The acquisition of government-owned motor vehicles will now be under a centralized procurement system, following the directive issued by the Office of the President through Administrative Order No. 14. This is to ensure that the acquisition of government motor vehicles will be guided by the principles of functional suitability, affordability, and practicability.
The new system will also ensure that the guidelines on the technical specifications of motor vehicles are up to date, and will prohibit the acquisition of luxury motor vehicles in all national government agencies, including government-owned or controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), as well as local government units (LGUs).
A centralized procurement system is consistent with the government’s objective to adopt economies of scale in its operations by purchasing from legally, technically, and financially capable sources in economic lot sizes, observing cost-efficient specifications, and making prompt payments. Such a system will also economize the procurement of government vehicles by streamlining and rationalizing the approval process for requests in an efficient manner.
For purposes of AO No. 14, the term "motor vehicle" shall refer to:
- Any self-propelled, four (4) wheeled road vehicle including, but not limited to, sedans, coupes, station wagons, convertibles, pick-ups, vans,assembled owner- or passenger-type jeeps/jitneys/jeepneys, sports utility vehicles (SUVs), Asian Utility Vehicles (AUVs), crossover utility vehicles (CUVs), and multi-purpose vehicles (MPVs);
- Delivery trucks, fire trucks, dump trucks and buses;
- Heavy equipment such as bulldozers, payloaders, graders, forklifts,amphibian trucks and cranes;
- All-terrain vehicles, armored vehicles and specific-purpose vehicles;
- Aircraft; and
- Motorized bancas, motorized boats and seacraft, as may be defined in relevant laws and issuances.
Furthermore, the prohibited "luxury vehicles" shall refer to any of the following:
- Car (sedan or hatchback) with an engine displacement exceeding 2500cc, if gasoline-fed: or 3500cc, if diesel-fed; and/or with an engine exceeding four (4) cylinders;
- Passenger van or pick-up type vehicle with an engine displacement exceeding 2500cc, if gasoline-fed; or 3000cc, if diesel-fed; and/or with an engine exceeding four (4) cylinders;
- AUV/CUV/MPV with an engine displacement exceeding 2500cc, if gasoline-fed; or 2800cc, if diesel-fed; and/or with an engine exceeding four (4) cylinders; or
- SUV with an engine displacement exceeding 2700cc, if gasoline-fed; or 3000cc, if diesel-fed; and/or with an engine exceeding four (4) cylinders.
Lastly, AO No. 14 covers all government motor vehicles, except the following:
- Vehicles used for security reasons and purposes for the President and Vice President;
- Vehicles donated in kind to the Philippine Government or any of its agencies and instrumentalities by foreign governments, and bilateral and multilateral institutions;
- Vehicles used for visiting foreign dignitaries maintained by the Office of the President-Proper and the Department of Foreign Affairs (DFA);
- Vehicles acquired using funds from existing official development assistance programs according to the terms thereof.
Earlier this year, the Department of Budget and Management- Procurement Service (DBM-PS) had also enhanced the procurement system by launching a better government electronic procurement portal (PhilGeps) Version 1.5, which incorporated a more advanced operating system. Under this new system, online bid and submission and payment can now be accepted through PhilGeps. A new feature was also devised to facilitate requests for purchase orders, quotations, and other transactions under what we call e-catalogue.