Establishment and operation of govt arsenal

The Secretary of National Defense exercises supervision and control over the Government arsenal.
The Secretary of National Defense is authorized to establish, operate, and maintain a Government arsenal and accessory plants for continued and efficient operation.
The Secretary of National Defense authorizes the arsenal to undertake design, research, development of production technique, manufacture, and repair of:
- small arms, mortars, and other weapons, and
- ammunition for these weapons, and
- other munitions.
The law creates in the Department of National Defense an Office of the Undersecretary of Defense for Munitions.
The Undersecretary of Defense for Munitions advises the Secretary of National Defense on matters of design, development, manufacture, procurement, stockpiling, and allocation of small arms, mortars, other weapons, ammunition, and other munitions.
The Undersecretary must recommend policies, rules and regulations for the efficient operation, maintenance, and security of the Government arsenal.
The Undersecretary must devise ways and means for the efficient mobilization of civilian industry to augment the Government arsenal’s production in an emergency.

The Undersecretary of Defense for Munitions is appointed by the President of the Philippines with the consent of the Commission on Appointments.
The Undersecretary receives annual compensation of nine thousand pesos (PHP 9,000).
The Office may have the number of military and civilian personnel that the Undersecretary deems necessary, subject to the approval of the Secretary of National Defense.
Personnel are to be obtained by detail, whenever possible, from the Armed Forces of the Philippines.
No person may be appointed Undersecretary of Defense for Munitions unless the person is:
- a natural born citizen of the Philippines; and
- has technical education; and
- has at least five (5) years of experience in munitions.

All small arms ammunition plants and other plants established under the law must be located and constructed at places that are suitable and consistent with:
- the safety of communities adjacent to the plants; and
- the requirements of security; and
- the principles of modern warfare.

The law authorizes appropriation from funds in the National Treasury not otherwise appropriated for initial implementation for three (3) fiscal years.
The authorized amount is five million six hundred forty-five thousand one hundred ninety-three pesos (P5,645,193.00).
The law imposes spending limits within the authorized amount:
- not more than two hundred thousand pesos (P200,000.00) may be spent for overhead expenses; and
- not more than three million three hundred fifty-seven thousand pesos (P3,357,000.00) may be spent for fixed assets; and
- not more than two million eighty-seven thousand seven hundred forty-five pesos (P2,087,745.00) may be spent for working capital.