Millennium Challenge Corporation

Interim Amendment
Notice 2010-001
September 27, 2010
Inteiim Amendment Notice aoro-oor, Septembei a;, aoro r
MCC/MCA Procurement Community
1. Procurement Notices
MCC issues notices from time to time to inform all MCC and MCA Sta (including agents and implementing
entities) of changes to the MCC Program Procurement Guidelines (PPG) and the Standard Bidding Documents
(SBDs).TisisanInterimAmendmentNoticeissuedinaccordancewithPart;ofthePPG.Techangesindicated
inthisInterimAmendmentNoticeareeectiveassetoutinthesectionentitledEectivenessandApplicationof
Amendment below. Te changes made by the Interim Amendment will be incorporated into the PPG and the
SBDsduringtheirnextformalrevisions.TisInterimAmendmentNoticewillalsobepostedonMCCswebsite.
2. MCC Program Procurement Guidelines
MCC and MCA Sta are to immediately implement the changes to the MCC Program Procurement Guidelines
describedinAttachmentMaterial Interin Anendnent :oIo-ooI.
Rationale for the Material Interim Amendment
MCC-funded procurements embrace international transparent, competitive bidding in the interest of value
for money.MCCisauthorizedbytheUnitedStatesCongresstoprovidegrantassistancetofundeconomic
growthandpovertyreductioninvestments,withprogramprocurementsconductedusingopen,fair,andcompeti-
tiveproceduresinatransparentmanner.Tisauthorityisconsistentwithdeliveringeectiveaid.Transparency
andopencompetitioninprocurementleadtothebestvaluefortaxpayermoneyandstretchesMCCsresources.
OpencompetitionalsoexpandsthepossibilityforU.S.companiestobidonprojectsfundedbyotherdonorsas
well. Asaresult,companiesfromcountrieshavewonMCC-fundedcontracts.Tenationalityofcompeting
rmsvariessignicantlybyregionandsector.Countrieshistoricalties,proximity,andcommonlanguagewitha
regiongenerallycorrelatetormsfromthatcountryhavingagreaterpresenceintheregion.However,nosingle
nationscompanieshavedominatedMCCcontracting.
MCC is revising the MCC Program Procurement Guidelines to ensure a level playing eld for commercial
rms from all countries.TroughthisProcurementNotice,MCCisrevisingitsguidelinestoexcludegovern-
ment-ownedenterprises(GOEs)fromcompetingforMCC-fundedcontracts,exceptincertaincases.AsMCCs
programportfoliomatures,theagencyhasobservedthatmoreGOEsarewinningcontracts.NotingthatGOEs
oftencompetewithsomeformofsupportfromtheirhomegovernment,MCCistakingthisactiontohelpensurea
levelplayingeldforcommercialrmsfromallcountriestocompeteforMCC-fundedcontracts.
Inteiim Amendment Notice aoro-oor, Septembei a;, aoro a
Eectiveness and Application of the Amendment
AswithallchangestotheMCCProgramProcurementGuidelines,thisrevisionwillapplyprospectivelytoallfuture
procurementactions.
ContractsawardedtoGOEspriortotherevisionoftheguidelineswillremaininplace.
ProcurementprocesseswhereanIFBorRFPhasalreadybeenissuedwithaclosingdateonorbefore
Octoberaa,aooarenotaectedbythisrevisionandmayproceedunderthepreviousguidelinesthat
permittedparticipationbyGOEs.ForprocurementswithbidsorproposalsdueonorafterOctobera,
aoo,theMCAswillissueanamendmenttothebiddingdocumentsincorporatingthechangesspeciedin
Attachmenta.
Forprocurementswherethepre-qualicationorshortlistingphasehasbeencompleted,buttheIFBorRFP
hasnotbeenissued,thechangesspeciedinAttachmentawillbeincorporatedintotheIFBandRFPbefore
release.GOEsthatqualiedforeitherthepre-qualiedlistorshortlistwillbeinformedthattheyareno
longereligibletocompetefortheprocurementduetothechangeinMCCprocurementpolicy.
TerestrictionontheeligibilityofGOEswillnotapplytoGovernment-ownededucational,research,andstatistical
institutionsandothertechnicalunitsofgovernmentnotformedprimarilyforacommercialorbusinesspurpose.
Tisapproachwillnoteliminateanycountrysnon-GOE,commercialrmsfromcompetingforandwinningMCC-
fundedcontracts.
ConsistentwiththePPG,MCAEntitiesmayrequestawaiverofthisrestriction,onacase-by-casebasis,intheinter-
estofoverallprogramimplementation.Inallcases,arequestforawaivermustbereviewedandapprovedbyMCC
inthemannersetforthintheInterimAmendment.
3. Standard Bidding Documents
MCCandMCAStaaretoimmediatelyimplementthechangestotheMCCProgramProcurementGuidelines
describedinAttachmentsathrough,.
PatrickFine
VicePresident,DepartmentofCompactOperations
MillenniumChallengeCorporation
Millennium Challenge Corporation
MCC Program Procurement
Guidelines (10/23/2009 Version)
Material Interim
Amendment
2010-001
September 27, 2010
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro (
TisMaterialInterimAmendmentmodiestheOctobera,aoo,versionoftheMCCProgramProcurement
Guidelines(PPG).Techangesindicatedinthisamendmentwillbeeectiveassetoutinthesectionentitled
EectivenessandApplicationofAmendmentabove.Techangeswillbeincorporatedintoafuturerevisionof
thePPG.
MCCandMCAstashallmakethefollowingchangestotheircopiesofthePPGandinsertthetablefoundatthe
endofAttachment.Techangesmaybemadebyinsertingchangepagestothedocumentsorbymarkingthe
changetotheappropriatetableorparagraph.AcopyofthisMaterialInterimAmendmentistobemaintainedby
theMCAProcurementDirectorandtheMCAProcurementAgentsinaleibinderforuseasareferencebysta
andauditors.
. RATIONALE for Amendment
a. MCC-funded procurements embrace international transparent, competitive bidding in the inter-
est of value for money.
MCCisauthorizedbytheUnitedStatesCongresstoprovidegrantassistancetofundeconomic
growthandpovertyreductioninvestments,withprogramprocurementsconductedusingopen,
fair,andcompetitiveproceduresinatransparentmanner.Tisauthorityisconsistentwithdeliver-
ingeectiveaid.Transparencyandopencompetitioninprocurementleadtothebestvaluefor
taxpayermoneyandstretchesMCCsresources.
b. Tis Amendment will help ensure a level playing eld for commercial rms from all countries.
AsMCCsprogramportfoliomatures,theagencyhasobservedthatmoreGOEsarewinning
contracts.NotingthatGOEsoftencompetewithsomeformofsupportfromtheirhomegovern-
ment,MCCistakingthisactiontohelpensurealevelplayingeldforcommercialrmsfromall
countriestocompeteforMCC-fundedcontracts.
a. AMENDMENTS
a. SectionP.A..,(c)oftheMCCProgramProcurementGuidelinesisamendedbystrikingtheexisting
textandreplacingitwiththefollowing:
TeeligibilityofGovernment-OwnedEnterprisestooergoods,works,andnon-consultant
servicesforMCC-fundedProjectswillbedeterminedinaccordancewithPart,Government-
OwnedEnterprises,oftheseGuidelines.
b. SectionP.A..;oftheMCCProgramProcurementGuidelinesisamendedbyaddingthefollowing
totheendoftherstparagraphoftheexistingsection,justbeforethesentenceTeuseofForce
Accountmaybejustiedwhere:
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro
ForpurposesoftheseGuidelinesForceAccountandtheunitsthatcarryoutForceAccount
activitieswillbedenedsolelyastheForceAccountunitsoftheGovernmentoftheMCAEntitys
country.
c. SectionP.B..,(b)oftheMCCProgramProcurementGuidelinesisamendedbystrikingtheexisting
textandreplacingitwiththefollowing:
TeeligibilityofGovernment-OwnedEnterprisestooerconsultantservicesforMCC-funded
ProjectswillbedeterminedinaccordancewithPart,Government-OwnedEnterprises,ofthese
Guidelines.
d. SectionP.B..,(c)oftheMCCProgramProcurementGuidelinesisamendedbystrikingtheexisting
textandreplacingitwiththefollowing:
Reserved.
e. TeMCCProgramProcurementGuidelinesareamendedbyinsertingAnnexofthisAmendment
asanewPartoftheGuidelines.
. GENERAL PROVISIONS
a. ExceptasexpresslyamendedbythisAmendment,allofthetermsandconditionsoftheMCC
ProgramProcurementGuidelinesremainunamendedandshallremaininfullforceandeectinac-
cordancewiththeirterms.TisAmendmentshallbelimitedasprovidedforherein,andshallnotbe
deemedtobeawaiverof,amendmentof,consentto,ormodicationofanyothertermorprovision
oftheMCCProgramProcurementGuidelines.
b. OnandafterthedateoftheProcurementNoticeassociatedwiththisAmendment,eachreference
intheMCCProgramProcurementGuidelinestotheseGuidelines,andanyotherreferencetothe
MCCProgramProcurementGuidelineswill,unlessotherwisestated,beconstruedtorefertothe
MCCProgramProcurementGuidelinesasamendedbythisAmendment.
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro 6
Annex
Part 14. Government-Owned Enterprises
P14.1 Dened Terms
Forthepurposesoftheseprovisions,thetermssetforthbelowaredenedasfollows:
P.. Government-OwnedEnterpriseorGOEisanyenterpriseestablishedforacommercialorbusiness
purposethatisownedandiorcontrolledbyaGovernment(whetherdirectlyorindirectly).
P..a Governmentmeansoneormoregovernments,includinganyagency,instrumentality,subdivisionor
otherunitofgovernmentatanylevelofjurisdiction(nationalorsubnational).
P.. ownedmeansamajorityorcontrollinginterest(whetherbyvalueorvotinginterest)ofthesharesor
otherownershipinterestoftheentityisowned(whetherdirectlyorindirectlyandwhetherthrough
duciaries,agentsorothermeans).
P.. controlledbynecessarilyisdeterminedonacase-by-casebasis,butmeansmaterialsupportfororthe
powerbyanymeanstocontrolanenterprise(regardlessof(i)thelevelofownership,or(ii)whetheror
notthepowerisexercised).Indicativecriteriarelevanttodeterminingwhetheranenterpriseiscon-
trolledbyaGovernmentinclude,butarenotlimitedto,thefollowing:
a. whetheraGovernmentholdsadirectorindirectcontrollinginterestintheenterprisescapitalor
votingrights,
b. theextenttowhichtheenterprisereceivessubsidiesandothersupportfromaGovernment,
c. whetheraGovernmenthasgrantedtotheenterpriseanyspecialorexclusivelegaloreconomicrights
orbenetsthatmayalterthecompetitivenessoftheenterprisesgoods,worksorservicesinacom-
mercialmarketorotherwiseinuencetheenterprisesbusinessdecisions,and
d. theextenttowhichaGovernmenthasthepowertodirectordecidesignicantmattersaectingthe
enterpriseincluding,butnotlimitedto,thefollowingmatters:
i. thereorganization,merger,ordissolutionoftheenterpriseortheformationoracquisitionofa
subsidiaryorotheraliateoftheenterprise,
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro ;
ii. anysale,lease,mortgage,pledge,orothertransferofanyoftheprincipalassetsoftheenterprise,
whethertangibleorintangible,andwhetherornotintheordinarycourseofbusiness,
iii.theclosing,relocation,orsubstantialalterationoftheproduction,operational,orothermaterial
activitiesoftheenterprise,
iv. theexecution,termination,ornon-fulllmentbytheenterpriseofmaterialcontracts,and
v. theappointmentordismissalofmanagers,directors,ocersorseniorpersonnelorotherpartici-
pationinthemanagementorcontroloftheenterprise.
Additionalevidenceofcontrolmaybefoundintheorganizationalhistoryoftheenterpriseregardlessof
itscurrentstatus.InsomecasesaGOEmaybeprivatizedorotherwisereorganizedinsuchmannerthat
itlosesitsstatusasaGOE.Inothercases,aGOEmaypurportedlyhavebeenprivatized,butcontinueto
receivesubsidiesorotherformsofsupportfromaGovernmenttosuchadegreethatitcaneectivelybe
consideredtobecontrolledbytheGovernment.
P..ForceAccountandtheunitsthatcarryoutForceAccountactivitieshavethemeaningspeciedinsec-
tionP.A..;oftheseGuidelines.
P14.2 Eligibility of Government-Owned Enterprises
P.a. Government-OwnedEnterprisesarenoteligibletocompeteforMCC-fundedcontracts. Accordingly,
GOEs(i)maynotbepartytoanyMCC-fundedcontractforgoods,works,orservicesprocuredthrough
anopensolicitationprocess,limitedbidding,directcontracting,orsolesourceselection,and(ii)maynot
bepre-qualiedorshortlistedforanyMCC-fundedcontractanticipatedtobeprocuredthroughthese
means.
P..a.a TisprohibitiondoesnotapplytoGovernment-ownedForceAccountunits,educationalinstitutions
andresearchcenters,oranystatistical,mappingorothertechnicalentitiesnotformedprimarilyfor
acommercialorbusinesspurpose,orwhereawaiverisgrantedbyMCCinaccordancewithPart;,
AmendmentsandWaivers,oftheseGuidelines.
P..a.NotwithstandingsectionP;.a.ofPart;,AmendmentandWaivers,oftheseGuidelines,anywaiverofthe
provisionsofthisPartwillbegrantedbytheVicePresidentforCompactOperationswiththeconcur-
renceoftheVicePresidentandGeneralCounselandtheVicePresidentforPolicyandEvaluationand
followingnoticetotheOceoftheChiefExecutiveOcer.
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro 8
P14.3 Compliance and Penalties
P.. Eachentitysubmittingabidorproposal,orparticipatinginanypre-qualicationorshortlistingprocess,
foranyMCC-fundedcontractmustmake,aspartofitsbidorproposal,acertication,informand
substancesatisfactorytoMCC,thatitisnotaGOE.Tiscerticationwillincludethecompletionofa
checklistiquestionnairebaseduponthedenitionofownedandthecriteriasetoutinthedenitionof
controlledbyinsectionP.aboveandwillincludeanysupportingdocumentationasMCCmay,from
timetotime,require.
P..a AspartofanMCAEntitysobligationtoconrmeligibilityofentitiesinconnectionwiththeexami-
nationofbidsforprocurementsforgoods,worksandnon-consultantservicesandofproposalsfor
consultantservicesforanyMCC-fundedcontract,theMCAEntitywillreviewthecerticationand
anysupportingmaterialsubmittedbyeachentitysubmittingabidorproposalinaccordancewiththe
immediatelyprecedingclauseP...Iftheprocurementbeginswithapre-qualicationofbiddersor
shortlistingofconsultants,theMCAEntitywillhavethesameobligationtoconrmeligibilityofeach
entityqualiedorshortlisted.
P.. PriortoannouncingthewinningbidderorconsultantinaprocurementrelatedtoanyMCC-fundedcon-
tract,oranylistofpre-qualiedbiddersorshortlistedconsultantsinrespectofacontemplatedprocure-
mentrelatedtoanyMCC-fundedcontract,theMCAEntitywillverifytheeligibilityofsuchbidder(s)or
consultant(s)withMCC.MCCwillmaintainadatabase(internally,throughsubscriptionservices,or
both)ofknownGOEsandeachwinningorpre-qualiedbidderandwinningorshortlistedconsultant
willbecomparedagainstthedatabaseandsubjecttosuchfurtherduediligenceasMCCmaydetermine
necessaryunderthecircumstances,priortothewinningbidderorconsultantbeingannounced.
P.. AnyviolationoftheprovisionsofthisPartbyanyentitysubmittingabidorproposal,orparticipating
inanypre-qualicationorshortlistingprocess,foranyMCC-fundedcontractmaybedeemedafraudu-
lentpracticeforpurposesoftheseGuidelinesandanyotherapplicableMCCpolicyorguidance,includ-
ingMCCsPolicyonPreventing,DetectingandRemediatingFraudandCorruptioninMCCOperations.
P.. AnyentitythatisdeterminedbyMCCtohaveorganizeditself,subcontractedanypartofitsMCC-
fundedcontract,orotherwiseassociateditselfwithanyotherentityforthepurposeof,orwiththeactual
orpotentialeectof,avoidingorotherwisesubvertingtheprovisionsofthisPartmaybedeemedto
beaGOEforallpurposesoftheseandotherprovisionsoftheseGuidelines.
P..6 AnyreasonableallegationthatanyentitysubmittingabidorproposalforanyMCC-fundedcontract
hasviolatedtheprovisionsofthisPartshallbesubjecttoreviewinabidchallengeinaccordancewith
theseGuidelinesandtheMCAEntitysBidChallengeSystem.
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro ,
InsertthefollowingIndexofInterimAmendmentsinthefrontofcopiesofthePPG.
MCC Program
Procurement Guidelines
(// Version)
Index of Interim Amendments
Interim Amendment Issue Date
zo1o-oo1(MaterialInterimAmendment) Septemberz,zo1o

Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro ro

Attachment :
Standard Bidding Document Changes
TefollowingchangesshallbemadetotheEnglishversionsoftheSBDspostedontheMCCwebsite.MCAs
usingtheFrenchandSpanishversionsoftheSBDsshouldmakeequivalentchangestothoseSBDs.Intheattach-
mentsbelow,wherethereisareferencesaying[AttachedtothisForm],pleaseinsertthetextfromAttachnent ,
(Governnent-Owned Enterprise Certication).
. Procurement of Consultant Services
a. Replacetextin.o.oftheInstructionstoConsultantswiththeGOEProvision(Attachnent ,ofthis
Notice)
b. ReplaceTech Forn I Technical Proposal Subnission FornwithtextinAttachnent ,ofthisNotice
a. Procurement of Goods and Services
a. Replace.aoftheInstructionstoBidderswiththeGOEProvision(Attachnent ,ofthisNotice)
b. ReplaceBSFI Bid Subnission FornwithBSFIandBSFI.IinAttachnent oofthisNotice
c. ReplaceBSFoandBSF,withtheformsBSFoandBSF,inAttachnent 8ofthisNotice
. Procurement of Small Works
a. Replace.oftheInstructionstoBidderswiththeGOEProvision(Attachnent ,ofthisNotice)
b. Replacebidform: Qualication InfornationwithtextinAttachnent ,ofthisNotice
. Procurement of Large Works
a. Replace.oftheInstructionstoBidderswiththeGOEProvision(Attachnent ,ofthisNotice)
b. ReplaceB. Bidder Infornation Forns Bidder Infornation SheetwithtextinAttachnent 8ofthis
Notice
c. ReplaceJointVentureInformationSheetwithforminAttachnent 8ofthisNotice
. Procurement of Design/Build Works
a. Replace.oftheInstructionstoBidderswiththeGOEProvision(Attachnent ,ofthisNotice)
Mateiial Inteiim Amendment aoro-oor, Septembei a;, aoro rr
b. ReplaceB. Bidder Infornation Forns Bidder Infornation SheetwithtextinAttachnent 8ofthis
Notice
c. ReplaceJointVentureInformationSheetwithforminAttachnent 8ofthisNotice
6. Pre-qualication of Works
a. Replace.oftheInstructionstoApplicantswiththenewGOEProvision(Attachnent ,ofthis
Notice)
b. ReplaceformsELI.andELI.awithtextinAttachnent ofthisNotice
2010-001-0401-02