Negotiated Procurement
Section 53. Negotiated Procurement. g) Upon prior approval by the President of the Philippines, and when the procurement for the use by the AFP involves major defense equipment and/or defense-related consultancy services, when the expertise or capability required is not available locally, and the Secretary of National Defense has determined that the interests of the country shall be protected by negotiating directly with an agency or instrumentality of another country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations: Provided, however, That the performance by the supplier of its obligations under the procurement contract shall be covered by a foreign government guarantee of the source country covering one hundred percent (100%) of the contract price. All other provisions of the IRR-A of RA 9184 shall remain unchanged. This Memorandum Order shall take effect immediately upon its publication in a national newspaper of general circulation.
DONE in the City of Manila, this 14th day of November, in the year of Our Lord, Two Thousand Five.
(Sgd.) GLORIA MACAPAGAL - ARROYO By the President
(Sgd.) EDUARDO R. ERMITA
Executive Secretary