REVIEW OF RELATED LITERATURE
While there are volumes of literature on corruption, there are very rare writings that directly dealt with corruption on the procurement system of a military organization or any government agency for that matter. One such writing is the article for the Philippine Center for Investigative Journalism by Malou C. Mangahas entitled "Kickbacks and Negotiated Deals Mar AFP Procurement System". While the said article made some startling revelations, it did so under the pretext of "journalistic freedom", where the data gathered came as unstructured information fed by people from both inside and outside of the organization (AFP) and, therefore, lacks the criteria of validity and reliability to support its findings as in a technical research.

SIGNIFICANCE OF THE STUDY
The Martial Law years have created a fearful reputation for the AFP organizations. Because of this, no group has ever dared to conduct any formal research on corruption on the procurement system of a military organization. Thus, the significance of this research couldn't possibly be overstated.

This research would provide a vivid picture of what used to be a restricted domain of the AFP. It could also be seen as a microcosmic representation of the procurement systems of various government agencies.

METHODOLOGY

RESEARCH DESIGN
The survey design was used since it is the most applicable for the quantitative-descriptive and quantitative-explanatory approaches of this research.

UNITS OF ANALYSIS
The following are the units of analysis:

1. The Philippine Navy. It is represented by its five major units based in the Manila-Cavite area namely; Headquarters Philippine Navy, Headquarters Support Group (HPN,HSG); Headquarters Philippine Fleet (HPHILFLT); Headquarters Philippine Marines (HPMAR); Naval Logistic Center (NLC) and the Naval Sea Systems Command (NASSCOM). These units were chosen because of their huge individual budgets and, therefore, are the main procuring agencies of the PN.

   a. HPN,HSG — The support unit of the main headquarters of the PN.

   b. HPHILFLT — One of two operating arms of the PN. This unit has the administrative control over all floating and air assets.

   c. HPMAR — The other operating arm of the PN. It has administrative control over all Philippine Marine (PMAR) brigades and other PMAR units.

   d. NLC — The main procuring agency of the PN. It is responsible for supplying the bulk of the logistical requirements of the whole PN.

   e. NASSCOM — The main service support group of the PN. It is also responsible for the repair of ships and other major equipment.

2. All offices involved in the procurement process.

3. Accredited dealers of the PN.

RESPONDENTS
The respondents chosen are the accredited dealers of the PN because they are considered to be insiders in the procurement system and they would be easier subjects to extract confidential information from, than the officers involved in the procurement system.

TECHNIQUES OF DATA COLLECTION
A primary technique of data collection (questionnaires) was used for this research. As for the sampling strategy, a simple random sampling from a sample frame of all the accredited dealers of the PN was initially planned. However, it was found that there was no updated list available and the said non-current list contained inactive or inexistent dealers, which made probability sampling inapplicable. Hence, purposive sampling methods were resorted to.

STATISTICAL TOOLS
Chi-square Statistic was used to establish the relationship between two nominal variables namely; boundary exchange and corruption. The application of said statistical tool was facilitated by the use of Statistical Package for Social Sciences (SPSS).

LIMITATIONS OF THE STUDY
Due to the sensitivity of the research subject, which could expose or incriminate a military organization like the Philippine Navy, the respondents may not have fully detached themselves from the physical or professional risks involved, despite the assurances of the researcher. Thus, the objectivity of some of their answers may have been affected by the fear of reprisal.