The government procurement law (RA 9184) and its implementing rules and regulations (IRR) do not prohibit government agencies to procure second-hand or used motor vehicles and/or equipment, provided, the same is not procured through an auction and that procurement processes as prescribed under the law are strictly followed.
Why procuring in an auction is prohibited?
The Government Procurement Policy Board (GPPB) explained in its Non-Policy Matter Opinion No. 138-2004 dated October 26, 2004 that the practice of purchasing second-hand equipment from an auction, when analyzed, partakes the nature of Direct Contracting, where the procuring agency directly contracts with one selected and preferred supplier or contractor. However, such purchase from an auction, cannot still be allowed considering that procurement through Direct Contracting may only be resorted to in the presence of the specific conditions mentioned under Sections 48 (b) and 50, of R.A. 9184 and its IRR-A, respectively.
Moreover, in procuring second-hand motor vehicles and/or equipment, the durability, remaining useful life, warranty, price and such other relevant factors must be duly considered in order to ensure favorable advantage to the government.
The government agency must also ensure that the specifications (i.e., second-hand/used) of the motor vehicle/equipment to be procured must be clearly stated in the bidding documents.
Source: GPPB-NPM-019-2018 and GPPB-NPM-043-2012
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