Title
Amendment to Defense Contracting Rules
Law
Presidential Decree No. 1081
Decision Date
Feb 1, 1977
Presidential Decree No. 1081 authorizes the Secretary of National Defense to enter into defense contracts for the manufacture or procurement of supplies and equipment needed for national defense, overriding previous laws and regulations.
A

Terms and Conditions of Contracts

  • Terms and conditions of such contracts are subject to mutual agreement between the Secretary and the contracting parties.
  • Public bidding is not mandatory, allowing flexibility in contractor selection under the program.

Utilization of Bank Guarantee Deposits and Accrued Interests

  • Accrued interests of Bank Guarantee Deposits made with Philippine Veterans Bank (PVB), Philippine National Bank (PNB), or any authorized banking institution, in favor of SRDP defense contractors, will automatically revert to SRDP funds.
  • These funds are to be utilized solely within the Self-Reliant Defense Program.

Program of Expenditure and Accountability

  • A detailed Program of Expenditure must be submitted to and approved by the Secretary of National Defense before utilization of funds.
  • All accounts and expenditures must be properly accounted for and reported to the Budget Commission and the Commission on Audit.

Supersession of Conflicting Laws

  • The decree explicitly states that any other law conflicting with these provisions, including Section 607 of the Revised Administrative Code, Commonwealth Act No. 541, Act No. 4239, Republic Act No. 5183, and other related laws, shall be notwithstanding and thus overridden by this decree.

Effectivity Clause

  • The decree takes effect immediately upon signing on February 1, 1977.

Legal and Administrative Context

  • The decree amends Presidential Decree No. 415 dated March 19, 1974.
  • It further strengthens the authority and framework for implementing the Self-Reliant Defense Program as approved by the President.
  • It ensures streamlined contracting processes with flexibility and accountability to promote national defense self-reliance.

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