NPM 063-2013

Requesting Entity: Department of Agriculture (DA) Regional Field Office (RFO) No. 2

Issues Concern: Use of Limited Source Bidding (LSB) or Lease-to-Own Agreement in the Acquisition of Motor Vehicle



Whether the procurement of brand new utility motor vehicle through lease purchase or lease-to-own contract finds basis under Section 46 of the Implementing Rules and Regulations of Republic Act No. 9184.

The entire provision, x x x x pertains only to the lease of a specific class of subjects construction and office equipment. As such, the motor vehicle under the planned procurement activity must fall within the class of construction and office equipment in order x x x to properly invoke Section 46.

This does not mean, however, that procuring entities cannot lease, or enter into a variety of lease agreements for motor vehicles. x x x a lease-to-own arrangement is a variant of lease which involves procurement as defined under Section 5(aa) of the IRR.