HOUSE REPRESENTATIVES

RECEIVED
REPUBLIC OF THE PHILIPPINES |
HOUSE OF REPRESENTATIVES
Quezon City TN,
SEVENTEENTH CoNGREsS |p" |
First Regular Session eee |
BILLS AND wNDEX SERVICE

House Bill No. 1143

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘An excellent defense and security procurement is one which is subject to a regulatory regime that
acknowledges its specificities and tries to strike a balance between: openness and transparency of
the procurement process, on the one hand, and protection of the core security concerns of the
procuring state, on the other.' The country’s current procurement procedures, insofar as the
acquisition of major defense materiel and equipment is concerned, however, still run counter to
the aforesaid ideal, While transparency is encouraged for procurement of public goods, the
procurement of major defense materiel involves higher level of risks, hence, requires further
layer of protection from possible security threats.

It is in this light that this measure seeks to allow negotiated procurement for major defense
equipment or materiel, in cases wherein domestic vendors are not available, and in view of
certain defense strategic considerations, as deemed appropriate and urgent by the Secretary of
National Defense. Said strategic considerations include the assurance of purchasing tools from
allies with similar global interests or those with existing defense agreements with the
government, and of the stable and seamless acquisition, maintenance and repair of the equipment
or parts thereof.

Confidentiality in the procurement may also be a warranted consideration in the instances where
the undue disclosure of the nature and specifications of major defense equipment is deemed to
have serious implications on their relevance and effectiveness, thereby compromising the
country’s security.

To prevent the potential abuse of discretion on the exemption from public bidding, the bill
provides for a formal institutional check and balance, by securing the prior consent and approval
of the President, with the concurrence of both chairmen of the defense committees of both
houses of Congress. This requirement shall help ensure that decisions under this procurement
mechanism are clearly geared towards established defense policy goals, and shall insure that
scarce public funds are, indeed, judiciously spent.

In view of the foregoing, immediate enactment of this measure is earnestly sought.

* information accessed from hitp://www.oeed uiblication ‘on 8/30/2013,


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 1143

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
AMENDING SECTION 53 OF REPUBLIC ACT NO, 9184, OTHERWISE KNOWN AS.
THE “GOVERNMENT PROCUREMENT REFORM ACT”, AND FOR OTHER
PURPOSES

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

SECTION 1. Section 53 of Republic Act No. 9184, otherwise known as “Government

Procurement Reform Act”, is hereby amended by adding a new subsection (f), to read as follows:

“Sec. 53. Negotiated Procurement - Negotiated

procurement shall be allowed in the following instances:

a) x x x
box x x
x x x

ad ox x x

ae) x x x

F) IN THE CASE OF PROCUREMENT FOR
THE USE BY THE ARMED FORCES OF THE
PHILIPPINES (AFP) INVOLVING MAJOR DEFENSE
EQUIPMENT AND MATERIEL, WHEN THE CAPABILITY

REQUIRED IS NOT AVAILABLE LOCALLY AND WHEN


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THE SECRETARY OF NATIONAL DEFENSE HAS
DETERMINED THAT IN VIEW OF SECURITY AND
OTHER STRATEGIC CONSIDERATIONS, INCLUDING
CONFIDENTIALITY, INTEROPERABILITY, AND/OR
THE EXISTENSE DEFENSE PARTNERSHIPS, THE
PROCUREMENT BY THE AFP OF THE
ABOVEMENTIONED EQUIPMENT SHOULD BE
EXEMPTED FROM THE REQUIREMENT OF PUBLIC
BIDDING UNDER THIS ACT: PROVIDED THAT, SAID
DETERMINATION IS SUPPORTED BY THE APPROVAL
BY THE PRESIDENT AND CONCURRED IN BY BOTH
CHAIRMEN OF THE NATIONAL DEFENSE AND
SECURITY COMMITTEES OF THE SENATE AND THE
HOUSE OF REPRESENTATIVES, PROVIDED, FURTHER,
THAT THE PERFORMANCE BY THE SUPPLIER OF ITS
OBLIGATIONS UNDER THE PROCUREMENT
CONTRACT SHALL BE COVERED BY SECTION 39 OF
THIS ACT: PROVIDED, FINALLY 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.

SECTION 2. Repealing Clause. - All laws, executive orders, rules and regulations

inconsistent with or contrary to this Act are hereby deemed accordingly repealed or amended.


2, SECTION 3. Effectivity Clause, - This Act shall take effect fifteen (15) days after its

2 publication in the Official Gazette or in at least two (2) newspapers of national circulation.

Approved,