NPM 025-2006

Requesting Entity: Barangay Tigum - Municipality of Pavia, Iloilo

Issues Concern: Procurement of Second-Hand, Gasoline Engine, Two Wheel Drive, Multi-Cab Vehicle



Requesting permission for Barangay Tigum to procure a second-hand, gasoline engine, two-wheel drive, multi-cab vehicle.

[U]nder Administrative Order No. (A.O.) 339 dated 6 June 1997 and National Budget Circular No. 446-A dated 30 January 1998, punong barangays, without need of securing permission from the Government Procurement and Policy Board, are authorized to procure transport and heavy equipment for their respective barangays out of unencumbered local funds covered by an appropriations ordinance, subject to specifications prescribed in A.O. 339 and any other rules and regulations.

[H]owever, that said procurement of second-hand vehicle must still follow the procedure prescribed in Republic Act No. (R.A.) 9184, i.e., conduct of competitive public bidding, unless circumstances warrant resort to any of the alternative modes of procurement. Consequently, in Non-Policy Opinion (NPM) No. 138-2004, this office has resolved that purchase of a second-hand vehicle through an auction is not sanctioned by R.A. 9184.