Prescribing the Supplemental Guidelines on the Grant of the FY 2021 Performance-Based Bonus

December 3, 2021 REVENUE MEMORANDUM ORDER NO. 36-2021 TO : All Revenue Officials Concerned SUBJECT : Prescribing the Supplemental Guidelines on the Grant of the FY 2021 Performance-Based Bonus (PBB) per Administrative Order No. 25 Inter-Agency Task Force Memorandum Circular (IATF-MC) No. 20 21-2 and Amending Certain Portions in RMO No. 31-20 21 re: Prescribing the Criteria/Conditions on the Reporting Compliance for the Grant of the FY 2021 PBB under E.O. No. 80, s. 2012 and E.O. No. 201, s. 2016 I. OBJECTIVE This Order is issued: 1. To prescribe clarifications and additional information on the requirements in the FY 2021 PBB Targets and Agency Accountabilities as stated in Section 4.0 and 5.0, respectively, per Administrative Order No. 25 Inter-Agency Task Force (IATF) Memorandum Circular (MC) No. 2021-2; and 2. To amend certain portions in RMO No. 31-2021 dated August 30, 2021 relative to the Guidelines on the Reporting Compliance on the Grant of the FY 2021 Performance-Based Bonus (PBB) Requirements per AO25 IATF MC No. 2021-1. II. SUPPLEMENTAL GUIDELINES AND CLARIFICATIONS A. Four Dimensions of Accountability The following are additional requirements which the Bureau must satisfy in compliance with the FY 2021 PBB criteria and conditions under the four dimensions of accountability: 1. Performance Results . The Bureau must ensure the uploading of the quarterly Budget and Financial Accountability Reports (BFARs) on the Department of Budget and Management-Unified Reporting System (DBM-URS), in a timely manner within thirty (30) days after the end of each quarter. The quarterly BFARs shall be used in the assessment of the FY 2021 Performance Results accomplishments of the Bureau. For deficiencies or non-attainment of FY 2021 targets, justifications must be submitted together with the 4th quarter Budget and Financial Accountability Report (BFAR) to the DBM thirty (30) days after the end of the 4th quarter of FY 2021. 2. Process Results . For the assessment of accomplishments under Process Results, the Bureau may submit to the AO25 Secretariat evidence and/or documentation of ease of transaction through one or a combination of the following: 2.1 Report objectively verifiable evidence of achievements in ease of doing business or ease of transaction for frontline services covering all government-to-citizens, government-to-business, and government-to-government transactions using Form A as provided in Annex 3 of IATF MC No. 2021-1 and circularized in RMC No. 85-2021. The report should highlight the tangible improvements from the viewpoint of the transacting public in terms of access, turnaround time, transaction costs, documentary and other requirements. 2.2 Report on the digitization initiatives or digital transformation of frontline and non-frontline services through the development of electronic or online and/or paperless application systems, payment systems, new service delivery channels, contactless transactions, and other process improvements using information technology. The report should highlight time tangible results of digitization in terms of ease of doing business or ease of transaction from the point of view of the transacting public. 2.3 Standard operating procedures, manual or documentation of service delivery standards for frontline and non-frontline services of the agency, including those implemented at the Regional, Satellite, and Extension Offices. The report should highlight the tangible results of standardization of the frontline and non-frontline services in assuring ease of transaction and doing business with the agency. 2.4 Valid ISO QMS certification or equivalent certification of frontline and non-frontline services of the agency, as of 31 December 2021. The certificate must indicate the scope of certification. 3. Financial Results . The Bureau must ensure the uploading of the quarterly BFARs on the DBM-URS, in a timely manner within thirty (30) days after the end of each quarter. The submitted FY 2021 Financial Accountability Reports (FAR) No. 1 Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances or SAAODB shall be the basis in determining the FY 2021 budget utilization rate (BUR) accomplishment of agencies. As mentioned in MC No. 2021-1, the requirement for the FY 2021 Financial Results is the total Disbursements BUR of agencies. The total Disbursements is net of transfers to the Procurement Service (PS), Philippine International Trading Corporation (PITC), and other implementing agencies which have not been delivered. Further, reiteration on the other BUR requirements under Financial Results as prescribed in Section 4.3 of IATF MC No. 2021-1 and circularized in RMC No. 85-2021, pertaining to the BUR for GOCCs, agencies with fund transfers, and the BUR for SUCs including the Earmarked Income. 4. Citizen/Client Satisfaction Results . The Bureau shall submit to the AO25 Secretariat the results of the FY 2021 Citizen/Client Satisfaction Survey (CCSS) and may provide evidence on the resolution of reported complaints from Hotline #8888 and Contact Center ng Bayan (CCB) received in FY 2021. 4.1 FY 2021 CCSS : a. The Reports on the CCSS should follow the prescribed requirements and rating scale as stated in Annex 4 of IATF MC No. 2021-1 "Guide in Conducting the CCSS" and as circularized in RMC No. 85-2021. The report should include a description of the methods and rating scale used in determining the FY 2021 Overall Satisfaction Score for its services. b. Report the overall agency rating in the service quality dimensions and overall agency citizen/client satisfaction score for the reported services. 4.2 Resolution of Reported Complaints from Hotline #8888 and Contact Center ng Bayan (CCB) : a. In consideration to its first year of implementation, the requirements under this target shall only cover the resolution rate of agencies to the complaints received from Hotline #8888 and CCB in FY 2021. Agencies may submit reports, evidence, and/or documentation summarizing the Hotline #8888 and CCB complaints received in FY 2021 and their status if resolved or pending, as complemented in the data gathered from Hotline #8888, CCB databases, and the monthly reports provided by the Office of the President and the Civil Service Commission to all agencies. b. Reported complaints and grievances shall cover government service and procedures of the agencies, acts of red tape, corruption, and/or other interferences to public service delivery by any government agency, individuals, or instrumentalities. c. To determine the resolution and compliance rates to Hotline #8888 and CCB complaints, agencies may refer to the following: PORTALS RESOLUTION RATE COMPLIANCE RATE Hotline #8888 The percentage of tickets acted upon or closed tickets by a government agency against the total number of endorsed tickets by the Hotline #8888 Citizen's Complaint Center (CCC) without consideration of the 72-hour period to take action as prescribed in Executive Order (EO) No. 6, s. 2016. The percentage of tickets acted upon or closed tickets by a government agency within the 72-hour period to take action, as prescribed in EO No. 6, s. 2016. Contact Center ng Bayan (CCB) Negative feedback on government services, processes, and procedures lodged through the CCB are considered resolved after the agency has responded to the referral and provided detailed action taken to correct the reported dissatisfaction and prevent its reoccurrence. If the particular concern cannot be acted upon, the agency has to provide an explanation as to why it cannot be addressed. The negative feedback will be considered resolved upon receipt of the reply/explanation from the agency. If the complaint involves an administrative case, the CCB will still forward the negative feedback to the agency and will request an update on the status of the case. Upon receipt of the reply, the CCB will inform the customer of the feedback from the agency and will consider the ticket resolved. Percentage of negative feedback resolved by the agency within the prescribed timeline of 72 hours over the total number of negative feedback received within a particular period. For Hotline #8888, a concrete and specific action shall refer to the actual and factual action to the complaint. It must be within the mandate of the agency and a clear, specific, and relevant response to the concern of the caller. As much as the circumstances permit, the caller shall be given advice on the concrete and specific action taken or feedback on the status of the concern until its resolution, and the agency shall inform the #8888 CCC, through their respective #8888 Agency Portals, of the action taken on the complaint, concern, or request. The #8888 CCC requires proof of concrete and specific action taken and proof of communication to the caller. B. Agency Accountabilities Clarification on "Undertaking of Early Procurement Activities," to wit: 1. Undertaking of Early Procurement Activities (EPA) . As stated in Section 3.0 of the Guidelines in the Conduct of Early Procurement Activities as a Requirement for the Grant of the PBB, to be eligible for the PBB, the Procuring Entities that receive budgetary support from the National Government based on the National Expenditure Program are required to successfully undertake EPA for at least 50% of the value of its Eligible Procurement Projects (EPPs). Procuring Entities shall submit an EPA Certification under Oath to the GPPB-TSO on or before 31 January of the fiscal year through email; [emailprotected] . (See Supplemental Annexes A, A1, and A2) III. AMENDATORY PROVISIONS The following items in RMO No. 31-2021 are hereby amended: 1. Section III.7 Table 4: Rating Scale The requirements under the Citizen/Client Satisfaction Results shall be scored following this modified rating scale ; TABLE 5: RATING SCALE FOR CITIZEN/CLIENT SATISFACTION RESULTS 1 2 3 4 5 No submission/ Did not conduct CCSS Low satisfaction rate with unresolved #8888/CCB complaints Average to high satisfaction rate with unresolved #8888/CCB complaints Average satisfaction rate with 100% #8888/CCB complaints resolved High satisfaction rate with 100% #8888/CCB complaints resolved 2. Section IV.1 (D)/Section D of Annex A (Dimension of Accountability) REPORT RESPONSIBLE OFFICE DEADLINE FOR SUBMISSION D. Citizen/Client Satisfaction Result Citizen/Client Satisfaction Report (Annex 4) For RRs (for CSS): CSS through TSPMD To TSPMD January 20, 2022 To RSD on or before January 25, 2022 For National Office/RRs (for OCS and eCAR): PMS through the Research and Statistics Division (RSD) On or before January 31, 2022 Report on the resolution of all reported complaints received from Hotline No. 8888 and Contact Center ng Bayan All offices and RDOs concerned: CSS through Public Information and Education Division (PIED) On or before February 15, 2022 3. Section IV.2 (2.6) and (2.7) REPORT DEADLINE FOR SUBMISSION RESPONSIBLE OFFICE(s) VALIDATING AGENCY 2.6 Procurement Documents Indicative FY 2022 APP-Non CSE On or before 30 September 2021 HOPE Bids and Awards Committee (BAC) BAC Secretariat Support Offices: National Office Resource Management Group (RMG), FS, BD, AdS and PrD Regional office OARD, FD, and AHRMD DBM-OCIO 2.7 Undertaking of Early Procurement Activities covering 2022 Procurement Projects On or before 31 January of the fiscal year National and Regional Offices: HOPE BAC TWG BAC Secretariat Project Proponents: GPPB-TSO IV. REPEALING CLAUSE The pertinent portions of RMO No. 31-2021, which are inconsistent herewith, are hereby repealed, amended or modified accordingly. V. EFFECTIVITY This Order takes effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Guidelines in the Conduct of Early Procurement Activities as a Requirement for the Grant of the Performance-Based Bonus (Guidelines) 1.0 Objective This Guidelines is being issued in view of the requirement to conduct Early Procurement Activities (EPA) for purposes of the grant of Performance-Based Bonus (PBB). 4 2.0 Definition EPA refers to the conduct of procurement activities from the posting of opportunity, if required, until recommendation of the Bids and Awards Committee (BAC) to the Head of the Procuring Entity (HoPE) to award the contract, pending approval of the funding source. 5 The rules for the conduct of EPA is governed by Government Procurement Policy Board (GPPB) Circular No. 06-2019. 6 3.0 EPA as PBB Requirement Procuring Entities (PEs) 7 that would like to be eligible for the grant of PBB are required to successfully undertake EPA for at least fifty percent (50%) of the value of its eligible Procurement Projects (EPPs) pursuant to Administrative Order (AO) No. 25 Inter-Agency Task Force (IATF) Memorandum Circular (MC) No. 2020-1. 8 4.0 Compliance Requirements 4.1 The conduct of EPA is required for PEs receiving budgetary support from the National Government based on the National Expenditure Program (NEP) . 4.2 PEs are required to undertake EPA for at least fifty percent (50%) of the value or amount of EPPs included in its Indicative Annual Procurement Plan (APP) 9 upon the issuance of the NEP. 10 4.3 EPPs shall refer to Goods, Infrastructure Projects, and Consulting Services reflected in the PE's indicative APP based on the NEP to be undertaken through Competitive Bidding and Alternative Methods of Procurement under Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR), except for the following: a. Repeat Order (Section 51); b. Shopping (Section 52); c. Negotiated Procurement Emergency Cases (Section 53.2); d. Negotiated Procurement Take-Over of Contracts (Section 53.3); and e. Negotiated Procurement Small Value Procurement (Section 53.9). 11 In addition to the above exceptions, procurement of Common-Use Supplies and Equipment (CSE) shall be excluded in the EPA requirement since PEs are mandated to directly procure CSEs from the Department of Budget and Management-Procurement Service (DBM-PS). 12 4.4 All PEs shall submit an EPA Certification under Oath to the GPPB-Technical Support Office (TSO), as the case may be, thus: Status Description EPA Certification Template Successfully undertaken The PE has undertaken EPA and recommended for award of contract at least fifty percent (50%) of the total amount of the EPPs. Certification of undertaking or non-undertaking (Template in Annex "A-1") Not successfully undertaken The PE has undertaken EPA, however, only less than fifty percent (50%) of the value of EPPs were recommended for award of contract. Not undertaken The PE did not undertake EPA despite the existence of EPPs. Not covered by the EPA requirement The PE has no EPPs for the conduct of EPA as required for the grant of PBB. Certification of Exception from EPA (Template in Annex "A-2") 4.5 The fifty percent (50%) compliance requirement for the conduct of EPA shall be computed using this formula: Amount 13 of Successful EPA projects 14 X 100 = % of Successful EPA projects Total Amount of EPPs 15 4.6 The EPA Certification under Oath shall be submitted to the GPPB-TSO on or before 31st of January of the fiscal year through electronic (e-mail) at [emailprotected] . Given the limited mobility and in consideration of health and safety protocols being implemented to avoid the transmission of Corona Virus Disease 2019, submissions in printed copy shall not be accepted. In case the deadline falls on a weekend or a regular or special holiday, the deadline shall be on the next business day. PEs will receive an auto-acknowledgement receipt from the GPPB-TSO upon receipt of the EPA Certification under Oath sent through e-mail. Note that this acknowledgment receipt shall be the only acceptable proof of submission . 4.7 The GPPB-TSO shall consider PEs compliant with the EPA requirement for the grant of PBB if the submitted Certification complies with the following: a. Used the prescribed and applicable template for EPA Certification under Oath; b. Shows that the PE has either successfully undertaken EPA for at least fifty percent (50%) of the total amount of EPPs or has no EPPs for the conduct of EPA. In case of failure to conduct at least fifty percent (50%) of the total amount of EPPs, the provision in Item 4.8 shall apply; c. Bears the approval of the HoPE and is duly notarized; and d. Submitted within the deadline. 4.8 PEs with EPPs which are not able to comply with the EPA requirement must provide a valid reason or justification in the certification. The reason or justification will be reviewed and evaluated to determine acceptability. Failure to provide any valid reason or justification on the non-undertaking or non-achievement of the required fifty percent (50%) shall constitute outright non-compliance. ANNEX A-1 Certification of Undertaking/Non-Undertaking of Early Procurement Activities I hereby certify that the [ State : Complete Name of Procuring Entity] has [ Choose whichever applies: [ ] successfully undertaken/[ ] unsuccessfully undertaken/[ ] not undertaken] Early Procurement Activities (EPA) for eligible Procurement Projects based on the agency's Indicative Annual Procurement Plan consistent with the National Expenditure Plan (NEP) for Fiscal Year ____ in the following amounts: Description 16 Total Amount (in PhP) a. Total Amount in Indicative APP based on NEP __________________ b. Less: Exceptions 17 __________________ c. Total Amount of Eligible Procurement Projects [c = (a-b)] __________________ d. Amount of Successful 18 EPA projects __________________ e. Percentage of Successful EPA [e = (d/c)*100] __________________ <In case the agency did not undertake EPA or was not able to achieve the required 50%, please indicate reason/s and justification on this portion> This Certification is being made in compliance with the Guidelines on the Grant of the Performance-Based Bonus for the Fiscal Year ____, of the Administrative Order No. 25 Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems. The undersigned attests to the accuracy of all information contained herein based on available records and information that can be verified with the [Name of Agency] and the Philippine Government Electronic Procurement System. IN WITNESS HEREOF , I have hereunto affixed my signature on (date) ___________________ in (city, province) ________________, Philippines. _____________________________________ (NAME OF HEAD OF THE PROCURING ENTITY) (POSITION) SUBSCRIBED AND SWORN to before me this (date) __________, in (city, province) __________, Philippines, with affiant exhibiting me his/her (government-issued ID) __________ issued on (date of issuance) __________ at (place of issuance) __________. NOTARY PUBLIC Doc. No. _______ Page No. _______ Book No. ______ Series of _______ ANNEX A-2 Certification of Exception from Early Procurement Activities I hereby certify that the [Complete Name of Procuring Entity] has no eligible Procurement Projects for the conduct of Early Procurement Activities based on the agency's Indicative Annual Procurement Plan consistent with the National Expenditure Program. This Certification is being made in compliance with the Guidelines on the Grant of the Performance-Based Bonus for the Fiscal Year _______, of the Administrative Order No. 25 Inter-Agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems. The undersigned attests to the accuracy of all information contained herein based on available records and information that can be verified with the [Name of the Procuring Entity] and the Philippine Government Electronic Procurement System. IN WITNESS HEREOF , I have hereunto affixed my signature on [Date] in [City, Province], Philippines. (NAME OF HEAD OF THE PROCURING ENTITY) (POSITION) SUBSCRIBED AND SWORN to before me this (date) __________, in (city, province) __________, Philippines, with affiant exhibiting me his/her (government-issued ID) __________ issued on (date of issuance) __________ at (place of issuance) __________. NOTARY PUBLIC Doc. No. _______ Page No. _______ Book No. _______ Series of _______ Footnotes 1. Note from the Publisher: Copied verbatim from the official document. Missing Footnote Reference and Footnote Text. 2. Note from the Publisher: Copied verbatim from the official document. Missing Footnote Reference and Footnote Text. 3. Note from the Publisher: Copied verbatim from the official document. Missing Footnote Reference and Footnote Text. 4. See Memorandum Circular No. 2021-1 or the Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year (FY) 2021 Under Executive Order No. 80, s. 2012 and Executive Order No. 201, s. 2016 dated 3 June 2021. 5. See Section 3.1 of Government Procurement Policy Board (GPPB) Circular 06-2019. 6. Guidelines on the Implementation of Early Procurement Activities (EPA) dated 17 July 2019. 7. PEs shall check with the Guidelines on the Grant of PBB issued by AO 25 annually the applicability of the requirements whether for the whole PE or responsible unit/individual. 8. Guidelines on the Grant of the Performance-Based Bonus (PBB) for the Fiscal Year 2020 under Executive Order No. 80, s. 2012 and Executive Order No. 201, s. 2016. 9. The Indicative APP shall be posted on the agency Transparency Seal pursuant to Department of Budget and Management Circular Letter 2018-8 dated 30 July 2018. The Indicative APP is not submitted to the GPPB. 10. Per Memorandum Circular No. 2020-1 or the Guidelines on the Grant of the Performance-Based Bonus (PBB) for the Fiscal Year 2020 under Executive Order No. 80, s. 2012 and Executive Order No. 201, s. 2016. 11. See Section 1.4 of GPPB Circular 06-2019. 12. DBM-PS is tasked for the centralized procurement of Common-Use Supplies for the Government of the Philippines in accordance with Letters of Instruction No. 755, s. 1978 and Executive Order No. 359, s. 1989. 13. Value in Philippine Peso. 14. Recommended for award of contract. 15. Total Amount in Indicative APP based on NEP less exceptions enumerated in Item 4.3. 16. Amount and values refer to the Approved Budget for the Contract. 17. See item 4.3 of the Guidelines in the Conduct of Early Procurement Activities as a Requirement for the Grant of the Performance-Based Bonus. 18. Section 3.1 of GPPB Circular 06-2019 provides that the "EPA shall refer to the conduct of procurement activities, from posting of the procurement opportunity, if required, until recommendation of the Bids and Awards Committee (BAC) to the HoPE as to the award of the contract x x x"