A model of contract administration for the Armed Forces of the Philippines (AFP) modernization program

Abstract

The purpose of this thesis is to determine and develop the appropriate system for the implementation and administration of contracts formulated under the Armed Forces of the Philippines (AFP) Modernization Program. In 1995, the Philippine Congress mandated the modernization of the AFP through a is-year program under Republic Act (RA) 7898. Subsequently, the Department of National Defense (DND) issued Circular No. 29 to implement the Act. The Circular provided adequate guidance for the conduct of major system contracting, but it did not elaborate on the post-award implementation and administration of AFP contracts. Contract administration is a vital process in government acquisitions; it ensures the successful completion of the contract according to the satisfaction of the parties involved. Without a functioning contract administration system, the AFP risks failure in its Modernization Program. The study identified 12 post-award issues that would affect the successful administration of AFP contracts. Most of the issues are typical of any contracting agency, but some like countertrade, technology transfer, the Bids, Awards and Negotiation Committee (BANC) and the Project Management Teams (PMT), and lack of oversight skills and resources are unique to the AFP context. Using the AFP post-award issues, the prevailing contract administration practices and trends, and other concerns unique to the AFP, the study developed a model of contract administration that incorporates the elements and characteristics essential for its application in the AFP acquisition and contracting environment.