NPM 029-2006

Requesting Entity: Municipality of Badiangan, Iloilo

Issues Concern: Procurement of Second-Hand Heavy Equipment and Service Vehicle



Requesting for exemption from the alleged prohibition tacitly provided under Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A) on the procurement of a second-hand heavy equipment and a service vehicle by the Municipality of Badiangan.

[P]rocurement of second-hand vehicles is not prohibited by R.A. 9184 and its IRR-A. It is the procurement of second-hand vehicle through an auction that is prohibited by R.A. 9184 for reasons we have stated in our Non Policy Matter Opinion No. 138-2004 dated 26 October 2004.

Local Government Units are authorized to procure second-hand or reconditioned vehicles under National Budget Circular No. 446-A dated 30 January 1998 of the Department of Budget and Management, without need of securing a permission from the Government Procurement and Policy Board, subject to the specifications prescribed under Administrative Order No. 339 dated 6 June 1997 and other applicable rules and regulations.