WHEREAS, the closer coordination among the agencies directly involved in the handling and distribution of foreign donated medicines and food has become necessary to effectively achieve and improve cost efficiency;

WHEREAS, the centralized planning of programs directly related to the distribution of foreign donated food and medicine is essential to ensure no overlapping of beneficiaries and to improve the network of distribution;

WHEREAS, there is a need to establish standardized procedures for the domestic transport, hauling, handling, storage and other related services for the distribution and effective delivery of all foreign donated medicines and food to their recipient agencies/programs/beneficiaries; and

WHEREAS, the centralization of contracting transport, hauling, handling and storage procedures would be most cost efficient to exact lowest possible freight handling rates and more comprehensive liability coverage for losses, and would establish transparent procedures to enable the Government to monitor the delivery of the aid commodities with their required local counterpart resources.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

SECTION 1. Creation of a Commodity Aid Committee. There is hereby created a Commodity Aid Committee, hereinafter referred to as the COMMITTEE, to be composed of the duly authorized representatives of at least directorial level from the following:

1. Department of Social Welfare and Development (DSWD)
   
2.   Department of Education, Culture and Sports (DECS)
   
3. Department of Health (DOH)
   
4. Department of Budget and Management (DBM)
   
5. Department of Finance (DOF)
   
6. Department of Transportation and Communications (DOTC
   
7. Commission on Audit (COA)
   
8. National Economic and Development Authority (NEDA)
   
9. Department of Agriculture (DA)

The agencies directly involved in the distribution of foreign donated medicine and food are the DSWD, DECS and DOH which shall hereinafter be referred to as agencies.

The National Nutrition Council of DSWD shall serve as the Secretariat.

SECTION 2. Chairperson of the Committee. The Chairperson of the Committee shall be chosen in its en banc meeting from among the representatives of the members of the Committee who are not directly involved in the distribution of foreign donated medicines and food aid. Selection of the chairperson shall be done immediately or not more than thirty (30) days from the effectivity of this Administrative 0rder.

SECTION 3. Powers and Functions of the Committee. The Committee shall perform the acts herein stipulated and all other functions it may deem necessary for the successful implementation of the program.

1. It shall work at centralizing those aspects of food and medicine aid where there is demonstrated advantage at centralizing. For this purpose, the committee is hereby authorized and empowered to require submission by agencies of report necessary for the implementation of the program.
   
   
2. It shall conduct a thorough study on the relevant problems with particular focus on improving cost-efficiency and program coordination and expanding the coverage to a greater number of target beneficiaries.
   
   
3. It shall process the bidding and awarding of freight forwarding services which shall involve the following activities:
   
   
   1. consolidate request for freight forwarding services from the agencies;
      
      
   2. design a pro-forma shipping contract between the agency and the freight forwarder;
      
      
   3. set pre-qualification requirements for interested bidders;
      
      
   4. issue tender calls for bidders;
      
      
   5. open and award bids in the presence of the agency ™s Commission on Audit resident auditors on authorized COA representatives;
      
      
   6. prepare and submit a report on the conduct and results of the bids to heads of the agencies enumerated in Section 1; and
      
      
   7. maintain file pertaining to bidders and contractors ™ performance.
   
   
4. It shall review the roles of private voluntary organizations such as the Cooperative for American Relief Everywhere (CARE) and Catholic Relief Center (CRS).
   
   
5. It shall recommend consolidated guidelines and policies governing the receipt and utilization of food and medicine aid requiring budgetary outlays from the Government of the Philippines.

SECTION 4. This Order shall take effect immediately.

DONE in the City of Manila, this 12th day of February, in the year of Our Lord, nineteen hundred and eighty-eight.


By the President:
(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary