SRDP stands for Self-Reliant Defense Posture. Republic Act No. 12024, the Self-Reliant Defense Posture Revitalization Act, supports local production, research, technology transfer, and participation by qualified private enterprises in the Philippine defense industry.[1]
Assess commercial opportunities against the particular project, procurement requirements, and conditions for program benefits. Identify the product or service you can deliver, the government requirement, and the proposed participation structure.
This article sets out seven legal checks for companies considering SRDP opportunities. It explains how to assess the proposed work, structure the enterprise, prepare for qualification, and negotiate commercial arrangements without assuming that program participation guarantees a government contract.
Understanding SRDP opportunities for private businesses
An SRDP proposal should begin with a defined capability and a customer requirement. Describe the problem the business can address, the work it proposes to perform, and the resources it needs. A general intention to support defense self-reliance is too broad to price or evaluate.
For an established manufacturer or service provider, the starting point may be an existing capability that can be adapted to defense requirements. Identify which parts of that capability are already demonstrated and which depend on additional facilities, personnel, permissions, or cooperation with a technology owner.
Prepare an initial SRDP opportunity assessment before making substantial commitments. It should explain the proposed customer, local and foreign participants, estimated development work, and continuing support. Treat unconfirmed government demand, approval, or financing as an assumption requiring verification.
Read the SRDP Act alongside its implementing rules and the requirements for the particular project. Use the following checks to organize that review and identify the questions that need to be resolved before an agreement is signed.
1. Identify the role your business can perform
The Act covers defense materiel and supporting industrial activities. Opportunities may involve development, manufacturing, assembly, servicing, or operation, together with allied supply chain capabilities. Participation can therefore involve maintenance, components, protective equipment, or technical support as well as finished platforms.[2]
Assess whether the business is proposing to develop a capability, supply a component, assemble an item, or maintain equipment already in service. Those roles involve different costs, contractual responsibilities, and evidence of performance. Explain the proposed role in the terms used by the relevant project.
Separate work that the local enterprise can perform itself from work that will be performed by a foreign partner or subcontractor. Identify who controls essential technical information and who can authorize its use. This helps prevent an offer from depending on capabilities that have not actually been secured.
For example, an enterprise may be able to manufacture a component but still need approval from the owner of the design before offering it for a particular system. The proposal should identify that dependency and the steps required to address it.
An SRDP proposal should state its limits as clearly as its capabilities. Record the facilities, personnel, prior experience, and third-party commitments supporting the proposed work. Avoid presenting a planned investment or unsigned partnership as a capability already available for delivery.
2. Check ownership and the required local activity
The Act defines in-country enterprises to include Filipino-owned enterprises and joint ventures between Filipino and foreign enterprises in which at least 60 percent of the venture is Filipino-owned.
The 2025 implementing rules require at least 51 percent of the covered activities to be located in the Philippines and contemplate a joint circular clarifying the substantial local activity requirement for the approved program. Assess actual operations alongside ownership and registration.[3]
Review beneficial ownership, technical capability, and sector restrictions when structuring a foreign partnership. Consider the program category’s requirements alongside the rules for the wider business.
Ownership and local activity address different matters. Ownership concerns the enterprise and its investors. The location requirement concerns the work actually performed. Do not assume that registering an address in the Philippines establishes that the required activities will occur here.
Prepare a description of the proposed local operations, including facilities, employees, equipment, subcontracting, and work to be performed abroad. Check the current implementing guidance and the approved program before adopting a particular method of measuring local activity.
For a joint venture, settle the contributions, management rights, additional funding, profit arrangements, and consequences of withdrawal. Align the commercial agreement with the ownership and operating arrangements being presented for qualification. Address changes in ownership or control during the project.
ATL Law Firm’s corporate practice assists with business structuring and commercial agreements. An SRDP investment should be assessed against both the program requirements and the rules applicable to the enterprise’s wider operations.
3. Confirm SRDP project approval and quality requirements
The implementing rules provide for government, joint, and private implementation of SRDP projects, with presidential approval upon the recommendation of the Secretary of National Defense.[4] Project approval and participation requirements should be examined separately from an ordinary company registration or a general expression of government interest.
For private participation covered by Section 8 of the Act, published project criteria and terms govern qualification. Participants must obtain and maintain ISO 9001 certification and other applicable quality certifications for their products or services.[5] Determine the exact quality requirements, testing, acceptance, and continuing obligations before pricing the work.
For example, a company offering maintenance support should examine its personnel, facilities, access to technical data, and authority to use necessary tools and software. A foreign partner’s experience does not, by itself, establish that the Philippine enterprise can perform and support the offered service.
Identify the published qualification criteria and keep a record of the version being used. Prepare a responsibility list showing which participant will provide each required document, certification, facility, or technical undertaking. Resolve gaps before treating an application as ready for submission.
Quality certification should be addressed alongside the proposed scope of work. Check whether the certificate covers the relevant entity, location, and activities. Ask who bears the expense of obtaining and maintaining certification and what happens if a necessary certification expires during performance.
Agree on testing and acceptance before finalizing price and delivery dates. Identify the standards to be applied, the evidence required, the persons authorized to confirm acceptance, and how deficiencies will be corrected. A successful demonstration may not settle the obligations for full delivery and continuing support.
The SRDP implementing rules should be read with the actual project documents. Keep expressions of interest, preliminary discussions, formal approval, and a signed procurement contract accurately described throughout the proposal and the company’s internal records.
4. Make technology transfer commitments enforceable
Technology transfer and local capability development are central to the program. Countertrade and offset arrangements must also be integrated into the Department of National Defense procurement policy for covered imports.[6] Translate those objectives into specific contractual deliverables.
| Contract area | Questions to resolve | Evidence of delivery |
| Technical rights | What may the local enterprise use and retain? | Licenses and delivered technical documents |
| Skills development | Who receives which training and when? | Training and competency records |
| Local activity | What work will actually occur in the Philippines? | Facility and production or service records |
| Continuing support | Who supplies updates, tools, and spare parts? | Support commitments and acceptance records |
Distinguish access to a finished product from permission to manufacture, modify, maintain, or reproduce its components or software. Address ownership of new work, confidentiality, export restrictions, subcontracting, and the position when a partnership ends. A promise to share technology should explain what the recipient can actually do with it.
List the deliverables behind each transfer commitment. Depending on the arrangement, these may include licensed documentation, permitted technical access, training, approved tools, or support. State who provides each item, when it must be delivered, and how compliance will be established.
Clarify whether permission is limited to the original government contract or extends to later work. Address restrictions affecting affiliates, replacement personnel, and subcontractors. A local enterprise should understand which rights continue if the foreign partner withdraws or the initial project ends.
The commercial agreement should also address the cost of updates and changes. Establish who approves additional work, how revised requirements affect price and delivery, and who maintains the records needed to support the capability after initial acceptance.
For SRDP partnerships, link payment and acceptance milestones to identifiable deliverables. General promises of cooperation or future training are difficult to assess unless the agreement states the required performance. Keep commitments consistent across the partnership agreement, project proposal, and procurement offer.
5. Verify the SRDP procurement route before committing
Section 15 of RA No. 12024 authorizes the Secretary of National Defense to enter covered defense contracts with or without public bidding.
Where the Secretary determines that public bidding is unnecessary, covered contracts must be awarded to in-country enterprises when the relevant materiel, components, or facilities can be locally produced or created.
Procurement outside the Act’s coverage follows RA No. 12009, including applicable transition rules. Determine the applicable route, required approvals, funding arrangements, and procurement documents for the transaction. Program participation does not itself award a supply contract.[7]
Pricing should account for testing, quality systems, delivery security, warranty, maintenance, and the length of the support commitment. The development proposal and the procurement offer should describe consistent capabilities and responsibilities.
Identify the procuring entity, the proposed contractual scope, and the authority relied upon for the selected procurement route. Confirm the documents needed for the particular transaction. A preliminary meeting or favorable assessment should not be described as an approved award.
Review the commercial conditions before committing to orders from partners or suppliers. Consider when payment becomes due, what establishes delivery and acceptance, and who bears the cost of delay or nonconforming performance. Align those obligations with the enterprise’s financing arrangements.
If an SRDP proposal involves development followed by later supply or maintenance, identify which commitments are already contracted and which depend on further approval. Do not assume that an initial development engagement guarantees future purchases, minimum volumes, or an exclusive supply relationship.
6. Assess incentives separately from the contract
The Act and its implementing rules allow qualifying in-country enterprises to seek registration with the Board of Investments or another investment promotion agency and avail of applicable incentives.[8] Assess the registered activity, conditions, documentation, and current tax rules before including benefits in the project’s financial model.
Prepare the financial model using the conditions that can actually be supported. Identify the proposed registered activity, applicant, investment schedule, and documentation required by the relevant investment promotion agency. Ask when any approval must be obtained and what continuing obligations apply.
Distinguish a possible incentive from a confirmed entitlement. Model the project with and without the assumed benefit until its legal basis and conditions are established. Include the expense of complying with the registration and reporting requirements in the assessment.
For an SRDP joint venture, agree who will prepare the application and maintain the supporting records. Address changes to the project, location, ownership, or operations that may affect the assumptions used in the application. Keep the registration documents consistent with actual performance.
Government contract eligibility and investment incentive eligibility require their own review. A favorable result in one process does not establish the outcome of the other. Record any unresolved conditions before benefits are included in pricing or represented to investors as available.
7. Check controlled goods and permitted customers
The Strategic Trade Management Act governs controlled strategic goods and related activities. Assess whether equipment, software, technology, technical assistance, or proposed transfers require registration, authorization, or other compliance steps under the applicable goods lists and end-use controls.[9] This assessment should occur before agreeing to disclose controlled technical material to a partner.
The SRDP framework restricts domestic sales of materiel to private entities, subject to exceptions under existing laws and regulations.
Exports are conditional on satisfying the requirements of the Armed Forces of the Philippines and other covered government users; the implementing rules also require alignment with Philippine national security interests.
Verify the legal basis and approvals for the proposed customer and destination. Protect sensitive information when preparing submissions, demonstrations, and intellectual property applications.[10]
Map the proposed transactions before exchanging technical information. Identify what will be shared, who will receive it, the countries involved, and the proposed end use. Obtain the necessary legal and regulatory assessment before making disclosures or undertaking transfers that may be controlled.
Give responsibility for trade compliance to an identified person or team. Keep the relevant classifications, authorizations, conditions, and customer documentation together. A contractual assurance from a commercial partner should be examined alongside the approvals required for the actual transaction.
For SRDP projects, review sales restrictions when preparing the business model and when a new customer is proposed. Do not assume that permission to serve one government customer authorizes every domestic sale or export. Check the particular product, recipient, destination, and conditions of the proposed transaction.
Documents to prepare for an SRDP proposal
A preliminary review is more useful when the company can provide a coherent set of documents. The precise application requirements depend on the project, but the following material can help identify missing information and assign responsibility before commitments are made.
- A capability statement describing the proposed work, available facilities, personnel, experience, and dependencies.
- Corporate records and a proposed ownership structure identifying local and foreign participants.
- A description of work to be performed in the Philippines and work to be performed abroad.
- Draft partnership, technology licensing, subcontracting, and support arrangements relevant to the proposal.
- Available quality certificates, testing plans, and the proposed evidence of delivery and acceptance.
- A project budget identifying development costs, continuing support, financing assumptions, and unconfirmed incentives.
- The applicable project criteria and an initial assessment of procurement, trade, customer, and destination requirements.
Maintain a record of the source and status of each requirement. Distinguish signed agreements, approvals, and existing capabilities from drafts, applications, and future commitments. Update the file when the scope or participants change rather than allowing different versions of the proposal to circulate.
Frequently asked questions about SRDP participation
What does SRDP mean for a private business
SRDP provides a framework for building Philippine defense capabilities with qualified private participation. For a business, the practical question is whether its proposed work fits an identified requirement and meets the relevant conditions. Assess the particular role, enterprise, project, and procurement documents before treating a general industry opportunity as an available contract.
Is SRDP participation limited to large manufacturers
The framework covers allied industrial activities as well as finished defense materiel. A business may examine opportunities involving components, servicing, maintenance, or supporting capabilities. Its eligibility will depend on the proposed work and the applicable criteria. Company size alone does not establish whether an enterprise can perform a particular project.
Can a foreign business participate in an SRDP arrangement
The Act contemplates joint ventures involving Filipino and foreign enterprises. Qualification as an in-country enterprise requires attention to the statutory ownership category and the local activity requirements. Foreign participation should also be reviewed against the sector rules, proposed contractual role, and controls affecting technology or equipment. Avoid assuming that a proposed partnership satisfies every requirement.
Does project approval guarantee a government contract
SRDP project approval, qualification for participation, and the award of a procurement contract address separate matters. Check what the approval actually covers and which further decisions or documents are required. The company should describe its position accurately and avoid committing to delivery or financing on the assumption that an award is certain.
Are investment incentives automatic under SRDP
Qualifying enterprises may seek registration and applicable incentives, subject to the relevant requirements. Identify the registered activity and the conditions attached to any approval. Treat projected benefits as assumptions until the entitlement and supporting documentation have been established. Continuing compliance should be assigned to someone responsible for maintaining the records and monitoring changes.
Can SRDP products be sold to private buyers or exported
Domestic private sales are restricted, subject to exceptions under applicable laws and regulations. Exports have their own conditions under the framework and must also be assessed for strategic trade and other relevant requirements. Review the specific product, proposed buyer, destination, end use, and approvals before agreeing to a transaction.
Legal assistance for SRDP projects
ATL Law Firm can assist with partnership agreements, regulatory assessments, legal review of procurement, and policy submissions supporting responsible defense industry development.
Our policy advisory services include legal and regulatory submissions. For a proposed defense industry engagement, identify the capability, ownership structure, intended customer, and stage of discussions so that the legal review can address the decisions the business actually needs to make.
Contact ATL Law Firm to discuss the proposed project, partnership, or regulatory questions before substantial commercial commitments are made.
[1] Self-Reliant Defense Posture Revitalization Act, Republic Act No. 12024, §§ 2, 7–8 (2024) (Phil.).
[2] Republic Act No. 12024, § 3(b), (d), (f)–(g), (i)–(j) (2024) (Phil.).
[3] Republic Act No. 12024, § 3(e) (2024) (Phil.); Department of National Defense, Department Circular No. 03, s. 2025, Implementing Rules and Regulations of Republic Act No. 12024, rule 1, § 4(e) (Feb. 27, 2025) (Phil.) [hereinafter SRDP IRR].
[4] Republic Act No. 12024, § 8 (2024) (Phil.); SRDP IRR, rule 2, §§ 2–3.
[5] Republic Act No. 12024, § 8 (2024) (Phil.); SRDP IRR, rule 2, § 4.
[6] Republic Act No. 12024, §§ 7(b), 20 (2024) (Phil.).[7] Republic Act No. 12024, §§ 15(a)–(b), 18 (2024) (Phil.); New Government Procurement Act, Republic Act No. 12009, § 113 (2024) (Phil.); Implementing Rules and Regulations of Republic Act No. 12009, § 113 (2025) (Phil.).
[8] Republic Act No. 12024, § 13(a) (2024) (Phil.); SRDP IRR, rule 3, § 3(a).
[9] Strategic Trade Management Act, Republic Act No. 10697, §§ 3–5, 10–15 (2015) (Phil.).
[10] Republic Act No. 12024, § 19 (2024) (Phil.); SRDP IRR, rule 2, § 7.
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