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