Extension of Negotiated Procurement Scope
- The amendment allows negotiated procurement not only for major defense equipment but also for related services and defense-related consultancy services.
- This extension applies when the required expertise or capability is not available locally.
- This change supports the effective implementation of priority programs such as the AFP Modernization Program and Philippine Defense Reform.
Conditions and Safeguards for Negotiated Procurement
- Negotiations must be conducted directly with an agency or instrumentality of a foreign country that has a defense cooperation agreement or maintains diplomatic relations with the Philippines.
- Procurement contracts must be secured by a foreign government guarantee from the source country.
- The guarantee must cover one hundred percent (100%) of the contract price to ensure supplier performance and fulfillment of obligations.
Legal and Procedural Context
- The Government Procurement Policy Board (GPPB) adopted and endorsed the amendment for Presidential approval.
- The amendment was necessitated by the Supreme Court ruling in Macalintal vs. Comelec, which declared the joint participation of the Congressional Oversight Committee in IRR formulation unconstitutional.
- Consequently, the GPPB has the authority to recommend amendments to the IRR-A directly to the President.
Effectivity and Implementation
- The amendment becomes effective immediately upon its publication in a national newspaper of general circulation.
- All other provisions of the IRR-A of RA 9184 remain unchanged and continue to apply.