WHEREAS, Administrative Order (AO) No. 161 "Institutionalizing Quality Management Systems in Government" was issued on 5 October 2006 as one of the National Competitiveness Summit (NCS) Action Agenda to effect actual improvements in public governance in recognition of the International Organization for Standardization (ISO) 9000 series which ensures consistency of products and services through quality processes;

WHEREAS, said AO directs the Departments of Budget and Management-Organization and Productivity Improvement Bureau (DBM-OPIB), the Department of Trade and Industry-Bureau of Product Standards (DTI-BPS) and the Development Academy of the Philippines (DAP) to constitute a committee to formulate the necessary institutional structure, mechanisms and standards to implement the Government Quality Management Program (GQMP), in consultation with relevant Constitutional bodies such as the Civil Service Commission (CSC) and the Commission on Audit (COA);

WHEREAS, for the effective implementation of the law, there is a need to identify with more particularly the guidelines in the pursuit of the components of the GQMP, including the expansion in its coverage, and the necessary structure that shall formulate the policies and oversee the GQMP;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Institutionalization of Quality Management Systems in Government. All departments and agencies of the Executive branch, including all government-owned and/or controlled corporations (GOCCs) and government financial institutions (GFIs), are hereby directed to adopt the ISO 9001:2000 Quality Management Systems as part of the implementation of a government-wide quality management program. The quality management systems shall be certified for demonstrated conformity with ISO 9001:2000 and the applicable Government Quality Management Systems Standards (GQMSS), with priority to be given to frontline services.

The State Universities and Colleges (SUCs) are likewise enjoined to establish ISO Quality Management Systems (ISO-QMS) and be certified accordingly. The Local Government Units (LGUs), Judiciary, the Legislature and the Constitutional offices are also encouraged to develop ISO-QMS and pursue certification.

SECTION 2. Objectives of the Government Quality Management Program (GQMP). The Government Quality Management Program aims to:

1. Promote and enhance public sector performance through the adoption of ISO 9001:2000 Quality Management Systems in all agencies of government;
   
   
2. Develop an institutional infrastructure that shall provide certification with international accreditation;
   
   
3. Establish the citizens' charter of key government offices that shall be provided to the transacting public as government's manifestation of service guarantee;
   
   
4. Recognize citizen-driven government organizations that have attained ISO 9001:2000 certification for other government agencies to emulate.
   

SECTION 3. Components of the GQMP. The GQMP shall have the following key components:

1. Government Quality Management Systems Standards. This component shall involve the development of a guidance document and the adaptation of relevant ISO management systems and standards that integrate relevant provisions of pertinent laws and/or rules and regulations to develop a culture of quality and integrity in governance characterized by citizen-focused and well-performing government organizations.
   
   
2. Advocacy and Capability Building. This component is expected to promote awareness, generate support, harness resources, and develop organizational capabilities in the establishment, implementation and continuing improvement of quality management systems in public sector organizations.
   
   
3. Certification of Agencies' OMS to GQMSS. The Philippine Certification for ISO Quality Management Systems (PISO-QMS) shall be established to give due recognition to qualified government organizations that have demonstrated conformity of their QMS to ISO 9001:2000 and the GQMSS. As such, this component shall establish the structure and mechanisms to ensure the credibility of all aspects of certification in line with said standards.
   

SECTION 4. Institutional Structure and Mechanisms. There is hereby created a Government Quality Management Committee (GQMC) to formulate policies and oversee the implementation of the GQMP.

1. Composition of the GQMC. The GQMC shall be composed of the heads of the following agencies:
   

(a)	Department of Budget and Management as Chairman;
(b)	Department of Trade and Industry as Co-Chairman;
(c)	Department of the Interior and Local Government as member;
(d)	Office of the President-Internal Audit Office as member; and
(e)	Development Academy of the Philippines as member.

2. Functions of the GQMC. The GQMC shall have the following specific powers and functions:
   

(a)	Serve as the steering and policy-making body for the GQMP;
(b)	Approve the standards, guidelines and institutional mechanisms to implement the program;
(c)	Coordinate with Leagues and LGUs in the formulation of standards and mechanisms to be adopted by the latter to ensure GQMS certification at the local level;
(d)	Coordinate with specific departments and agencies to attend to, or address constraints in the implementation of relevant Program activities;
(e)	Formulate necessary mechanisms to sustain the implementation of ISO-QMS among public sector organizations, including measures to fund the effort, as well as recognition/incentive schemes for Program participants;
(f)	Monitor and evaluate the implementation of the GQMP and, when necessary, effect appropriate adjustments thereon in the light of changing conditions in both the domestic and international environments; and
(g)	Submit progress reports to the President.

3. Resource Persons. The GQMC may invite representatives from the COA, CSC, local leagues and local chief executive as its resources persons.
   
   
4. Technical Working Group of the GQMC. The GQMC shall establish technical working groups (TWG) for the effective implementation of the GQMP, when it deems it necessary.
   
   
5. Secretariat. The GQMC shall organize a secretariat to provide technical and administrative support to the GQMC. The Secretariat shall report directly to the GQMC and be manned by personnel of the member agencies of the GQMC.
   

SECTION 5. Funding. The implementation of the GQMP at the agency level shall be funded by the existing appropriations of departments/agencies. The DBM Secretary is likewise authorized to set aside funds in pursuit of certain Program activities.

SECTION 6. Implementing Rules and Regulations and Guidance Document. The GQMC shall immediately issue the necessary implementing rules and regulations and the guidance document.

SECTION 7. Repealing Clause. Provisions of existing administrative issuances, rules and regulations regarding the institutionalization of quality management systems in Government inconsistent with this Order are hereby repealed accordingly.

SECTION 8. Effectivity. This Executive Order shall take effect upon its publication in a national newspaper of general circulation.

DONE in the City of Manila, this 23rd day of February in the year of Our Lord, Two Thousand and Seven.


By the authority of the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary