Criteria for Vehicle Acquisition
- Number of vehicles based on actual field demand, not project cost
- Vehicle types follow Administrative Order No. 233 (2008) and National Budget Circular No. 446-A (1998)
- Purchase subject to approvals from Agency Head, DBM, and Office of the President
- Justification required proving purchase more advantageous than rental for long-duration projects
Regulations on Rental and Procurement
- Rental over 15 days requires DBM authorization (per EO 292 and DO No. 36, S. 2004)
- Projects lasting 24 months or more must include vehicle acquisition mode in the project contract
- Number and acquisition mode specified in tender/bid documents—responsibility of BAC Chairman and contract signatory
Contract and Turnover Provisions
- Purchase or lease-purchase/rent-to-own contracts must include provisions for cost deductions if vehicle turnover requirements are unmet
- Vehicles must be brand new, latest model, locally manufactured/assembled to minimize taxes and support local industry
- The Bureau of Equipment (BOE) to conduct mandatory inspections at start, end, and during the project to ensure compliance and prevent substitution
Pricing, Billing, and Payment Terms
- Vehicle costs billed at actual cost, excluding contractors' profit, overhead, contingency, and miscellaneous costs
- Official receipts from manufacturers or dealers required for billing; contractor-issued receipts not accepted
- Rental agreements for less than 24 months must specify vehicle details and be attached to billing documents
- Rental rates based on DPWH schedule and capped at authorized ACEL rates
- Provision for vehicles rented beyond 24 months to become DPWH property; cumulative rental must not exceed vehicle cost
- Bill of Quantities to itemize bare rental and operation/maintenance costs separately
- Final payments contingent on vehicle turnover and certification of good condition by BOE, RES, or AES
Turnover and Fleet Management
- Turnover of vehicles under rent-to-own or lease-purchase guided by DO No. 22 (2006) and related rules
- Transfers between offices require approval through the BOE and Bureau Director
- Vehicles added to augment existing fleet to address shortage (~1,500 units nationwide)
- Upgraded fleet prevents uneconomical maintenance of aging vehicles
- Violations subject to disciplinary and administrative sanctions
Effectivity and Supersession
- Order effective immediately upon adoption on January 4, 2010
- Supersedes inconsistent previous issuances
This comprehensive framework ensures systematic acquisition, utilization, monitoring, and turnover of service vehicles dedicated to infrastructure project supervision, optimizing governmental resources and operations.