Author Topic: Improving the AFP modernization program  (Read 18034 times)

Adroth

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Improving the AFP modernization program
« on: November 14, 2009, 01:59:16 AM »
Finally . . . the 2008 Modernization Report is out.

http://www.afpmodernization.mil.ph/annual/afpmp-annualrpt08.pdf

From page 28: Recommendations

1. The most important recommendation of the AFP is to continue to lobby for the passing of legislative initiatives that would facilitate the implementation of the program and generate additional funds. These include proposed amendments to RA 7898 (AFP Modernization Act of 1995) such as House Bill 3260 which seeks to have a regular fund appropriation from Congress and a separate streamlined procurement process for the acquisition of defense materials. Other legislative initiatives include the amendment to RA 7227 (BCDA Act of 1997), creation of the Military Real Estate Development Authority, allocation and transfer of funds to the AFPMATF from the share of the national government on all taxes, royalties and charges paid by the Malampaya Natural Gas to Power (MNGP) Project, BIR collection of capital gains and value-added taxes from real estate sales.

2. There is also a need for the Defense Department to look into additional funding for the AFP in order to address the necessary expenses for the maintenance and other operating requirements of the new equipment acquired through the AFP Modernization Program. While most acquisitions include provisions for integrated logistics support, these, however are limited only to immediate logistical support for the operation of the equipment. Funds allocated to the program are capital outlay and does not include MOOE to maintain and operate the equipment.

3. Allocation of Administrative Fund is also highly recommended. There are processes in project management which require a lot of administrative functions. These include, but are not limited to, needs assessment, market analysis, testing, project administration & monitoring, research, inspection, planning conferences, meetings, documentation, and competency development. Regardless of complexity, a project is estimated to incur an administrative cost of P3.0 to P4.0 Million for it to be successfully implemented. The estimate shall include project management staff competency development through training, seminars, and workshops on project management, acquisition, and related topics. Equipping the PMTs, TWGs, Programs Managers, and project staff to effectively manage their responsibilities shall improve efficiency in project implementation; which will result to shorter project cycletime.

4. The competence of formulating procurement plans, bidding documents, and contracts, do not reside in the AFP as an institution. While there are people in the military who are skilled to undertake these activities, the non-permanence of military personnel in any position hinders the continuous development of skills and expertise in this particular field. Thus, it is noteworthy to consider the establishment of a dedicated institution with permanent personnel that will undertake these activities for the AFP. With this, the AFP’s role in the acquisition cycle will be purely the identification of its needs to fill up the required capabilities to address modernization objectives.
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Adroth

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Re: Improving the AFP modernization program
« Reply #1 on: November 14, 2009, 03:01:06 PM »
A "new" role for the AFP Modernization Program Management Office?

From page 25 of the same report:

Program Implementation. An Integrated Contracting Team (ICT) was created under the helm of AFPMPMO. It was very instrumental in the push for the efficient formulation of Bidding Documents and Contracts for projects under the Program.

Of great significance last year was the findings of the Commission on Audit on the performance evaluation of AFPMPMO. As reflected in CY2008 Audit Highlights, “the present organizational structure of AFPMPMO does not support an effective evaluation and monitoring mechanism for the attainment of the goals and objectives of the Modernization Program”. With this, a review of the existing AFPMPMO organizational structure was recommended by COA Also last year, the different processes involved in equipment acquisition were integrated into one guiding process for the stakeholders, a significant move that led to the development of an information system infrastructure for project monitoring.
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Adroth

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Re: Improving the AFP modernization program
« Reply #2 on: November 14, 2009, 04:37:20 PM »
As reflected in CY2008 Audit Highlights, “the present organizational structure of AFPMPMO does not support an effective evaluation and monitoring mechanism for the attainment of the goals and objectives of the Modernization Program”.

An excerpt from the 2008 Commission on Audit report on the AFP.

http://www.coa.gov.ph/Audit/AAR.htm

AFP Modernization Program

The present organizational structure of the AFP Modernization Program Management Office does not support an effective evaluation and monitoring mechanism for the attainment of its goals and objectives.

1.An organizational structure is a way of describing the relationships among groups and individuals in an organization. At the heart of an organizational structure are  
roles/responsibilities and communications/accountability.

2.Review of the organization structure of the Modernization Program disclosed that the five  components or trust area of the Program is under the direction or supervision of different AFP Coordinating staff offices, namely:

a)Force Restructuring and Organizational Development (FROD) is under the functional supervision of Deputy Chief of Staff for Plans, OJ5.  

b)Bases and Support Systems Development (BSSD) is under the functional supervision of Deputy Chief of Staff for Logistics, OJ4.

c)Doctrines Development (DD) is under the functional supervision of Deputy Chief of Staff for Operations, OJ8.

d)Human Resource Development (HRD) is under the functional supervision of Deputy Chief Of Staff for Personnel-OJ1.

e)Capability Materiel and Technology Development (CMTD) is handled by the AFP Modernization Project Management Office (AFPMPMO) and under the functional supervision of Deputy Chief of Staff for Plans, OJ5.

3.The AFPMPMO based on Staff Memorandum No. 9 dated November 24, 2006 is tasked to assists and advise the Chief of Staff-Armed Forces of the Philippines in the management of the AFPMP Capability Material and Development projects and in the generation of funds for the AFPMATF.

4.In addition to its tasks, the AFPMPMO collates all accomplishments of all the components at year-end and summarizes them into an annual accomplishment report.

5.However, it has no direct supervision over the operations of the four components, thus, cannot comment on the issues and concerns regarding the implementation of the programs/projects of said components.

6.Moreover, we noted that the AFPMPMO neither monitor nor evaluate the accomplishments of these components to ensure that plans and targets are carried out as planned as well as appropriate measures are initiated and established to correct deficiencies in the implementation of the programmes or projects.

7.While all the components are under the function, direction or supervision of the different OJs, we noted that the OJs do not also conduct a monitoring or evaluation of the projects being undertaken or implemented in their jurisdiction since they know that the task is being done by the AFPMPMO. This is with the exception of the CMTD which is appropriately being managed by the AFPMPMO.

8.This has been evident in the low percentage of accomplishment registered by these modernization program as of CY 2007, to wit:

BSSD  -   15.41 %
DD      -   22.09 %.  
HRD   -    Not known
FROD -    Not known

9.The establishment of an organizational structure/set-up in the Project Management Office which does not support supervision on all transactions related to the AFP modernization for all the five components deprived Management the efficient feedback mechanism to guide them in their decision making and ensure timely resolution of issues and problems that will support the efficient implementation of programmes and projects.

10.We recommend that management revisit/review the existing organizational structure of the AFPMPMO and institute amendments to :

ensure that the organization set-up supports an effective monitoring and evaluation mechanism to provide top management with timely reports/input to guide them in their decision making;

ensure that government funds are maximized for the efficient implementation of projects to attain the Program’s goals and objectives.

11.Management acknowledged the observation and is currently pursuing the following proposals  and hopes to address the lapses noted:

a)To transform the Program to its original intent addressing the seven objectives through the five modernization components; and

b)Reorganization or strengthening of the AFP Modernization Program Management Office to implement the transformation scheme.
« Last Edit: November 14, 2009, 04:38:51 PM by Adroth »
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Adroth

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Procurement service @ DND?
« Reply #3 on: November 15, 2009, 10:26:20 AM »
On its face . . . the following AFP gut-check seems to promise better bids as well as a potential career track for acquisition savvy individuals.

4. The competence of formulating procurement plans, bidding documents, and contracts, do not reside in the AFP as an institution. While there are people in the military who are skilled to undertake these activities, the non-permanence of military personnel in any position hinders the continuous development of skills and expertise in this particular field. Thus, it is noteworthy to consider the establishment of a dedicated institution with permanent personnel that will undertake these activities for the AFP. With this, the AFP’s role in the acquisition cycle will be purely the identification of its needs to fill up the required capabilities to address modernization objectives.

Could we see the DND forming its own dedicated, properly trained, procurement service?

Could this be used to finally end piecemeal, aircraft-by-aircraft, equipment-by-equipment, purchases that do not take advantages of the economies of scale?

What needs to happen to prevent this entity from becoming the corruption magnet that the Logistics Command became?

===== ~~~ =====

How the USAF does it:

Air Force officials unveil acquisition improvement plan
by Tech. Sgt. Amaani Lyle
Secretary of the Air Force Public Affairs

http://www.af.mil/news/story.asp?id=123148399

5/11/2009 - WASHINGTON (AFNS) -- Air Force leaders have announced their plan for improving acquisition, which will have far-reaching impacts on the way the service develops and buys defense capabilities for the nation.

The Air Force's acquisition improvement plan "will serve as our strategic framework for the critical work of modernizing and recapitalizing our air, space and cyber systems," Secretary of the Air Force Michael Donley and Air Force Chief of Staff Gen. Norton Schwartz said May 8 in a joint memorandum introducing the plan.

The plan addresses shortcomings in the acquisition process that were identified during protests by contractors on major programs and by subsequent reviews of the service's key acquisition processes.

The plan outlines five initiatives with 33 actions that are intended to "ensure rigor, reliability and transparency across the Air Force acquisition enterprise," according to Secretary Donley and General Schwartz. The five initiatives are designed to:

· Revitalize the Air Force acquisition workforce

· Improve the requirements generation process

· Instill budget and financial discipline

· Improve Air Force major source selections

· Establish clear lines of authority and accountability within acquisition organizations

Perhaps the most significant action proposed is to increase in the size, and improve the training and experience of the Air Force's professional acquisition corps, which has been cut by 41 percent over the past 20 years.

The plan calls for immediate action to increase the workforce by 258 military and 1,804 civilian personnel and an improvement in the hiring, recruiting, retention and training programs essential to maintaining a quality professional corps.

"Recapturing acquisition excellence requires an experienced, skilled, empowered and accountable workforce and begins with proper requirements and adequate, stable funding," said Lt. Gen. Mark D. Shackelford, military deputy to the assistant secretary of the Air Force for acquisition. "We will continue to shape and size our workforce and ensure professional development for our personnel."

Acquisition officials said regardless of workforce and process improvements, financial discipline must remain a critical focus. In this regard, the plan calls for more realistic budgeting and tighter cost control at all acquisition phases with the flexibility to adjust or cancel programs whose costs grow beyond acceptable levels.

"We are committed to being responsible stewards of the taxpayers' money and a provider of winning capabilities for our nation's warfighters," General Shackelford said.

« Last Edit: November 15, 2009, 11:10:01 AM by Adroth »
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Adroth

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Re: Improving the AFP modernization program
« Reply #4 on: April 29, 2011, 11:05:48 PM »
DND-SIC clips AFP power on procurement
By Mario J. Mallari
04/20/2011

http://www.tribuneonline.org/nation/20110420nat6.html

The Department of National Defense-Special Investigation Committee (DND-SIC), which probed the alleged massive corruption in the military during the past administration, has recommended the clipping of the procurement powers of the Armed Forces of the Philippines (AFP), apparently to address irregularity in fund disbursement.

< Edited >

According to Batac, the DND-SIC recommended the creation of the Defense Acquisition Bureau under the DND “to professionalize the procurement and logistics service of the DND which only means that the logistics arm of the AFP might be elevated to the DND.”

He, however, maintained that based on the DND-SIC recommendation, the AFP will still have a hand in the procurement process by providing the technical specifications of items to be acquired.

< Edited >
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