DND lauds Duterte EO streamlining rules for defense contracts

“The Defense Department initiated the repeal of EO 235 to give the Secretary of National Defense the authority to increase the ceiling of the procurement projects that can be undertaken at the level of the Armed Forces of the Philippines (AFP), based on its operational and day to day requirements. Under EO 235, the Secretary of National Defense may only delegate to the AFP the authority to approve procurement projects which are below PHP50 million. Beyond the said amount, procurement projects must be elevated to the DND for approval,” said DND public affairs office chief Arsenio Andolong. (Photo: Department of National Defense – Philippines/ Facebook)

MANILA–The Department of National Defense (DND) on Tuesday lauded President Rodrigo Duterte’s Executive Order (EO) 18, which streamlines rules and procedures for defense contracts and other purposes.

The latter repeals EO No. 235 (s. 2003) issued by then President Gloria Macapagal-Arroyo.

EO 18 was signed by the Chief Executive last April 7.

“The Defense Department initiated the repeal of EO 235 to give the Secretary of National Defense the authority to increase the ceiling of the procurement projects that can be undertaken at the level of the Armed Forces of the Philippines (AFP), based on its operational and day to day requirements. Under EO 235, the Secretary of National Defense may only delegate to the AFP the authority to approve procurement projects which are below PHP50 million. Beyond the said amount, procurement projects must be elevated to the DND for approval,” said DND public affairs office chief Arsenio Andolong.

Arroyo’s EO 235 stressed the need to streamline procedures for defense contracts for the expeditious implementation of defense projects and the speedy response to security threats while promoting transparency, impartiality and accountability in government transactions.

The 2003 EO then limited the authority of the Secretary of National Defense to delegate approvals of procurement contracts and established a single Bids and Awards Committee for the Armed Forces of the Philippines in its General Headquarters.

“With AFP projects amounting to hundreds of millions of pesos based on actual requirements, the PHP50 million cap has become unrealistic and makes the procurement process cumbersome. EO 18 will enable the Defense establishment to fast track its procurement process, especially for materiel that are badly needed by the operating units in the field,” he further said.

“We assure the Filipino people that all processes in the DND are in accordance with the law, particularly Republic Act 9184 or the Government Procurement Reform Act of 2003 and RA 10349 or the Revised AFP Modernization Act,” Andolong said.