Law Summary
General Policy on Government Motor Vehicles
- Ensures efficient and effective use of government motor vehicles
- Acquisition limited to necessary vehicles for authorized officials or functional transport needs
Restrictions on Use of Funds for Motor Vehicles
- Prohibits use of government funds for motor vehicle purchase except:
- Medical ambulances, military and police patrol vehicles, utility vehicles, road construction equipment, motorized bancas, vehicles for mass transport publicly necessary
- Authorized by Department or agency head and DBM Secretary
- Vehicles authorized by President, Senate President, Speaker, or Chief Justice
Authorized Official Users of Government Motor Vehicles
- Officials authorized include: President, Vice-President, Senate President, Speaker, Chief Justice, Secretaries and equivalent ranks, Court of Appeals Presiding Justice, top diplomatic officials, AFP Chiefs, Heads of Constitutional Commissions
- Additional authorization possible from top officials with costs charged to respective offices
Limitations on Rental of Motor Vehicles
- Rental cannot exceed continuous period of 15 days without Secretary of Budget and Management approval
Authority to Purchase Motor Vehicles
- NGAs, GOCCs, LGUs may purchase specified utility and service vehicles upon agency head and DBM Secretary approval
- Presidential approval required for passenger cars, fully imported chassis vehicles, aircrafts, and seacrafts
- Legislative and Judicial branches require approval of their respective heads instead of President
Vehicle Types, Classification, and Specifications
- Purchases must comply with Motor Vehicle Classification and Specifications Guide (MVCSG)
- DBM may reduce or alter vehicle types/specifications for cost-efficiency and suitability
Cost and Accounting of Acquisition
- Acquisition cost strictly based on approved specifications
- Subject to accounting and auditing regulations
Modes of Acquisition
- Vehicles may be acquired via outright purchase or assembly with local chassis and surplus/reconditioned engines
- Assembly permitted when new vehicles unavailable or cost-prohibitive, or suited for local terrain
- Requires agency head and DBM Secretary approval
Official Vehicle Entitlement
- Officials entitled by law plus assistant secretaries and bureau/regional directors upon Presidential approval
- One vehicle per official generally; Cabinet secretaries may have a security detail vehicle pending justification and higher authorization
Replacement of Motor Vehicles
- Criteria for replacement:
- 7 years old and 175,000 kms for cars and service vehicles
- 5 years old and 150,000 kms for utility vehicles
- Early replacement allowed if unserviceable with proper inspection report or if maintenance costs exceed 30% of new vehicle price
Submission of Motor Vehicle Inventory
- NGAs, GOCCs, LGUs must submit complete up-to-date vehicle inventory within 60 days
- Inventory to cover all units including field offices
- One-time submission forms the baseline for future actions
- Agencies must notify of acquisitions/disposals for updates
- Agencies without vehicles must submit inventory form indicating none
- Requests without inventory submission will be rejected
Supporting Documents for Purchase Requests
- Requests require agency head approval and must attach:
- Motor Vehicle Inventory if not previously submitted
- Certification of fund availability (depending on agency nature)
- Details on vehicle number, type, specs, cost
- User-official and intended uses
- Replacement requests require inventory and inspection report of unit to be replaced
Rental of Motor Vehicles
- Authorized rental up to 15 days for:
- Agency functions requiring guests/visitors transport
- Events needing participant transport
- Presidential ad-hoc bodies/task forces
- Urgent/emergency operations like disaster response
- Rentals beyond 15 days need Secretary of Budget and Management approval
- Requests for rental authority must include justification, vehicle details, rental duration, and fund certifications
Effectivity
- Circular effective immediately upon issuance (Nov 24, 1995)