SOP Library

SOP NO: GMO-AO-2K-09-001

Mission: General Memorandum Order

Area: Stabilization (STAB)

Activity: Memorandum (SB-MEMO)

Title: Guidelines on Pilot-Test Implementation of the 24-Hour ERAP Sari-Sari Store (ESSS) or Alay
na Pagkain
Hanggang Magdamag (APHM) Project

Date Approved/Issued: 09/11/2000

Date Effective: 09/11/2000

Digest:

1. To expand the stabilization mission of the Agency by distributing NFA rice

and other basic commodities to the consuming public 24 hours a day.

2. To serve as one of the livelihood projects of the government.

 This set of guidelines covers the following:

1. Identification of sites;
2. Commodities that will be carried by 24-hour ESSS;
3. Accreditation/establishment of store outlets;
4. Qualification of beneficiaries;
5. Manner of awarding the store to the beneficiaries; and
6. Maxi-time support system and monitoring.

I. General Policies:

A. The 24-hour ESSS shall be pilot-tested in the National Capital Region, and
areas in Mindanao where a Local Government Unit (LGU) is interested to
participate in the program. Selection of areas/ provinces in Mindanao shall
be determined by the urgency and volume of requirement in the area for
NFA rice and other ERAP Commodities and the on-going rehabilitation in
some parts of Mindanao.

B. The NFA provincial office/ district office shall establish at least one outlet
per city /municipality. The provincial office/ district office shall coordinate
with the local government units or barangay chairmen for the identification
of the area wherein store outlets shall be put up.

C. The NFA PO/DO shall issue an accreditation/ permit to the 24-Hour ESSS
as a dedicated NFA rice outlet and a license as a Rice Retailer.

D. The following basic commodities shall be carried by the 24-Hour ESSS:

1. NFA rice;
2. sugar;
3. cooking oil;
4. milk;
5. coffee;
6. sardines; and
7. noodles.

E. Except commercial rice, the 24-Hour ESSS may also sell other
commodities and services such as:
 1. Over-the-counter medicines;
2. Basic school supplies;
3. Beverages;
4. Postal Services;
5. News Stand;
6. Facsimile ;
7. Photocopying; and
8. Advertising.

F. The 24-hour ESSS shall sell directly to end-consumers, and on retail basis
only.

II. Specific Policies

A. Pilot-Test Areas

The Provincial/District Manager in coordination with its respective LGU,

shall determine the prospective sites of 24-Hour ESSS outlets. The sites
shall be selected based on the following criteria:

a. Heavy pedestrian-traffic area; and

b. Safety .

B. Coordination and Site Selection

1. The NFA Provincial Office/ District Office shall coordinate with the Local
Government Unit (LGU), of the determined area, the exact location of
outlets to be established.

2. The NFA shall establish linkages with the LGU as a conduit of this
project through a Memorandum of Agreement (MOA), using the pro-
forma in Annex A, to facilitate the establishment and effective
implementation of the project.

C. Putting Up the ESSS

1. The NFA shall provide the unit structure of the store while the LGU shall
be in-charged of the necessary clearances for the site and, in the
issuance of city/municipality license and other permits for the
establishment of stores. Arrangements for utilities such as electricity
and water, shall also be handled by the LGU or its beneficiary.

2. The LGU or its recommended store operator shall operate the 24-
hour ESSS.
 3. For its store operators, the LGU shall recommend any of the following
beneficiaries for approval of the NFA :

a. Religious Groups;
b. Civic Action Groups/Organizations;
c. Farmers Cooperatives/Organizations; or
d. Private Individual

4. The NFA may award the unit structure of the 24-hour ESSS to LGU or
its beneficiaries through any of the following schemes:

a. Outright purchase by LGU or its beneficiary based on NFA’s

acquisition/construction cost; or
b. Lease to own with monthly payment as agreed by both parties.

D. NFA Licensing Requirement

1. The designated 24-hour ESSS operator shall apply for an NFA license
as a Rice Retailer. The NFA license shall be issued for the purpose of
retailing NFA rice only. As such, the license shall be valid only until the
outlet cease to be an ESSS .

2. The PO/DO shall facilitate the issuance of the license and ensure that the
beneficiaries are not unduly burdened with its application requirements.

3. The NFA PO shall give the necessary assistance to the beneficiaries

and shall exercise permissible leniency in granting the NFA license
provided that the integrity of the NFA Rice Retailer’s License and the
objectives of the SOP on Registration and Licensing of Grains
Businessmen (BR-RL06, dated June 5, 1995) are not unduly
compromised.

E. Accreditation of Store Operator

The LGU or its designated store operator shall be granted accreditation as a

24-Hour service ESSS Operator upon compliance of the following
requirements:

a. Applicable business permits;

b. NFA Rice Retailer’s License;
c. Payment of Thirty Thousand Pesos (P 30,000.00) consumable cash
deposit for rice and other ERAP commodities only; and
d. Signed Deed of Undertaking (Annex B).

F. Ordering and Delivery

 The Provincial Manager/District Manager shall ensure that a Maxi-time
support system is installed in the NFA office to serve the ordering, payment
and delivery needs of the store operators.

G. Monitoring

1. It shall be the responsibility of the Provincial Manager/ District Office to

ensure that the 24-Hour ESSS is operated in accordance with the Deed
of Undertaking signed by the store operator.

2. The NFA Provincial Office shall organize teams to monitor the

operations of every outlet. Likewise, it shall also coordinate/request
concerned religious/civic and other LGU units to assist NFA in the
monitoring of this project concerning the following:

a. Compliance on the provisions of the Deed of Undertaking; and

b. Efficiency in serving the customers.

3. The e-TRADE Coordinating Center in the Central Office shall oversee

the implementation of the project and provide necessary support in
terms of policy formulation, coordination with other government
agencies, etc.

Existing NFA policies and procedures for the regular ESSS Program provided in the
SOP on ERAP ESSS and its amendments, i. e. procurement of ECs, price setting,
ordering/ reordering of stocks, documentation, liquidation of accountabilities, etc.,
not provided for nor amended in these guidelines shall remain enforced and strictly
followed by all concerned.

These guidelines shall take effect immediately.