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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1042 |
The Minister of the Budget
The Chief of Staff, Armed Forces of the Philippines
The Chairman, Commission on Audit
WHEREAS, it is necessary for the Philippine Air Force (PAF) to secure its requirements for aircraft parts and assembly, chemicals, petroleum, oil and lubricant products, and other supplies and materials from foreign and local suppliers;
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 their
duly authorized sole distributor on any item of supply shall be
established to meet routine and recurring logistics requirements for
defense articles to operate and maintain existing weapons systems and
aerospace ground equipment of the PAF. The implementation and approval
of these SSAs is assigned to the Minister of National Defense, who
shall however, submit a monthly report to the President on SSAs
approved or renewed.
2. Funds
support for the procurement of such defense articles shall be drawn
from the expenditure program of the PAF and must be within the limit of
appropriations for the PAF in the General Appropriations Act that are
programmed and available for the purpose.
3. Commitments
entered into for SSAs shall not aggregate, in any one year, more than
one year's requirements for materials and supplies concerned. However,
purchases of supplies and materials other than petroleum, oil and
lubricants, ammunition, and aircraft parts and assembly shall continue
to be subject to Sec. 84 of P.D. No. 1177 which limits stock on hand to
three month's requirements.
4. Except as
may be approved by the President, no funds may be used to acquire new
weapons systems or aerospace ground equipment not included in the
present inventory of PAF.
5.
Transactions on SSAs that do not exceed one year's requirements are
hereby exempted from the provisions of LOI No. 774 requiring individual
approval of releases by the President.
6. Funds
appropriated in a given fiscal year, when validity obligated on the
basis of perfected SSA contracts, may be used to pay for deliveries
received in the succeeding fiscal year.
7. The
Minister of National Defense shall promulgate rules for the
establishment of the Supply Support Agreements, including policies for
periodic review, administration and renewal of contracts.
8. Letter of
Instruction No. 1008 and 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 10th day of July, in the year of Our Lord, nineteen hundred and eighty.
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