R -- Strengthening Decentralization in Uganda Program

Reference the previous modification no.02: The presolicitation notice is further modified to read as follows: The United States Agency for International Development (USAID) intends to issue a Request for Proposals (RFP) No. 617-04-001 to implement follow-on 44-month Strengthening Decentralization in Uganda II (SDU II) activity. Local governments in Uganda, though in place and functioning, cannot fully perform all the responsibilities and duties devolved to them. This situation is further complicated by disconnects between the various planning and budgeting processes, as well as the lack of a strong interface between local governments and various elements of the community. Local governments lack capacity to forge sectoral commitments for economic growth and social services, to respond to new allocation formulas under the Fiscal Decentralization System for resource flows to the districts, and to join stakeholders to a political process for effective planning and budgeting. Increasing local revenue generation to meet rising local government staff and services needs involves a parallel challenge to Local governments to engage communities and key tax and fee payers. And, with rising opportunity for corruption in their ranks, local government must adapt to a new set of harmonized regulations for local procurement and to organize the work of Local Tender Boards so as to assure public transparency. Success in addressing these problems will make local governments trusted agents in the redistribution of Central Government transfers, as well as locally generated revenue. USAID has already invested greatly in establishing a strategic framework and creating the enabling processes to support decentralization. We now move into a critical period in which lessons learned must be applied to the broad base of local government across the country. USAID has identified a select set of critical areas for active engagement which include: planning and budgeting for fiscal decentralization, local procurement processes (including anti corruption), local revenue generation and support of key USAID sectoral priorities at the local level, specifically HIV/AIDS, Health and Education, and 2. enabling activities that strengthen community and Community Based Organization (CBO) linkages with local government, provide effective tools for management, capacity building and service delivery and ultimately contribute to expansion of the democratic base of local governance. Funds are not presently available for this contract. The Government's obligation under this contract is contingent upon availability of appropriated FY2004 funds from which payment for contract purposes can be made. The anticipated date for issuance of the RFP is changed to November 21, 2003.