REVENUE MEMORANDUM CIRCULAR NO. 137-2019 issued on December 17, 2019 publishes the full text of Inter Agency Task Force (IATF) Memorandum Circular (MC) No. 2019-2 entitled “Supplemental Guidelines on the Grant of the Performance-Based Bonus for Fiscal Year 2019 under Executive Order (EO) No. 80, s. 2012 and EO No. 201, s. 2016”.

The Supplemental Guidelines shall provide clarifications and updates on the requirements and deadlines stated in MC 2019-1 and shall apply to the following sections of the said Circular and all issued Interim FY 2019 PBB Guidelines for Government-Owned or –Controlled Corporations (GOCCs), Local Water Districts (LWDs) and Local Government Units (LGUs).

A. On Section 4.0 – Good Governance Conditions (GGCs)

In view of the first year implementation of the Citizen’s Charter requirement under Republic Act (RA) No. 11032 and MC No. 2019-002 issued by the Anti-Red Tape Authority (ARTA), the updating of the Citizen’s or Service Charter or its equivalent will not be a GGC for purposes of the PBB. However, it shall be understood that agencies shall comply with the December 6, 2019 deadline set by ARTA.

B. On Section 5.1 – Streamlining and Process Improvement of the Agency’s Critical Services

For Modified Form A, departments/agencies shall report a summary of the streamlining efforts containing the Status as of FY 2018, Targets Set in FY 2019 and
Status of Efforts Done in FY 2019, pertaining to the number of steps, turnaround time, number of signatures, number of required documents, transaction costs,
substantive compliance cost and citizen/client satisfaction results.

A more detailed report of said services and the streamlining criteria must be declared in Modified Form A1, which should include the name of service, responsible
delivery/processing units, identified clients/customers, number of client visit/s in 2019, volume of transactions in 2019 and remarks.

The submitted Modified Forms A and A1 should be duly signed by the Supervising Officer and approved by the Department/Agency Head or Designated
Official. Small agencies shall submit their Modified Forms A and A1 on or before February 28, 2020 while big departments/agencies on August 31, 2020.

C. On Section 5.4a – Computation of Agency’s FY 2019 Budget Utilization Rate (BUR).

Effective January 1, 2019, departments/agencies shall adopt the Cash Budgeting System (CBS). All authorized appropriations shall be available for obligation and disbursement only until the end of each fiscal year (FY). Departments/Agencies shall observe Section 5 – Transitory Provisions which states:

“In the first year of implementing the CBS, the concerned national government agencies and qualified Government-Owned or -Controlled Corporations
(GOCCs) shall strictly comply with the following:
a. Appropriations for infrastructure capital outlays, including subsidy releases to GOCCs for infrastructure projects, shall be valid for obligation until 31
December 2019. Meanwhile, the completion of construction inspection and payment shall be made not later than 31 December 2020; and
b. Appropriations for maintenance and other operating expenses as well as other capital outlays shall likewise be valid for obligation until 31 December
2019. On the other hand, the delivery, inspection and payment shall be not later than 30 June 2020.”

D. On Section 5.4c – Compliance with Quarterly Submission of Budget and Financial Accountability Reports (BFARs) Online Using the DBM’s Unified Reporting System (URS)

Acknowledging the shift to URS Version 2.0 and the calibration of the accountability reports, the quarterly submission of BFARs online using the URS shall no longer be a General Administration and Support Services (GASS) target for compliance to the grant of FY 2019 PBB.

E. On Section 5.4d – Submission of Annual Procurement Plan (APP-non CSE)

The final and approved APP shall be submitted to the Government Procurement Policy Board (GPPB) as soon as the GAA, corporate budget, or appropriations ordinance is approved.

Thus, the APP submitted prior to the approval of the GAA, corporate budget, or appropriations ordinance is merely indicative and will not be considered as
compliance with the APP submission.

F. On Section 5.4e – Submission of FY 2020 Annual Procurement Plan-Common Use Supplies and Equipment (FY 2020 APP-CSE)

To afford sufficient time for Departments/Agencies, entities, and instrumentalities to prepare the list of the items that they need for FY 2020, the
Procurement Service (PS) recommends the extension of the submission of the FY 2020 APP-CSE from October 31, 2019 to December 15 2019. Submission will be
done online by uploading the filled-out template in the PhilGEPS Virtual Store.

G. On Section 5.4f – Undertaking of Early Procurement for at least 50% of the value of goods and services based on the department/agency’s budget submitted to the
Congress consistent with the NEP

Departments/Agencies, including GOCCs with budgetary support from the national government, and under the National Expenditure Program (NEP), shall
conduct the undertaking of Early Procurement Activities (EPA) for at least 50% of the value of goods and services based on the department/agency’s budget submitted to the Congress consistent with the NEP.

For purposes of determining the total value, projects which will use the following modalities are excluded in the computation of the total value of goods and
services, following GPPB Circular No. 06-2019 (procurement modalities excluded from the EPA coverage):
a. Repeat Order
b. Shopping
c. Negotiated Procurement – Emergency Cases
d. Negotiated Procurement – Take-Over of Contracts
e. Negotiated Procurement – Small Value Procurement

Deadline of posting of Approved Contract and Notice to Proceed in PhilGEPS is on or before January 31, 2020. Agencies NOT receiving budgetary support from the national government are excluded from this PBB requirement. Heads of the Procuring Entity of covered departments/agencies shall submit to the GPPB a Certification under Oath on the compliance with EPA requirement on or before January 31, 2020.

To support Early Procurement, the Indicative FY 2020 APP-non CSE consistent with the FY 2020 NEP should be posted on the agency TS page not later than September 30, 2019. The indicative APP is not submitted to the GPPB.

H. On Section 7.5 – Agency’s System of Rating and Ranking of Delivery Units for FY 2019 (SRR)

Departments/Agencies shall prepare the System of Agency Ranking of Delivery Units for FY 2019 PBB using the form for the Guidelines/Mechanics in
Ranking Delivery Units. The duly completed and signed agency guidelines in ranking delivery units shall be posted on the agency TS webpage on or before October 1, 2019.

Should the Departments/Agencies decide to retain the previously posted Guidelines, they should indicate or take note in the website that no changes have been
made from the previous year’s System of Agency Ranking of Delivery Units.

The updated FY 2019 PBB Implementation Timeline is specified in the Circular.