Question & AnswerQ&A (DND DEPARTMENT CIRCULAR NO. 03, S. 2013)
The State's primary policy under the Revised AFP Modernization Act is to modernize the Armed Forces of the Philippines (AFP) to effectively and fully perform its constitutional mandate to uphold sovereignty and preserve the patrimony of the Republic of the Philippines.
The main objectives are: (a) develop AFP capability to uphold sovereignty and territorial integrity, (b) assist civilian agencies in national patrimony preservation, (c) protect the people from armed threats and disasters, (d) assist other agencies in enforcing policies and international covenants, (e) enhance Internal Security Operations capability, (f) fulfill international commitments, (g) support national development, and (h) transform AFP into a multi-mission oriented force.
The components are: (a) Force Restructuring and Organization Development; (b) Capability, Materiel, and Technology Development; (c) Bases/Support System Development; (d) Human Resource Development; and (e) Doctrines Development.
The program is implemented over a period of fifteen (15) years from 2013, with possible extension of payments for multi-year contract obligations beyond this period.
The core security concerns are challenges to territorial integrity, maritime security, natural disasters, internal security, and cyber security.
The strategic objectives include maintaining sovereignty and territorial integrity, achieving internal peace and security, supporting national development and disaster management, contributing to regional/international peace and stability, and pursuing AFP transformation.
The BAC is responsible for advertising invitations to bid, conducting conferences, determining bidder eligibility, receiving and evaluating bids, recommending awards and sanctions, ensuring compliance with procurement laws, and managing the procurement process transparently and efficiently.
BAC members must be of unquestionable integrity and procurement proficiency, including a chairman who is at least a third-ranking permanent official of DND or AFP, members representing legal, administrative, and finance areas, with provisional members having technical expertise related to the procurement.
Sources include: appropriations for the program; proceeds from sale, lease, or joint development of military reservations; proceeds from Government Arsenal sales; disposal of excess AFP equipment; budgetary surpluses as authorized; donations from local and foreign sources; and interest income of the trust fund.
Sales of weapons, equipment, and ammunitions directly and exclusively used for the AFP's modernization projects are exempt from VAT, and their importation by the AFP is also exempt from VAT and customs duties.