Section 10Sec./Art. 10

Self-Reliant Defense Posture Program. -

a. in implementing the modernization program, the AFP shall, as far as practicable, give preference to Filipino contractors and suppliers or to foreign contractors or suppliers waling and able to locate a substantial portion of, if not the entire, production process of the item(s) involved, within the Philippines.

b. in order to reduce foreign exchange outflow, generate local employment opportunities and enhance technology transfer to the Philippines, the Secretary of National Defense shall, as far as feasible, incorporate in each contract/agreement special foreign exchange reduction schemes such as counter trade, in-country manufacture, co-production, or other innovative arrangements or combinations thereof.

c. the AFP shall likewise ensure that in negotiating all applicable contracts or agreements, provisions are incorporated respecting the transfer to the AFP of the principal technology involved as well as the training of AFP personnel to operate and maintain such equipment or technology.