FIDIC 2009 London Conference: Carol Hessler

FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
■MCC Operations
■Compacts in Africa
■Procurement Structure
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC - an innovative foreign assistance program designed to….
“reduce poverty through sustainable economic growth”
MCC links greater contributions from developed nations to greater
responsibility from developing nations
MCC is managed by a Chief Executive Officer and a public-private Board of
Directors comprised of:
MCC CEO
Secretary of State
Secretary of the Treasury
U.S. Trade Representative
USAID Administrator and private sector representatives
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Core Principles
1. Sound governance, economic and social policies:
• To countries who can use assistance effectively
• Spur private investment and increased trade, the real engines of
growth
2. Country ownership:
• Increases responsibility
• Builds capacity
• Yields better results
3. Clear objectives and measurement of results:
• Increase accountability
• Contribute to development success
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Policies Matter – Annual Competition
Country Scorecards
■Malawi
■Compact Eligible
FY 2009
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■Niger
■Threshold Eligible

FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Where MCC operates
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC’s portfolio, in millions: over 55% infrastructure
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
$4.6 Billion in Compacts for Africa, over $3.1 Billion for infrastructure
Country Total Transport 1 Water Energy Irrigation Other Infra 2
$307 $169 $17
$481 $194 $91 $29
$110 $79
$547 $201 $28 $75
$363 $164 $91
$110 $11
$461 $219 $150 $21
$698 $105 $177
$507 $176 $204
$305 $117
$698 $373 $66 $207
$4.6B $1.4B $434M $207M $374M $715M
1. “Transport” includes roads, airports, ports, and ferries
2. “Other Infra” includes buildings, social infrastructure, and small-scale community
infrastructure
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Status of Africa Compacts in Implementation
Start Up Year 1 Year 2 Year 3 Year 4 Year 5
Namibia
Morocco
Burkina Faso Lesotho
Benin
Mozambique
Tanzania
Mali
Ghana
Madagascar
Cape Verde
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
International Contractors Needed for Construction, Goods, Consulting, and Other Services
France
Germany
Canada
Australia
International companies (non-US & non-domestic) have won 60% of Compact-funded
contracts by number so far
UK
Portugal
Azerbaijan
Sweden
Other

FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Tenders are Published Daily
http://www.mcc.gov/procurement/index.php

FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
What?
Why?
Example Infrastructure Services Opportunity
• MCC wants to re-energize industry interest and participation through a new set of IDIQ
(multiple task order) contracts for infrastructure due diligence and independent
engineering efforts in compact implementation.
• Please see the Request for Information at
https://www.fbo.gov/index?s=opportunity&mode=form&id=efd04a2e0e4858c995f84057ca1c22
51&tab=core&_cview=0
• The current IDIQ contracts do not generate full participation from all the contractors, and
• The periods of performance of the current IDIQ contracts are not long enough.
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Ag & Irrigation
$300,900,000
The Morocco Compact
Procurement Timeframe
Land Preparation Earthworks & Fruit
Tree Planting
Summer 2009
Irrigation Infrastructure Works Autumn/Winter 2009
Remedial Works on Hassan Addakhil
dam
Construction of Fishing Ports &
Wholesale Fish Markets
Autumn/Winter 2009
Autumn/Winter 2009
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Fisheries
$116,200,000

FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Irrigation
$91,438,869
The Burkina Faso Compact
Procurement Timeframe
Water Management and Irrigations Works Launch: June 2010
Communes & Agricultural Markets Launch: June2010
Integrated Water Resource Management System (1) Launch: January 2010
Modernization of CORS Network (2) Launch: September 2009
Dedougou-Nouna-Ft. Mali Road (145km) Launch: January 2010
Sabou-Koudougou-Didyr Road (76km) Launch: October 2010
Banfora-Sindou Road (50km) Launch December 2010
Rural Roads (151km) Launch: July 2010
Roads
$194,130,000
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Ghana
Transportation
$244 million total
The Ghana & Mali Compacts
Procurement Distance Timeframe
N1 highway 14 km First contract signed Dec 2008, Tender
for 2 nd to be issued in 2009
Ghana feeder roads 363 km Tenders issued starting March 2009
Ghana trunk roads 77 km Tenders issued starting April 2009
Ghana ferry project Vessels &
Civil
Mali Road and Airport
$65.2 million total
Tenders to be issued in 2009
Mali Airport airside infrastructure Runway Tender to be issued in 2009
Mali Airport landside infrastructure Terminal Tender to be issued in Q1 2010
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Water Projects
$145 million total
The Lesotho Compact
Procurement Timeframe
Metolong Conveyance Construction: 2010
Metolong Water Treatment Works Design-Build: Late 2009- Early 2010
Water Distribution Systems Design: Late 2009
Construction: 2010
Rural Water Supply & Sanitation Construction: Late 2009 – Early 2010
Health Clinics, Out-Patient Departments,
etc.
Health Projects
$103 million total
Design-build: Late 2009 – Early 2010
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Water & Sanitation
$203.6 million total
The Mozambique Compact
Procurement Timeframe
Rural Water Supply (wells & boreholes) Construction IfB: Q1 2010
Nacala Dam Rehabilitation & Raising
Water Supply and Sanitation in 5 secondary cities
and towns
Urban water supply and sanitation in 3 provincial
capitals
Road Rehabilitation $176.3
million total
Construction IfB: Q4 2010
Construction IfB: Q4 2010
Construction IfB: Q4 2010
4 Road segments in Cabo Delgado, Nampula, and
Zambezia provinces (491 km) Construction IfB: Q4 2010
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Education
The Namibia Compact
Procurement Timeframe
Design and Supervision of 47 Primary
and Secondary Education Schools
RFP Launch: Q2 2009
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Water Project
$66 million total
The Tanzania Compact
Procurement Timeframe
Mainland Trunk Road Activity: 431km Design: Late 2009
Construction: 2010
Zanzibar (Pemba) Rural Roads: 35km Feasibility & Design: Late 2009 –
Early 2010
Construction: TBD
Mafia Island Airport Activity (Runway and facilities) Engineering: 2010
Construction: 2010
Lower Ruvu Water Treatment Plant Expansion &
Morogoro Water Treatment Plant Upgrades
Transport Project
$353 million total
Engineering: Ongoing
Construction: 2010
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Energy Projects
$206 million total
The Tanzania Compact
Procurement Timeframe
Transmission & Distribution Activity
(up to 2,100km of .4, 11, 33 kV lines)
Zanzibar Cable Activity
(approx 40km submarine and 40km OH cables)
Hydro Activity
(8MW run-of-river hydropower plant)
Engineering: On-going
Construction RFP: early
2010
Engineering: On-going
Construction RFP: Fall 2009
Engineering: On-going
Construction RFP: late 2009
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Roads
$183 million total
The Georgia Compact
Procurement Timeframe
Roads Tenders completed
Pipeline rehabilitation Tenders for final phase late 2009
Gas storage Tenders issued starting Spring 2009
Water supply & sanitation Tenders ongoing
Energy and Water
$132 million total
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
The Armenia Compact
Procurement Timeframe
Pumping stations rehabilitation Tender in Fall 2009
Irrigation gravity schemes
construction (4 total in 2 lots)
Tender in Fall 2009
Tertiary canal rehabilitation Tender in Fall 2009
Agricultural
Infrastructure
$145.7 million
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Procurement Principles
Open, fair and competitive procedures
Solicitations based on clear and accurate descriptions
Contracts awarded only to responsible suppliers and
contractors
No more than a commercially reasonable price shall
be paid
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Program Procurement Guidelines
Transparent
Fair
Principles
Open
Similar to World Bank Procurement Guidelines with
Important Exceptions:
• No Geographic Preferences
• US Prohibited Sources ineligible
• US or Local Currency only
Competitive
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Procurement Guidance
http://www.mcc.gov/procurement/index.php
Being combined into one document
Template for Design-Build
Template for Prequalification of Works
Template for Procurement of Consulting Services
Template for Procurement of Goods and Related Services
Template for Procurement of Small Works
Template for Procurement of Large Works
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Standard Bidding Documents
In Nov 2007, MCC decided to create Standard Bidding Documents for:
■ Small works
■ Consulting services
■ Design bid build
■ Design build
■ Goods
■ And others
Why?
• Consistent approach
• International standards known in the market
• Cost/price management
• Risks consistent from contract to contract
• A bidder on a road in Tanzania can count on the same general conditions of
contract if/when they bid on a road in another country
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Forms of Contract
Large works
MCC has purchased licenses from the International Federation of Consulting Engineers
(FIDIC) for large works:
■ Design bid build (Red Book)
■ Design build (Yellow Book)
MCC General conditions – identical in all FIDIC contracts
Conditions of Particular Application (COPAs) supplement and amend the General
Conditions
Small works, Goods & Consulting Services
For these contracts MCC is using World Bank
standards with minor accommodations to reflect
MCC regulatory requirements.
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Program Procurement Guidelines: The Bid Challenge System
MCA Entity must establish and publish a Bid Challenge System
that provides bidders the ability to seek review of the procurement
process.
■ First Level Review: Accountable MCA Entity
■ Second Level Review: Independent body
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Compact procurements
• Administered by MCA Entities.
• Contract opportunities – all untied – are published
to:
1. http://www.mcc.gov/
2. http://mcc.dgMarket.com/
3. http://www.devbusiness.com/
Threshold procurements
• Administered by USAID.
• Tied to US companies.
• Opportunities published to
http://www.FedBizOpps.gov/
MCC corporate procurements
• Administered by MCC.
• Tied to US companies.
• Opportunities published to
http://www.FedBizOpps.gov/
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
www.MCC.gov: Becoming a one-stop-shop for bidders
MCC is transforming its procurement website to better reach potential bidders
http://www.mcc.gov/procurement/index.php
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
Lessons Learned
Beware reliance on couriers (DHL, FEDEX) for bid deliveries
Knowledge of local challenges – teaming is encouraged
Read the requirements! Ask questions! Submit EVERYTHING
requested in the bidding documents
Bid Security required – ensure it accompanies the bid
Advance Payment requires a bank guarantee
Performance Guarantees required from bank acceptable to the
MCA entity – budget for them!
Price reasonableness – low bid doesn’t always win if it doesn’t
make sense
The SBD contract formats have been reviewed and approved by
MCC – agree to them before bidding!
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
MCC Model: A Fairer Playing Field
• No preferences for U.S. or domestic contractors: Compacts are “untied”.
• Past experience, environmental, health, safety, labor standards matter.
• Open advertisement.
• Award decisions made by technically qualified experts.
• Professional independent oversight of contract performance.
• All Compact funds are obligated by “entry into force”.
• Contractors paid directly by USG through the Common Payment System.
• Checks and balances to guard against abusive discretion.
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FIDIC 2009 London Conference
Conference :: 13 – 16 September
September
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