NPM 022-2006

Requesting Entity: Commission on Audit-Pampanga

Issues Concern: Procurement of a Second Hand Mitsubishi Delica, 2003 Model with Four Wheel Drive



Whether Barangay Balanti may procure a second hand Mitsubishi Delica model 2003 with four wheel drive.

Under Administrative Order No. (A.O.) 339 and National Budget Circular No. 446-A, punong barangays 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 other appropriate rules and regulations.

It bears stressing, however, that said procurement of second-hand vehicle must 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.

Further, reference to brand names is prohibited under Section 18 of R.A. 9184. We thus recommend that, instead of specifying a specific brand and/or model, the barangay during the public bidding expressly provide in its bidding documents the detailed specifications or descriptions of its desired vehicle to enable it to acquire the type or class of motor vehicle peculiar to its needs.