Requesting Entity: Department of Finance (DOF)

Issues Concern: Republic Act (RA) No. 9184 in the Procurement of Used Motor Vehicles


Applicable law in the procurement of used motor vehicles

RA No. 9184 or the Government Procurement Reform Act and its Implementing Rules and Regulations (IRR) Part A, do not prohibit the procurement of second-hand vehicle/equipment. It is the procurement of second-hand vehicle/equipment through an auction that is prohibited by RA No. 9184 for reasons stated in Non-Policy Opinion No. 138-2004 dated 26 October 2004.

It bears stressing, however, that when the procuring entity decides to procure second-hand goods and equipment, considerations as to durability, remaining useful life, warranty, price, and such other relevant factors should be carefully factored in to be able to secure a contract that is most advantageous to government. In this regard, we reiterate that the purchase of second-hand equipment and vehicles may be done through RA No. 9184 and its IRR, provided that the rules on public bidding or the alternative modes of procurement, if allowed by the circumstances, are followed.