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  • Government Procurement Policy Board - Leasing of Vehicles

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    Elizabeth Joy A. Fadri
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    The document discusses whether a lease-to-own agreement for the procurement of a utility motor vehicle would be allowed under Section 46 of the Implementing Rules and Regulations of Republic Act No. 9184. It determines that while Section 46 only allows for the lease of construction and office equipment, other lease agreements for motor vehicles are still possible procurement methods. Specifically, a lease-to-own arrangement would be considered a procurement activity defined under Section 5(aa) of the IRR. However, the motor vehicle would need to fall under the class of construction and office equipment to properly use Section 46.

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    The document discusses whether a lease-to-own agreement for the procurement of a utility motor vehicle would be allowed under Section 46 of the Implementing Rules and Regulations of Republic Act No. 9184. It determines that while Section 46 only allows for the lease of construction and office equipment, other lease agreements for motor vehicles are still possible procurement methods. Specifically, a lease-to-own arrangement would be considered a procurement activity defined under Section 5(aa) of the IRR. However, the motor vehicle would need to fall under the class of construction and office equipment to properly use Section 46.

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    9 views3 pages

    Government Procurement Policy Board - Leasing of Vehicles

    Uploaded by

    Elizabeth Joy A. Fadri
    The document discusses whether a lease-to-own agreement for the procurement of a utility motor vehicle would be allowed under Section 46 of the Implementing Rules and Regulations of Republic Act No. 9184. It determines that while Section 46 only allows for the lease of construction and office equipment, other lease agreements for motor vehicles are still possible procurement methods. Specifically, a lease-to-own arrangement would be considered a procurement activity defined under Section 5(aa) of the IRR. However, the motor vehicle would need to fall under the class of construction and office equipment to properly use Section 46.

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    © All Rights Reserved
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    1/7/22, 6:12 PM Government Procurement Policy Board - Technical Support Office

    (transparency_seal.php) (https://www.foi.gov.ph)

    (https://www.gppb.gov.ph/assets/pdfs/BRWFC017CAA7FB0_010918_split_2.pdf)

    2013-06-27
    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

     
    Details

    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.

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    REPUBLIC OF THE PHILIPPINES

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    1/7/22, 6:12 PM Government Procurement Policy Board - Technical Support Office

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    https://www.gppb.gov.ph/GPPBTSO_Non-Policy/983 2/3
    1/7/22, 6:12 PM Government Procurement Policy Board - Technical Support Office

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