Reconciling the procurement law with SRDP

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Reconciling the procurement law with SRDP

Post by adroth on Sat Aug 28, 2010 2:02 am

The General Appropriation Act (a.k.a. national budget) contains the following provision under the section for the Department of National Defense

4. Research, Feasibility Studies, Development Projects and Test and Evaluation. The Secretary of National Defense, upon direction of the President of the Philippines, and upon favorable recommendation of the Chief of Staff, AFP, is authorized to conduct research, feasibility studies, and development studies for projects planned and approved under the Self-Reliant Defense Posture (SRDP) Program, including materiel requirements of the AFP on weapons and armaments, air and naval armaments, air and naval materiel requirements, ammunition, communication-electronics and quartermaster items, the cost of which shall be chargeable to the appropriations provided for the SRDP Program, Research and Development (R & D) Program and other special funds as provided by law. The Secretary of National Defense, upon favorable recommendation of the Chief of Staff, AFP, is likewise authorized to farm out R & D projects to private entrepreneurs or government scientific agencies when these are not within the capability of the AFP to undertake: PROVIDED, That the amount to be spent for such research, feasibility and development studies shall not exceed four percent (4%) of the contract price of the direct cost of each project.

If a company successfully develops a prototype for the government under this program, thus generating a unique piece of equipment that is tailor made for government requirements . . .

. . . does the government have legal cover to enter into a direct contracting arrangement with this company for full production of the equipment?

Will current regulations still require the government to enter into a public bidding . . . despite government money already spent in development in-partnership with this company?
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Re: Reconciling the procurement law with SRDP

Post by RDV @ GP3i on Sat Aug 28, 2010 9:15 am

adroth wrote:The General Appropriation Act (a.k.a. national budget) contains the following provision under the section for the Department of National Defense

4. Research, Feasibility Studies, Development Projects and Test and Evaluation. The Secretary of National Defense, upon direction of the President of the Philippines, and upon favorable recommendation of the Chief of Staff, AFP, is authorized to conduct research, feasibility studies, and development studies for projects planned and approved under the Self-Reliant Defense Posture (SRDP) Program, including materiel requirements of the AFP on weapons and armaments, air and naval armaments, air and naval materiel requirements, ammunition, communication-electronics and quartermaster items, the cost of which shall be chargeable to the appropriations provided for the SRDP Program, Research and Development (R & D) Program and other special funds as provided by law. The Secretary of National Defense, upon favorable recommendation of the Chief of Staff, AFP, is likewise authorized to farm out R & D projects to private entrepreneurs or government scientific agencies when these are not within the capability of the AFP to undertake: PROVIDED, That the amount to be spent for such research, feasibility and development studies shall not exceed four percent (4%) of the contract price of the direct cost of each project.

If a company successfully develops a prototype for the government under this program, thus generating a unique piece of equipment that is tailor made for government requirements . . .

. . . does the government have legal cover to enter into a direct contracting arrangement with this company for full production of the equipment?

Will current regulations still require the government to enter into a public bidding . . . despite government money already spent in development in-partnership with this company?

Since government money has been spent for the development of a "unique piece of equipment", that could be a good example of public-private partnership (PPP). The government is allowed to enter into a Joint Venture Agreement with private enterprises. The guidelines are here.

I think one important thing that you should consider, prior to funding private enterprises for the development of a certain prototype tailor-fitted for the military's requirement, is that you do not forget to include an eventual PPP clause in the MOA that you will enter into with the private enterprise.
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Re: Reconciling the procurement law with SRDP

Post by adroth on Sun Aug 29, 2010 6:37 pm

RDV @ GP3i wrote:Since government money has been spent for the development of a "unique piece of equipment", that could be a good example of public-private partnership (PPP). The government is allowed to enter into a Joint Venture Agreement with private enterprises. The guidelines are here.

I think one important thing that you should consider, prior to funding private enterprises for the development of a certain prototype tailor-fitted for the military's requirement, is that you do not forget to include an eventual PPP clause in the MOA that you will enter into with the private enterprise.

Many thanks for the link JDV. Very Happy

This'll be precious reading on our forum:

http://www.timawa.net/forum/index.php?topic=24265.0
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Re: Reconciling the procurement law with SRDP

Post by RDV @ GP3i on Mon Aug 30, 2010 11:10 am

adroth wrote:
RDV @ GP3i wrote:Since government money has been spent for the development of a "unique piece of equipment", that could be a good example of public-private partnership (PPP). The government is allowed to enter into a Joint Venture Agreement with private enterprises. The guidelines are here.

I think one important thing that you should consider, prior to funding private enterprises for the development of a certain prototype tailor-fitted for the military's requirement, is that you do not forget to include an eventual PPP clause in the MOA that you will enter into with the private enterprise.

Many thanks for the link JDV. Very Happy

This'll be precious reading on our forum:

http://www.timawa.net/forum/index.php?topic=24265.0

You are welcome, adroth, but it is RDV not JDV Very Happy
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Re: Reconciling the procurement law with SRDP

Post by adroth on Mon Aug 30, 2010 2:00 pm

RDV @ GP3i wrote:You are welcome, adroth, but it is RDV not JDV Very Happy

My bad. Embarassed
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Re: Reconciling the procurement law with SRDP

Post by adroth on Tue Aug 31, 2010 4:07 pm

Does the Commission On Audit have their own guidelines for how to monitor these deals?
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Re: Reconciling the procurement law with SRDP

Post by sunriser431 on Tue Aug 31, 2010 10:13 pm

adroth wrote:Does the Commission On Audit have their own guidelines for how to monitor these deals?
maybe it will help. Try this LINK bounce
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