Flexible contracting structures like the one used for the policy technical assistance component can lead to support being nimble and responsive to government needs. The contract structure for technical assistance set an overall theme of private-sector orientation for assistance to be provided, but then allowed specific tasks to be set within that theme on an annual basis. As the government’s needs changed over time this mechanism allowed MCC to react to those changing programmatic needs flexibly. The grant manager contract was also structured to retain a pool of experts that the manager could draw on as needed, thereby expanding the range of available expertise, and reducing costs compared to a more rigid model of hiring fixed key personnel. MCC is already leveraging this lesson by building flexible contracting into Human and Community Development projects through the use of flexible technical assistance mechanisms such as “unpriced option year” contracts. Such flexible contracts can lead to increased engagement with government over time, by providing decision points for course correction during the program. This engagement led to increased buy-in at the policy dialogue level and ultimately strengthened government relationships with the private sector.
Lesson Learned