Government Procurement

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...