Firm-fixed-price contracts can complicate program implementation. Implementation of the various FISP components was achieved through firm-fixed-price (FFP) contracts with private service providers. In Mozambique, as well as other early MCC Compacts, FFP contracts were a commonly used mechanism to procure project implementation services. Although FFPs can be effective tools to support budget and cost control, their disadvantage is that they do not provide donors with much control and/or flexibility over how the funds are used. Several FISP stakeholders have noted that FFP contracts were a hindrance to implementation given that that MCC and its partners were continuously grappling with various dynamic contextual and epidemiological factors affecting the program logic and design. In part because of the experiences like FISP, MCC now advises that a wider variety of contracts is considered to procure project implementation services.
Lesson Learned