PRRD streamlines rules on procurement of gov’t motor vehicles

MANILA — President Rodrigo Duterte has consolidated and rationalized the rules in the procurement of government vehicles and reiterated policy which prohibits “all government” agencies from acquiring and using luxury cars or SUVs.

In Administrative Order (AO) No. 14 signed Monday, Duterte has adopted a centralized procurement system consistent with his administration’s objective to “adopt economies of scale in its operations”.

Section 1 of the AO provides that national government “hereby adopts a policy of procuring in the most efficient and economic manner, motor vehicles that are cost effective, fuel-efficient and environment-friendly”.

It added the government motor vehicles should also be “at par with improvements and developments in the automotive industry and relevant technology”.

“There is a need to further streamline and rationalize the approval for requests to require government motor vehicles, in keeping with the principles of economy, efficiency, and check and balances,” stated in the President’s Order.

The AO covers all national government agencies (NGAs) under the executive branch, including government-owned or –controlled corporations (GOCCs), government financial institutions (GFIs) and state universities and colleges (SUCs) as well as local government units (LGUs).

Under the new AO, the secretary of the Department of Budget and Management (DBM) is authorized to approve the requests for motor vehicles procurement if the budgetary source shall be the national government funds.

On the other hand, local chief executives, including Punong Barangays, are authorized to approve requests if budgetary source shall be the LGU’s unencumbered local funds.

“The procurement of motor vehicles for use by NGAs, GOCCs, GFIs, and SUCs, as well as LGUs, shall remain subject to the recommendation and approval requirements herein prescribed,” according Section 6 of the Order.

The actual procurement shall be conducted in a centralized manner through the Procurement Service of DBM (DBM-PS), in accordance with the pertinent provisions of Republic Act No. 9184 or the “Government Procurement Reform Act” and its implementing rules and regulations.

Meanwhile, the AO reiterated the prohibition on the acquisition and use of luxury vehicles provided under AO No. 233 (s. 2008).

The luxury vehicles refer to cars and passenger vans o pick-up types vehicles, Asian Utility Vehicles (AUVs), crossover utility vehicles (CUVs) and multi-purpose vehicles (MPVs) with gasoline-fed engine displacement exceeding 2500cc and diesel-fed engine exceeding four cylinders.

Sports Utility Vehicle (SUV) with a gasoline-fed engine displacement exceeding 27000cc is also considered ‘luxury vehicle’ under the AO.

The Order, however, does not cover motor vehicles being used for security reasons and purposes for the President and Vice President, “donated in kind” to the Philippine government, used for visiting foreign dignitaries, and those acquired using funds from existing official development assistance programs.