Government Arsenal Legal Basis • Republic Act No. 1884 (June 22, 1957) created the Government Arsenal (GA), a line bureau under the Department of National Defense. • Executive Order No. 303 (March 29, 2004) mandated the Armed Forces of the Philippines, the Philippine National Police, and other law enforcement agencies to source their small-arms ammunition and other munitions from the Government Arsenal. Mandate The Government Arsenal (GA) designs and manufactures small arms, mortars, other weapons and ammunition for these weapons, and other munitions for use of the Armed Forces of the Philippines. 348 LOGICAL FRAMEWORK (GA) Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio- Economic Development and Political Stability Sectoral Goal Peaceful, Secure, and Stable Internal and External Environment Organizational Outcomes Country Free from Country Secured from Strengthened Security and Insurgency, Direct-Armed Aggression or Alliance and Partnership in Secessionism, and Other Invasion the Asia-Pacific Region; and Armed Threats to Stable and Peaceful Internal Security International Environment Major Final Output Quality Small-Arms Ammunition Programs/ Activities/ Manufacture of arms Munitions research and Projects and ammunitions, and maintenance development and security of arsenal 349 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos) FY 2008 FY 2009 FY 2010 Particulars Actual/Amount Target/Amount Target/Amount MFO 1 Quality small-arms ammunition 370,671 372,673 373,161 Number of small-arms ammunition manufactured 9.3 million rounds1/ 15 million rounds 15 million rounds Percentage acceptance based on standards 98% 98% 98% Complete delivery of ammunition manufactured 9.3 million rounds 15 million rounds 15 million rounds Number of munitions research and development projects conducted 10 projects 10 projects 10 projects TOTAL 370,671 2/ 372,673 373,161 Notes: 1/ Actual number of ammunitions manufactured in 2008 compared to target is short by 700,000 rounds for reason that the delivery of materials procured arrived late in 4th quarter of 2008 and was carried over as stock in the succeeding year to ensure continuous production as procurement lead time is 8-12 months. 2/ Includes customs duties and taxes (P13.020M), transfers from Miscellaneous Personnel Benefits Fund (P17.955M), and Pension and Gratuity Fund (P7.126M). FY 2010 MFO BUDGET By MFO/By Expense Class (In thousand pesos) Particulars PS MOOE TOTAL % Share MFO 1 Quality small-arms ammunition 158,178 214,983 373,161 100% TOTAL 158,178 214,983 373,161 100% % Share 42.39% 57.61% 100% By Expense Class (Total Budget = P373,161,000) PS MOOE 42.39% 57.61% 350.