Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 4213

Introduced by Representatives Oscar “Oca” G. Malapitan, Roman T.
Romulo, Ramon Rodrigo L. Gutierrez & Nathaniel M. Oducado, & Johanne
Monich G. Bautista

EXPLANATORY NOTE

This bill proposes to transform the Department of National Defense (DND)
Proper to enable it to more effectively carry out its mandate.

The current structure of the DND is based on Executive Order No. 292 or the
Administrative Code of 1987. Since then, efforts to reorganize the department to
make it attuned to prevailing conditions amounted to mere reconfiguration of its
organizational structure.

Those attempts may have been arguably sufficient then. But the stakeholder
base and the assets under the DND’s management have grown tremendously
through the years. Meanwhile, the security challenges the department seeks to
address, especially in the international sphere, are continually evolving, becoming
ever more complex, volatile, and uncertain, with a number increasingly requiring
real-time response.

Faced with those, an essentially stagnant organizational structure, the
expertise and dedication of its personnel notwithstanding, simply cannot cope up.
With plantilla positions generally capped at 347, including only 53 key and 32
technical positions, the DND Proper has one of the lowest in the executive branch.

It thus begs the question: how could the mother agency of the country’s
defense establishment effectively fulfill its gargantuan tasks?

The passage of this measure is thus prayed for to provide for a more
professional organization tasked with nothing short of the survival of the state.

Bea

HON. ROMAN T. ROMULO
Lone District, Pasig City



HON. RAMON nove L. GUTIERREZ
1-RIDER PARTYLIST



Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _ 4213

Introduced by Representatives Oscar “Oca” G. Malapitan, Roman T.
Romulo, Ramon Rodrigo L. Gutierrez & Nathaniel M. Oducado, & Johanne
Monich G. Bautista

AN ACT
STRENGTHENING THE DEPARTMENT OF NATIONAL DEFENSE
PROPER AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

ARTICLE I. GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the "DND Proper
Transformation Act".

Section 2. Declaration of Policy. - It is hereby declared the policy of the
State to maintain a defense establishment capable of upholding Philippine
sovereignty, territorial integrity, and national interests, and thereby foster a safe
and stable environment for national development; and the well-being and safety
of the Filipino people in a proactive and sustainable manner.

The State recognizes the urgent need to craft a defense architecture that
will be adaptable, flexible, and sustainable amid a variety of known and unknown
challenges through an operationally secure system. In part, capability and
capacity re-building of the Department of National Defense (DND) and the
Department Proper must be immediately undertaken to adequately perform its
critical mandate in our country's national defense environment while reaffirming
the Constitutional principle that civilian authority, is at all times, supreme over
the military.

Given these, there is a need to transform the DND into an agile, resilient,
modernized, and responsive organization.

Section 3. Definition of Terms. - As used in this Act, the following terms
are defined as follows:

(a) Department of National Defense/Department- refers to the DND
Proper and its attached bureaus.


(b) DND Proper/Department Proper - offices directly under the
supervision of the Office of the Secretary of National Defense.

(c) Defense Infrastructure - a capacitating system composed of
tangible (e.g., physical facilities, equipment, human resources)
and non-tangible (e.g., policies, processes) components for
sustaining and enhancing multi-domain defense capabilities.

() Defense Real Properties- lands, buildings, and constructions of all
kinds which are owned, operated, or used by the Armed Forces of
the Philippines or other DND Bureaus for defense and security,
and other purposes necessary for the accomplishment of the
Department's mandate.

(e) Global Knowledge Networks - a system of interconnected
individuals, organizations, and institutions across the world that
share, develop, and disseminate knowledge and information.

ARTICLE I. THE DND PROPER: MANDATE, POWERS, AND FUNCTIONS

Section 4. Mandate of the DND. - The DND shall maximize its
effectiveness for guarding against external threats to national security, provide
support, as directed by the President, to conduct operations to address internal
threats, foster the conditions conducive to socio-economic development, and
promote the welfare of soldiers and veterans.

Section 5. Relationship of the DND with other Departments and
Uniformed Services. - In times of war, as declared by Congress, or national
emergency upon direction of the President, all elements of the Philippine National
Police, the Bureau of Fire Protection, the Bureau of Jail Management and
Penology, the Bureau of Corrections and the Philippine Coast Guard shall be
attached to the DND to assist the Armed Forces of the Philippines (AFP).

Section 6. The DND Proper. - There is in the DND a DND Proper
hereinafter referred to as the "Department Proper’ whose function is to assist the
Secretary of National Defense in carrying out the Secretary's duties and
responsibilities and other duties as may be prescribed by law.

Section 7. Mandate of the DND Proper. - The Department Proper is
mandated to provide strategic policy advice and direction; and develop the
capability of its attached bureaus. Specifically, the DND Proper shall:

(a) Assess the security environment and capability gaps;
(b) Identify enabling solutions and craft defense strategies, plans, and
policies;

(c) Develop and maintain an adaptive defense infrastructure that
capacitates the defense establishment to understand and leverage
the complexities of the security environment in enhancing its
capabilities;


(d) Manage and provide defense resources and services;
(e) Strengthen stakeholder relations for defense priorities; and

(f) Conduct monitoring of and evaluation on the efficiency,
effectiveness, and integrity of the programs and operations of the
Department.

Section 8. Powers and Functions of the DND Proper. - In the fulfillment
of its mandate, the Department Proper shall:

(@) Formulate national defense strategies, plans, policies, and
programs, including a rational, functional, and sustainable
mobilization plan for the deployment of the country's citizens and
resources for national defense;

(b) Continue to institutionalize and develop a system that shall
integrate and formulate, among others, security environment
assessment, planning, resource management, research and
development (R&D) and innovation, acquisition, control, support,
administration, and decision-making responsibilities of the
Secretary of National Defense and the senior leaders of the
Department Proper;

(c) Formulate, establish, implement, and supervise a sustainable and
resilient management system suitable to the requirements of the
defense establishment and its stakeholders;

(d) Enter into and execute contracts of every class, kind, and
description which are necessary or incidental to the performance
of its mandate as provided herein, with any person, firm or
corporation, public or private, and with foreign government
entities, subject to the requirements of national security;

(e) Develop, enhance, and sustain multidimensional defense
cooperation and engagements with the defense establishments
and armed forces of other countries, and other regional and
international organizations, as well as with global knowledge
networks and defense industries in accordance with sustainable
development and national security goals;

(f) Develop a self-reliant and agile defense force, including entering
into partnerships with foreign entities, that is capable of
identifying strategic vulnerabilities, addressing current and
potential threats, and mitigating risks across the domains of war
through developing adaptive and sustainable defense
infrastructure;

(g) Oversee effective disaster resilience initiatives in collaboration with
national government agencies, LGUs, foreign defense
establishments and armed forces, as well as intergovernmental
and international humanitarian organizations;


(h) Exercise supervision over the AFP and control over attached
bureaus through the formulation, implementation, and
monitoring and evaluation of national defense, and corporate,
service, or manufacturing strategies, policies, plans, and
programs;

(i) Develop the capacities and capabilities of the AFP and attached
bureaus to effectively and efficiently address mission
requirements; and

() Perform such other defense-related functions as may be provided
by law or directed by the President of the Philippines.

ARTICLE Ill. ORGANIZATION AND MANAGEMENT OF THE DND PROPER

Section 9. Composition of the DND Proper. - The Department Proper
shall be headed by the Secretary of National Defense, hereinafter referred to as
"the Secretary”, and shall be composed of the Office of the Secretary, the Offices
of the Undersecretaries and Assistant Secretaries, and the delivery units and
offices.

Section 10. The Secretary of National Defense. - The Secretary shall
be appointed by the President, subject to the confirmation by the Commission on
Appointments.

Section 11. Powers and Functions of the Secretary of National
Defense. - _ The authority and responsibility for the exercise of the mandate,
powers, and functions of the Department shail be vested in the Secretary, who
shall exercise supervision and control over the Department. For such purposes,
the Secretary shall have the following powers and functions:

(a) Advise the President on all matters of national defense policy,
including the promulgation of executive and administrative
orders, and on the formulation of necessary regulatory and
legislative proposals on matters pertaining to national defense
and security;

(b) In times of war, the Secretary shall act as alter ego to the
Commander-In-Chief, manage and control all information across
all types of media, and administer mobilization of appropriate
personnel and resources;

(c) In times of national emergency, natural hazards or other related
disasters, the Secretary shall have the authority to mobilize
and/or call reservists to active duty;

(d) Provide executive direction and exercise supervision over the
Department and its attached bureaus for program and policy
coordination;

(e) Establish policies and standards for the efficient and effective
operation of the Department, consistent with the programs of the
government;


()) Evaluate policies, plans, programs, projects, performance, and
accomplishments of the Department, which shall be made
available to the public through its website or any other means
that will ensure broad dissemination of its contents, subject to
operational security requirements;

(g) Appoint all officers and employees of the Department and its
attached bureaus, except those whose appointments are vested
in the President or other appointing authority;

(h) Grant appropriate allowances and incentives to officials and

employees to guarantee a competitive salary structure in
accordance with existing laws, rules, and regulations;

(

Exercise disciplinary powers over officers and employees of the
Department Proper, including their investigation and the
designation of committee or officer to conduct such investigation,
and establish security criteria for the same;

@

Issue orders, directives, rules, regulations, and other issuances
to carry out plans, policies, programs, or projects pursuant to the
provisions of this Act, and exercise such other powers as may be
required to implement and realize the objectives of this Act; and

(k) Perform such other functions as may be provided by law or
assigned by the President.

Section 12. National Defense Executives. - The Secretary shall be
assisted by at least six (6) Undersecretaries, at least eight (8) Assistant
Secretaries, and at least sixteen (16) Directors and Assistant Directors of an
equivalent number of delivery units and/or offices. They shall be appointed by
the President upon the recommendation of the Secretary.

Section 13. Qualifications. - No person shall be appointed as
Undersecretary, Assistant Secretary, Director, Assistant Director, or any other
third level position in the DND unless he or she is a citizen and resident of
the Philippines, of good moral character, of proven integrity, and highly qualified
for the position by reason of background and relevant experience.

Section 14. Sub-National Offices. - The Department may establish,
operate, and maintain sub-national offices throughout the country, as
management necessities require, based on the determination of the Secretary of
National Defense. Each sub- national office shall be headed by a Director, who
shall be assisted by an Assistant Director.

Section 15. Structure of the DND Proper. -The Department Proper shall
determine its organizational structure and propose the creation of new divisions
or units as it may deem necessary, and shall appoint qualified officers,
specialists, and employees.


Members of the armed forces in the active service may be assigned or
detailed for duty in the Department Proper, provided that they shall not be
appointed or designated in any capacity to a civilian position. The service of those
assigned or detailed for duty in the Department Proper shall be given appropriate
weight and/or credit for their career development.

Section 16. Corps of National Defense Specialists. - The Department
Proper shall likewise establish, institutionalize, and nurture a Corps of National
Defense Specialists that constitute the supervising specialists to senior officials
of the Department Proper, occupying positions from Salary Grade (SG) 18 to 30.

The Department shall provide the appropriate learning and development
(L&D) interventions to mold them into well-rounded defense professionals and
ensure their responsiveness to current, emerging, and future requirements of the
defense establishment, foreign and domestic.

The L&D interventions shall include an immersion program aimed at
strengthening their conceptual and practical understanding of defense
management and innovation. The Corps is to be familiarized with the various
aspects of the Department's operations through functional rotation among the
Department Proper's offices and attached bureaus; and relevant government
agencies, with the goal of imbibing best management practices.

Section 17. Continuing Education of the DND and Its Attached
Bureaus. - All officials and employees of the Department and its attached
bureaus may avail of opportunities for local or foreign scholarships and other
training and research grants, including participation in seminars, conventions,
and conferences, to enhance and upgrade their professional and technical
knowledge, skills, and competencies.

The Department may enter into arrangements with leading learning
institutions for the conduct of such education, training, and research programs,
as may be deemed necessary, to keep it abreast with current and emerging trends
on defense and security. This shall also include the sending or exchange of
subject matter experts (SMEs) to other government agencies, foreign
governments and/or institutions to further enhance the learning of the
Department personnel through a more practical, real-world approach.

‘The Department shall likewise be empowered to enter into research and
development initiatives in collaboration with appropriate government agencies,
non-government organizations, and the academe, which shall have the
highest national security classification, provided that the intellectual property
rights of such shall redound to the Republic of the Philippines.

Personnel of the Department and its attached bureaus participating in
education, training, and research programs shall be entitled to emoluments and
allowances, subject to existing laws, rules, and regulations.

Section 18. Magna Carta. - Employees and officials of the Department
Proper and DND attached agencies shall be covered by appropriate laws, which
provide magna carta for qualified personnel in the government.


Section 19. Hazard Pay. - All employees and officials of the Department
Proper and DND attached agencies who are exposed to high risks or perils to life
in the performance of their duties and responsibilities, shall be compensated with
hazard pay based on conditions set by the Secretary of National Defense or other
relevant agencies.

ARTICLE IV. RESOURCE MANAGEMENT

Section 20. Defense Budget. - Within a period of five (5) years, the total
annual budget of the Department shall be progressively increased to at least two
percent (2%) of the Gross Domestic Product (GDP) in real terms using the year
preceding the implementation of this Act as the base year, and adjusted every
ten (10) years thereafter.

Section 21. Acquisition, Service Infrastructure, and Maintenance
Contracts. - Considering the unique requirements of national defense, the
Department shall be authorized to forge defense partnerships with strategically
aligned countries and ensure the continuity of the defense supply chain,
including entering into long-term, multi-year contracts outside the ambit of
Republic Act No. 9184, otherwise known as the "Government Procurement
Reform Act.” These shall enable the Department to acquire supply chains, co-
develop secure technologies, and support the acquisition, development,
maintenance, and disposal of all defense assets, provided that the entities to
which it shall contract with have been duly vetted as technically and financially
capable to provide the Department's needs without compromising national
security.

Section 22. Management and Control of Defense Real Properties.
- The Department Proper shall administer, operate, manage, control, maintain,
and develop defense real properties for strategic basing and shall use, hold,
acquire, or lease any private real property, right of way, or easement, which may
be proper or necessary for the accomplishment of its mandate as provided in this
Act. The power to manage and control defense real properties includes, but is not
limited to, the following:

(a) Prohibit the sale and/or exchange of strategic defense real
properties unless otherwise recommended by the Secretary and
approved by the President of the Philippines;

(b) Authorize the lease and/or development of defense real properties,
by joint venture or otherwise, through the recommendation of the
Secretary and approval of the President of the Philippines; and

(c) Transfer of non-strategic defense real properties, as determined
by the Secretary, under the management of the Armed Forces of
the Philippines Pension Trust Fund.

Any and all income derived from the lease or disposition of such defense
real properties shall be remitted only to the AFP Pension Trust Fund or special
purpose trust funds to be determined by the Secretary. Said trust funds shall
be used strictly for the intended purposes and shall not be co-mingled with other
funds, and disbursed in accordance with existing laws, rules, and regulations.


Section 23. Grants and Donations. - The Department Proper may accept
donations, contributions, and grants from various local or foreign sources, for
purposes relevant to its mandate and functions or intended for its bureaus and
agencies, provided that acceptance thereof shall be subject to compliance with
existing laws, rules, and regulations.

ARTICLE V. SERVICE CONTINUITY

Section 24. Responsive Service Delivery and Resiliency. - The
Department Proper shall ensure the provision of resources necessary for
organizational productivity, responsive service delivery, and service continuity to
include, among others:

(2) Modem and responsive work productivity tools and platforms;

(b) Automation, integration, and digitalization toward streamlined
systems and processes;

(c) Secure, smart, sustainable, and resilient infrastructure;

(d) Presence in strategic locations to facilitate joint efforts among the
Department Proper and its Bureaus and ensure service
continuity; and

(e) Progressive human resource guidelines designed to enhance the
adaptability, competitiveness, and well-being of the Department's
human resources.

The Department Proper shall develop an organizational service continuity
plan to ensure uninterrupted service delivery, subject to periodic review and
updating as frequently as necessary or at least every three (3) years.

‘The Department Proper shall likewise craft an infrastructure master plan
and design considering timeline and appropriate features to ensure a conducive
work environment in collaboration with the Department of Budget and
Management and other Departments.

ARTICLE VI. FINAL PROVISIONS

Section 25. Security Consciousness and Protection of Sensitive
Information. - To protect national interests and security, the Department shall
strictly observe the highest standards of personnel, document, and information
security at all times through the implementation of stringent measures such as,
but not limited to:

(a) Review and updating of existing protocols, manuals, and guidelines
on handling physical and digital documents and sensitive
information and strict implementation thereof;

(b) Assignment of the appropriate security clearance to every personnel
upon entry into the Department and its regular review thereafter; and


(c) Utilization of state-of-the-art security systems and/or technologies in all
defense establishments and Infrastructure.

The schedule of penalty for other violations shall be stipulated in the
Implementing Rules and Regulations.

Section 26. Appropriations. - The amount necessary to implement the
provisions of this Act shall be included in the General Appropriations Act under
the DND.

Section 27. Transitory Provisions. - The Department Proper shall
undertake a comprehensive review of its Organizational Structure and Staffing
Pattern (OSSP) with the end view of professionalizing, providing career pathing
and upward mobility, and implementing a competency-based system of human
resource development.

Within six (6) months from the effectivity of this Act, the Department shall
submit to the Department of Budget and Management its proposal and such other
requirements for the strengthening and modernization of the Department Proper.

Likewise, within one hundred and twenty (120) days from the approval of
this Act, the Secretaries of National Defense, Finance, Budget and Management,
Trade and Industry, and the Director-General of the National Economic and
Development Authority shall jointly promulgate rules and regulations to facilitate
the importation and exportation of defense articles compliant with international
conventions on the sale, transfer, trade of such articles, and applicability of tax
laws, if necessary.

Section 28. Implementing Rules and Regulations. - Within one-
hundred and twenty days (120) days from the effectivity of this Act, the DND shall
formulate the rules and regulations necessary for its effective implementation.

Section 29. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, and other issuances, or parts thereof,
which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

Section 30. Separability Clause. - If, for any reason, any provision of
this Act is declared invalid or unconstitutional, the remaining parts or provisions
not otherwise affected shall remain in force and effect.

Section 31. Effectivity. - This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,