The Department of National Defense welcomes the approval of Executive Order No. 18, repealing Executive Order No. 235 (s. 2003), streamlining the rules and procedures for defense contracts, and for other purposes. It was signed by President Rodrigo Roa Duterte on 07 April 2017.
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 Php 50 million. Beyond the said amount, procurement projects must be elevated to the DND for approval.
With AFP projects amounting to hundreds of millions of pesos based on actual requirements, the Php 50M 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.
We assure the Filipino people that all processes in the DND are in accordance with the law, particularly RA 9184 or the Government Procurement Reform Act of 2003 and RA 10349 or the Revised AFP Modernization Act.