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Vehicle Rental

Post by venom.0420 on Wed Mar 25, 2009 1:04 am

Why is it that government entities are only allowed to rent automobiles for a maximum period of 15 days? We need a shuttle vehicle every year so we hire them for a period of 15 days. Each 15-day period is bidded. The paper works are just too voluminous for such a small but necessary kind of project. Can anyone recommend how to procure such services in a more effective and efficient way than bidding it every now and then?

Your inputs will be highly appreciated. Very Happy
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Re: Vehicle Rental

Post by engrjhez® on Wed Mar 25, 2009 11:56 am

If you perpetually require vehicle rentals, you might want to as well include that to your (amended) APP. I am not familiar with such restriction (the 15-day period), but granted for the purpose of discussion that is true, here's a recommendation:

Bid out vehicle rentals for the entire year. If for example, your agency required 24-packages (each package for 15-days for the entire year), then you may stipulate it on the Terms of Reference (TOR) and ultimately on the Contract Agreement. Since we initially assigned the 15-day service as one (1) package, bidding is based on package basis. After the award (and the contract), each time a package is rendered (completed) the winning bidder may file their request for payment to the accounting (this must be well defined in the contract). All other subsequent payment follows the fact that the hiring of such services is already bidded and awarded, hence progress billing shall adopted thereafter.

The same may be designed for procurement of food stuff (especially on LGUs). Please see my recommendation on this parallel discussion:

http://gppb.topicsolutions.net/alternative-methods-of-procurement-f9/authority-to-draw-cash-advance-t84.htm#337
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Re: Vehicle Rental

Post by RDV @ GP3i on Wed Mar 25, 2009 12:34 pm

venom.0420 wrote:Why is it that government entities are only allowed to rent automobiles for a maximum period of 15 days?

Government entities are allowed to rent continuously even beyond the maximum period of 15 days, but you need to secure first approval from the DBM. (To find out the documentary requirements, please follow this link: http://www.gov.ph/faqs/govemp/doc_acquisition.htm

If rental of motor vehicle does not exceed a continuous period maximum period of 15 days, then there is no need for prior approval of the DBM. Why the limitation? Because if you need a motor vehicle for a longer period of time, rental may not be the most optimal option. I think, the 15-day maximum period was set to discourage rental of motor vehicles on a continuous basis. If funds are available for rental for longer periods, it would be more advisable to use the funds to buy a motor vehicle instead. However, there are also situations where rental of motor vehicles even for longer periods are necessary and more optimal, such as motor vehicles used by Philippine embassy/diplomats in various diplomatic posts abroad.

The suggestion of engrjhez on how the lease of motor vehicles (procurement of goods) could be procured under R.A. 9184 could be adopted.
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