Establishment of a Supply Support Agreements (SSA) for Procurement of PAF Weapons and Equipment

April 17, 1980

LETTER OF INSTRUCTIONS NO. 1008

WHEREAS, the Philippine Air Force (PAF) weapons system and related aerospace ground equipment are either US or foreign manufactured and the PAF continues 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 for the operation and maintenance of the fleet; casia

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: casia

1. Supply Support Agreements (SSA) with foreign manufacturers or their 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 ground 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; cd

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 program 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' requirements 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. acd

DONE in the City of Manila, this 17th day of April, in the year of Our Lord, Nineteen Hundred and Eighty. cd