AN ACT AMENDING REPUBLIC ACT NO. 7898

Case Overview and Summary

Summary of Republic Act No. 10349 (Revised AFP Modernization Program)

Components of the Revised AFP Modernization Program:
- Capability, materiel, and technology development (Section 4(b)):
    - Acquisition of air force, navy, and army equipment based on modernization objectives.
    - Synchronization of new equipment acquisition with phase-out of obsolete equipment.
    - No major equipment shall be purchased if not used by the armed forces in the country of origin or at least two other countries.
    - Only offers from manufacturers shall be entertained.
    - Supply contracts must provide for after-sales services and spare parts availability.
- Human resource development (Section 4(d)):
    - Develop a multi-mission oriented force capable of addressing internal and external threats.
- Doctrines development (Section 4(e)):
    - DND and AFP responsible for generating, evaluating, and disseminating doctrines.

Period of Implementation (Section 6):
- The program shall be implemented over 15 years from the date of approval.

Submission of the Revised AFP Modernization Program (Section 7):
- The President shall submit the program to Congress within 60 days, indicating:
    - Size and shape of the AFP during various phases.
    - Modernization projects, including major acquisitions and infrastructure.
    - Priorities, schedules, and estimated costs of each project.

Appropriations (Section 8):
- Annual appropriations shall include amounts necessary for all modernization projects.
- Funds shall be treated as separate from regular DND/AFP budget.
- At least PHP 75 billion shall be appropriated for the first 5 years.

Multi-year Contracts (Section 9):
- Congress shall appropriate funds for multi-year contracts upon issuance of obligational authority.
- DND and DBM shall issue guidelines for multi-year contracts.

Revised AFP Modernization Act Trust Fund (Section 11):
- A trust fund shall be created for the program, funded by:
    - Appropriations for the program.
    - Proceeds from sale, lease, or joint development of military reservations.
    - Proceeds from public-private partnerships.
    - Proceeds from sale of Government Arsenal products or joint ventures.
    - Proceeds from disposal of excess AFP equipment.
    - Budgetary surplus, if authorized by Congress.
    - Donations earmarked for the program.
    - Interest income of the trust fund.

Congressional Oversight Committee (Section 18):
- A committee shall be created to monitor and oversee the implementation of the Act.

Sunset Review (Section 19):
- The Congressional Oversight Committee shall conduct a sunset review within 5 years to evaluate the Act's accomplishments and impact.