Title
AFP Modernization Program Amendments
Law
Republic Act No. 10349
Decision Date
Dec 11, 2012
The Amendments to Republic Act No. 7898, also known as the AFP Modernization Act, are outlined in Republic Act No. 10349, which details the components and implementation of the Revised AFP Modernization Program, including the development of capabilities, acquisition of equipment, human resource development, and modernization planning and procurement process.

Human Resource Development Objectives

  • The program aims to transform the AFP into a multi-mission oriented force adept at addressing both internal and external security threats.
  • The development of human resources aligns with the goals of building capacity and capability to meet evolving security demands.

Doctrines Development and Implementation

  • The Department of National Defense and AFP are tasked with generating, evaluating, and formalizing military doctrines.
  • Periodic review and validation of doctrines through field exercises and dissemination at all command levels are mandated.
  • The Secretary of National Defense is responsible for formulating implementation guidelines for doctrines.

Implementation Period

  • The Revised Program is to be implemented over 15 years from the Act's approval date.
  • Payments for outstanding multi-year contracts may extend beyond the 15-year implementation period.

Submission and Content of Modernization Program to Congress

  • Within 60 days of effectivity, the President must submit the program to Congress, upon recommendation by the Secretaries of National Defense and Budget and Management.
  • The submission must detail AFP size and composition, modernization projects by service branch, infrastructure plans, and project priorities, schedules, and estimated costs.
  • Emphasis is placed on equipment acquisition geared towards developing capabilities to address internal and external threats.
  • The submitted program serves as the basis for executive and legislative actions annually until full realization.

Appropriations and Budgeting

  • Annual appropriations for the program must cover all projects submitted to Congress.
  • Program funds are treated as a distinct budget item separate from DND and AFP regular appropriations.
  • The first five years are funded with at least ₱75 billion.

Multi-year Contract Appropriations and Oversight

  • Congress shall appropriate funds for multi-year contracts following issuance of obligational authority by the DBM.
  • The DND and DBM must issue guidelines ensuring multi-year contracts comply with the program and existing contracting rules.
  • Copies of multi-year contracts must be submitted to the relevant Congressional committees for oversight.

Creation and Funding of the Revised AFP Modernization Act Trust Fund

  • A trust fund is established exclusively for the modernization program and related procurement expenses, excluding salaries and allowances.
  • Funding sources include appropriations, proceeds from sale and lease of military reservations, public-private partnerships, Government Arsenal sales, disposal of excess assets, budget surplus, donations, and interest income.
  • Funds from all sources are deposited into a special account in the general fund designated for the program.

Tax Exemptions on Acquisitions

  • Equipment and materials imported for the program are exempt from value-added tax and customs duties.

Congressional Oversight Committee

  • A committee composed of six members from each legislative chamber is created to monitor and oversee implementation.
  • The committee includes chairpersons of National Defense and Security Committees from both houses as joint chairs.
  • Minority representation includes at least two members from each chamber.

Sunset Review Provision

  • The oversight committee will conduct a systematic evaluation or "sunset review" of the Act within five years or as needed.
  • The review assesses accomplishments, impact, agency performance, and structure to recommend possible remedial legislation.

Repealing, Separability, and Effectivity Clauses

  • Laws, orders, and regulations conflicting with the Act are repealed or amended accordingly.
  • If a provision is declared invalid, other sections remain in effect.
  • The Act takes effect 15 days after publication in at least two national newspapers.

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