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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1008 |
The Minister of the Budget
The Chief of Staff, Armed Forces of their
Philippines The Chairman, Commission on Audit
WHEREAS, the procurement system utilizing local representatives or middlemen has resulted in increased acquisition costs for various defense articles needed to keep the weapon system in a high state of operational readiness;
WHEREAS, the unreasonable delays in obtaining procurement authority for various logistics requirements would adversely affect the operational effectiveness of the PAF;
WHEREAS, the routine requirements for such weapons systems and aerospace ground equipment are determinable and programmable, and are duly funded in the annual PAF operating budget;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby Order and Instruct:
1.
Supply Support Agreements (SSA) with foreign manufacturers or duly
authorized sole distributor on any item of supply shall be established
with the approval of the President to meet routine and recurring
logistics requirements for defense articles to operate and maintain
existing weapons systems and aerospace equipment of the PAF;
2. Funds
support for the procurement of such defense articles shall be included
in the annual expenditure program of the PAF and must be identified as
such among the Special Provisions of the General Appropriations Act,
without prejudice to procurement through Foreign Military Sales
Agreements;
3. Such funds
appropriated in a given fiscal year, when validly obligated in the
books of PAF, may be used to pay for deliveries received in the
succeeding fiscal year;
4. Funds
committed for the support of such procurement covering a Letter of
Credit opened for the above purpose shall not exceed the three-month
requirement for materials and supplies except as otherwise approved by
the President, and should be within the obligational ceiling of PAF for
the particular program, project or activity as authorized in the PAF
operating and must be substantially in accordance with Sec. 84 of P.D.
No. 1177;
5. Except as
provided in the PAF Special Provisions, funds committed to support
covering Letters of Credit shall not be used to acquire new weapons
systems or aerospace ground equipment not included in the present
inventory of PAF;
6.
Transactions on SSAs that do not exceed three-months' requirement are
hereby exempted from the provision of LOI No. 774;
7. Rules for
the establishment of Supply Support Agreements, including policies for
periodic review, administration and renewal of contracts shall be
promulgated by the Minister of National Defense. The implementation and
approval of the SSA is further assigned to the Minister of National
Defense;
8. All
provisions of existing Executive issuances which are in conflict with
these Instructions are hereby repealed or amended accordingly.
Done in the City of Manila, this 17th day of April, in the year of Our Lord, nineteen hundred and eighty.
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