Question & AnswerQ&A (DPWH DEPARTMENT ORDER NO. 03, S. OF 2010)
The main purpose is to provide guidelines for the acquisition of motor vehicles for effective infrastructure project supervision, ensuring economy, efficiency, transparency, accountability, and equitable allocation in the management of these vehicles.
The number of vehicles shall be commensurate with the actual demand in the field and not based on the project cost.
The request must contain justification or computation showing that purchasing vehicles is more advantageous than pure rental, and comply with all documents required under National Budget Circular No. 446 and Administrative Order No. 233.
The Agency Head, Department of Budget and Management (DBM), and the Office of the President must approve the purchase.
Rental of motor transport equipment for more than 15 continuous days needs authorization by the DBM in accordance with Executive Order No. 292 and Department Order No. 36, Series of 2004.
The mode of acquisition of service vehicles through procurement must be included explicitly in the project contract.
The BAC Chairman and the contract signatory representing DPWH are responsible for ensuring that the number and mode of acquisition of vehicles are explicitly specified in tender/bid documents.
There must be a provision that if the contractor/consultant fails to comply with turnover requirements, the original cost of the vehicle shall be deducted from the final billing, and any remaining balance must be paid by the contractor/consultant.
Vehicles should be brand new, preferably the latest model, locally manufactured or assembled to save on import taxes, support local industries, and ensure parts sustainability.
The BOE must inspect vehicles for compliance with contract specifications at the start, during, and end of project implementation, maintain records, and ensure no substitution of vehicles occurs.
Billing shall be at cost only, excluding contractor's profit, overhead, contingency, miscellaneous, and other indirect costs. It may be lump sum or progress billing.
Vehicles rented for projects extending beyond 24 months automatically become the property of DPWH.
Rental agreements must specify unit details including model, chassis number, engine number, and plate number, and be attached to progress billings.
Proof of turnover of vehicles and certification from BOE, RES, or AES that vehicles returned are in good condition is required before final payment.
Turned-over vehicles shall be governed by Department Order No. 22, series of 2006, approved transfers must go through BOE, and vehicles are used to augment or upgrade the existing fleet.
Violations can result in disciplinary action and possible administrative charges.
It took effect immediately upon adoption on 4 January 2010 and supersedes inconsistent prior issuances.