Question & AnswerQ&A (MEMORANDUM ORDER NO. 195)
Republic Act No. 9184 is known as the Government Procurement Reform Act, which was signed into law on January 10, 2003, governing procurement processes in the Philippine government.
The Secretary of National Defense is authorized to negotiate directly for the procurement of major defense equipment for the AFP, subject to prior approval by the President of the Philippines.
Direct negotiation can occur when the Philippines has entered into a defense cooperation agreement or maintains diplomatic relations with that country, and the Secretary determines that the interests of the country shall be protected.
The amendment allows negotiated procurement not only for major defense equipment but also for defense-related consultancy services and related services when the required expertise or capability is not available locally.
The President must give prior approval for negotiated procurement involving major defense equipment and/or defense-related consultancy services for the AFP.
There must be a foreign government guarantee from the source country covering 100% of the contract price.
The Government Procurement Policy Board (GPPB) adopted and endorsed the amendment through Resolution No. 15-2005 dated August 5, 2005.
The Supreme Court declared the joint participation of the Congressional Oversight Committee unconstitutional in Macalintal vs. Comelec, G. R. No. 157013, July 2003.
Yes, the memorandum order took effect immediately upon its publication in a national newspaper of general circulation.
The AFP Modernization Program and the Philippine Defense Reform require negotiated procurement for effective implementation.