PROVIDING FOR THE RESTRUCTURING OF THE NATIONAL COMPUTER CENTER

WHEREAS, there exists a necessity to optimize the
capabilities and potentials of computerization in the development process
through the effective and efficient collection, processing and dissemination of
information needed in planning, policy-formulation and decision-making;

WHEREAS, there is a proliferation and under-utilization of
computers in the national government resulting from the absence of a rational
framework for the acquisition and utilization of Electronic Data Processing
(EDP) facilities; and which makes imperative the development and implementation
of a computer development strategy for the Government;

WHEREAS, the establishment of the necessary environment is a
precondition within which a responsive computer development strategy can best be
carried out;

WHEREAS, it is sound policy to maintain a self-reliant
posture in the field of computer technology through the development of
indigenous capabilities in the computer industry;

WHEREAS, to achieve these ends, there is need to provide for
the restructuring of the National Computer Center to order that if may
effectively formulate policies and standards and coordinate all activities
related to computerization in the country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree and order the following as part of the law of the land:

SECTION 1. Declaration of Policy.—It is hereby
declared the policy of the Government, in furtherance of national development,
to create the appropriate environment for, and rationalize the use and
application of, computer technology to attain the following objectives:

1. To optimize the application of computer technology in national development;
2. To ensure that the procurement of Electronic Data Processing (EDP) equipment
   and services will safeguard public interest in terms of optimum quality,
   benefits and economy;
3. To provide the mechanism for the effective evaluation of EDP and related
   programs throughout the system’s development cycle for the efficient and
   economical realization of program objectives;
4. To encourage the development of government-wide information systems to
   provide data and information needed for development planning and
   decision-making;
5. To rationalize the development and maintenance of EDP projects and data
   bases; and
6. To promote the development, retention and optimum utilization of qualified
   technical and managerial EDP personnel.

SECTION 2. Functions and Powers of the National Computer
Center.—The National Computer Center shall remain as an agency under the
Office of the President and shall have the following functions and powers:

1. Formulate and ensure the implementation of an integrated national computer
   development program consonant with the government’s development plans and
   objectives;
2. Provide policy guidelines for the development, direction and control of
   computer technology as a national resource;
3. Formulate policies and prescribe standards on the acquisition and
   utilization of computers and related devices, data communications, information
   systems, and manpower development in support of national computerization
   objectives;
4. Provide necessary computer services to government agencies to stimulate and
   accelerate the development of operational system as well as to fill gaps in the
   services provided by other government computer installations;
5. Establish, operate and maintain an EDP Educational and Research Center which
   will provide training and research facilities and bring about the development of
   EDP expertise and the establishment and implementation of standards for EDP
   training and education in the country;
6. Coordinate with the Department of Education and Culture and other government
   agencies concerned in the supervision and regulation of all private EDP training
   institutions; and prescribe standards for curriculum development and formulate
   rules and regulations to govern the operation of existing EDP training
   institutions and those that may hereafter be established;
7. Assist government agencies with computer facilities in the effective
   supervision, regulation and rationalization of the organization, management and
   operation of all EDP installations in the government, including government-owned
   and controlled corporation and local governments; and for this purpose may
   conduct a management audit whenever necessary;
8. Perform such other functions as may be necessary to implement the provisions
   of this Decree.

SECTION 3. National Computer Development
Program.—The National Computer Center shall prepare and annually update a
Ten-Year National Computer Development Program, hereinafter referred to as the
“Program”, which shall provide a rational and integrated framework for
computerization development activities in the Government. The National Computer
Center shall submit the Program for the approval of the NEDA Board.

The Program shall be based on a computer-sharing framework designed to
restructure and/or realign existing EDP organizations and prescribe the desired
number and capacity of government computer installations in accordance with the
guidelines established by the NEDA Board.

Upon approval of the Program by the NEDA Board, all departments, bureaus,
agencies and instrumentalities of the government including local government
shall implement the same within their respective jurisdictions. The Board shall
ensure that the approved Program and implementing policies, regulations and
standards are adopted and implemented by the agencies concerned.

SECTION 4. Managing Director.—The Management of the
National Computer Center shall be vested in the Managing Director who shall be
the chief executive thereof and who shall be appointed by the President of the
Philippines with the following powers, functions and duties:

1. Direct and manage the affairs of the National Computer Center;
2. Implement the policies and programs as may be adopted pursuant to the
   provisions of this Decree;
3. Recommend to the NEDA Board policies and programs on computerization and
   submit recommendations for the effective coordination and implementation of the
   approved programs and projects;
4. Undertake periodic review of program progress;
5. Recommend to the NEDA Board the organization structure with specific
   responsibilities for each operating unit, the staffing pattern, and the budget
   of the National Computer Center;
6. To appoint employees of the National Computer Center in accordance with the
   approved budget and staffing pattern thereof and discipline or remove them in
   accordance with existing laws;
7. Disburse, administer and obligate appropriations of the National Computer
   Center; and
8. Perform such other duties as may be necessary to implement objectives of
   this Decree.

SECTION 5. Personnel.—The National Computer Center
shall have such personnel as may be necessary for the performance of its
functions and such other personnel as may be assigned or detailed from other
agencies of the Government; Provided, That the Managing Director may
engage on contractual basis or other arrangements for temporary services and fix
the compensation of highly qualified professionals, expert technical advisers or
consulting firms; and grant to its personnel or those detailed to the Center
honoraria, allowances or overtime pay in such reasonable amount as it may fix
subject, however, to the final approval thereof by the Office of Compensation
and Position Classification, Budget Commission.

SECTION 6. Donations.—The Center is hereby
authorized to receive grants, donations, bequests or gifts, in whatever form and
from whatever sources; Provided, That said grants, gifts, bequests or
donations shall be administered, obligated and disbursed in accordance with the
terms thereof, or in the absence of such terms, in such manner as the interest
of the Government be best served; Provided, further, That said grants,
gifts, bequests or donations shall be subject only to such limitations as the
grantor, giver or donor may impose as accepted by the NCC.

SECTION 7. Reimbursement of Expenses.—The NCC is
hereby authorized to receive reimbursement of expenses incurred in providing
systems development, software and hardware development and computer services to
agencies and instrumentalities of the Government and to charge fees for its
educational services; Provided, That the rates or charges for such
services shall be fixed by the Board; Provided, further, That the fees
and other payments collected by the NCC shall be subject to the provisions of
P.D. No. 711 and any excess income shall be utilized by the agency only upon
approval of Special Budgets.

SECTION 8. Repealing and Separability Clauses.—The
provisions of the Integrated Reorganization Plan, particularly Part IV, Chapter
I, Article VII, and all laws, decrees, orders, rules and regulations, policies,
programs or parts thereof which are inconsistent with any of the provisions of
this Decree are hereby repealed or modified accordingly.

If for any reason any section or provision of this Decree is declared
unconstitutional or invalid, the other Section or provisions thereof, which are
not affected thereby, shall continue in full force and effect.

SECTION 9. Effectivity.—This Decree shall take
effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Assistant