,Excel,PowerPoint)
OralandwrittenuencyinEnglish(U.S.GovernmentLevel)
Demonstratedabilitytoworkcollaborativelywithdomesticandinternationalstakeholdersandcounterparts
Superiororganizationalandtimemanagementskills
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ,6
Attachment .
Fligibility Verication Template
DownloadMSExceltemplatefrom:httpwww.ncc.govnccprocurenentppgindex.shtnl
,; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment ,.
Sample Technical Fvaluation Panel
Condentiality Agreement
NOTE:Condentialinformationshallnotbedisclosedtoanymemberoftheevaluationpaneloranyoneseeing
orreviewingthereportsfromthepaneluntiltheyagreetoexecuteandbeboundbythetermsofaCondential-
ityAgreement.
EVALUATIONPANEL
CONFIDENTIALITYAGREEMENT
MCAENTITY: ____________________
PROJECTNAME: ____________________
PROCUREMENTNO.: ____________________
Iherebyarm,underpenaltyoflawthatIwillcomplywiththefollowing:
Iagreetoparticipateintheevaluationoftheabove-mentionedprocurement.IconrmthatIhavetakentheap-
propriatestepstofamiliarizemyselfwiththeinformationavailabletodateconcerningthisprocurement.Ishall
executemyresponsibilitiesonthisevaluationcommitteehonestlyandfairly.
Idonothaveanyaliationwithanyofthepartiessubmittingaproposalforthisprocurement.Tothebestofmy
knowledgeandbelief,neitherInormyspouse,dependentchild,generalpartner,oranyorganizationwhichIam
servingasanocer,director,trustee,generalpartner,oremployee,oranypersonororganizationwithwhom
Iamnegotiatingorhaveanarrangementconcerningprospectiveemployment,hasanancialorotheroutside
interestthatcanbeaectedbyanydecisionImakeonthisprocurement.
Tothebestofmyknowledge,myspouse,dependentchild,generalpartner,oranyorganizationwhichIam
serving(orhaveservedwithintwelvemonthsfromthedateofthisdeclaration)asanocer,director,trustee,
generalpartner,oremployee,oranypersonororganizationwithwhomIamnegotiatingorhaveanarrangement
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ,8
concerningprospectiveemploymentarenotpartiestoanddonotrepresentapartywhohasaninterestinthe
matter.
Ialsoacknowledgemyresponsibilitytodisclosetheacquisitionofanynancialorotheroutsideinterestasde-
scribedabovethatwouldbeaectedbyanyactionImaytakeonthisprocurementandtodiscloseanynancial
orotheroutsideinterestI,oranyonenotedabove,hasinanyorganizationthatiscompetingforawardofthis
procurement.
Iagreetoholdintrustandcondenceanyinformationordocuments(condentialinformation)disclosedto
meordiscoveredbymeorpreparedbymeinthecourseoforasaresultoftheevaluationofthisprocurement
andagreethatitshallbeusedonlyforthepurposesoftheevaluationofthisprocurementandshallnotbedis-
closedtoanythirdparty.Ialsoagreenottoretaincopiesofanywritteninformationorprototypessuppliedto
meorcreatedbyme.
NAME
SIGNED
DATE
,, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment 6. Sample Procurement
Plan and Amendment Form
SAMPLE PROCUREMENT PLAN
ID Description Budgeted Amount (In USD)
Procurement
Procedure
GRANDTOTAL GRANDTOTAL
1 Procurement of Goods CATEGORY TOTAL
1.2 IT EQUIPMENT Sub-Total
Project A
DesktopComputers,Laptops,Software,andPeripherals Budget CB
1.3 OFFICE EQUIPMENT, SUPPLIES AND FURNITURE Sub-Total
Program Administration
OfceFurniture Budget S
2
Procurement of Field Activities, Designs, Feasibility and Environmental
Studies, and Consultants
CATEGORY TOTAL
2.1 FIRMS Sub-Total
Project A
SupervisionofRuralandurbanzonesCadastralSurvey Budget QCBS
RadioandTelevisionCampaignforCommunicationStrategy Budget CQS
2.2 INDIVIDUALS Sub-Total
Project A
Capacity Building
DesignofToRforConstructionofmulti-ofcecomplex Budget CQS
3 Procurement of works/construction CATEGORY TOTAL
Project B Sub-Total
InfrastructureforDemonstrationFarms Budget CB
Program Administration Sub-Total
OfceBuilding,Conditioning/Remodeling Budget S
4 Non-Consultant Services CATEGORY TOTAL
Project A Sub-Total
DemarcationandSignInstallationofProtectedAreas Budget S
Project B Sub-Total
NonConsultantServicesforPlantingTrueForestPlantations Budget CB

CB Competitivebidding
CQS Selectionbasedonconsultantqualication
QCBS Quality&Costbasedselection
S Shopping
SSS Single-SourceSelection
Piogiam Piocuiement Cuidelines, Octobei a, aoo, oo
SAMPLE AMENDMENT FORM
Amendment to Procurement Plan Request Form*
Procurement # and
Description
Amendment Request Estimated Total Change
(USD)
Procurementidentication
number(ifnecessary)and
description
Descriptionofwhatisbeingrequestedintermsofchangeto
theProcurementPlan(i.e.,additionalprocurement,changein
procurementmethod,changeinestimatedvalue,etc).
Value,inUSD,ofprocurement
changebeingrequested.
Usedtodetermineoverall,
estimatedcostimpactof
requestedamendment
Justication
1)FirstjusticationforamendingtheProcurementPlan

2)SecondjusticationforamendingtheProcurementPlan(ifapplicable)
Tis forn nust be subnitted as an attachnent to the anended Procurenent Plan.
o Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment ;.
Guidance on Writing and
Reviewing Terms of Reference
TisattachmentprovidesguidancetotheMCAEntityondevelopingTermsofReference(TOR)inaccordance
withtheParagraphP.B.a.aofSection.BoftheseGuidelines.
Purpose and Function of the Terms of Reference
IntheTOR,theMCAEntitydescribesindetailtheconsultantservicesitneedstopurchase.TeTORisthe
documentthatprovidesthesubstancetotheRequestforProposals(RFP).Tefollowingpointsshouldbecon-
sideredwhendevelopingaTOR:
State the objective or purpose of the procurement:
DescribeveryclearlywhatservicestheMCAEntitywishestoprocureandforwhatpurpose.
ProvideasmuchinformationaspossibletodescribetheMCAEntitysvisionoftheassignment.
ConsiderthattheTORisgoingtobereadbyoutsiderswhohavelittleornoknowledgeoftheProjectbut
areexpectedtoproposeamethodologyandpriceforundertakingtheassignmentbasedontheinformation
providedintheTOR.
DonotbetooprescriptiveintheTOR(includingusingrestraintindeningthestangrequirements)in
ordertoallowandencourageconsultantstoproposetheirownmethodologiesforperformingtheservices
andprovidingthedeliverables.
Provide a clear description of the background and context:
EnsurethatthecontextoftheTORisdescribedsothataconsultantcaneasilyunderstandit.Emphasize
howthiscontracttsintotheoverallCompactprogram,whytheproposedassignmentisimportantforthe
Project.
DescribethehistoryoftheProjectandthetasksalreadycompleted,ifapplicable.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, oa
Describehowworkcarriedoutunderthiscontractislinkedandsequencedwithworkdonebyothercon-
sultants.Beexplicitaboutrequiredcoordinationwithotherconsultants,contractorsorgovernmentinstitu-
tions.
IdentifyotherdonorsthatareinvolvedintheProjectorcouldhaveanimpactontheassignment.
Include,whenappropriate,anannotatedlistoftheinstitutionsthattheconsultantwillbesupportingorin-
terfacingwith,sothattheconsultantcanclearlyunderstandtheinteractionsandthefullProject.Explainthe
relationshipswithinandamongtheseinstitutionsforpurposesofdeliveryoftheservicesbeingsupported.
Donotassumethattheconsultantwillintuitivelyknoworunderstandthis.
Includeanypubliclyavailablestudiesorreferences(MCCguidancepapers,Compactdocuments,etc.)rel-
evanttotheworktobedone.Providealistofspecialstudiesanddocumentsthatwillbemadeavailableto
theselectedconsultant.
Iftheprocurementincludesassociatedgoods,includeadescriptionofthegoodsandtheperformancestan-
dardsorfunctionstobeachievedthroughthepurchaseofthegoods.Besurethatthetechnicalspecica-
tionsaccuratelyreecttheminimumrequirementsanddonotfavoracertainbrandorunfairlydiscriminate
againstcertainbrands.
Clearly describe deliverables and required resources:
Ensurethattasksareclearlydescribedandnumbered,anddeliverablesareexplicitlystated.Ensurethatthe
proposeddeliverablesarewithintheapprovedworkplanandthescopeoftheactivitiesdescribedinthe
Compact.
Includeatimeperiodfortheperformanceoftheserviceandananticipatedtimelineforsubmissionof
deliverablesbytheconsultant.WherecommentsoninterimdeliverablesaretobeprovidedbytheMCA
EntityordecisionsaretobetakenbytheMCAEntityaectingfurtherworkoftheconsultant,indicatesuch
requirementsandthetimeframeforMCAEntityinputs.
Bepreciseindeningthosedeliverablesforwhichpreciseparametersarerequired(e.g.,specialsurveys,
mapping).
Include,ifappropriate,aclearestimateoftheamountofstatime,statedinworkdaysorwork-months,
neededtoperformtheneededservices.
Include,whenappropriate,therequiredstaneededandkeypersonnelpositions.
Include,whenappropriate,therequiredstaqualications,especiallyforkeypersonnel.
Describethelanguagerequirementsduringcontractperformancesuchasthelanguageneedsforstangthe
workingenvironment,givingoralpresentations,anddeliveringinterimandnalreports.
Describetypesandnumbersofreportstobeproduced,specialformats,andsoftwarerequirements(e.g.,
Excelspreadsheets,AutoCADDdrawings).
DenewhattheMCAEntitywillprovidetosupporttheassignment,for exanple,counterparts,ocespace,
phone,Internetconnection,andprinting.
Special guidance for procurement of Monitoring and Evaluation services:
Clearlyidentifyanydatacollectionrequirements:whatdataareneeded,howfrequentlyitshouldbecol-
lected,whichunitsanddenitionsaretobeusedforindicators,andwhatmeasuresormechanismsshould
beemployedtosafeguardqualityofdata.
Describereportingformat(suchaselectronicletype,softwaretobeused,hardcopy,etc.)sothatthose
involvedwithmonitoringandevaluationcanaggregatereportinganddatacollectedacrossimplementers.
Describe,whererelevant,theimpactevaluationmethodologytobeusedandanyaccommodationsthat
wouldbeneededinordertoconducttheimpactevaluation,suchasthephasingofservicedeliveryroll-out
ortheintakeofbeneciaries.
Editing:
Spellcheckandproofread.
Whenrequired,ensureadequatetranslationofdocumentsintoEnglish.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, o(
Attachment 8.
Sample General Procurement
Notice
GENERAL PROCUREMENT NOTICE
Government of [Country]
Millennium Challenge Account-[Country]
TeGovernmentofthe[Country]hasreceived
grantfundingof[DollarAmount]fromtheMillenniumChal-
lengeCorporation(MCC)oftheUnitedStatesGovernmenttoenabletheGovernmentof[Country]toimple-
mentthisprogramandachievetheobjectivesoftheMCCGrant(Compact),anditintendstoapplypartsofthe
proceedsofthefundstopaymentsforContractsforGoods,WorksandServices.
Teprocurementprogramforthenextsixmonthswillincludethefollowing:
Procurements for [Specify] Half of [Year]
EstimatedValue[DollarAmount]
Procurement of Goods intheLandTenure,Finance,AgriculturalBusinessInvestmentProject(ABIP)and
generalMCA-[Country]Administrationsectorstoinclude:
IThardware,datatransmissionsystemsandsoftware
Imageryforcadastralmapping
OceFurnitureandgeneralocesupplies
Motorbikes
Otherassortedvehicles
Equippingcreditbureaus,riskanalysisandratingagencies
Procurement of Works intheLandTenure,Finance,AgriculturalBusinessInvestmentProject(ABIP)and
generalMCA-[Country]Administrationsectorstoinclude:
Rehabilitationofexistingocebuildingstructures
Sitelayoutandconstructionofnewadministrativebuildingsofvarioussizes
Archivalsystem
Installationofsatellitedatatransmissionsystem.
Procurement of Services (to include Consultant Services) intheLandTenure,Finance,Monitoringand
Evaluation,andAgriculturalBusinessInvestmentProject(ABIP)sectorstoinclude:
Servicestomodernizeanddecentralizelandmanagement,includingcreationofrelevantinforma-
tionsystemsandsoftware.
Agriculturaltrainingprogramonraisingandmaintainingdairylivestock.
Technicalassistanceorganizingstrategiccommunicationandinformationcampaignsforpromotion
ofobjectivesinallsectors.
Shortandlongtermlegalconsulting.
ShorttermfeasibilitystudyofNationalLandTenureFunds.
Technicalstudiesonlandmanagementoperationsandfacilities.
Technicalassistanceto[Countrys]nancialinstitutions.
Consultantsforgeneralnancesectorcapacitybuilding.
Architecturaldesign,sitedesignandenvironmentalassessmentwork.
Technicalassistanceforagriculturalbusinessplandevelopment.
Agriculturalmarket,valuechainandinvestmentstudies.
Capacitybuildinginpreparationfor,andtechnicalassistanceinimplementing,Monitoringand
Evaluationdatacollectionandsurveywork.
TrainingonMonitoringandEvaluationproceduresmanual.
DesignandimplementationofMonitoringandEvaluationdatabasesoftwareandMIS.
Organizationofagriculturalfairsandtradeshows.
Technicalassistancein[localcrop]production.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, o6
Contracts for Goods, Works and Services nanced under the program will be implemented according to the
principles,rulesandproceduressetoutintheMCCProgramProcurementGuidelineswhichcanbefoundatthe
MCAEntityswebsite.
TeProcurementisopentoallbiddersfromeligiblesourcecountriesasdenedintheMCCProgramProcure-
mentGuidelines.
Specicprocurementnoticesforcontractstobetenderedunderthecompetitivebiddingproceduresandfor
consultantcontractswillbeannounced,astheybecomeavailable,ontheMCAEntityswebsite,UnitedNations
DevelopmentBusiness(UNDB:http:iiwww.devbusiness.comi),DevelopmentGatewayMarket(dgMarket:
http:iiwww.dgmarket.comi),inlocalnewspapers,andothermediaoutletsasappropriate.
Interestedeligiblecontractorsandconsultantswhowishtobeincludedonthemailinglisttoreceiveacopyof
advertisements,orthoserequiringadditionalinformation,shouldcontact:
Fiscal&ProcurementAgent
cioMCA-[Country]
Address
Telephone
Email
o; Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment ,. Sample Specic
Procurement Notice (SPN)
SPECIFIC PROCUREMENT NOTICE (SPN)
TEMPLATE
Procurement Name:__________________________________________________
Project Name: _______________________________________________________
TypeofNotice:RequestForProposals(RFP):
General Information
Country
CityiLocality:
NoticeiContractNumber:
PublicationDate:
Deadline:
FundingAgency:MillenniumChallengeAccount(MCA)
Buyer: MillenniumChallengeAccount-___________
Eligibility of Bidders:
-
-
Contact Information
Address:
City:
Country:
Telephone:
Email:
Piogiam Piocuiement Cuidelines, Octobei a, aoo, o8
TypeofProcurement:(GoodsiWorksiServices)
ProcurementCode:(fromdgMarket)
Main Text:
[BriefsummaryoftheCompact]
[-6paragraphdescriptionofthespecicprocurement]
PleaseseethefollowingwebsitesforthecompleteRequestforConsultantQualications(RFQ)includingthe
LetterofInvitation(LOI)andTermsofReference(TOR):
http:iimcc.dgmarket.com,http:iiwww.devbusiness.com.
Alternatively,pleasecontact:__[insert]_______toreceiveacopyofthecompleteRFPincludingtheLetterof
InvitationandtheTOR.
ConsultantsubmissionsshouldmakereferencetoRFPandmustbereceivednolaterthan
____[insert]________by_[time]__localtimeatthefollowingaddress:
o, Piogiam Piocuiement Cuidelines, Octobei a, aoo,
Attachment o. Sample MCC
Program Procurement Guidelines
Waiver Request Form

MCC Program Procurement Guidelines Waiver Request Form
Guidelines Provision Waiver Request
MCCPPGProvisionPart,Section
andParagraphNumbers
DescriptionoftheprovisionoftheseGuidelinesforwhichwaiveris
requested.Includeboththetextoftheprovisionasitappearsinthese
Guidelinesandthespecicwaiverbeingrequested.
Justication for waiving the Guidelines provision(s)
IncludedescriptionoftheanticipatedimpactthewaiverwouldhaveontheMCAEntitysprocurement
activities.Explainthebasisoftherequest,theprocedure(s)tobewaived,andanyrecommendedalternative
action.DetailwhythewaiverisintheinterestofthecountrysCompactprogram,andwhyitwouldbe
detrimentaltotheprogramifthewaiverweredenied.
Approval
________________________________________
Signature
________________________________________ __________________
Name, Title Date
Attachment . Guidance on the
TisattachmentprovidesguidancetotheMCAEntityonconductingtheprice-reasonablenessanalysisrequired
byParagraphP.A..8ofSection.AandParagraphP.B..aofSection.BoftheseGuidelines.
Responsibility and Documentation
TeProcurementAgent,withthehelpoftheMCAEntity,isresponsibleforconductingtheanalysis.Te
analysisshouldbeconductedforthepotentialwinnerofthecontractduringthenancialevaluationofthebidsi
proposals.Teprice-reasonablenessanalysisshouldbedocumentedintherecordoftheprocurement(including
theTechnicalEvaluationReportifapplicable)andnotedintheContractorPastPerformanceReport(CPPR).
Denition and Purpose
Teprice-reasonablenessanalysisisareviewofthepricesproposedbyacontractor,supplierorconsultantto
ensurethatthepricesoeredinthebidsorproposalsarefairtobothpartiesconsideringtheeortrequiredto
completethetask,thequalityofthebidorproposal,andthecomparabilityofthepricesonsimilarprojectsin
localandinternationalmarkets.Tepricesarereviewedtoensurethatthequotedpricesoftheselectedcontrac-
tor,supplierorconsultantareneitherunreasonablyhigh(whichcouldhappen,forexample,whenthereisapoor
responsetotheInvitationforBidsorRequestforProposals,orcollusion)norunreasonablylow(whichcould
happen,forexample,whenthereisseverepricecompetition,orpoorlyunderstooddescriptionoftheobjective
oftheprocurement).TisanalysisprovidesasecondarycheckbytheMCAEntitythattheMCCfundswillbe
utilizedinacosteectivemanner,andthattheselectedcontractor,supplierorconsultantwillbeabletomeet
therequirementsoftheprocurementassetoutinthesolicitationdocuments.
Aprice-reasonablenessanalysisisdierentfromacostanalysis.Temajordierenceisthataprice-reason-
ablenessanalysislooksatthetotalpricewhileacostanalysisexaminestheindividualcostelementsofthistotal
price.DependingupontheProject,thecostelementsmayvarybutgenerallyincludelaborrates,materialcosts,
overheadorindirectrates,acostofmoneyfactor,generalandadministrativeexpenses,andaprotorfee.Price-
reasonablenessanalysisisusuallyconductedforxed-pricecontracts.Costanalysisisusuallyconductedfor
reimbursable-costcontracts.
Methods for Conducting a Price-Reasonableness Analysis
Tereareseveralwaysaprice-reasonablenessanalysismaybeconductedwithoutexaminingtheindividual
componentsofthetotalprice.
(a) Competitive Prices: Inanopencompetitivebiddingprocesswherepriceisanevaluationfactorand
severalacceptableandqualiedbidsorproposalsarereceived,itcanbesafelyassumedthattheprices
arereasonableasdeterminedbythemarketconditions,butonlyifthereareminimaldiscrepancies
amongtheoeredprices.Iftherearesignicantdiscrepanciesbetweenanytwobidsorproposals,the
MCAEntityshouldensurethatthedescriptionoftheprocurementisclearenoughnottobemisunder-
stood,andthattherearenocalculationerrors.
(b) Historical Prices:Ifthepricesoeredarecomparabletothepricesoeredinthepastforsimilar
contractseitherbythesameorothercontractors,suppliersorconsultantstotheMCAEntity,toother
largegovernmentbuyers,ortoadonoragencyinthecountryoftheProject,thenthepricescanbe
assumedtobereasonable.Whencomparingcurrentpriceswithhistoricalprices,inationandareason-
ablemarginforincreasedprotsshouldbetakenintoaccount.
(c) Catalogue Prices:Tismethodissuitablewhenpurchasingo-the-shelfcommercialgoods,where
thesupplierislikelytohaveacatalogue,andthesupplieriswillingtoprovideacurrent,datedpagefrom
thecataloguethatliststhepriceoftheitembeingprocuredandanydiscountsthatmaybeavailableto
largebuyers.Inthiscase,thesuppliermayberequestedtoprovideareferenceofanotherlargebuyer,
whetherinsidethecountryoftheProjectoroutside,whocanverifythepricesthatwerepaidbythat
buyertothissupplier.
(d) Published Prices:Somecommerciallytradedcommoditiessuchasgrains,petrol,orcopperhave
internationalornationalpricesthatarepublishedinpopularpress.Ifthepricesoeredarethesameor
lowerthanthesepublishedprices,thenitcanbeassumedthatthepricesarereasonable.
(e) Independent Estimate or Planned Budget:Ifanindependentestimateorplannedbudgethasbeen
preparedbyMCCortheMCA-Entity,thisindependentestimateorplannedbudgetmaybeusedasan
elementforpricereasonablenessifconsideredvalidandappropriateatthetimeofaward.
(f) Comparison with Prices of a Similar Item:Intheprocurementofgoods,ifasuppliercandemon-
stratethepricesofasimilaritem,andjustifyitspricedierencebasedonadditionalordierentfeatures,
theMCAEntitycanaccepttheproposedpricesbasedonthesetwo(a)factors.Tedierencesbetween
thesupplierspriceandthepriceofacompetitorshouldbedetailedandjustied,andthereferenced
pricesshouldbeavailablefromveriableindependentsources(notonlyfromthesupplieritself ).
Attachment i. Financial
Fligibility Criteria for Pre and
Post Qualication of Large Works
Contractors
Introduction
TeselectionofnancialeligibilitycriteriaforMillenniumChallengeAccount(MCA)workscontractsfacilitates
aqualitycontrolprocesstoassurebetterselectionofconstructioncontractors.Tekeychallengeistondand
appointcontractorsthatarelikelytobeabletocompletetheirworkswithinthetimeandbudgetconstraintsof
theCompact.Tekeycriteriathatemployersarelookingtojudgeare:Aretheysolvent,andlikelytoremainso
AretheybusybutnottoobusyAretheyabletofocusonthemanagementoftheirworksandnotbedistracted
byothernancialworries
TeMCCStandardBiddingDocuments(SBD)donotincludestandardsfornancialmetricsinthepre-orpost-
qualicationprocessesforMCAcontracts.TismemoprovidesadditionalguidancetoMCAsonthenancial
qualicationspresentedbycontractorsinvolvinglargeworks.
TeSBDforpre-qualicationofworkscontractorscurrentlyrequirescontractorstosubmitthefollowingnan-
cialinformation:
CurrentRatio
DebttoEquityRatio
ConstructionTurnover
FreeCashFlow
ValueofComparableContracts
OthernancialratiosorindicatorsmaybeappropriateinordertoallowTechnicalEvaluationPanelstoassess
agivencontractorsnancialhealthpriortoaward.TeConstructionFinancialManagementAssociation
(CFMA)initsAnnualSurveyofUSconstructioncompanieslistsanother8nancialratiosinitsanalysesof
constructionindustrygroups.Whiletheadditionofnancialcriteriawouldincreasetheworkoftechnicalevalu-
ationpanels,theaddedinformationmayprovide(i)greaterassurancethataselectedcontractorcanperformthe
workor(ii)rationalesfortheexclusionofariskycontractor.IfanMCAmustawardthecontractquickly,some
additionalnancialcriteria(suchasBacklogtoWorkingCapital,TurnoverRatioandQuickRatio)couldbeused
aspartofthepost-qualicationbenchmarkstoincreasethelikelihoodofbetterawardresults.Teseratiosare
coveredattheendofthememorandum.
ItshouldalsobenotedthatMCChaselectedtouseasetofratiosand,forthemostpart,minimumacceptable
criteria,largelyconsistentwiththeratiosthattheWorldBankandotherinternationallyfundedinstitutions
(multi-laterallendersanddonors)haveadoptedonthegroundsthattheMCAsaretappingintoessentiallythe
samemarketforconstructionservices.OnedierencebetweenMCAcontractsandcountryagenciesusing
otherdonorfundsmaybeintheaveragesizeofthecontracts.MCAstypicallyareputtingoutlargerprojects
comparedtootherdonorfundedprojectsandthistypicallyleadstorequirementsassociatedwithlargercontrac-
tors.AsMCAslookattheirspecicprocurements,MCCrecommendsthattheytakethisintoaccountandnd
theappropriateindicatorsandratiosforsuchlargermarketparticipants.
TeremainderofthismemoreviewstheinformationintheCFMAAnnualSurveyasitappliestotheMCC
SBDs.MCAsareencouragedtoconsiderthespeciccircumstancesoftheprocurementandapplyprudent
nancialcriteriainallcases.MCCWashingtonstaisavailabletoassisttheMCAindevelopmentofthese
nancialcriteriatoensurebroadermarketappealtostrongerconstructioncontractors.Teaoo8CFMAAnnual
SurveyisavailabletoMCAsinordertoassistthemindevelopingthenancialcriteriainthespecicprocure-
ments.
CFMA Annual Survey
Teaoo8CFMAAnnualSurveyisaself-selectedsamplefromapproximately,ooCFMAmembersemployed
byUSconstructioncompaniesandasmallnumberofotherUScontractors.CFMAdoesnotclaimthatthesur-
veyisastatisticallyvalidrepresentationoftheconstructionindustry.TeIRSprovidessimilarinformationbut
ithasalonglagtime(aoodataisnowavailable)whichmakesitalessusefulguideintodaysrapidlychanging
nancialclimate.
Tesurveyisseparatedbythree()contractortypes:Industrial&Non-residential,Heavy&Highway,andSpe-
cialtyTrade(including8specialtycontractortypes).Tesurveyalsohasaggregatenancialinformationforthe
followingtypesofUSlimitedliabilitycorporateentities:C,SandLLCs(limitedliabilitycompanies).Temajor-
ityofcompaniesareStypewithasmallminoritypubliclyownedorownedbyforeignrms(8insurvey).(Te
ScorporationislimitedtoshareholderswhereastheChasnolimitonshareholdernumbers.TeLLC
issimilartoanScorporation.TevastmajorityofUSpubliclytradedcompaniesareCcorporations.)Te
contractortypemostapplicableforMCAcontractsareHeavyandHighwayContractorsbecausetheyinclude
NAICScodesforwaterisewer,oil&gas,power&communication,andhighway&bridgecompanies.
Overview of current nancial eligibility Criteria ranges
Liquidity: Current Ratio and Cash Flow Requirements
TeCurrent Ratio(CurrentAssetsiCurrentLiabilities)isameasurementofacompanysmarketliquidityor
thedegreetowhichthecompanycanmeetitsimmediateshort-termobligations(currentliabilities)usingcur-
rentliquidassets.BelowisasummaryofCFMAsaoo6,aoo;andaoo8industrysurveyresultsregardingthis
criticalratio:
Current Ratio Mean Median
HeavyandHighwaySub-Industry
Composite
BestinClass
2006-2007-2008
1.4-1.5-1.5
1.4-1.7-1.8
2006-2007-2008
1.5-1.4-1.6
1.4-1.8-1.8
ByAnnualRevenueStream
<10MillionUSD
10-25MillionUSD
25-50MillionUSD
50-100MillionUSD
>100MillionUSD
1.9-1.5-2.4
2.2-1.4-1.7
1.7-1.6-2.0
1.5-1.5-1.4
1.5-1.4-1.4
2.0-1.3-1.5
1.8-1.4-1.7
1.4-1.5-1.8
1.5-1.4-1.4
1.5-1.4-1.4
Acurrentratioof.oindicatesthatcurrentassetsatleastequalcurrentliabilities,andhasbeenusedinthe
pastasaminimumnancialrequirementinMCCsPQDs.However,theheavyandhighwayconstructionsub-
industryshoulddemandahigherratio,astheneedtopurchaselargemachinesorotherequipmentwithcashin
advanceofamajorprojectwouldreducecurrentassetsandseverelystrainbothworkingcapitalandthecurrent
ratio.
TetypicalvalueofbankcovenantsforCurrentRatioasrevealedinthesurveywas..Telargercompanies
showratiosthatarereasonablysteadyyeartoyearandthatarehigher,butnotmuchhigher,thanthecovenant
value.However,somelarge,reputableconstructioncompanieshavelowerCurrentRatiosbecausetheyhave
largelinesofcredittosupportthatoperation.
MCC recommends considering a value of . for the Current Ratio as a minimum selection criterion.
However, in some cases involving large contracts that have other larger turnover criteria, this ratio may be
reduced to . in order to attract a larger pool of qualied contractors.
Cash Flow Requirement
InadditiontoestablishingarmsCurrentRatio,MCCsSBDsrequireconrmationthatthecontractorhas
adequateaccesstocapitaltofundactivitiesuntilreimbursement.Teamountofcashowrequireddepends
heavilyonthevalueofthecontractworksandshouldcoversix(6)monthscashowneedsunderthecontractin
question.Teaoo8CFMAAnnualSurveydoesnotprovidedataonthiscriterion,however,thebacklogtowork-
ingcapital(seepageo8)couldhelpbringthisinfocus.
Access to Capital: Debt-Equity Ratio
Tedebt-equity ratio(TotalLiabilitiesiTotalNetWorth)indicateswhatportionofarmsliabilitiesisnanced
bydebt,therebydemonstratingitsleverage.BelowisasummaryofCFMAsindustrysurveyresultsregarding
thiscriticalratio:
Debt-Equity Ratio Mean Median
Composite
BestinClass
2006-2007-2008
1.4-1.5-1.3
0.8-1.5-0.8
2006-2007-2008
1.4-1.5-1.2
1.0-1.5-0.9
<10MillionUSD
10-25MillionUSD
25-50MillionUSD
50-100MillionUSD
>100MillionUSD
0.8-1.3-1.1
0.8-1.5-1.1
1.0-1.2-0.8
1.7-1.6-1.0
1.5-1.6-1.6
0.8-1.1-1.4
0.8-1.4-1.2
1.3-1.5-1.0
1.7-2.1-1.4
1.7-1.6-1.5
Acompanywithadebtratiooflessthan.ohasmostofitsliabilitiesnancedbyequity.Adebtratioofover.o
demonstratesliabilitiesnancedthroughgreatershorttermandiorlongtermdebt.Tetypicalvalueofbank
covenantsforDebttoEquityratioforHeavyandHighwaycontractorsasrevealedinthesurveywasa..(Only
ofthesecompanieswereaectedbysuchacovenant).Telargercompaniesshowratiosthatarereasonably
steadyyeartoyearandthataresubstantiallylowerthanthecovenantvalue.TeDebttoEquityratiomustbe
consideredintandemwiththeInterestCoverratiothatexplicitlylooksattheimpactofdebtoncashow.
MCC recommends considering a value of . for the Debt to Equity Ratio as a maximum selection crite-
rion, however, rms with higher ratios should be scrutinized carefully. Te MCC SBD uses a comparable
ratio of Total Debt to Total Assets (the Debt Ratio) and the equivalent criterion would be a Debt Ratio of
not more than ..
Average Annual Construction Turnover
TeContractRevenuesub-categoryintheaoo8CFMAAnnualSurveywouldcorrespondtotheConstruction
TurnoverlineinthecompositeStatementofEarningsinthesurvey.Teminimumturnovercalledforinthe
biddingdocumentswilldependuponthesizeandcomplexityoftheworksbeingbid.AgeneralrulethatMCC
hasusedisthatthecontractorshouldhaveaminimumAverageAnnualConstructionTurnoverdoublethe
proposedcontractamount.
Value of Comparable Contracts
TeValueofComparableContractsestablishesanotherelementofacontractorsabilitytomeettheperfor-
mancefortheproposedaward.Asageneralrule,MCChasrecommendedthatcontractorshavesimilarexperi-
enceinthelasttwo(a)tothree()yearsinvolvingtwo(a)ormorecontractseachwithvalueatleast;-8othe
amountoftheexpectedaward
Additional Financial Criteria
Tefollowingadditionalnancialcriteriamaybevaluabletoaddtoapre-orpost-qualication.
Times Interest Earned
TimesInterestEarned(akainterest coverage ratioorxed charged coverage)isametricusedtomeasurea
companysability tomeetitsdebtobligations. Itiscalculatedbytakingacompanysearningsbeforeinterest
andtaxes(EBIT)anddividingit by thetotalinterestpayableon bondsandothercontractual debt. Itis usually
quotedasaratioandindicateshowmanytimesacompanycancoveritsinterestcharges onapretaxbasis.Fail-
ingtomeettheseobligationscould forceacompanyintobankruptcyaratiobelowmeansthatacompany
doesnothavesucientearnedincometocoverborrowingexpenses.Typically,aratiobelowa.isconsidered
awarningsign.Ahighratiomeansthatacompanyisabletomeetitsinterestobligationsbecauseearningsare
signicantlygreaterthanannualinterestobligations,however,ahighratiocanalsomeanthatacompanyhasan
undesirablylowlevelofleverageorpaysdowntoomuchdebtwithearningsthatcouldbeusedforotherinvest-
mentopportunitiestogethigherrateofreturn.
BelowisasummaryofCFMAsindustrysurveyresultsregardingthisratio:
Times Interest Earned Ratio Mean Median
Composite
BestinClass(2008)
2007-2008
17.1-16.6
73.9
2007-2008
13.4-11.7
65.5
>50MillionUSD 17.5-9.1 15.2-10.3
Telargercompaniesshowinterestcoverthatisreasonablysteadyyeartoyearandwellinexcessofthewarn-
inglevel(belowa.).Atorbelowtheselevels,managementwillbedistractedfromworkcompletiontonancial
survivaltothedetrimentofpossibleCompactobligations.
MCC recommends considering a value of for the Times Interest Cover Ratio as a minimum selection
criterion.
Backlog to Working Capital
Tisratioindicatestherelationshipbetweensignedorcommittedwork(backlog)andworkingcapital(current
assetsminuscurrentliabilities).Ahigherratiomayindicatetheneedforanincreaseinworkingcapital,and
ifthisratioistoohighthecompanymaynothavetheavailableresourcestonishthejobstheyhavealready
committedtocomplete.Teimplicationstoprojectswithtighttimelines(suchasthoseinMCCCompacts)are
evident,sinceanovercommittedcontractormayhaveproblemsmobilizingon-schedule.TeCFMAdoesnot
recommendarangeforthisratiobuttheCFMAratiosforHeavy&HighwayContractorsareshownbelow.
Backlog to Working Capital Ratio Mean Median
Composite
BestinClass
2006-2007-2008
9.5-9.7-11.7
3.7-9.7-5.0
2006-2007-2008
5.4-7.0-6.8
3.0-7.0-4.5
<10MillionUSD
10-25MillionUSD
25-50MillionUSD
50-100MillionUSD
>100MillionUSD
3.0-6.7-3.8
2.1-8.0-6.6
5.0-6.1-5.6
10.7-7.2
11.3-10.4-9.8
7.3-5.2-6.3
2.5-9.6-5.2
6.3-6.8-6.8
8.5-6.5
5.8-6.4-8.3
MCC recommends considering a value of for the Backlog to Working Capital Ratio as a maximum
selection criterion.
Quick Ratio
Tequick(akaacid test)ratio(currentassetswithoutinventoriesminuscurrentliabilities)isamorerigorous
testofacontractorsaccesstoliquiditythantheworkingcapitalratio,primarilybecausetheworkingcapitalratio
allowsfortheinclusionofinventorythatmaydisguiseashortageofcash.Companieswithratiosoflessthan
.ocannotpaytheircurrentliabilitiesandshouldbeevaluatedwithextremecaution.Furthermore,iftheQuick
RatioismuchlowerthantheCurrentRatio,itmeanscurrentassetsarehighlydependentoninventory.
Quick Ratio Mean Median
Composite
BestinClass
2006-2007-2008
1.3-1.2-1.2
1.2-1.5-1.6
2006-2007-2008
1.3-1.3-1.3
1.5-1.7-1.7
<10MillionUSD
10-25MillionUSD
25-50MillionUSD
50-100MillionUSD
>100MillionUSD
1.7-1.2-2.1
1.6-1.2-1.5
1.5-1.5-1.7
1.3-1.3-1.2
1.2-1.1-1.2
1.5-1.3-1.2
1.3-1.3-1.3
1.4-1.4-1.6
1.2-1.3-1.3
1.2-1.2-1.2
Tesendingsshowthatthemeanandmedianamongallrevenuestreamshaveaquickratiogreaterthan.o,
withthebestcontractorsintheirclasscomingincloserto..TeQuickRatiofornumerous,verylargeinterna-
tionalcompanies(thosewithmorethanbillionUSDinturnover)aretypicallybelow.o.Tissituationreects
theselargecompaniesabilitytofundthemselvesthroughshorttermborrowingfrombanks.
Based upon the potential variation of the Quick Ratio involving international construction rms, MCC
does not recommend any particular ratio.Nevertheless,theQuickRatioshouldbeevaluatedalongsideother
nancialtestsforallpotentialcontractors.
Backlog Months
TeBacklogMonthsmeasurestheamountofrmworkthatacompanyhasonitsbooksassumingthatitcon-
tinuestooperateatitscurrentsize.IftheBacklogMonthsisrelativelysmall,thisindicatesmanagementtimeis
likelytobedivertedtoworksearch.IfBacklogMonthsisrelativelylarge,thismayindicatethatthecontractor
couldbeindierenttothesuccessfulcompletionofanyonecontract.
Months in Backlog Mean Median
Composite
BestinClass(2008)
2007-2008
10.3-13.7
8.5
2007-2008
8.5-7.7
7.3
<10MillionUSD
10-25MillionUSD
25-50MillionUSD
50-100MillionUSD
>100MillionUSD
7.8-9.6
9.6-8.5
9.6-8.9
7.9-11.0
10.6-10.7
6.5-7.4
6.5-8.1
8.5-9.1
7.1-9.3
7.5-9.3
AminimumBacklogofabout6monthswouldbeareasonablecompromiseassupportedbytheresultsfromthe
CFMAsurvey.However, MCC does not recommend a specic criterion in this category. Asbacklogisnota
formalreportingrequirementinmanycountries,caremustbeexercisedinrequestingsuchagureastherewill
benodenitemeansofcheckingtheveracityofanystatement.
Notes
Tedenitionoftheformandcontentoftheratiosmustbeclearlyspeciedinthebiddingdocumentsasdif-
ferentcompanieswillinterpretthedataneedsindierentways.Asthecompanyaccountsarealwaysrequired,
Piogiam Piocuiement Cuidelines, Octobei a, aoo, ao
aseparatetablethatislinkedexplicitlytolineitemsintheaccountsshouldbeadopted.Tisconsolidationof
informationwillalsoreducetheamountofsearchingthroughaccountdocumentsduringtheevaluationprocess.
Whiletheseratiosareusefulinselectinganappropriatecontractor,theyarenoguaranteethatthenancial
healthofacompanywillnotchangefundamentallyoverthecontractperiod.MCAsshouldmonitoronanan-
nualbasis,ataminimum,thenancialhealthofthecontractorsagainstthesecoreindicators.
IntheeventthattheMCATechnicalEvaluationPaneldoesnotincludemember(s)withastrongnancialback-
groundtheuseoftheseratiosasaguidecanhelpthemascertainthenancialhealthofarmunderevaluation.
Sincetheseratiosarenotperfectindicatorsofarmscapabilitytoperformagivencontract,werecommend
thattheTEPsbeencouragedtoprepareicalculatetheseratiosforinclusionintheirreports,butthatanyaction
takenasaresultofthisanalysisbereviewedbysomeonewiththeappropriatebackgroundinnance(e.g.,DAF,
MCAFiscalAgent,outsideconsultantorotherresource).
Attachment . Contract File lndex
Sample

Contract File Contents
Contract
#
Mod.# DescriptionofAction:
Placedocumentinle,separatedbytabs.Ifdocumentisrequired,placeanXintheINFILEcolumn,oruse
folderidentierifthereismorethanonefolder.
# DOCUMENT
INFILE
# DOCUMENT
INFILE
AWARD DOCUMENTATION EVALUATION DOCUMENTATION
Contract&AwardLetters SourceSelectionPlan
SF30ModicationsandModicationLog NoticetoLateOerors
NoBidDocumentation ProposalEvaluation:TechiPPiPrice
AwardDistribution CompetitiveRangeDetermination
NoticeofExclusionfromCompetitiveRange
# SOLICITATION DOCUMENTATION ClaricationsiDiscussions
SolicitationDocument RequestforFinalRevisedProposals
Amendment&SupportDocumentation PostNegotiationMemorandum
SupervisorySolicitationReview SourceSelectionDecision
SharePointEntry DebriengReports
DocumentationofContractReview
TASK & CALL ORDERS

TaskiCallOrdersandAssociated
Modications POST-AWARD DOCUMENTATION
UnsuccessfulProposals-Separatele
# ADMINISTRATIVE DOCUMENTATION SeparateleNo.:
COTRiProjectMonitorDesignation Post-AwardNoticetoUnsuccessfulOerors
AwardSynopsis SuccessfulProposal(s)
SubcontractingPlaniReports ContractCloseout
Post-AwardConferenceDocumentation

ContractorsReports

MODIFICATION BACKUP
DOCUMENTATION
InvoicesandRelatedCorrespondence ActionMemo&IGCE
Piogiam Piocuiement Cuidelines, Octobei a, aoo, aa
AdministrativeCorrespondence RevisedStatementofWork
Requisition
PRE-AWARD DOCUMENTATION DeterminationtoExerciseOption
Milestones PostNegotiationMemorandum
ActionMemo ModicationCorrespondence
Requisition ReviewSheet
SOW CloseoutModication:
IGCE ContractCompletionStatement
EvaluationCriteria ContractCloseoutChecklist
RecommendedSources CloseoutMemotoCOTR
COTRNomination CloseoutLettertoContractor
TEPMemberDesignation
MarketResearch
AdvProcPlan

Determinations&Findings:Options&
T&M

EPLSEligibility
DOLWageRateDeterminations
Pre-AwardSynopsis
Pre-AwardCorrespondence
Attachment . Bid Review and
Technical Fvaluation Panels
Bid Review and Technical Evaluation Panels
TeMCAEntityshallusetechnicallyqualiedpanelstoevaluateeachbidortechnicalproposal.MCCencour-
agesexpertexternalexpertiseonmajorprocurements.
Technical Members
AllMembersofthepanelmustbetechnicallyqualiedtoreviewandevaluatethesubstanceoftheproposals.It
isimportanttoensurethatthepanelmembersactuallypossessthevariousskillsrequiredtoevaluateallaspects
oftheproposals(e.g.,environmental,social,andmonitoringandevaluation),andnotbeservingmerelyasa
representativeofanorganizationorbyvirtueoftheocetheyhold.However,panelmembersarenotexpected
tobeprocurementexpertsandwillnotbemakingdecisionsabouttheprocurementprocess.Allmembersof
thepanelmustbevotingmembers.Panelsgenerallyconsistoftotechnicalmembers,butthesizewillvary
dependingonthetypesofexpertiseneededforthespecicprocurement.Ineachcase,however,thenumberof
technicalmembersmustberationallyrelatedtothetaskathand.Intheinterestofcontinuity,thesamepanel
shouldbeusedthroughouttheselectionprocess.
MCCemployeesanditsagentsorconsultantsarenormallynoteligibletoserveasamemberofapanelforan
MCAEntityprocurement.AnexceptionistheprocurementoftheservicesofaProcurementAgent.Inother,
extraordinarycases,MCCmaygrantexceptionsallowingMCCemployees,itsagentsorconsultantstoserveasa
memberofapanelprovidedthetermsofthatserviceareacceptabletoMCC,includingtheimpositionofappro-
priatemechanismsfordealingwithanyactual,potentialorperceivedconictofinterest.MCAEntityemployees
andconsultantsmayserveonapanelifqualied,butMCAEntityboardmembersarenoteligibletoserveon
apanel.TeProcurementAgentdoesnotserveonapanel.TeMCAEntitysprocurementdirectordoesnot
serveonapanelexceptwhentheprocurementisfortheservicesofaProcurementAgent.
Auxiliary Member
Inadditiontothetechnicalmembers,theMCAEntitymayappointanauxiliarymember(s)tothepanel.Te
auxiliarymemberwouldcheckreferences,nancialandothereligibility,assistthetechnicalmembersinwriting
thetechnicalevaluationreportandperformotheradministrativedutiesforthepanel.Auxiliarymembersshall
notevaluate,vote,orcommentonanybidorproposal.
Piogiam Piocuiement Cuidelines, Octobei a, aoo, a(
Observers
MCCreservestherightofitsownsta,agentsorconsultantstoobservetheproceedingsofthepanel.Tepres-
enceofanobserverfromMCCisnotanapprovalorendorsementoftheresultsoftheevaluationpanel,andin
nowaybindsMCCtoapprovetheresults.Observersshallnotevaluate,vote,orcommentonanybidorpro-
posal,andshallnotansweranysubstantivequestionrelatedtotheprocurementoranybidiproposalthatcould
betakenasabindingonMCC.
Approval of Panel Members
TeProcurementAgentisresponsibleforconductinganinitialreviewandapprovalofthetechnicalmembers
ofthepanelproposedbytheMCAEntity.ForprocurementsvaluedabovethethresholdslistedinAttachment
(ApprovalRequirements)ScheduleA:Goods,WorksandNon-ConsultantServicesandConsultantServices,
MCCmustapprovethepanelmembers.MCCmayopt-in,asnecessary,forapprovalofpanelmembersforthose
projectsunderScheduleB:Goods,WorksandNon-ConsultantServicesandConsultantServices.Forprojects
inregardtowhichapprovalisrequiredwhetherunderScheduleAorasanopt-inunderScheduleB,theMCA
Entityshallsubmit,forMCCapprovalofapanelmember,theirCurriculumVitaeoralistofthecandidates
qualications.
Condentiality
Tenamesofthepanelmembersmustremaincondentialinordertodecreasethepossibilityofundueinu-
encebythecompetingentities.Allproposalinformationmustremaincondentialandmaynotbesharedby
anyonewhohasnotsignedanImpartialityandCondentialityDeclaration.
Conict of Interest of Panel Members
Tedesignationprocessforthepanelmustalsoensurethatthepanelmembersdonotcurrently,norhave
engagedinduringthepastoneyear,workforanyofthecompetingentities.Inaddition,thepanelmembermust
nothaveanancialinterestthatcouldbeaectedbytheirparticipationonthepanel.Anypersonwhoislisted
aspersonnel(keypersonnelorotherspecicallydesignatedpersonnel)inaproposal,orwhoisconsidering
prospectiveemploymentwithacompetingconsultant,isnoteligibletobeamemberofapanelfortherelated
procurement.Eachmemberofthepanel,includinganyauxiliarymembers,theProcurementAgent,theprocure-
mentdirectorandanyobserveroranyoneprovidedprocurementsensitiveinformationmustsignanImpartiality
andCondentialityDeclarationandthatthisbedocumentedintheevaluationreport.(SeeAttachmentto
theseGuidelinesforasample).Tissamplecanbealteredtotthespeciccontextoftheprocurement,but
mustpreservethekeyelementsofthedeclaration.Itisofutmostimportancethatthemembersofthepaneldo
nothaveanynancialinterestintheoutcomeoftheprocurement,anditistheresponsibilityoftheProcurement
Agenttoensurethatallmembersunderstandthisrequirement.
Payments to Panel Members
Governnent Enployees Ingeneral,TeMCAEntityshallnotpayhonorariumstoemployeesoftheMCAEntity
orothergovernmentagencies.Governmentemployeesmaybepaidfortravelandperdiemexpensesdirectly
relatedtoparticipationasapanelmember,subjecttothelimitationssetforthintheapplicableMCCCostPrin-
ciples.
Private Sector Menbers.TeMCAEntitymaypayareasonablefeetoprivatesectormembersfortheirservices
asapanelmember,subjecttothelimitationssetforthintheapplicableMCCCostPrinciples.Privatesector
membersareprocuredasconsultantsunderPart.B.
Bid Review or Technical Evaluation
Inconductingthebidrevieworevaluationmembersofthepanelwillconducttheevaluationinaccordancewith
theevaluationscriteriainthebiddingdocuments,andwillprovidenumericalscoresforeachcriteriaandsub-
criteria.Anadjectivalscoremaybeusedonlyinconjunctionwiththenumericalscore.Forexample:excellent
oo-,a,good,-8,satisfactory8-etc.
Consensuswillbeusedtoreachthenalscoring.Inregardtoachievingconsensuswithinthepanel,thepanel
isencouragedtomeetassoonaspossibleaftercompletinginitialevaluations.Tepanelmembersareencour-
agedtodiscusstherationaleoftheirratingsandanyuniqueunderstandingoftheproposalsandiorTermsof
Reference(ToR)thatmayaddtoeachothersknowledgeandiorunderstandingoftheeort.Itispermissiblefor
panelmemberstochangetheirratingif,throughthisdiscoveryprocess,theybelievetheyhavemissedimportant
informationinevaluatingtheproposal.
Tesediscussionsareanopenforumthatallowseachmemberofthepaneltofocusonhowtheirfellowpanel
memberscametoanevaluationdecision.Tesefactorsassisttoreachandsupport(throughthenarrative)a
consensusopinionconcerningthetechnicalmerit,strengths,andweaknessesofeachproposalbaseduponthe
evaluationfactorsinthebiddingdocuments.Asaresultofthesediscussionsnopanelmembershouldbepres-
suredtochangearatingorcomment,butalsorealizethatanypanelmemberisfreetochangeanyinitialrating
orcommentsheorshehasassignedbaseduponthisdiscussion.Tenalpanelratingmaynotalwaysreectthe
averagerating,butshallreectaratingagreedtothroughthisconsensusdiscussion.
Bid Review or Technical Evaluation Report
Attheendoftheevaluationprocess,theMCAEntityshallprepareareportdocumentingtheresultsofthe
evaluationprocessand,ifrequiredbytheapprovalrequirements(Attachment)submitthereporttoMCC
foritsreviewandapproval.Tereportshallsubstantiatetheresultsoftheevaluationanddescribetherelative
majoriminorstrengthsandmajoriminorweaknessesoftheproposals.Allrecordsrelatingtotheevaluation,such
asindividualmarksheets,shallberetainedbytheProcurementAgentuntilcompletionoftheCompact.

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