Title
AFP Modernization Program Amendment
Law
Republic Act No. 10349
Decision Date
Dec 11, 2012
The Revised AFP Modernization Program establishes a comprehensive 15-year plan to enhance the capabilities, technology, and human resources of the Armed Forces of the Philippines, ensuring effective responses to internal and external security threats through strategic acquisitions and development initiatives.
revised afp
modernization
military law

Statutory coverage and amendments made

  • Republic Act No. 10349 amends Republic Act No. 7898 (the Revised AFP Modernization Program law).
  • Section 1 amends Section 4(b), (d), and (e) of Republic Act No. 7898 (Section 1).
  • Section 2 amends Section 6 of Republic Act No. 7898 (Section 2).
  • Section 3 amends Section 7 of Republic Act No. 7898 (Section 3).
  • Sections 4–5 amend Section 8 and Section 9(b)–(c) of Republic Act No. 7898 (Sections 4–5).
  • Section 6 amends Section 11 of Republic Act No. 7898 by revising the Revised AFP Modernization Act Trust Fund (Section 6).
  • Section 10 creates Section 18 (Congressional Oversight Committee) and Section 19 (Sunset Review) (Sections 10 and 19).
  • Section 11 amends and renumbers all sections of Republic Act No. 7898 accordingly (Section 11).
  • Section 12 provides a repealing clause for inconsistent laws (Section 12).
  • Section 13 provides a separability clause (Section 13).

Program component rules (Section 4)

  • Section 4(b) requires that capability, materiel, and technology development address assessed threats through modernization objectives (Section 4(b)).
  • For equipment and materiel acquisitions, purchases must be made in accordance with the AFP’s need to develop capabilities pursuant to modernization objectives (Section 4(b)).
  • Section 4(b) mandates that acquisition of new equipment and weapons systems must be synchronized with the phase-out of uneconomical and obsolete major equipment and weapons systems in the AFP inventory (Section 4(b)).
  • Section 4(b) prohibits purchasing any major equipment and weapons system that is not used by the armed forces of the country of origin or not used by the armed forces of at least two (2) countries (Section 4(b)).
  • Section 4(b) limits participation to suppliers who are themselves the manufacturers, and only offers from such suppliers are entertained (Section 4(b)).
  • Section 4(b) prohibits entering into any supply contract unless it provides, in clear and unambiguous terms, (i) after-sales services and (ii) the availability of spare parts (Section 4(b)).
  • Section 4(d) sets human resource development objectives, including transforming the AFP into a multi-mission oriented force capable of effectively addressing internal and external security threats (Section 4(d)(2)).
  • Section 4(e) assigns to the Department of National Defense and the AFP responsibility for generation, evaluation, consolidation, formalization, periodic review and validation through field application/testing/exercises, and dissemination of approved doctrines at all levels of command (Section 4(e)).
  • The Secretary of National Defense must formulate guidelines to implement Section 4 consistent with the modernization program objectives enumerated in the preceding provisions (Section 4(e)).

Implementation period and payments

  • The Revised AFP Modernization Program under Republic Act No. 10349 must be implemented over fifteen (15) years, effective upon the date of the approval of the Act (Section 6).
  • Republic Act No. 10349 allows payments for amortization of outstanding multi-year contracts and obligations incurred under the Revised AFP Modernization Act to extend beyond the fifteen (15) year period (Section 6).

Presidential submission to Congress

  • Within sixty (60) days from the effectivity of Republic Act No. 10349, the President, upon recommendation of the Secretaries of National Defense and Budget and Management, must submit the Revised AFP Modernization Program to Congress (Section 7(a)).
  • The submitted program must show the size and shape of the AFP in terms of personnel, equipment, and facilities during various modernization phases (Section 7(a)(1)).
  • The submitted program must include modernization projects with details on:
    • major weapon and non-weapon equipment and technology acquisitions by AFP services/units;
    • major infrastructure construction or improvement; and
    • the particular objectives/components under Sections 3 and 4 to which each acquisition/construction/improvement belongs (Section 7(a)(2)).
  • The submitted program must include the priorities, schedules, and the estimated average cost of each modernization project or upgrading (Section 7(a)(3)).
  • In implementing the modernization program, acquisition and/or upgrading must be devoted toward shifting capability to meet internal and external threats (Section 7(a)).
  • The Revised AFP Modernization Program submitted to Congress must serve as the basis for subsequent executive and legislative actions to implement the program from year to year until complete and full realization (Section 7(b)).

Appropriations, budget treatment, minimum amount

  • Annual appropriations for the Revised AFP Modernization Program must include amounts necessary to support funding requirements for all modernization projects submitted to Congress (Section 8).
  • Funds appropriated under Republic Act No. 10349 must be treated as a distinct and separate budget item from the regular appropriation for the Department of National Defense (DND) and the AFP, and must be administered by the Secretary of National Defense (Section 8).
  • The Revised AFP Modernization Program must be based on at least Seventy-five billion pesos (P75,000,000,000.00) for the first five (5) years (Section 8).

Multi-year contracts and oversight reporting

  • For multi-year contracts, Congress must make the corresponding appropriation for ensuing fiscal years upon issuance of a multi-year obligational authority by the Department of Budget and Management (DBM) (Section 9(b)).
  • The DND and the DBM must issue implementing guidelines to ensure consistency with the Revised AFP Modernization Program and existing guidelines in contracting multi-year projects (Section 9(b)).
  • The Secretary of National Defense must submit to Congress, through the Chairpersons of the Senate Committees on National Defense and Security and Finance and the Chairpersons of the House Committees on National Defense and Security and Appropriations, copies of multi-year contracts and other agreements/arrangements to enable Congress to appropriate funds (Section 9(c)).

Revised AFP Modernization Trust Fund

  • A trust fund named the Revised AFP Modernization Act Trust Fund is created (Section 11).
  • The trust fund must be used exclusively for the AFP modernization program (Section 11).
  • The trust fund must cover necessary expenses to implement procurement, including expenses for pre-selection and post-qualification stages (Section 11).
  • The trust fund must not include salaries and allowances (Section 11).
  • The trust fund must be funded from:
    • appropriations for the Revised AFP Modernization Program (Section 11(a));
    • proceeds from the sale of military reservations authorized by Congress under existing laws and regulations, including immovable and other facilities, not otherwise covered by the Bases Conversion and Development Authority under Republic Act No. 7227, as amended (Section 11(b));
    • proceeds from lease or joint development of military reservations authorized by the President under existing laws and regulations, including immovables and other facilities not specifically enumerated under Republic Act No. 7227, as amended (Section 11(c));
    • shares of the AFP from the proceeds of the sale of military camps under Republic Act No. 7227, as amended, with at least fifty percent (50%) of proceeds, net of direct expenses authorized to be deducted from lease/joint venture agreements and other dispositions under applicable orders/rules/regulations/issuances (Section 11(d));
    • proceeds derived from public-private partnerships entered into by the DND or the AFP authorized by the President under existing laws and regulations (Section 11(e));
    • proceeds from the sale of products of the Government Arsenal and, for joint venture, incomes earned from the Government Arsenal’s equity share (Section 11(f));
    • proceeds from disposal of excess and/or uneconomically repairable equipment and other movable assets of the AFP and the Government Arsenal (Section 11(g));
    • funds from budgetary surplus, if any, as authorized by Congress, subject to Section 8 (Section 11(h));
    • donations from local and foreign sources specifically earmarked for the Revised AFP Modernization Program (Section 11(i));
    • all interest income of the trust fund (Section 11(j)).
  • The DND or the AFP may assign to the Bases Conversion and Development Authority or designate it as the disposition entity for sale, lease, or joint development of military reservations/portions or facilities/immovables located therein not otherwise covered under Republic Act No. 7227, as amended, subject to DND/AFP parameters and applicable laws, rules, regulations, and related issuances (Section 11).
  • Funds from trust fund sources must be directly deposited to a special account in the general fund created specifically for the Revised AFP Modernization (Section 11).
  • Importation of the same must be exempt from value-added tax and customs duties (Section 11).

Congressional Oversight Committee

  • A Congressional Oversight Committee is created to monitor and oversee implementation of Republic Act No. 10349 (Section 18).
  • The Committee consists of six (6) members from the Senate and six (6) members from the House of Representatives (Section 18).
  • The Chairpersons of the committees on National Defense and Security of both Houses serve as Joint Chairpersons (Section 18).
  • The other five (5) members from each chamber are designated by the Senate President and the Speaker of the House of Representatives, respectively (Section 18).
  • The Minority in each chamber must have at least two (2) representatives from both Chambers (Section 18).

Sunset review requirement

  • The Committee must conduct a sunset review as the need arises or within five (5) years after effectivity of Republic Act No. 10349 (Section 19).
  • “Sunset review” is a systematic evaluation of accomplishments and impact of the Act, and performance and organizational structure of implementing agencies, for purposes of determining remedial legislation (Section 19).

Repeal, separability, and effectivity

  • All laws, executive orders, rules and regulations inconsistent with or contrary to Republic Act No. 10349 are repealed or amended accordingly (Section 12).
  • If any section or provision is declared unconstitutional or invalid, the remaining sections or provisions remain in full force and effect (Section 13).
  • Republic Act No. 10349 takes effect fifteen (15) days after publication in at least two (2) newspapers of national circulation (Section 14).

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