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PAM 4-01 i PHILIPPINE ARMY MANUAL 4 - 01 QUARTERMASTER SERVICE Proponent: Office of the Army Quartermaster Issued: 06 May 2014
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PHILIPPINE ARMY MANUAL 4 - 01
QUARTERMASTER SERVICE
Proponent: Office of the Army Quartermaster Issued: 06 May 2014
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PHILIPPINE ARMY MANUAL 4-01
QUARTERMASTER SERVICE
Philippine Army Manual 4-01 (PAM 4-01) dated 06 May 2014 is promulgated on authority of the Commanding General, Philippine Army
LTGEN HERNANDO DCA IRIBERRI AFP Commanding General, Philippine Army
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PREFACE
1. This manual prescribes the doctrines and principles covering the areas of Army Quartermaster Service. It serves as ready reference for logistics officers and other personnel involved in the acquisition, delivery, acceptance and issuance of quartermaster supplies, equipment and services. This will also serves as guide in the planning, preparation, and implementation of the logistics programs of the Philippine Army.
2. This manual contains the general principles and concepts of the Army
Quartermaster Service. 3. The proponent of this manual is the Office of the Army Chief
Quartermaster. The said Office is responsible for the review and update of this publication. Users of this publication are encouraged to recommend changes and to submit comments for its improvement. Send your comments and recommendations to Doctrine Center, TRADOC, PA, Camp O’Donnell, Sta. Lucia Capas, Tarlac
4. The contents of this manual have been extracted, adapted, and modified
from the following references
AFP Manuals
AFPM 4-3 -Handbook on Logistics Management, 28 November 1996
AFPM 4-0 -Armed Forces Basic Logistics Doctrine, April 2002
AFPLOG 98-1 -Logistics Glossary, 18 November 1998
PAM 4-00 -Philippine Army Logistics, 2000 PAM 4-01 -Combat Service Support Manual- Draft, 23 Nov 2000
US Field Manual
FM 10-1 -Quartermaster Principles
FM 10-63 -Handling of Deceased Personnel in the Theaters of Operations
FM 100-10 -Combat Service Support Operations
FM 101-5 -Staff Organization and Operation FM 10-52-1 - Water Supply Point Equipment and Operations
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Other References
Property Accounting AFP Accounting Manual, Part II (Jul 1962)
NGAS Volumes I-III Manual on the New Government Accounting System for National Government Agencies HPA Letter Directive dated 22 June 2005, Subject: Implementing Guidelines on the Payment of RCA “In-Cash” and Issueance of RCA “In-Kind” for CY 2005. HPA SOP Nr 8 dtd 15 Sep 89, Subject: PA POL System.
HPA SOP Nr 3 dtd 03 Jul 81, Subject: Quarterly POL Program, Procurement, Allocation, Receipt and Feedback.
HPA SOP Nr 06 dtd 28 Apr 93, Subject: Management and Control of PA- Wide Strategic POL Program Stocks. Petron Handout POL Management (Fuel Products).
MOA between AFP and Petron Corporation dtd 03 Jul 97, Re-Purchase of AFP POL requirements from Petron.
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CONTENTS
Section Title Page CHAPTER 1 - INTRODUCTION 1-1 CHAPTER 2 – ARMY QUARTERMASTER SERVICE 2-1 Quartermaster Service Career Management Overview 2-7 CHAPTER 3 LOGISTICS MANAGEMENT SYSTEM
OVERVIEW 3-1
CHAPTER 4 – PROCUREMENT MANAGEMENT
SYSTEM
4-1 Introduction 4-1 4-2 Modes of Procurement 4-19 CHAPTER 5 INVENTORY MANAGEMENT SYSTEM 5-1 Accounting Forms and Reports for Inventory Taking 5-1 5-2 The AFP Inventory Task Force 5-3 5-3 Conduct of Physical Inventory 5-6 5-4 Property 5-8 5-5 Issuance and Turn-In of Supplies 5-10 5-6 Care in the Use of Equipment 5-12 5-7 Accounting Forms and Reports 5-12 CHAPTER 6 - DISTRIBUTION MANAGEMENT
SYSTEM
6-1 Introduction 6-1 6-2 Principles and Stock Control System 6-6 6-3 Distribution, Shipment, Methods, and Control 6-12 6-4 Distribution of General Supplies 6-15 CHAPTER 7 - TRANSPORTATION MANAGEMENT
SYSTEM
7-1 Fundamental Concept 7-1 7-2 Characteristics of an Ideal Terminal 7-5 7-3 Transportation and Operation 7-7 CHAPTER 8 - DISPOSAL MANAGEMENT SYSTEM
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CHAPTER 9 - COMBAT CLOTHING AND INDIVIDUAL MANAGEMENT SYSTEM
9-1
CHAPTER 10 - PA POL MANAGEMENT SYSTEM 10-1 CHAPTER 11 - GRAVES AND REGISTRATION
SERVICES 11-1
CHAPTER 12 - OTHER LOGISTICS SERVICES 12-1 CHAPTER 13 - LOGISTICS RECORDS AND
REPORTS 13-1
ANNEXES A Accounting Forms and Reports A-1 B Record of Changes B-1 C Logistics Officers Career and Training Development C-1 D Monthly e-POL Card Consumption Report D-1 Glossary Abbreviation
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CHAPTER 1 INTRODUCTION
1. General. Since the creation of the Armed forces of the Philippines, the Philippine Army had been in the forefront of fighting the enemy. First, against the external aggression of the Japanese Imperial Army in the 1940’s and hence against enemies from within. Borrowed mostly from US Army doctrine, the Philippine Army had learned the rudiments of fighting the enemy of the country. The Army had earned success in neutralizing the HUKBALAHAP. Since the early seventies, the Army has been involved in fighting the Maoist communist movement along with the resurrected Moro secessionist movement. It has also been prominently involved in successfully quelling the Moro secessionist during the Martial Law. In facing all these challenges, the Philippine Army had at least enough reference doctrines mostly borrowed from the US. For instance ranger tactics proved quite effective in fighting the communist insurgents. Our knowledge on conventional warfare also proven effective in fighting well-entrenched Muslim rebels. In the seventies, the Army was virtually confronted with war on two fronts: against the communist insurgents in Luzon and against the Muslim secessionists in Mindanao. On 21 September 1972, Martial Law was declared. It was during this critical period in the history of the country that the Philippine Army assumed the responsibility of enforcing the laws of the land. To achieve greater flexibility and power, Infantry Divisions took the place of the military areas. During the following decade, military operations supported by civic actions blocked the escalation of threats to national security. The eighties and nineties saw the Philippine Army actively assuming multi-faceted roles in addition to its primary role as defender and guardian of the state. The conduct of counter-insurgency campaigns aimed at isolating the insurgents from the civilian population meant for the Army active participation in national development. During these periods, military operations resulted in the granting of selective amnesty brought about by the government’s greater sensitivity to the plight of Muslim Filipinos in Mindanao while conducting its anti-secessionist operations. With the dawn of the new millennium, the Philippine Army has become more actively involved in non-traditional roles geared towards the achievement of socio-economic development alongside its internal security operations. In the process of attempting to shape its capabilities, it participates in the peacekeeping operations and other regional engagements of the Armed Forces of the Philippines. In the spirit of reconciliation program of the national government, it undertakes the task of integrating former rebels to its ranks. With regard to counter-terrorism, the Philippine Army takes on the significant role of the AFP’s Internal Security Operations efforts.
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The Philippine Army has always been a partner in the growth of the Filipino nation. In its many engagements, it has kept its role not only as the protector of the Filipino people but also as a partner in nation building. The Army has significantly helped steer the course towards the formation of Filipino nationhood. The Philippine Army reflects the time-honored heritage and respectable tradition of Filipino soldiery which was tempered through time by its commitment to attain the national objectives of unity and independence. It remains culturally sensitive to the Filipino people’s pursuit of a democratic way of life. Throughout history, the Philippine Army expands its roles and missions to realize the emboldened responsibility of the Armed Forces of the Philippines as the protector of the people. In the operations against the enemy, the AFP successfully employed various tactics and strategies, both in the conventional and unconventional warfare. The strategy of the enemy, however, remained typically unconventional thus compelling the military to operate along unconventional, patterns. In so doing, the AFP, therefore, has to adjust and perform organizational changes and adopt new operational concepts to counter the enemy forces. These changes have caused restudy and re- evaluation of existing concepts, doctrines and procedures in the forces in being. 2. PA Logistic Philosophy and Doctrine. Doctrine as treated in this manual shall focus on logistics management and its application within the whole context of the PA objectives and conditions on Logistics Management and those of other countries such as the United States, which differ in many respects. Some of the doctrines however, that have involved from such setting would serve as adequate premise and background for this manual. The PA Logistics has drawn most of its concepts, organizational and operational doctrines from the US logistics manuals there is hardly a synthesized written body of principles, concepts, and doctrines the PA can avail of which are originally Filipino whether in the past or present. In fact, even the current US manuals can trace back their origin only on the doctrines and principles of logistics postulated during and after World War II and supplemented by their present war experiences. However, the PA cannot and should not also adopt the US concept and doctrine entirely since situations differ,and that necessary modification has to be made to conform to the local prevailing conditions. Doctrine, as defined in the Webster dictionary may indicate a formulated theory supported by evidence, bathed or sanctioned by authority, and proposed for acceptance. Doctrine also refers to authoritative teaching accepted by a body of believers or adherents. If doctrines and principles are accepted pattern of thought in any discipline, then they must invariably be the major influence of any action emanating from such doctrines. It is now an accepted fact that in any field of logistics. One must be guided by a body of working principles or guidelines. In the military, where mistakes and inconsistencies may cost lives and enormous quantities of resources may be
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wasted, particularly during large scale operations, it is more important that there must be a clearly expressed body of principles or doctrines which are easily and plainly understandable to all planners at all levels us well as by those charged with the handling of forces deployed in the field.
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CHAPTER 2 ARMY QUARTERMASTER SERVICE
1. General. The Quartermaster Service is one of the technical services of the Army with the primary concern in the planning, coordination, supervision and control of all matters pertaining to quartermaster supplies and equipment such as: office supplies, janitorial, agricultural, embalming supplies, petroleum, oil and lubricants, individual clothing, organizational equipment and transportation services.
2. Historical Background. The Quartermaster Service was among the Technical (Staff) Service that was originally activated with the creation of the Philippine Army upon the signing of the Commonwealth Act No. 1, otherwise known as the National Defense Act, on 21 December 1935. Its functions then include feeding, clothing, equipping, sheltering, transporting and paying the military personnel. Pursuant to AFPRG 421-012-S, series of 1996, the Quartermaster Service of major services has various functions and responsibilities. The Army Chief, Quartermaster is a Technical Staff of the CG, PA under the functional supervision of Assistant Chief of Staff for Logistics, G4.
3. Meaning and Description of the Quartermaster Service Badge
a. The GREEN color of the inner circumferential border represents the Philippine Army and its logistics units.
b. The GOLD color of the outer circumferential X that bears the
Army Quartermaster Service symbolizes the growing family of Logisticians with proper logistics training.
c. The Equilateral Triangle symbolizes equitable distribution of QM
supplies and services. Likewise, the GOLD color in the inner portion means abundance.
d. The BLACK and GOLD colors at the edge of the equilateral
triangle represent the Philippine soil, which is rich and abundant in natural resources.
e. The PALAY or the rice stalk on top of the equilateral triangle
portrays the staple food of the Filipino people which is the essential food of the soldiers.
f. The COCONUT tree at the center of the equilateral triangle
symbolizes supplies and equipment wherein out of one tree, one can produce many varieties of QM products.
g. The KRIS, an ancient Malayan weapon, depicts a tool to protect
supplies and equipment.
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h. The WHEEL, which was adopted from the pre-World War II U.S.
Army Seal symbolizes transport services. i. The KEY, which was also adopted from the pre-World War II
U.S. Army, Seal describes the safety of supplies and equipment while in storage. 4. General Function: Assist the Commanding General, Philippine Army in the formulation of policies and the management of all matters pertaining of Quartermaster (QM) supplies and services.
5. Specific Functions.
a. Formulates policies, plans, procedures and systems for the
efficient management of Quartermaster resources and activities. b. Acts as commodity manager for all QM items and undertakes
the following:
1. Manages Organizational Equipment, Individual Clothing and Individual Equipment (ICIE), POL products and other QM supplies/equipment.
2. Determines POL requirement and submit proposed
Procurement Program to CG, PA thru G4, PA for approval.
3. Monitor acquisition and stocks on hand and recommends corresponding distribution plans; and
4. Monitor all issuances of QM items.
Figure 2.1 Quartermaster service badge
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c. Develops, prepares and updates PA specifications for all QM
items; and d. Act as Chairman of the PA Technical Inspection and
Acceptance Committee (PATIAC) on QM items and undertakes the following:
1. Ascertain the quality of the delivered items with reference to its Test Parameters and QM Specifications during the inspection/acceptance of items being procured, and
2. Evaluate the feedback of end-users as to the quality of
procured items and make necessary recommendation to Commodity Managers in the revision of test parameters.
e. Performs other functions as directed by the CG, PA.
6. Organization. The Army Quartermaster is organized as follows:
a. Executive Section
b. Administrative Branch
c. Petroleum, Oil and Lubricant (POL) Branch
d. Reenlistment Clothing Allowance (RCA) and Individual Clothing
and Individual Equipment (ICIE) Branch. e. Plans and Research Branch
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1 2 1 1 1 2 1 2 2 1 2 1 7. Duties and Responsibilities.
a. Chief Army Quartermaster 1) Assists the Commanding General, Philippine Army in the
formulation of policies and the management of all matters pertaining to Quartermaster supplies and service
2) Prescribes the duties of the Deputy Quartermaster
(DAQM), Executive Officer and the Chiefs Branch, and may reorganize the OAQM with the approval of the CG, PA, as necessary.
b. Deputy Army Quartermaster
1) Assists and advices the Chief, Army Quartermaster in carrying out his functions,
2) Acts as the Army Chief Quartermaster in the absence of
the incumbent; and.
3) Perform other tasks as directed by the Army Chief Quartermaster.
OACQM
EXECUTIVE
POL BR ADMIN BR RCA/ICIE BR PLANS & RESEARCH BR
Figure 2.2 Organizational Charts, Office of the Army Chief Quartermaster Service
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c. Executive Officer. 1) Directs, supervises, coordinates, and integrates the
activities of functional branches of OACQM to ensure that they are complete and coordinated to produce the intended actions,
2) Keeps the Army Chief Quartermaster informed on all
matters concerning the operations of the Office,
3) Oversees the efficient and effective operation of the Office and the performance of the prescribed duties of all Office personnel; and
4) Performs other tasks directed by the Army Chief Quartermaster.
d. Chief, Administrative Branch
1) Performs staff coordination and supervises all personnel and administrative matters of the office,
2) Provides administrative and logistical support to
functional branches, 3) Responsible for the maintenance and utilization of
supplies, equipment and facilities.
4) Administers the Maintenance and Other Operating Expenses (MOOE) of the Office,
5) Coordinates financial services for pay and allowances of
organic personnel. 6) Attends to all administrative communications and routine
matters not pertinent to any other branch, 7) Prepares updates and formulate plans and administrative
system for more efficient use of time, improved work flow and proper motivation of personnel,
8) Maintains the efficient record management and operates
the message center to ensure proper handling of all communications; and 9) Performs other tasks as directed.
e. Chief, Petroleum, Oil and Lubricants (POL) Branch
1) Prepares PA-Wide POL budget program allocation, filler
and delivery advices;
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2) Prepares the quarterly and annual status report of POL
issuances to PA Units. 3) Coordinates with offices concerned for the timely POL
releases to Field/Post Units based on the approved POL budget programs;. 4) Programs and establishes priority in the installation of
underground tanks to all PA Units.
5) Monitors the maintenance and serviceability of all underground tanks and dispensing pumps; and
6) Performs other task as directed.
f. Chief, Reenlistment Clothing Allowance (RCA) and Individual
Clothing and Individual Equipment (ICIE) Branch
1) Consolidates and analyzes reports pertaining to ICIE items;
2) Processes and validates Reenlistment Orders and
prepares RCA payrolls;
3) Coordinates tariff sizes of military personnel;
4) Coordinates with the PA-wide subordinate units for the timely submission of reenlistment orders;
5) Receives RCA reenlistment orders based on the
transmittal from PA-wide reenlisting authorities; 6) Prepares/prints RCA payrolls based on the consolidated
reenlistment orders submitted;
7) Requests fund support for payment of RCA-in-Cash and In kind based on the amount of payrolls prepared;
8) Monitors RCA stocks in the different FSSUs; 9) Monitors available stocks of CCIE and organizational
equipment for general support; and 10) Performs other tasks as directed.
g. Plans and Research Branch
1) Monitors statistical data of prevailing prices of all QM
supplies and equipment needed by the PA;
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2) Coordinates with RDC, ASCOM and other agencies in regard to the test and evaluation of Quartermaster supplies and equipment;
3) Conducts research, development and evaluation of
Quartermaster items for use of PA-wide units; 4) Conducts Technical Inspection of all Quartermaster items
procured for General Support in accordance with approved AFP specifications.;
5) Reviews, analyzes and evaluates PA Specifications and
recommends amendments when necessary;
6) Endorse samples submitted by the suppliers to RDC, ASCOM, PTRI and other testing agencies for test and evaluation to determine compliance with the approved specification;
7) Formulate and reviews policies on matters pertaining to
QM related supplies/equipment and services; and
8) Performs other as directed.
Section 2-1 QMS Career Management Overview
1. General. Every officer or enlisted personnel from the start of his military service looks forward to a progressive military career. The progression of his career will be obtained through education and training for them to perform their given assignment knowledgeably and effectively both in tactical and administrative duties wherein they can build their military career in the variety of assignments and experiences in the field or garrison duties. He must have a balance and progressive career path and ladder of command and staff duty assignments and positions from the lowest up to the highest level of positions of every QMS personnel. Likewise, a promotion system based on merit through professional standard criteria set forth by competent authority is expected in the selection of personnel to be promoted to next higher grade. In the same manner, identify ineffective QMS personnel who are not competent and suitable for promotion due to some criteria, which he/she did not meet or qualify.
2. Composition of QMS Officers and Enlisted Personnel. QMS Officers are composed of Regular and Reserve Officers. Regular Officers are appointed into the Regular Force in the commissioned officer’s grade. Their appointment is governed by GHQ, AFP Circular Nr 14, dated 10 November 1994 while Reserve Officers are those Officers who are commissioned into the Reserve Force and subsequently Call to Active Duty (CAD), Authority: RA Nr 2334 and Executive Order 79 (Security of Tenure). Likewise, Enlisted Personnel from the start of their enlistment are, selected or assigned to
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logistics duties until a formal QMS career courses or specialization training is obtained.
3. QMS AFPOS. QMS AFPOS is the field of technical specialization in QM logistics awarded to officer or enlisted Personnel upon completion of QMS career courses. Technically, QMS AFPOS corresponds to an area of expertise in logistics (QM) that qualifies him/her to hold positions or jobs for which such skills and expertise are required. This AFPOS falls under Combat Service Support (CSS) functional areas.
4. Awarding of QMS AFPOS. Initially, an Officer or Enlisted Personnel is awarded QMS AFPOS after taking Basic QMS Career Course (QMOBC) for Officers and QMNCOBC for Enlisted Personnel. It becomes the primary AFPOS after taking up QMS Advance Career Course (CLOAC) for Officers and (QMNCOAC) for enlisted personnel. 5. QMS Career Pattern and Ladder. Generally, all QMS Officers and enlisted personnel shall follow a progressive career pattern/ ladder upon entry into the service. Officers are awarded QMS AFPOS that best suits on their educational backgrounds, technical qualifications and interests. They are subsequently trained in QMS AFPOS by undergoing QMS career courses and specialization training related to logistics in preparation for their holding of Command and Staff duty positions in Combat Service Support Unit (CSSU) or Combat Support Unit (CSU) having a designation as logistics officers. In the case of Enlisted Personnel, they are positioned in logistics duties and subsequently follow the formal logistics career courses or specialization training suited for their area of interest in preparation for the progression of duty position. See Fig 1.
6. Command and Staff Duty Position for QMS Officer. Command and Staff Duty position for QMS Officer in the Combat Service Support units/offices or Combat Support units/offices shall conform to the career pattern/ ladder that progresses from the lowest to the highest echelon of Command and staff duty position of the said units/offices. 7. Command Level Position of QMS Officers. Command Level positions of QMS Officers are stratified into five(5) levels that correspond to the command duties of the Combat Service Support Unit: Platoon Leader, Combat Service Support Company Commander, Combat Service Support Battalion Commander (FSSU, SSBn, Sup Bn, ASCOM, MSP) Logistics Support Group Commander (LSG, ASCOM), and Army Support Commander (ASCOM). QMS officers are expected to go through all the CSS units command level position ascending from the lowest level up to the highest-level he/she is able to. However, he/she must satisfy a minimum term of one (1) year command duty in the lower position to qualify for the next higher position. Each level of position also has its own training and experience prerequisites for the next higher position. Alternatively, an officer could perform command duty in his Secondary AFPOS, Tertiary AFPOS, or Branch Immaterial (BI) command position, and have it accredited as an equivalent in
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his primary AFPOS. Such assignment, however, should not exceed two(2) years in a particular unit/office. 8. Staff Level Position for QMS Officers. Staff level position in like manner is stratified. The level corresponds to staff duties at the Company, Battalion, Brigade, Division, HPA, and GHQ. QMS Officers are expected to go through all the staff level positions as his primary AFPOS, ascending from the lowest staff level up to the highest staff level he/ she is able to. However, he/ she must satisfy a minimum term of one (1) year staff duty in a lower level position to qualify for the next higher staff position. Each level of position also has its own training and experience prerequisites for occupation. A QMS Officer may also perform staff duty in his/her Secondary, Tertiary or Branch Immaterial AFPOS. The assignment however, should not exceed two (2) years in a certain unit or office. 9. Education and Training. Education and Training pertains to the career of QMS officers and enlisted personnel in preparation for duty assignment or promotion. Educational requirements are to be satisfied both in military schools and civilian institutions. The QMS Basic and Advance Courses, the Army Command and General Staff Courses (CGSC) and the Joint Command and Staff Course (JCSC), on the other hand, provide opportunities for advance military leader development training. Advance education may consist of resident and/ or non-resident courses conducted by military schools, civilian colleges and universities. All QMS officers and enlisted Personnel in the active service are given equal opportunity to education and training. However, selection of officers for both PA CGSC and AFP JCSC is limited to field grade officers with priority to those who are to be assigned to position of major responsibility. PA CGSC and AFP JCSC eligibility is a mandatory requirement for position of Combat Service Support Battalion Commander and Army Support Command respectively or its equivalent positions.
10. QMS Career Courses. QMS Career Courses comprise the military education required as mandatory courses that provide opportunities for advancement in military profession as logistics Officers:
a. QMS Basic Courses are taken by officers and enlisted
Personnel. In the case of officers, following his/ her CAD/ Commission shall be the beginning of an officer’s formal entry into the military profession. It prepares officer/enlisted personnel for duty assignments as logistics officers and logistics NCO, respectively.
b. QMS Advance Course is the second major professional training.
The aim of this advance course is to prepare an Officer and Enlisted personnel to handle major responsibility. In the case of officers, to prepare to command, train and to assume Combat Service Support Company Commander and Staff position in the same level. The QMS Advance Course is also a mandatory requirement for promotion to the next higher grade.
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c. Army Command and General Staff Courses (PA GSC) prepares an officer to command a Battalion Service Support unit. Likewise, PACGC to prepare staff officer in the same level.
d. Admission to the PA CGSC is by selection. The admission
requirements and selection of officers for the course is passed upon and deliberated on by the PA Schooling Board (PASB) for approval of CG, PA.
e. Composition of the PASB: Chief of Staff, PA Chairman CG, TRADOC Member
G1, PA Member G3, PA Member G8, PA Member Service Branch Chief Member C, Educ & Trng Sec, OG1 Member
f. AFP Joint Command and Staff Course (AFPJCSC) prepare QMS Officer to command Army Support Command (ASCOM) and its equivalent position. AFPJCSC also prepares as Joint Staff Officers at GHQ like J4, AFP.
g. Selection of Officers for AFPJCSC shall be limited to Field Grade Officers projected to occupy positions requiring JCSC eligibility. It is passed upon and deliberated on by the PA Schooling Board (PASB) for approval of CG, PA and favorably endorsed to Joint Command and Staff College, GHQ.
h. QMS Specialization Courses is a broad spectrum that
specializes on courses to support Officers and Enlisted personnel career development. This specialization maybe taken by officers / EP regardless of their AFPOS. Examples are Computer Operator and Intelligence Specialization courses.
i. Logistics Seminars and Workshop are designed to revise
and update the knowledge of officers and enlisted personnel on logistics being the primary duties in their respective units/ offices. It includes researches and studies conducted in pursuit of its objectives.
j. Logistics Courses in Foreign Schools - Education and training
play an important role not only in the career development of an individual officer and enlisted personnel but also in the professionalization in the service. By improving the quality of its personnel through education, the Office of the
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Chief Quartermaster hopes and moves forward to meet the future challenges in logistics.
In this regard, officers and enlisted personnel are sent abroad to
attend courses, seminars, and exposure tours, in order for them to acquire the latest operational and organizational concepts and techniques. This is also to maximize the gains that could be derived from the attendance of such activities. It is important that may the best-qualified officers and enlisted personnel are sent abroad for schooling. For this reason, a special set of criteria is being applied in the selection of officer and enlisted personnel for logistics foreign schooling.
k. After completion of logistics courses in foreign schooling, an officer/enlisted personnel is assigned to a military training institution or a position, where the knowledge and skills that he/ she has acquired can be best utilized for a prescribed number of years. In case the officer is projected for a staff duty position, a strong justification must be made for approval of CG, PA. Officers are assigned to this training institution six (6) months prior to the scheduled convening date of their courses to facilitate their future utilization. After their foreign schooling, officers and enlisted personnel are assigned to the military training institution for at least eighteen (18) months.
l. Career courses taken abroad may be accredited as an
equivalent of their local logistics counterpart courses. However, no graduates of a foreign career course may be given accreditation for the same unless he/she has completed the prerequisite on logistics career courses, Accreditation is initiated through a formal written request, addressed to CG, PA (Attn: CO, Army Personnel Management Center), through channel indorsed by their respective unit Commanders/ Chiefs of Office. Request for accreditation should pass through the PA Education and Training Board (PAETB) for deliberation.
m. Composition of the PAETB as follows:
G8, PA Chairman Deputy, TRADOC Member Asst Comdr, CGSC Member G1, PA Member G3, PA Member G5, PA Member G10, PA Member C, Trng Standard Br, OG8 Member 2- Co- Opted Member
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11. Deferment of QMS Schooling. Officers and Enlisted personnel are expected to complete their career courses as programmed by the Army Personnel Management Center. However, there are cases when an officer/ enlisted personnel may not be able to report for schooling, hence, a request for deferment of the schooling is necessary. Although it is discouraged, deferment of schooling may be allowed under exceptional circumstances. Request for deferment is only acknowledged if made official through a formal written request by the officer/ enlisted personnel concerned indorsed by unit Commander/Chief of Office. Such request must reach office of the CG, PA (Attn: CO, Army Personnel Management Center) through channel not later than thirty (30) days before the convening date of the course.
Action of the School on Failure to Report for QMS Schooling
The school marks as absent without Leave (AWOL) an Officer/ EP
who refuses or fails to report for schooling without valid or justifiable reason. He or she must be investigated and only permitted to take the same upon the settlement of his or her case. They will also lose his or her priority in the succeeding programming of the career course.
Failure in Schooling Duties
An officer/ enlisted personnel who fails “Schooling Duties” because of hospitalization or physical disability are given the opportunity to retake the course or related courses provided that he/ she has no failing grades. In case of officers, those who fail because of academic deficiencies, misconduct, breach of discipline and the like are referred to the PA Efficiency and Separation Board (PAESB) for proper disposition.
Failure on Entrance Examination for PA CGSC/AFP JCSC of QMS Officers
QMS Officer who fails in the entrance examination for PA CGSC/ AFP JCSC for two (2) consecutive times is referred to the PAESB for proper disposition. 12. Assignment of QMS Officers and Enlisted Personnel. QMS officers and enlisted personnel career ladder is essentially a progression of assignment. It prescribes the ideal direction that QMS officers and enlisted personnel must take to maintain a progressive and balance military career. Assignment, however, is not purely a matter of personal choice but is largely based on rank, vacancies, qualification, and capability to perform the duties for the given position in a unit/ office. In general, QMS officers and enlisted personnel are assigned only to QMS positions. In case this is not possible, he/she maybe assigned to position falling on his or her secondary, tertiary and branch immaterial AFPOS.
Minimum and Maximum Term of Assignment for QMS Officers / enlisted personnel in a Unit / Office.
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To maximize the experience that can be derived from an assignment
and to provide meaningful contribution to a unit or office, a QMS officer should hold a particular position or assignment for a minimum of not less than one (1) year, however, he or she also must not hold a position or assignment for more than three (3) years to give others, the opportunity to hold the same. In the case of enlisted personnel, a minimum of two (2) years and a maximum of four (4) years shall be assigned in a certain unit or office.
Command and Staff duty Assignment of QMS Officers
Assignment of QMS officers to a certain units or offices follows two (2) distinct paths (Command and Staff). Assignment in both command and staff position shall be on a “best qualified” basis. A QMS officer has its own logistics training and experience requirements for both command and staff positions that must be met.
Geographical Assignment of QMS Officers and Enlisted Personnel
Tactical proficiency is one of the hallmarks of professional officers/ enlisted personnel. To have a mastery of area of operation and to gain familiarity with the country’s four geographical assignment he or she must have assignment in Luzon, Visayas, Mindanao and NCR. By satisfying this geographical assignment, they will be able to acquire broad knowledge and experience that can greatly contribute to the performance of their duties in the accomplishment of a given mission. The prescribed posting numbers of years for each geographical assignment are as follows: Luzon – three(3) years & nine(9) mos, Visayas – three(3) years & nine(9) mos, Mindanao – three(3) years & nine(9) mos & NCR – four(4) years. 13. Instructor Duty Assignment of QMS Officers. QMS officers are also leaders, who are capable of molding the character and attitude of their troops to conform to the existing standard and satisfy administrative and operational requirements. To be successful, an officer must be able to effectively communicate and teach their troops on a broad range of subjects so that they can be able to hone their teaching skills by serving as instructors in any Combat Service Support School (CSSS) of TRADOC, ATGS of Infantry Divisions and RESCOM as Commandant/ instructors. Apart from contributing to leader development, instructor duty also allows valuable knowledge acquired through years on the job experience and extensive training that can be applied when they are already assigned to units or offices after instructor duty assignment. Instructor duty shall have a maximum four(4) years cumulative duty.
Rotation of Assignment of Officers/ Enlisted Personnel to GHQ.
Army personnel, particularly QMS Officers are expected to actively take part in the formulation and implementation of AFP policies and programs. Part of this role is best accomplished through the assignment of QMS Officers to GHQ, AFP-Wide Support Units and Area Commands as
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Logistics Officers. However, a maximum of accumulated tour of duty for three (3) years is prescribed for GHQ assignment and rotated back to the Army. Assignment Process of QMS officers or enlisted personnel from unit or office to another unit or office.
The assignment process begins with the request from the unit or office.
This request is referred to the Career Adviser, Army Personnel Management Center (APMC) who in turn shall determine for such assignment based on rank, qualification, previous assignments or positions, geographical assignment completed and more importantly, there is an assignment or position to be filled-up or vacated position that the requesting party is highly qualified having an AFPOS of QMS. The request for assignment must also have an approval of losing unit or office by submitting Availability for Transfer and approval of the gaining unit/ office by submitting accommodation specifying the projected logistics position for the requesting officer. Army Personnel Management Center then will recommend to G1, PA the result of evaluation of said request of assignment for approval of CG, PA in line with existing policy. General Rule
a. No orders of training (local or foreign), reassignment of QMS
Officers/ Enlisted personnel shall henceforth be issued without the concurrence of Army Personnel Management (APMC).
b. Respective unit/ office shall communicate to the Army Personnel
Management Center whenever a QMS officer assigned that unit/ office is to be relieved for attaining a maximum of three (3) years of assignment and/ or an officer is to be relieved because of unsatisfactory performance. This must be requested three (3) months before the maximum number of years prescribed therein so that APMC shall have the lead-time in recommending appropriate replacement to G1, PA for approval of CG, PA.
14. Promotion of QMS Officers and Enlisted Personnel.
a. Promotion of QMS Officers.
QMS Officers are always expected to be promoted or appointed to higher grades. The selection for promotion, however, is not arbitrary but based on certain merits or qualifications set by the Army Promotion Board. The set of promotion criteria is a part of a competitive selection process, which ensures the advancement of the best officers who have demonstrated potentials. The promotion of Army QMS Officers is governed by GHQ, AFP SOP Nr 10 Series 1995.
b. Promotion/ Selection Boards.
Promotion or selection is conducted fairly and equitably by the boards composed of mature and experienced senior officers. The Boards review the entire performance and official records of every QMS officers being
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considered for promotion. Selection Board recommends those QMS officers who, in the collective judgments of the Board, are the best qualified for promotion. The PA constitutes the following Selection Boards to act on the promotion of Army Officers to include QMS Officers:
PA Selection Board “A” – For promotion to 05 (Lieutenant Colonel) PA Selection Board “B” – For promotion to 04 (Major) PA Selection Board “C” – For promotion to 03 (Captain) PA Selection Board “D” – For promotion to 02(First Lieutenant)
For appointment to the grades/ ranks of 06 (Colonel) and 07 (Brigadier General), a Board of Senior Officers (PABSO) is created to assist CG, PA in the selection and evaluation of candidates.
On the other hand, the AFP Board or Generals (AFPBOG) assist the
Secretary of National Defense (SND) in selecting candidates, who are best qualified to hold the grades of 06 and 07 QMS Officers.
c. Time-In-Grade of QMS Officers
Time-In-Grade (TIG) refers to the period of active service rendered by QMS officers in a particular rank. It is among the criteria for selecting QMS Officer for promotion. The requirement of TIG, among others, serves the following purposes:
1) Allow an officer to gain maturity and experience in a particular rank;
2) Provide an officer with sufficient time to demonstrate his
potential;
3) Promote career development as it provides some degree of predictability;
4) Maintain a rank structure that matches organizational requirements. Maximum Service-In-Grade of QMS Officers
5) The imposition of a maximum service-in-grade is
prescribed by Presidential Decree 1638 as amended by PD 1650. Ideally, an officer must advance to the next grade before he/ she reaches limits of service-in-grade. In case an officer is neither recommended for promotion, nor for attrition, he or she is recommended for lengthening of active service-in-grade in succeeding year.
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CHAPTER 3 LOGISTICS MANAGEMENT SYSTEM OVERVIEW
“Amateurs discuss tactics... Professional soldiers study logistics.”
- Old Military Saying
1. Definition of Logistics. Logistics is an important aspect of the AFP. It is a system established to effectively discharge and dispense supplies and materiel essential in the delivery of its mandate. A logistics operation is defined as the organization of supplies and services. The civilian logistics economy, although employing similarly complex systems and procedures, may not equal the responsibility and concept of military logistics.
Fundamentally, military logistics operation is concerned with the total sustainment of troops, whether in times of war, conflict or peacetime. Taken operationally, it is the process of planning and executing the supply, movement and maintenance. It includes design, development, acquisition, storage, movement, equipage, distribution and disposal (LOG Glossary, 1998).
Taking off from this definition, logistics requires the responsibility of
dispensing sound decisions expedient in the success of every military operation. Inasmuch as logistics is a major decision-making activity laying sizeable resources on the line, it requires not only awareness of institutional and national circumstances but also a basic understanding of the ramifications of law arising from each decision.
It is often heard from experienced logisticians or even those who had a
brief hand on it that “Logistics is the military aspect of the national economy and in the same manner it is the economic aspect of the military”. True indeed, for logistics deals with the affair of transforming national resource into combat capability.
2. National Resource and Combat Capability. The dispensation of logistics requirement and supplies is one that is characterized by both simplicity and in most instances, complexity. Logistics may revolve around simple tasks such as the purchase of office supplies, to the more complicated management of high-end military equipment.
The AFP Logistics is divided into five functional categories. This
includes supply, transportation, maintenance, facilities, and services. An integrated perspective in the application of these rudimentary functions often spells the success and efficiency of every staged operation. Yet apart from this, logistics require from a logistician, awareness that his or her concern is both a science and art.
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3. Logistics as Science and Art. Logistics is a science, in a sense that its application is founded upon workable body of facts and principles from which deductions and prediction are made. Although war in itself is characterized by uncertainty, there are aspects in supply planning and movement which are rather constant or even passive. An example of this is the time and the distance of source from recipient. Given accurate and dependable information, these constant war-fighting aspects allow for calculation and prediction. For instance, the cost of supply and materiel movement could be estimated, either to take advantage of the time factor, to deliver supplies right on time, or to optimize available mobility resources in the effective delivery of determined requirements.
On the other end, logistics is an art because it entails a gut feeling of what works and what does not. Although logistics may require degree of calculability, the uncertainty of war sets the discharge of logistics functions into an “artful expression” of experiential judgment and intuition. It requires from the commander, a practical mindset, taking into consideration the basic possible ways and means to deliver supplies to recipients at the best possible time. 4. Principles of Logistics Support.
a. Responsiveness. The main goal of AFP logistics,this is the ability of the system to provide adequate supply support at the right time and place in order that a staged operation is effectively carried out and sustained. This capacity normally measures up how well a logistics system is being implemented and executed.
b. Simplicity. The efficiency of the logistics system is a well-
fostered complexity of procedures and policies which are kept to a minimum Standardization of procedures and establishment of explicit and clear priorities can simplify logistics support operation and control.
c. Flexibility. This is the adaptability of established logistics
structure and procedures to changing situations, missions, and concept of operation. Programs and budget resources must continually be adjusted to balance support within changing conditions. Plans and operations should be flexible enough so that adequate supports are delivered just at the right time.
d. Economy. It is a given fact that a great deal of national resource is being poured into every military campaign. An efficient logistics system thus seeks to deliver requirements at the most strategic time and place at a minimal cost possible
e. Attainability. This is the ability of the organization to supply and
equip its forces with essential war fighting requirements all throughout the duration of a military operation. This could be achieved through effective short term and long term planning. The capability of commander to project and anticipate the needed requirements from the time a campaign is being staged
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and all throughout the entire operation defines the attainability of military success.
f. Survivability. All military campaigns has the risk of damaging military resources. Bases and installations are likely targets of attack from the enemy. Thus, the AFP employs effective measures to protect its own force and war fighting resources. The allocation of reserve and alternate sources in times of crisis and emergency ensures the survivability of the institution. 5. Logistics and Doctrine. “Doctrine provides a military organization with a common philosophy, a common language, a common purpose, and a unity of effort” -General George A. Decker, USA.
Considering the very nature of logistics, it is important that a clear philosophy and doctrine is set to establish a sound and consistent logistics performance. To effectively extend efficient combat support at all levels, military logistics is thus founded upon a body of principles, which forms the basis for efficiency.
Doctrine, in the broadest sense, refers to set of formulated theories,
supported by evidence and sanctioned by authority. It is a body of principles based on knowledge gained from experience, study, analysis, test, and is considered as the best way of doing things at a given time and circumstance.
From the vista of military logistics, it is taken to mean as “an
authoritative statement of principles for the employment of military resources designed for the continuing capability in war and peace.”
6. Levels of Doctrine.
a. Strategic Doctrine states the fundamental principles for the employment o forces to attain national defense objectives in peace and war.
b. Operational Doctrine establishes principles, rules, governing
organization, direction and employment of forces in the accomplishment of basic combat operational missions in conventional and unconventional warfare, counter insurgency, special operations and various military tasks consonant with military preparedness.
c. Tactical Doctrine establishes detailed tactics, techniques and
procedures that guide the use of specific weapons to accomplish specific objectives. 7. Basic Logistics Doctrine. Doctrine as a guide for the efficient conduct of military affairs is most effective when applied in the most appropriate time and circumstance. Some doctrines may only be applicable in particular instances and may be inadequate in some, thus it is important to view doctrine only as a guide and not as the only means to an end. Doctrine is not
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a rule etched in stone thus it may not be observed when deemed inadequate to particular situations. To note, the relevance of the logistics doctrine laid out in this manual should be seen from a strategic point of view. The following are the rudimentary logistics doctrines applied in AFP logistics:
a. Critical-Item Management - holds that all critical items relevant
in military operations are to be managed separately so that full attention is given in the procurement, distribution and disposal of these items, among the items considered critical in AFP inventory are: ammunition, POL, equipment (weaponry, mobility, and communication), combat ration transport services, and equipment rebuild. To simplify the management of these items, central control is exercised by the Deputy Chief of Staff for Logistics.
b. User-Producer Philosophy - holds that there has to be an
efficient link between the user (combat units) and producer (national defense industry) of materiel and supplies to establish a relationship of mutual dependency. In this case, the producers rely from the requirements specified from the tactical level, and the users on the capability of the producers to generate items and materiel pertinent to every tactical commitment.
c. Commodity Managership - The AFP maintains a “single-
manager” assignment system wherein a specific manager/office is assigned the responsibility for the detailed materiel management of AFP weapons systems, equipment, supplies and facilities. By organizing offices according to commodity groupings, responsibilities are clearly delineated taking management control to an optimum level.
Military items are managed according to commodity groups which include aircrafts, ships, weapons systems, vehicles, electronics, medical and dental supplies, POL and ammunition.
d. Outsourcing Philosophy - The AFP adopts this philosophy in an
effort to maximize its human as well as its physical resources. Outsourcing, which is a trend in civilian economy, holds that non-core functions should be relegated to other private firms so that a company may take functional role of concentrating its time and resources into its core capabilities.
The AFP, whose main concern is the preservation of national
territory and sovereignty focuses on the development of its force for the purpose of effectively delivering its mandate, all other functions or services which are not in any way pertinent to its core functions, may thus be outsourced from the private sector. 8. Logistics and War Fighting.
Logistics support encompasses all supply requirements relevant to the military institution. Although logistics support is extended during peacetime, it is in times of war and conflict that logistics support is considered most crucial. It has been said, logistics defines the success of a military campaign. A half-
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baked-plan, without considering the basic elements of war fighting renders logistics support ineffective.
a. Uncertainty. Uncertainty hails from the fact that in every staged military operation there are unknown fields of operational environments and circumstances which might not be recognized at the outset. During the planning stage, logisticians usually consider a low uncertainty level when it comes to logistic capability, but as military campaign situations become variable, the manning and equipping of forces then becomes difficult to manage.
It is in times of war that the military institution is faced with
conflicting, demands. Without a clear and explicit resolve to build priorities, commanders are often left in .a difficulty of balancing benefits. The desire for absolute certainty, limited time in which to respond, and the need to maintain operational tempo are in conflict which may only be resolved by accepting and dealing with varying degrees of uncertainty. By employing a thorough intelligence, integrated planning process and synchronization of priorities at al levels, uncertainty may be reduced to a minimum level.
b. Time. Time is certainly not a luxury in war fighting. At all times,
AFP Logistics should employ measures in order to effectively plan, decide, execute an assess operations in a rapid and flexible process. Within the AFP system, these capabilities are effectively employed through the use of effective information and communication flow. To maximize time and contribute to the efficiency of the AFP logistics system, Logistics Management Information System (LMIS) has been established. This will automate the entire AFP logistics system as it kicks off to full operational gear.
c. Tempo. An effective military campaign takes tempo as one of its
most important consideration in war fighting. Tempo is the capacity of the logistics system to maintain a constant, uninterrupted operational rhythm, leaving the enemy with no time to reflect, reorganize and react. To ensure that operational rhythm is maintained, logisticians must anticipate when and where support must occur taking into consideration some other aspects of battlefield activities.
Logistics is a critical aspect of war. It defines the kind and type of
operations, which our nation could wage against its aggressors. The efficient discharge of logistics, although mainly stemming from the capacity of the national economy to fiscally sustain its defense force, also largely dependson the ability of its commanders and planners to effectively juggle conflicting priorities and interests. It is then important that a clear and integrated perspective is taken by each of the logistics personnel, taking into consideration prevailing conditions and important war fighting aspects to mount a truly responsive logistics support.
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9. Functional Areas of Logistics.
The AFP Logistics system encompasses five (5) major functional areas. These are supply, maintenance transportation, facilities and services. 10. Supply. Supply is an essential part of logistics operations. It covers three basic responsibilities that characterize logistics; It includes procurement, inventory management and distribution. Apart from these supply is also concerned with storage, maintenance and disposal of items that are no longer in need. As the focal point or logistics management, supply functions in such a way that a good deal of considerations, ranging from policies, procedures and practices are well into account taken of. A successful logistics system is characterized by the capacity of the system to express demand, and how the very system satisfies this demand. The expression and satisfaction of such demands are essential matters of supply appropriations. It is a responsibility, that rests in the hands of logistics planners who carefully plans and advances proposals to meet the supply needs of the combat forces. Since supply planning depends heavily on assumptions concerning field usage and demand, every logistics commander must then have a sense of user needs to be able to establish reliable projections of combat support needs and losses. From a strategic standpoint, this enhances troop capability and morale as it allows optimum advantage from the other limited fiscal resources. 11. The Supply Process
The entire concept of Logistics support is irrelevant without supply. Likewise, supply is immaterial without proper procedures and processes through which it is expended. Thus the establishment of a systematic process is essential in the successful delivery of items and materiel. The supply process primarily provides the means by which forces are equipped, transported and maintained. It consists of requirement determination, procurement, distribution, maintenance and inventory. (See fig. 31)
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12. Requirement Determination The capability to project and anticipate the amount of support and the ability to predict events that will possibly influence the demand on military resource is essential in planning or staging a military campaign. Often, these are usually difficult-to-predict events and determine the type and level of support requirements that the logistics system must provide. In this context, this section shall focus and discuss requirements in terms of manpower, facilities, materiel and logistic services. 13. Manpower Requirements. The soldier in the battlefield is the prime consideration of the AFP Logistics System. He or she is in fact, the source of the many demand placed on the shoulders of the AFP Logistics System (e.g. clothing, subsistence, housing, movement, individual weapons, and medical supplies). Alsoof critical
Figure 3.1 Supply Process
Requirement Determination
Procurement
Distribution
Maintenance
Inventory
Disposal
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importance to the logistician are the number and skill level of its personnel which strongly influence the capability and efficiency of the entire system. Requirements for personnel are calculated in gross terms for the general force guidance as reflected in the AFP Strategic Operations Planning (AFPSTROP). The determination of immediate requirement for manpower however, is a day-to-day process of balancing personnel requisitions with available manpower resources. There are two distinct processes in managing manpower. The planning and programming process are based on intelligence estimates of potential threats and on management decisions specifying force level considered adequate to counter these threats. Assignment of personnel to units is based on the evaluation of the immediate needs of units. In planning for combat service support troops, a number of variable factors influence requirements. Foremost among these is the number and types of troops to be supported, their mission, and their equipment. There are facility requirements, the peculiarities of the weather and terrain and the status of the local resources within the area of operation. The number of services troops is constrained by the troop ceiling. Within a troop ceiling, troop requirements are coordinated to achieve a balance force that can perform its mission. Logistics commanders usually find that planning isan intensive coordination process before finally arriving at the optimum configuration of available combat service support troops. 14. Facility Requirements. Facility Requirements for the forces deployed depends upon the mission and environments, but the means of satisfying these requirements greatly vary. Facilities are obtained by construction, purchase, or rental. Nearly every logistics decision has an implication on facility requirements. When troop strength are augmented, adequate living, eating, and training accommodations must be provided. When troop strengths are decreased, decisions are made concerning the economic utilization of facilities being vacated.
Each permanent installation prepares a facility master plan to support its assigned and anticipated mission. The plan is based on the Department of National Defense (DND) guidelines that state space and facility authorization for given missions (i.e. between facilities on hand and facilities authorized) as requirements. Facility requirements are programmed by specific installations and submitted annually through command channels for review and approval of the DND and GHQ, AFP. Supporting documents for basic facilities and space allowances is described in GHQ, AFP SOPs, which likewise contain the guidance for master planning and installation.
Depot maintenance makes an important contribution to meet the user needs for serviceable equipment. It is most efficiently accomplished on a production line basis, although production line cannot be effective if necessary parts are not always available throughout a cycle. Therefore, it is essential to identify repair parts, components, and other supply needed for depot
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maintenance and to reserve these stocks to insure their availability for the production line. For family housing requirements, the AFP Housing Board acts, recommends and provides the master plan and guidance to all AFP units. 15. Materiel Requirements. Operations of the AFP require a range of separate materiel items. The types and level of materiel support requirement vary depending on the environment; tactical concept, training level, and intensity of combat resources are allocated according to plans, programs, and budget and prioritize to meet threat projections. However, threats, do not occur according to plan and military responses to these threats vary, depending on conditions such as concurrent threats and the prevailing international climate. Military materiel is categorized in several ways for management purposes. One distinction is made between major and secondary item, another according to cost, and third is by supply classes.
Major items are items of such importance that require centralized individual item management throughout the supply system. This includes items which, in the opinion of the DND, require central inventory control, including procurement, central direction of distribution and central knowledge and control of assets. They are items which usually support the operation and mission of a unit. Secondary items are end items, replacement assemblies, parts and consumables either in support of personnel (e.g. food clothing) or equipment (e.g. repair parts, fuel). Cost is often considered relative to the essentiality of the mission. Those items that are very critical in cost may be “intensively managed” items (usually major weapons like tanks). Secondary items are normally divided into low, medium, or high peso value item, depending on the value of yearly demand. The third categorization segregates materiel into ten classes (see matrix).
Class I Subsistence, including gratuitous health and welfare items.
Class II Secondary item of equipment authorized in allowance tables and items of supply including expendables and consumables.(Clothing, individual equipment, tentage, tool sets and kits, hand tools, administrative and housekeeping supplies and equipment,
Class III Fuel and petroleum products. lubricants, hydraulic and insulating oils, preservatives, liquid and compressed gasses,
Table 3.1 Classes of Supplies
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chemical products, coolants, and coal.
Class IV Construction Materials, including installed equipment, and all fortification/barrier materials.
Class V Munitions including chemicals, radiological and special weapons, bombs, explosives, mines, fusers, detonators, pyrotechnics, missiles, rockets, propellers and other associated items.
Class VI Personnel demand item (non-military sales item)
Class VII Major end-item of equipment authorized in allowance table. (vehicles, tanks, launchers, mobile shops, or combination of end products, which is ready for its intended use).
Class VIII
Medical materiel and repair.
Class IX Repair parts including repairable and non-repairable (excluding medical) kits, assemblies and sub-assemblies, repairable and non-repairable, required for maintenance support of all equipment.
Class X Non-military support materiel. (e.g. agricultural and economic development; and those which are not included in Classes 1-IX.
16. 72-100 RF Management
a. Requirements determination shall be made by the Administrator for Appropriated Funds. These requirements are translated into procurement programs which are transmitted through channels, to SND for final approval.
b. Priorities for procurement - The priorities for procurement under
the 72 -100 RF, shall be initially determined by the RF Administrators base on demand data, warehouse objectives, and approved procurement programs of customer units, actual requirements submitted by customer units, and on the amount of RF ceiling available for procurement. These priorities are forwarded to the Commodity Managers for review and translated into a procurement directive to be issued at GHQ for common items of supply, and at the Major Service Headquarters, for peculiar items of Supply.
c. The receipt, storage, maintenance, control, distribution, and
disposal of 72-100 supplies shall be in accordance with existing laws, rules and. regulations.
d. The Commodity Managers shall classify those critical major
items of supply that may need control in the distribution or issuance. Items thus classified as critical or controlled shall be distributed only on issued pursuant to a directive, from the C/S, AFP, for common items, or the Major Service Commanders for their peculiar items of supplies.
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e. Dropping of assets on disposal of stocks and reinstatement of accounts stocks that become disposable because they have become excess, obsolete, and unserviceable due to damage or deterioration or stocks that are lost shall be reported and disposed of in accordance with the existing policies and procedures on disposal of properties. The corresponding allotments under object class 13 (loss of assets) shall likewise be provided for and. obligated upon receipt of the necessary authorization for dropping of asset from representative of the Commission on Audit.
f. Mark-up on sales or issuance of 72—100 supplies or resale of 72—300 stocks are allowed but shall not exceed one(1) of the purchase price selected items purchased with large discounts or at a very low price to be authorized by the C/S, AFP upon recommendation of the RF Administrators to cover operational losses due to discounted sales of supplies that are damaged, obsolete, deteriorated or expired to cover shortages. Such mark-up however, shall not result to a selling price higher that the prevailing market price. In no case Reenburseable Fund (RF) shall be allowed to increase or grow beyond the authorized ceiling.
17. Reports The following reports shall be rendered/maintained by RF Administrators, and copy furnished and DCS LOG and Commodity Managers:
a. Monthly status of the 72-100 Reimbursable Fund showing:
1) Beginning and ending balances available for certification 2) Total issues stocks taken up during the month
3) Number and amount of purchase orders certified during
the Period 4) Summary of the composition of funds reflecting the total
money value of the authorized ceiling, the stocks on hand per book, and the inventories in transit and accounts receivables.
b. Stock listing and balances of the following 72—100 and 72.300
supplies, listed alphabetically by Technical Service: 1) Fast moving – monthly 2) Slow moving – quarterly
3) Dormant, obsolete, and unserviceable-semi-annually.
c. Quarterly report of accounts receivable and decreed accounts -
deferred accounts are the issues made without direct charges against appropriation (to be updated quarterly) and. to terminate only when all deffered payments have been fully paid.
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d. Annual physical inventory of 72-100 supplies in stocks and 72-
100 Supplies for resale. e. Annual statement of ncome and drawing on authorized mark-up.
The following statement of accounts shall be rendered semi- annually by the Chief, Accountants of RF Administrators to Chief, Accountants GHQ copy furnished DCS LOG and Commodity Managers.
1) 72—100 Supplies 2) 72—300 Supplies for Resale 3) 72—400 Inventories in Transit
f. Status of Guarantee Deposits made by the major service or
units to support procurement of 72-100 supplies.
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CHAPTER 4 PROCUREMENT MANAGEMENT SYSTEM
Section 4-1 Introduction 1. General. Procurement activities in the AFP with other government agencies, form an important and sensitive interface with the general public. Billions of pesos flow from the government to the public each year through procurement activities. Procurement actions are consequently scrutinized by the Commission on Audit(COA), the Congress and the Senate and also by contractors legal counsel. Audit in such cases must be beyond approach. Therefore, the policy and legal guidance that govern this process is voluminous. Every procurement accomplished is governed by laws and regulations on government procurement AFP circulars and SOPS for the entire military organization. This chapter will provide the Philippine Army with an insight into the principles underlying procurement management and operations. Where procurement is well managed, costs are decreased and government and industry relationships are improved. At the same time, the capability to convert to production during mobilization periods can be enhanced. 2. PA Policies on Procurement
a. Procurement of supplies and services shall be in accordance
with the approved programs and established laws, rules, regulations, policies, and procedures. Deviations from approved procurement programs must be also justified.
b. Procurement of equipment and facilities must be based on a
total-system approach and life-cycle costing wherein operating cost, maintenance cost, facility support, and training cost are considered.
c. The long-term objective of attaining a self-reliant defense
posture shall be the primary consideration in the acquisition of defense materials and technology and other development thrusts of the Philippine Army
d. Conversion of any kind is absolutely forbidden.
3. The Organizational Structure.
a. Legal Reference. The IRR of RA 9184, Sections 5(m) and (q), 11, 13, and 14, and the Generic Procurement Manuals issued by the GPPB, provide the legal reference for determining the structure of the procurement organization with the AFP.
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1) The Procuring Entity — the AFP. As provided for in Section 18 of Executive Order No. 292, The Revised Administrative Code of 1987, the Armed Forces of the Philippines shall be under the supervision and control of the Department of National Defense.
In view of the foregoing and pursuant to Sec. 11 of R.A. 9184, and Sec. 2 of Executive Order No. 235, dated September 8, 2003, the Armed Forces of the Philippines (AFP) shall be considered as a decentralized tower level procuring entity of the Department of National Defense, with the Department Proper (the Office of the Secretary of National Defense and the staff units directly under it as the Head Office referred to in the Generic Procurement Manual. The Chief of Staff of the AFP (CSAFP) shall be deemed the Head of the Procuring Entity for the AFP, with respect to Government contracts pertaining to it subject to the limitations and authority delegated by E.O. 235 and the Secretary of National Defense (SND). As a general rule, the procurement function shall be centralized in the Department Proper/the Head Office), unless the SND issues a directive delegating such authority to procure to its bureaus, offices or agencies.
The following issuances currently define the authority delegated to officials of the DND and the AFP relative to the procurement function:
(a) Department Order No. 53 dated March 31, 2005, delegates the authority to approve the Annual Procurement Plan (APP) of the bureaus/agencies/offices under the DND, to the Undersecretary for Operations and the Undersecretary for Finance.
(b) Sec. 1 of Executive Order No. 235 grants the
CSAFP full authority to sign contracts of the AFP involving an amount below P50 Million.
(c) Department Order No. 165 dated September 10,
2003 grants the authority to Officials of the AFP to approve Purchase Orders/Job Orders/Work Orders/Requisitions/Contracts for the procurement of services, supplies, materials and equipment, as an amendment to D.O. 47. Refer to Annex A.
(d) A Department Order is currently proposed to be
issued to establish three (3) additional Bids and Awards Committees within the AFP for the procurement needs of the Major Services and to grant the Commanders of the Major Services the authority to sign and/or approve procurement contracts involving amounts below P25 Million.)
b. The Procurement Unit/Office The AFP Procurement Service (AFPPS):
The CSAFP shall activate the AFPPS as the procurement unit of the AFP, subject to the approval of the SND. It shall be categorized as an AFP Wide Support and Separate Unit (AFPWSSU) to be headed by an officer with a rank of Brigadier General/Commodore (SG 27).
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The AFPPS, shall have supervision and control over four (4) Procurement Centers and thirty one (31) Contracting Offices that shall implement procurement mainly through the authorized alternative modes, for the different Offices and Units of the AFP.
1) Procurement Centers. Four (4) Procurement Centers (PCs) shall be created under the AFPPS to serve the procurement needs of each of the Major Services and the GHQ. It shall be headed by an officer with a rank of Lieutenant Colonel/Commander (SG 25).
2) Contracting Offices. Contracting Offices (COs) shall be
created to undertake procurement for field units based nearest them. Each CO shall be headed by a Captain/Lieutenant Senior Grade (SG 23) Thirty-one(31) Contracting Offices shall be based in the following areas:
(a) Unified Commands (NOLCOM, Camp Aquino, SOLCOM, Camp Nakar, CENTCOM, Camp Lapu-Lapu, SOUTHCOM, Camp Navarro and WESCOM, Camp Ricarte). GHQ Procurement Center will cater to NCRCOM’s procurement requirements;
(b) Infantry Divisions 1 to 10, 53rd and 55th
Engineering Brigades and Light Armor Brigade, Camp O’ Donnell.
(c) Naval Stations (Naval Operating Base Mactan, Naval Station Zamboanga, Naval Station Puerto Princesa, Naval Base Cavite, Naval Station Poro, Naval Station Davao, and Naval Station Legaspi);
(d) Air Bases (Clark Air Base, Mactan Air Base,
Antonio Bautista Air Base, and Edwin Andrews Air Base); and
(e) AFPWSSUs (AFPMC, PMA and PSG).
c. Canvass Committees. The Canvass Committee created under DO No. 115, dated July 10, 2004, shall be established in each of the PCs and COs to handle canvass and awards of contracts/purchase orders for procurement through showing, direct contracting and negotiated procurement (except for contracts that have to be negotiated as a result of the failure of bidding) as approved in the Annual Procurement Plan (APP) of the AFP and authorized through a Resolution issued by the AFP BAC duly approved by the CSAFP. NOTE: GPM Vol. 1 recommends only the alternative procurement modes of repeat order and shopping to be undertaken by the Procurement Unit. This shall be subjected to review of the PABAC.
The Canvass/Contracting Committee shall be composed of four (4) members and a secretary, namely:
1) Chairman - Executive Officer, Procurement Center or Assistant Chief, Contracting Office;
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2) Member - Legal Office or Admin Office representative of the unit where the Procurement Center or Contracting Office is based;
3) Member- Financial Analyst of the unit where the
Procurement Center or Contracting Office is based; 4) Member - End User; and 5) Secretary of the Committee — Chief, Canvass Branch,
Procurement Center or Contracting Office NOTE 0.0.115 created Canvass Committees to undertake shopping in 93 units of the AFP. Shopping is not supported by a prior AFPBAC Resolution or CSAFP approval shall be recommended for SAFP “acceptability” after the fact if “found to be an unforeseen contingency requiring immediate purchase”.
d. Technical Inspection and Acceptance Committee (TIAC)
1) TIAC shall ensure that the items delivered are in accordance with the specifications stipulated in the procurement documents.
2) TIAC shall accept the items delivered and shall forward
the acceptance report to Procurement Center/Contracting Office.
3) TIAC shall be composed of the following:
Chairman - Commodity Manager Member - Procurement Center/Contracting Office Member - Logistics 4’s Rep Member End-User Tech Rep Member - MFO Rep
The following factors shall be considered in the selection
of personnel to be assigned to the AFPPS/PC/CO, among others:
(a) Integrity;
(b) Procurement proficiency, as shown by experience and trainings attended;
(c) Satisfactory completion In a certification program
conducted by the GPPB Technical Support Office (GPPB-TSO) or Its accredited institutions, if any;
(d) The appropriate Civil Service or AFP qualification
standards; and
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(e) The appropriate rank of the head of the procurement unit, which should be:
(1) At least a fifth-ranking permanent
employee, for the AFPPS (2) At least a third-ranking permanent
employee, for thye Procurement Center and Contracting Offices; and
(3) A permanent official of the next lower rank, if the fifth or third ranking permanent employee is not available. In designating members of the Procurement Unit / Office and the BAC
Secretariat, the CSAFP/Head of the Procuring Entity must ensure that check and balance is maintained, and procurement personnel are not given assignments that may conflict with their designation as such.
The organizational set-up for procurement In the AFP is shown in Fig. 1 and Tables I and II: (See Figure 1 and Tables I and II)
The positions indicated in Figure 1 shall be filled up using the “scrap and build” scheme, i.e., reclassification or transfer of filled Itemized positions, or abolition of vacant itemized positions and reclassification of these positions into the above positions. If the latter scheme is adopted, the equivalent Personal Services requirement should not exceed the amount generated from the abolition of vacant positions.
In the AFP, a military officer with a rank and salary grade, equivalent to or higher than the proposed civilian position in the Generic Procurement Manual, may be assigned to the Procurement Unit/Office provided that the pertinent qualification standards are met.
The CSAFP, as Head of the Procuring Entity, shall ensure that the Procurement Unit/Office will have a sufficient number of personnel who will perform the functions of the Procurement Unit, as provided in this Manual. The said unit shall be strengthened through continuous procurement training and education of the staff, and deployment of additional personnel, if necessary. The BAC Secretariat. The CSAFP shall create a Secretariat to assist the AFP BAC in the conduct of its function and to serve as its main support unit. The head of the Secretariat shall be at least a fifth ranking permanent employee or officer (a colonel or captain) of the AFP.
The head of the procuring entity shall ensure that the Secretariat is adequately staffed and strengthened by providing continuing procurement training for the personnel assigned. The Bids and Awards Committees (BAC).Executive Order No. 235, dated September 8, 2003, established a single Bids and Award Committee (BAC) In the General Headquarters (GHQ) of the AFP and granted the CSAF
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full authority to sign and approve contracts involving an amount below P50 million. This in effect established the AFP as a Procuring Entity for procurement involving an amount o below P50 million. Three (3) lower level BACs shall be created within the AFP to serve the procurement need of the Major Services (the Army, Air Force and the Navy) for contract amounts below P2 million. The delineation of their functions, authority and responsibilities within the AFP shall be In accordance with R, A. 9184 and Its IRR-A as determined and recommended by the CSAFP, and approved by the SND.
NOTE: In view of the estimated volume of procurement, the AFP has recommended for the creation of other lower level decentralized BACs. As of this writing, the DND has unofficially made known that it is likely to allow the creation of three (3) lower level BACs for the Major Services. Two alternatives are being considered by the AFP and the GPPB as to the deployment of these three(3) additional BACs within the AFP organization. BAC Members. The CSAFP, as Head of the Procuring Entity, must designate the Members of the Bids and Awards Committee (BAC) in accordance with the following rules:
1) AFP BAC: The AFPBAC must consist of at least five (5)
members and not to exceed seven (7). Of the five (5) members, three (3) must be regular members, and two (2) must be provisional members. Should the CSAFP/Head of the Procuring Entity desire to create a seven (7)-member BAC, he/she may designate two (2) additional regular members, or two (2) additional provisional members, or one (1) additional regular and provisional member.
(a) The regular members are:
(1) An officer, who is at least a third-ranking
permanent official of the procuring entity (A Major General/Rear Admiral, 08 grade), who shall also be designated as the Chairman;
(2) An officer who holds at least a fifth ranking
permanent plantilla position (A Colonel/Captain of the Navy, 06 grade), with the knowledge, experience and/or expertise in procurement who, represents the legal or administrative area of the procuring entity;
(3) An officer, who holds at least a fifth ranking
permanent plantilla position (A colonel or captain of the Navy, sixth- grade), with the knowledge, experience and/or expertise in procurement who, represents the finance area of the procuring entity.
(b) The provisional members are:
(1) Commander of concerned Major Service/GHQ Logistics Unit (i.e.: ASCOM, NSSC, NLC, ALC or GHQ & HSC),
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or Commander of concerned Procurement Center (i.e.: PAF Procurement Center; PA Procurement Center; Materiel Acquisition Division Naval Logistics Center; or GHQ & HSC to which the procurement pertains; (an officer who has technical expertise relevant to the procurement at hand, who has knowledge, experience and/or expertise In procurement); and
(2) Commander of Requesting Unit where the Procurement/Purchase Request (PR) emanated, or the Commander of Unit where the items to be procured are intended to, or their representatives. (a representative from the end user unit who has knowledge of procurement laws and procedures).
In designating the provisional members, the
Head of the Procuring Entity shall consider the types of procurement normally undertaken by them, and identify the relevant technical experts. For example, in procuring janitorial services, the technical member should be an officer of the Building Maintenance Unit.
Provisional members will only participate in
the deliberations of the BAC for procurements over which they have a direct official interest. For example, in the procurement of computers, the technical member for Information and Communications Technology (ICT) will participate in BAC deliberations together with the representative of the Project Management Office/end-user unit.
(3) The Chairman and Vice-Chairman must be
regular members of the BAC. (4) The Head of the Procuring Entity (CSAFP)
must designate the BAC Chairman, and may likewise designate the Vice-Chairman from the remaining regular members.
(5) The BAC members must be designated for
a term of one (1) year only, reckoned from the date of designation. However, the Head of the Procuring Entity may renew such designation at his discretion.
It is noted that appointment to the BAC is in
the nature of a designation, in addition to the regular duties of the subject official, and is not an appointment contemplated under the Civil Service rules.
In accordance with the thrust to professionalize the procurement organization, Heads of Procuring Entities are encouraged to re-appoint BAC members who have shown efficiency and probity in the performance of their duties.
(6) In case of retirement, separation, transfer, re-assignment, or removal of a BAC member, the Head of the Procuring Entity may designate a replacement, who shall be similarly qualified as the official
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replaced, and shall have the required ranking as provided for In RA 9184 and its IRR.
The replacement shall serve for the unexpired term. In case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. NOTE: AFPBAC Chairman’s Recommendation, 10th AFPLOG – “For the Regular and Provisional members, we consider proposing the designation of the deputies of the duly designated members as alternate members (voting members) in case of absence of the primary member to resolve the issue of quorum during AFPLBAC conferences”.
(7) The CSAFP as Head of the Procuring Entity
may suspend or remove a member of the BAC for justifiable causes, including, but not limited to, violations of the provisions of the RA 9184 or Its IRR-A.
(8) The following officers of the procuring entity
are disqualified from membership in the BAC:
The CSAFP/Head of the Procuring Entity;
The official who approves procurement transactions; and
The Chief Accountant / Head of the
Accounting Department and his/her staff, unless the Accounting Department is the end-user unit, in which case the chief Accountant, Head of the Accounting Department or his/her staff may be designated as an end-user member.
b. Multiple/Lower-Level BACs for the Major Services of the AFP
(PROPOSED)
1) The lower level BACs in the AFP must consist of at least five (5) members and not exceed seven (7). Of the five (5) members, three (3) must be regular members, and the two (2) must be provisional members. Should the Head of the Procuring Entity desire to create a seven (7)-member BAC, he/she may designate two (2) additional regular members, or two (2) additional provisional members, or one (1) additional regular and provisional member.
(a) The regular members are:
(1) An officer who is at least a third-ranking permanent official of the procuring entity (a colonel or captain), who shall be designated as the Chairman;
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(2) An officer, .who holds at least a third ranking permanent plantilla position (a major/lieutenant commander), with the knowledge, experience and/or expertise in procurement who represents the legal or administrative area of the procuring entity; and
(3) An officer, who holds at least a third ranking permanent plantilla position (a major/ lieutenant commander), with the knowledge, experience and/or expertise in procurement who represents the finance area of the procuring entity.
(b) The provisional members are:
(1) An officer who has technical expertise relevant to the procurement at hand and to the extent possible has knowledge experience and/or expertise in procurement;
(2) A representative from the end user unit who
has knowledge of procurement laws and procedures. (3) The Chairman and Vice-Chairman shall be
regular members of the BAC. (4) The Head of the Procuring Entity (CSAFP or
Major Service Commander) shall designate the AFP BAC Chairman, and may likewise designate the Vice- Chairman from the remaining regular members.
(5) The BAC members shall be designated for
a term of one (1) year only, reckoned from the date of designation. However, the Head of the Procuring Entity may renew such designation at his discretion.
It is noted that an appointment to the BAC is
in the nature of a designation, in addition to the regular duties of the subject official, and is not an appointment contemplated under the Civil Service rules
In accordance with the thrust to
professionalize the procurement organization, the heads of procuring entities are encouraged to re-appoint BAC members who have shown efficiency and probity in the performance of their duties.
(6) In case of resignation, retirement, separation, transfer, re-assignment, or removal of an 84C member, the Head of the Procuring Entity (CSAFP or Major Service Commander may designate a replacement, who shall be similarly qualified as the official replaced. The replacement shall serve for the unexpired term. In case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension.
(7) The Head of the Procuring Entity (CSAFP or
Major Service Commander) may suspend or remove a member of the BAC for
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justifiable causes, including, but not limited to, violations of the provisions of the RA 9184 or its IRR-A.
(8) The following officers of the procuring entity
are disqualified from membership in the lower level BACS of the AFP:
• The Major Service Commander; • The official who approves
procurement transactions; and • The Chief Accountant / Head of the
Accounting Unit and his/her staff, unless the Accounting Department is the end-user unit, in which case the Chief Accountant, Head of the Accounting Department or his/her staff may be designated as an end-user member.
NOTE: Attached are Annexes J and K showing two alternatives for the deployment of the lower level BACs proposed for the Major Services for the consideration of the GPPB and the SND.
c. The AFP BAC Technical Working Groups. (TWGs)
1) The AFP BAC shall create Technical Working Groups (TWGs) for each of the following Key Budgetary Units (KBUs) from a pool of officers with technical, financial and/or legal expertise to assist in the procurement process:
(a) Philippine Army, with the G4 as Chairman;
(b) Philippine Air Force, with the A4 as Chairman;
(c) Philippine Navy, with the N4 as Chairman;
(d) Philippine Military Academy, with an Officer of 06
grade level as Chairman, to be designated by the Commander.; (e) Presidential Security Group, with an Officer of 06
grade level as Chairman, to be designated by the Commander; and (f) AFP Medical Center, with an Officer of 06 grade
level, to be designated by the Commander. The Chairman of each TWG is given the authority
to select their respective members (As proposed in the AFP Logistics Directive, see NOTE) who can provide the necessary requirements for the conduct of public bidding and alternative mode of procurement. However, they shall. Include as their members the respective Supply Officer of the requesting Unit/End User and other personnel who have the technical expertise and can assist in providing the necessary requirements. The TWG shall also help in the preparation of Contracts/POs/ WOs.
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NOTE: Sec 12 of RA 9184 and its IRR stipulates that the BAC shall create a TWG. Does this mean that the determination, as to how many TWGs is necessary and the designation of their respective chairman or members should be the responsibility of the AFP BAC?
2) In creating the TWGs, the AFP BAC shall consider the
expertise required based on the nature of the procurement.
It is recommended that the TWG should have as members a representative or representatives of the end-user unit and experts in various disciplines who can handle the different aspects of the procurement at hand, namely, the technical, financial, legal, and, in certain cases, the project management aspects. The presence of the end-user representative and the above-named experts will ensure that the bid documents properly reflect the requirements of the Procuring Entity, and that the bids submitted will be rigorously evaluated.
To be able to effectively study the requirements and evaluate the bids submitted, the BAC may create several Technical Working Groups to handle different procurements, for example:
(a) a TWG for Infrastructure Projects, whose
membership shall include experts in civil works like civil engineers, an architect, an accountant or finance expert to handle the financial aspect of the procurement, etc.;
(b) a TWG for Information and Communications
Technology (ICT) projects, whose membership shall Include experts in ICT like a computer engineer, a systems analyst, a programmer, etc.;
(c) The BAC may also create a TWG for a specific
procurement, particularly if the procurement at hand is highly technical or is a major or priority project of the government.
(d) In highly meritorious cases, the procuring entity
may also engage the services of consultants in accordance with the IRR-A and Volume 4 of the Generic Procurement Manuals (subject to the availability of funds), who will assist the TWG and the BAC on the procurement at hand. For this purpose, the CSAFP/Head of the Procuring Entity shall certify that the in-house experts cannot provide adequate technical, financial, legal / project or contract management advice related to the procurement. These consultants, however, shall only have an advisory capacity, and may not vote during deliberations.
(e) Observers
(1) Purpose of the observers. To enhance the, transparency of the process, the AFPBAC is required to invite observers who shall attend and observe all stages of the procurement, especially:
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The pre-bid conference;
Opening of bids;
Bid evaluation;
Post-qualification;
Contract award; and
Special meetings of the BAC.
(2) Composition The AFPBAC must invite three
Observers, who shall be composed of
d. A COA representative; 1) At least one (1) observer who shall come from a duly
recognized private group in a sector or discipline relevant to the procurement at hand, for example:
2) For infrastructure projects. National Constructors
Associations duly recognized by the Construction Industry Authority of the Philippines (ClAP), such as, but not limited to, the Philippine Constructors Association, Inc. (PCA); and the National Constructors Association of the Philippines (NACAP); or The Philippine Institute of Civil Engineers (PICE)
3) For goods. A specific relevant chamber-member of the
Philippine Chamber of Commerce and Industry (PCCI). 4) For consulting services. A project-related professional
organization accredited or Duly recognized by the Professional Regulation Commission the (PRC) or Supreme Court, such as, but not limited to, the Philippine Institute of Civil Engineers (PICE); and the Philippine Institute of Certified Public Accountants (PICPA); or
The Confederation of Filipino Consulting
Organizations (COFILCO) 5) At least one (1) observer who shall come from an NGO.
4. Criteria for Observers from the Private Sector. In accordance with Section 13.2 of the RR-A the Observers coming from the private sector (e.g., organization of experts and NGOs) should belong to an organization duly registered with the Securities and Exchange Commission (SEC). Moreover, they should meet the following criteria:
a) Knowledge, experience or expertise in procurement or in the subject matter of the contract to be bid;
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b) Absence of direct or indirect financial interest in the contract to be bid out;
c) Belonging to an organization duly accredited by the GPPB or the PWI (to be raised before the GPPB); and
d) Any other criteria that may be determined by the BAC (for example, the BAC in decentralized units may require that the Observers should be based in the area to ensure their attendance during the meetings).
Absence of Observers. Observers will be informed at least two(2) days before the stages of procurement to which observers shall be invited: pre-bid conference; opening of bids; post-qualification; and contract award; and special meetings of the BAC. The absence of observers will not nullify the BAC proceedings provided that they have been duly invited in writing.
5. Procurement Planning
a. In the logistics management sense, materiel acquisition or
commonly referred to as procurement includes designing, determining standards, writing specifications, selecting supplies, financing, administering contracts, and performing other related functions.
b. Advanced procurement planning is the means by which the
efforts of all personnel responsible for the procurement of AFP materiel by contract are coordinated as early as possible in order to obtain required items of requisite quality on time and at the lowest reasonable price.
c. The purpose of advance procurement planning is to ensure that
these functions will perform as effectively as possible. d. Advanced procurement planning has the following specific
objectives: 1) To assure the purchase of reliable materiel of acceptable
quality; 2) To reduce the number of urgent procurements; 3) To consider total real cost; 4) To encourage computation when practicable; 5) To reduce the use of purchase orders or contracts; 6) To increase the use of fixed-price or incentive-type
contracts; and
7) To preclude unnecessary procurement.
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e. Effective advanced procurement planning requires coordination among supply, transportation, engineering, procurement, maintenance and other functional personnel, all of whom must work together as a team. Advanced procurement planning is initiated in the earliest possible lead time. Normally, the lead time will take into consideration the requirements established at each level. This data then provides notice for the economic order quantity (EOQ) of items. It involves intensive requirement analysis and the documentation of technical and operational consideration into comprehensive procurement plan.
f. Certain considerations, such as standardization of items, multi-
yea procurement, specific duplication procurement, and real cost computation procurement, should be entered into the policy determination and planning. These considerations include all operational requirements (time and mission goals), technical objectives (performance, reliability, etc), economic techniques, compliance with procurement regulations and policies. Potential conflicting interfaces and any resulting trade-off decisions must be recognized to accomplish a sound materiel procurement program.
g. Planning for management control systems will be required
during the life of the program. The management of acquisition should be included in advance procurement planning. This procedure, once established, graphically portrays realistic milestones to be met in achieving the goals of a specific program. Advance procurement planning serves as the principal long-range planning document charting the course of major procurement programs over their life cycles, and keyed to the AFP Modernization Plan.
h. Advanced procurement planning shall be considered at the
outset the overall planning for the acquisition of newly approved systems or project The Program Director and project Administrator for the materiel program concerned is responsible for advances procurement planning, which includes the concurrent updating, of the plan with each program, budget or management decision significantly affecting the plan.
6. Procurement Programs. Procurement programs are control programs which contain all logistics requirements of units or offices within their proposed or approved budgets. These logistics requirements include but are not limited to supplies and materials, services equipment and construction projects. Annual Procurement Programs shall be prepared by the major services, area commands and AFP-Wide support and separate units which shall be submitted to SND through CSAFP for approval. 7. Types of Procurement Programs.
a. A Regular Procurement Program is an itemized list which
showing estimate cost of supplies, services, equipment, and construction projects for a fiscal year planned for procurement by the Major Services, Area Commands, AFP Wide Support and Separate Units with funds allocated to them.
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b. A Supplementary Procurement Program is an itemized list of supplies services, equipment and construction projects prepared by the Major Services, Area Commands and AFP Wide support and separate units during a calendar year covered by a ceiling which has not yet been programmed.
c. An Amendatory Procurement Program is an itemized list of item
required during the calendar year in lieu of those that are deleted or cancelled from the Procurement Program previously approved at the beginning of the calendar year.
Procurement Programs for Stock/Resale items (72-100 and 72-
300 items respectively) is an itemized list of items intended for stockage/resale. AFPLC (for common items), PA, PAF, and PN (for respective peculiar items) are the procuring agencies concerned in the preparation of this type of procurement program.
d. Foreign Procurement Program, funded either through grant,
credit o local appropriations, is an itemized list of items prepared by concerned AFP units/Commands or the AFP Weapons Board to be procured from foreign sources. 8. Preparation and Submission The Annual Program intended for the ensuing calendar year shall be itemized and submitted in accordance with the following phased schedule:
a. 1st Phase. Eleven (11) months prior to Budget Year (February),
programming units/agencies shall start preparing their respective units using appropriate measure guides.
b. 2nd Phase. Nine (9) months prior to Budget Year (April),
programming units shall submit their annual logistics requirements to their logistic divisions/branches which shall review and consolidate these requirements into a Major Service, Area Command, or an AFP Wide Support and Separate Unit Procurement Program.
c. 3rd Phase.
1) Five (5) months prior to Budget Year (August), procurement is defined in accordance with the agreed budget objectives. This program refinement will be coordinated with programming units and Budget program Directors; and
2) Four (4) months prior to Budget (September), Major
Service Area Commands and AFP-Wide Support and Separate program for DND’s approval.
d. 4th Phase. DCS LOG, J4 shall inform the Commanders of the
Major Services, Area Commands, and AFP-Wide Support and Separate Units of the approval by the DND of their Procurement Programs and furnishing them with an approved copy.
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9. Preparation of Procurement Programs.
a. Procurement program for travel (02), repair and utilities (04) discretionary (18), and representation (19) supplies should be made into group items However, procurement program for construction (32) and equipment (33) should itemized by stating their general nomenclature, description and specification without putting any particular brand.
b. The total value of the procurement program should be properly
supported by fund allocations. c. Items not covered by a duly. Approved procurement program for
specific calendar year and chargeable to funds not otherwise allocated shall be covered by a duly approved supplementary procurement program or clearance from higher authorities. before procurement.
d. An Amendatory Procurement Program shall be prepared for
items not included in any, approved procurement program and which are recommended purchase in lieu of items that are included in the approved procurement program. The replace items will be correspondingly deleted upon approval of the substitution. Items derived from savings as a result of difference between the estimated prices contained in the approved procurement program and the actual purchase price shall likewise be covered by an Amendatory Procurement Program. 10. Requisites
a. The following must appear on the face of the Procurement
Program: 1) Heading — for procurement program other than a regular
one, the heading must state whether the program is supplementary or amendatory followed by the calendar year. It must appear on all pages of the program.
Example: Procurement Program CY-97 Supplementary Procurement Program CY-97 Amendatory Procurement Program CY-97
2) Procuring Agency — immediately below the heading is
the name of the preparing unit/office which is officially pages of the program. 3) Procurement Program Identification Code (PPIC) - every
Programmed for Procurement is assigned a 13-character alphanumeric code. This must be the first column of the procurement program.
4) Activity (second column). Enter the nomenclature and
technical description of the item programmed for procurement without specifying the brand Supplies and materials need not be itemized but should
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be made into group items such as Office Supplies, Janitorial Supplies, POL products, etc.
5) Object Class (third column). State the object classification
of the expenditure. 6) Benefiting Unit (fourth column). Enter the subordinate
end-user unit. 7) Implementing Unit (fifth column). Enter the name of the
preparing unit/office (Procuring Agency). 8) Quantity (sixth column). Enter the total amount or number
of each item programmed for procurement. 9) Unit of Measure (seventh column). Enter the unit of
measurement. 10) Unit Price (eight column). Enter the price per unit of
measurement. 11) Total Price (ninth column). Enter the product of the
quantity and unit price. 12) Total Amount. The total mount of the program must be
placed on the la page immediately under the last item and directly under the column “Total Price”.
13) Page Number. Each page of the procurement program
should be numbered. This must be placed at the bottom center of each page.
Example: Page of 1 Page (if it consists of only one page)
Page 1 of 20 Pages (if it consists of 20 pages)
14) Date Submitted. Enter the date of the program submitted. This must be placed at the last page of the program to the left hand side three spaces after the last item.
15) Preparing Authority. Enter the name of the head of the
procuring agency preparing and submitting the program. This must be placed on the last page three spaces below the date of submission.
16) Recommending Authority (Recommend Approval). Enter
the name of the Chief of Staff, AFP to the right hand side of the last page in line with the Preparing Authority.
17) Approving Authority. Three spaces below and in between
the names of the officer submitting and recommending the procurement program is the approving space for the Secretary of National Defense.
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b. Procurement program should be supported by the following:
1) Comparative analysis showing the amount programmed
for both previous and current fiscal year; 2) Justification as to the increase/decrease; and 3) Number of similar equipment on hand by the end-user.
c. Procurement Programs submitted by procuring agencies must
reach the DND in four (4) copies. Upon its arrival, the original and duplicate copies shall be retained with the DND Comptroller and DCS Log, j4, respectively. 11. Policies
a. The prescribed form shall use by all concerned in the
preparation of their procurement programs. b. All procurement programs shall be in accordance with the
procurement objectives of each Major Service, Area Command or AFP Wide Support and Separate Unit.
c. The AFP Procurement Center and Major Service-Wide Logistics
Unit shall prepare procurement programs for common and peculiar items, respectively, technical service commodities whenever applicable.
d. Procurement Programs shall be submitted in four (4) copies to
DND through the Chief of Staff, AFP for approval before the beginning of the fiscal year.
e. The above-mentioned units preparing the procurement program
are authorized to set aside a maximum of 5% of funds being programmed for contingency fund and add 10% for miscellaneous. This will take care of items the need for which cannot be predicted during the preparation of the program.
f. Figures to be used for programming as a basis for determining
requirements for the ending fiscal year for supplies, and services will be 85% of the amount allocated during the current year as reflected in the budget expenditures, except command and management, medical care, ground, naval or air operations, training and modernization which shall be based on 100% estimates.
g. Equipment requirements shall be priority regardless of the
amount in accordance with planned activities. h. Supplementary and mandatory procurement programs are
discouraged. However, changes may be submitted on a case-to-case basis as there are major deviations in the program.
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i. Projects, hiring of services or procurement of any item that is not
covered by DND Approved Procurement Programs shall not be considered favorably.
j. All procurement programs shall be submitted to GHQ (Attn: DCS
Log, J4) not later than 15 September of the preceding calendar year.
Section 4-2 Modes of Procurement
1. Public Bidding. Public bidding is a mode of procurement wherein the bidding for supply of a particular item is open to all interested and qualified firms in a competitive nature. A duly constituted Bid and Award Committee conducts the public bidding at the time and place designated except as otherwise provided by competent authority. Pursuant to the recurring special provisions in the Yearly Appropriations Act, the AFP is authorized to procure supplies and materials for its use without the intervention of the Procurement Service, DBM. Public bidding is to be conducted whenever purchases of supplies are materials, equipment and services are in excess of P50, 000.00. The aim of public bidding is based on the motives of public economy as follows:
a. To secure the most advantageous competitive price to the government;
b. To curtail favoritism in the award of government contracts; c. To avoid suspicion of anomalies; and d. To place bidders on equal footing.
2. Policies.
a. No contract for public service and for furnishing supplies and
non-personal service to the AFP shall be entered into or renewed without public bidding except as otherwise provided for in Executive Order Nr 301, s-1987.
b. Priority in the purchase of supplies, materials, provisions and
articles for the AFP shall be those manufactured from local materials. c. Preparation for public bidding may only commence after the
purchase request is received and funds are available for the purpose. d. Invitation to Bid (ITB) shall be given the widest publicity possible
by a combination of several or all of the following:
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1) Advertisement of a copy of the invitation to bid in the newspaper of general circulation of three (3) consecutive days.
2) Posting of copies of the invitation to bid on the bulletin board of the Procurement Service, DBM, of the requisitioning agency and at other public and conspicuous places.
3) Solicitation of bids by mail. 4) Announcement of invitation to bids by radio, telegraph,
television and other mass media. 5) Invitation to bid may be delivered in person or through a
messenger service. e. If bidding is to be postponed to a later date, a similar notice of
such postponement shall be posted not less than three (3) days prior to the opening of bids. In no case after this period shall the announced date and time be changed. Otherwise, the bidding shall be declared a failure.
f. The Auditor shall be furnished with copies of the bid invitations
at least two (2) weeks ahead of the opening date, together with a list of those who have been furnished with copies thereof, for his guidance in determining whether or not the invitation has been widely disseminated.
g. Bidders shall be required to submit their bids in at least two (2)
legible copies. Bids submitted to respond to the ITBINTB must comply with the terms, conditions, as well as with the plans and specifications required so as to be acceptable.
h. Specifications should be sufficiently precise so that bidders may
bid and their bids may be evaluated on a common basis. Specifications should not, however, be restrictive as to unnecessarily limit competition to one product or group of producers.
i. Unless a bidder is quoting exactly as per sample specifications,
or brand of the materials, he must submit with his bid the result of test or analysis from any qualified testing agency. Failure to submit with the bid such result of the test or analysis will cause the bid to be rejected.
j. All DND-authorized agencies or any of its authorized procuring
agencies reserve the right to reject any or all bids to waive any defect therein, minor or technical. The right to reject bids, however, must be based on legal and moral grounds that should redound to the advantage of the government.
k. The bids shall be opened in the presence of the Auditor
representing the COA or his authorized representative who shall act as witness only and shall not sit as member of the Bid and Award Committee of the procuring agency.
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l. Bidders bond shall be five percent(5%) of the aggregate amount involved in the bid or offer.
m. Performance bond shall be equivalent to not less than ten
percent(10%) of the total offer tendered. The bidder’s bond may be applied as part of the performance bond.
n. In open-ended contracts and/or supply arrangements, fixed
amounts of bidders bond and performance bond may be prescribed by agencies concerned depending on the aggregate amount involved in the contract.
o. Government estimates should be applied whenever it is
applicable. p. Result deliberation by the BAC should be made public to
prevent suspicion of collusion between the BAC members and the suppliers through publication or posting in conspicuous places within three (3) days from the date of deliberation.
q. Standard form shall be used in all documentation. 3. Procedures.
a. Equipment, Supplies and Services:
1) Preparation/Identification of Specifications.
2) The Technical Staff shall see to it that all authorized items
and properly identified and their specifications are written. Upon receipt of the procurement directive, the Procurement Officer shall identify and clearly define in coordination with the Cataloging Office, Technical Staff or Technical Committee at GHQ or the major Service concerned, the complete specifications shall be incorporated in the Purchase Order/Work Order or contract with the supplier or contractor.
b. Publication of Call for Bids:
1) Invitation to bid shall be given the widest publicity by combination of several or all of the following Rule 7 (b), DGS Order Nr 13.
2) Publication of Invitation to Bid. A brief announcement of
the proposed bidding or a copy of the invitation to bi shall be advertised in the newspaper of general circulation for three (3) consecutive days, the last publication of which shall be within ten (10) days before the opening of the bid.
3) Posting. Copies of invitation to bid shall be posted on the
bulletin board of the Procurement Service, of the requisitioning agency and at other public and conspicuous places.
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4) Mailing. Solicitation by mail shall be effected through the
use bidders list which shall include the Philippine Chamber of Commerce, Philippine Chamber of Industries, and other trade and business organizations.
5) Telegraph, Radio or Television. When conditions permit
announcement of invitation to bid may be made by radio, telegraph, television and other mass media.
c. Pre-Bid Conference
1) The pre-bid conference shall be called at least fifteen (15)
days before the submission of the bids for items and services locally available and thirty (30) days if the items have to be imported from abroad.
2) Announcement of changes and/or additional
requirements and clarification on the specifications and such other issues shall be made during the pre-bid conference. The Certificate of Business Name issued by the Bureau of Domestic Trade (BDT) or Certificate of Registration/Articles of Incorporation issued by the Securities and Exchange Commission (SEC) shall be required of the prospective bidders during the pre-bid conference.
3) The prepared pro-forma contract shall be discussed and
explained to the participants during this conference.
d. Prequalification of Prospective Bidders
1) In the evaluation of the qualifications of prospective bidders, the following factors shall be considered:
(a) Financial capability; (b) Satisfactory record of integrity and performance; (c) Qualification and eligibility under applicable laws
and regulations; (d) Quality of the products of the company; and (e) Capacity of the company to meet requirements of
the proposed contract. 2) A date shall be set to announce in public the qualified
bidders and the reasons for disqualification, if any. e. Receipt of Bids
1) The bids may be considered only if the bidder accepts the
terms and conditions of the invitation.
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2) Bids shall be submitted n a sealed envelope with the
name of the bidder in capital letters addressed to the Chairman, Bid and Award and Committee.
3) Bids shall be submitted in the office designated in the
Invitation to Bid (ITB) not later than the exact time set for the opening of bids. 4) Bids which are received after the exact time set for
opening are considered late bids even though they are only received only one or two minutes late. Late bids shall not be accepted.
5) Bids may be withdrawn by written notice not later than the
exact time set for opening of bids. A bid may be withdrawn in person by a bidder or his authorized representative, provided his or her identity is made known and he or she signs a receipt for the bid and only if the withdrawal is prior to the exact time set for opening of bids.
f. Opening of Bids
1) Bids shall be opened in public and in the presence of the
members of the Bid and Award Committee with a COA representative as witness.
2) Defective bid or bids inconsistent or contrary to what has
been duly clarified during the pre-bid conference shall be rejected. Rejection must, however, be based on legal and moral grounds and should redound to the best interest of all parties involved.
3) Tabulation of bid data shall be made on the most orderly
and efficient manner and in accordance with established procedures. 4) A bidder’s bond shall likewise be required on the
participating bidder during the actual public bidding. g. Rejection of Defective Bids
1) Defective or contrary to the terms and conditions set forth
in the Invitation or Notice to Bid. 2) Non-complying or not in conformity with specification
contained o referenced in the Invitation to Bid. 3) Contingent bid or a bid attempting to impose conditions
which would modify the requirements of the Invitation to Bid or limit his or her liability to the government.
4) Unbalanced or which is patently low compared with the
approved government estimate.
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h. Awarding of Contract 1) The abstract of bids duly signed by the Bid and Award
Committee shall be prepared immediately by the procurement Unit or the Secretariat.
2) The procurement officer shall forward to appropriate
authorities through the usual channels, the recommendation for award and corresponding contract not later than three (3) days after the opening bids.
3) The recommendation for the award shall definitely state
the awardee is the lowest complying bidder which has offered a price that is most reasonable. However, if the awardee is not the lowest complying bidder, proper explanation on the recommendation must be given.
4) The deliberation of the Bid and Award Committee as
regards to the recommendation for award shall be classified and all other items deliberated upon the BAC shall be made public.
i. Construction Projects
1) Detailed Engineering
(a) No bidding and/or award of contract for a
construction project shall be made unless the detailed engineering investigations, surveys and designs for the project have been sufficiently carried out in accordance with the standards and specification prescribed by the Chief of Engineers, AFP (TCE).
(b) Detailed engineering shall proceed only on the
basis of the feasibility or preliminary engineering study made, which establishes the technical viability of the project and conformance to land use and zoning guidelines prescribed by the existing laws. If, in the course of this exercise, changes were found that would be desirable in design standard or principal features, specific recommendations for changes shall be supported by detailed justifications including their cost and, if necessary the economic justification.
(c) A schedule of detailed engineering activities shall
include the following: (1) Survey; (2) Site Investigation; (3) Foundation Investigation; (4) Soils and materials Investigation; (5) Preparation for Design;
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(6) Preparation of Specifications; (7) Preparation of Quantity and Cost Estimates; (8) Preparation of Program Work;
(9) Preparation of Proposed Construction
Schedule (Estimated Cash Flow for projects with Schedule Over Six (6) Months);
(10) Preparation of Site or Right-of-Way Plans
including Schedule of Acquisition; (11) Preparation of Utility Relocation Plan; (12) Preparation and Submission of Design
Report; (13) Environmental Impact Statement for Major
Projects; and (14) Preparation of Bid or Tender Documents
(d) Work under detailed engineering shall include but
not necessarily be limited to the following: (1) Design Standards — Design standards
shall be in accordance with appropriate standards that were adopted by the Office of Chief Engineers, AFP (OTCE) as approved by the CSAFP.
(2) Field Surveys — Necessary field surveys
which include aerial hydrographic, topographic, and subsurface, momentum and other surveys shall be carried out.
(3) Contract Plans — The following plans shall
be prepared for each construction contract in accordance with guidelines and standards adopted by the AFP, incorporating at least the following:
Site development plan Plans and profile sheet Typical sections and details Drainage details where applicable Structural plans at appropriate scales
indicating all details necessary in order that the complete structure can be set out and constructed.
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Other details which may be required
by OTCE.
(4) Quantities — All construction quantities shall be computed to reasonable accuracy of plus or minus fifteen percent (15%) to avoid variation orders.
(5) Special provisions — Specifications shall be
prepared for specific items of work or methods of construction, measurement and payment under each contract, which are not covered by Standard Construction and material Specification adopted by the AFP.
(6) Unit Prices — Cost based on reasonable
approved current prices divided into local and foreign exchange costs, as the case may be.
(7) Agency Estimate — the construction cost shall be prepared by OCEPA or its counterparts in the Major Services and AFPWSSUs. The Approve Agency Estimate (AAE) shall be finalized on the day of the bidding after all bids have been received and shall be held confidential and signed ready for presentation. The estimate should likewise show for major work item, such as earthwork, roadwork, and massive concreting, the components for equipment rentals, fuel, labor, materials, and overhead cost.
(8) Bid/Tender Documents — The Bid/Tender
documents shall include: Instructions to Bidders; General Conditions; Addenda; Itemized Bill Quantities; Day Work Schedule; Form of Bid Bond; Performance Bond;
Contract Plans and Specifications; Draft Contract;
(9) Program of Work — the necessary program of work shall prepared and submitted for approval. No program of work for
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any project shall be approved without detailed engineering. The program of work includes, among other things, estimates of the program items, quantities and costs and a Project Evaluation and Review Technique/Critical Path Method network of the project activities.
2) Pre-Qualification
(a) The following may become contractors for
government projects: (1) Filipino citizens (single proprietorship). (2) Partnership or corporation duly organized
under the laws of the Philippines and at least seventy-five percent(75%) of the capital stock of which belong to Filipino citizens.
(3) Contractors forming themselves into a joint
venture, (i.e. a group of two or more contractors that intend to be jointly and severally responsible for a particular contract), shall, for purposes of bidding/tendering, comply with LOl Nr 630. and shall comply with the provisions of RA Nr 4566 and its Implementing Rules and Regulations, provided that joint ventures in which Filipino ownership is less than seventy-five (75%) percent may be pre-qualified where the structures to be built require the application of techniques and/or technologies which are not adequately possesses by a Filipino entity as defined above.
(b) Organization. The Chief of Staff, AFP/Heads of
procuring agencies shall designate the members of the Prequalification, Bid and Award Committee (PBAC). The committee shall be responsible for the conduct of prequalification, bidding, evaluation of bids and recommending award of contracts.
(c) Invitation to Bid. The invitation to bid shall be
advertised at least three (3) times within reasonable period depending upon the size and complexity but in case less than two (92) weeks in at least (2) newspaper of general circulation. However, for projects costing P1, 000,000.00 and below, the invitation to bid shall be advertised at least once within week in a newspaper of local circulation which has been regularly published for at least six (6) months before the date of issuance of the notices or announcements within the province where the project is situated. Additionally, in the case of projects requiring special technology, contractors known for their capacity to undertake such type of projects shall be directly invited.
3) Issuance of Qualification Statements/Forms
(a) The Prequalification, Bid, and Award Committee (PBAC) shall provide prospective bidders with the Notice of Pre-qualify and other relevant information regarding the proposed word including a brief technical description of the work as to size, type, major items, and other
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important features of the work to guide them in evaluating their capabilities and decide whether or not participate in the bidding of a specific project.
(b) The following qualification statements shall be
required of interested contractors:
(1) ARC-C Contractor’s Confidential Application for Registration and Classification. The following documents shall, among others compromise ARC-C:
(2) Certified photocopy of Contractor’s License
for the current year; (3) Privilege Tax Receipt PTR for the current
year. (4) Description of the organization, including its
objectives, names, nationalities, and construction experiences of key official or engineers;
(5) Detailed financial statements (balance
sheets and profit and loss statements) for at least the current year, or for a longer period depending on the size or complexity of the project;
(6) List of equipment; (7) Experience record;
(8) In the case of foreign contractors allowed to
bid am submit proposals under these rules and regulations, a certification from their respective embassies or consulates that they are bonafide qualified contractors; and
(9) Articles of partnership or incorporation.
(c) Pre-C Contractor’s Confidential Pre-qualification
Statement for the Project. Pre-C shall be required by the contracting unit/office for every project in which the contractor intends to bid. The statement shall be submitted not later that the deadline set in the published Invitation to Bid. Each unit or office shall have the discretion to specify whether any of the documentation; listed below shall form part o the Pre-C subject to revision in the event the situation of the contractor has material changes at the time of submission of the Pre-C.
(1) Statement of completed construction project
in the last three years. It include the nature and value of the project, original and actual project schedule, the location of the project, the name and address of the owner, the financial institutions from whom guarantees, credit lines, loans and other financial accommodation were secured for such projects, and the aggregate outstanding loan fro institution in each year.
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(2) Actual employment or contract to employ
duly-qualified project manager and project engineer who have managed or supervised at least a project of similar nature as to type and cost.
(3) An organization chart and a complete
qualification and experience data sheet or key personnel. (4) List of owned equipment and those pledged
exclusively for the project. (5) All prequalification documents shall be
under oath signifying their correctness and authenticity. These shall be accompanied by a letter authorizing the Head of concerned AFP Engineer unit to verify any or all of the documents submitted.
4) Prequalification of Contractors for Specific Contract
(a) A bidder must be found to be pre-qualified to
undertake the subject contract based on his prequalification (Pre-C) statements as evaluated by the BAC.
(b) Notwithstanding the prequalification of a
contractor, the AFI reserves the right to review his prequalification (Pre-C) statement and other relevant information before the approval of the contract.
(c) In the evaluation of the pre-C Statement, the
PBAC shall review among other things, the technical capability of the contractor to carry out the subject contract as gauged by the extent and quality of his relevant experience , performance and track record.
(d) The PBAC shall also evaluate the Net Financial
Contracting Capacity (NFCC) of the Contractor to carry out the subject contract, taking into account its present net worth and resources committed to other projects. The evaluation maybe represented as follows:
NFCC = (PNWxK) - VUP where NFCC = Net Financial Contracting Capacity PNW = Present Net Worth as shown in his balance
sheet and reflected in his latest Tax Return (ITR) duly filed and received by the BIR, or Certificate of Increase paid-Up Capital duly filed with and approved by the Securities and Exchange Commission.
K = 12, 15, and 18 for contract duration of one, two
years, or more than two years respectively.
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VUP = Value of the unfinished portions of all ongoing and awarded but not started projects, government and private of the contractor coinciding with the construction period of the subject contract.
Only the portion of the prospective bidder’s assets,
liabilities and other accounts allocable, to his construction business shall be considered in the evaluation.
(1) In the determination of the value of all ongoing and awarded but not started construction projects the following rules shall be observed.
(2) In cases the contract has been awarded to
two or more contractors only the portion pertains to the contractors shall be considered.
(3) In the event that the construction period of
the unfinished portion of the existing or awarded but not started contract is longer than the construction period of the contract to be bidded.
(e) The resulting conditions from the computations
and their corresponding interpretations are as follows:
(1) Condition (1) - When the net financial contracting capacity is equal to or greater than the estimated cost of the subject contract to be bidded.
(2) Condition (2) - When the net financial
contracting capacity is le than half of the value of the subject contract. Interpretation - The bidder is financially pre-disqualified.
(3) Condition (3) - When the net financial
contracting capacity equal t least half the value of the estimated cost of the subject contracts to be bidded by reason of ongoing and awarded but not started project.
(4) The PBAC shall also check the bidder’s
performance in his ongoing government and private projects. If there is a negative slippage of more than 10%, unsatisfactory quality of work and/or performance of his obligations, and if there we found due to his fault or negligence, the bidder shall be pre-disqualified from the subject contract.
(5) After undertaking the above processes, the
PBAC (or the prequalification Committee as the cases maybe shall mark the pre-qualification documents “pre-qualified”, countersigned by the Chairman, for review and approval TCE. The PBAC shall duly inform the prospective bidders who have five (5) days upon receipt of notice of disqualification to appeal for reconsideration
5) Issuance of Plans, Specifications and Proposal Book Forms. The PBAC shall issue the plans, specifications and proposal book
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form (s) for the project to be bidded to contractor applicants pre-qualified under pre-C pre-qualification under the relevant classification, upon payment of the corresponding price thereof the collecting/disbursing officer of the concerned AFP Engineer Unit in accordance wit] the following schedule:
Estimated Project Cost Issuance of Plans, Specifications
(In Pesos) & Proposal Book Forms (a) Up to one (1) million - 15 days before the date
bidding (b) Above one (1) million - 30 days before the date
bidding up to five (5) million (c) Above five (5) million - 45 days before the date
bidding up to ten (10) million (d) Above ten (10) million - 60 days before the date
bidding up to one hundred (100) million (e) Above one hundred million - 90 days before the
date of bidding.
In case of simple or repetitive or standardized jobs where time is of the essence, the PBAC may reduce the above time of issuance to not less than fifty percent (50%).
6) Interpretation of Bid/Tender Documents and other
Supplemental Notice
(a) If the prospective bidder is in doubt as to the meaning of any part of the bid documents, he or she may submit a written request for an interpretation to OTCE allowing sufficient time for a reply to reach him/her before submission of his bid. Any substantive interpretation given will be issued by the AFP in the form of Supplemental Notice, furnishing copies thereof to all prospective bidders.
(b) The AFP may also issue to all prospective bidders
Supplemental Notices prior to the date of opening of bids for purposes of clarification or modification of duly acknowledged by each prospective bidder prior to submittal form. Oral interpretation of the bid documents shall not be binding.
(c) Pre-bid conferences may be conducted at the
discretion of the AF or upon written request by any or all prospective bidders. For projects with a approximate cost of P20 million or more, at least one (1) pre-bid conference is required. Said pre-bid conference shall be held at the place and time to be designates by TCE to the Major services Chief Engineer which shall not be later than seven (7) days prior to opening the bids. For this purpose, foreign prospective bidders shall be advised through their local representatives.
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7) Prospective Bidders’ Responsibility
(a) The prospective bidder shall be responsible for having taken step to carefully examine all of the bid documents and also have acknowledged all conditions, local or otherwise, affecting the carrying out of the contract work and to have arrived at an estimate of the facilities available and needed for the project.
(b) The prospective bidder shall be the sole
responsible for determining and to satisfying himself or herself by such means as he considers necessary or desirable to all matters pertaining to the project including the location and the nature of the work; climatic conditions; the nature and condition of the terrain; geological condition at the site; transportation and communication facilities; the requirement and the availability of materials, labor, water, electric power and roads; the locations and extent of aggregate source; and other factors that may affect the cost, duration and execution of the work. The prospective bidder by the act of submitting his bid, acknowledges that he has inspected the site and determined the general characteristics of the project an the condition indicated above. In case of large and complicated projects, the AF reserves the right to require an affidavit of each site inspection from the prospective bidders.
(c) The AFP shall not assume any responsibility regarding erroneous interpretations or conclusions by the prospective bidder out of the data furnished by the AFP.
(d) Prior to submittal of bids, the prospective bidders
are considered to have become familiar with all existing laws, decrees, ordinances, acts and regulations of the Philippines which may affect or apply to the operations and activities of contractors.
8) Bid/Tender and Award
(a) Preparation of Bids, Bid Bonds, and
Prequalification Statement
(1) Bid shall be prepared on the proposal book form in accordance with the instructions to Bidders.
(2) The original copy of the bid shall be
accompanied by a bid bond in the amount of two-and-one-half percent (2 1/2%) of the total bid price in the form of cash, certified check, manager’s check, or bank draft/guarantee confirmed by a local bank (in case of foreign contractor bonded by a foreign bank) against any reputable bank or letter of credit issued by a commercial bank or surety bond, callable on demand, issued by a surety or insurance company duly accredited by the Office of the Insurance Commission or any combination thereof as may be required by TCE payable to the AFP as guarantee that the successful bidder shall within thirty (30) calendar days or less at the discretion of TCE, from receipt of
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Notice of Award, enter into contract with the AFP and furnish the performance bond for the faithful and complete prosecution of the work specified in the contract documents. Bids and bid bonds shall be valid for a reasonable period to be determined by TCE as indicated in the Instruction to Bidders but in no case later than one hundred twenty (120) calendar days following the opening of the bids.
(3) The bid bonds of all except the three (3)
lowest complying bidders may, upon request of the bidder, be returned after the opening of bids. Withdrawal of the bid bond before the award shall be constituted as a waiver by the bidder for award of contract.
(b) Submission, Opening and Abstracting of
Bids/Tenders
(1) Bids shall be submitted in a sealed envelop provided by the PBAC with the name of project to be bidded and the name of the bidder in capital letters addressed to the PBAC.
(2) Bids shall be received on or before the
designate time and date to eligible for consideration. (3) Approved Agency Estimate (AAE) shall be
announced publicly by the Chairman of the PBAC before all bids are opened read and recorded. Should there be only one (1) bidder, the AAE may not be read.
(4) A bid which is not accompanied by the
required bi bond shall be rejected outright. (5) Bids shall be opened at the place, date, and
time specified in the advertisement by the PBAC. (6) After all bids have been received and
opened; the corresponding Abstract of Bids shall be signed by all members of the PBAC and should contain the following;
Name of the project and its location
Time, date and place of bidding
Names of bidders and their
corresponding bids arranged from the lowest to highest showing their respective variances in percent from the Approved Agency Estimate, the amount of bond, and the name of the surety company.
(c) Evaluation of Bids
(1) A bid which does not comply with the condition or requirements of the bid documents shall be rejected by the PBAC
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and given the reasons for its rejection. The AFP, however, in the evaluation of the bids received, reserves the right to waive the consideration of minor deviations in the bids received which do not affect the substance and validity of the bids.
(2) At the time of opening of bids, there shall be at least two (2) competing bidders to proceed in the process. In case there is only one bidder, the bid shall be returned unopened and the project shall be advertised anew for bidding.
9) Awarding of Contract
(a) No award of contracts shall be made to a bidder whose bid price is higher than the Approved Agency Estimate (AAE) or lower than seventy percent (70%) of the Allowable Government Estimate (AGE). The AGE is one half(1/2) of the sum of AAE and the average of all responsive bids. For purposes of determining the average of all responsive bids, higher than one hundred twenty percent (120%) of the AAE or lower than sixty percent (60%) of the AAE shall not be considered. The AFP however, reserves the right to reject any or all bids, to waive any required formality if the bids received, and to disregard any bid which is obviously unbalanced, particular in the major items.
(b) The lowest complying bidder shall not be allowed
withdraw his or her bid. In the event of his refusal or failure to enter into contract within the stipulate time, the AFP shall impose the appropriate sanctions provided in lB 2.5 of PD 1594.
(c) Inability or failure of the lowest complying bidder to
make good his or her bid by entering into contract and to post his or her performance bond within the time provided therefore, the second lowest complying bidder shall be considered provided that his or her bid is lower than the sum of the price of the lowest complying bidder plus the amount of the forfeited bid bond or he reduces his or her bid to this sum. This rule shall likewise apply to the third lower bidder in case the second lower complying bidder shall refuse.
(d) If no bids are received the contract may be
advertised new for bidding after a review of the AAE as provided in item (a) above. However, one(1) rebidding, based on the same or different set of conditions, may be allowed. If after rebidding, no bid shall still come within the price acceptable to the AFP the project manager be recommended for prosecution by administration or by negotiation whereby TCI shall endorse the same bidder to SND through CSAFP for approval of the request for an authority to negotiate.
(e) The winning bidder shall be required to submit the
cash flow by quarter, a PERT/CPM diagram, or bar chart for small projects, and a duly-executed contract of lease of all equipment and machineries which shall be intended for use exclusively for the project as indicated in his qualification statements, as well as cash deposit equivalent to the average
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operating expense requirement of the contract for two (2) months based on the cash flow submitted. The cash deposit shall be deposited in a bank. The head of unit/office or his/her designated representative shall be notified of any withdrawal, deposit and balance in the account of the contractor for the previous month within the first fifteen (15) days of the next succeeding month. No withdrawals shall be made from this account when the balance thereof reaches a month’s average of operating expense without the prior clearance of the designated representative of TCE. Any interest accruing thereto will be credited to the contractor.
(f) Within thirty (30) calendar days or less, from
receipt of the Notice of Award, at the discretion of the head of the unit/officethe successful bidder or his duly-authorized representative shall execute the contract with the AFP.
(g) To guarantee the faithful performance of the
contractor under the contract, he/she shall post upon the signing of the contract price in the form of cash, manager’s check, cashier’s check, bank draft/guarantee confirmed by a local bank (in the case of foreign contractor bonded by a foreign bank), letter of credit issued by a reputable bank, surety bond, callable on demand issued by the AFP General Insurance Corporation or the Government Service Insurance System , by surety or insurance by the companies duly accredited by the Office of the Insurance Commissioner, or a combination thereof. This guarantee bond shall be posted in favor of the AFP and shall guarantee the payment of the amount of the bond as penalty in the event it is established that the contractor is in default in his/her obligation there under.
(h) In the execution of the performance bond, the
following conditions shall be complied with:
(1) It shall be executed in accordance with the form prescribed therefore;
(2) It shall be at least conterminous with the
final completion of the project. (3) The following provisions shall form part of
the performance bond: “The right to institute action on the penal bond pursuant to Republic Act No. 3688 of any individual firm, partnership, corporation and association supplying the contractor with labor and materials for the prosecution of the work is hereby acknowledged and confirmed”.
(i) Subject to the conditions of the contract, the
performance bond may be released by the office or unit concerned after the issuance of the Certificate of Completion of the project, provided that there are no claims for labor and material filed against the contractor or the surety company.
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(j) Should any surety upon the bond for the performance of this contract become unacceptable to the AFP, the contractor shall promptly furnish such replacement security as may be required from time to time up to the same equal t the amount of the original surety.
(k) The contractor shall post additional performance
bond to cover any cumulative increase of more than ten percent (10%) over the original value o the contract as a result of adjustment in unit prices, and/or change orders, extra work orders and supplemental agreements. The contractor shall cause the extension of the validity of the performance bond to cover approved contract time extensions.
(l) In case of a reduction in the contract value and for
partial until work completed by the contractor and accepted by the AFP and which in the judgment of the implementing unit/office concerned shall not affect the structural integrity of the entire project, the unit/office concerned shall allow proportional reduction in the original performance bond, provided that by such reduction is more than ten percent (10%) and that the aggregate of such reduction is not more than fifty percent (50%) of the original performance bond.
(m) For public services or for furnishing supplies,
materials and equipment to the government or any of its branch agencies or instrumentalities shall be renewed of entered into without public bidding, except under any of the following situations:
(1) Whenever the supplies are urgently needed to meet an emergency which may involve the loss of, or danger to, life and/or property;
(2) Whenever the supplies are to be used in
connection with a project of activity which cannot be delayed without causing detriment to the public service;
(3) Whenever the materials needed are sold by
an exclusive distributor or manufacturer who does not have sub dealers selling at lower prices and for which no suitable substitute can be obtained elsewhere at more advantageous terms to the government;
(4) Whenever supplies under procurement
have been unsuccessful place on bid for at least two (2) consecutive times, either due to lack of bidders or the offer received in each instance were exorbitant or non-conforming to specifications;
(5) In cases where it is apparent that the
requisition of the needed supplies through negotiated purchase is most advantageous to the government to be determined by the Department Head concerned; and
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(6) Whenever the purchase is made from an agency of the government.
(n) There are two types of negotiation:
(1) Local - Negotiation is undertaken in the country wherein supplier is either a local or foreign firm which is engaged in business in the Philippines.
(2) Foreign - The supplier is not engaged in
business in the country. Negotiated foreign procurement is further classified into three (3) categories, namely:
Foreign Military Sales (FMS) - This refers to sales from the US Department of Defense stock or through the US Department of Defense procurement of defense articles and services, including training.
Direct Commercial Sales (DCS) -
These are commercial export sales direct from foreign manufacturers. Government to Government Sales
Arrangement - This refers to the purchases of defense materials from foreign countries other than the US. The negotiation is done by procurement missions, foreign military attaches in the country or through AFP attaches abroad.
Procurement from a foreign
government other than the US (FMS) shall be resorted to when the transaction are more advantageous to the AFP considering the type and quality of the item, price, availability and assurance of continued spares and operational supply support.
After the need for certain items of
supplies, materials, equipment or services has been definitely established, and or derived from procurement plans or programs, GHQ through the AFPPC Bid, Negotiation and Award Committee of the major Services, on peculiar items, through their respective Bid, Negotiation and Award Committees may negotiate procurement with the representative of a foreign government;
4. Policies
a. Negotiation as a mode of procurement may be availed by the Procuring Agencies to support the following requirements:
1) AFPPC for common items of supply needed by the AFP;
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2) PA, PAF, and PN for common items for available at AFPPC and items of supply peculiar to them.
b. An authority to negotiate must be secured first from the Secretary of National Defense before undertaking actual negotiation regardless of amount (DND DO Nr A-095 dtd 24 Aug 1988).
5. Negotiated Purchase
a. Authority to Negotiate 1) The request for authority to negotiate shall include the
following information: (a) A statement that the supplies or services for
procurement are critical in nature and are not available in the open market; (b) The quantity of the supplies or the scope of
work/service for procurement, with the estimated government price; (c) The names and addresses of at least three (3)
prospective bonafide dealers/suppliers or contractors; (d) A narrative justification why the supplies/services
shall be procured through negotiation, and not through the normal mode of procurement by public bidding; and
(e) The status of funds to procure the requested items
of supplies and/or services; 2) Unless otherwise specifically authorized, the authority to
negotiate does not include the authority to approve the purchase order or contract, or consummate the procurement.
3) The AFP Committee on Negotiation (AFPCN)
(a) The AFP Committee on Negotiation for CCIE is composed of the following:
Comdr, AFPLC/TQMG (as designated by CSAFP) - - - Chairman
AFPRDC (Head, QM Dept) - - - - - - - - - - - - - - - - - - - Member
AFPLC (Chief, Procurement) - - - - - - - - - - - - - - - - - - Member
QM, Maj Svc - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Member
Deputy J1 - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - Member
Deputy J6 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Member
Maj Svc 4s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Member
AFPLC JAG Representative - - - - - - - - - - - - - - - - - - -Member
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C, SMD, 0J4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Member
AFPLC, COA Representative - - - - - - - - - - - - - - - - Invited/Witness
C, Mgmt Br, OTQMG, GHQ - - - - - - - - - - - - - - - - Member/Recorder
(b) The AFPCN shall negotiate only with pre-qualified
or accredited local manufacturers. (c) AFPCN contracts shall be signed by the CSAFP
for and on behalf of the AFP, and by the duly authorized representative of the manufacturers, before these are indorsed to SND for approval.
(d) AFPCN contracts shall take effect only upon the
approval of SND and the contractor’s posting of the required performance bond.
(e) Implementing Purchase Orders (PO) shall be
acted upon dispositively in accordance with the authority delegated under DND Department Order Nr a-095, dated 24 August 1988, as implemented by SOP Nr 6 GHQ, AFP dated 15 Jun 1992.
(f) An AFPCN contract shall cover only one (1)
manufacturer or supplier that may have one or several contracted items, provided that such manufacturer or supplier is capable of producing/supplying more than one item.
(g) AFPCN contracts should be effective for a period
of at least six (6) months subject to six months renewal as mutually agreed upon the contracting parties. provided that there are no changes in the prices and the contractors have good performance records as determined by the AFPCN. The quantity to be contracted shall be based on the projected requirements for the contract periods.
(h) AFPCN contracts shall include a provision for
technically qualified inspectors authorized by the AFPCN to inspect the manufacture of contracted items al any stage in the manufacturing process. In addition, there shall be provisions for penalties for unreasonably delayed deliveries.
(i) Awardees of AFPCN contracts shall post a
performance bond equivalent to twenty percent (20%) of the contracted amount immediately after the contract has been approved by SND. The bond, which must be in the form of surety, is required to be secured from the AFP General Insurance Corporation (AFPGIC) in favor of the AFP.
(j) In order to maintain the integrity of approved AFPCN contracts, Contract Administrators of all AFP procuring agencies are
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not allowed to procure items covered by the particular AFPCN contract from other sources, unless:
(1) the contract has expired or consummated;
and (2) The contract has been terminated with
cause by appropriate AFP authority.
(k) If either of the two (2) conditions above exists, AFP Procuring Agencies, through their respective Item Administrators, will be allowed to procure front other sources the items covered in LOl 275 dated 9 May 1975, provided an authority has been sought from SND through CSAFP as recommended by the AFPCN.
(l) OTQMG and RDC, ASCOM shall be primarily
responsible for the required tests and evaluations of items covered by the AFPCN contract either for prequalification or acceptance of deliveries.
(m) There shall be a Contract Administrator in the
Major Service level who shall be responsible for the implementation for AFPCN contracts.
(n) There shall be an AFPCN Secretariat headed by
the Chief, management branch, OTQMG, GHQ who shall take care of the administrative/clerical requirements of the AFPCN.
b. Invitation to Submit Quotation or Proposal After receipts of approval of the request for authority to negotiate the procurement, the Procurement Officer shall prepare the proposal sheet in the prescribed format and send the same to the prospective suppliers/contractors.
c. Officer/Negotiation Committee in the presence of the COA
representative. Listing of the proponents by priority is made based on the products or technical or professional qualifications and competence of the contractor in the case of procurement of services.
d. Conduct of Negotiations
1) The negotiator calls for the proponent in the first priority
and pre-qualifies him following the pre-qualifications requirements prescribed in GHQ Ltr dtd 7 Mar 74, Subj: Prequalification Requirements of Prospective Bidders for Supply/Service Contracts.
2) If the proponent qualifies, the plans and/or specifications,
the terms and conditions of the purchase and payment schemes are clarified. The proponent is apprised of the estimate of the government and is asked to reduce his offer to match the government estimate. Counter-offers from both sides are made until an agreement on price is reached. If no agreement is
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reached, the proponent is requested to give his/her final firm offer and authenticate his/her offer.
3) The negotiator deliberates secretly on the proponent’s
final firm offer and decides to accept, reject, or keep it for later consideration. The proponent is then requested to be present and is informed of the Committee’s decision.
4) If no acceptance of the final offer is made, the committee
proceeds with the second proponent in the priority list, and then with the third in the priority list, etc. following in each negotiation the procedures in sub para a, b, and c above.
5) If no acceptance is made after negotiations have been
completed with each and every proponent in the priority list, the negotiator again deliberates on the best among the final firm offers of the proponents, and decides whether to accept the best offer, or reject all the offers. If the committee decides to reject all the final firm offers, the whole procedures of para 5 is repeated for another set of prospective suppliers or contractors.
6) If a final firm offer is accepted, the negotiation is concluded and the minutes of the negotiation is prepared and signed.
e. Preparation of the Contract. In the case of procurement of services, if the amount is greater that P50,000.00, a formal contract is required. The contract documents are prepared by the Procurement Officer and signed by the persons concerned. The proposal sheets and the minutes of the negotiation are part of the contract by incorporation. The head of the procuring agency cannot represent the CSAFP in the contract unless otherwise authorized.
f. Preparation of the Purchase/Work Order. The Procurement
Officer shall be responsible for the preparation Purchase/Work Orders. He sees to it that the necessary certification by the Chief Accountant on availability of funds is made.
g. Processing and Approval of Purchase Orders/Work Orders and
Contracts. Processing and approval of POs/WOs and contracts shall be in accordance with the levels of delegated authority to approve local purchases prescribed in DND Dept Order Nr A-095 date 24 Aug 1988.
h. The Government Estimate
1) In all negotiated procurements, there shall be a government estimate which shall guide the negotiation on the prices to aim for. The government estimate shall be prepared by a competent office. The prices should be gathered through canvass of the open market or from statistical records on previous purchases.
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2) In cases where no government estimate can be obtained, 90% of the lowest price quotation by the proponents may be used as the government estimate.
3) The government estimate shall be kept confidential until
negotiations have been competed. It is reviewed by the proper authorities as prescribed in emergency purchases and a certificate of reasonableness of price is issued.
i. Minutes of Negotiation. The proceedings of the negotiation shall be summarized and recorded. The minutes shall contain the recommendation for award, and shall be signed by all members of the committee and to be witnessed by a COA representative. The committee shall keep initially its proceedings confidential, taking care that the proponents awaiting their turn to negotiate will not know the government estimate and the final firm offer of the other proponents. This will ensure fairness and equity and avoid cut-throat competition among the proponents. 6. Emergency Purchase. Emergency Purchase is resorted to by AFP units under extraordinary circumstances, when the need for the supplies, materials, equipment and services are exceptionally urgent or indispensable to prevent immediate danger to or loss of life or property or to avoid serious detriment to the public service during which there is no material time to procure them through public bidding in the usual manner. It shall be conducted under the authority of the President, the Secretary of National Defense, the Appropriation Act, and/or other authorities, without the benefit of formal bidding pursuant to Executive order Nr 302, s-1940, but within the ceiling allocated in the DND Department order Nr A-095, s-1988.
a. Categories of Emergency Purchase. AFP procuring agencies may avail of any of the following categories of emergency purchase:
1) Emergency Purchase pursuant to EP Nr 302, s-1940 (a) This authority may be used to undertake
emergency purchase o supplies, materials, furniture, equipment, or repair of and equipment.
(b) The authority to initiate procurement under this
category of emergency purchase comes from DND based on the recurring provisions of the yearly General Appropriations Act.
(c) At no instance shall the authority to approve
procurement under DND DO Nr A-095 be exceeded. (d) The Monthly Confirmatory Report on Procurement
shall be submitted to SND through the CSAFP (Attn: DCS Log, J4) not later than one (1) week after the end of the month.
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b. Over-the-Counter Purchase
1) Over-the-counter purchase is a purchase with the use of imp rest funds, c small, low value, and urgent requirements of supplies, materials and non-persona services. These requirements include but are not limited to supplies and materials for repair of mission-essential equipment, transportation and communication services purchase of medicines and drugs for immediate administration to the sick and wounded, purchase of forage for livestock, cattle’s, and K-9 dogs.
2) Over-the-counter purchase is authorized under the
following conditions or circumstances:
(a) The purchase is for unpredictable requirements of low value supplies and materials that are emergency in nature, the delay in the procurement of which will jeopardize operations or accomplishment of a mission, endanger life or property, or be detrimental to the public service.
(b) Supplies or services that do not require detailed
technical specifications or technical inspection. (c) The price is the lowest in the locality where the
items or services are purchased; (d) The purchase is subject to inspection by a
representative of the Commission on Audit; and (e) The maximum amount for each item of
disbursement that can be paid be cash should not be more than P 10,000.00 at any one time.
3) The designated Special Disbursing Officer and/or
Procurement Officers is authorized and shall maintain imp rest funds in an amount not to exceed his monthly limit of OCP to be used as a revolving fund for over-the -counter purchase of supported units. Such imp rest funds shall be replenished at least once a month.
c. Over-the-Counter Purchase Actions
1) The actual purchase may be made by the Procurement
Officer may be made by the Procurement Officer or by any individual involved in the operational mission or activity using the imp rest funds or any funds. Whenever possible, the purchaser shall first seek the clearance of the head of procuring Agency before undertaking the purchase.
2) Whenever possible, the purchaser shall make an informal
canvass in the general locality, to make sure that the price is the lowest and is consistent with the desired quality. He/she then makes the purchase and demands a receipt.
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3) At the first opportunity, the purchaser shall show the items or services purchased with the official or invoice receipt and/or the waste material to a representative of the COA for his inspection and a notation on the receipt Purchaser shall submit additional proofs as maybe required to show that the purchase falls within the requirements or over-the-counter purchase.
4) After the inspection, the purchaser shall present to the
Head of Procuring Agency, through the Procurement Officer, the invoice receipt with the notation from the Auditor, and then request for reimbursement or payment if the fund used is other than the imp rest funds.
5) The Head of Procuring Agency, after satisfying himself
that the purchase falls under the purview of over-the-counter purchase and the requirement thereof are satisfied or complied with, shall authorize the reimbursement or payment. The Procurement Officer holding the imp rest funds makes the reimbursement/payment.
6) Payment and clearing of the over-the-counter purchase
shall b made by the procurement Officer by consolidating the official invoice receipts, am preparing a replenishment voucher. There is no necessity of a purchase/work order formal canvass and other requirements to support the voucher except the following:
(a) Official or Invoice Receipts duly annotated by the Representative of the Audit Commission as to his inspection.
(b) A certification by the Head of Procuring Agency to
the effect that the over-the-counter purchase satisfies the conditions.
(c) Abstract of over-the-counter purchase.
7) A monthly confirmatory report shall be rendered to DND (Attn OASIL) not later than the 10th day of the following month. The report shall contain the items/services purchased, quantity and total price of these items. Non-compliance with this order is a ground for suspension or revocation of the authority for OCP.
7. Policies.
a. Emergency purchase under these procedures shall be limited to such item the need for which cannot be reasonably anticipated to allow procurement thereof through formal public bidding. The purchase of items shall be limited to such quantities as are necessary to meet actual needs which are exceptionally urgent and absolute indispensable to prevent immediate danger, or loss of life and/or property or to avoid serious detriment to the public service. The items to be procured should be limited for immediate use or consumption only.
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b. Purchase or hire of services should be made at the locality where the end user is stationed and/or operating, whenever practicable or feasible.
c. Award of emergency PO/WO shall invariably be covered by
canvass of price in the locality’s open market and given to the lowest offer. d. The responsibility to regulate emergency purchase shall start
from the CSAFP through the DCS Log and DCS Compt to the Major Services Commander through the Major Service 4s and Major Service Comptrollers, and to the Head Procuring Agencies and Procurement Officers, The Comptrollers, through the Intern Auditors and Chief Accountants, shall ensure that the policies and requirements in emergency purchase are complied with. Spot management audit shall be conducted periodically to determine adherence to policies, compliance with all the requirement and observance of the restriction imposed on delegation of approving authorities.
e. Only those procuring agencies that were duly designated by
SND under DND DO Nr 095 are authorized to undertake emergency purchase. All other units of the AFP shall obtain their emergency requirements for supplies, materials, equipment or service through these authorized procuring agencies.
f. No emergency purchase shall be made for items or services that
are available in the AFP Supply System or covered by existing supply or service support agreements.
g. Splitting of Purchase Orders and Work Orders for the purpose of
avoiding review and approval by higher authorities is strictly prohibited and shall be a cause for disapproval of confirmatory reports for which the Head of Procuring Agency shall be subject to pecuniary liability and disciplinary action. The following are considered splitting of PO/WO by a procuring Agency:
1) When two or more POs are made in favor of one dealer/supplier for similar items of supplies, materials or equipment, and obligating funds therefore, within one month of each other.
2) When two or more Work Orders or Contracts are made in
favor of one contractor for the repair/maintenance of one or the same class of equipment or for one construction or maintenance project, obligating funds within one month of each other or one after the completion of the other.
3) When one or more POs/WOs are made in favor of on
supplier or contractor, for the purchase of materials and hire of services in connection with the repair or maintenance of one or the same class of equipment or for one construction repair or rehabilitation project.
h. Entering into an emergency mode of procurement requires
justification. The Head of Procuring Agency shall execute a certification which shall include the following requirements:
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1) Narrative of the emergency situation or circumstances
that generate urgency of the requirement; 2) The items on purchase are not available in stock in the
supply system nor covered by existing or applicable SSA contracts; 3) The price is the lowest obtainable, as a result of the
canvass of at leas three (3) suppliers/contractors, and the award is given to the lowest complying offer as indicated in the PO/WO.
4) The volume of purchase or the scope of work is not
spitted into two or more POs or WOs.
i. All emergency procurement shall be reviewed by the cognizant Commodity Manager. The Head of the Procuring Agency shall execute a Certificate of Reasonable of Price. 8. Procedures and Requirement of Emergency Purchase.
a. Preparatory Actions
1) The Supply Staff Office determines and/or consolidates requirements of his/her supported units. The Supply Accountable Officer (SÃO) prepares and submits the requisition document to the cognizant supply unit or agency. Radiographic requisition for emergency requirement may be submitted to the cognizant supply unit/agency. This step is not applicable in the procurement of services.
2) The cognizant supply agency shall process the requisition
document and indicate supply action within one working day from receipt thereof. If the items on procurement are not available in stock and there is no existing SSA which the Procuring Agency can avail of in the locality, or the holder of the SSA contract cannot or refuses to deliver to the requisitioning unit, the cognizant Supply Agency or Logistics Unit Commander shall advise the Head of the Procuring Agency.
3) To facilitate the flow of documents on procurement and to
ensure that all requirements are satisfied, a Procurement Flow Sheet and Checklist shall be attached as cover sheet to the procurement document.
b. Emergency Purchase Actions
1) Step 1 - The Procurement Order. The decision to enter into an emergency mode of procurement for urgent requirement is made by the Head of Procuring Agency. In issuing his Procurement Order, he sees to it that the restrictions prescribed in Ex-O Nr 302, S-1940 are met.
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2) Step 2 - Canvass of prices
(a) An open canvass for amounts of P1,000,000 or more, and quotations for larger amount, shall be made on the items or services being purchased.
(b) Only bonafide suppliers and contractors (duly
registered with the Securities and Exchange Commission or the Department of Trade & Industry) shall make quotations for items or services to be procured.
(c) The emergency purchase or hire of services for
maintenance or repair of equipment or facilities shall be made at the locality where the end-user is stationed and/or operating whenever it is practicable or feasible.
(d) The canvass proposal shall indicate among others, the following:
(1) The terms of purchase or payment which
shall include the target date for submission of proposal, the period of time the price quotation is valid, and the period of time in which payment is to be made.
(2) Rank, name, designation; and signature of
the Procurement Officer. (3) The complete description of the items or
services to be purchased for immediate delivery and the unit and the total price quotations in the case of procurement of supplies, materials, and equipment, or the plans, description and scope of work, summary specifications, and the price quotations in case of procurement of services;
(4) Name, address, and telephone number of
the company or firm making the quotation; (5) Letter of authority from the manager or the
business entity for quotations made by the representatives;
(6) Name, rank, designation and signature of canvasser; and
(7) Technical Inspection Report (for repair of
equipment).
3) Step 3 - Opening of Proposals and Making Awards. A Committee of at least three members to be designated by the Head of Procuring Agency shall compose the Canvass and Award Committee. Each member shall affix initials on each envelope of the seal proposals before opening the proposals. The sealed proposal shall be opened in the presence
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of the three (3) members and the representative of the Commission on Audit and in public. The canvass proposals are examined for completeness of and compliance to the requirements and the specifications and abstracted in the prescribed format. On this abstract, the award shall be recommended to the supplier or contractor who made the lowest complying offer or the offer most advantageous to the AFP. The entire Committee member shall sign the canvas proposals and the abstract of canvass Recommendation for award. All the proceedings of the Committee shall be witnessed by a representative of Audit Commission, who will affix his initials on the sealed envelope and proposal, and his/her signature on the Abstract of Canvass/Recommendation for Award. The award shall be approved by the Head of the Procuring Agency.
4) Step 4 - Certificate of Reasonableness of Price. The canvass proposals and abstract shall be shown to the cognizant Commodity manager or head of appropriate office. The cognizant commander or head of office shall issue a certificate of reasonableness of price, if he/she determines that the plans and specifications conform to AFP standards and that the price recommended for award is reasonable and advantageous to the AFP.
5) Step 5 - Preparation of the Purchase Order/Work Orders
(a) The procurement Officer prepares the purchase/work in the prescribe format in favor of the supplier or contractor recommended for award.
(b) The date of the obligation of funds by the
Accountant shall be the date of the PO/WO. (c) The basis of authority for entering into the
emergency mode o procurement shall be indicated on the PO/WO by entering in the appropriate space, i.e EO 302, s-1940. The radio message or letter from DND or CSAFP, which granted the authority to procure on emergency pursuant to EO Nr 302, shall be cited on the PO/WO.
(d) The Fiscal Officer shall indicate fund chargeability
on the back page of the PO/WO and prepares a request for obligation authority (ROA).
(e) After the PO/WO has been prepared, the Head of
procuring agency shall execute his/her Certification on Emergency Purchase. 6) Step - 6 Certificate of Fund Availability. The funds
intended for the purchase shall be so obligated. The cognizant Chief Accountant shall certify as to fund availability after he/her has indicated the necessary chargeability. Unless specifically authorized otherwise, no PO/WO shall b approved without the obligation of funds and the certification of availability of funds in this effect. In the case of emergency purchase pursuant to EO nor 302, the Chic Accountant shall certify availability of funds subject to approval of appropriate authority.
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7) Step 7 - Review and Endorsement of the PO/WO. The PO/WO for approval by higher authorities shall be transmitted through channels. Intermediate commanders or their representatives shall indicate their recommended actions on separate letters of transmittal. The recommending authorities, however, shall sign the appropriate space on the PO/WO.
8) Step 8 - Approval of PO/WO. The approving authority
shall thoroughly examine the PO/WO for the following, before approving the PO/WO:
(a) Compliance to policies, rules and regulations;
(b) Authority or basis of the PO/WO;
(c) Non-availability of the items in the stocks of the supply system and non-coverage by existing or applicable SSA contracts;
(d) Certificate on the emergency mode of
procurement;
(e) Reasonableness of price; and
(f) Obligation of funds for the procurement
9) Step 9 - Implementation of PO/WO
(a) In the case of procurement of repair and maintenance services, the Maintenance/Engineer Officer shall see to it that pre-inspection and post-inspection by the representative of the management staff of the Comptroller Office and the Audit Commission respectively, is made before the start and after completion of the repair or maintenance work. A technical inspection by the Maintenance/Engineer Work Officer is made on completed work, and a Technical Inspection Report (TIR) and certificate of inspection and acceptance shall be made by him/her.
(b) In the case of procurement of supplies, materials, or equipment, the delivery is inspected by the representative of the management staff of the Comptroller Office, the Audit Commission, and the Acceptance Committee. The items are received by the Supply Accountable Officer (SAO), and issued to the Responsible Supply Officer (RSO) of the using unit.
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CHAPTER 5 INVENTORY MANAGEMENT SYSTEM
As part of the total logistics management system, the objectives of inventory management are: (1) effective, efficient, and economical supply to military forces in their assigned missions, and (2) to focus management resources at those points in the supply system where the greatest benefits will be gained. With the many compromises and trade-offs in the operation of the AFP Logistics, these objectives can become obscure. For the in all levels of the supply system, there are limitations, facilities, as well as, materiel. The ultimate criteria for evaluating the inventory management system is success in supporting the soldier in the field with what is needed, in the condition and quantity required with minimum expenditure of resources. Just like in the distribution management, some approaches in analyzing inventory management are adopted which are criticality of materiel, the environment in which are to be used, capability to generate demand data, and classes of supply. The principal reason for maintaining inventories is to improve services by compensating for the time needed to produce, handle and ship supplies. If goods are on hand, the operating units may draw them as needed. If however, goods must be shipped to a considerable distance or even manufactured before they can be provided to these units, the resulting delay may produce serious consequences on the customer’s operations. Physical Inventory. Taking an inventory is an indispensable procedure for checking the integrity of property custodianship. Regulations require the conduct of a physical inventory of all supplies or property at least once a year. However, the Commander may order a running and test inventory of property under his responsibility at any time to ascertain the correctness of the supplies or property records and to determine possible losses occasioned by fire, theft or other similar disaster. Likewise, in the event of transfer of property from one Accountable Officer to another, an inventory thereof shall be taken jointly by the outgoing and incoming officers.
Section 5-1 Accounting Forms and Reports for Inventory-Taking
1. Inventory of Equipment Report Summary. (AFP Form RIR No. 1). This is the required report summary for the annual physical inventory of fixed assets categorized under furniture, equipment and work animals (Annex P). This is also the report to be generated by the AFP Communication Electronics and Information Systems in coordination with the Task Force Secretariat.
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2. Inventory of Equipment. (AFP Form RJR No. 2). This is the required report for annual physical inventory of all fixed assets categorized under furniture, equipment and work animals (Annex Q). 3. Inventory of Land and Land Improvements. (AFP Form RJR No. 3). This is the required report (Annex R) for the annual physical inventory of all fixed assets categorized under Land and Land Improvements. The report prepared by the Task Elements (composed of the Battalion S-4 as Commander, Task Element, Responsible Real Property Officer (RRPO) rep, PMO rep, Field Accounting Unit (FAU) rep and COA rep) shall include the original copies of Memo Receipts duly signed by the Battalion S-4 as its official user caretaker in favor of the Responsible Real Property Officer (RRPO). The original copy of the Memo Receipts shall be kept by the RRPO and the latter shall translate this into a Memo Receipt duly signed by the unit RRPO in favor of the unit Property Accountable Officer. The original copy of M/R shall be attached to the Report Form No. 3 for approval of the PA Unit CO. 4. Inventory Report Summary for Land and Land Improvements. (AFP Form R/R No. 4). This is the required summary report (Annex S) for the annual physical inventory of all assets categorized under land and land improvements. This report as based from all consolidated Inventory of Land and Land Improvements; AFP Form No. 3 submitted by the different inventory Task Elements shall be prepared by the Inventory Task Units with its members in attendance. 5. Inventory of Buildings and Structure. (AFP Form RJR No. 5). This is the required report (Annex 1) for the annual physical inventory of all assets categorized under buildings and structures. The procedures and guidelines in the preparation of this report, to include Memorandum Receipts (MRs) shall be similar with AFP Form No. 3. 6. Inventory Report Summary of Buildings and Structures. (AFP Form No. 6). This is the required summary report (Annex U) for the annual physical inventory of fixed assets categorized under buildings and structures based from all consolidated Inventory of Buildings and Structures Reports, (Form No. 5) that is submitted by the different Inventory Task Elements. 7. Inventory and Inspection Report of Unserviceable Property. (Gen Form No. 17a). This is the required report for property which are unserviceable, no longer needed or found to be valueless, but carried in the fixed assets account. This report shall serve as basis for dropping the unserviceable property from the books of accounts and property records. 8. Acknowledgement Receipt for Equipment. Officials and personnel, other than the regular property officer shall accomplish this form to whom properties earned in the furniture, equipment and work animals accounts are issued for official use.
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9. AFP Property Tag. The Inventory Task Groups during the actual physical inventory shall accomplish this form. The tag shall be attached to each item inventories giving a brief description and condition thereof as well as its location.
10. Equipment Ledger Card. (Gen Form No. 46a). This ledger card is kept by the property officer to record all furniture, equipment and work animals acquired and issued or disposed of.
Section 5-2 The AFP Inventory Task Force
1. Authority. GHQ. Circular 12 dated 7 November 1994 Subject: Annual Inventory of AFP Properties created the AFP Inventory Task Force which is composed of the following:
a. Task force Secretariat
b. Computer Task Group
c. Inventory Verification and Policy Task Group
d. Inventory Task Groups
1) PA Inventory Task Group
2) PAF Inventory Task Group
3) PN Inventory Task Group 4) GHQ, AFPWSSUs and Unified/Specified Commands
inventory Task Groups 2. Organization. Figure 5-1 shows the organizational structure of the AFP Inventory Task Force.
CTF DCSLOG, J4
DEP CTF ADCS COMPT, J6
CTG PA G4.PA
CTG PAF A4, PAP
CTG PN N4,PN
CTG AC AC4/ LOG OFF /GHQ & AFPWSSU
CTG VER & POL C, CATALOGING DIV AFPLC
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OIC SECRETARIAT C, PM, 0J4
3. Responsibilities.
a. Task Force Secretariat (TFS)- reviews and consolidates all
inventory reports submitted by the various Inventory Task Groups, initiates cataloguing and computerization, prepare and submit the final inventory report and distributes print-outs of inventory results to all units concerned. The Secreteriat is also be responsible for the printing of inventory forms prescribed herein and their proper distribution.
b. Computer Task Group (CTG) - transcribes all inventory results,
inputs them into the computer, and provides computer printouts of the Inventory Summary Reports (AFP R/R Forms No. 1, 4, and 6).
c. Inventory Verification and Policy Task Group - shall conduct
random verification of inventory results submitted by the Inventory Task Groups/Units to ascertain their completeness and accuracy; provides assistance, if necessary, on the proper identification and coding of property on the reconciliation of inventories or property with books of accounts, and formulates policies and procedures on property management and control in the AFP. 4. The Philippine Army Inventory Task Group. As provided for in the above circular, the PA Inventory Task Group (ITG) is composed of the following:
Figure 5.1 Inventory task force organizations.
CTF
Dep CTF
GHQ Res Auditor GHQ Accountant
OIC Secretariat
COMDR AC/ GHQ &
AFPWSSUs ITG
COMDR PN ITG
COMDR PAF ITG
COMDR PA ITG
COMDR AC/ GHQ &
AFPWSSUs ITG
COMDR INVTRY VERIFICATION & POLICY TG
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a. TG Commander- Assistant Chief of Staff G4, PA
1) Members:
(a) PA Commodity Managers representative
(b) Army Chief of Engineers
(c) CO, Army Management Information Center (AMIC) representative
(d) C, PMO — Recorder
2) Consultants:
(a) Chief Accountant, PA
(b) HPA COA Resident Auditor 5. Functions. The PA Inventory Task Group Headquarters shall have overall supervision and coordination of Inventory-Taking in the subordinate units and give assistance to Task Units (TUs) or Task Elements (TEs) as necessary. In addition it shall:
a. Review and consolidate all inventory reports submitted by the Task Units from the Division level.
b. Submit to the Task Force Commander (GHQ) the inventory
report summaries (AFP Forms 1, 4, 6 and Gen Form 17a) duly signed by CG, PA the COA Resident Auditor and Accountant, together with the originals of forms 2,3, and 5.
c. Coordinate with the Resident Auditor for COA personnel to be
fielded in the various Task Units and Task Elements during the conduct of physical inventory. 6. Composition of Task Units. Inventory Task Units at the Division level is composed of:
a. Commander Task Unit- Division G-4
b. Representative of Technical Services:
c. C, Field Accounting Unit (FAU)
d. Supply Accountable Officer
e. Consultant’ Witness- COA representative
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7. Composition of Task Elements. Inventory Task Element at the Battalion level is organized as:
a. Commander Task Element- Bn S-4
b. RSO
c. SAO representative inventory team
d. FAU representative
e. Consultant’s Witness- COA representative
Each element shall be responsible for the inventory- taking, property identification, coding and reporting, updating of Memorandum Receipt (MR). and accomplishing the APP Property Tags and Equipment Ledger Cards in their respective units of coverage.
Section 5-3 Conduct of Physical Inventory 1. Conduct of Inventory. The physical inventory will be undertaken simultaneously by the Task Groups employed their respective Inventory Task Units/Elements down to the battalion level in accordance with the Timetable/Schedule of Inventory-Taking. Each Task element shall perform the following:
a. Property Identification and Coding. All properties shall be listed according to nomenclature, quantity and quality units, measurements, source of acquisition, unit cost and total value, and property categorized as land and land improvement, buildings and structures and furniture, equipment and work animals which shall be further classified by Major or Technical item i.e. engineer, medical, dental, ordnance, quartermaster. Coding shall be in accordance with prescribed Property Identification and Coding Guide (Annex V).
b. Determination of Coordination Status. Inventoried equipment
shall be classified into serviceable, unserviceable, deadline, disposable, due for turn in, for salvage, and no longer needed shall be entered in the Inventory and Inspection Report of Unserviceable property, while those that are unserviceable but still repairable shall be included in APP R/R Form Number 2.
c. Recording. Items as inventoried shall be listed in the prescribed
inventory forms (APP Forms R/R Nos. 2, 3 and 5) to be the basis for the final inventory summary reports and transcribed for computerization. Each shall be accomplished in at least six (6) copies to be distributed as follows:
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1) Task Unit Headquarters - original copy (to be forwarded to the Task Group with consolidated inventory reports)
2) Task Force Secretariat - one copy
3) COA representative - one copy
4) Unit File (Battalion/Installation) - one copy
5) SAO/Camp Engineer - one copy
6) Division or equivalent unit file - one copy
A copy shall be forwarded to the IF Secretariat as soon as the physical inventory in a unit is completed. Consolidation of reports shall be undertaken at Division level using AFP Forms R/R Nos. 1, 4, and 6.
d. To facilitate identification, description and valuation of property,
the following property records shall be verified/examined:
1) Acquisition Documents - Sources of assets shall be identified or established through the dealer’s invoice for locally purchased item, shipping documents, deed of donation, and turn-in system for non-Republic items.
2) Issue Documents- Invoices and receipts for transfer of
properties from one SÃO to another, and Memorandum Receipts from SÃO to RSO, and, in some instances to certain individuals shall be examined.
3) Stock Records - Stock cards that serve as the formal
record of accountability of a SAO and the company property book as the formal record of responsibility of RSO, shall be examined.
e. Inventory Task Elements shall accomplish the AFP Property Tag to be sealed or posted on the property numbering shall be based on the provisions of Sec 493 of the National Accounting and Auditing Manual. 2. Timetable. The conduct of the annual physical inventory shall be made as of December 31 and submitted to the Auditor not later than January 31 of each year, unless extended by the Chairman, Commission on Audit, upon prior request of the chief of agency concerned.
In consonance with the required submission of report to COA not later than January 31, the AFP has come up with its timetable which starts with the conduct of physical inventory by the Task Elements from 01 October to 30 November of the preceding calendar year as shown in Table 5-1 that follows.
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Table 5-1 Timetable of Inventory Taking
Activity Tasking Target dates
1. Conduct of physical inventory TEs 01 Oct-30 Nov (preceding CY)
2. Submission of Inventory Reports to Task Units (TUs)
TEs 01 Dec
3. Review and consolidation of Inventory Reports prepared by Task Elements (TEs)
TUs 01 Dec-15 Dec
4. Submission of consolidated Inventory Reports to Task Group (TG) Headquarters
TUs 16 Dec
5. Review and consolidation of Inventory Reports submitted by Task units, prepare reports
TGs 15 Dec-31 Dec
6. Submission of consolidated Inventory Reports to the Inventory Task Force (TF) Commander through the Task Force Secretariat (TFS)
TGs 01 Jan (succeeding CY)
7. Review and consolidate all Inventory Reports submitted by Inventory Task Groups; Computer Task Group (CTG) computerizes inventory results; Prepare final Inventory Report
TFS 01 Jan-31 Jan
8. Submit final Inventory Report to the Chief of Staff, AFP and COA Chairman
CTF 31 Jan
9. Distribution of Inventory printouts; Reconcile with books of accounts and property records
TF/TGs/TUs
01 Feb-15 Feb
a. Inventory verification may be conducted by the Verification and Policy Task Group, anytime from the date of submission of inventory reports by the Task Elements to the Task Units (01 Dec of the preceding year) to the date of submission consolidated inventory repots by the Task Groups to the task Force Commander through the Task Force Secretariat (01 Jan of the succeeding year).
b. Reconciliation actual inventories with books of accounts shall be
made after the Chief of Staff,. AFP has approved the final Inventory Report.
Section 5-4 Property 1. Definition. Property broadly refers to anything that the Army owns.
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2. Broad Classification. The Government Accounting and Auditing Manual, Volume I, classifies properties into three (3) main groups, namely:
a. Inventories. Consists of all expendable commodities, which are normally consumed within one year in connection with government operations or used in the process of manufacture or construction. Property with a unit value of P10,000.00 and less, used in government operations but not consumed in such operations, is also included under inventories.
b. Fixed Assets. Consist of lands and land improvements, buildings
and structures, furniture, fixtures, equipment and books, and work animals which are more or less permanent or capital in nature. They are long- term assets acquired by the government agency for use in its operations and not intended for resale.
c. Acquired Assets. Consist of lands, buildings and structures,
furniture and equipment, and other assets acquired or repossessed as a result of foreclosure of mortgage or non-payment of installments due, and those that are intended for sale or disposition.
d. The Manual on Property Accountability, series 1994 likewise
classify property into two (2) groups: e. Real Property. Includes lands and interest therein, such as
buildings and facilities. f. Supplies. Includes all property other than real state, which may
be needed in the transaction of public businesses, or in the pursuit of any undertaking, project, or activity, whether in the nature of equipment, furniture, stationery materials for construction, or personal property of any sort. Supplies also include non-personal or contractual services such as the repair and maintenance of equipment and furniture, as trucking, hauling, janitorial, security and related analogous services. 3. Classification as to Nature. Supplies as defined above shall be further classified into consumable, semi-expendable and non-expendable supplies.
a. Consumable Supplies. Consist of all expendable commodities which are normally consumed within one year in connection with any operations or used in the process of manufacture or construction. They lose their identities when placed in or attached to a major end item of property.
b. Semi-Expendable Supplies. Property with a unit value of P
10,000.00 and less, that is used in government operations but not consumed in such operations or having a life expectancy of more than one year (COA Circular No. 97-005 dated 01 July 1997).
c. Non-Expendable Supplies. Properties which are serialized, durable in nature, and which, in use, do not suffer any material or substantial
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change or alteration in size or form. These supplies are more or less permanent or capital in nature and cost P 10,000.00 or more. 4. Classification as to Source. Supplies may be further classified as follows:
a. Republic Supplies. These are supplies that are acquired by means of procurement using appropriated, non-appropriated (e.g. trust receipts), or reimbursable funds of the Army.
b. Non-republic Supplies. These are supplies that are acquired by
means other than purchase from appropriated, non-appropriated or reimbursable funds of the Army as follows:
1) Military Assistance Program (MAP) – refers to supplies that are made available to the Army by the U.S. Government through either grant in aid at no cost or through purchase under the Foreign Military Sales (FMS) program.
2) Found in Station (FIS) - Unaccounted property found in
station regardless of source. 3) Captured Enemy Property - Captured from the enemy in
the course of military operations, whether within or outside of Philippine territorial jurisdiction.
4) Reclaimed Property - Serviceable components reclaimed
or recovered from condemned unserviceable property. 5) Salvaged Property- The remaining residue after
serviceable components have been reclaimed from condemned unserviceable property.
Section 5-5 Issuance and Turn-in of Supplies 1. Issues of Supplies. Normally, issue of supplies by General Support
Supply Accountable Officers (GS, SAOs) shall be made only to the PA Major Unit Supply Accountable Officers of the next lower echelon of the command.
a. General Support Level
1) Issues of Consumable Supplies. Issues will be on
Requisition and Issue Slip (RIS) irrespective of source. However, source of the item is, indicated on the voucher.
2) Issues of Semi-expendable Supplies. Issues will be on
acknowledgement Receipts for Equipment (ARE) for purposes of control and
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accountability and shall be recorded under the Account Code 8-72-600 (Inventories).
3) Issues of Non-expendable Supplies. Issues of non-expendable supplies whatever the source shall be made to consumer units on Invoice Receipt for Property (IRP), including Table of Organization and Equipment (TO & E) items. Source of the item shall also be indicated. Five copies shall be prepared and distributed as follows:
(a) Original copy - Issuing General Support SAO
(b) One copy - Receiving Army Major Unit SAO
(c) One copy - Issuing warehouse/armory officer
(d) One copy - Gate guard Security officer
(e) One copy - Chief, Property Management Office (C,PMO)
Issues of non-expendable supplies between an Army Major Unit Supply Accountable Officer and the Responsible Supply Officer (RSO) shall be accomplished in ARE in four (4) copies and distributed as follows:
(f) Original - Issuing Army Major Unit SAO
(g) One copy - Receiving RSO
(h) One copy - Issuing warehouse/Armory officer
(i) One copy - Gate guard and/or Security officer
Equipment issued by the SAO for official use of
Army personnel shall be covered by Acknowledgment Receipt for Equipment (ARE) which shall be renewed periodically as provided for by existing policies on inventor management.
b. PA Major Unit Level
1) Issues of Consumable and Semi- Expendable Supplies. Same procedure as outlined in paragraph 1a- above.
2) Issues of Non-expendable Supplies Issuance shall be
made on MR in four (4) copies duly accomplished and distributed as follows:
(a) Original copy - Issuing Army Major Unit SAO
(b) One copy - Receiving RSO
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(c) One copy - Warehouse!/Armory Officer
(d) One copy - Gate guard and/or Security Officer 2. Turn-in of Supplies.
a. PA Major Unit Level and Issue Point Handling of Turn-ins of Supplies. Serviceable expendables and non-expendables turned in by using units on a Property Turn-in Slip (PTIS) will be picked up in accountability of Supply Accountable Officer of the General Support and PA Major Unit levels. A copy of turn-in voucher will be furnished to the C, PMO.
b. Between PA Major Unit SAO and RSO. Non-expendables
turned in to PA Major Unit SAO b the RSO shall be accomplished by the simple return of the MR signed by the latter. If return is only partial, the returned item shall be deleted and a new MR is then prepared in lieu of the old MR of which will be returned to the concerned RSO. All turned-in supplies shall b properly receipted by the Warehouse/Armory Officer before any MR is returned to the concerned RSO.
c. Between a Unit RSO and individual User. Non-expendable
supplies turned-in to the RSO by the receiving individual shall also be accomplished by the simple return of the MR which was signed by the latter.
Section 5-6 Care in the Use of Equipment 1. Definition. Due care refers to the amount of care and attention that an official or employee would reasonably give to his/her private property, considering all the attending circumstances. Due care shall be exercised in the use of equipment; otherwise, they will deteriorate rapidly. They will accumulate dust, become rusty and rapidly tear out unless properly oiled and covered when not in actual use. 2. Accountability/Responsibility. If and equipment is issued to a unit/personnel for the use by several persons, the Commanding Officer or Chief of Office shall designate an RSO to be accountable/responsible for its documentation and monitoring. The person in actual physical possession of government property or entrusted with its custody and control shall be responsible for its proper use and care and shall exercise due diligence in the utilization and safekeeping thereof (Sec. 376, RA 7160).
Section 5-7 Accounting Forms and Reports 1. Formal Records of Accountability. These are stock record of accounts which are maintained by Supply Accountable Officers in all units of the Army. Such records shall be subject to examination by audit agencies
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and/or other agencies as may be required or authorized by the Department of National Defense (ANNEX A).
a. Stock Card (QMS Form 2, revised). The Stock Card shall be
used to record all receipts and issuances of supplies. The cards shall be maintained by the Supply and Property Unit for each item in stock and is the primary instrument of the formal stock record account. It indicates receipts and issues of property by individual transactions, balances on hand, dates of transactions, voucher number and other necessary data for cross reference to documentation substantiating the stock record card entry.
b. Property Card (PC). The Property Card shall be used by the
Supply and Property Unit to record the description, transfer or acquisition, disposal, and other information about the property, plant and equipment. It shall be kept for each class of property, plant and equipment.
c. Journal Entry Voucher (JEV). The Journal Entry Voucher shall
be used for all transactions of the government, whether cash receipts, cash/check disbursements or non-cash transactions. The voucher shall be prepared by the Accounting Unit based on what is reflected therein and it shall serve as the basis for recording the transactions in the appropriate journals.
d. Itinerary of Travel (IT). The Itinerary of Travel shall be prepared
by the concerned official or employee making the travel. The IT shows the details of travel such as places to be visited, date, including the amount of expenses to be incurred. It shall be prepared before the travel is made or upon reimbursement of traveling expenses.
e. Supplies Availability Inquiry (SAI). The Supplies Availability
Inquiry shall be used to inquire the availability of supplies on stock from the Accounting Unit.
f. Requisition and Issue Slip (RIS). This form shall be used to request supplies and materials that are carried on stock in issuing expendable supplies. The form shall serve as evidence of issue and transfer of accountability, as well as packing slip, tally out, and shipping document. The RIS shall be prepared in three copies: the original is used by the SAO to support the Monthly Report of Supplies and Materials Issued (MRSMI) submitted monthly to the Chief Accountant; the duplicate is used to support postings in the Supplies Ledger Card/Stock Cards; and the third copy is retained by the requisitioned
g. Purchase Request (PR). The Purchase Request shall be used
to request for the purchase of inventory or item that are not available on stock. The request shall be the basis of preparing the Purchase Order.
h. Purchase Order (PO). The Purchase Order shall be used to
support purchase of equipment, supplies, and materials, etc.
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i. Acknowledgement Receipt for Equipment (ARE). This form shall be used in issuing non-expendable property from a major unit SAO to the end user or shall be used to acknowledge the receipt of property and equipment for official use from the Property Officer. The receipt shall be accomplished in duplicate: the original shall be submitted to the Supply Accountable Officer while the duplicate shall be kept by the user.
j. Report of Supplies and Materials Issued (RSMI). This form
serves as a monthly abstract of supplies and materials issued as evidenced by the Requisition and Issue Slip. The report shall be prepared by the Supply Officer and shall be used by the Accounting Unit as basis in preparing the JEV to record the supplies and materials issued. The form is prepared in two copies: the original, with the original RIS, is submitted to the Accountant as basis for recording the issues in the General Journal through the Journal Voucher. The duplicate, with the duplicate RIS, is retained by the SAO.
k. Waste Materials Report (WMR). The Waste Materials Report
shall be used to report all waste materials such as destroyed spare parts and other materials considered scrap due to replacement.
l. Inventory and Inspection Report of Unserviceable Property
(IIRUP). The Inventory and Inspection Report of Unserviceable Property shall be used as basis to record, dropping from the books the unserviceable properties carried in the Property, Plant and Equipment accounts. This shall be prepared in two (2) copies and submitted by the Accountable Officer to the following: the original, to the Accounting Unit and the duplicate Copy, to the Supply and Property Unit. The original copy of the report shall be the basis for adjusting the accounts affected by means of a journal entry voucher.
m. Report on the Physical Count of Inventories (RPCI). The Report on the Physical Count of Inventories shall be used to report the physical count of supplies by type of inventory as of a given date. The report shows the balance of inventory items per cards and per count and storage or coverage, if any. This form shall be used to report on the physical count of inventory items by type such as Office Supplies, Accountable Forms, Medical, Dental and Laboratory Supplies, Food/Non-food Inventory, etc. which are owned by the agency. This report shall be prepared every six months in three (3) copies and shall be certified correct by the Inventory Committee and approved by the Head of the Agency. This shall be distributed as follows: Original, to the Accounting Unit, Duplicate Copy, to the Supply and Property Unit and Triplicate Copy, to the Inventory Committee file. It shall be submitted to the Auditor concerned not later than July 31 and January 31 of each year for the first and second semesters, respectively.
n. Invoice Receipt for Property (IRP, General Form 30a). This form
shall be used in the transfer of property accountability of non-expendable supplies from one Supply Accountable Officer to another. This receipt shall serve as evidence of issue or transfer. It may be used as a packing slip or a tally.
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o. Property Turn-in Slip (PTIS, AGO Form 447). This form shall be used for turning in of supplies by the PA Major Unit Supply Accountable Officer to the General Support SAO of the next higher level all excess and unserviceable properties. The slip is accompanied by a corresponding Technical Inspection Report. This form shall be used to debit or credit accountability.
p. Equipment Adjustment Sheet (EAS). This form shall be used to abstract and sum up all receipts, acquisitions, turn-ins and dropping of non-expendable supplies under Invoice Receipt of Property, Report of Property Found in Station, Property Turn-in Slip, Inventory and Inspection Report and the Report of Survey.
q. Inventory Adjustment Report (JAR, AGO Form 41 a). This form
shall be used to adjust discrepancies for MAP or non-Republic properties noted between balances in the stock cards and actual balances of stock on hand when the item quantity short is not in excess of ten percent(10%) by line item of the recorded quantitative balance. Shortages in excess of said limit shall be taken up on a Report of Survey.
r. Report of Survey (RS, AGO Form 15). This form shall be used in
obtaining relief from accountability and/or responsibility for lost, damaged, stolen, destroyed or worn-out equipment other than fair, wear and tear (FWT).
s. Technical Inspection Report (TIR). This form, when duly
accomplished, shall support the Inventory and Inspection Report, the Property Turn-in Slip, or the Report of Survey as the case maybe.
t. Report of Property Found in Station (RPFS). This form shall be
used to pick up accountability of all supplies like MAP, captured enemy property, and confiscated property to include donations not taken up in the record of the unit.
u. Equipment Ledger Card (ELC). The Equipment Ledger Card shall be kept for each technical class of equipment (Ordnance, Engineer, Medical, Dental, Signal and Quartermaster) to record the acquisition, description, custody, estimated life, depreciation, disposal and other information about the equipment, based on the source documents of the transactions. The physical inventory of the equipment shall be reconciled with the equipment ledger cards and the control accounts. 2. Informal Records of Accountability. These are property book of accounts maintained in all units of the Army which are subject to inspection and examination by and thru command channels.
a. Voucher File. This is a chronological compilation of property
voucher (except Memorandum receipts) supporting entries made in the Voucher Register and in the Stock Cards. In the Voucher file, the vouchers are arranged in the order that transactions occur. There is no regard made for the grouping of similar items or of items, which pertain to the same property.
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b. Property Registry Book. This record is the diary of the SAO. and is a record of all the transactions (regardless of supply classification) in its life in the order of occurrence. Hence, it is a book of chronological entries where transactions are recorded from day to day as they occur. However, there is usually no distinction made as to the time of the transactions that simultaneously occur on a particular day, but are differentiated by a separate number on each voucher.
c. Acknowledgement Receipt for Equipment File. All temporary
issuance to RSO’s on ARE shall not be listed in the Property Registry Book nor be assigned a voucher number but shall be maintained in an Acknowledgement Receipt file, which is separate from the voucher file. Separate files shall be maintained for equipment received from major unit SAO and equipment issued to individual personnel of the unit.
d. Record of Consumption. Refers to any record or document
which shows that expendable supplies have been consumed in the public service or in the transaction of official business, such as trip tickets for POL products, job orders for technical service expendables, after encounter reports and after training reports for ammunition expended etc.
e. Company Properly Book. This is a record that is kept and
maintained by RSO’s at company level for all TO & E property by technical services, classification and grouping where receipts, issues, and balances are shown.
f. Office Properly Book. Similar to the company Property Book in
which a record is maintained for all non-expendable housekeeping type non-TO & E equipment that were issued by major unit SAOs.
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CHAPTER 6 DISTRIBUTION MANAGEMENT SYSTEM
Section 6-1 Introduction 1. General. Distribution management can be broadly considered as covering all aspects of the management of materiel. The chapter begins with a discussion of the distribution functions and the outlined principles of storage, stock control and shipment. 2. Objectives of Distribution Management
a. Once quantitative materiel requirements have been determined and supplies have been procured, supplies are the responsibility of the distribution system until issued to the ultimate user. The functions of the distribution system are:
1) Receipt — the processes of accepting supplies into the PA supply system.
2) Storage — the process of holding and caring for supplies
prior to issue. 3) Transportation — the movement of supplies within the
distribution system. 4) Issue — the releasing of supplies of supplies to
consuming or using activities.
b. Supplies ordinarily remain in the hands of users until they are consumed, become unserviceable, or have become obsolete. Unserviceable supplies may be restored to serviceable condition by maintenance activities and returned either to the user or to the distribution system.
c. The purpose of the distribution system is to move supplies from
the source to the user. The goals of the distribution system are to be responsive to the user, to be sufficiently flexible to adapt to rapidly changing conditions, to be economical in terms of use of physical and manpower resources, and to be resistant to disruption by either the forces of nature or enemy action. 3. The Pipeline Concept of Materiel Distribution
a. The administrative and physical structure through which demands for materiel are expressed and goods flow to the point of ultimate use is known as the distribution pipeline of supply. The word pipeline is, in one sense, inaccurate in that it connotes a smoothness of movement that
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does not always exist in military supply. the concept however, has one great merit however, it signifies a channel for mobility toward an objective rather than a stationary concept of fixed storage.
b. Along a military supply route there must be reservoirs where quantities of goods are temporarily held. These reservoirs and carriers (ships, motor vehicles, planes) loaded with cargo constitute the logistics pipeline, interpreted in a broader sense, the word pipeline might be considered as including all depots and depot operations nationwide.
c. The pipeline is both physical (with storage locations and
transportation facilities) and administrative (requiring processing of documents). The physical structure of the pipeline makes possible the flow of materiel through the military distribution system from the point of receipts from procurement of productions to the point of final use. Every physical element of the pipeline has a corresponding administrative element because every movement of the supplies requires processing of documents. 4. Mobile and Responsive Support
Supply organization must be sufficiently mobile to insure continuity of support, regardless of the speed with which the supported units are moving or the intensity of combat. The rapid movement of combat troops to achieve surprise or to concentrate power can only be effective if troops have sufficient supplies to achieve and hold their objectives. The capability of mobile and responsive support is the product of careful planning and disciplined training.
Supporting units are frequently in a static position (e.g. under
peacetime condition).
In order to develop and maintain mobile support capability, combat service support units must be trained to operate with minimum inventories. The key to success in this objective lies in substituting responsive supply action for stockage.
Among the techniques under continuing development to increase the
responsiveness of the supply action are unitization of supplies and scheduled supply, together with improved transportation.
Unitization of supply is the assembling of a number of items so that they can be handled as a unit. Scheduled supply is the shipment of predetermined quantities of supplies to using units without requisitions, on schedules agreeable to the receiving unit. 5. Environment of Support Operations
a. The tactical and physical environments in which combat service support operations are performed are important considerations in the analysis of the materiel distribution system. The physical environment includes the configuration and condition of the terrain, the weather, and the influence of the
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economic and technological development of the people in the area of operations.
b. The continuing conflict in Mindanao has presented the Philippine
Army an opportunity to test the effectiveness and versatility of its logistics system. The lessons learned from this experience emphasize the need for fast, flexible, and, when necessary sustainable logistics tactical units engaging the enemy. 6. Approaches to Analyzing Distribution Management
a. In the chapter or inventory management, specific approaches to analyzing inventory management were discussed with the exception of viewing the system according to commodity groupings. The same approaches are applicable to the distribution system. These are:
1) By activity for which materiel is being managed;
2) By criticality of materiel;
3) By the environment in which supplies are being used;
4) By the capacity of the system to generate demand data;
and
5) By classes of supplies.
b. In the first approach, the distribution system is viewed in terms of the use of the materiel. Materiel is used for:
1) he support of personnel;
2) The support of equipment;
3) The support of operations; and
4) The development and support of facilities.
c. The timing of distribution of materiel for the use of personnel is usually more critical than for the other elements. Personnel must have daily food and clothing and individual equipment when needed, while equipment and facilities may be idled for lack of repairs for a period of time without equivalent consequences. Even shortage of supplies requires for the operations (e.g., gasoline and ammunition), while serious is not usually as catastrophic as starving troops. Therefore, food will normally be distributed by schedules supply that is without requisition; but repair parts are normally supplied on presentation of a requisition. Stock age list are based on the frequency of request, while stock levels are function of the quantity requested. Materiel distributed in support of operations, however, must be delivered at times and in quantities distasted by the activities of operations. Therefore,
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timing and density of deliveries will vary, but delivery as needed is essential. Consequently, these supplies like food are often distributed automatically. The fourth category, materiel for development and support of facilities, poses special distribution problems. This materiel is usually bulky and required in large quantities.
d. The second approach to viewing the distribution system is by
the degree of criticality of materiel that is being distributed. This management emphasis may go as far as to separate the management of repair part for the critical items into an essentially separate distribution system. In such a special system, transportation might be dedicated specifically to delivery of the materiel, warehouse space segregated for storage, and specialist organized to control issue of the materiel. Several types of materiel are always critical in combat operations and therefore, their distribution may also have unique characteristics. All materiel considered essential to moving, shooting and communicating fall under this category. Using the degree of criticality as an approach to final distribution, the Direct Support System can be analyzed and viewed as an integral part of the total distribution system. This approach also helps the logistician to isolate special systems that are no longer required to meet the objectives that originally justify them. Every special system is potentially wasteful of the resources of the total distribution system, so initiating and maintaining each system must be clearly justified.
e. The third approach (through the environment wherin supplies
are being used) considers the distance of the supported activity from the source of supply and the environment in which support must be accomplished as among the factors which account for the unique characteristics of distribution systems within each area of operation.
f. The fourth approach to viewing the distribution system is by its
capability to generate demand data. In stable operations, the demand for supplies can be predicted by projecting post demand rates. However, when conditions are unstable, it may be advisable to push supplies into an area rather than wait for requisitions.
g. In the fifth approach, the ten(10) classes of supply are each
viewed a subsystem. Each class has certain peculiarities which, in turn, influence its distribution pattern. Some perishable items, for example, may be generally procured from the best available sources without concern for the procurement constraints inflicted on most other materiel. While the class of supply are often managed by the same activities stores in the same general areas, and delivered by the same transportation, there are enough significant difference to make their separate consideration a useful tool for understanding the distribution system. 7. Distribution Planning for Major Items
a. Distribution planning for major items of equipment has three major objectives. The first is to achieve and maintain effective and economical distribution and redistribution of PA materiel. The second is to have available
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and approve distribution plan for each new combat-essential and item before it is received by the supply system and for each item with insufficient assets to meet current needs of the peacetime force structure. The third objective is to establish control over equipment in short supply so that distribution is accomplished within established priorities.
b. Distribution plans are developed from equipment distribution
planning studies. These studies are used to determine the logistics capability to support unit actions, to allocate items in short supply, and to direct distribution and redistribution of assets from lower priority claimants to those of higher priority. These studies are also used for the initial distribution of newly adopted and modernization items. They plan the life history of equipment from the time it is first received to the time it is ultimately disposed of from the AFP supply systems.
c. The capability of equipment to continue to function properly in sustained operations largely depends on the immediate availability of repair parts; special tools test equipment, maintenance literature, calibration standards equipment and materials since the requirements for maintenance reports begin with the delivery of new end items or equipment to using, immediate availability of required repair parts and support item can be only assured through prior distribution of these items to support activities Therefore, a new end item of equipment will normally be distributed only when the required support item of equipment has been received by supporting installations it the PA.
8. Standardization and Integration of Data System
a. The ever-expanding use of automatic data processing equipment and digital communications networks requires a common language that must be recognizable not only to the machine and communications equipment but also to the human operator. Standardization and integration of data systems permit the output to other related data system.
b. The Centralized Logistics Data Bank Inventory Management
Control of the CLDB-IMC system is a computer-based system that is designed to monitor the status of all items carried by all PA inventory control points. The system is capable of providing current as well as historical information on all line items of the PA, whether at the installation or depot levels. It establishes a uniform flow of data from within the different ICPs and helps, logistics managers in their decision and policy making functions. This is made possible through the use of a single master file, known as the Master Stock Item Record (MSIR) file. The file provides for data information regarding stock status, within the PA Logistics Network.
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Section 6-2 Principles of Stock Control System 1. The Field Stock Control System
a. The concept of the PA Field Stock Control System emphasizes the use of the demand experience as the basis for stockage. Each supply each echelon in the field in restricted to stockage of items (plus items covered by exception) which are requisitioned a specified number of times during a 6/12 month period. Items that meet the criteria are placed on the authorized stockage list of the supply activity. Only those items appearing on the ASL may be stocked, all other items being requisitioned from the next highest echelon as required. Since each higher echelon in the field supply system stocks on the same basis, it is likely that a higher echelon has, and can supply the part that is not in stock al the lower echelon. The exceptions to the general rule is that the only demand supported items that may be placed on the ASL include authorized standby stock, maintenance items, and repair parts for items newly introduced into the supply system which may be stocked when approved by higher authority.
b. The economic inventory policy is incorporated in the PA Stock
Control System in order to make supply control activities more economical. The basis element of economic inventory policy include an economic stockage principle that governing the selection of items for the stockage list (hence the range of items stocked), an economic order principle, which, together with the operating level, determines the total depth of stockage for any items.
c. Those activities which do not use the economic inventory policy
normally use the demand criteria of six (6) demands per year to add an item to the ASL, and three (3) demands per year to retain an item on the ASL.
d. The Centralized Logistics Data Bank Inventory Management
Control of the CLDB-IMC system is a computer-based system that is designed to monitor the status of items carried by all PA inventory control points. The system is capable of providing current as well as historical information on all PA line items, whether at the installation or depot levels. It established a uniform flow of data from within the different ICPs and helps logistics managers in their decision and policy-making functions. This is made possible through the use of a single master file, known as the Master Stock Item Record (MSIR) file. The file provides for data information regarding stock status, within the PA Logistics Network. 2. Inventory Levels
a. The distribution system must readily adapt to changing situations. It should be simple, reliable, and responsive. Each commander with a combat service support function should control only the supplies necessary to accomplish the mission The list of stocked items is based on the frequency of demand or item essentially therefore, a low-mortality items may
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be frequently not be stocked even though the failure of such item may deadline a combat essential item of equipment. Using the principle of stockage, commander trade the relatively small risk of losing and item of equipment because of unpredictable breakdown for the vastly increased efficiency of distribution system. It is not burdened by stocks of these less frequently used repair parts. The risk is further reduced by establishing procedures for expediting shipment of non-stocked parts or by replacing these parts by cannibalization, fabrication, and local procurement.
b. A discussion of the terms most frequently used in the management of supplies will serve to illustrate and summarize concepts discussed in this chapter. These terms are:
1) Level of supply. the general term that used to plan and control supply operations. The level supply is the quantity of materiel authorized or directed to be held in anticipation of future demands. The level may be expressed in days of supply or in a quantity per item;
2) Requisitioning objective. the maximum quantity of
materiel authorized to be on hand and in order to sustain certain operations. The requisitioning objective consists of the sum of the stocks represented by the operating level and the order and shipping time (or procurement lead-time);
3) Operating level. the quantity of materiel required to
sustain operation in the interval between requisitions or between the arrivals of successive shipment;
4) Safety level. the quantity of materiel in addition to the
operating level, required to be on hand to permit continuous operations where there is a minor interruption in demand;
5) Order and shipping time. the elapsed time between the
placing of an order for stock and the receipt of the stock; 6) Stockage objective. the maximum quantity of material
authorized to be the hand to sustain the current operations and to meet unforeseen requirements. The stockage objective consists of the sum of the stocks represented by the operating level and the safety level;
7) Reorder point. the point in time when a stock
replenishment requisition should be submitted to maintain the stockage objective. The sum of the safety level of supply plus the level for order and shipping time equals the reorder point Another way of stating this is that each time and quantity of material equal to the authorized operating level is consumed, this is the reorder point and replenishment requisition is placed;
8) Day of supply. the unit or quantity of supplies that is
adopted as a standard measurement used to estimate the average daily expenditure of supplies under stated conditions. A day of supply is estimated,
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when feasible, by dividing supplies consumed over the previous 12 months by 360;
9) Due-in. the portion of stock requisitioned which is not immediately available for supply and which will not be referred to as secondary source of supply action, but will be recorded as a commitment for future issue. For example, if a field depot received a requisition which it could not fill, but due-in has beer established for the supplies indicating that the supplies would be received within the time limits established by the requisition, then the field depot would normally establish a due-out covering requisition and so notify the requisitioning organization; and
10) Reserves. Supplies that accumulates in excess of the
requisitioning objective and authorized to be retained for specific purpose; e.g., war reserve contingencies, mobilization stocks, and economic retention stocks.
c. To illustrate how stocks are replenished by reorder point system, assume that a supply organization has sufficient supplies on hand in order to:
1) Maintain the operation of its supported units for a
specified period of time (the operating level); 2) Sustain operation during the time it takes to place
replenishment requisition and receive a shipment of replenishment stocks (order and shipping time level); and
3) Afford protection against uncertainty (safety level). Over a
period of time, a quantity of stock equivalent to the operating level is consumed. At this time, a replenishment requisition is placed into the system. The supply organization continues to expand stocks until a quantity equal to the operating level is again consumed. At this point, a second requisition is placed. After the first replenishment requisition equal to the order and shipping time (if this time has been calculated correctly), the first replenishment stocks will arrive. This will increase the stocks on hand by an amount equal to the operating level. When a quantity of stocks equal to the operating level is again consumed, another replenishment requisition is placed.
3. Control of Storage Space
a. Supplies in storage must be cared for and protected to insure
that the will be available in serviceable condition when needed. Using the “first-in-first-out concept, storage should be designed for efficient receiving, storing, care in storage issuing, and accounting for supplies. Physical security from theft, sabotage and enemy attack is also considered. In addition, fire protection from contamination by chemical, radiological and biological agents may become an important consideration. There are two general classification of storage space: covered and open.
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b. Covered storage refrs to space that is within any roofed structures. This includes a variety of general and special-purpose structures. The general purpose warehouse constructed with roof, sidewalls, and end walls, provides excellent storage for many kinds of items. The single-story warehouse with a floor at truck bed level has become the standard type of warehouse because of its low operating cost. The dimensions of the platform and the aisles of the warehouse should afford maximum convenience for use of mechanical-handling equipment commensurate with efficient use of storage space Flammable storage warehouse are used for storing highly-combustible materials such as paint and oils. The unique feature of there structure is that they are normally separated into compartments and divided by firewalls. Explosives are generally stored in above-ground magazine or in igloos. The igloo is a type of magazine that is generally constructed of masonry with an arch-type roof and is covered with dirt. All ammunition storage facilities require detailed attention in construction and maintenance according to the explosive safety regulations which govern their use.
c. The rapid selection of stocks for shipments, efficient handling of
receipts, and the maximum use of space depend upon the effective use of an adequate stock locator system. The basic element of a good locator system is the record card for each stock item. Record cards contain the stock number, the unit of issue, nomenclature, and location for each stocked item. Since storage areas are laid out and marked in rows stocks, and levels a floor plan enables the stocks picker to match the location shown on the locator card with the floor plan and then to proceed directly to the stored item. Proper selection of locations of issuance and consolidation of receipts aid materially in keeping the number of locations against actual locations. Also, stocks locations are verified at a time when normal stock inventories are taken as a part of the regular inventory procedure. Maximum utilization of storage space (especially the covered storage which is always at a premium) takes precedence over the minimizing of the number of locations.
d. One of the most important functions of the storage operations is
for receiving supplies. Receiving operations concern the manner in which supplies are brought into the storage operation. Prompt and accurate processing of receipts is, a prime requisite of an effective storage operation. The central control office of storage operation establises overall priorities based on the receivied workload, as indicated by shipment arrival notices, initiates action to certain unusual equipment and labor requirements, assigns available vacant space to meet demands brought about by incoming stocks, and insures the dissemination of advance receiving concerned. Incoming shipments must also be checked carefully to include the tallying of incoming supplies, the inspection of the supplies, and the checking of documents.
e. Modernization of storage and materials and handling operations
must be accomplished where improved supply response and/or reduced operating costs are possible, using processes that were conceived to minimize manual handling in favor of maximum mechanized handling. The ultimate objective is the mechanized movement of material from time of
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receipt until it reaches the shipment consolidation point along the most direct route possible and with the fewest practicable enrooted handling. 4. Stock Records and Physical Inventories
a. The stock record consists of the stock accounting record, title insert, demand summary card, computation card, and due-out card for an individual item. These records furnish supply personnel at installations and in the field with an efficient, easily operated, and uniform method of stock recording. A stock record is established and maintained for each item appearing on the authorized stockage list of the account. A fringe asset (excess) file is established for temporary control of excess items of hand.
b. Inventories are taken for the following reasons:
1) To determine quantity of stock on hand by physical count;
2) To reconcile stock record balances with actual on hand quantity storage; and
3) To provide the accountable officer information necessary
to reconcile stock record balances at least annually.
c. Special inventories are taken when:
1) Credit balances occur which cannot be attributed to
clerical or machine errors; 2) Materiel release denials (warehouse refusal occur); 3) Location surveys or audits indicate unrecorded locations
of items for which there are no recorded location for a recorded balance and; 4) The installation commander or accountable officer so
directs.
d. Data from physical inventories is furnished to the supply managers so they can decide to procure, acquire, dispose of, or redistribute materiel as necessary to meet requirements and maintain the supply system at maximum effectiveness.
e. Inventories are frequently made by statistical sampling
techniques. A group of items are selected at random from storage depot inventories; the results are used as a basis for acceptance or rejection of the entire lot from which the sample is selected. Each lot as a minimum is usually inventoried by sampling method on an annual basis. If the prescribed accuracy level is achieved, further inventory is not required. When the required accuracy level is not achieved during sample evaluation, a complete physical inventory is required.
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5. Materials Handling
a. Materials handling involves the movement of materials and supplies from one place of operation to another without affecting their value and without performing any productive operation. The basic principles of materials handling require that:
1) Packing techniques such as palletization and
containerization must be standardized and coordinated with the design and procurement of materials-handling equipment, so that equipment at the storage location can handle all supplies delivered. Furthermore, the design of aisles and stocks in all types of storage facilities must be coordinated with the types to be procured. Platforms, ramps, and in transit storage facilities must be compatible with both the materials-handling equipment and the unloading characteristics of the transportation media;
2) The flow patterns of movement of supplies should be
designed and periodically reevaluated to allow for maximum utilization of materials handling equipment. The presence of idle equipment is often an indication of inefficient flow patterns. A straight line between pick-up and delivery points is the shortest distance between the points, the consideration for which is sometimes over-looked. Loading, unloading, and turn-around space is required. One of the basic objectives of materials handling is to organize handling so that the number and distances of moves are minimized.
3) Materials handling must be planned and organized so
that the most efficient piece of equipment is available for each moving or stocking operations. For example, a forklift is appropriate to move pallets a short distance;
4) Advance planning of materials methods and equipment is
performed concurrently with other planning activities and undertakings. Some of the factor that require advance planning include the need for protection against weather and breakage, the possibility of using unitized loads, the opportunities of standardizing equipment and methods, and the possibility of combining materials-handling methods, Safety is always a prime planning consideration.
5) The use of physical labor in the handling of materials in
storage must be kept to a minimum. While a certain amount of troop labor is necessary, this labor is by, no means free. In fact, the long-term cost to the Philippine Army using troops for labor makes it imperative that logistics managers exhaust other alternatives before turning to troop labor. One of the intangible costs of troop labor is the disruption of unit training; and in wartime, when manpower is always short, the use of large number of troops to handle supplies manually in shortage installation must be avoided. Consequently, the planning for procurement, operation, and maintenance of material handling equipment is important.
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6. Care of Supplies in Storage
a. Any program for the care of supplies in storage is an important responsibility of the storage and quantity control managers. The program is concerned with determining, through a systematic control procedure, the type of storage that is best suited to the item, the methods of inspecting the stocks condition, and the application of required preservation, packaging, and marking to ensure that the item is maintained in a ready for use condition.
b. Serviceable and economically-repairable unserviceable supplies
and equipment will be stored in warehouses as long as space is available. Controlled humidity space will be also utilized to the maximum practicable extent, giving priority to items for which controlled humidity affords greater degree of protection. When warehouse space is unavailable, items may be placed in shed storage or as a last priority in open storage.
c. Modern storage aids (platforms, pallets, bin storage and material
handling equipment) should be employed to ensure maximum use of storage space. All supplies shall be properly identified, classified by condition code, and properly marked for storage. Good housekeeping practices are essential to morale and safety,so all storage areas should be kept clean and orderly.
d. All supplies, materiel, and equipment that are entering or
already in the Philippine Arm supply system must be afforded the maximum degree of preservation, packaging, and packing required to prevent deterioration and damage during shipment, handling, and storage.
Section 6-3 Distribution, Shipment, Methods and Controls 1. The Flow of Requisition
a. The operation of the distribution system is normally initiated by the submission of requests by applicant units or supply units. The Centralized Logistics Data Bank Inventory management Control (CLDB-IMC) system utilizes a single document for Expenditures and Receipts (SLIDER) as the standard form to be used for all types of supply transactions. After six (6) copies of the SLIDER have been accomplished, it is ready for processing. During the process, one copy will remain with the requisitioned office while the five(5) other copies will go to the ICP Customer Service, warehouse stock control ICP input/output section, and the EDB operations. Basically, the SLIDER is in processed by Document Identifiers and Codes automatically so that the processing routine is used and the Master Stock Item Record (MSIR) file is automatically updated.
b. Requisitions usually move back through the distribution system
from the direct support unit toward the highest inventory control points in the Philippine Army. The first stockage point which the requisition reaches and that is authorized to carry the materiel in stock should be able to fill the
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requisition. At each stockage point, no authorized to carry the materiel, the requisition is recorded as a demand (a prescribed number of demands in a given time period authorizes the stock age point to stock the item of materiel and a new requisition is automatically punched, duplicating most of the information of the requisition). However, if the materiel requisition is not a stock item, the supply point will either establish a due-out (meaning that the requisition will be held on the file until a shipment is received at a stockage point) and notify the requisitioned; or it will refer the requisition to another source by preparing a new requisition (referral order) that duplicates most of the information on the requisition received except for the address. 2. Packaging and Containerization
a. The cost of packaging and containerization sometimes exceed the cost of the materiel enclosed. Packaging, however, serves a number of purposes; it preserves various conditions of storage, facilitates shipping and handling, and consolidates items to be used for the same purpose by customer. Often, the packaging must include blocking, bracing, and cushioningmaterials. The package must be weather-proofed against conditions in which the materiel will be stored. The external packing must be sturdy enough no withstand loading, unloading and stacking. A mechanization and automation of depots, packages may require special design features to adapt them to conveyors and other devices. Packaging also develops new dimension in the concept of containerization. Supplies of a particular type for support of weapons system or a specific organization may be placed in container or a group of containers and moved directly to the user where the containers may become self-contained supply points as well.
b. Materiel in the logistics system is subject to transportion by any mode or combination of modes- by land, by air or by water. A continuous effort is necessary to ensure effective use of the latest packaging techniques and materials. Each shipping task must be accomplished as economically as possible, considering the characteristics of both shipping and storage facilities. It is the responsibility of the packaging officer or the specialist preparing a specification, a standard packaging data sheet, or other documents for commodities to determine the packaging requirements to meet protection objectives. Military levels of protection are described in terms of the expected performance of the package or packs, and they must be translated into specific technical or design requirements for individual items categories of items. The following levels of protection apply equally to preservation, packaging, and packing:
1) Level A - Maximum military protection. The degree
required for protection against the most severe conditions possible during shipment, handling, and storage. Preservation, packaging, and packing designated as Level A will be designed for direct exposure to all extremes of climatic, terrain, operational, and transportation environment without protection other than that provided by the package and pack.
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2) Level B - Minimum military protection. The degree required for protection under known favorable conditions during shipment, handling, and storage. Preservation, packaging and packing designated Level B shall be designed to protect items from physical and environmental damage during known favorable conditions of shipment, handling and storage; and
3) Commercial Packaging - The degree of protection
normally provided by commercial suppliers to their customers for retail distribution. Preservation, packaging, and packing that is designated as commercial shall protect items against physical and environmental damage during shipment, handling, and storage.
c. The selection of appropriate levels of protection depends upon
the conditions expected to be encountered during shipment, handling and storage. Supply commodity managers must specify the appropriate level of packaging and packing protection in procurement actions to ensure that the materiel is delivered using contractor’s packages and are packed to meet the known or anticipated shipment, handling, and storage conditions in transit or at the destination.
3. Control over Stocks In-Transit
a. Transportation procedures for supplies use the standard punch card to request transportation and control movements. These cards are prepared by the shipment transportation officer when the shipper begins to pick and pack issued stocks. The transportation control number that used on the card is the Document Identifier (DOCID) number. The transportation priority number that is used is the CLDB Transaction Code.
b. To trace shipments and to measure the efficiency of
requisitioning and distribution operations, the Philippine Army has established the Supply and Transportation Evaluation Procedure System to report delays, estimated time of departure and arrival, and diversion of shipment.
c. The basic movement and control document is the Transportation
Control Movement Document. This also serves as a terminal handling document, cargo manifest, and tracing document. The cargo, manifest is a multi-purpose manual or mechanized data. The cargo out-turn report is a manual document that reflects all changes in quantity and condition of cargo which was occurred in the custody of the ocean carrier. It is used for ocean transportation management purposes and to establish responsibility or liability for cargo loss or damage.
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Section 6-4 Distribution of General Supplies 1. Pattern of Distribution of General Supplies
a. This section deals with the bulk of supplies for which the distribution patterns are similar. Sections V and VI separately discuss the distribution of petroleum products and ammunition because each is highly critical to combat operations, is fast moving, and has peculiarities which necessitate a distinct distribution subsystem.
b. Except for items authorized for local or open-market purchases, general supplies are procured and stored in Army Support Command and its subordinate units (FSSU). When possible, FSSU delivers directly to requisitioning units. When possible, general supplies are shipped from the producer direct to the requisitioner or from the Army Support Command to the requisitioner.
2. Stock Control
a. Stock records must always be kept up to date. Current and accurate postings must be made so that the records will always show the true balance of stock.
b. All supply items in the inventory list must have an Requisition
Object (RO) that will be recorded in the stock accounting record. The RO is the maximum quantity of the item authorized to be on hand and on order at anytime.
c. Any materiel on hand that is beyond the established requisition
objective quantity is known as an excess. Retention of assets above the RO is authorized under certain conditions.
d. Sample Computation
1) For Class II Supply (Combat Boots/Fast Moving Item)
Given:
Stock on Hand = 80 pairs
OST = 72 days
Due-In = 200 pairs
Due-Out (Back Orders) = 380 pairs
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Steps: (a) Get historical data for one year as shown below:
DATE UNIT DEMAND ISSUANCES REMARKS
15 Jan 95 71D,PA 200 pieces 200 pieces
28 Jan 95 21D, PA 220 pieces Due-Out
07 Feb 95 31D, PA 250 pieces 250 pieces
10 Mar 95 41D, PA 400 pieces 400 pieces
12 Jun95 51D, PA 215 pieces 215 pieces
16 Aug95 6ID, PA 180 pieces 180 pieces
17 Sep 95 71D, PA 160 pieces Due-Out
20 Nov 95 81D, PA 200 pieces 200 pieces
21 Dec 95 SOCOM 170 pieces 170 pieces
TOTAL 1,995 pieces 1,615 pieces
Note: From the above data, we can conclude that the due-out (DO) is 380 (220 + 160 or 1995 - 1615)
(b) Compute Quarterly Demand thru the Annual
Demand:
Annual Demand (AD) = 1995 pairs
Quarterly Demand = ¼ of AD
= 1995/4
AD = 499 pairs
(c) Compute Operating Level (OL) at 30 days
OL = 30/365 x AD
= 30/365 x 1995
= 0.82 x 1995
= 1635.9
(d) Compute for Safety Level (SL). Since the item is
fast moving the assumed factor to be used is 5% or 0.05. SL = .05 x OL
= .05 x 164
SL = 8 pairs
(e) Determine the Stockage Objective (SO)
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SO = OL + SL
= 164 + 8
SO = 172 pairs
(f) Compute Order-Ship Time Level (OSTL). As expressed in days, OST is 72 days.
Therefore, OSTL = 72/365 x AD
= 0.197 x 1995
OSTL = 394 pairs
(g) Compute for Re-order Point (ROP)
ROP = SL + OST
= 8 + 394
ROP = 402 pairs
(h) Determine the Requisition Objective (RO) RO = SO + OST
= 172 + 394
RO = 566 pairs
(i) Compute the Re-Ordering Quantity (RQ)
To do this, you must know the stock on hand (SOH), Order-Ship time 1evel (OSTL), Due-in and Due-out (back-orders).Thus,
RQ = RO + OST - SOH - DI + DO = 566 + 394 –
80 – 200 + 380
RQ = 1060 pairs
(j) Graphical presentation of the exercise. Upon delivery of the RQ of 1,060 prs it is assumed that all due-out shall be served simultaneously, and back-order 380 will be served. Hence the stock on hand on the day of delivery will be the RO (56 pairs).
If the ROP is 402, there are no due-in and due-out,
then the Re-Ordering Quantity at ROP is RO + OST - OH.
3. Methods of Accomplishing the Computation Card
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a. The computation will made by completing the form following
direction listed below: 1) Stock Number block. Enter the stock number found in the AFP or US publication. 2) Unit price block. Enter the cost of the item for the quantity expressed by the unit of issue code. The unit price must be based on acquisition lost. 3) Nomenclature Block. Enter the AFP authorized nomenclature of the item.
4) Repaired For Stock Block. Use this block only when the items come from the cannibalization point of unserviceable equipment that as and or return to stock inventory, mark “yes” in the Repaired For Stock Block, otherwise, mark “no”. 5) Line 1. Enter the month and year in which the
computation is being made. 6) Line 2. Enter the quantity demanded during the control
period. Take this data from the monthly summary of demand or issuances. Immediately before each Requisition Object (RO) computation is made, summarize all demand or issuance posted and compute the quantities demanded or issued during the control period by adding the entries in the bottom half of the recur line for the most recent twelve(12) whole months. This sum is entered on Line 2.
7) Line 3. Enter the OST using the most recent
replenishment receipts for an item. In computing for OST, exclude procurement activities with long delays from wholesale back order, unusual circumstances, or lack of funds. Subtract the requisition document date from the date of receipt is posted for each of the six receipts. Add the results and divide by six. Round up any fraction to a whole date.
8) Line 4. Order ship time level (OSTL).
OSTL = OST/365 x AD
9) Line 5. Operating level (OL). OL = No. of days/365 x AD
10) Line 6. Safety level (SL).
SL = .05 x OL (.05 for fast moving/o for slow moving)
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11) Line 7. Stockage Objective (SO). SO = OL + SL
12) Line 8. Re-Order Point (ROP). ROP = SL+OST
13) Line 9.Requisition Objective (RO) and RO = SO + OST
14) Line 10. Reorder Quantity (RQ)
RQ = RO + OST – SOH – DI + DO
b. Net Assets Computation. The net asset computation tells the supply handlers when to acquire stock and when to review for excess. When net assets (on hand plus due-in, minus due-out) become equal to or less than the ROP quantity, an acquisition action will be started as prescribed by AFPM 4-2 (Procurement Manual). When net assets become greater than the requisitioning objective (RO), a review will be done for the incurred excess supplies. A net asset computation will be done immediately after each RO computation; this will be done by using lines 11 through 1 of the computation card.
1) Line 11. Enter the balance of stock on hand as shown in the balance column of the item stock card (both serviceable and unserviceable).
2) Line 12. Enter the quantity due-in. Compute this quantity
by adding the balance due-in or stocks-in-transit shown on the list of PO’s served or requisitions.
3) Line 13. Enter the quantity due-out. Compute this quantity
by adding the stockman-hand that is ready for issuance to customer units. 4) Line 14. Compute the net asset. Take line 11 plus line 12
minus line 13 and enter the result on line 14. This is the net asset. 5) Line 15. Compute the average or shortage.
(a) If line 14 is larger than line 9, an overage exists,
enter the difference between line 14 and line 9 in the top half of line 15. (b) If the line 14 is smaller than line 9, a shortage
exists. Enter the difference between the lines 14 and line 9 in the bottom half of line 15.
6) Line 16. Enter the quantity excess in the upper half and
the amount in pesos in the lower half of this line.
(a) If line 15 shows a shortage, line 16 is not used; leave it blank.
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(b) If line 15 shows an average, review the excess.
7) Line 17. Enter the purchase order (P0) number assigned to the acquisition action or shipment documents. If line is shortage compare this quantity to line 8. If the net asset position on line 14 is equal to or less than the ROP quantity on line 8, start an acquisition/requisition action.
8) Line 18. Three entries provided to take care of three
partial receipts or shipments. Enter the receipt or shipment date and quantity and the balance due-in or due-out on the proper line.
4. Authorized Stockage List (ASL)
a. This is list controlled but flexible. It shows the item that has
proven, by experience, to be sufficiently active at the AFP Supply Depot to warrant stockage. It also contains other items with a projected need. The ASL is the AFP Supply Depot authority to stock the item. Only those items that qualify for stockage under the criteria in this chapter can be on an ASL. Items on the ASL are referred to as ASL items. There are three(3) types of ASLs. These are:
1) Customer Direct Support ASLs. These are kept by MSPs, FSSUs and or its equivalent direct support units and installations. They stock items to provide supply support to customer units. These ASLS are primarily based on demand.
2) Mission Direct Support ASLs. These are kept by general
support maintenance units, installations and other activities having a development, maintenance, manufacturing, production, research o testing mission. Mission direct support ASLs are kept by an organization for internal mission support. These ASLs stock item needed to support the mission, regardless of demand.
3) Customer General Support ASLs. These are kept by the
major services support units and AFPLC. These ASLS function between the direct support and the wholesale levels of supply. These genera support supply base accommodates urgent peacetime readiness, requirements and wartime pipeline disruptions.
b. The Major Services Supply Units and AFPLC Commanders and Commodity/Item Managers are responsible in the establishment of ASLs. The proposed ASL of items to be carried by said units shall be forwarded through command channels to CSAFP (Attention: J4) for approval.
c. Stock demand of the AFP Supply Depots shall be based on
recurring demands received during the most recent twelve(12) whole months (the control period).
1) Stocked demand items are added to the ASL when they have had six recurring demands during the control period. Stocked demand
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item are kept on the ASL if they have had three recurring demands during the control period.
2) Major Service commanders can approve the addition of
peculiar items intended for unit operations to the ASL as stocked demand items when they have had three recurring demands the control period. When this is done, these items are kept on the ASL if the) has had one recurring demand during the control period.
3) The DCS for Log, J4 is also authorized to apply a more
stringent addition or deletion criteria to all material categories. The CSAFP must be advised when this option is exercised.
4) Submit requests of authority to apply ASL addition or
deletion criteria other than that in a) through c) command channels to higher headquarters (Attention: J4).
d. ASL Constraints. Constraints limit the range and/or depth of an ASL. They revent on ASL from conforming to the stockage plan in this chapter. Two types of constraints maybe applied to an ASL. No other constraints of ASL are authorized.
1) Reduction in stockage levels maybe necessary when the mission of the AFP support units requires movement, even when the support unit’s ability to move is limited.
(a) Supplies which were prioritized in particular operations are the last candidates for mobility constraints. Non-essential supplies for the said operation may be stored in fixed locations or left at home station during mobilization or field training.
(b) The extent of the mobility constraints is defined by
the amount of ASL weight/cube that exceeds the vehicular capacity authorized by TOE to move the ASL.
2) Reductions in stockage levels due to fiscal constraints are authorized for all AFP Supply Depots on a temporary basis.
(a) Supplies which were prioritized in a particular
operation will not be constrained for fiscal reasons. Other non-essential supplies for the said operation may be constrained as follows.
(1) Non-essential items qualifying for ASL addition on a demand supported basis need not be added to the ASL until the constraints has ended.
(2) Non-essential ASL stock replenishment may
be delayed by lowering the ROP to level of the OSR (eliminate the SL); and
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(3) Reductions in the OL ARE NOT PERMITTED. To do so would cause a larger requisition volume for a smaller average quantity with no real savings.
(b) Submit report of supply constraint whenever a fiscal constraint that was not previously reported is applied.
5. Stock Location
a. One uniform stock location system will be established and used for the AFP supply transactions, installations, and storage activities. This system will provide a centralized stock locator file to the maximum extent practicable. Stock location system will make optimum use of manual and automated data processing equipment.
b. Planning for storage locations for classified, sensitive and/or
pilferable items will be given careful study and shall be properly coordinated with cognizant offices to ensure the security and safety of stocks while in storage.
c. The stock location system shall pinpoint an exact storage
location in a simple and understandable manner to minimize training requirements of involved personnel to assist in the timely and accurate storage, and to provide a base for the optimum utilization of available space.
d. Standard locator system shall involve the use of planograph on which the actual layout plan for each storage structure will be drawn.
e. Storage shall be planned prior to the actual start of storing
operation to ensure that the floor and cubic capacity of the warehouse will be utilized to the greatest extent possible.
f. Standard locator system shall be provided for the identification
of each storage area and every warehouse. Likewise, the same system shall also be provided for the layout of each section or subdivision of each warehouse and storage unit to permit quick identification of each location.
g. Major factors to be considered in planning the layout of storage
such as similarity, popularity, size, movement frequency, and characteristics of material shall be uniform throughout the AFP supply installations.
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CHAPTER 7 TRANSPORTATION MANAGEMENT SYSTEM
Section 7-1 Fundamental Concept
1. General. Everything that is provided by the supply system and organizations it support flows through the transportation system. Transportation services create place-utility by moving an item from an area where it has little value to one where it has use, and time-utility by insuring an item is at a given place at the time it is needed. Traffic managers in managing the transportation system constantly face new challenges both in the services that must be provided and the utilization of improved transportation equipment and procedures. All transportation activities, however, derive from basic concepts that may be summarized in terms of customer satisfaction. 2. Objectives. The overall objective of transportation service is the movement of personnel and material from one point to another in the least time and at the least cost, considering the needs of the customer and the nature of the traffic. The achievement of this objective is not easy. The size and complexity of the transportation system, regulatory, restriction, cost differentials, and rate of innovation in equipment and procedures make it important that transportation services be directed by skilled managers who frequently reevaluate missions and continually search for techniques of improving service. Some of the subordinate objectives of a progressive transportation system are:
a. To expedite shipments through the transportation system when necessary, and to provide management of the cargo movement from consignor to consignee;
b. To achieve maximum economy commensurate with other
requirements of shipments; and c. To evaluate performance, identify areas for improvement, and
take action to improve customer service through increased utilization of improved transportation equipment and procedures. While the inter theater transportation movements system is normally oriented toward the theater of operation, an equally important function of this system is the return of personnel and retrograde movement of material and empty containers. Appropriate management controls to insure timeliness and economy of retrograde shipments must be also exercised. 3. Importance of Transportation. The need for efficient transportation facilities for the movement of personnel and goods cannot be overemphasized. Without economical and effective means of transporting goods, modern civilization could not exist in the form is does today. Transportation affects virtually every segment of our society, specifically production, manufacturing, mining, agriculture, distribution, inventory levels,
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and military planning and operations. Vital in peacetime to the economic health of the nation and the well being of the populace, a smooth-functioning transportation system is equally vital in the event of emergency or in time of war. 4. Special Considerations of Military Traffic Management. Because of the vital number of service offered by the transportation carriers, the complexity of their cost of operations, and the important services to production and distribution, the specialized carrier of traffic management has developed. Traffic managers must be aware of the available transportation carrier services and their cost to be able to coordinate with those persons who have supplies to be moved. Without such coordination, failures are most likely to occur in the timely delivery of shipments even though sufficient transportation service is available with proper coordination. Shortages, however can be met through planning, and, if necessary, establishing priorities. Without proper coordination and planning, wasteful transportation practices occur, thus increasing the operational cost to an excessive level. Should this happen in the military, the Batasang Pambansa and the public would sharply criticize such waste. Military traffic management is different in some respects from civilian traffic management. For instance, many of the items shipped by the military are not likely to be found in commercial traffic. Military installations are often located away from large industrial centers, and some shipments are outside of existing commercial rate agreement because of overriding national defense considerations. Military traffic must be responsive to military needs. It requires considerable flexibility in rate-adjustment of routes and authorization of special packing, bracing or other services, including on-the-spot rates to meet military requirements. 5. Modes of Transportation
a. All modes of transportation (air, motor, rail, water, and pipelines) are used to transport either personnel or cargo. Each mode of transport has inherent capabilities and limitations that must be recognized and considered when integrating the various modes into an overall transportation system.
b. Air transportation is a premium, rapid, and high-cost mode of
transportation that is best employed in the movement of personnel and high-priority shipments. The airlift services of the AFP are provided by the Philippine Air Force(PAF).
c. Ocean shipping, using large fast container ships offer major improvement in military logistics and important savings in land defense and ocean coasts defense, pipeline inventory, and logistics operating forces.
d. The chief characteristics of the motor transport mode are
flexibility, availability, and the capacity to transport personnel and cargo from origin to destination without intermediate transfer to other modes. In addition to line and local and land operations, this service is of particular value to all integrated transportation system as a connecting link between the other modes and the receivers.
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e. Inland waterway systems can transport great quantities of containerized and brake bulk cargo. It can move heavy and outsized cargo not easily transported by other modes. Disadvantages of inland waterway transport include slow speed, vulnerability to weather or enemy action, and difficulty in repairing damage to facilities such as docks and piers.
f. Pipelines are the preferred mode for moving bulk fluids.
Pipelines have the advantages of dependability, high volume capability, and the need for relatively few personnel for operation and maintenance. Their flexibility is limited by immobile facilities. Additionally, they are vulnerable to sabotage and enemy action.
g. Rail transport is characterized by the capability to move large
tonnage of cargo and large number of personnel over long distances at comparatively high speeds, and the fact that it is an all-weather modes of transport. Because it must operate over a fixed roadbed, it is one of the least flexible modes of transportation. Virtually any commodity can be moved by rail subject only with clearance restriction along the route and the availability of specialized equipment (e.g. refrigerator or tank cars). Two principal methods are used to ship standard land containers by rail. The trailer-on flat car (TOFC) system involves transporting both the container and the containers chassis or railroad cars. A truck can drive the containers on and off the freight cars, thus negating material including equipment requirements. In the container-on -flat car (COFC) operations, containers are removed from the use of material handling equipment which reduces the requirements for chassis and tractor. 6. Relating Transportation to Other Logistics Functions
a. Transportation interfaces with all other functional areas of logistics. The following discussion relates the transportation function with other function of distribution to make up the overall distribution system.
1) Production Planning. In the operation of overall and
rebuild programs, the use of premium transportation to avoid production line shutdowns due to lack of components is easily justified, (e. g. , when civilian labor unrest causes strikes or adverse weather condition prevents surface shipments) to avoid other high costs.;
2) Protective Packing. The degree of protection which is
required for cargo being transported widely varies. For example, items shipped by air may requires less protective packaging than items being shipped by rail. Also items being shipped by container requires less protective packaging since the container itself provides protection. Thus, logisticians in procurement can avoid the cost of excess protective packaging if they know how the item is being shipped and stored;
3) Materials Handling. The relationship between transportation and materials handling has become more important with the increased use of containerized shipments. Materials handling equipment must
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be capable of operating with the size and type of container that is being used. In order to use a specific container to ship to a customer, that customer must have suitable materials-handling equipment for use in the theater of operations. Special attention should be given to the type and strength of the surface or pavement required for operation of the equipment. A superior equipment lift capability is of little use if the required work area surface /pavement is unavailable or requires an inordinate construction effort; and
4) Inventory Management. The interaction between transportation speed, inventory size, and location is to be illustrated by the direct support system (DSS). This system, by relaying on fast stock replenishment shipments, will either eliminate or significantly reduced inventory stockages in the rear areas.
b. Areas identified above are not intended to be all inclusive. They serve only to illustrate the kinds of interrelationships that we find in our logistics system. Logistics managers have control over some of the segments AFP distribution system. They may choose the mode of transportation to be used, the quantity of items to be packed together in each unit, as the type of packaging the manufacturer is required to furnish with the item procured. On the other hand, the logistician can only respond to changes in segments of distribution over which he/she has no control. For example, a logistician can respond to changes in costs of shipments by one of the modes of transportation. He/she can only respond to decreased availability of break bulk ships on which to ship cargo to operation area. Similarly, a logistician has no control over the availability of carrier capacity to move cargo on short notice. In such manner as to accomplish his/her mission in the most efficient and economical way possible.
c. Trade-offs in cost and time, which can frequently be made within
the distribution system, provide logistics managers with many flexibilities in accomplishing the distribution function. Trade-offs also require that logisticians remain vigilant in assessing the overall effect of changes made voluntarily or involuntarily to any segment of the distribution system. Logisticians need not know all the intricacies involved in transportation trade-offs with other functional areas. He/she should only be aware that trade-offs are available and alternative be considered after analysis by the experts in functional areas under examination.
d. An example of the trade-off concept in operation is the current
extensive use of air cargo shipments by both military and commercial organizations. Air cargo shipments can never be justified by a comparison of the cost of transportation alone. However, such shipments can often be justified when consideration is given to the reductions to other cost that this form of transportation allows.
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Section 7-2 Characteristics of an Ideal Terminal
1. General. A terminal is any military or commercial facility at which personnel are loaded, unloaded, and handled in transit between any of the various modes or means of transportation. Ideally, these terminals should be located at relatively few locations in major population and industrial centers where all modes of transportation coverage to achieve economics through volume movements, expeditions handling, and centralized management control. The principal operating characteristics of an ideal terminal are described below using an ocean terminal for illustration. 2. Consideration. A terminal is usually gauged by how effectively it loads, unloads handles in transit, and clears a given amount of tonnage or personnel per unit of time, and the cost involved. Poor performance in any one of these areas can influence the terminal’s overall efficiency. During wartime, emphasis on terminal operations should be placed on expeditions loading and unloading of ships and the rapid movement of materiel into and out of the terminal to meet required delivery dates. During peacetime, additional emphasis is placed on the reduction of costs. Costs reduction considerations include:
a. Reducing terminal costs for ship;
b. Minimizing time intransit;
c. Maximum use of equipment and reduction of handling
requirements; and
d. Avoidance of damage. 3. Characteristics
a. An ocean should be designated to all modes of transportation that link with the terminal. This includes container and break bulk vessels, ocean and fiver craft, barges, rail and motor transport, and aircraft (both fixed and rotary-wing). Handling equipment should be able to conveniently move any item between any two transportation modes or areas. Multipurpose areas may also be employed using handstands with flush or recessed rails for use by either rails cars or aircraft.
b. Terminal facilities must be capable of handling shipment
configurations consisting of conventional break bulk cargo; unitized loads including standard cartoons, banded pallet loads, Conex Milvan and commercial-type containers suitable for on/lift-off, or roll-on/roll-off, and outsize items such as telephone poles, dock or bridge components, and engineer machinery. Ammunition and bulk petroleum are normally received and shipped through separate specialized terminals.
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c. The terminal should be designed to operate at considerably less than full capacity during peace time, with the capability to expand rapidly from that level to full capacity during wartime without serious disruption of cargo flow (both outgoing and incoming). At ocean terminals within a theater of operations it is desirable that containers move through the terminal without interruption. Stuffing and stripping operations at the terminal should normally be restricted to the transfer of cargo from damaged container. However, a stuffing and stripping capability is necessary at inland terminals where containers are received with contents addressed to various consignees located in the front areas of the combat zone.
d. The terminal should have facilities to consolidate small units readily and efficiently into larger area with standard, cargo-handling system. The terminal should be designed with maximum flexibility to handle emergencies such as delays or unexpected accelerations in cargo input, power failure, labor shortages, and conditions of combat. Hardstands should be conveniently located for container and vehicle, storage, vehicle processing, and miscellaneous purpose as required. These areas provide the terminal with extra working space and flexibility. Additional facilities are also required in support of the terminal to include food service facilities, parking area, computer capabilities; fences, checkpoints, and fuel and repair facilities. Decontamination or fumigation facilities is also required. Overseas terminals should also have the capability for treatment of retrograde cargo to remove or kill rodents, parasites, fungi or other pests that present a hazard on return of the materiel to the collecting depot. 4. Physical Layouts and Cargo Flow
a. The terminal should provide fast and efficient berthing and loading of all commercial and military ships (for example, conventional, role-on/roll-off, and container ships). The loading facilities should take maximum advantage of modern ship design and equipment, but also retain the ability to load older ships that may be used in a major mobilization. The layout of berths should be designed for optimum loading and unloading to include loading and unloading of containers barges from or into the ships. The terminal should provide warehousing as close as possible to each and provide necessary facilities for tracks and railcars. Ideally, information on ships and cargo is received in the terminal head of the cargo so that cargo planning and ship loading can be planned in advance.
b. Efficient cargo flow, both into the terminal for ship loading and
out of the terminal as it is unloaded from ships, often becomes a serious problem and requires continuous attention. Storage should be held to a minimum and should not block the working area. Ideally, the flow of cargo into the terminal should be able to move congestion, and import cargo should not impede the flow of export cargo.
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Section 7-3 Transportation and Operation
1. Planning for Support of Military OPLAN
a. Transportation planning in support of a unified or specified commander’s OPLAN is directed toward the solving complex strategic movement problems. Transportation planning addresses inter-theater manpower, materiel, and equipment from point of origin to destination. In transportation planning, resources, mobility support facilities, and intra-theater transportation assets must be assessed. In terms of impact on mission accomplishment, priorities must be established. The movement program serves as the basis for the development of detailed transportation tables and schedules in the execution phase of the plan.
b. The payoff in transportation planning lies in the timely delivery to
planned destination of both effective combat forces and the means for their sustained support.
1) Effective combat forces include both unit personnel and unit-related supplies and equipment ; and
2) The means for sustained support include support forces,
replacement and filler personnel, re-supply and build-up construction personnel, materiel, and equipment
c. Only the part of the total resources requirement which requires movement needs to be addressed in the program. At the outset of transportation planning, all requirement data are assessed in terms of their point of origin and destination. Having determined what is to be moved, requirements (i.e. force increments, personnel increments, and cargo increments) are sequenced in the order of desired arrival at destination and the mode of transportation is selected; port of debarkation(POD) and intermediate POD are determined; time-distance factors are applied; departure date is reckoned; conflicting requirements for limited transportation assets and mobility support facilities are reconciled, and the movement program is tested for feasibility. 2. Objectives. The objectives of transportation planning are to:
a. Aggregate and sequence by destination and required delivery date (RDD) the movement requirements of all participants in the plan;
b. Established the lift mode, port of embarkation (POE), departure
date, port of debarkation (POD), arrival date, and priority of each force, personnel, and cargo increment;
c. Asses lift allocations and the capability of mobility support
facilities for adequacy and identify shortfalls and limiting factors;
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d. Identify en route support requirements of the transportation operation agencies (TOS’s);
e. Provide data for the further refinement of the time-phased force
deployment list (TPFDL), time-phased supply and equipment lists, and the base development plan;
f. Document transportation requirements data in a format can be
tested for feasibility.; g. Develop a feasible movement program; and h. Produce a time-phased transportation requirements data.
3. Elements of Transportation Planning. The main elements of transportation planning are:
a. Requirements that need movement, along with related movement characteristics data relating to all military forces which are integrated sequence, and compiled into a single time-phased listing.
b. Lift mode of destination – the selected lift mode or modes serves
to identifies the type of transportation that will be used to move the force, personnel, or cargo increment between the point of origin and destination.
c. Port of embarkation determination – a POE is geographic
location (airfield, seaport, land line terminal, or other area) at which strategic movement originates. The POE and the point of origin of a force, personnel or cargo increment may be allocated or may be separate locations.
d. Port of debarkation determination – a POD is geographic
location (airport, seaport, land line terminal, or other area) at which a leg of a planned movement ends. Destination and POD may be allocation or maybe separate locations.
e. Timing – Timely delivery of forces and the means for their
sustained support is what transport planning is all about. Flexibility in the movement program is the key to scheduling. In the interest of flexibility, timing of the beginning and ending of each leg is expressed in terms of the earliest dates for each force, personnel, and cargo increment. The basic constraints are:
1) RDD at destination;
2) The time when forces, personnel and cargo increments are available for movement from their point of origin;
3) Time or distance factors between the point of origin, port
of debarkation, and destination;
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4) Throughout capacities of related mobility support facilities; and
5) The capacity and security of staging bases and supply
depots.
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CHAPTER 8 DISPOSAL MANAGEMENT SYSTEM
1. General. Property disposal is the third and last phase in the supply management cycle where the first two phases consist of procurement and utilization and maintenance Disposal occurs when either a piece of equipment or property can no longer provide efficient service or has been rendered useless due to obsolescence even though the material s still working.
Disposal procedures should be immediately initiated to avoid further deterioration of the property and consequent depreciation in its value. A systematic and timely disposal will yield benefits in terms of, a higher appraised value and available storage areas for other purposes. To facilitate the disposal of the increasing quantity of unserviceable equipment and property, the heads of the various departments or agencies have been authorized to dispose of such equipment and property. Together with such authorization, a uniform procedure of government property disposal is also prescribed.
Disposal Management System also serves as a guide to agencies by providing informative and prescriptive materials or the legal provisions, responsibilities, procedures, conditions, and requirements concerning disposal actions.
2. Legal Bases. Disposal activities are governed primarily by the following issuances:
a. Executive Order No. 888, Series of 1983.
b. Executive Order No. 888 dated March 18, 1983 which stipulates
the following provisions:
1) The authority of the Ministers (now Secretaries) and heads of Ministries (now Department or Agencies) to dispose of their respective unserviceable equipment and disposable property;
2) The creation of a disposal committee in each department or agency which will be composed of the representatives of the owning department or agency, the Bureau of Supply Coordination and the Commission on Audit. 3) Museum materials that were acquired and preserved solely for exhibition. Any antique property and works of art which shall be referred to the National Museum for the determination of its disposition and appraisal of value;
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4) Documents that were submitted for copyright in coordination with the National Library; and 5) Models submitted in connection with applications for patents in accordance with the Bureau of Patents, Trademarks, and Technology Transfer. Excluded from the coverage of this manual are: a. Real property, which shall be governed by the DBM-DENR-
DPWH Joint Circular No. 1 dated September 30, 1989. Disposal of real property shall be done in coordination with the Department of Environment and Natural Resources; and
b. Records, which shall be governed by the DECS Department
order No. 13-A dated 3, 1988. 3. Definition of Terms. These are following terms which will be used to refer to disposable government property:
a. Abandoned Property - any personal property in the possession of any government agency without a known owner.
b. Beyond Economical Repair - when the cost of repair and
maintenance becomes prohibitive and disadvantageous to the government because of factors such as:
1) maintenance expenses
2) downtime
3) replacement cost of spare parts
4) frequency of breakdown
5) Alternative modes such as rental of equipment or outright
replacement
c. Economically Repairable — refers to property that which can be rehabilitated and maintained at a cost economical to the agency, considering the five (5) factors mentioned in item 2.0 above.
d. Equipment — any property other than land, structures and fixed
facilities haved a useful life greater than one year, the cost of which amounts to P1,500 or more (per COA Circular-86-200B), and which when used does not suffer any material or substantial change or alteration in size or form.
e. Excess Property – refres to property that is beyond the
requirement of the owning agency but may still be needed in some other government agencies.
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f. Expendable Property – refres to property that which may be
consumed spent or used up such as supplies. g. Forfeited Property — refres to property that which is acquired by
summary process or by order of the court pursuant to any law in the Philippines.
h. Materials - are expendable commodities used by the government in the process of manufacture or construction including parts or remnants from destroyed or damaged fixed assets.
i. Non-Expendable Property – refers to property that which cannot
be consumed spent or used up, such as equipment. j. Obsolete Property – refrers to property which has lost its
efficacy either due to technological advancement, change of procedures reorganization of office, or completion of project.
k. k. Scrap/Junk — fragments of discarded materials that has
no value except for its basic material contents and which cannot be reprocessed and reused in the operations of other government property.
l. Supplies – these are expendable commodities which are
normally consumed within a year in connection with government operations. m. Surplus Property - excess personal property that is no longer
needed by the government. n. Unserviceable Property – refres to property that which is beyond
repair and has no more utilization potential. 4. Disposal Activities/Processes
a. Creation of the Disposal Committee.
b. Organization The creation of a Disposal Committee in each department and agency
is provided in E.O. 888. On the other hand, E.O. 285 stipulated the reconstitution of the Disposal Committee as follows:
Owning Department or Agency - Chairman
Commission on Audit - Member
Department of Budget & Mgmt - Member
The Regional Disposal Committees are organized in the same manner,
with representatives from the following:
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Regional Office of Owning Dept/Agency - Chairman
DBM Regional Office - Member
COA Regional Officer - Member 5. Functions
Disposal Committee or Regional Disposal Committee
The functions of the Disposal Committees and the Regional Disposal Committees as provided in E.O. 888 are the following:
1) Inspect or authorize the field offices of department or
agency of to inspect the unserviceable equipment or property and to verify justification for disposal.
2) Set the final appraised value of all disposable property
considering obsolescence, market demand, physical condition, and result of previous biddings for similar property;
3) Recommend to the head of the department or agency for
approval the manner of disposal; and 4) Conduct public biddings for the sale of disposable
property on an “as is, where is” basis and to recommend a corresponding award.
Recommendations of Disposal Committees in the regions and in
agencies attached to certain departments shall be subject to the final approval of the head of the department concerned.
6. Chairman and Members of the Committee. The Disposal Committee Chairman calls the meeting of the Committee and initiates the activities in the disposal process. In cases of conflicts or differences, the Chairman shall make the final decisions or recommendations shall be submitted to the head of the department or agency for approval.
The members are vest with the authority to make decisions on behalf of their respective offices during the various committee deliberations. The members are expected to undertake inspection, appraisal, and valuation activities as a group or individually, and participate in the bidding and awarding activities.
7. Secretariat Services. A Secretariat and technical staff which will be selected from existing personnel of the agency shall be formed to handle all the Committee’s technical and administrative matters as well as the safekeeping and systematic filing of Committee documents and records.
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8. Designation of the DBM Representative. The DBM representative to the Disposal Committee shall be designated by an authorized DBM official upon submission by the agency of a letter requesting such designation.
a. Determination of Disposable Property. Any or all of the following
conditions shall constitute disposable property: 1) Property which can no longer be repaired or
reconditioned; 2) Property whose maintenance cost/costs of repair
outweighs the benefits and services that will be derived from its continued use;
3) Property that has become obsolete or outmoded because
of changes in technology. 4) Serviceable property which has been rendered
unnecessary due to change in the agency’s functions or mandate; 5) Unused supplies. materials, and spare parts that were
procured in excess o requirements; and 6) Unused supplies and materials that has become or which
is determined to be dangerous to use because of long storage.
b. Submission of Documents Pertaining To Disposable Property
Accountable officials in possession of unserviceable property shall submit to the Disposal Committee, through their respective heads of offices, the following accomplished forms, as appropriate:
1) Inventory and Inspection Report (I & I Report, other wise
known as General This Form No. 17-A). This form covers semi-expandable material and equipment and non-expendable supplies
2) Individual survey report, duly certified by the Supply
Officer and Head of Agency; 3) List of missing spare parts, duly certified by the Supply
Officer and Head of Agency; 4) Stencils of chassis and engine numbers of motor
vehicles; and 5) Current photographs in two (2) positions (chasis and
engine number of motor vehicle).
9. Report of Waste Materials (RWM otherwise known as General Form No. 64-A). This form covers expendable materials, supplies, and
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consumable including spare parts, empty containers, and remnants from destroyed or damaged fixed assets. 10. Invoice Receipt of Property - (IRP otherwise known as General Form No. 30-A). This receipt covers government property transferred from another agency which has become unserviceable and is duly recommended for disposal by the Head of the Agency. (See Annex C. Inspection)
11. Objective. Inspection is aimed at obtaining a first-hand observation of th physical and operational condition of the property and their marketability or ability to attract prospective buyers.
12. Conduct of Ocular Inspection. Inspection may be done separately by each member of the Disposable Committee or as a group where practicable. In conducting of ocular inspection, the following activities shall be performed, where applicable:
a. Verification of stated serial number, motor number, property number, and other specifications that are necessary for establishing correct identification of the property.
b. Determining the physical condition or general appearance of the
property relative to:
1) The equipment being operational, economically repairable or beyond equipment;
2) The availability of spare parts and the general
obsolescence of the equipment: and 3) Determining the quality, degree, and extent of
maintenance and repair done on the equipment.
c. In cases where the equipment is declared to be junk, the total estimated weight per lot should be determined to form basis for the appraised value. The cost per unit of the property or supplies that were inspected will depend on the kind of material appraised.
d. Appraisal 13. Objective. The objective in computing the appraised value of the property of disposal is to set the government’s minimum selling price so that the government shall receive fair compensation for the items sold. The Disposal Committee members, including the owning agency, shall each prepare its appraisal report. 14. Basis of the Computation. After having conducted the ocular inspection and regardless of the mode of disposal to be undertaken, the appraised value shall b computed using as basis, the information or data that
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appears in the Inventory and Inspection Report, Report of Waste Materials, and Invoice-Receipt for Property.
The following basic variables are to be used:
a. Year of acquisition;
b. Cost of acquisition; c. Replacement Cost.
15. Formula. In computation of the appraised value, any of the formula as enumerated below in versions may be used depending on the information available:
a. Version 1. This is used for all types of property where the acquisition cost and year of acquisition are known.
APPRAISED VALUE = RUV x CF x CFF x No. of units
Where:
RUV= (AC-SV) x R / L+SV
b. Version 2. This is used for all types of property where the
acquisition cost an year of acquisition are unknown but the replacement cost can be established.
APPRAISED VALUE = RC x CF x UF x No. of Units
c. Version 3. This is used for all types of property where the acquisition cost is unknown, but year of acquisition and replacement cost can be established.
APPRAISED VALUE = RC x AF x CF x No. of Units
Legend:
RUV—Remaining Useful Value
CF — Condition Factor
CFF—Currency Fluctuation Factor
AC — Acquisition Cost
SV — Salvage Value
R — Remaining Useful Life
L — Estimated Service Life
AS — Actual Service
RC — Replacement Cost
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UF — Usage Factor
AF — Age Factor
19. Definition of Terms (as used in the formulae):
a. Acquisition Cost (AC) - refers to the price or amount at which the property was purchased or acquired.
b. Replacement Cost (RC) - refers to the current market price of
similar new equipment; or if the equipment is no longer available in the market due to product obsolescence, the market price of similar equipment which can functionally replace the item appraised.
c. Currency Fluctuation Factor (CFF), or Peso to Dollar rate.
APPRAISAL YEAR over P to $ rate ACQUISITION YEAR as used in Version 1) - refers to the U.S. Dollar reference rate relative to the Philippine Peso at the time of appraisal/acquisition. (See Annex D for Annual average of US Dollar Guiding Rate)
d. Estimated Service Life (L) - refers to the length of service life
that may be expected from particular equipment assuming normal utilization. See Annex “E” for Table of Estimated Service Life of Equipment/Property.
e. Actual Service (AS) refers to the age of the equipment or
property from date of purchase or the difference between the year of disposal and the acquisition year.
f. Remaining Useful Life - refers to the difference between the
Estimated Service Life (L) and the number of years of actual service (AS) of the property. If the computed R is less than zero, R is assigned a value of zero(0).
g. Salvage Value (SV) - refers to the value that is equivalent to ten
percent(0.10) of the acquisition cost of the equipment property.
h. Physical Condition (PC) refers to the condition of the property at the time of inspection in relation to observable factors such as form, physical state, general appearance degree of deterioration/obsolescence, completeness of components, marketability of the property/components and other similar observable factors.
i. Condition Factor (CF) - refers to the value used for
computational purposes, corresponding to the Physical condition of the equipment or property.
If D is: Value of AF is:
D<=1.00 0.100
1.00<D<=.090 0.118
0.90 <D <= 0.80 0.136
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0.80 <D <= 0.70 0.155
0.70 <D <= 0.60 0.173
0.60 <D <= 0.50 0.191
0.50 <D <= 0.40 0.209
0.40 <D <= 0.30 0.227
0.30 <D <= 0.20 0.245
0.20 <D < 0.10 0.264
0.10<D<= 0.00 0.282
D =0 0.300
0 <D < = 0.50 D + 0.400
D> 0.50 0.900
20. Sample Computations a. Version 1
APPRAISED VALUE = RUV x CF x CFF x No. of Units
RUV=(AC-SV) x RIL+SV
Given:
Year of Acquisition: 1960
Year of Disposal: 1991
Acquisition Cost P 50,000.00
Estimated Service Life: 20 years
No. of Units: one (1)
Physical Condition Poor
Step 1. Compute Remaining Useful Life
R = L - AS
= 20 (1991 - 1960)
= 20 - 31
= -11
Since the value of R is negative, R is assigned a value of ZERO (0)
R= 0
Step 2. Compute for the Salvage Value (SV)
SV = 0.10 x Acquisition Cost
= 0.10 x P50,000.00
= P 5,000.00
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Step 3. Compute for the Remaining Useful Value (RUV):
RUV =(AC - SV)RIL + SV
= (50,000 - 5,000) x 0/20 + 5,000
= (45,000) x 0 + 5,000
= 5,000
Step 4. Compute for the Currency Fluctuation Factor (CFF)
CFF = Peso to Dollar (rate appraisal year)
Peso to Dollar (rate acquisition year)
= P 21.80 / P2.50
= 8.72
Step 5. Convert Physical Condition to equivalent numerical value using CF Table:
CF value for POOR = 0.20
Step 6. Compute for the Appraised Value:
APPRAISED VALUE = RUV x CF x CFF x No. of Units
= 5,000 x 0.20 x 8.72 x 1
= 8,720
b. Version 2
APPRAISED VALUE = RC x CF x UF x No. of Units
Example No. 1 (Usage Factor = Used)
Given: Year of Acquisition: Unknown
Acquisition Cost: Unknown
Replacement Cost: P 50,000.00
Step 1. Convert Physical Condition to equivalent numerical value using CF Table:
CF value for FAIR = 0.30
Step 2. Convert observed usage factor to equivalent numerical value
using UF Table:
CF (used) value for FAIR = 0.30
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Step 3. Computer for the APPRAISED VALUE:
APPRAISED VALUE = RC x CF x UF x No. of Units
= P50,000 x 0.30 x 0.30 x 1
= P4,500
Example No. 2 (Usage Factor = Unused)
Given: Year of Acquisition: Unknown
Acquisition Cost Unknown
Replacement Cost P50,000.00
No. of Units one (1)
Physical condition Very Good
Usage Factor Unused
Step 1. Convert Physical Condition to equivalent numerical
value using CF table
CF value for VERY GOOD = 0.70
Step 2. UF for unused property is constant:
UF = 0.90
Step 3. Compute for the APPRAISED VALUE:
APPRAISED VALUE = PC x CF x UF x No. of Units
= P50,000 x 0.70 x 0.90 x 1
= P31,500.00
c. Version 3 APPRAISED VALUE - RC x AF x CF x No. of Units
Given: Year of Acquisition: 1975
Year of Disposal: 1991
Acquisition Cost: unknown
Replacement Cost: P50,000.00
Estimated Service Life: 20 years
No. of Units: one (1)
Physical Condition: Satisfactory
Step 1. Convert Physical Condition to equivalent numerical value using CF Table:
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CF value for SATISFACTORY = 0.50
Step 2. Compute for the Depreciation (D):
D = L-AS/L
= 20—(1991 —1975)/20
= 20—16/20
= 0.20
Step 3. Convert Depreciation (D) to equivalent Age Factor (AF) value using the
AF Table
AF value for D = 0.20 is row 13 of AF Table:
If D is: Value of AF is:
0<D<0.50 D+0.400
Thus,
AF =D+0.400
= 0.20 + 0.400
= 00.60
Step 4. Compute the APPRAISED VALUE:
APPRAISED VALUE = RC x AF x CF x No. of Units
= P50,000 x 0.60 x 0.50 x 1
= P 15,000.00
d. Setting of Minimum Value
Once all items listed in the I & I, RWM, or IRP have been computed, and the total Appraised Value is determined, an Appraisal Report shall be prepared by each representative and forwarded to the requesting agency through the Disposal Committee Chairman for appropriate consideration.
In case of conflict in appraisal, the Disposal Committee shall set the minimum bid price. If the Committee cannot arrive at a consensus, the Chairman shall adopt an appraised value which is deem most advantageous to the government, based on either of the following:
1) The highest appraised value submitted by a Committee
member; or
2) The average of the submitted appraised values plus 10%;
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The minimum value shall be set depending on how the property shall be sold(i.e, by piece, by lot, or by all lots).
The minimum value set shall be good only for six months. If the property remains unsold after six months, a reappraisal must be conducted.
e. Modes of Disposal
The disposal Committee shall recommend to the head of the agency the proper mode of disposal. Property may be disposed in any of the following modes as appropriate and is deemed most advantageous to the government:
21. Condemnation or Destruction of Property. Valueless, unsalable or hazardous property may be condemned and destroyed be pounding, burning, breaking, shredding, throwing, or any other method by which the property is disposed beyond economic recovery. Destruction shall be made in the presence of the Disposal Committee. 22. Transfer of Property. Upon the initiative of the owning agency or upon submission of request to the owning agency, property that is recommended for disposal may be transferred to another government agency. Transfer shall be done either with or without cost. Cost in this case refers to payment based on the appraised value of the property.
In effecting the transfer of property, the Invoice Receipt for Property
(IRP or General Form No. 30-A) must be prepared by the owning agency and transmitted together with the property to the recipient or requesting agency.
23. Barter. Barter is a modified form of transfer of property wherein an agency transfers property to another government agency in exchange for another piece of property. The value of the property being transferred may or may not be equivalent to being received.
In effecting barter or property, the Invoice Receipt of Property (IRP or General Form No. 30-A) shall be prepared by each party and transmitted, together with the property to the party.
24. Donation of Property. Property that is recommended for disposal may be donated to charitable, scientific, educational, or cultural institutions on exceptional and meritorious cases with the approval of the COA and the DBM. 25. Sale of Property
a. Public Bidding. As general rule, the disposal of government property shall be through sale by public bidding. Public bidding may be done
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through sealed public bidding or when circumstances warrant, by viva voce(word of mouth).
1) Sealed Public Bidding. This form of bidding is characterized by submission of sealed bids by prospective buyers, whereby the time date and place of opening of bids is indicated in the Invitation to Bid; the evaluation of bid tenders by the Disposal Committee; and the awarding to the highest complying bidder. The detailed procedures in public bidding are described in Part III.
2) Viva Voce. Disposable Property of insignificant value or
such nature that requires immediate disposal shall be dealt through public auction by viva voce to be conducted by the Disposal Committee. Other situation/cases for viva voce are those involving the disposal of Waste materials and/or spare parts of insignificant value.
b. Negotiated Sale. Negotiated sale is another mode of sale of property which resorted to as a consequence of failed public bidding. (Details on this area is described in Part III.)
26. Dropping from Books of Accounts. Upon disposal of property, the pertinent portions of the Inventory & Inspection Report, Report of Waste Materials or Invoice-Receipt for Property shall be accomplished, whichever are applicable. These reports shall be the basis for dropping the property from the books of accounts and for taking up the proceeds from sale property. 27. Guideline/Procedures in the Sale of Property
a. Pre bidding Requirements
1) Preparation of the Invitation to Bid (ITB). The ITB is prepared by the owning agency and signed by the agency head or any authorized official.
The ITB must contain the following:
(a) The name of the owning agency;
(b) Sufficient descriptive information on the items or lots for bidding such as:
(1) Location of the property to be disposed
(2) Quantity;
(3) Name of items; and
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(4) Specifications, where necessary. (c) Date, time, and place of pre-bidding conference, if
necessary;
(d) Date, time, and place of submission and opening of bids.
(e) Information on bidding requirements such as
accomplishment of the bid tender, submission of bid bonds, terms of payments and claims among others.
(f) Reservation or option on the part of the
government to accept or reject any or all bids.
2) Publication of the ITB. The ITB must be published in the newspaper of general circulation if the cost of such publication does not exceed fifty percent(50%) of the value of the property. Otherwise, substitute publication may be availed of by copies of the ITB in conspicuous public places in the area where the property is located or where the bidding will be conducted. Copies of the ITB may also be sent by mail or personal delivery to prospective bidders.
3) Schedule of Bidding. Bidding shall be scheduled on a
date not less than seven (7) working days from date of issuance,publication or posting of the ITB.
b. Who May Participation In Public Bidding. Any person, partnership, or corporation that has complied with the prescribed rules and regulations may participate in the sale by public bidding.
c. Accomplishment and Submission of Bids
1) Preparation of the Bid Tender. Any qualified bidder shall accomplish his or her Bid Tender, clearly indicating the following, among others.
(a) The description of the items or lots with the corresponding bid offer should be clearly indicated both in figures and in words.
(b) The name and signature of the bidder. (c) The business or residence address of the bidder. (d) The business license number or Residence
Certificate number of the bidder. (e) Terms and conditions offered regarding bidders
bond, payment default, and delivery.
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2) A bidder shall accomplish the Bid Tender in at least three
(3) copies, preferably typewritten. Bid tenders should be properly signed and submitted to the Chairman of the Disposal Committee on or before the time scheduled for the opening of the bids. The envelope containing the bid tender should be sealed and addressed properly and correctly.
3) If the items are being sold by lots, bidders shall submit
bid tenders for different lots in separate envelopes. 4) If the items are being sold by lots, interested buyers may
offer a bid for each lot or a single bid for all lots, the bid tender for which shall be submitted in only one envelope.
5) Erasures or interlineations should be avoided or, if
present duly countersigned by the bidder. d. Bid Bond
1) Bid bond per item or lot, as the case may be, which shall
accompany the bid tender or is presented at the time of the opening of bids, shall be required from each bidder and should be at least ten percent(10%) of the minimum bid price set by the government.
2) Bid bonds should be in the form of cash, manager’s
check, or cashier check acquired from a reputable bank within the area where bidding is to be held.
e. Defective Bids.
Bids that are not in prescribed from (e.g. unsigned bids) or those that not accompanied or guaranteed by bid bonds at the time of opening of bids are considered defective bids. Defective bids are automatically disqualified. However, exceptional cases may occur where a defective bid may be favorably considered by the Disposal Committee. The defective bid may then be rectified in the presence of the bidders and members of the Disposal Committee.
f. Withdrawal of Bids 1) A bidder may be allowed to withdraw a bid tender before
the time of opening of the bids. His bid shall be returned unopened. 2) After the opening of the bids, no bidder shall be allowed
to withdraw his/her offer unless the following conditions are met:
(a) There is a mistake in the offer.
(b) The mistake refers to the object or principal conditions of the proposal; and
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(c) The reason for such mistake must be conclusive
and convincing.
g. Opening of Bids. All bids shall be opened at the time, date and place set in the invitation to bid, under the direction of the Disposal Committee, and in the presence of the COA Auditor, Bidders or their duly-authorized representatives may witness the proceedings.
The bid tender shall be signed by the members of the Disposal
Committee immediately after it is opened and announced in order to confirm compliance with the requirements of the bidding.
The bid tenders are filed for safekeeping by the Secretariat of
the Disposal Committee.
h. The Abstract of Bids. An Abstract of Bids in triplicate shall be
prepared during the bidding proper showing the name of the owning agency, the date, time and place of bidding, names of bidders with their corresponding amount of bid tender and bid bonds per item or lot including reason for disqualification where applicable. The Abstract of Bids shall be signed by the members of the Disposal Committee.
The purpose of the Abstract of Bids is to show in matrix-
summary form the individual bidders, their bids, and bid bonds per item/lot and the confirmation of the Disposal Committee. Each member of the Committee shall be provided with a copy of the Abstract of Bids.
i. Unsuccessful Bidding. If the sale through public bidding is
unsuccessful, a rebidding shall be scheduled. Rebidding may be declared as unsuccessful in any of the following cases:
1) There is no bidding participant; 2) Only one (1) bidder submitted a bid tender for each lot; 3) All bidders failed to comply with the terms and conditions
prescribed & in the Invitation to Bid; and
4) Complying bidders failed to meet the minimum bid price.
In case of failure of the second bidding, the Disposal Committee may dispose of the property through negotiation.
j. Negotiated Sale. In case the second public bidding fails, the
property may be sold privately thyrough a negotiated sale. Negotiation within one (1) month from the date of the second failed bidding and shall be done with the bidders of the first and/or second failed bidding and other prospective
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bidders (such as those who obtained bid forms but did not submit b tenders) at a price not lower than eighty percent(80%) of the appraised value. If negotiation is done after one (1) month, participants in the negotiation shall be expanded to include other potential buyers aside from those above-mentioned.
If negotiation shall take place after six (6) months from the date of second failed bidding, the property should be reappraised and sold at not lower than ninety(90%) of the reappraised value.
Bid bonds shall be required from all participants in the negotiation.
k. Awarding of Bids
1) Award shall be given to the highest-complying bidder.
2) When two or more complying bidders made identical offers, public auction viva voce between those who made identical bids shall be resorted to at a price not less than the offered bids.
3) Awarding of bids should be done immediately after the opening of bids, if practicable. The bid bonds of losing bidders shall be returned immediately after the announcement of the winning bidder.
4) In case of deferment of award, temporary receipts shall be issued by the agency to acknowledge the submission of bid tenders. Once the Disposal Committee completes its deliberations and determines the winning bidder, bid bonds of losing bidders shall be returned upon presentation of the receipt immediately after awarding of the winning bidder. Deferment of awards shall not exceed five(5) working days from the date of opening of bids.
l. Payment
1) Upon determination of the awardees, the bid bond shall be considered as partial payment and the difference between such payment and the offered bid price shall be paid in the form of cash, cashier’s check or manager’s check of a reputable bank within five(5) working days from the date of the notice of award.
2) The property officer of the owning agency shall
accomplish tally-out sheets as evidence of actual delivery. The tally-out sheets shall be signed by authorized agency official and the buyer acknowledging receipt at that time.
3) Claims shall be made only during official government working hours.
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4) Claims shall be made within the period fixed by the Disposal Committee but not more than 30 days after awarding. Failure on the part of the awardees to claim the property within the stipulated period shall have the effect of cancellation of the award or contract. The awardees shall then be charged storage fees and other incidental fees or cost of damages, (i.e. cost incurred in the conduct of another public bidding of negotiation.) If the property remains unclaimed over a prolonged period of time, ownership of the contracted or awarded property shall automatically revert to the government. The government shall then have the right to dispose the property through whatever manner the Disposal Committee deems most advantageous to the government.
m. Taxes, Customs, Duties, Cost or Charges. The buyer of
disposable property shall pay, in addition to the purchase prices, any taxes, customs duties, cost or charges of any kind or nature whatsoever levied, or to be levied in connection with the sale of property. All expenses incidental to the withdrawal of the property shall be borne by the awardees.
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CHAPTER 9 CCIE MANAGEMENT SYSTEM
1. General. All members of the AFP are entitled to clothing issuance upon recruitment, enlistment and subsequent reenlistment into the AFP. This also includes the reservists pursuant to established directives, circulars and SOPs.
2. Clothing Entitlements
a. Initial Clothing Allowance (ICA) for Male and Female shall be
issued in-kind to Enlisted Personnel during the first six (6) months training instruction.
Table 9.1 ICA for Candidate Soldier (CS) (Male/Female)
(Initial Clothing Allowance) L/I Nomenclature Qty/Ind’l U/I1 Army Athletic Rubber Shoes 1 pair 2 Army Athletic Uniform Alpha 1 set 3 Backpack with cover (7days provision) 1 ea 4 Bag, Extendable, Comouflage 1 ea 5 Ball Cap, Camouflage 1 ea 6 Bar, Mosquito, Polyester, Warp Knit,
OD 1 ea
7 Bed Sheet, White 1 ea 8 Belt, Waist and Buckle for BDA 1 ea 9 Blanket, OD 1 ea
10 Case, Pillow, White 1 ea 11 Handkerchief, White 4 ea 12 Hukbong Katihan Boots (Kubar) 1 ea 13 Lousy Hat, Camouflage, 100% Cotton 1 ea 14 Mat Canvass, Polyester, OD 1 ea 15 Pillow, Vacuum Packed 1 ea 16 Plastic Mess Gear 1 ea 17 Poncho, Tent 1 ea 18 Pouch, Individual First Aid Kit,
Camouflage 1 ea
19 Socks for Boots, Black 4 ea 20 Socks, Athletic, White 3 ea 21 Suit, Camouflage, Ripstop Weave,
100% Cotton 2 ea
22 Towel, Bath, Cotton, OD 1 ea 23 T-Shirt, Raglan, Round Nect, Cotton,
OD 4 ea
24 Water Container (Plastic Bottle 1.2L) 2 ea
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Items to be provided by individual trainee prior to reporting
L/I NOMENCLATURE (QTY) GENDER
1 Brief (Black) 6 male/female
2 Cycling Shorts 2 female
3 Sports Bra 2 female
4 Panty (Black) 6 female
5 Bra (Black) 4 female
6 Face Towel (White) 6 male/female b. Enlistment Clothing Allowance. The following Enlistment Clothing
Allowance (ECA) shall be issued in-kind to Enlisted Personnel upon enlistment in the Regular Force for the purpose of replacing the initial clothing items used during training.
Table 9.2 Proposed ECA for Candidate Soldier (CS) (EM/EW)
L/I NOMENCLATURE QTY U/I1 Army Athletic Rubber Shoes 1 pr 2 Army Athletic Uniform Alpha 1 set 3 Bag, Sleeping, OD 1 ea 4 Belt, Waist and Buckle for BDA 1 ea 5 Flashlight, OD (Tactical Light AA
Batteries) 1 ea
6 Hukbong Katihan Boots (Kubar) 1 pr 7 Jungle Hammock 1 ea 8 Malong, Cotton, Olive Drab (OD) 1 ea 9 Poncho, Tent 1 ea
10 Socks for Boots, Black 5 pr 11 Socks, Athletic, White 2 pr 12 Suit, Camouflage, Ripstop Weave,
100% Cotton 2 set
13 Towel , Cotton, OD 1 ea 14 T-Shirt, Raglan, Round Neck, Cotton,
OD 4 ea
Table 9.3 Proposed ICA For OCC (Male/Female)
L/I NOMENCLATURE QTY U/I1 Army Athletic Rubber Shoes 1 pr 2 Army Athletic Uniform Alpha 1 set 3 Backpack with cover
(7 days provision) 1 ea
4 Bag, Duffle, OD 1 ea 5 Bag, Extendable, Camouflage 1 ea 6 Ball Cap, Camouflage 1 ea 7 Bar, Mosquito, Polyester, Warp Knit,
OD 1 ea
8 Bathrobe 1 ea 9 Bed, Sheet, White 1 ea 10 Belt, Waist and Buckle for BDA 1 ea 11 Belt, Waist, Garterized, OD 1 ea
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12 Blanket, OD 1 ea 13 Buckle, Aluminum, Belt Waist 1 pr 14 Bush Coat 1 pr 15 Cap, Oversea, OD 1 ea 16 Case, Pillow, White 2 ea 17 General Office Attire (GOA) Dress, Office
Uniform 2 pr
18 Gloves 1 ea 19 Handkerchief, White 7 ea 20 Helmet Liner, Kevlar Type 1 ea 21 Hukbong Katihan Boots 2 ea 22 Lousy hat, Camouflage, 100% Cotton 1 pr 23 Major Service Jacket 1 pr 24 Mat, Canvass, Polyester, OD 1 pr 25 Pershing Cap 1 pr 26 Pillow, Vaccum Packed 1 pr 27 Plastic, Mess, Gear 1 pr 28 Poncho, Tent, Camouflage 1 ea
29 Pouch, Individual First Aid Kit (IFAK) 1 ea 30 Raincoat, Camouflage 1 ea 31 Sandals, Rubber 1 pr 32 Service Blouse 1 set 33 Shoes, Dress, Low Cut, Rubber Sole 1 pr 34 Sleeping Uniform 2 pr 35 Socks for Boots, Black 5 pr 36 Socks, Athletic, White 5 pr 37 Socks, Nylon, Black (Stretchable) 5 Pr
38 Suit, Camouflage, Ripstop Weave, 100% Cotton 2 set
39 Towel, Bath, Cotton, OD 2 ea 40 T-Shirt with Collar, White 2 ea 41 T-Shirt, Raglan, Round Neck, Cotton, OD 6 ea 42 Water Container Plastic Bottle (1.2L) 2 ea
c. Reenlistment Clothing Allowance. An enlisted person that is
honorably discharged from the service and subsequently enlisted anew is entitled to Reenlistment Clothing Allowance (RCA) in kind and in cash. The following are the itemized RCA items:
Table 9.4 Proposed RCA In-Kind
L/I NOMENCLATURE QTY U/I1 Hukbong Katihan Boots 1 pr 2 Suit, Camouflage, Ripstop Weave, 100%
Cotton 2 set
d. During the period of military Instruction or training, the following items of individual clothing and equipment shall be issued in-kind to Officer Preparatory Course/office Candidate Course (OPC/OCC).
Formatted Table
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Table 9.5 ICA FOR OCC (Male/Female)
L/I NOMENCLATURE Qty/Ind’l U/I1 Army Athletic Rubber Shoes 1 pr 2 Army Athletic Uniform Alpha 1 set 3 Backpack with cover (7 days provision) 1 ea 4 Bag, Duffle, OD 1 ea 5 Bag, Extendable, Comouflage 1 ea 6 Ball Cap, Camouflage 1 ea 7 Bar, Mosquito net, Polyester, Warp Knit,
OD 1 ea
8 Bathrobe 1 ea 9 Bed, Sheet, White 1 ea
10 Belt, Waist and Buckle for BDA 1 ea 11 Belt, Waist, Garterized, OD 1 ea 12 Blanket, OD 1 ea
13 Buckle, Aluminum, Belt Waist 1 ea
14 Bush Coat 1 set 15 Cap, Oversea, OD 1 ea 16 Case, Pillow, White 2 ea 17 General Office Attire (GOA) Dress, Office
Uniform 2 set
18 Gloves 1 ea 19 Handkerchief, White 7 ea 20 Helmet Liner, Kevlar Type 1 ea 21 Hukbong Katihan Boots 2 pr 22 Lousy hat, Camouflage, 100% Cotton 1 set 23 Major Service Jacket 1 ea 24 Mat, Canvass, Polyester, OD 1 ea 25 Pershing Cap 1 ea 26 Pillow, Vaccum Packed 1 ea 27 Plastic, Mess, Gear 1 ea 28 Poncho, Tent, Camouflage 1 ea 29 Pouch, Individual First Aid Kit (IFAK) 1 ea 30 Raincoat, Camouflage 1 ea 31 Sandals, Rubber 1 pr 32 Service Blouse 1 set 33 Shoes, Dress, Low Cut, Rubber Sole 1 pr 34 Sleeping Uniform 2 set 35 Socks for Boots, Black 5 pr 36 Socks, Athletic, White 5 pr 37 Socks, Nylon, Black (Stretchable) 5 pr 38 Suit, Camouflage, Ripstop Weave, 100%
Cotton 2 set
39 Towel, Bath, Cotton, OD 2 ea 40 T-Shirt with Collar, White 2 ea 41 T-Shirt, Raglan, Round Neck, Cotton, OD 6 ea 42 Water Container Plastic Bottle (1.2L) 2 ea
Formatted Table
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Table 9.6 Proposed ICA FOR OPC (Male/Female) L/I NOMENCLATURE Qty/Ind’l U/I1 Army Athletic Rubber Shoes 1 pr 2 Army Athletic Uniform Alpha 1 set 3 Backpack with cover (7days provision) 1 ea 4 Bag, Duffle, OD 1 ea 5 Bag, Extendable, Comouflage 1 ea 6 Ball Cap, Camouflage 1 ea 7 Bar, Mosquito, Polyester, Warp Knit, OD 1 ea 8 Bathrobe 1 ea 9 Bed, Sheet, White 1 ea
10 Belt, Waist and Buckle for BDA 1 ea 11 Belt, Waist, Garterized, OD 1 ea 12 Blanket, OD 1 ea
13 Buckle, Aluminum, Belt Waist 1 ea
14 Bush Coat 1 set 15 Cap, Oversea, OD 1 ea 16 Case, Pillow, White 2 ea 17 General Office Attire (GOA) Dress, Office
Uniform 2 set
18 Gloves 1 ea 19 Handkerchief, White 7 ea 20 Helmet Liner, Kevlar Type 1 ea 21 Hukbong Katihan Boots 2 pr 22 Lousy hat, Camouflage, 100% Cotton 1 set 23 Major Service Jacket 1 ea 24 Mat, Canvass, Polyester, OD 1 ea 25 Pershing Cap 1 ea 26 Pillow, Vaccum Packed 1 ea 27 Plastic, Mess, Gear 1 ea 28 Poncho, Tent, Camouflage 1 ea 29 Pouch, Individual First Aid Kit (IFAK) 1 ea 30 Raincoat, Camouflage 1 ea 31 Sandals, Rubber 1 pr 32 Service Blouse 1 set 33 Shoes, Dress, Low Cut, Rubber Sole 1 pr 34 Sleeping Uniform 2 set 35 Socks for Boots, Black 5 pr 36 Socks, Athletic, White 5 pr 37 Socks, Nylon, Black (Stretchable) 5 pr 38 Suit, Camouflage, Ripstop Weave, 100%
Cotton 2 set
39 Towel, Bath, Cotton, OD 2 ea 40 T-Shirt with Collar, White 2 ea 41 T-Shirt, Raglan, Round Neck, Cotton, OD 6 ea 42 Water Container Plastic Bottle (1.2L) 2 ea
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Table 9.7 Proposed Pre-Deployment ICIE for OCC & OPC
L/I NOMENCLATURE Qty/Ind’l U/I1 Army Athletic Uniform Alpha 1 set 2 Bag, Sleeping, OD 1 ea 3 Flash Light, OD (tactical light AA
Batteries) 1 ea
4 Hukbong Katihan Boots (Kubar) 1 pr 5 Jungle, Hammock 1 ea 6 Jungle Knife 1 ea 7 Malong 1 ea 8 Suit, Camouflage, Ripstop Weave, 100%
Cotton 1 set
9 T-shirt, Raglan, Round Neck, Cotton, OD 1 ea
e. During the period of training, the following items shall be issued in kind to POTC (MS-43).
Table 9.8 ROTC Summer Camp Training
L/I NOMENCLATURE Qty/Ind’l U/I1 Boots, Combat, for Field Use 1 pr 2 Cap, Ball Camouflage 1 ea 3 Lousy Hat 100% Cotton 1 ea 4 Pant, Short (Satin Cloth) OD 1 ea 5 Suit (100%) Cotton w/o Cap, BDA 1 pr 6 T-shirt, Raglan OD 2 ea
Table 9.9 Basic Citizen Military Training
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 Pr
2 Belt Waist, Garterized (OD) 1 ea 3 Belt, Pistol 1 ea 4 Boots, Combat, for Field Use 1 pr 5 Buckle Brass w/ Army Logo 1 ea 6 Cap, Ball Camouflage 1 ea 7 Handkerchief, White 1 ea 8 Lousy Hat 100% Cotton 1 ea 9 Pant, Short (Satin Cloth) OD 1 ea
10 Poncho Camouflage 1 ea 11 Sock, Boots Black 1 ea 12 Towel, Bath (OD) 1 ea 13 T-shirt raglan OD 2 ea
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Table 9.10 Probationary Officers Training Course L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 2 pr
2 Bar Mosquito net Nylon Warp Knit, OD 1 ea 3 Belt Waist, Garterized (OD) 1 ea 4 Belt, Pistol 1 ea 5 Blanket OD (Garrison Use) 1 ea 6 Boots, Combat, for Field Use 1 pr 7 Buckle Brass w/ Army Logo 1 ea 8 Cap, Ball Camouflage 2 ea 9 Field Pack with Brace, Cmflge 1 ea
10 GOA Green Suit 1 set 11 Handkerchief, White 2 ea 12 Lousy Hat 100% Cotton 1 ea 13 Pant, Short (Satin Cloth) OD 1 ea 14 Poncho Camouflage 1 ea 15 Rubber Shoes, Low Cut White 1 pr 16 Rubber Shoes, Socks, White 1 pr 17 Shoes, Low Cut (Clarino) 1 pr 18 Sock, Boots Black 1 pr 19 Sock, Nylon Black 1 pr 20 Towel, Bath (OD) 1 ea 21 T-shirt Raglan OD 2 ea
Table 9.11 Adt Rotc Instructors / Bilateral Exercises
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
2 Boots, Combat, for Field Use 1 pr 3 Cap, Ball Camouflage 1 ea 4 T-shirt, Raglan OD 1 ea
Table 9.12 Command And General Staff Course / Mnsa
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
2 Belt Waist Garterized (OD) 1 ea 3 Boots, Combat, for Field Use 1 pr 4 Buckle Brass with Army Logo 1 ea 5 Bush Coat 1 pr 6 Cap, Ball Camouflage 1 ea 7 GOA Uniform 1 pr 8 Pants, Short (Satin Cloth) OD 1 ea 9 Pershing Cap 1 ea
10 Shoes, Low Cut (Clarino) 1 pr 11 Socks, Boots Black 3 pr 12 T-shirt, Raglan OD 1 ea
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Table 9.13 Officer Basic Course / Officer Advance Course/ Nco Basic Course / NCO Advance Course
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
2 Belt Waist Garterized (OD) 1 ea 3 Boots, Combat, for Field Use 1 ea 4 Buckle Brass with Army Logo 1 ea 5 Cap, Ball Camouflage 1 ea 6 GOA Uniform 1 set 7 Pants, Short (Satin Cloth) OD 1 ea 8 Shoes, Low Cut (Clarino) 1 pr 9 Socks, Boots Black 2 pr
10 T-shirt, Raglan OD 2 ea
Table 9.14 Specialization Course For Officer and Enlisted
Reservist(Civil Affairs Course, Public Affairs Course & Information Support Affairs)
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 set
2 Boots, Combat, for Field Use 1 pr 3 Cap, Ball Camouflage 1 ea 4 GOA Uniform 1 set 5 Pants, Short (Satin Cloth) OD 1 ea 6 Shoes, Low Cut (Clarino) 1 pr 7 Socks, Boots Black 1 pr 8 T-shirt, Raglan OD 1 ea
Table 9.15 Organizational Training
L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
2 Boots, Combat, for Field Use 1 pr 3 Cap, Ball Camouflage 1 ea 4 Lousy Hat 100% Cotton 1 ea 5 Pants, Short (Satin Cloth) OD 1 ea 6 T-shirt, Raglan OD 1 ea
Table 9.16 PA Paraders
L/I NOMENCLATURE Qty/Ind’l U/I1 Belt Waist Garterized (OD) 1 ea 2 Boots, Combat, for Field Use 1 pr 3 Buckle Brass w/Army Logo 1 ea 4 Cap, Ball Camouflage 1 ea 5 Socks, Boots Black 1 pr 6 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
7 T-shirt, Raglan OD 3 ea
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Table 9.17 AFP Awardee
L/I NOMENCLATURE Qty/Ind’l U/I1 GOA Green Suit 1 ea 2 Buckle Brass w/Army Logo 1 ea
3 Handkerchief, White 2 ea 4 Shoes, Low Cut 1 pr 5 T-shirt, Raglan OD 2 ea 6 GOA Green Suit 1 pr
Table 9.18 Unit Active Duty Training L/I NOMENCLATURE Qty/Ind’l U/I1 Suit, Camouflage, Ripstop Weave, 100%
Cotton (BDA) 1 pr
2 Boots, Combat, for Field Use 1 pr 3 Cap, Ball Camouflage 1 ea 4 Lousy Hat 100% Cotton 1 ea 5 Army Athletic Uniform Short 1 ea 6 Socks, Boots Black 1 pr 7 T-shirt, Raglan OD 1 ea
Table 9.19 Icie (Mobstock)
L/I NOMENCLATURE Qty/Ind’l U/I1 Bar, Mosquito net, Nylon, Warp Knit, OD 2 ea 2 BDA Suit (100%) Cotton w/o Cap 1 pr 3 Blanket, OD (Garrison Use) 2 ea 4 Boot, Combat HW/FU 1 pr 5 Buckle Brass w/ Army Logo 1 ea 6 Cap, Ball Camouflage 2 ea 7 Field Pack w/ Barce, Camouflage 1 ea 8 Handkerchief, White 12 ea 9 Army Athletic Uniform Short 2 set 10 Poncho, Camouflage 1 ea 11 Towel, Bath OD 2 ea 12 T-Shirt, Raglan OD 8 ea
3. Policies
a. The RCA given “In-Cash” may be subjected to adjustment due
to changes in the prevailing prices of “In-Kind” items. b. Procurement of the above-cited items shall be centralized at
ASCOM, PA in coordination with OG4, PA. Said items must be pre-positioned at different FSSUs.
c. Payment of RCA “In-Cash” and “In-Kind” shall be centralized at
FCPA. Continuous-form checks shall be used for RCA “In-Cash,” and RCA coupons for RCA “In-Kind. Payments shall be transmitted to the servicing FSUs of the reenlistees.
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d. Reenlistees or their authorized representatives shall withdraw their continuous-form checks for their RCA “In-Cash” and RCA coupons for their RCA “In-Kind from servicing FSUs.
e. RCA “In-Kind” shall be withdrawn by each reenlistees at the
nearest FSSU outlet upon presenting the RCA coupons that are supported by their reenlistment order.
f. Dependents of deceased enlisted personnel may claim for the
cash equivalent of the “In-Kind” portion, provided subject EP’s reenlistment order took effect during the time of his or her death and have not yet claimed his or her RCA “In-Kind” portion.
g. Enlisted personnel whose term of reenlistment is less than three
(3) years and due for compulsory retirement shall be entitled to receive the corresponding one-term cash equivalent of the current cost of reenlistment clothing allowance (RCA).
4. Tasks and Responsibilities
a. G1, PA:
1) Programs and facilitates the release of RCA funds; 2) Monitors the status of reenlistees; and 3) Determine the number/list of reenlistees.
b. G4, PA
1) Determines the tariff sizes of reenlistees which will be used for programming, requirement and pre-positioning of RCA “In-Kind” to different FSSUs;
2) Directs and monitors the procurement and distribution of
RCA “In-Kind”; and 3) Submits quarterly reports of RCA “In-Kind” to OG1, PA.
c. ASCOM:
1) Facilitates the procurement of RCA “In-Kind”.
2) Submist to OG4, PA status of RCA “In-Kind” deliveries
and stocks transferred to different FSSUs; and
3) Issues RCA “In-Kind” items to reenlistees who are assigned in HPA post units or offices.
d. AQM.
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1) Validates reenlistment orders that were submitted by PA
Wide units and generates PA-wide payrolls. Fund then shall be requested to OG1, PA based on the payroll generated; and
2) Prepare disbursement voucher for RCA “In-Cash” and
“In-Kind.”
e. FCPA:
1) Validates and process the RCA payrolls. Prepares two (2) Disbursement Voucher for the “In-Cash” and “In-Kind” and prints RCA “In-Cash” checks and RCA “In-Kind” Coupons by unit and by paying jurisdiction; and
2) Servicing FSUs shall distributes/issue RCA In-Cash”
checks and RCA “In-Kind” Coupons to individual reenlistees or to their authorized representative. Payments made shall be indexed to their pay data cards. FSUs shall submit report on payments made to FCPA.
f. FSSUs Issues RCA “In-Kind” items to reenlistees who are assigned in post units or offices covering their jurisdiction.
g. Individual Reenlistees:
1) Personally withdraws the RCA “In-Cash” checks at
designated FSUs and RCA “In-Kind” items at the nearest FSSUs. In case of non-availability, he or she issues authority to withdraw to be approved by his or her Commanding Officer or Admin Officer.
2) In case of non receipt of their RCA “In-Kind” or “In-Cash”
reenlistees shall immediately inform their unit commanders for appropriate action.
h. MSUs
Makes representation to the Commanding General, PA (Attn:
G1, PA) all matters, issues, and concerns relative to RCAs that needs attention and could not be acted upon within its level. 5. Recission: Other policies and SOP that are inconsistent with the provisions of this directive are hereby rescinded.
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CHAPTER 10 PA POL MANAGEMENT SYSTEM
1. General. There are existing policies in the AFP which prescribe the procedures and internal control system for the effective management of AFP Petroleum Oil and Lubricants (POL) products and funds. These policies and guidelines are embodied in a number of directives. 2. POL Programming. POL, like any other supply items follows the same cycle of budgeting, procurement and distribution. The Office of the Army Chief Quartermaster prepares the POL program considering various factors like vehicle density, distances of delivery points or locations, nature of the missions and activities, etc. The POL program forms a part of the Philippine Army budget. 3. Procurement/Acquisition. The approved POL program is the basis of POL procurement by the Philippine Army. The procedures are as follows:
a. The Office of the Army Chief Quartermaster requests the release of funds to C, MFO, PA through G4, PA;
b. Upon receipt of copy of fund release, OACQM prepares the POL
filler for preparation of Purchase Order; and c. The approved PO will be served to POL supplier for
acknowledgement.
4. POL Issuance and Distribution. The POL commodity manager prepares the delivery advice of PA-wide POL allocation, forwards this to G4, PA for notation and subsequently submits the accomplished documents to the accredited oil company. The oil company processes the delivery advice and prepares corresponding sales invoice for transmittal to the different bulk
Fund
release (C, MFO, PA)
Prep of POL filler
(AQM)
Prep of PO (ASCOM)
Approval of PO
(CSAFP/CG, PA)
Prep of DV (ASCOM)
Payment of PO to Oil Company
Figure 10.1 POL procurement flow chart.
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plants, then to the respective service stations either inside camp or through commercial POL service stations. 5. Procedures in the Distribution and Issuance
a. ACQM prepares the Delivery Advice (DA) of PA-wide units. b. G4, PA notes the DA c. Upon notation, all the DAs are forwarded to the oil company
head office. d. After the Delivery Advices are processed by the company, the
triplicate copy of the DA will be returned to OACQM. This is the basis to send radio messages informing the units concerned on the processed DA for withdrawal from their respective bulk plants.
e. The company sends the Sales Invoice, based on the approved
Delivery Advices, to its bulk plants for the delivery of POL products to using units through Electronic Mail(e-mail). These bulk plants, scattered throughout Luzon, Visayas, and Mindanao, service the PA units stationed in areas within the bulk plants. Depending on the location of the PA units where the POL will be delivered, the head office of the oil company determines the bulk plant which will serve the delivery advice to PA Units that are equally scattered throughout the country.
f. Receipt and Inspection. The using units make the necessary
inspection before acceptance. This receipt is done by the Supply Accountable Officer/ Responsible Supply Officer, who acknowledges receipt of the product by printing his or her name and by signing legibly on the sales invoice. As an internal control procedure, the presence of comptroller representative and a representative from COA shall witness and inspect deliveries. For POL deliveries to units where there is no resident auditor, existing policy allows the Regional or Provincial Auditor to witness deliveries. Figure 10.2 Distribution Flow Chart.
Approved PA POL program
(CG, PA)
Withdrawal of POL by end user from Army POL
Dumps PSS
Prep of DA
(AQM)
Sends RDO msg to PA
units (AQM)
Oil Company Processes
DA
Notation of DA
(G4, PA)
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6. Storage. POL allocations of units concerned are being stored at respective unit POL dumps within their headquarters, specifically in the infantry divisions and infantry brigades. However, in the case of other infantry brigades, infantry battalions, companies, teams and the likes that do not have their own POL dump, their POL allocations are stored / deposited at the nearest gasoline station within their respective areas of operation through lateral coordination between the owner of the gasoline station and respective unit commanders and/or authorized representative. Issuance and/ or withdrawals are through gas slips or coupons and this is the responsibility of the unit commanders concerned. All infantry divisions and MID have their own strategic POL reserve stock (SPRS) in their respective POL dump located within the Division or Brigade Headquarters. The disposal/issuance of strategic POL shall be in support to the following activities: In case of delay in the delivery of their quarterly POL allocation: operational necessities in connection with the conduct of National Elections and outside the unit-designated AOR, un-programmed activities such as visits of VIPs, natural calamities and other Command-related activities. However, such disposal or issuance shall be replenished automatically once the regular allocations of units have been delivered and/or POL used to un-programmed activities has been allocated by higher headquarters. And the Office of the Assistant Chief of Staff for Logistics, G4 shall issue the Authority for issuance of the SPRS. 7. Fuel Products
a. LPG (Liquefied Petroleum Gas)
1) Description: A clean-burning petroleum gas consisting of a mixture of propane and butane gas. LPGis used as fuel for cooking, lighting, and industrial applications.
2) Application: Fuel for ovens, furnaces, gas engines, gas
stoves, gas lamps, singeing in textile plants, pilot flame in boilers, cutting, soldering, and brazing operations in metal fabrication.
b. Aviation Gasoline (AVGAS)
1) Description: Aviation gasoline is a low-lead, 103-octane aviation gasoline used by the Philippine Air Force for their aircraft with reciprocating engines.
2) Application. Aviation reciprocating engines
c. V-96
1) Description: V-96 is an ultra-high performance unleaded gasoline with an extremely high octane rating. With its high octane rating, it will prevent knocking and would maximize engine performance at all times. Aside from this, it also contains a special blend of octane booster and
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multifunctional additives that bring about superior combustion and performance. V-96 is a pure, highly-refined fuel that does not only promise excellent performance during engine start-up, but also provides sustained engine power every time. It is an advanced unleaded gasoline that provides the following performance benefits:
a) High octane rating;
b) Clean carburetors, port fuel injectors and inlet valves;
c) Reduces combustion chamber deposits (CCDs);
d) Reduces octane requirement increase (ORI);
e) Improves fuel economy;
f) Reduces emissions; and
g) Extends catalyst life.
2) Application: Modern gasoline engines with hardened valve seats (generally of 1983 and later models), with compression ratio of 7.0 and above.
a) Luxury cars, imported cars, and big bikes; and
b) Car fitted with catalytic converters.
d. V-95 (Leaded)
1) Description: A premium leaded gasoline that provides the
following performance benefits:
a) Enhanced cleaning action that maintains the same combusting power as leaded gasoline;
b) Promotes better burning and reduced
emissions;
c) Better driving performance; and
d) Improved fuel economy.
2) Application: All gasoline engines with a compression ratio of 7.0 and above, regardless of model.
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e. V-95 (Unleaded)
1) Description: A lead-free, environment-friendly, 95-octane premium motor gasoline that is recommended for high compression engines. It has the same quality as the low-lead fuel and possesses the same detergent-action characteristics for prolonged engine life.
2) Application: Modern gasoline engines with hardened
valve seats (generally of 1983 and later models) and with a compression ratio of 7.0 and above.
f. V-93 (Unleaded)
1) Description: A motor fuel with detergent-action additive,
anti-knock properties, and controlled volatility for maximum economy, easy starting, and good acceleration that is suitable for low-compression gasoline engines.
2) Application: Gasoline engines with a compression ratio
below 7.0, such as those found in motorcycles and pump boats.
g. Jet A-1
1) Description: Jet A-1 is a kerosene-type aviation fuel that is used by commercial aircraft with turbo prop and turbojet engines. It has good combustion characteristics that is suited for low-temperature operation at high altitude.
2) Application: Turboprop and turbojet aircraft engines.
h. Gaas
1) Description: Gaas is a refined, water-white kerosene. 2) Application. Fuel for stoves, lamps, kerosene-fueled
engines, and boilers. Also used as solvent.
i. Intermediate Fuels.
1) Description: Intermediate Fuels are blended from diesel and bunker fuels which are classified into different grades as specified by the universally adopted SI (Systeme International d’ Unites) metric system of measurement.
2) Application: Intermediate fuels are intended for use in
international marine vessels that identify their fuel requirements by specific International Fuel Grades.
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j. Special Fuel Oils
1) Description: Special Fuel Oils are blended fuels of diesel and bunker fuel oils that are intended for use in domestic marine vessels. These fuel products are classified into Special Fuel Oil (SFO) Grades based on viscosity ranges. SFO can also be used as Intermediate Fuel Oil (IFO) as long as it meets the requirements of the particular IFO Grade specified by the customer.
2) Application. Domestic marine vessels.
k. ADF (Diesel)
1) Description: A technologically-advanced fuel that is enhanced with a multifunctional additive plus a unique environmentally-acceptable combustion improver or exhaust smoke-reducing agent. It also has the ability to maintain and improve fuel injection system cleanliness through unsurpassed detergenct characteristics. It also provides a superior performance in diesel technology as indicated by the following features:
a) Instantaneous and sustain reduction in smoke and particulates;
b) Improved fuel economy;
c) Reduced emissions;
d) Reduced nozzle fouling;
e) Provides corrosion protection;
f) Provides improved oxidation stability; and
g) Effective anti-foam performance.
2) Application: Fuel for medium to high-speed automotive diesel engines.
i. Fuel Oil
1) Description: Fuel Oil is a low-cost residual fuel that is used in industrial and marine applications. It is also commonly known as bunker fuel.
2) Application. Boilers, furnaces, kilns, ovens, and
bunker-fired diesel engines.
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8. Location of Bulk Plants
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9. Location of SPRS POL Dumps
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10. Philippine Army e-POL Card System
a. Reference: GHQ, AFP Logistics Letter Directive Nr SD-14-01-E-POL dated 03 March 2014, Subject: AFP e-POL Card System.
b. Purpose: This SOP prescribes the policies, procedures and responsibilities in the management, control, distribution, and utilization of regular POL allocation of units and offices of the Philippine Army through the use of e-POL Card.
c. Objectives: The PA e-POL Card System is an automated fuel dispensing system that allows POL issuance through the use of a card to authorized card holders in any participating suppliers POL service stations nationwide. It aims to attain the following objectives:
1) Enhance management and control of fuel usage or utilization;
2) Provide protection against tampering and unauthorized use;
3) Provide easy generation and reconciliation of records or reports.
4) Promote supply economy.
d. Scope: This SOP applies to all PA-wide units and offices issued with e-POL Cards.
e. Definition of terms:
1. POL – An acronym for Petroleum, Oil and Lubricants such as
gasoline, diesel and other forms of oil and lubricants for use of the Philippine Army.
2. e-POL Card – An electronic POL Card which serves as a
medium in withdrawing POL products at the suppliers’ service stations nationwide.
3. Credit Limit – A designated card load limit on a monthly basis,
based on the approved PA - Annual POL program.
4. Frequency Limit – The number of usage of card per day with a specified amount. For example, a frequency of 3/2000 refers to a limit of three(3) transactions per day with a maximum of Php 2,000.00 per transaction.
5. Commodity Manager (CM) – Refers to the Chief of Technical
Services (for peculiar items of supply) who is responsible for programming, managing, and distributing certain type(s) of commodity(ies) or different classes of supplies (i.e. for POL, the CM is the AQM).
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6. Contingency Card – Additional card which can be issued to the PA Major Units to support un-programmed authorized activity, to be activated only by the CM, and subject to the approval of G4, PA.
7. Authorized Card Holders – PA personnel who are specifically authorized by virtue of their position and who are in effect representing their unit or office.
f. Policies:
1) The e-POL card shall be used to withdraw POL products at the suppliers’ service stations nationwide for authorized or official missions only.
2) Issuance of POL through e-POL card system shall be made on a monthly basis and is chargeable against the unit’s or office annual POL allocations.
3) The concerned unit or office shall submit application request for e-POL Cards to OG4, PA, indicating the standard cards embossed name (see para 6e below), each frequency and credit limit based on their allocated POL program/budget.
4) The AC of S for Logistics, G4, PA shall approve the authorized card holders and credit limit for e-POL Cards as well as the provision of “Contingency Card” per PA Major Units for utilization during emergency or un-programmed event.
5) For purposes of standardization, the embossed name on all cards’ shall have a maximum of four columns namely: Branch of Service initials, Unit, End-User, and designated number or letter of card (Ex: PA-OAQM-Admin-1; PA-1ID-102Bde-1; PA-AAR-4FAB-A1; PA-4ID-23IB-A).
6) The e-POL card shall form part of Unit/Office property. All cards must be turned-over to the Unit or Office in case of relief of position of personnel or transfer thereof to other Unit/Office.
7) The e-POL Cards shall be renewed or replaced every three(3) years at the supplier’s expense. In case of lost or damaged cards due to wear and tear before the renewal period, the PA Units or Offices shall pay for the cost of replacement of cards.
8) Lost or stolen e-POL card shall be immediately reported to OAQM in order to immediately block the unauthorized use and subsequent request for replacement. Unauthorized use of the stolen or lost e-POL card due to failure to report such loss immediately is the responsibility of the unit commander or head of office.
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9) An additional 3.5% handling fee will be added on monthly billing statements per PA unit or office, which will be deducted from their allocation based on the approved POL program.
10) Gas advance is not allowed using the e-POL card. Once the credit limit of the card has been reached or the allocation was consumed before the end of the month, units or offices shall have to wait for the following month. The supplier will automatically refresh or reload the units’ or offices’ approved monthly allocation every first day of the month.
11) All transactions using the e-POL card shall be reported by
the RSO of the unit or office for audit and liquidation purposes. A monthly consumption report (Annex A) shall likewise be submitted to OAQM every 15th day of the following month together with a copy of Requisition Issue Slips (RIS). The report should include the following information: Card number, Embossed name, Credit Limit, Utilization and Balance in Php.
12) Report of Supplies and Materials Issued(RSMI) shall be
prepared by concerned FPAO in order to liquidate POL issuances of e-POL card based on the RIS submitted by the unit/office RSO and debit report from the supplier.
13) Discrepancies that are noted in the balance of every
transaction shall be reported in writing to OAQM for appropriate action. 14) Payment of e-POL Cards shall be based on the
Statement of Account or Billing Statement of the end-user on a monthly basis. 15) Any privileges in the form of value card points or other
perks that will be given by the supplier for using e-POL cards will be consolidated and renewed by the OAQM. Utilization of the said privileges will be subject for approval of G4, PA
g. Responsibilities:
1) AC of S Logistics, G4, PA;
a) Reviews and approves the request of units or offices for issuance of e- POL card;
b) Approves credit limit and frequency of e-POL card
usage in reference to the requesting units or offices POL program/budget; c) Monitors, reviews and implements policies to
improve the PA e-POL card system; d) Issues directives to Commodity Manager for the
processing of the approved e-POL card application.; and
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e) Approves the utilization of any privileges from using e-POL cards that will be given by the supplier.
2) C, AQM:
a) Prepares PA-wide Annual POL program and submits it to OG4, PA for approval;
b) Facilitates the processing of e-POL card application or replacement of PA units/offices in coordination with the suppliers card division;
c) Maintain and reconciles records of payment with
the supplier based on the actual consumption/utilization report from the PA unit or offices and takes appropriate actions on any discrepancy that may arise; or
d) Prepare the required vouchers with the Statement
of Accounts or Billing Statement for payment and notifies the supplier for the availability of payment; and
e) Consolidate and renews the privileges that the PA
would get from the supplier and recommend to OG4, PA the utilization of said privileges.
3) PA Units/Offices:
a) Determines the required number of e-POL card of their units or offices, indicating the standard cards embossed name (Annex A), frequency, and credit limit based on their allocated POL program or budget.
b) Maintains a record of all transactions using the e-
POL card for audit and liquidation purposes;
c) Submits an actual card consumption/utilization report to OAQM (Annex B), together with a copy of Requisition and Isssue Slip(RIS) every first working day of the month as reference for processing of payment. (In the absence of required card consumption report, OAQM shall continue the processing of payment); and
d) Immediately reports lost card to OAQM to prevent unauthorized utilization of the card.
4) Accounting Service, PA
a) Obligates funds that are intended for POL on the Contract agreement between the supplier and the AFP;
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b) Certifies fund availability; and c) Documents and liquidates POL payment
transactions.
5) Management Fiscal Office:
a) Pre-audits POL payment; and
b) Requests for NCA for availability of funds.
6) PA Procurement Center.
Funds the payment request and approves the voucher.
7) Finance Center, PA:
a) Processes and issues payment; and b) Notifies OAQM for the availability of payment.
8) FPAO:
a) Consolidate RIS; and b) Prepares RSMI for submission to Accounting
Service, PA. h. Rescission: (HPA SOP Number 01, dated 04 June 2008, re
Philippine Army POL Fleet Card System). All policies and regulations which are inconsistent with this SOP are hereby rescinded.
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ACTIVITIES RESPONSIBILITY REMARKS
Procedures STATEMENT OF ACCOUNT SCHEME
START
A
Submit request for PPC to OG4, PA
Forward the approved PPC request/directive to OAQM
Forward the approved PPC application to Supplier Card Division
Must be based on approved POL Program of the unit/office
Must specify the amount to be loaded periodically
PA‐WideUnits/ Offices
OG4, PA
OAQM
“Army Core Purpose: Serving the people, securing the land”
“Army Vision: By 2028, a world-class Army that is a source of national pride”
ACTIVITIES RESPONSIBILITY REMARKS
Procedures STATEMENT OF ACCOUNT SCHEME
Process the units PPC’s andforward the PPC’s to OAQM forissuance to PA End‐Users.
Withdraw POL products onauthorized Supplier ServiceStations
• Must be done for seven (7) days upon receipt of application• Cards must be activated 24 hrs upon receipt of the End-User.
• Must justify lost thru affidavit
Supplier Card
Division
PA‐Wide Units/ Offices
PA‐Wide Units/ Offices
• Must be based on authorized unit & frequency• Must be used on allowed POL product to be withdrawn• Must not exceed the limit
Lost PPC’s
A Y
N
“Army Core Purpose: Serving the people, securing the land”
“Army Vision: By 2028, a world-class Army that is a source of national pride”
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Procedures STATEMENT OF ACCOUNT SCHEME
ACTIVITIES RESPONSIBILITY REMARKS
Demand payment of PA Units/Office thru OAQM
‐ Reconcile/confirm the Billing Statement sent by Supplier to PA‐Wide units/offices. ‐ PA‐wide units and offices must submit RIS and actual consumption report.
Prepare a Certification and request for payment
• Must give billing statement of PA‐Wide Units/Offices to OAQM.• Must furnish the PA‐Wide units/offices with billing statement.
• Must validate the Billing Statement
Supplier Card Division
OAQM & PA Units & Offices
OAQM
“Army Vision: By 2028, a world-class Army that is a source of national pride”
“Army Core Purpose: Serving the people, securing the land”
Procedures STATEMENT OF ACCOUNT SCHEME
ACTIVITIES RESPONSIBILITY REMARKS
Approval of voucher andfunding
Issuance of Cheque
Reconciliation of POLprogram of PA‐WideUnits/Offices to PPC’s/e‐POL
Card billing statement
CO, PAPC
Notify OAQM on availability ofpaymentDir, PAFC
Supplier Card Division
PA‐Wide Units/Offices and
OAQM
Withdrawal of Cheque Must furnish OAQM photocopyof cheque.
Process & Approval ofvoucher payment
C’s, RMO/MFO/ASPA
“Army Core Purpose: Serving the people, securing the land”
“Army Vision: By 2028, a world-class Army that is a source of national pride”
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ProceduresSTATEMENT OF ACCOUNTS SCHEME
ACTIVITIES RESPONSIBILITY (OPR) REMARKS
Request to G4, PA on theutilization ofavailable/remaining POLbalances to use
Advice/Inform PA‐WideUnits/offices on the status ofPOL program allocated toPPC’s/e‐POL Card
OAQM
PA‐Wide Units/ Offices
PA‐Wide Units/ Offices
POL Program consumed
cY
N
“Army Vision: By 2028, a world-class Army that is a source of national pride”
“Army Core Purpose: Serving the people, securing the land”
ProceduresSTATEMENT OF ACCOUNTS SCHEME
ACTIVITIES RESPONSIBILITY (OPR) REMARKS
END
Approve the request andsubsequently direct OAQM toimplement the directive
G4, PA
c
“Army Vision: By 2028, a world-class Army that is a source of national pride”
“Army Core Purpose: Serving the people, securing the land”
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CHAPTER 11 GRAVES REGISTRATION SERVICES
1. General. The Graves Registration (GRREG) is performed by elements of Graves Services Unit, ASCOM, PA. It includes all phases of remains processing, from search and recovery to final disposition. Graves Registration is immediately essential to the support of combat operations. The way in which it is performed can have a direct and sudden impact on the morale of soldiers and dependents. GSU, ASCOM is tasked to provide better and more dignified mortuarial and memorial services to deceased AFP and other authorized non-military personnel. These services are provided as a fitting recognition to their faithful and dedicated services rendered to the country. 2. Memorial Services
a. Background. In May 1947, fresh from the victories of the Second World War, the Republic of the Philippines established the Republic Memorial Cemetery. the Cemetery was made the burial ground of the gallant soldiers who lost their lives in battle to make the Philippines free, and was made a fitting memorial of those who brought honor to the country and died to keep the flames of freedom and democracy burning.
In 1954, the original 64-hectare memorial ground was renamed
Libingan Ng Mga Bayani by President Ramon Magsaysay. It was the counterpart of the Revolutionaries’ burial grounds at the Manila North Cemetery. By Presidential Proclamation 208 of 28 May 1967, President Ferdinand Marcos excluded the lands of the Libingan Ng Mga Bayani from the operation of the Fort Bonifacio Military Reservation and reserved the same for national shrine purposes under the National Shrines Commission. At the same time, the land area was increased from 64 to 142 hectares. The construction of Circumferential Road 5 and the eventual passage of the skyway have reduced the area since then.
b. Policy Governing Management and Disposition of Libingan Ng
Mga Bayani. Per AFP RG 161-375, GHQ, AFP dated 11 Sep 2000, the following deceased personnel are qualified and therefore authorized to be interred in the LNMB with designated sections, as follows:
Section A -Former Presidents of the Republic of the Philippines.
Section B -Government Dignitaries and Statesmen. Section C -Former Chiefs of Staff, AFP. Section D -Generals/Flag Officers of the AFP Section 1A -Medal of Valor Awardees Section 1 to XI -Filipino veterans of WW II and defenders of
Bataan and Corregidor. Section XII, XIV, XV, and XVII
-Active, retired AFP personnel and veterans.
Section XVIII -Current burial site for active, retired AFP personnel and veterans.
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3. Schematic Diagram of “Libingan ng mga Bayani”. The cremated remains of widows of the former presidents of the Philippines, the Secretaries of National Defense and Chiefs of Staff, AFP are also authorized to be interred in the same plot where their husbands are buried. Additionally, the remains of those personnel who were dishonorably separated, reverted or discharged from the service are not authorized to be interred in the LNMB. This is to include persons who are convicted by final judgment of an offense involving moral turpitude.
a. The units and offices responsible for the allocation and
preparation of cemetery plots are as follows:
1) The Quartermaster General, AFP shall be responsible for the allocation of specific section or area for the deceased persons at LNMB.
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2) The Commanding Officer of the Graves Services Unit, ASCOM, PA shall be in charge with the preparation of gravesites, supervision of burials, and the Registration of Graves.
b. The procedures prior to interment of deceased personnel at LNMB are:
1) Deceased active military personnel. The survivor officer or NCO shall coordinate with CO, ASCOM, PA thru CO, GSU for the registration of the deceased and the preparation of the grave at least three(3) days prior to interment.
2) Deceased retired military personnel. The next of kin shall
notify the Adjutant General, AFP, who then shall process the documents to determine if the deceased is qualified.
3) Government Dignitaries, statesmen, national artists, and
other deceased persons whose interment or re-interment in the LNMB have been authorized by the Commander-In-Chief, Congress and the Secretary of National Defense – The next of kin shall coordinate with The Adjutant General, AFP and CO, GSU for the burial services as provided under AFPRG 161-375.
4) Deceased widows of former Presidents, Secretaries of
National Defense, and Chiefs of Staff - The next of kin shall notify Grave Services Unit (GSU) for the arrangement and conduct burial services as embodied in the AFP RG 161 - 375.
5) The coordinator shall submit the following requirements to
CO, ASCOM (Attn: CO, GSU) prior to interment:
(a) Death certificate for retired or active military personnel.
(b) LOD certificate for active military personnel. (c) Retirement orders if retired military personnel. (d) Statement of military service in lieu of GO/SO issued
by the non-current records branch, OTAG, PA. (e) Authority from Commander-In-Chief, Congress or
SND, if the deceased are government dignitaries, statesmen, national artists and other deceased persons.
(f) Transfer of cadaver/burial permits.
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CHAPTER 12 OTHER QM LOGISTICS SERVICES
Combat Service Support Operation 1. General. Combat Service Support is the assistance provided to operating troops primarily in the field of personnel, administrative service, civil affairs, and logistics. CSS planning focuses mostly on sustaining the maneuvering elements as it executes the Commander’s intent. On CSS operations, the maneuver units and their combat support units are the major focus. All units require food, clothing, and individual equipment. Most require fuel, ammunition and most require maintenance outside their capabilities. All require medical and personal service support. 2. Objectives. The CSS objective is to meet the combat force needs as the mission requires. The basic mission is to facilitate the Commander’s ability to generate combat power and to sustain the battle. 3. Tasks. The CSS tasks, like its mission, are simply expressed and challenging to achieve. Each in itself is a difficult task, the integration of all these into a comprehensive, integrated battle support is the major challenge of the CSS leader. They are there to man, arm, fix, fuel and move the supported units:
a. Manning. The support provided to a soldier to include his or her rations, clothing, and individual equipment.
b. Arming. The provision of munitions to weapon system and other
equipment. c. Fixing. Preserving the availability of weapon system and other
equipment. d. Fueling. The provision of required fuels to weapon system and
other equipment. e. Moving. The actual transportation of personnel and material
from one place to another 4. Principles. A principle is a basic truth. A basic truth applies to every pertinent situation. When these principles are applied effectively, it will produce a CSS system that is responsive to the needs of the combat forces. The CSS Principles are as follows:
a. Focused Support. Combat service support resources, is supported to those forces whose mission contributes most to the over-all mission.
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b. Impetus from the Rear. CSS units support to echelon in front and the echelon next subordinates.
c. Reliability. The supported commander assumes that his
allocated support is available wherever and whenever he is intends/plans to use it.
d. Simplicity. A simple plan, simple organization, and a simple
system is more likely to work well than a complicated plan, organization, and system.
e. Timeliness. The support is available in the right quantity, at the
right time and at the right place. f. Balance. Support resources are balanced against combat
requirements and the components of CSS. g. Authority. The commander effectively controls his allocated
service support resources but also ensures that each responsible service support elements possesses enough authority to carry out the commander’s intent when needs develop or unforeseen contingences occur.
h. Security. CSS units deploy to avoid giving away the
Commander’s plan, locate to protect Commander’s resources, and operate to accomplish the mission.
i. Economy. Using only whatever service support resources is
needed. 5. Functional Areas. CSS has five functional areas, namely:
a. Personnel and administrative services.
1) Strength Management
(a) Collecting, consolidating, analyzing and reporting.
(b) Assessing combat capabilities.
(c) Establishing replacement priorities.
(d) Allocating replacement.
2) Replacement Operations (a) To sustain combat capability.
(b) Replacement should be properly prepared for the
combat, well-trained and acclimated to the new units before going to combat.
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(c) HQ Service Company receives incoming replacements, provides temporary billeting and coordinates transportation to their assigned units.
(d) Maintain liaison with the hospitalized to ensure that
return to duty soldiers quickly return to their original units.
3) Casualty Operation
(a) Reporting and recording casualties.
(b) Reconciling multiple sources of data concerning the status of soldiers.
4) Postal Operations
(a) Distributes mails
(b) Assigns personnel to ensure that mail services are accomplished.
5) Promotions and Reductions
(a) Fills authorized spaces with qualified soldiers. (b) Recognizes and outstanding personnel. (c) Identifies poor-performing or errant personnel and
take appropriate actions. (d) Reduction serves as an important means of
maintaining discipline and the quality of force.
6) Awards
(a) Provides tangible and prompt recognition for acts of valor, exceptional service, or achievement and acts of heroism not involving actual combat.
(b) Provide incentives to perform military missions
under difficult or dangerous conditions and to foster pride, morale, esprit de corps and unit identification.
7) Morale Welfare and Recreation
(a) Unit commander is responsible for the morale and welfare of his soldiers.
(b) As tactical situation permits, soldiers must be afforded a respite from mental and physical fatigue.
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b. Finance services
1) Pay and Allowances
c. Chaplain activities
1) Chaplain activities are performed through unit, denominational, or area coverage.
2) The chaplain services both personnel and special staff
officer is responsible for implementing the commander’s unit religious program and ensures the free exercise of religion. The chaplain provides unit memorial services, battlefield interment services and spiritual and other religious activities.
d. Public affairs
1) The PIO (Public Information Officer) is the commander’s spokesman.
2) As a personal staff officer, he/she advises and informs
the commander regarding public affairs guidance, gathers and releases newsworthy information.
3) Satisfies the media guests demands for news and
answers to queries without distracting the commander. 4) Explains command operation to the media.
e. Legal services
1) Staff Judge Advocate provides the legal service support. 2) The Judge Advocate is the personal legal advisor of the
commander. 3) Implements the commander’s policies under the
preventive law program. 4) Establishes the climate for disposition of legal matters. 5) Order and discipline depend on the commander’s ability
to dispose of violations against persons and property victim and the unit. As to the current set-up, the AFPLC caters the CSS of GHQ and AFPWSSUs while the ASCOM caters the CSS of the Army.
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6. Elements
a. The Combat Elements of Combat Operations:
1) Combat Units:
(a) Infantry
(b) Armor
2) Combat Support Units:
(a) Artillery
(b) Engineer
(c) Signal
3) Combat Service Support Units:
(a) GHQ and AFPWSSUs
(b) ASCOM – PA (FSSU)
(c) Service Support Battalion – Division Level: (1) Maintenance & Motor Transportation
Battalion
(2) Supply & Service Company
(3) Medical Company
(4) Dental Detachment
b. Other CSS units that provide service support functions in a Division are:
1) HHSBN – provides personnel and administration services.
2) Signal Bn – provides signal supply and engineering
works. 3) Engineer Combat/Construction Bn – provides engineering
works.
c. Combat Service Support Officers. Staff officers that assist coordination with the Commander in discharging service support responsibilities:
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1) Division Level:
(a) AC of S, G1 – Personnel
(b) AC of S, G4 – Logistics
(c) MFO
(d) AC of S, G7 – CMO
2) Battalion Level:
(a) S1 – Personnel
(b) S3 – Operation and Training
(c) S4 – Supply Officer / RSO 7. Methods of Distribution
a. Unit. The supporting unit delivers the supply.
b. Supply point. The user unit goes to a designated point to withdraw their supply.
c. Through put. The source of supply brings directly the supply to
the user unit. 8. Mortuarial Services
a. The GRREG personnel perform mortuarial and memorial services through the Forward Service Support Units (FSSU) and provide for:
1) Searching for and recovering of remains; 2) Collecting, safeguarding and processing personal effects; 3) Evacuating remains promptly from the place of recovery; 4) Caring for remains in a reverent manner; 5) Identifying remains; and 6) Delivering remains to a servicing mortuary facility.
b. Duties of Field Commanders. All commanders must make
certain that GRREG and non-GRREG units under their command promptly search for, recover, identify, and evacuate remains. They must ensure that the search efforts within these units are thorough and that proper disposition
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is made of the remains. They must also see that all recovery and evacuation personnel perform their duties in a reverent manner.
c. Protection for GRREG Personnel. Commanders must take every precaution to protect search and recovery personnel from mines, unexploded ammunition, booby traps, and anti-personnel mines.
d. Commanders must make sure GRREG elements are notified
about areas known to be mined. When personnel believed there are mines or booby traps in an area, an Explosive Ordinance Disposal (EOD) specialist should go with them. If GRREG personnel find mines or booby traps, they should have an EOD specialists come in before they touch the remains. If hostile forces are operating in the area, a security force must be used to protect graves registration personnel. Commanders should ensure that search and recovery missions are conducted only during daytime.
e. Combat Phase. When combat personnel recover remains, they
preserve all items that may be used to establish an identity. They check to see if there are identification tags on the remains and make sure that the tags are left with the remains. If they find a military identification card on the remains, they make sure it is attached securely and protected from exposure to body fluids. They should put all personal effects and equipment with the remains and search the area immediately to be sure they have not overlooked any effects. The remains are then evacuated to the nearest GRREG facility.
f. Un-recovered Remains. When combat elements must move before they can recover the remains, unit personnel are usually detached to take care of the recovery and evacuation. If the commander has no one to do this duty, he notifies higher headquarters, by the fastest means available, of the exact location of the remains.
g. Post-Combat Phase. The Commander at the headquarters
depends on GRREG personnel to do the post-combat search and recovery. The search and recovery teams, usually operating from a collecting point, may be assisted by other troops, if they are needed. The GRREG officer responsible for the search keeps in close touch with those who can furnish helpful information, such as chaplains, hospital personnel, personnel in nearby units and intelligence sources. Higher Headquarters also publishes casualty reports that furnish time, location, and circumstances of each incident.
h. Recovery of Remains. If the team members find the remains,
they record the site on an overlay of the recovery area. They use at least two reference points to identify the location of the remains. They also prepare a sketch of the exact location of the remains. The sketch need not be drawn to scale, but it must show azimuths and distances from the recovery site to known points.
i. Identification of Remains. Search and recovery personnel try to associate a name with remains at the recovery site. At the collection point,
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they list all personal effects known to belong to the deceased, place them in the bag and attach it to the remains. The personal effect bag protects the article during evacuation and keeps them from being lost or stolen and from being damaged by body fluids or weather. Personnel also tag each remains with an evacuation number and the name of the deceased. Each unidentified remains is tagged with an evacuation number.
j. Care of Remains. Keep remains covered except when they are
being examined. Clothing and equipment shall be removed to determine the identity of the remains and put them in an effects bag.
k. Handling of Remains. The team leader will issue prenumbered
search and recovery tags to the team members. There are two tags with the same number for each remains. Team members attach one tag to the remains and the other to the human remains pouch. Team members place personal effects that are found with, but not on, remain in a personal effects bag. They tag this bag with the same search and recovery number as the remains and evacuate the bag with the remains.
l. Evacuation of Remains. Evacuation is the movement of remains
from the place of death to a servicing mortuary facility. As a rule though, remains recovered during the combat or post combat phases are sent through a collecting point to the mortuary.
m. Location of Collecting Points. Collecting points shall always be part of the Logistics Plans, Orders, and Annexes. Collecting points are often located near medical evacuation lines. During organized search and recovery operations, the search team usually sets up collecting points in the area where remains are being recovered. As soon as collecting points are set up and ready to receive the remains, the personnel put up road signs to show locations. Collecting points are moved when the tactical situation changes so that they are always located where they can give the best possible support to the units that depend on them. Remains may go through more than one collecting point during evacuation if the place of death is far from mortuary.
n. Evacuation from the Collecting Points. Among the facts that
must be considered before the remains are evacuated are the availability of the transportation and refrigeration. All remains should be evacuated as quickly as transportation arrangements can be made. However, if refrigeration is available for the remains, a collecting point can keep the remains a little longer. 9. Food Services
a. Military Food Program. A military food program covers the entire field of subsistence from procurement through consumption. It is design to assist the commander in establishing and maintaining a coordinated plan to ensure that the troops are properly subsisted at minimum costs to government. The commanders at all echelon are responsible for the implementation and execution of this program. It is important to emphasize
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the responsibility of commanders in this area since it is obvious that nutritionally adequate, appetizing and acceptable diets have a direct effect on the morale, well being and combat efficiency on the troops.
b. The food program encompasses all phases of search and development, program, inspection, storage, distribution, preparation, service, and conservation of food, thus constituting an important element of the logistics system. The program involves all matters concerned with the establishment of a food preparation facility, including the design, layout, and maintenance of food related equipment. Also inherent in the program is the technical training of all personnel concerned with all aspect of food.
c. The content of military ration is based on the food plan and
master menu. The plan reflects the unit of issue quantity, frequency of serving, ration factor and cost. The Master Menu is a monthly publication that recommends the breakfast, lunch and dinner menus for each of the month to be served in the mess hall and field messes. This Master Menu is only a guide however, and deviation can be made depending on the availability of food materials in the area.
d. The basic daily food allowances (BDFA) or subsistence
allowance is the monetary value of a prescribed quantity of food for the troops; which is required to provide a nutritionally adequate diet for one person for one day. This monetary restriction must be adhered to in developing the food plan. 10. Objectives. The overall objective of the food program is to provide an appetizing good quality nutritionally adequate diet to the AFP personnel, and to insure that sufficient food supplies are made readily available to them. For the families of the personnel, the AFP Commissary Exchange Service provides some of the requirements on a store concept basis. The specific objectives include:
a. Provide nutritionally balanced variety and quantity of subsistence for the consumption;
b. Maintain the highest possible dietary standards for the individual
soldier, both in the garrison and in the field; c. Provide adequate facilities and personnel required to handle the
receipt, inspection, storage, issue, and sale of food and household supplies and the preparation and service of food; and
d. Provide continuous training for personnel required to support the
food program.
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11. Type of Rations
a. Field Ration. The field ration is the basic ration of the troops. Menus are centrally prepared and published monthly in the Master Menu. It contains both fresh and frozen food that require considerable refrigeration facilities. Any variation to the Master Menu is permissible depending on the availability of material in the open market; however, the value of the basic daily food allowance cannot be exceeded. Field rations are prepared and served at the bivouac in the field, garrison and camp mess hall and in the ship.
b. Operational Ration. Operational ration is designed for feeding
military personnel that are operating away from the conventional ration supply line. This is commonly called combat ration or C-ration. Since this is the type that is not ordinarily served as warmed food particular effort, therefore, should be devoted to making this ration as appetizing and acceptable as possible, C-ration should meet the following characteristics:
1) Nutritioncy adequacy. Rations must be able to maintain the military efficiency, morale, and general health of troops engaged in military operations;
2) Acceptability. Ratons should provide sufficient variety to
be acceptable when consumed for several consecutive days. They should be palatable whether eaten hot or cold; and
3) Stability. Ration should retain their acceptability and
nutritional adequacy for and within which it has to last on storage at fluctuating temperature and humidity condition found in combat situations.
c. Hospital Ration. The hospital ration is the subsistence furnished during a 24 hour period to patients confined in AFP hospitals. The hospitals maintain dieticians in their employ to see to it that the foods or menus are prepared according to the nutritional requirement of the sick and wounded and within the limitation of authorized funds.
d. Meals Ready to Eat (MRE). This is a three-day cycle ration
consisting of nine (9) meals of different menus and is individually packed. This ration utilizes vegemeat as extender for viands. This will provide the soldier his/her daily nutrition and energy requirements. 12. Food Operations
a. Food operations requires a variety of facility and equipment used in the preparation of food for the messing of the troops in the field or in garrisons, camps, and ships. The amount and complexity of facilities and equipment varies from large, modern, commercial-type cafeteria to simple, one-burner, field stoves for heating individual ration in the field.
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b. In garrisons or camps the AFP has developed a standard plan for a modern, permanent kitchen and dining facilities which has capacities ranging from company-size to battalion-level mess halls. Food service lines are usually on a cafeteria style concept. Dining hall type is also practiced, particularly in service schools. There are open messes in different station clubhouse for both officers and enlisted personnel that serve on a cash and carry basis.
c. Field mess are provided for the troops in bivouacs. Since these
are temporary in nature they can not be provided with messing facilities and conveniences that are found in fixed facilities of garrison and camps. Tactical situation requires that the kitchen be made completely mobile. Field kitchen equipment is issued to units and organization based on the table of organization and equipment.
d. The general principles of food preparation and cookery are the
same under all conditions. The objectives are to prepare food in its most palatable form and to retain the maximum nutritive value with minimum waste. 13. Hospitalization and Evacuation
a. General
1) The functions of hospitalization, evacuation and other related services are the responsibility of the Army Chief Surgeon.
2) As a member of the Technical Staff, at PA headquarters
level, the logistics responsibilities of the Army Chief Surgeon include:
(a) Planning directing and supervising health services for the PA, including plans involving hospitalization, evacuation, medical materiel management, and medical equipment maintenance;
(b) Developing medical force structure, organizations,
and capabilities to support medical requirements for hospitalization, patient evacuation systems, medical material and medical equipment maintenance Service; and
(c) Developing and managing medical materiel
programs for the support of health services of the Philippine Army, the maintenance of medical supplies and equipment is sub-function of health care under the Surgeon General and operated within the framework of the overall logistics system. The Army Chief Surgeon is responsible for the establishment of appropriate implementing polices and procedures on health requirement of the soldiers. The Army Chief Surgeon, under the commodity managership concept, is the Commodity Manager for all medical requirements of the Philippine Army.
Manpower is the ultimate key to success on the battle-field and conservation of power is the driving forces behind the health
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services efforts. To conserve manpower through maximum reduction of medical non-effectiveness, a totally integrated health services system is required. The health services provided by this integrated system include preventive medicine, evacuation, hospitalization, veterinary and dental support, and the prompt supply of medical equipment and materiel in the quantities of the forces supported.
b. Principles of Field Medical Support
1) Continuity. Medical support must be continuous. Interruption of treatment will cause an increase in immobility and mortality. Once begin, treatment does not terminate until the patient has been returned to duty or discharged from the service or dies. Procedures should be standardized to the extent practical at each level of medical support to insure accomplishment of all required treatment and other medical functions appropriate to the means and situation at that level.
2) Hospitalization-Evacuation. The hospitalization-
evacuation concept is based on the doctrine of lower organizational levels of health services being supported by the next higher organizational levels. Individual levels have the responsibility of patient evacuation to their rear most medical facility only. The patient should not be evacuated further to rear than his physical condition warrants or the military situation requires. Except for minor injuries or illness which can be treated with minor surgery or available medicines, treatment in forward areas is usually limited to those emergency measures which will preserve life and limb and prepare the patient for further evacuation. Patients who cannot be returned to duty within a prescribed time are evacuated to the rear.
3) Control. Control of medical resources must rest with the
medical commander or medical staff officer. If the medical support system is to respond to the commander’s plan s in a timely manner, the surgeon responsible for its direction must be knowledgeable of the operations of medical units. The objective of military medicine is to conserve trained manpower, so that medical means must be employed to do the most good for the greatest number. When a wide disparity exist between the requirements for medical support and the means available, it may be necessary to favor those patients who can be returned to immediate duty, rather that those more seriously injured. The treatment performed at each level of the medical support system must be commensurate with available resources. Because medical resources are limited, it is essential that control of medical resources be trained at the highest medical level consistent with the tactical situation.
4) Proximity. Medical support must be as close to combat
operations, as the time/distance factor and the tactical situation permits. Early collection, sorting, and evacuation of patients must be provided. In reducing morbidity and mortality, the speed with which medical treatment can be initiated is extremely important. The concept involved in this principle is either the patient should be moved to the medical facility or move the facility to the patient. Two factors govern this choice the military situation and condition of
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the patient. The medical facility must not be located so far forwarded as to interfere with combat operations or to subject it to enemy interference; yet it must not be located so far to the rear that the patients chances for normal recovery and survival will be unnecessarily jeopardized by time lost in transporting him to the medical facility. In forward areas, medical support must provide emergency treatment prior to evacuation of patients to the rear.
5) Flexibility. Medical support must be flexible. A change in
tactical plans or operation may require redistribution/relocation of medical resources. The medical staff planner must be in a position to shift medical resources to meet changing requirements as they occur. Medical personnel or medical facilities shall be established only, as required.
6) Mobility. Medical elements must have mobility
comparable to that of the units they must support. Mobility is measured by the extent the medical unit can move its personnel and equipment with organic transportation available. When the mobility of the medical unit is jeopardized by the accumulation of patients, it may be necessary to leave a small holding detachment as the main body of the unit is moved.
7) Conformity. Conformity with tactical plan is one of the
most fundamental elements in the provision of field medical support. It is only by analyzing the commander’s plan that the medical planner can determine the medical support requirements. The plan should adequate medical support at the right time and right place.
c. Organization for Medical Support
1) The field medical support organizations are structured to
support the various tactical organizations in the area of operations. The organizational levels of field medical support are brigade, division, and task forces levels. Levels of medical support extend rearward to camps and bases. The field-level medical support includes preventive medicine activities, acquisition of the sick and wounded, emergency medical treatment, and evacuation from the point of illness or injury to the professional treatment at the station hospital in the operational areas.
2) A concept of medical support involves the delineation of
support responsibility by geographical area. It includes the provision of field medical support to units which do not possess an organic medical capability. Medical support to field units are allocated based on troop strength, and where and when, requirements indicate.
d. Evacuation and Hospitalization
1) Evacuation is the process of moving patients from the combat area or other location and through successive medical treatment facilities. Evacuation system is the term applied to the system of successive agencies and facilities engaged in collection, treatment, transportation, and hospitalization of patients. The most forward facility of the evacuation system
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in an aid station in the combat operation and the rearmost installation is a general hospital. From the combat area to rear area, each successive medical facility provides a more extensive type of medical care. Figure15-1 depicts the patient evacuation flow.
2) Evacuation of patients is a difficult task even under the
most favorable conditions. Evacuation must be made even against the constant forward flow of troops and supplies and with a minimum of interference with these activities. The majority of patients are gathered as individuals from combat areas and provided with individual care and treatment through all successive stages in the evacuation system to final hospitalization as required.
3) The term hospitalization is used to indicate medical care
and treatment provided at hospitals for serious cases or cases requiring extended care, as contrasted with emergency medical treatment or outpatient treatment provided at a hospital. Hospitalization is normally at the rearward area. The objectives of military medicine and hospitalization are congruent. Trained manpower is conserved by rapid return to duty of the maximum number of recovered sick or injured personnel. The objective of hospitalization cannot be attained unless it is always considered jointly with evacuation system because each is dependent on the other for efficient operation.
e. Medical Materiel
1) Medical commodity (class VIII in the classes of supply) consists of the necessary materiel for use in medical, surgical, dental, veterinary, laboratory, optical and allied disciplines. It includes a wide variety of items ranging from a simple aspirin tablet to a highly-sophisticated operating room table; from eyeglasses to microscopes; and from first aid kits to a complex major medical assemblage containing more than 3,000 different as a 1,000 bed general hospital.
2) Medical materiel is a highly specialized category of
supply that is used only by professionally qualified medical personnel in the military medical service. Medical items generally have no application beyond the care and treatment of patients. The ultimate purpose of the product in a medical supply system is the the treatment of the patient, for whom the effort was expended in the first place. The diagnosis, treatment and prescription of medication for a patient is solely the responsibility of the attending physician. It is therefore necessary that medical supply support should provide immediate and effective response to the doctor inadequate and un-responsive supply support in the interest of the patient’s welfare.
3) It is not enough that the system is adequate for most
needs of the service. It must be also completely responsive to the doctor-patient relationship, and to comprehensive patient care. The system must also be capable of rapidly adapting to a sudden increase in patient load in the event of a national emergency with minimum decrease in efficiency and no compromise in the doctor-patient relationship. The successful operation of the
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medical supply system is directly dependent upon its close integration with the total medical effort and its supervision by the Surgeon General.
f. Determination of Requirements
1) Medical supply requirements that are similar to the other
classes of supply are computed to take into account initial issue, replacement and consumption, reserves and safely levels, special projects, and supply pipeline. Care must be exercised that initial issues and quantities for special projects are not reflected in the operating levels. Special consideration must be given in computing medical supply requirement along with such aspects as seasoned items, potency date and deteriorating items, non-standard item, and repair parts.
2) Seasoned items. Medical supply requirements should be
calculated far in advance to permit procurement lag time and shipment of those items used during various seasons of the year where particular diseases are prevalent. Consideration must also be given to the drugs, including vaccines necessary to implement and support the immunization and other preventive medicine programs.
3) Potency dated and deteriorating items. In formulating
total medical supply requirements, considerations must be given to the replacement requirement for those quantities of items of a deteriorating nature and of a limited potency period which, because of demand, cannot be totally rotated. If normal issue and distribution actions are not sufficient to rotate all quantities prior to expiration of life expectancy, the unserviceable items must be disposed of and replaced. Stockage levels should be changed only if demands indicate and not simply to prevent expiration of the life expectancy while items are in storage. Levels for potency dated and deteriorating items will be stocked in sufficient quantities to meet anticipated demands.
4) Nonstandard items. Requirements for nonstandard items
in some cases cannot be predetermined and demands anticipated. However, the use of nonstandard medical materiel are necessary in the pursuit of the mission. In this case determination requirements for this type of items have to be considered.
5) Repair parts supply. Medical planners should consider
that proper stockage of repair parts for medical equipments is effective. Identification of equipment, (i.e., manufacturer, model, and serial number) becomes necessary to ensure that required repair parts will be made available to maintain the end item in a serviceable consideration within the life of the equipment.
g. Acquisition
1) The Army Chief Surgeon has the responsibility to add items, to delete items from, and modify items in the supply system. He/she defines the need for medical items on the basis of professional and logistics
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consideration, evaluation of comparable projects, preparation of essential characteristics of selected materiel, and type classification actions. The Surgeon General provides advice and assistance on the professional and technical aspects of medical materiel; carries out studies of complaints; coordinates with other government agencies on public health; and considers medical supply problems of a technical nature.
2) In the major services, a therapeutic board is organized
that is composed of Medical Officers. The board assists in the respective units. Like action of medicine and medical supply, requirement for their respective units. Like other supply, the medical materiel requirement of the AFP follows the same procedures as reflected in the procurement SOP.
h. Distribution. Because of the nature of medical supply (i.e., seasoned items, potency dated and deteriorating items), depot stocks of this materiel are limited to a few line items in the inventory at ASCOM. The distribution of medical materiel follows the same procedures as other supplies. The other line items of medical supply that are acquired by the procuring agencies of the AFP are distributed direct to user units, the handling, care and preservation, and transportation.
i. Disposal
1) Instruction for disposal of excess medical materiel similar
to other classes of supply is contained in appropriate SOPs. Due to the special nature of the commodity, a variety of disposal criteria may apply, depending on the general categories of the items concerned. Some categories which have distinct disposal criteria are: biological, drugs/reagents, hypodermic syringes and needles, precious metals, and radio-active materiel.
2) Destruction of materiel is effective in accordance with
appropriate SOPs. Drugs and biological, reagents and other materiel which have been declared unsafe or unsuitable for issue and are destroyed in accordance with special instruction issued by the Surgeon General.
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CHAPTER 13 RECORDS AND REPORTS
1. General. Accounting, issuance and withdrawal of supplies will undergo proper documentation. This is to ensure control and tracking of the stock levels of items needed by the Philippine Army. Supply Officers, specifically the Supply Accountable Officers, are mandated to use forms applicable for every issuance of supplies. Their accountability rest on these specific documents that will show how the procured government properties entrusted to them are efficiently managed and utilized. 2. Forms and Property Records
a. The Accounting Forms and Reports
1) Acknowledgement Receipt for Equipment (ARE). This receipt shall be used to acknowledge the receipt of property and equipment for official use from the Property Officer.
2) Inspection and Acceptance Report (IAR). This report shall
be used to acknowledge the receipt of supplies and equipment purchased and inspection made thereof.
3) Property Card (PC). This card shall be used by the
Supply and Property Unit to record the description, transfer/acquisition, disposal, and other information about the property, plant and equipment. It shall be kept for each class of property, plant and equipment.
4) Purchase Order (PO). This form shall be used to support
purchase of equipment, supplies and materials, etc. 5) Purchase Request (PR). This request shall be used for
the purchase of inventory or items that are not available on stock and it shall be the basis of preparing the Purchase Order.
6) Requisition and Issue Slip (RIS). This slip shall be used
to request supplies and materials that are carried on stock. 7) Report of Supplies and Materials Issued (RSMI). This
report shall be prepared by the Supply Officer and shall be used by the Accounting Unit as a basis in preparing the Journal Entry Voucher (JEV) to record the supplies and materials issued.
8) Report on the Physical Count of Inventories (RCPI). This
statement shall be used to report the physical count of supplies by type of inventory as of given date. It shows the balance of inventory items per cards and per amount and shortage or excess, if any.
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9) Stock Card (SC). This card shall be used to record all receipts and issuance of supplies. It shall be maintained by the Supply and Property Unit for each item in stock.
10) Waste Materials Report (WMR). This report shall be used
to account for all waste materials such as destroyed spare parts and other materials that are considered scrap due to replacement.
b. Forms for Use of Depot or Installation Supply Officers
1) Disbursement Voucher (DV) – This voucher shall be used by government agencies for all money claims. The number shall be indicated on the DV and on every supporting document of the claim.
2) General Voucher - (General Form 5(a)). This form shall
be used to pick up the accountability of property acquired through purchase from appropriated or reimbursable funds of the AFP.
3) Invoice Receipt - (General Form 30 (a)). This receipt shall
be used in the transfer of property accountability of non-expendable supplies from one supply officer to another. It shall serve as the evidence of issue of transfer, and it may be used as a packing slip or a tally out.
4) Requisition and Issue Slip (RIS). (See paragraph a 6)
above. 5) Property Turn-In Slip - (AGO Form 447). This form shall
be used for turning-in to the supply installation of the next higher level all excess and unserviceable supplies. This slip shall also be used to debit or credit accountability.
6) Inventory and Inspection Report of Unserviceable
Property (IIRUP) - This report shall be used as basis to record dropping from the books the unserviceable properties carried in the Property, Plant and Equipment account.
7) Supplies Adjustment Sheet - (General Form Nr 34(a)).
This form shall be used to subtract or sum up all issues of Republic expendable supplies (issued under “Requisition and Issue Slip) for B-5 and B-15 stocks by Depot Accountable Officer.
8) Inventory and Inspection Report - (General Form Nr 17 (a)). This statement shall be used for dropping accountability of Republic supplies which are either unserviceable through fair, wear and tear (FWT), through transfer to other government agencies, donation, destruction, etc.
9) Inventory Adjustment Report - (AFP AGO Form Nr 54-1).
This form shall be used to adjust discrepancies for MAP or non-Republic properties noted between balances in the stock cards and actual balance of stock on hand of all supplies, when such discrepancies do not exceed
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P600.00 and the item quantity short is not in excess of ten percent(10%) by line item of the recorded quantitative balance.
10) Report of Survey - (AFP Ago Form Nr 15). This report shall be used for obtaining relief from accountability and/or responsibility for lost, damage, stolen, destroyed, or worn-out supplies and equipment other than FWT.
11) Technical Inspection Report. This form, duly
accomplished, shall support the Inventory and Inspection Report; the Report of Survey or Statement of Charges, as the case maybe.
12) Report of Property Found in Station. This statement shall
be used to pick up accountability of all supplies like MAP, captured enemy property, and confiscated property to include donations and/or supplies not taken up in the record of the unit.
c. Forms for use of Supply Officers.
1) Acknowledgement Receipt for Equipment (ARE). (See paragraph 1), above.
2) Statement of Charges - (FS. Form No 3). Within the
meaning of the regulation, this form shall be used whenever the pay of an officer or enlisted personnel is to be charged for property lost, damaged, or destroyed due to personal negligence.
3) General Voucher - (General Form No 5(a)). (See
paragraph b 1), above. This form shall be used when making an emergency purchase of supplies.
4) Property Turn-In Slip - (AGO Form No 447). (See
paragraph b 4). above. 5) Stock Record Card - (QMS Form No 2 (Revised)). Is the
primary instrument of the formal stock record account, and indicates receipts and issue of property by individual transactions, voucher number, and all other necessary data for cross reference to documentation substantiating the stock record card entry.
6) Property Registry Book – Is a record of all the
transactions regardless of supply classification, in the order of occurrence. It contains chronological entries where in transactions are recorded from day to day as they occur.
d. Property Accounting Records of Consuming Level Supply Officers.
1) Acknowledgement Receipt for Equipment (ARE). See paragraph a 1) above.
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2) Record of Consumption. Any record or document which shows that expendables have been consumed in the public service or in the transaction of official business, such as trip tickets for POL products, job orders for technical service expendable; after encounter reports and after training reports for ammunition expended, etc.
3) Individual Clothing & Equipment Record - (AGO Form
32). This form shall be used to effect evidence of issued made to each enlisted man for clothing, and equipment on authorized allowance. It shall also serve as counter-receipt for turned-in individual equipment of each enlisted man. This form is the record of consumption for clothing.
4) Company Property Book. This is a record that is kept and
maintained by Supply Officers at Company Level for all T/O&E property by Technical Services, classification and grouping where receipts, issues and balances are shown.
5) Station Property Book. This book is similar to the
Company Property Book in which a record is maintained for all non-expendable housekeeping type non-T/O&E equipment issued by supply Officers of Posts, Camps or Stations.
6) Bin Card - maintained by warehouseman or store keeper.
It is reconciled with stock/property card. It is being kept for each kind or class of article and being on the shelves or bin where the article is stored. This card must always be kept up-to date.
e. Forms for use at the Office of the Army Chief Quartermaster
Service. 7) Quarterly POL Products Report (QPPR). This statement
is used to determine the actual quantity of POL products Received, Delivery Advice number, Type of POL Products, Amount and End-user.
8) Delivery Advice (DA). this form is used by AFP in the
delivery of POL products to end user units thru Oil Companies.
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ANNEX A
FORMS AND REPORTS
STOCK CARD
Agency
Item: Description: Stock No.: Re-Order Point:
Date
Reference
Receipt Issuance Balance No. of Days to
Consume Qty. Qty Office Qty
For Property Office Use
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STOCK CARD (SC)
INSTRUCTIONS A. This form shall be accomplished as follows:
1. Agency – name of the agency. 2. Item/Description – name of the item and its description. 3. Stock No. – stock number assigned by the property personnel
for each kind of supplies 4. Re-Order Point – quantity of stocks which when reached signal
the need to re-order the item. 5. Date – date of the source document employee, including serial
number is case of equipment with serial number. 6. Reference – reference document used as a basis in the
recording of the transactions such as the receipt or issuance of supplies. 7. Receipt-Quantity – number of supplies received. 8. Issuance-Quantity /Office – number of supplies issued and to
what office or unit issued 9. Balance-Quantity – the difference between the receipt and
issuance which shall be equal to the quantity of supplies on hand by the Supply Officer
10. No. of Days to Consume – estimated number of days for which the stock is to be consumed as determined by the Supply and Property Unit based on the historical data. B. The SC shall be maintained by the Supply and Property Unit for each item of supplies to record all receipts and issuances. C. Transactions shall be posted promptly from source documents. D. The physical inventory of supplies shall be reconciled every six months with the stock cards and any discrepancy/ies shall be immediately verified and adjusted. E. The balance per stock card shall be reconciled regularly with the stock ledger card maintained by the Accounting Unit.
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PROPERTY CARD
Agency
Property, Plant and Equipment:
Property Number:
Description:
Date Reference Receipt Transfer/Disposal Balance Qty. Qty. Qty. Office/Officer
For Property Unit Use
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PROPERTY CARD (PC)
INSTRUCTIONS A. This form shall be accomplished as follows:
1. Agency – name of the agency. 2. Property, Plant and Equipment – type of fixed asset (i.e. Xerox
machine). 3. Description – description of the property, plant and equipment
(i.e. brand, size, color, serial no., etc.). 4. Property Number – assigned property number by the Supply
and Property Unit. 5. Date – date of acquisition or transfer 6. Reference – reference document used as a basis in the
recording the receipt or issuance of property, plant and equipment 7. Receipt-Quantity – quantity of property, plant and equipment
received based on source documents 8. Transfer/Disposal-Quantity. – quantity of property, plant and
equipment transferred to other NGAs or disposed, issued, etc. 9. Balance-Quantity – difference between the quantity of the
property, plant and equipment on hand less the transfers, disposed or issued, if any.
B. The PC shall be kept for each class of property, plant and equipment to record the description, acquisition, transfer/disposal and other information about the asset. C. Transactions shall be posted promptly from source documents. The Supply and Property Unit shall maintain this card. D. The physical inventory of the property, plant and equipment shall be reconciled with the property cards every year and any discrepancies should be immediately verified and adjusted.
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JOURNAL ENTRY VOUCHER
Agency
No.: ________ Date: _______
Responsibility
Center
ACCOUNTING ENTRIES Accounts and Explanation
Account Code
P Amount Debit Credit
TOTAL Prepared by: ______________________________
Accounting Personnel
Certified Correct: _________________________
Head, Accounting Unit For Accounting Unit Use
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JOURNAL ENTRY VOUCHER (JEV)
INSTRUCTIONS A. This form shall be accomplished as follows:
1. Agency – name of the agency 2. JEV No. – assigned JEV number by the Accounting Unit.
The numbering shall be as follows: 00 – 00 - 000
Serial number (one series per year) Month Year
3. Date – date of the JEV preparation 4. Responsibility Center – code assigned to the cost center 5. Accounts and Explanation – account titles and brief explanations of
the transactions 6. Account Code – account code as prescribed in the Chart of the
Accounts 7. P – Special/General Journal to which the debit or credit shall be
recorded 8. Debit – total amount debited 9. Credit – total amount credited
10. Prepared by: - a brief explanation of the purpose why the goods or properties are being requested
11. Certified Correct – name and signature of the Head of the Accounting Unit certifying the correctness of the entries in the JEV
B. This form shall be numbered by the Accounting Unit and shall be used for all transactions of the government, whether cash receipt, cash disbursement or non-cash disbursement C. JEV shall be prepared in two(2) copies by the Accounting Unit based on the transaction documents presented and distributed as follows:
Original – submitted to the COA Auditor together with the supporting documents after recording in the journals
Duplicate copy –retained by the Accounting Unit for file D. Accounting journal entries shall be reflected therein and it shall serve as the basis for recording the transaction in the books of accounts.
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ITINERARY OF TRAVEL
Agency No.: ________ Name: ______________________________________________ Purpose of Travel:_____________________________________
_____________________________________
Date Places to be visited
T I M E E X P E N S E S
Means of Trans-
portation
Trans- portation
Per Diem
Total AmountDeparture Arrival
TOTAL
I certify that: (1) I have reviewed the foregoing itinerary, (2) the travel is necessary to the service, (3) the period covered is reasonable and (4) the expenses claimed are proper.
________________________ Immediate Supervisor
Prepared By :
Approved by :
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ITINERARY OF TRAVEL (IT)
INSTRUCTIONS A. This form shall be accomplished as follows:
1. Agency – name of the agency 2. Name – name of official/employee going on travel 3. Purpose of Travel – purpose of travel based on the
approved travel order 4. Date – schedule of activities to be performed during the travel 5. Places to be visited – places where the activities are to be
performed 6. Time – time of departure and arrival to places to be visited 7. Means of Transportation – means of transportations such as
plane, taxi, etc. to be used 8. Transportation – amount of transportation expenses 9. Per Diem – amount of allowable traveling expense for
subsistence and lodging 10. Total Amount – total of transportation expense and per diem 11. Total – vertical total of “Total Amount” column
B. The form shall be prepared by the official or employee making the travel to show the detailed itinerary of travel. C. This form shall be serially numbered and attached to all claims for traveling expenses. D. This form shall be prepared in two copies distributed as follows: Original – Accounting Unit (to be attached to the Disbursement
Voucher for payment of traveling expenses) Duplicate Copy – Officer/Employee concerned
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SUPPLIES AVAILABILITY INQUIRY
____________________________
Agency Division: _____________ Office: _______________
Responsibility Center Code: _____________
No.: ___________
Stock No.
Item Description
Unit
Quantity
Status of Stocks
Purpose/Remarks: ____________________________________________ ____________________________________________________________
Inquired by:__________________
Signature: ________________
Name: ___________________ Designation: ______________ Date: ____________________
Status provided by (Accounting Div.):
Signature: __________________
Name:______________________
Designation: _________________
Date: ______________________
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SUPPLIES AVAILABILITY INQUIRY (SAI)
INSTRUCTIONS A. This form shall be accomplished as follows: 1. Agency – name of the agency. 2. Division/Office – name of the requesting division or office. 3. Responsibility Center Code – responsibility center code of the
requesting office. 4. No. – number assigned by Accounting Unit. It shall be numbered as
follows: 00 – 00 - 000 Serial number (one series each year) Month Year 5. Stock No. – stock number of the item being queried as provided by
the Supply and Property Unit. 6. Item Description – brief description of the supplies being requested. 7. Unit – unit of measurement of the stock (i.e. box, bottle, etc.). 8. Quantity –quantity of the stocked being queried. 9. Status of Stock – availability of stocks to be filed in by the
Accounting Unit. Purpose/Remarks – a brief explanation of the purpose or details pertaining to the stocks being queried.
10.Inquired by – signature, name and designation of inquirer and date
of inquiry. 11. Status provided by – signature, name and designation of
person who provided the status of stocks and date the information is given.
B. This form shall be prepared by the office/employee of the requisitioning
office/unit. C. It shall be forwarded to the Accounting Unit to fill up the blank spaces
such as SAI NO., Stock No. and Status of Stock. D. Likewise, it shall be the basis in the preparation of Requisition and Issue
Slip it the goods/supplies is carried in stock, and Purchase Request if the goods/ supplies is not carried in stock.
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REQUISITION AND ISSUE SLIP
____________________________
Agency Division: ___________ Office: _____________
Responsibility Center Code: ________________
RIS No.: ________ SAI No.: ________
Requisition Issuance Stock No. Unit Description Quantity Quantity Remarks
Purpose: ____________________________________________________ ____________________________________________________________
Signature Printed Name Designation Date
Requested by: Approved by: Issued by: Received by:
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REQUISITION AND ISSUE SLIP (RIS)
INSTRUCTIONS A. This form shall be accomplished as follows: 1. Agency – name of the agency. 2. Division/Office – name of the requesting division or office. 3. Responsibility Center Code – responsibility center code of the
requesting office. 4. RIS No – RIS control number assigned by the designated personnel
in the Supply and Property Unit. It shall be numbered in the following manner:
00 – 00 - 000 Serial number (one series each year) Month Year 5. SAI No. – number of the Supplies Availability Inquired SAI) attached
to this RIS. 6. Requisition Stock No. – stock number of the item being requested
as provided by the Supply and Property Unit. 7. Requisition Unit – unit of measurement of the stock being
requisitioned such as ream, box, etc. 8. Requisition Description – description of the item being
requisitioned. 9. Rquisition Quantity – number/quantity of the stock being
requisitioned. 10. Issuance – Quantity – number of item issued. 11. Issuance – Remarks – additional information regarding the
issuance. 12. Purpose – brief explanation of purpose pertaining to the stock
being requisitioned 13. Requested by – signature, name and designation of the person
who requested the item and date of request. 14.Approved by – signature, name and designation of the person who
approved the issuance of the item and date of approval. 15.Issued by – signature, name and designation of the person who
issued the item and date of issuance. 16. Received by – signature, name and designation of the person who
received the Item and date of receipt. B. This form shall be used to request for goods/supplies carried in stock
based on the SAI received from the Accounting Unit. C. This form shall be prepared in three copies distributed as follows: Original – Accounting Unit (to be attached to the RSMI) Duplicate copy – Requisitioner Triplicate copy – Supply and Property Unit’s file
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PURCHASE REQUEST
____________________________
Agency
Department: ________________ PR No.: __________ Date: _________
Section: ___________________ SAI No.:__________ Date: _________
Stock No. Unit Item Description Quantity Unit Cost Total Cost
Purpose: ____________________________________________________ __________________________________________________
Signature:____________
Printed Name:_________
Designation:__________
Requested by:
____________________
Approved by:
______________
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PURCHASE REQUEST (PR)
INSTRUCTIONS A. This form shall be accomplished as follows: 1. Agency – name of the agency. 2. Department/Section – name of the requesting office or section 3. PR No./Date – number assigned and date the PR is prepared.
It shall be numbered as follows: 00 – 00 - 000 Serial number (one series for each year) Month Year 4. SAI No./Date – number and date of the Supplies Availability
Inquiry (SAI) attached to the PR. 5. Stock No.– stock number based on the SAI. 6. Unit– unit of measurement of goods/property requested (i. e.
piece, roll, box, ream etc.). 7. Item Description– brief description of the
supplies/goods/property ordered. 8. Quantity – quality of goods/property requested to be purchase. 9. Unit Cost – the estimated cost per unit of the goods or property
being requested. 10. Total Cost – estimated total cost of the goods or property being
requested. 11. Purpose – a brief explanation of the purpose why the goods or
properties are being requested. 12. Requested by– name and signature of the person requesting
the purchase of the items. 13. Approved by– name and signature of the person approving the
purchase of the items. B. This form shall be prepared if the goods/supplies/properties are not
carried in stock based on the SAI received from the Accounting Unit. C. The PR shall be prepared in two copies distributed as follows: Original – Supply and Property Unit (SPU) for their appropriate
action. Duplicate copy – Requisitioning Department/Office/Division File . D. Based on the approved PR, the SPU shall process the procurement of
the item requisitioned. E. After completion of the process, the SPU shall prepare the Purchase
Order.
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PURCHASE ORDER
___________________________
Agency
Supplier: _________________________
Address: _________________________
_________________________
TIN: _____________________________
P.O. No.: __________________
Date: _____________________
Mode of Procurement: _______
___________________
Gentlemen: Please furnish this Office the following articles subject to the terms and
conditions contained herein:
Place of Delivery: ___________________
__________________________________
Date of Delivery: ____________________
Delivery Term: __________
______________________
Payment Term: __________
Stock No. Unit Description Quantity Unit Cost Amount
Total Amount in Words:
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In case of failure to make the full delivery within the time specified above, a penalty of one-tenth(1/10) of one percent for every day of delay shall be imposed.
Very truly yours,
Conforme: ________________________________
Authorized Official: __________________________
_________________________________ Signature over Printed Name of Supplier
Date: __________________________
Funds Available:
____________________________
Chief Accountant
ALOBS No.: ____________
Amount: _______________
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PURCHASE ORDER (PO)
INSTRUCTIONS
A. This form shall be accomplished as follows: 1. Agency – name of the agency. 2. Supplier/Address/TIN – name and address and TIN of the supplier. 3. P.O. No – the number assigned to the PO which shall be as follows: 00 – 00 - 000 Serial number (one series for each year) Month Year 4. Date – date of preparation of the PO.
5. Mode of Procurement – mode of procurement such as public bidding Procurement Service, negotiated purchase, etc.
6. Place/Date of Delivery – place of delivery and definite date(s) of delivery, if not stated shall mean seven(7) days after the receipt of the PO by the supplier.
7. Delivery Term – delivery term i.e. FOB destination, FO shipping point.
8. Payment Term – specified period required when the delivered good shall be paid and discounts allowed such as 2/10, n/30.
9. Stock No. –stock number of the goods to be purchased as provided by the Supply and Property Unit.
10. Unit – unit of measurement of the supplies (i.e. box, bottle, etc.). 11. Description – brief description of the supplies or goods ordered.
12. Quantity – quantity of goods ordered. 13. Unit Cost – cost per unit of the supplies or goods ordered.
14. Amount – total amount of the goods ordered. 15. Penalty Clause – penalty imposed by the agency in case of non-
compliance with the term. 16. Conforme – signature over printed name of supplier or his
representative signifying his approval to the term set by the agency. 17. Funds Available – shall be signed by the Chief Accountant 18. ALOBS No. /Amount – the ALOBS number assigned by the
Budget Unit and the amount of obligation supporting the purchase. B. It shall be prepared in three (3) copies distributed as follows:
Original – to the Supplier for conforme to the terms of the PO and
attachment to the DV UPON REQUEST FOR PAYMENT Duplicate copy – retained by the Supply and Property Unit for file. Triplicate copy – COA Auditor
PAM 4-01
A-18
ACKNOWLEDGMENT RECEIPT FOR EQUIPMENT
____________________________ No.:______________ Agency
Qty Unit Description Property No.
Received by:
Signature over printed name
Position/Office
Date
Received from: Signature over printed name
Position/Office
Date
For Property Unit Use
PAM 4-01
A-19
ACKNOWLEDGMENT RECEIPT FOR EQUIPMENT (ARE)
INSTRUCTIONS
A. This form shall be accomplished as follows: 1. Agency – name of the agency 2. No. – Assigned control number
3. Quantity – number of units given to the concerned employee or user of the property.
4. Unit – unit of measurement. 5. Description – brief description or details of the items issued to the
concerned employee, including serial number is case of equipment with serial number.
6. Property No – assigned property number of the item B. The ARE shall be prepared in two copies distributed as follows: Original – Supply and Property Unit. Duplicate Copy – Recipient or user of the property. C. This form shall be signed and dated by the designated property Officer
under “Received from” portion and the recipient or user of the property shall acknowledge receipt by signing under “Receiving by” portion.
D. The ARE shall be renewed every year or every time there is a change in
accountability.
PAM 4-01
A-20
REPORT OF SUPPLIES AND MATERIALS ISSUED
_________________________________ Agency
Date: ___________________ No.: ______________
To be filled up in the
Supply and Property Unit
To be filled up in the Accounting
Unit
RIS No.
Responsibility Center
Code
Stock
No.
Item Unit Quantity
Issued
Unit
Cost
Amount
Recapitulation: Recapitulation:
Stock No.
Quantity Unit Cost
Total Cost
Total Cost
I hereby certify to the correctness of
the above information. ___________________________ Supply Officer
Posted by/date: ___________________________
Accounting Clerk
PAM 4-01
A-21
REPORT OF SUPPLIES AND MATERIALS ISSUED (RSMI)
INSTRUCTIONS A. This form shall be prepared by designated personnel in the Supply and
Property Unit (SPU) on a daily basis. B. The SPU personnel shall fill up all the blank spaces under the columns as
follows: 1. Agency – name of the agency 2. Date – period covered by the report. 3. No – assigned RSMI number which shall be in the following manner. 01 – 01 - 000 Serial number (one series each month) Month Year 4.SAI No. – Requisition and issue Slip (RIS) number served within the
day 5. Responsible Center – code of the requesting office. 6. Stock No – assigned stock number of supplies and materials issued
within the day. 7. Item – description of stocks issued. 8. Unit – unit of measurement of stocks issued. 9. Quantity Issued – quantity of stocks issued based on RIS. 10. Recapitulation– summary of issuance by stock number. 11. Certification– the certification of the report shall be signed by the
Supply Officer C. Upon receipt of this report, the designated accounting personnel shall fill
up the following columns as follows:
1. Unit Cost – cost of supplies and materials issued by the agency using the moving average method 2. Amount – amount (Qty. Issued x Unit Cost) of supplies and materials issued within the day 3. Posted by/date – name and signature of the accounting personnel who is posted to the Supplies Ledger Card based on recapitulation
D. The RSMI shall be prepared in two copies to be distributed as follows:
Original – Accounting Unit to support the JEV drawn to record issuance from the stocks.
Duplicate copy – Supply Officer’s file. E. The SPU personnel shall summarize all issuances by stock number. F. The Chief of the SPU shall certify the correctness of the information in the
RSMI. G. At the end of the month, all RSMI shall be consolidated for the preparation
of the JEV.
PAM 4-01
A-22
WASTE MATERIALS REPORT
________________________________ Agency
Place of Storage: __________________________ Date: __________
ITEMS FOR DISPOSAL
ITEM QTY. UNI DESCRIPTION RECORD OF SALES
O.R. No. Amount
1 2 3 4 5 TOTAL
Certified Correct: ____________________________
Property Officer
Disposal Approved: ____________________________
CERTIFICATE OF INSPECTION
I hereby certify that the property enumerated above was disposed of as follows:
Item: ____________ Destroyed: _______________________
Item: ____________ Sold at private sale: ________________
Item: ____________ Sold at public auction: ______________
Item: ____________ Transferred without cost to: __________
Property Inspector: (Name & Signature)
__________________________
Witness to disposition:
____________________
PAM 4-01
A-23
WASTE MATERIALS REPORT (WMR)
INSTRUCTIONS A. The WMR shall be used to report all waste materials previously taken up
in the books as assets so that they may be properly disposed of and dropped from the accounts.
B. It shall be accomplished as follows:
1. Agency – name of the agency 2. Place of Storage – exact location of the items for disposal. 3. Date – date of the preparation of the report. 4. Item – entry number in the report. 5. QTY – number of items being reported as waste materials. 6. UNIT – unit of measurement. 7. DESCRIPTION – name and description of item being reported as
waste materials. 8. RECORD OF SALES – O.R. No – official receipt no. covering the sale
of waste materials. 9. RECORD OF SALES – Amount – amount received for waste materials
sold based on the O.R.. 10. Total – total amount of sales. 11. Certified Correct – name and signature of the Property Officer. 12. Disposal Approved – name and signature of the Approving Authority.
CERTIFICATE OF INSPECTION
13. Indicate the corresponding item number of the waste material in the line opposite the mode of disposition made. 14. Property Inspector – name and signature of the concerned Property
Inspector. 15. Witness to disposition – name and signature of the person
authorized to witness the disposition of the waste materials.
C. This report shall be prepared in two (2) copies distributed as follows: Original – Accounting Unit Duplicate Copy – Property Officer’s file
R E S T R I C T E D
R E S T R I C T E D A-24
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY As of _______________________________
___________________________ _________________________________ (Agency) (Name of Accountable Officer) ___________________________ _________________________________ (Designation) (Station)
I N V E N T O R Y I N S P E C T I O N R E P O R T
Articles
(1)
Qty
(2)
Unit
(3)
Total
(4)
Property
No.
(5)
Data
Acquired
(6)
No.
of
years
in
service
(7)
Accumu-
lated
Depre-
ciation
(8)
DISPOSITION Ap-
prais-
al
(14)
Official
Receipt
Number
(15)
Amount
(16)
9
10
11
12 13
PAM 4-01
A-25
I HEREBY request inspection and disposition Pursuant to Section 79 of PD 1445, of the property
I CERTIFY that I have witnessed the enumerated above disposition of the articles enumerated on this report this _____ day of ______________, _________.
Requested by: __________________________
_____________________________________
(Signature of Accountable Officer)
___________________________________ (Signature of Inspector)
_________________________________ (Designation of Accountable Officer)
I CERTIFY that I have inspected each and every article enumerated in this report and that the disposition made thereof was, in my judgment, the best for the public interest.
Request for Inspection Approved by: ________________
____________________________
(Name and Signature)
___________________________ (Name and Signature of Witness)
____________________________ (Name and Designation)
R E S T R I C T E D
R E S T R I C T E D A-26
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY
(IIRUP)
INSTRUCTIONS A. This report shall be prepared in two (2) copies and submitted by the
Accountable Officer to the following: Original – Accounting Unit Duplicate Copy – Supply and Property Unit B. In cases where technical knowledge is needed for the determination of
the true condition or actual current value of the property to be inspected, a Technical Inspector with the required knowledge and training shall inspect the same.
C. Certain property, due to its very nature, becomes worthless as a whole,
but certain parts of motor vehicles or of some equipment with brass ornaments, buckles, etc. which posses intrinsic value in themselves or which may be useful in making repairs to other equipment. In such cases, and wherever practicable, the valuable part or parts of the article or equipment shall be separated from the worthless part/s for the proper accounting by the Accountable Officer at their appraised valuation or for proper disposition under Sections 79 and 79 of PD 1445.
D. When the property is sold, the record of sales shall be accomplished. The
Inventory and Inspection Report shall be held until the sale is consummated.
E. The original copy of the report shall be the basis for adjusting the
accounts affected by means of a journal entry voucher.
R E S T R I C T E D
R E S T R I C T E D A-27
REPORT ON THE PHYSICAL COUNT OF INVENTORIES
(Type of Inventory Item)
As of ________________________________
For which ______________________________, _____________________, ______________________ (Name of Accountable Officer) (Official Designation) (Agency Office)
is accountable , having assumed such accountability on _________________________ (Date of Assumption)
ARTICLE DESCRIPTION
STOCK NUMBER
UNIT OF
MEASURE
UNIT
VALUE
BALANCE PER
CARD
(Qty)
ON HAND
PER COUNT
(Quantity)
SHORTAGE/ EXCESS
REMARKS
QUANTITY VALUE
PAM 4-01
A-28
R E S T R I C T E D
R E S T R I C T E D A-29
REPORT ON THE PHYSICAL COUNT OF INVENTORIES (RPCI)
INSTRUCTIONS
A. This form shall be accomplished as follows:
1. Type of Inventory – inventory account name such as Office Supplies Inventory, Accountable Forms Inventory, Medical, Dental and Laboratory Supplies Inventory, Food and Non-food Supplies Inventory, etc. 2. Date – date as of given date. 3. Name of Accountable Officer – Name of the accountable officer. 4. Official Designation – official designation of the accountable officer. 5. Agency/Office – branch or office where the accountable officer is assigned. 6. Date of Assumption – first day of assumption of the duties and responsibilities as accountable officer. 7. Article – type of item or article (e.g.folder, bond paper, ballpen). 8. Description – brief description of the article (e.g. file tagboard for legal sizes, 210 x 297 mm (A4) min. of 70 gms, fine point black). 9. Stock Number – assigned stock number by the Supply and Property Unit. 10. Unit of Measure – e.g. piece, ream, box, etc. 11. Unit Value – cost per quantity unit. 12. Balance per Card – quantity of items or articles appearing in the Supplies Ledger Cards. 13.On Hand per Count – quantity of items or articles per physical count. 14. Shortage/Overage – excess of the quantity and total value of items or articles per supplies ledger cards over that of the physical count or vice versa. 15. Remarks – whereabouts, conditions and other relevant information relative to inventories.
B. This form shall be used to report on the physical count of inventory items by type such as Office Supplies, Accountable Forms, Medical, Dental and Laboratory Supplies, Food/Non-food Inventory, etc. which are owned by the agency.
C. This shall be prepared every six months in three (3) copies and shall be certified correct by the Inventory Committee and approved by the Head of the Agency. This shall be distributed as follows:
Original – Accounting Unit Duplicate Copy – Supply and Property Unit Triplicate Copy – Inventory Committee file D. The RCPI shall be submitted to the Auditor concerned not later than July
31 and January 31 of each year for the first and second semesters, respectively.
PAM 4-01
A-30
REPUBLIC OF THE PHILIPPINES
INVOICE RECEIPT FOR PROPERTY
QTY Unit NAME and
DESCRIP-
TION
DATE
of
PUR-
CHASE
PRO-
PERTY
No.
CLASSIFI-
CATION
No.
UNIT
VALUE
TOTAL
No.
AUTH. Issuance Directive No.
APPROVED FOR ISSUE:
INVOICE
RECEIPT
I CERTTIFY that upon authority of I have Transfer to: ___________________________
(Name and designation)
The above listed articles/property(ies) of the ___________________________
(Name of Agency)
____________________________
___________________________ (Name, Designation & Signature of
Invoicing Accountable officer)
I CERTIFY that I have received From: _____________________________
(Name and Designation)
The above listed articles/property(ies) for ______________________________
(Name of Agency)
______________________________
______________________________
(Name, Designation & Signature of Receiving Accountable Officer)
PAM 4-01
A-31
For Property Office Use
INSPECTION AND ACCEPTANCE REPORT
Agency Supplier: ____________________________________________IAR No.:
______________ PO No.: ___________Date: ____________ Invoice No. __________ Date:
____________ Requisitioning
Office/Dept.:________________________________________________
Stock No. Unit Description Quantity
INSPECTION
ACCEPTANCE
Date Inspected:
______________________ Inspected, verified and found in order as to quantity and specifications
Inspection Officer/Inspection Committee
Date Received:
___________________ Complete Partial (pls. specify quantity) ___________________________
Property Officer
PAM 4-01
A-32
INSPECTION AND ACCEPTANCE REPORT (IAR)
INSTRUCTIONS A. This form shall be accomplished as follows: 1. Agency – name of the agency. 2. Supplier – name of the supplier. 3. IAR No – number of the report. 4. PO No. – number of the Purchase Order. 5. Date – date of the Purchase Order. 6. Invoice No. – number of the Invoice. 7. Date – date of the Invoice. 8. Requisitioning Office/Dep – Name of the Requesting
office/Department . 9. Stock No.B – stock number of the item as provided by the Supply
and Property Unit. 10. Unit – unit of measurement such as ream, boxes, rolls, etc. 11.Description – brief description or details of the items purchased. 12.Quantity – number of units purchased such as 20, 10, etc. B. The IAR shall be prepared in three (3) copies distributed as follows: Original – Supplier (to be attached to the claim voucher) Duplicate Copy – Inspection Committee Triplicate Copy – Supply and Property Unit’s file C. This report shall be signed by the authorized Inspection Officer who
conducted the inspection and verification of the items to determine if the items conform to the given specifications. Indicate the date of inspection.
D. The Property Officer shall acknowledge receipt of the items by indicating
his name and signature thereon, a check ( / ) mark whether a complete or partial (specify quantity received) delivery was made. Indicate the date of receipt as well.
R E S T R I C T E D
R E S T R I C T E D A-33
REPORT OF PROPERTY FOUND IN STATION
_________________ Date ARMED FORCESOF THE PHILIPPINES TO: _________________________________ ADDRESS: __________________________
QTY U/I NOMENCLATURE U/PRICE T/PRICE CERTIFICATION OF ACCOUNTABLE OFFICER _________________ Date
I CERTIFY that the articles listed on this report were received by me in condition stated above that the same have taken up on my property records as per my Debit Voucher No. _____________ and that same will be disposed of in accordance with laws and regulations this matter. Noted by: ELVIRA P BUZON
SAO, GS, ASCOM,
PA
PAM 4-01
A-34
PROPERTY TURN-IN SLIP SUPPLY ACCOUNTABLE OFFICER
TO: _________________________ Page ___ of ____ pages
Voucher: ______________
FROM: ORGANIZATION
ITEM No. STOCK No. NOMECLATURE UNIT QTY REMARKS BASIS: Turn-in
LEGEND OF REMARKS: FWT - Unserviceable, due to fair wear and
tear R / S - Unserviceable, report of survey S / O - Unserviceable, statement of changes SFR - Serviceable EXS – In excess of authority allows M / R - Memorandum receipt of property
AFP form No. 447 (01 Nov 3) This form supersedes AFP AGO Form No. 447, 1 April 49, which mat use until existing stock are exhausted.
I CERTIFY that the Article listed herein are FOR THE COMMANDING GENERAL: Date:__________ ________________________ (Organization, Supply Officer)
QUANTITIES SHOWS IN ACTION COLUMN HAVE RECEIVED. ________________________
ELVIRA P. BUSON SAO,GS,ASCOM,PA Fort Station Supply
PAM 4-01
A-35
US PISTOL CAL .45 TECHNICAL INSPECTION REPORT
Date: ________ FA HOLDERS NAME: ___________________ AFPSN: ___________ US PISTOL CAL .45 SN: _________________ MAKE: ____________ MR. NR: ___________ SVC: ____________ UNSVC: _____________ ORIGINAL COLOR: ______ CHROME ______RED BLUE _______ SN TAMPERED ______________ UNTAMPERED ____________ Barrel Barrel Bushing Barrel Link Barrel Link Pin Disconnector Ejector Ejector Pin Extractor Firing Pin Firing Pin Spring Firing Pin Stop Front Sight Front Sight 125 Grip Safety Hammer Hammer Pin Hammer Strut Pin Hammer Strut Mag Tube Detail
Assy Magazine Catch Magazine Catch
Lock Magazine Catch
Spring Magazine
Follower Magazine Spring
Mainspring Mainspring Cap Mainspring Cap Pin
Mainspring Housing
Mainspring Housing Pin
Mainspring Housing Retainer
Recoil Spring Plug Plunger Spring Plunger Tube Rear Sight 1/ 10" Rear Sight 125 Receiver Recoil Spring Sear Safety Lock Safety Lock
Plunger Recoil Spring
Guide Sear Pin
Sear Spring Slide Slide Stop Slide Stop Plunger Stock Left hand
Walnut Stock Right
hand Walnut Stock Screw (4) Stock Screw
Bushing Trigger Assy
INSPECTED BY: APPROVED BY: ____________________ ________________ ____________________ ELVIRA P. BUZON SAO,GS,ASCOM,P LEGEND: O – Original R- Repaired D – Defective R/S – Replaced/Substitute M – Missing FWT – Fair, Wear and tear
PAM 4-01
A-36
PAM 4-01
B-1
ANNEX B
RECORD OF CHANGES
Identification of Changes or Correction
and Reg. No. (if any)
Date Entered
By Whom entered (Signature, rank, grade, or rate; name of command)
PAM 4-01
B-2
PAM 4-01
C-1
ANNEX C
Logistics Officers Career and Training Development Path
2LT
OIC/Chief, Logistics Positions Procurement
Officer
CSS Senior Platoon Leader, CSS Platoon Leader, Infantry Platoon
Leader
NOCC/MSOC Mess & Supply Offr (Aboard Ship)
Basic AFOC/Supply OC Squadron OC Basic
Contracting Course IDARM/DISAM
BASIC QMS/OS CSS Coy Ex-O Asst
Bn S4 NOCC/MSOC
Asst Proc Offr/Supply Offr (Ashore)
AFPLOIC Advanced Local/Foreign Log Dev’t and Mngt Courses Squadron Commander/Ex-O Logistics
Units/Offices
CLOAC Bn S4 or Asst Bde S4
CSS Coy Cmdr
NCSC Supply/Logistic Officer
Of Unit/Offices/CO, NSD
CGSCAdv Contracting Crse/ LEDEC
HPAF/GHQ Staff Officer Staff Offr, Log Unit/Office
SSBN EX-O or FSSU Ex-O Asst Div G4 Bde S4
Adv Logistics HPN/GHQ Staff Officer
Master DegreeAFP BAC Member Grp Cmdr C,
CO
C, CO SSBN/ FSSU Cmdr
G 4
A
4 N 4 MNSA
VCOM CNS
NSSC COMDR NLC Comdr
Air Log Comdr Air Wing Comdr
ASCOM Cmdr Support Grp Cmdr
ACOCS ACQM
DWC CO,PC
USDA DCS for Log J4 AFP BAC, Chair Dep J4/TQMG C, AFPPS/C, OCS/
C, QMTS
1LT
CPT
MAJ
LTC
COL
1
3
8
13
19
25
31
33
35
LEGEND: - PA - PAF - PN - COMMON DESIGNATION - MANDATORY SCHOOLING
.
PAM 4-01
C-2
PAM 4-01
D-1
ANNEX D
Format for Monthly e-POL Card Consumption Report
Unit/Office Letter Head _________________ _________________
e-POL Card Consumption Report for the Month of ______________________
Card Number
Embossed Name
Credit Limit (Php)
Utilization (Php)
Balance (Php)
7063441234 PA-OAQM-Chief
15,000.00 13,545.00 1,455.00
7063441235 PA-OAQM-Dep 10,000.00 10,000.00 - 7063441236 PA-OAQM-
Admin-1 15,000.00 14,560.00 440.00
7063441237 PA-OAQM-Admin-2
15,000.00 14,890.00 110.00
7063441238 PA-OAQM-POL Br
20,000.00 19,200.00 800.00
7063441239 PA-OAQM-RCA Br
20,000.00 20,000.00 -
7063441240 PA-OAQM-PR Br
20,000.00 17,500.00 2,500.00
TOTAL 115,000.00 109,695.00 5,305.00
Prepared By: NOTED BY: __________________________ ______________________ Logistics Officer/RSO Commander/ Chief of Office NOTE:
1. Card transaction slip from suppliers service station must be attached herewith covering the first and last day of the month as reference.
2. Must be submitted every 1st working day of the month to OAQM
as basis for processing of payment to the supplier. (In the absence of this card consumption report, OAQM shall continue the processing of payment).
PAM 4-01
D-2
PAM 4-01
1
GLOSSARY
Accountability - the obligation imposed by law, lawful order, or regulation on a person who is keeping an accurate record of property or funds. The person having this obligation may or may not have actual possession of the property or funds. Accountability is concerned primarily with custody, care and safekeeping. Accountable – having accountability (persons having accountability) or requiring accountability (property or funds require accountability). Accountable Officer – any person, military or civilian, designated and required to maintain a stock record account. The term specifically includes supply/property officer of support units operating stock record accounts whether or not the account is assigned an account serial number. The accountable officer may or may not have physical possession of the property or funds. Army - refers to the Philippine Army which is one of the three(3) Major Services of the Armed Forces of the Philippines. Combat Service Support – is the assistance provided to sustain combat forces in the fields of administration and logistics. Capability – a measure of the ability of a system to achieve the mission objective. Capability specially addresses the performance spectrum of the system. Committee – A group of military officers and NCO that is usually headed by the Commodity Manager or authorized representative. Commodity Manager – The Chief of Technical Service for Quartermaster supplies, materials, and services. Conform – the term used to describe the compliance of findings of an item tested on each parameter vis-à-vis the required specification. Delivery Point – the place or site where procured items are delivered by the proponent/manufacturer or supplier in accordance to the approved Purchase Order. Disbursement – the amount of cash released by an agency to pay for obligations incurred for project. Expendable Supplies – refres to supplies that are consumable or perishable in nature, and those which lose their identities when placed in or attached to a major item of property.
PAM 4-01
2
Evaluation - the process of determining the compliance of test findings or results of an item with the required specification or military standard, and whether the item is passed/acceptable or failed/not acceptable. Inventory - a physical count of all items for which responsibility has been fixed. Logistics - AFP 4-1 defined it as “the science of planning and executing the supplies, the movement and the maintenance of forces”, while FM 700-80 defined it as “the art and science of creating and maintaining a military capability.” Military Assistance Program – refers to supplies that are made available to the AFP by the US Government through either Grant Aid at no cost, or through purchased under the Mutual Security Military Sales Program. Materials – these are expendable commodities used by the government in the process of manufacture or construction, including parts or remnants from destroyed or damaged fixed assets. Mission, Enemy, Terrain, Troops Available and Time – These are factors that are taken into consideration when planning for or fighting in a battle. Non-Expendable Supplies – refers to supplies which are durable in nature and which do not suffer any material change, substantial change, or alteration in their size or form even after extensive use. Potable – (1) water which does not contain any objectionable substances or pollutants and is satisfactory for human consumption. (2) water that is free from disease-producing organisms, poisonous substances, chemical or biological agents, and radioactive contaminants which make it unfit for human consumption and many other uses. Potable water may or may not be palatable. Procurement - the acquisition of supplies, including non-personal services, written order or contract thru bidding, negotiation, emergency purchase, or by transfer under the prescribed laws, rules, and regulations. Public Bidding – the mode or procurement wherein the bidding for the supply of a particular item is open to all interested and qualified firms which is made possible by publication in media instruments and is competitive in nature. Quality Assurance - the system of documented control within the different supplies and services to ensure the fulfillment of the requirements and satisfaction of customer units Quartermaster –refers to all classes of supplies (excluding medical and ammunition).
PAM 4-01
3
Repair – the replacement, in whole or in part, of components of facilities or equipment, or the overlay of components of facilities, after normal wear and tear, decay, dilapidation, or destruction. Responsibility – the obligation imposed by law, order, or regulation of higher authority on all personnel of the AFP, whether in command or not, to ensure that any or all government property entrusted to their care or custody is properly protected, preserved, and maintained. Real Property – refers to buildings, lands, roads, and all other constructions adhering to the soil and everything attached to it and immovable in a fixed manner in such a way that it cannot be separated there without breaking the material or deterioration of the object. This includes land, standing timber, buildings, structures, plant and system, and ground and waterway facilities. Republic Supplies – refers to supplies that are purchased from appropriated or reimbursable funds of the AFP. Stock Record – a collective phrase to describe the forms that are used to record supply data in single items. Supplies – include all kinds of property except real estate which may be needed in the transaction of official business or public use, whether it is furniture, stationery, construction material, livestock, and such properties of similar nature, or equipment for issue to troops, units, and installation. Transportation – the conveyance of sediment materials or solid particles from one place to another on or near the earth’s surface by water, air, or gravity. Table of Organization and Equipment – the authority which shows personnel organization and basic organic equipment that a unit or organization is authorized to have. Treated Water – water that has undergone processing such as sedimentation, filtration, softening, or disinfection and is ready for consumption. Included is purchased potable water which is treated (chlorinated or fluoridated). Treated water does not imply portability until inspected and approved by the command surgeon. Water – a chemical compound consisting of two parts of hydrogen and one part of oxygen and usually having other solid, gaseous, or liquid materials in solution or suspension.
PAM 4-01
4
PAM 4-01
1
ABBREVIATIONS AADT - Annual Active Duty Training AFP - Armed Forces of the Philippines AFP RG - Armed Forces of the Philippines Regulations AO - Area of Operations AOR - Area of Responsibility ASA - Advice Sub-Allotment ASCOM - Army Support Command ATP - Ammunition Transfer Point AAU - Army Athletic Uniform ABC - Approve Budget of the Contract AQM - Army Quartermaster ARE - Acknowledge Receipt for Equipment APAO - Army Property Accountability Office BSA - Brigade Support Area BDA - Battle Dress Attire BER - Beyond Economical Repair CCIE - Combat Clothing and Individual Equipment CG - Commanding General COA - Commission on Audit CONS - Consumption CSS - Combat Service Support DA - Delivery Advice DS - Direct Support DOS - Days of Supply
PAM 4-01
2
DSA - Division Support Area DV - Disbursement Voucher
DX - Direct Exchange ECA - Enlistment Clothing Allowance EOD - Explosive Ordnance Disposal EBde - Engineer Brigade ETE - Expiration of Term of Enlistment FM - Field Manual FSU - Finance Service Unit FSSU - Forward Service Support FSS - Food Service Sergeant FU - Field Use FPAO - Field Property Accountability Office GHQ, AFP - General Headquarters, Armed Forces of the Philippines GOA - General Office Attire GSU - Graves Services Unit GS - General Support GRREG - Grave Registration GO - General Orders HQ - Headquarters ICA - Initial Clothing Allowance IAR - Inventory Adjustment Report IFC - Insulated Food Container IRP - Invoice Receipt Property ICIE - Individual Clothing & Individual Equipment
PAM 4-01
3
LABDE - Light Armor Brigade LOD - Line of Duty LNMB - Libingan Ng Mga Bayani LOG - Logistics LOGPAC - Logistics Package LRP - Long Range Patrol LSG - Logistic Support Group MA - Mortuary Affairs MAP - Military Assistance Program MFO - Management and Fiscal Office MKT - Mobile Kitchen Trailer MRE - Meal Ready to Eat METT-T - Mission-Enemy-Terrain-Troops Available and Time MSPC - Materiel Services Procurement Service OTAG - Office of the Adjutant General OCC - Officers Candidate Course O.D - Olive Drab OG1 - Office of the Assistant Chief of Staff for Personnel OPC - Officers Preparatory Course OAQM - Office of the Army Quartermaster OAQM - Office of the Army Quartermaster PO - Purchase Order FCPA - Finance Center Philippine Army PKG - Packaged PKGNG - Packaging
PAM 4-01
4
POL - Petroleum, Oil and Lubricants POTC - Probationary Officer Training Course PSDBM - Procurement Service, Department of Budget and Management
PABAC - Philippine Army Bids & Award Committee
PDT - Product Development Test
PITC - Philippine International Trading Corporation
PKG - Packaged
PMT - Project Management Team
POST QUAL - Post Qualification Test QM - Quartermaster QMS - Quartermaster Service RCA - Reenlistment Clothing Allowance RFU - Reimbursable Fund Unit RIS - Requisition and Issue Slip RSO - Responsible Supply Officer
RDC - Research & Development Center\
RSMI - Report of Supplies and Materials Issued SAO - Supply Accountable Officer SND - Secretary of National Defense SPRS - Strategic POL Reserved Stock SPT - Support SO - Special Orders SOP’s - Operating Procedures SSBN - Supply Support Battalion STON - Short Ton
PAM 4-01
5
SUP - Supply SVC - Service
SBn - Supply Battalion TIAC - Technical Inspection and Acceptance Committee TOE - Table of Organization and Equipment TIR - Technical Inspection Report TQMG - The Quartermaster General TWG - Technical Working Group TECH SPEC - Technical Specification TEST PARA - Test Parameters TWG - Technical Working Group
PAM 4-01
6
