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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'13 
SEP 16 P 3 :06 
SENATE 
S. No. 
1657 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
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. I 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 selious 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 ofthe foregoing, immediate enactment ofthis measure is earnestly sought. 
~~~ANESIV 
Senator 
1 Information accessed from http·/lwww.oecd.org(slte/sigma/publicabousdocuments/4910Z6lO.pdf on 8/30/2013. 
1 


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{~Hl;r of ttl!':in rrtnr~ 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 16 P 3 :06 
SENATE 
, 
S. No. 
1657 
HECEivt,jl \)):. f· 
Introduced by Sen. Antonio "Sonny" F. Trillanes IV 
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: 
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SECTION 1. Section 53 of Republic Act No. 9184, otherwise known as "Government 
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Procurement Reform Act", is hereby amended by adding a new subsection (f), to read as follows: 
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"Sec. 53. Negotiated Procurement - Negotiated 
procurement shall be allowed in the following instances: 
a) 
x 
x 
x 
b) 
x 
x 
x 
c) 
x 
x 
x 
d) 
x 
x 
x 
e) 
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 
THE SECRETARY OF NATIONAL 
DEFENSE 
HAS 
DETERMINED THAT IN VIEW OF SECURITY AND 
OTHER STRATEGIC CONSIDERATIONS, INCLUDING 
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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 LOCALL Y AVAILABLE. 
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SECTION 2. Repealing Clause. - All laws, executive orders, rules and regulations 
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inconsistent with or contrary to this Act are hereby deemed accordingly repealed or amended. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in at least two (2) newspapers of national circulation. 
Approved, 
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