RMO No. 36-2022 — Prescribes the guidelines and procedures on the acceptance of Information and Communications Technology (ICT) Systems/solutions to be donated by a third party developer/provider to the BIR Digest | Full Text | Annex A | Annex B | Annex C | Annex D | Annex E | Annex F

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE RECEIVED 40-p.0 SEP 15 Z02 ADMIN-1

July 29, 2022

REVENUE MEMORANDUM ORDER NO. 3G.2022

Subject Guidelines and Procedures on the Acceptance of Information and Communications Technology (ICT) Systems I Solutions to be Donated by a Third Party Developer/Provider to the BIR

To All Revenue Officiafs, Employees and Others Concerned

OBJECTIVES

This Order is issued to:

1. Prescribe the guidelines and procedures on the acceptance of iCT systems / solutions to be donated by third party developer/provider to the BiR.

2. Ensure that the proposals of third party developer/provider to develop an counterpart) prior to the start of his/her/its work/engagement. application system/solution are properly endorsed and signed / approved by the concerned BIR officials (i.e concerned Process Owner and ISG

II.SCOPE

system/solution and its incidentals to the BIR. This Order covers the donation by third party developer/provider of ICT

JII. DEFINITION OF TERMS

1. Third Party Developer (TPD) - means an individual or entity, local or international providers/developers, engaged in the development of software, application systems and other IT solutions.

2. Donated Application Systems (DAS) - ICT system and its incidentals Agreement (MOA) or a Memorandum of Understanding (MOU) with a TPD. ownership of which was turned over to BIR as a result of a Memorandum of

IV. POLICIES AND GUIDELINES

Interested TPD shall tender a signed Letter of intent (LOI), addressed to the Commissioner of Internal Revenue, Attention: The Deputy Commissioner of the conicerned Process Owner (PO), signifying his/her/its intention to develop a system at no cost to the BIR.

Page 1of 8

2. The LOi shall include a Technical Proposal containing, among others, the statement of work including the following:

f) Work plan containing key activities and timelines. b) Purpose/Objective a) Brief Introduction c) Functional Scope d) Technical Diagram e) Technical Specifications/Requirements (i.e. hardware and software to be used, security components, etc)

3. The LOI and the technical proposal shall be assigned to the concerned PO The assignment shall be made by the Deputy Commissioner of the concerned PO.

4. The PO shall coordinate with the concerned ISG Project Manager (ISG PM) technical requirements of the Bureau, while addressing potential concerns on in evaluating the :proposal to ensure that it meets relevant functional and data privacy, security, interoperability (if necessary), among others.

5. The following documents shalt be submitted by the TPD prior to the start of his/her/its work / engagement:

b)Signed Non-Disclosure Agreement (NDA) - attached as Annex "C" a) Draft Memorandum of Agreement or Memorandum of c) Signed Acceptable Use Policy (AUP) -- attached as Annex "D hereof hereof Understanding (MOA or MOU) -- attached as Annexes "A" & "B" hereof

The MOA or MOU shall contain a statement that the application system/ solution and its components shall be donated to the BIR.

6. A project team may be created through a Revenue Special Order (RSO), if necessary, to oversee the project development and its implementation.

7. The Privacy impact Assessment (PIA) Team of the BIR Data Privacy or program. which may be considered throughout the development lifecycle of a system Committee shall conduct a PiA using the prescribed template (see Annex "E) hereof) at the start of the project to ensure inclusion of privacy protection,

8. The application system development duration I engagement shall not exceed one (1) year. Failure to deliver on the agreed target date is a ground to terminate / suspend the MOA or MOU.

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION Page 2 of 8

REGEIVED P.M DMIN-I

9. A progress report of the engagement shall be submitted by ISG PM to

(DCIR). All changes to the agreed/approved scope and timelines shall be concerned Assistant Commissioner (ACIR) and Deputy Commissioner discussed and documented through a Change Request.

10. A system walkthrough for the developed application shall be conducted application system shall be conducted prior to the implementation of the prior to acceptance testing. Likewise, briefing/demonstration of the new

system.

11. Application system / solution developed shall undergo acceptance testing

technical standards of BIR. following the procedures per RMO No. 24 - 2003 (Revised Guidelines and Procedures for Testing and Acceptance of In-house Developed and Outsourced Application System) to evatuate conformance to business and

12. Migration of new application system/solution shall be done following the procedures prescribed in ISG Memorandum Order No. 2- 2016 (Processing and Implementation of Migration Request).

13. The PO/ISG PM shall ensure that budget for the other components of the are not covered by the MOA or MOU, is included in the Project Procurement Management Plan (PPMP) to sustain the application system/solution (i.e. server, license/s, maintenance/sustainability), which system/solution.

14. Delivery/availability of all resources required during development and testing shall be discussed with and agreed upon by both BIR and TPD.

15. The technical infrastructure requirements of the project (i.e. server, network

is implemented/rolled out. requirements, etc.) shall be determined and discussed with the concerned ISG offices to ensure availability and readiness once the developed system

16. Since this is a donation, the TPD shall submit all system/technical

BIR.The concerned PO/ISG PM shall ensure that the final copies of project documentations are turned over to BiR. documentations) to the BIR, and these shall become the property of the documentations (i.e. source code, configuration, and other relevant

17. A separate Deed of Donation (DOD) for the developed application system/ solution shail be submitted following the procedures in processing DOD per Revenue Memorandum Order No. 15-2020 (Updated Procedures in the

Amended by RDAO No. 4-2019 dated July 31,.2019). Pursuant to Revenue Delegation Authority Order (RDAO) No. 4-2010, as Acceptance of Property Donations to the Bureau of Internal Revenue

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION Page 3 of 8

RECEIVED D OMIN-I

18. A Project Closure Report shall be prepared and submitted by PO/ISG PM to the IT Planning and Standards Division, Information Systems ISG Memorandum Order No. 1-2022 (Amending ISG Memorandum Order Development and Operations Service (ITPSD-ISDOS) in compliance with)

Report). No. 2 -- 2013 on the Preparation and Submission of Project Closure

V. PROCEDURES

5.1 Third Party Developer (TPD)

5.1.1 Submit a signed Letter of Intent (LOI) and technical proposal.

5.1.2 Sign and return the NDA (please refer to Annex "C" hereof) and the AUP (please refer to Annex "D" hereof).

5.1.3 Discuss with the Process Owner (PO) and ISG Project Manager (ISG PM) the proposal/project requirements, work plan, and other details

of the engagement.

5.1.4 Prepare and submit the MOA or MOU (attached as Annexes "A" and "B" hereof).

5.1.5 Develop the proposed application system/solution within the mutually

agreed timelines.

5.1.6 Conduct a system walkthrough/briefing/demonstration.

5.1.7 Fix/resolve the issues raised by User Acceptance Team.

5.1.8 Perform migration activities and deployment of the application system to production in coordination with ISG PM. Ensure that key personnel are available to oversee the proiect after deployment to

production. "fix/troubleshoot" issues that may arise after deployment to

5.1.9 Prepare and submit system documentations.

5.1.10 Prepare and submit a Deed of Donation (DOD)

5.1.11 Submit the Delivery Receipt or the List of Deliverables to PO which

shall be received, signed and dated by the receiver.

BUREAU OF INTERNALREVENUI age 4 of 8

RECORDS MGT. DIVISION

SEP 15 +4080 TEN

RECEYOED

5.1.12Indicate in the Delivery Receipt or the List of Deliverables the

quantity and cost (in Philippine peso) of the donated ICT systems / solutions broken down per specifications.

5.2 Concerned Deputy Commissioner (DCIR) of Process Owner

5.2.1 Receive the LOI and the technical proposal.

5.2.2 Assign the LOI and the technical proposal to the concerned PO

5.2.3 Approve/Disapprove the proposal/endorsement letter.

5.2.4 Sign the MOA or the MOU (attached as Annexes "A" and "B" hereof)l

5.3 Process Owner

5.3.1 Coordinate with the ISG PM in evaluating the LOl and technical proposal, as to applicability, relevance to BIR: operations and completeness of documentation. If found favorable, recommend

acceptance through an endorsement letter (attached as Annex "F: hereof) to be signed/approved by the concerned BiR Officials.

5.3.2 Inform the TPD of the approval / disapproval of the LOI. if approvedj

the following documents shall be prepared/reviewed prior to the start of the engagement:

a) Non-Disclosure Agreement (attached as Annex "C" hereof) b Acceptable Use Policy (attached as Annex "D" hereof)

Otherwise, inform the TPD of the reason for the disapproval.

5.3.3 Review the MOA or the MOU, incorporate the comments of iSG, and

forward to the Legal Service for further review and endorsement.

5.3.4 Identify users who will work with ISG counterpart in the User

per RMO No. 24 -- 2003 (Revised Guidelines and Procedures for Acceptance Testing (UAT) following acceptance testing procedures

Testing and Acceptance of In-house Developed and Outsourced Application System).

5.3.5 Coordinate with the PiA Team on the conduct Privacy Impact Assessment (please refer to Annex "E" hereof) of the

prior to implementation. application/solution to be developed by the third party developer and

BUREAU OF INTERNAL REVENUE Page 5 of 8

RECORDS MGT. DIVISION

1.46.0.0 E15 TMN-1 FECEYVED

5.3.6 Inform the TPD to submit the Deed of Donation (DOD) and final

documentations and forward the same to the Legal Service for review and endorsement.

5.3.7 Follow the procedures in processing DOD per RMO No. 15 -- 2020. and forward the DOD and its attachments to Administrative Service

for review and recommendation.

5.3.8 Forward the DOD to the following offices for signature and approval:

a. Above P12M - Commissioner of Internal Revenue b. P12M and below -- Deputy Commissioner, Information Systems Group

5.3.9 Secure notarization of the DOD by a duty authorized Notary Public.

5.3.10 Provide a copy of the duly notarized DOD to each of the following

offices:

a. Information Systems Development & Operations Service b. Property Division c. Office of the Commissioner d. Accounting Division

5.3.11 Submit to Property Division the following documents

a. Delivery Receipt or List of Deliverables b. Original copy of Certificate/Proof of Ownership of the donated ICT system I solution for safekeeping.

5.3.12 Prepare Request for Inspection of the donated application

5.4 ISG Project Manager

5.4.1 Evaluate the LOI and the technical proposal together with PO, as to

applicability, relevance to BiR operations and completeness ofl documentation. If found favorable, recommend its acceptance

5.4.2 Monitor system development and prepare progress status report.

5.4.3 Conduct UAT with functional users following acceptance testing passed UAT, issue Ready For Use Memorandum. procedures per RMO No. 24 -- 2003 and, if the application has

5.4.4 Provide copy of final project documentations to the ISG Technical

Library within one (1) month after completion of the engagement for future reference.

BUREAU OF INTERNAL REVENUE RECORDS MGT.DIVISION Page 6 of 8

RECEIWED 462.0 IDMIN-1

5.4.5 Prepare and submit approved Project Closure Report to iSG

Technical Library.

5.5 DPA - Privacy Impact Assessment Team

5.5.1 Conduct a PiA using the attached template (attached as Annex "E'

hereof) for programs, systems and processes.

5.5.2 Submit the PIA report to Process Owner.

5.6 Legal Service

5.6.1 Review the MOA (please refer to Annex "A" hereof) or the MOUl (piease refer to Annex "B" hereof) and the Deed of Donation (DOD) pursuant to RMO No. 15-2020.

5.6.2 If there are review notes and observations thereon, return the MOA

or the MOU and the DOD to the concerned office/Process Owner for compliance therewith.

5.6.3 If the terms and conditions of the MOA/MOU and DOD are legally proper and in order, recommend approval of the MOA/MOU"and acceptance of the DOD, and forward the same to concerned

office/Process Owner.

5.7 Administrative Service

5.7.1 Review and recommend the approval and signing of the DOD

pursuant to RMO No. 15-2020.

5.8 Deputy Commissioner (DCIR) -- Information Systems Group (ISG)

5.8.1 Sign and approve DOD for IT-related system / solution with cost P12 million. value of P12 million and below. Affix initial if the value is above

5.9 Office of the Commissioner

5.9.1 Sign and approve DOD for IT-related system / solution with cost

value above P12 million.

BUREAU OF INTERNALREVENUE Page 7 of 8

RECORDS MGT.DIVISION

10.240 ADMINI KE ETE

5.10 Property Division

5.10.1Receive the original copy of Certificate/Proof of Ownership of

donated ICT systems I solution.

5.10.2 Receive the authenticated copy of duly notarized Deed of Donation.

5.10.3 Receive the authenticated copy of Delivery Receipt or the List of

Deliverables.

5.11 Accounting Division

5.11.1 Receive the authenticated copy of duly notarized Deed of Donation.

5.11.2 Record the cost of donated assets/application system/solution. The

cost to be capitalized is its fair value or declared value as stated in the Deed of Donation or in any other relevant documents submitted by the Donor, including any directly attributable costs.

VI. REPEALING CLAUSE

This Order supersedes all issuances or portions thereof inconsistent herewith.

VI.EFFECTIVITY

This Order shall take effect immediately.

Commissioner of Internal Revenue LILIA CATRiS GUILLERMO Lkal l Gull 001359

BUREAU OF INTERNAL REVENUE RECORDS MGT.DIVISION Page 8 of 8

RF I4o.p.0 01 AOFN-1 U