S' . '■
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE 
S. No. 1830
DATE
TH.lE
INDEX
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
TO PURSUE THE ARMED FORCES OF THE PHILIPPINES MODERNIZATION 
PROGRAM, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT
EXPLANATORY NOTE
In line with the Philippine Development Plan 2017-2022 Strategic Framework 
to Ensure Security, Public Order, and Safety, which among others, aims to pursue and 
sustain programs for the modernization of the Armed Forces of the Philippines (AFP) 
and to enhance the capability of military, police, and other law enforcement units to 
address the internal security threats posed by local and transnational terrorists and 
criminal groups, and new and emerging security threats, the government proposes a 
specialized procurement process for defense assets.
Prior to this, the AFP leadership had already asked Congress to introduce 
amendments to the stringent requirements of the Government Procurement Reform 
Act to address the unique needs and demands of purchasing defense equipment and 
services, such as the need for confidentiality and reasonable extension on time frames 
with respect to supplies sourced overseas.
Recently, the Commission on Audit (COA) called out the AFP for delays and 
inefficiencies over the implementation of the AFP Modernization Program. Several 
projects were not completed within the specific contract time, suspended or 
terminated.
This biil seeks to provide the necessary authority, opportunity and flexibility for 
the Department of National Defense and the AFP leadership to fast track its


implementation of the long-delayed modernization program. While this measure 
provides an expeditious and specialized procurement for the defense sector, it is still 
anchored on the basic principles of quality and reliability of purchases, and 
accountability and integrity.
It is hoped that with the help of this bill, significant gains will be accomplished 
in fully realizing the objectives of the AFP Modernization Program, particularly the 
development of a self-reliant and credible strategic armed force, such that it can fully 
perform its mandate to uphold the sovereignty and territorial integrity of the Republic 
and to secure the national territory from all forms of intrusion and encroachment.
In this light, the immediate passage of this bill is highly recommended.
RAMOpK^^^^EmLA,
JR.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE 
S. No. 1830
Da tie 
T».1E
NDEX
Introduced by SENATOR RAMON BONG REVILLA, 3R.
AN ACT
TO PURSUE THE ARMED FORCES OF THE PHILIPPINES MODERNIZATION 
PROGRAM, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT
Be it enacted by the Senate and House of Representative of the Philippines in Congress 
assembled:
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Section 1. Section 4 (Scope and Application), Article I of Republic Act No. 9184,
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otherwise known as the Government Procurement Reform Act, is hereby amended to
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read as follows:
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'Sec. 4. Scope and Application. - This Act shall apply to the
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Procurement of Infrastructure Projects, Goods, and Consulting Services,
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regardless of source of funds, whether local or foreign, by all branches and
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instrumentalities of government, its departments, offices and agencies,
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including government-owned and/or -controlled corporations and local
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government units, subject to the provisions of Commonwealth Act No. 138.
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IN THE INTEREST OF NATIONAL SECURITY, THE SECRETARY OF
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NATIONAL DEFENSE MAY PRESCRIBE RULES AND STANDARDS
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IN ACCORDANCE WITH THE PERTINENT PROVISIONS OF THIS
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ACT TO GOVERN THE PROCUREMENT OF DEFENSE ARTICLES,
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SERVICES, AND INFRASTRUCTURES, AND TO ENHANCE THE
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NATIONAL DEFENSE PROGRAM OF THE GOVERNMENT. Any treaty


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or international or executive agreement affecting the subject matter of this 
Act to which the Philippine government is a signatory shall LIKEWISE be 
observed."
Sec. 2. Section 5 (Definition of Terms), Article I of the same Act is hereby 
amended to read as follows:
"Sec. 5(k). Infrastructure Projects - include the construction, 
improvement, rehabilitation, demolition, repair, restoration or 
maintenance of roads and bridges, railways, airports, seaports, 
communication facilities, civil works components of information 
technology projects AND SHIP-BUILDING PROJECTS AND THE 
REPAIR, RESTORATION AND MAINTENANCE OF MILITARY 
SHIPS, AIRCRAFT AND OTHER MAJOR MILITARY EQUIPMENT, 
irrigation, flood control and drainage, water supply, sanitation, sewerage 
and solid waste management systems, shore protection, energy/power 
and electrification facilities, national buildings, school buildings, hospital 
buildings and other related construction projects of the government."
Sec. 3. Section 10 (Competitive Bidding), Article IV of the same Act is hereby 
amended to read as follows:
"Sec. 10. Competitive Bidding. - All procurement shall be done 
through Competitive Bidding, except as provided for in Article XVI of this
Act. HOWEVER, IN FURTHERANCE OF THE AFP MODERNIZATION 
PROGRAM PURSUANT TO REPUBLIC ACT NO. 7898, AS 
AMENDED, AND WHEN THE PROCUREMENT INVOLVES 
NATIONAL SECURITY INTEREST, THE SECRETARY OF NATIONAL 
DEFENSE, UPON APPROVAL OF THE PRESIDENT, MAY PRESCRIBE 
ANY OF THE METHODS OF PROCUREMENT PROVIDED FOR IN 
ARTICLE XVI, AS MAY BE APPLICABLE FOR THE PROCUREMENT 
OR DEVELOPMENT OF DEFENSE ARTICLES, SERVICES, AND


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INFRASTRUCTURES, WITHOUT RESORTING TO COMPETITIVE 
BIDDING."
Sec. 4. Section 18 (Reference to Brand Names), Article VI of the same Act is 
hereby amended to read as follows:
"Sec. 18. Reference to Brand Names. - Specifications for the 
Procurement of Goods shall be based on relevant characteristics and/or 
performance requirements. Reference to brand names shall not be allowed
[.] EXCEPT AS MAY BE OTHERWISE PROVIDED FOR IN THIS ACT."
Sec. 5. Section 43 (Procurement of Domestic and Foreign Goods), Article XII of 
the same Act is hereby amended to read as follows:
"Sec. 43. Procurement of Domestic and Foreign Goods. - Consistent 
with the country's obligations under international treaties or agreements. 
Goods may be obtained from domestic or foreign sources and the 
procurement thereof shall be open to all eligible suppliers, manufacturers 
and distributors. HOWEVER, IN THE INTEREST OF NATIONAL 
SECURITY AND TO ENSURE HIGH-QUALITY DEFENSE ITEMS, THE 
SECRETARY OF NATIONAL DEFENSE, UPON APPROVAL OF THE 
PRESIDENT, MAY LIMIT THE PROCUREMENT OF DEFENSE 
ARTICLES FROM KNOWN DIRECT MANUFACTURERS OF THE 
ITEMS. [However] FURTHER, in the interest of availability, efficiency, 
and timely delivery of Goods, the Procuring Entity may give preference to 
the purchase of domestically-produced and manufactured goods, supplies, 
and materials that meet the specified or desired quality."
Sec. 6. The last paragraph of Section 48 (Alternative Methods), Article XVI of 
the same Act is hereby amended to read as follows:
"In all instances NOT INVOLVING THE PROCUREMENT OF 
DEFENSE ARTICLES, SERVICES, AND INFRASTRUCTURES, the


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Procuring Entity shall ensure that the most advantageous price for the 
government is obtained. IN THE PROCUREMENT OF DEFENSE 
ARTICLES, SERVICES AND INFRASTRUCTURE, THE SECRETARY 
OF NATIONAL DEFENSE SHALL ENSURE THAT THE NATIONAL 
SECURITY INTEREST IS PROTECTED IN TERMS OF EFFICIENCY, 
ECONOMY AND QUALITY OF THE DEFENSE ITEMS TO BE 
PROCURED."
Sec. 7. Section 49 (Limited Source Bidding), Article XVI of the same Act is 
hereby amended, by adding new provisions which shall read as follows:
XXC) PROCUREMENT OF DEFENSE ARTICLES WHERE IT IS 
DEEMED OF NATIONAL SECURITY INTEREST AS DETERMINED BY 
THE SECRETARY OF NATIONAL DEFENSE AND APPROVED BY THE 
PRESIDENT, TO LIMIT THE BIDDING TO KNOWN LEGITIMATE 
BIDDERS AND SUPPLIERS OF DEFENSE ARTICLES IN ORDER TO 
OBTAIN AND MAINTAIN THE DESIRED STANDARDIZATION AND 
INTEROPERABILITY OF MILITARY ARTICLES INVENTORY, AND 
TO PROTECT THE PROCUREMENT OF DEFENSE ARTICLES 
AGAINST UNSCRUPULOUS SUPPLIERS.
(D) THE GOVERNMENT PROCUREMENT POLICY BOARD SHALL 
DESIGNATE THE RELEVANT GOVERNMENT AUTHORITY THAT 
SHALL FORMULATE AND MAINTAIN THE LIST OF PRE-SELECTED 
SUPPLIERS OR CONSULTANTS WITH KNOWN EXPERIENCE AND 
PROVEN CAPABILITY IN THE REQUIREMENT FOR A PARTICULAR 
PROCUREMENT CONTRACT."
Sec. 8. Section 50. (Direct Contracting), Article XVI of the same Act Is hereby 
amended, by adding a new provision which shall read as follows:
"(D). SUBSEQUENT PROCUREMENT OF THE SAME TYPE OR 
MODEL OF DEFENSE ARTICLES, SUBJECT TO THE FOLLOWING 
CONDITIONS:


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1) THE DEFENSE ITEMS SHALL BE OF UNIFORM, INTER-
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OPERABLE AND COMPATIBLE, AND HAVE THE SAME
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OR BETTER PERFORMANCE CHARACTERISTICS WITH
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THE SIMILAR TYPES OR MODELS OF DEFENSE ITEMS
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CURRENTLY IN USE BY THE ARMED FORCES OF THE
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PHILIPPINES;
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2) THE SUBSEQUENT PROCUREMENT WAS PREVIOUSLY
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PROGRAMMED OR PLANNED FOR BUT NOT EFFECTED
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DUE TO RESOURCE CONSTRAINTS AND OTHER
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REASONABLE CAUSES; AND
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3) THE ORIGINAL PROCUREMENT OF THE SAME TYPE OR
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MODEL OF THE DEFENSE ITEM WAS UNDERTAKEN
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THROUGH THE LEGITIMATE PROCESS PRESCRIBED
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UNDER THIS ACT, AND THAT SIMILAR TERMS AND
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CONDITIONS, OR BETTER, ARE OBTAINED, EXCEPT
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FOR CHANGES THEREOF FOR 
REASONS 
OF
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IMPROVEMENT OR UPGRADE, 'FORCE MAJEURE' OR
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SUCH OTHER CAUSES AS THE 
SECRETARY 
OF
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NATIONAL DEFENSE MAY DEEM ACCEPTABLE."
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Sec. 9. Section 51(c) (Repeat Order), Article XVI of the same Act is hereby
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amended to read as follows:
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"Sec. 51(c) Except in special circumstances defined in the IRR, the
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repeat order shall be availed of only within six (6) months from the date
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of the Notice to Proceed arising from the original contract [; and,]. IN
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THE CASE OF PROCUREMENT OF DEFENSE ARTICLES, SERVICES
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AND INFRASTRUCTURES, A REPEAT ORDER NOT EXCEEDING
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FIFTY PERCENTUM (50%) OF THE ORIGINAL CONTRACT VALUE
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MAY BE AVAILED OF WITHIN ONE (1) YEAR FROM THE DATE OF
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THE LAST DELIVERY OF THE DEFENSE ARTICLES, SERVICES, AND
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INFRASTRUCTURE ARISING FROM THE SAID CONTRACT."


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Sec. 10. Section 53 (Negotiated Procurement), Article XVI of the same Act is 
hereby amended, by adding new provisions which shall read as follows:
”(F) WHEN THE PRESIDENT, AS COMMANDER-IN-CHIEF, CALLS 
UPON THE ARMED FORCES OF THE PHILIPPINES, TO SUPPRESS 
LAWLESS VIOLENCE, INVASION OR REBELLION, OR THE 
IMMINENT DANGER THEREOF, OR IN TIME OF EMERGENCY AS 
MAY BE DECLARED BY THE PRESIDENT OR CONGRESS, AND FOR 
THE DURATION OF SUCH LAWLESS VIOLENCE, INVASION, 
REBELLION OR EMERGENCY, OR TO ATTAIN OR UNDERTAKE 
PROJECTS FOR SPECIFIC NATIONAL SECURITY OBJECTIVES.
(G) IN THE CASE OF PROCUREMENT INVOLVING MAJOR 
DEFENSE EQUIPMENT AND MATERIEL, WHEN THE CAPABILITY 
REQUIRED IS NOT AVAILABLE LOCALLY AND WHEN THE 
SECRETARY OF NATIONAL DEFENSE, UPON APPROVAL OF THE 
PRESIDENT, HAS DETERMINED THAT IN VIEW OF SECURITY AND 
OTHER STRATEGIC CONSIDERATIONS, INCLUDING 
CONFIDENTIALITY, INTEROPERABILITY, AND/OR THE 
EXISTENCE OF DEFENSE PARTNERSHIPS, THE PROCUREMENT OF 
THE ABOVEMENTIONED EQUIPMENT SHOULD BE EXEMPTED 
FROM THE REQUIREMENT OF PUBLIC BIDDING UNDER THIS 
ACT; PROVIDED, THAT THE PERFORMANCE BY THE SUPPLIER OF 
ITS OBLIGATIONS UNDER THE PROCUREMENT CONTRACT SHALL 
BE COVERED BY SECTION 39 OF THIS ACT: PROVIDED, FURTHER 
THAT MAJOR DEFENSE EQUIPMENT AND MATERIEL SHALL REFER 
TO AIRCRAFT, VESSELS, TANKS, ARMORED VEHICLES, HIGH 
TECH COMMUNICATION EQUIPMENT, RADAR SYSTEMS, 
SOPHISTICATED WEAPONS SYSTEMS AND HIGH-POWERED 
FIREARMS NOT OTHERWISE LOCALLY AVAILABLE.


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Sec. 11. Separability Clause. - If any provision or part hereof is heid invaiid or 
unconstitutional, the remainder of the law or the provision or part not otherwise 
affected shali remain vaiid and subsisting.
Sec. 12. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule, or regulation contrary to or 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended 
accordingly.
Sec. 13. Effectivity. - This Act shaii take effect fifteen (15) days after its 
publication in the Official Gazette ov in a newspaper of general circulation.
Approved,