Guidelines for Revised AFP Modernization Act

Implementing Guidelines, Rules and Regulations (IGRRs) govern all programs under the Revised AFP Modernization Act.
Trust Fund administration governed in Chapter 8.
Adoption of functions and responsibilities outlined in DND Circular No. 11, including Defense Strategic Planning System and Defense Acquisition System.

Defines key terms such as AFP, Revised AFP Modernization Act, Trust Fund, Program, DND, Doctrine, Equipment, Government Arsenal, Major Equipment or Weapons System, Manufacturer, Secretary of National Defense (SND), Upgrade, Weapons System, Budget, Capability, Defense Acquisition System (DAS), Acquisition Planning and Procurement, Defense System of Management (DSOM), Force, Life Cycle Cost, Resource Manager (RM).

RA 9184 (Government Procurement Reform Act) and IRRs are suppletory to IGRRs.
Other applicable laws include RA 7227, Executive Order No. 303, DND Circular No. 11.

Develop AFP into a compact, efficient, responsive, capable force for conventional/unconventional warfare and disaster relief.
Integrate reserve forces into overall structure, enhancing citizen's army concept.
Continuous assessment to maintain responsiveness.

Acquisition guided by modernization objectives and DSOM.
Procurement synchronized with phasing out obsolete equipment.
Purchases only of equipment used by armed forces in country of origin or by at least two countries.
Suppliers must be manufacturers with after-sales and spare parts support.
Develop air, naval, ground defense, and general headquarters capabilities.
Procurement under a two-phase Defense Acquisition System (First Pass and Second Pass evaluations).
Competitive bidding is default; exceptions allowed under law.

Single BAC established; separate BACs allowed based on procurement complexity.
BAC composed of at least 5 to 7 members with procurement expertise.
Chairman is a senior official; includes legal, finance, technical, and end-user representatives.
Membership appointed by SND or Chief of Staff, AFP.
BAC functions include advertising bids, eligibility screening, bid evaluation, post-qualification, recommending awards and sanctions, and possibly utilizing Technical Working Groups.
BAC ensures compliance with RA 9184 and submits semi-annual procurement monitoring reports.
Quorum requires majority with Chairman or Vice-Chairman.

BAC must invite non-voting observers from private sector and NGOs to enhance transparency.
Observers must have relevant knowledge, no conflict of interest, and be duly registered.
Observers submit reports assessing BAC compliance, notifying potential conflicts.
Observers may access procurement documents with confidentiality.

Secretariat established to support BAC with administrative, documentation, procurement management, and communication functions.
Secretariat head must be a permanent employee with procurement proficiency.
BAC members must prioritize procurement duties.

Preference for Filipino contractors or foreign suppliers with local production.
Contracts may include foreign exchange reduction schemes such as counter-trade and co-production.
Technology transfer and AFP personnel training mandated.
Defense technology research office can be established for industry development.

Development of permanent bases for land, air, naval forces, radar systems, consistent with AFP Strategic Basing Plan.
Basing requirements aligned with defense strategy and socio-economic goals.
Provision for AFP units relocation, training grounds, and efficient use of facilities.

Objectives include strengthening patriotism, developing multi-mission force, citizen-based force, environmental roles, peacekeeping, professionalizing AFP, and improving soldiers’ quality of life.

DND and AFP to generate, review, consolidate, and institutionalize doctrines.
Shift from militaristic to people-centered security strategy.
Doctrine development to support modernization components and build joint force culture.
Continuous evaluation and validation through training and exercises.

GA to be modernized to manufacture basic weapons, ammo for AFP and other government forces.
Authorized to sell and export excess products; proceeds fund modernization trust fund.
Utilize joint ventures and conduct defense R&D under Self-Reliant Defense Posture.

Fund sources include appropriations, proceeds from sale/lease of military reservations, sales of GA products, donations, and interest income.
Fund used exclusively for modernization program expenses, excluding salaries.
Managed by Secretary of National Defense in accordance with government auditing rules.
Multi-year contracts allowed with Congressional oversight.

Secretary of National Defense administers program through AFP Chief of Staff.
Annual and quarterly reports on fund status and modernization progress submitted to President and Congress.
Exemption from VAT and customs duties for AFP weapons and equipment procurement.

Secretary may recommend to President modifications for unforeseen national security emergencies.
Congress to be notified within 30 days.

Separability clause ensures unaffected provisions remain valid if some declared invalid.
Repeals prior inconsistent issuances.
Rules take effect 15 days after publication.