Florida Senate - 2012                             CS for SB 1626
       
       
       
       By the Committee on Banking and Insurance; and Senator Gaetz
       
       
       
       
       597-02862-12                                          20121626c1
    1                        A bill to be entitled                      
    2         An act relating to state contracting; amending s.
    3         11.45, F.S.; conforming provisions to changes made by
    4         the act; amending s. 215.971, F.S.; requiring
    5         agreements funded with state or federal financial
    6         assistance to include a performance measure for each
    7         deliverable, to be reviewed and approved in accordance
    8         with rules adopted by the Department of Financial
    9         Services, and to have the contracting entity assign a
   10         grants manager who is responsible for enforcing
   11         performance of the agreement; amending s. 215.985,
   12         F.S.; revising provisions relating to the Chief
   13         Financial Officer’s intergovernmental contract
   14         tracking system under the Transparency Florida Act;
   15         specifying the entities that are included in the
   16         tracking system; requiring that exempt and
   17         confidential information be redacted from contracts
   18         and procurement documents posted on the system;
   19         authorizing the Chief Financial Officer to make
   20         available the information posted on the system to the
   21         public through a secure website; authorizing the
   22         Department of Financial Services to adopt rules;
   23         repealing s. 216.0111, F.S., relating to a requirement
   24         that state agencies report certain contract
   25         information to the Department of Financial Services
   26         and transferring that requirement to s. 215.985, F.S.;
   27         amending s. 287.032, F.S.; dividing the
   28         responsibilities of the Department of Management
   29         Services under ch. 287, F.S., with the Department of
   30         Financial Services; amending s. 287.042, F.S.;
   31         limiting the duties of the Department of Management
   32         Services to the procurement of commodities and
   33         contractual services; directing the department to
   34         develop a list of interested vendors; deleting
   35         provisions requiring that the department perform
   36         duties relating to procurement and contracting
   37         policies and procedures; creating s. 287.044, F.S.;
   38         assigning duties relating to procurement and
   39         contracting policies and procedures to the Department
   40         of Financial Services; requiring the department to
   41         develop a list of vendors not allowed to do business
   42         with the state; amending s. 287.057, F.S.; revising
   43         the list of contractual services and commodities that
   44         are exempt from competitive solicitation to delete
   45         certain services from the exemption; revising
   46         provisions prohibiting an agency from dividing a
   47         solicitation; conforming provisions to changes made by
   48         the act; authorizing an agency or other eligible user
   49         to purchase commodities or services through another
   50         agency’s contract; amending s. 287.058, F.S.;
   51         requiring contracts to include a performance measure
   52         for each deliverable; authorizing the Chief Financial
   53         Officer to review and approve contracts; providing
   54         requirements for such reviews; authorizing the Chief
   55         Financial Officer to establish dollar thresholds and
   56         another criteria for sampling agreements that are to
   57         be reviewed before execution; providing criteria for
   58         the department’s review of contract documentation;
   59         requiring that the department verify that a
   60         competitive process was used and that a contract was
   61         appropriately awarded; providing for the review of
   62         procurement record for contracts not competitively
   63         awarded; specifying the number of days that the
   64         department must make its final determination regarding
   65         the approval of a contract; authorizing the department
   66         and the agency to agree to a longer review period;
   67         repealing s. 287.095(3), F.S., relating to certain
   68         products produced by inmate labor; creating s.
   69         287.1312, F.S.; requiring certification of contract
   70         managers by the Department of Financial Services for
   71         contracts of more than a certain amount; requiring the
   72         training program for the certification to provide
   73         training in certain areas; authorizing the department
   74         to adopt rules to administer the program; amending s.
   75         287.133, F.S.; revising the definition of “department”
   76         to mean the Department of Financial Services rather
   77         than the Department of Management Services with
   78         respect to provisions governing public entity crimes
   79         and placement on the convicted vendor list; amending
   80         ss. 255.25, 287.012, 402.7305, 427.0135, and 946.515,
   81         F.S.; conforming cross-references; requiring the Chief
   82         Financial Officer to conduct a study of current
   83         procurement laws pursuant to such policies; requiring
   84         that the Chief Financial Officer submit a report to
   85         the Legislature and Governor by a certain date on such
   86         study; repealing ch. 287, F.S., on a future date;
   87         providing appropriations; providing effective dates.
   88  
   89  Be It Enacted by the Legislature of the State of Florida:
   90  
   91         Section 1. Paragraphs (a) and (i) of subsection (7) of
   92  section 11.45, Florida Statutes, are amended to read:
   93         11.45 Definitions; duties; authorities; reports; rules.—
   94         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   95         (a) The Auditor General must shall notify the Legislative
   96  Auditing Committee of any local governmental entity, district
   97  school board, charter school, or charter technical career center
   98  that does not comply with the reporting requirements of s.
   99  215.985 or s. 218.39.
  100         (i) Beginning in 2012, the Auditor General shall annually
  101  transmit by July 15, to the President of the Senate, the Speaker
  102  of the House of Representatives, and the Department of Financial
  103  Services, a list of all school districts, charter schools,
  104  charter technical career centers, Florida College System
  105  institutions, state universities, and water management districts
  106  that have failed to comply with the transparency requirements of
  107  s. 215.985 as identified in the audit reports reviewed pursuant
  108  to paragraph (b) and those conducted pursuant to subsection (2).
  109         Section 2. Section 215.971, Florida Statutes, is amended to
  110  read:
  111         215.971 Agreements funded with federal and state
  112  assistance.—
  113         (1) For an agency agreement that provides state financial
  114  assistance to a recipient or subrecipient, as those terms are
  115  defined in s. 215.97, or that provides federal financial
  116  assistance to a subrecipient, as defined by applicable United
  117  States Office of Management and Budget circulars, the agreement
  118  must shall include a provision:
  119         (a)(1)A provision Specifying a scope of work that clearly
  120  establishes the tasks that the recipient or subrecipient is
  121  required to perform; and
  122         (b)(2)A provision Dividing the agreement into quantifiable
  123  units of deliverables which that must be received and accepted
  124  in writing by the agency before payment. Each deliverable must
  125  be directly related to the scope of work and must specify a
  126  performance measure. As used in this paragraph, the term
  127  “performance measure” means the required minimum level of
  128  service to be performed and the criteria for evaluating the
  129  successful completion of each deliverable.
  130         (2) Effective October 1, 2012, before execution, agreements
  131  to be funded with state or federal financial assistance must be
  132  submitted for review and approval in accordance with rules
  133  adopted by the Department of Financial Services. The review must
  134  ensure that the agreement document contains a clear statement of
  135  work, quantifiable and measureable deliverables, performance
  136  measures, and financial consequences for nonperformance. An
  137  agreement that does not comply with this subsection may be
  138  rejected and returned to the submitting agency for revision.
  139         (3) The Chief Financial Officer may establish dollar
  140  thresholds and other criteria for sampling the agreements that
  141  are to be reviewed prior to execution. The Chief Financial
  142  Officer may revise such thresholds and other criteria for an
  143  agency or the unit of any agency as he or she deems appropriate.
  144         (4) The department has 30 days to make a final
  145  determination regarding approval of an agreement. The department
  146  and the agency entering into the agreement may agree to a longer
  147  review period to ensure the thorough consideration of the
  148  procurement process and its results.
  149         (5) For each agreement funded with federal or state
  150  assistance, the contracting agency shall designate an employee
  151  to function as grant manager who shall be responsible for
  152  enforcing performance of the agreement terms and conditions and
  153  serve as a liaison with the recipient. A grant manager who is
  154  responsible for one or more agreements in excess of the
  155  threshold amount provided in s. 287.017 for CATEGORY FIVE must
  156  be certified under s. 287.1312. The Chief Financial Officer
  157  shall establish and disseminate uniform procedures for payment
  158  requests pursuant to s. 17.03(3) to ensure that services are
  159  rendered in accordance with the agreement terms before the
  160  agency processes an invoice for payment. The procedures must
  161  include, but need not be limited to, procedures for monitoring
  162  and documenting a recipient’s performance, reviewing and
  163  documenting all deliverables for which payment is requested by
  164  the recipient, and providing written certification by the grant
  165  manager of the agency’s receipt of goods and services.
  166         Section 3. Subsection (16) of section 215.985, Florida
  167  Statutes, is amended to read:
  168         215.985 Transparency in government spending.—
  169         (16) The Chief Financial Officer shall establish and
  170  maintain a secure, shared, intergovernmental contract tracking
  171  provide public access to a state contract management system.
  172         (a) Within 30 calendar days after executing a contract,
  173  each state agency as defined in s. 216.011(1), and, effective
  174  November 1, 2013, each local governmental entity and independent
  175  special district as defined in s. 218.31, each district school
  176  board as described in s. 1001.32, the Board of Governors of the
  177  State University System as described in s. 1001.70, and each
  178  Florida College System institution board of trustees as
  179  described in s. 1001.61 must post the following that provides
  180  information and documentation relating to that contract on the
  181  contract tracking system: contracts procured by governmental
  182  entities.
  183         1. The name of the contracting entities;
  184         2. The procurement method;
  185         3. The contract beginning and ending dates;
  186         4. The nature or type of the commodities or services
  187  purchased;
  188         5. Applicable contract unit prices and deliverables;
  189         6. Total compensation to be paid or received under the
  190  contract;
  191         7. All payments made to the contract vendor to date;
  192         8. All commodities or services received from the contract
  193  vendor to date;
  194         9. Applicable contract performance measures;
  195         10. Contract extensions or renewals, if any;
  196         11. The justification for not using competitive
  197  solicitation to procure the contract, including citation to any
  198  statutory exemption or exception from competitive solicitation,
  199  if applicable;
  200         12. Electronic copies of the contract and procurement
  201  documents, including any provision that may have been redacted
  202  to conceal exempt or confidential information; and
  203         13.Any other information regarding the contract or the
  204  procurement which may be required by the Department of Financial
  205  Services.
  206         (a) The data collected in the system must include, but need
  207  not be limited to, the contracting agency; the procurement
  208  method; the contract beginning and ending dates; the type of
  209  commodity or service; the purpose of the commodity or service;
  210  the compensation to be paid; compliance information, such as
  211  performance metrics for the service or commodity; contract
  212  violations; the number of extensions or renewals; and the
  213  statutory authority for providing the service.
  214         (b) Within 30 calendar days after a major modification or
  215  amendment change to an existing contract, or the execution of a
  216  new contract, agency procurement staff of the affected state
  217  governmental entity must shall update the necessary information
  218  described in paragraph (a) in the state contract tracking
  219  management system. A major modification or amendment change to a
  220  contract includes, but is not limited to, a renewal,
  221  termination, or extension of the contract, or an amendment to
  222  the contract as determined by the Chief Financial Officer.
  223         (c) Each entity identified in paragraph (a) must redact, as
  224  defined in s. 119.011, any exempt or confidential information,
  225  including trade secrets as defined in s. 688.002 or s. 812.081,
  226  from the contract or procurement documents before posting an
  227  electronic copy of such documents on the contract tracking
  228  system.
  229         1. If an entity becomes aware that an electronic copy of a
  230  contract or procurement document that it posted has not been
  231  properly redacted, the entity must replace the electronic copy
  232  of the documents with a redacted copy.
  233         2. If a party to a contract, or an authorized
  234  representative thereof, discovers that an electronic copy of a
  235  contract or procurement document on the system has not been
  236  properly redacted, the party or representative may request the
  237  entity that posted the document to redact the exempt or
  238  confidential information. Upon receipt of a request in
  239  compliance with this subparagraph, the entity that posted the
  240  document shall redact the exempt or confidential information.
  241         a. Such request must be in writing and delivered by mail,
  242  facsimile, or electronic transmission, or in person to the
  243  entity that posted the information. The request must identify
  244  the specific document, the page numbers that include the exempt
  245  or confidential information, the information that is exempt or
  246  confidential, and the relevant statutory exemption. A fee may
  247  not be charged for a redaction made pursuant to such request.
  248         b. If necessary, a party to the contract may petition the
  249  circuit court for an order directing compliance with this
  250  paragraph.
  251         3. The Chief Financial Officer, the Department of Financial
  252  Services, or any officer, employee, or contractor thereof, is
  253  not responsible for redacting exempt or confidential information
  254  from an electronic copy of a contract or procurement document
  255  posted by another entity on the system, and is not liable for
  256  the failure of the entity to redact the exempt or confidential
  257  information. The Department of Financial Services may notify the
  258  posting entity if it discovers that a document posted on the
  259  tracking system contains exempt or confidential information.
  260         (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial
  261  Officer may make information posted on the contract tracking
  262  system available for viewing and downloading by the public
  263  through a secure website. Unless otherwise provided by law,
  264  information retrieved electronically pursuant to this paragraph
  265  is not admissible in court as an authenticated document.
  266         1. The Chief Financial Officer may regulate and prohibit
  267  the posting of records that could facilitate identity theft or
  268  fraud, such as signatures; compromise or reveal an agency
  269  investigation; reveal the identity of undercover personnel;
  270  reveal proprietary confidential business information or trade
  271  secrets; reveal an individual’s medical information; or reveal
  272  any other record or information that the Chief Financial Officer
  273  believes may jeopardize the health, safety, or welfare of the
  274  public. However, such prohibition does not eliminate the duty of
  275  an entity to provide a copy of a public record upon request. The
  276  Chief Financial Officer shall use appropriate Internet security
  277  measures to ensure that no person has the ability to alter or
  278  modify records available on the website.
  279         2. Records made available on the website, including
  280  electronic copies of contracts or procurement documents, may not
  281  reveal information made exempt or confidential by law. Notice of
  282  the right of an affected party to request redaction of exempt or
  283  confidential information pursuant to paragraph (c) must be
  284  conspicuously and clearly displayed on the website. This
  285  includes, but is not limited to:
  286         a. Criminal intelligence or criminal investigative
  287  information as defined in s. 119.011;
  288         b. Surveillance techniques or procedures or personnel;
  289         c. The identity of a confidential informant or confidential
  290  source;
  291         d. The identify of undercover personnel of a criminal
  292  justice agency;
  293         e. A security system plan; or
  294         f. Trade secret as defined in s. 688.002 or s. 812.081.
  295         (e) The posting of information on the contract tracking
  296  system or the provision of contract information on a website for
  297  public viewing and downloading does not eliminate the duty of an
  298  entity to respond to a public record request for such
  299  information or to a subpoena for such information.
  300         1. A request for a copy of a contract or procurement
  301  document or a certified copy of a contract or procurement
  302  document shall be made to the entity that is party to the
  303  contract and that maintains the original documents. Such request
  304  may not be made to the Chief Financial Officer or the Department
  305  of Financial Services or any officer, employee, or contractor
  306  thereof unless the Chief Financial Officer or the department is
  307  a party to the contract.
  308         2. A subpoena for a copy of a contract or procurement
  309  document or certified copy of a contract or procurement document
  310  must be served on the entity that is a party to the contract and
  311  that maintains the original documents. The Chief Financial
  312  Officer or the Department of Financial Services or any officer,
  313  employee, or contractor thereof may not be served a subpoena for
  314  those records unless the Chief Financial Officer or the
  315  department is a party to the contract.
  316         (f) The Department of Financial Services may adopt rules to
  317  administer this subsection.
  318         Section 4. Section 216.0111, Florida Statutes, is repealed.
  319         Section 5. Effective October 1, 2013, section 287.032,
  320  Florida Statutes, is amended to read:
  321         287.032 Departmental responsibility purpose of department.
  322  Pursuant to the administration of this chapter:
  323         (1)It shall be The responsibility purpose of the
  324  Department of Management Services is to:
  325         (a)(1)To Promote efficiency, economy, and the conservation
  326  of energy and coordinate to effect coordination in the purchase
  327  of commodities and contractual services for the state.
  328         (2) To provide uniform commodity and contractual service
  329  procurement policies, rules, procedures, and forms for use by
  330  agencies and eligible users.
  331         (b)(3)To Procure and distribute federal surplus tangible
  332  personal property allocated to the state by the Federal
  333  Government.
  334         (2) The responsibility of the Department of Financial
  335  Services is to:
  336         (a) Provide uniform commodity and contractual service
  337  procurement policies, rules, procedures, and forms for use by
  338  agencies and eligible users.
  339         (b) Monitor agencies with respect to compliance with
  340  established policies, rules, and procedures.
  341         Section 6. Effective October 1, 2013, section 287.042,
  342  Florida Statutes, is amended to read:
  343         287.042 Powers, duties, and functions of the Department of
  344  Management Services.—The department is responsible for the
  345  procurement of commodities and contractual services for agencies
  346  and has shall have the following powers, duties, and functions:
  347         (1)(a) To canvass all sources of supply, establish and
  348  maintain a vendor list, and contract for the purchase, lease, or
  349  acquisition, including purchase by installment sales or lease
  350  purchase contracts which may provide for the payment of interest
  351  on unpaid portions of the purchase price, of all commodities and
  352  contractual services required by an any agency under this
  353  chapter. A Any contract providing for deferred payments and the
  354  payment of interest is shall be subject to specific rules
  355  adopted by the Department of Financial Services.
  356         (a)(b)The department shall develop a list of interested
  357  vendors to be maintained by classes of commodities and
  358  contractual services. The list may not be used to prequalify a
  359  vendor or to exclude an interested vendor from bidding. However,
  360  a vendor barred by the Chief Financial Officer pursuant to s.
  361  287.044(7) may not be included on the list. The department may
  362  remove from the its vendor list any source of supply which fails
  363  to fulfill any of its duties specified in a contract with the
  364  state. The department It may reinstate any such source of supply
  365  if the department when it is satisfied that further instances of
  366  default will not occur.
  367         (b)(c) In order to promote the cost-effective procurement
  368  of commodities and contractual services, the department or an
  369  agency may enter into contracts that limit the liability of a
  370  vendor consistent with s. 672.719.
  371         (d) The department shall issue commodity numbers for all
  372  products of the corporation operating the correctional industry
  373  program which meet or exceed department specifications.
  374         (c)(e) The department shall include the products offered by
  375  the corporation operating the correctional industry program on
  376  any listing prepared by the department which lists state term
  377  contracts executed by the department. The products or services
  378  shall be placed on such list in a category based upon
  379  specification criteria developed through a joint effort of the
  380  department and the corporation and approved by the department.
  381         1.(f) The corporation may submit products and services to
  382  the department for testing, analysis, and review relating to the
  383  quality and cost comparability. If, after review and testing,
  384  the department approves of the products and services, the
  385  department shall give written notice thereof to the corporation.
  386  The corporation shall pay a reasonable fee charged for the
  387  testing of its products by the Department of Agriculture and
  388  Consumer Services.
  389         2. The department shall issue a commodity number for all
  390  products of the corporation which meet or exceed department
  391  specifications.
  392         (d)(g) The department shall include products and services
  393  that are offered by a qualified nonprofit agency for the blind
  394  or for the other severely handicapped organized pursuant to
  395  chapter 413 and that have been determined to be suitable for
  396  purchase pursuant to s. 413.035 on a any department listing of
  397  state term contracts. The products and services shall be placed
  398  on such list in a category based upon specification criteria
  399  developed by the department in consultation with the qualified
  400  nonprofit agency.
  401         (e)(h) The department may collect fees for the use of its
  402  electronic information services. The fees may be imposed on an
  403  individual transaction basis or as a fixed subscription for a
  404  designated period of time. At a minimum, the fees shall be
  405  determined in an amount sufficient to cover the department’s
  406  projected costs for of the services, including overhead, in
  407  accordance with the policies of the department of Management
  408  Services for computing its administrative assessment. All fees
  409  collected under this paragraph shall be deposited in the
  410  Operating Trust Fund for disbursement as provided by law.
  411         (2)(a) To establish purchasing agreements and procure state
  412  term contracts for commodities and contractual services,
  413  pursuant to s. 287.057, under which state agencies shall, and
  414  eligible users may, make purchases pursuant to s. 287.056.
  415         (a) The department may restrict purchases by from some term
  416  contracts to state agencies from only for those term contracts
  417  if where the inclusion of other governmental entities will have
  418  an adverse effect on competition or on to those federal
  419  facilities located in this state. In such planning or
  420  purchasing, the office of Supplier Diversity may monitor to
  421  ensure that opportunities are afforded for contracting with
  422  minority business enterprises. The department, for state term
  423  contracts, and all agencies, for multiyear contractual services
  424  or term contracts, shall explore reasonable and economical means
  425  to use utilize certified minority business enterprises.
  426  Purchases by any county, municipality, private nonprofit
  427  community transportation coordinator designated pursuant to
  428  chapter 427, while conducting business related solely to the
  429  Commission for the Transportation Disadvantaged, or other local
  430  public agency under the provisions in the state purchasing
  431  contracts, and purchases, from the corporation operating the
  432  correctional work programs, of products or services that are
  433  subject to paragraph (1)(c) (1)(f), are exempt from the
  434  competitive solicitation requirements otherwise applying to
  435  their purchases.
  436         (b) As an alternative to any provision in s. 120.57(3)(c),
  437  the department may proceed with the competitive solicitation or
  438  contract award process of a term contract if when the secretary
  439  of the department or his or her designee sets forth in writing
  440  particular facts and circumstances that which demonstrate that
  441  the delay incident to staying the solicitation or contract award
  442  process would be detrimental to the interests of the state. If,
  443  after the award of the a contract resulting from a competitive
  444  solicitation in which a timely protest was received and in which
  445  the state did not prevail, the contract may be canceled and
  446  reawarded.
  447         (c) Any person who files an action protesting a decision or
  448  intended decision pertaining to contracts administered by the
  449  department, a water management district, or an agency pursuant
  450  to s. 120.57(3)(b) shall post with the department, the water
  451  management district, or the agency at the time of filing the
  452  formal written protest a bond payable to the department, the
  453  water management district, or agency in an amount equal to 1
  454  percent of the estimated contract amount. For protests of
  455  decisions or intended decisions pertaining to exceptional
  456  purchases, the bond must shall be in an amount equal to 1
  457  percent of the estimated contract amount for the exceptional
  458  purchase.
  459         1. The estimated contract amount shall be based upon the
  460  contract price submitted by the protestor or, if no contract
  461  price was submitted, the department, water management district,
  462  or agency shall estimate the contract amount based on factors,
  463  including, but not limited to, the price of previous or existing
  464  contracts for similar commodities or contractual services, the
  465  amount appropriated by the Legislature for the contract, or the
  466  fair market value of similar commodities or contractual
  467  services. The agency shall provide the estimated contract amount
  468  to the vendor within 72 hours, excluding Saturdays, Sundays, and
  469  state holidays, after the filing of the notice of protest by the
  470  vendor. The estimated contract amount is not subject to protest
  471  pursuant to s. 120.57(3).
  472         2. The bond shall be conditioned upon the payment of all
  473  costs and charges that are adjudged against the protestor in the
  474  administrative hearing in which the action is brought and in any
  475  subsequent appellate court proceeding.
  476         3. In lieu of a bond, the department, the water management
  477  district, or agency may, in either case, accept a cashier’s
  478  check, official bank check, or money order in the amount of the
  479  bond.
  480         4. If, after completion of the administrative hearing
  481  process and any appellate court proceedings, the department,
  482  water management district, or agency prevails, it shall recover
  483  all costs and charges, which must shall be included in the final
  484  order or judgment, excluding attorney attorney’s fees. This
  485  section shall not apply to protests filed by the Office of
  486  Supplier Diversity. Upon payment of such costs and charges by
  487  the protestor, the bond, cashier’s check, official bank check,
  488  or money order shall be returned to the protestor. If, after the
  489  completion of the administrative hearing process and any
  490  appellate court proceedings, the protestor prevails, the
  491  protestor may shall recover from the department, water
  492  management district, or agency all costs and charges that are
  493  which shall be included in the final order or judgment,
  494  excluding attorney attorney’s fees.
  495         5. This paragraph does not apply to protests filed by the
  496  office.
  497         (3) To establish a system of coordinated, uniform
  498  procurement policies, procedures, and practices to be used by
  499  agencies in acquiring commodities and contractual services,
  500  which shall include, but not be limited to:
  501         (a) Development of a list of interested vendors to be
  502  maintained by classes of commodities and contractual services.
  503  This list shall not be used to prequalify vendors or to exclude
  504  any interested vendor from bidding.
  505         (b)1. Development of procedures for advertising
  506  solicitations. These procedures must provide for electronic
  507  posting of solicitations for at least 10 days before the date
  508  set for receipt of bids, proposals, or replies, unless the
  509  department or other agency determines in writing that a shorter
  510  period of time is necessary to avoid harming the interests of
  511  the state. The Office of Supplier Diversity may consult with the
  512  department regarding the development of solicitation
  513  distribution procedures to ensure that maximum distribution is
  514  afforded to certified minority business enterprises as defined
  515  in s. 288.703.
  516         2. Development of procedures for electronic posting. The
  517  department shall designate a centralized website on the Internet
  518  for the department and other agencies to electronically post
  519  solicitations, decisions or intended decisions, and other
  520  matters relating to procurement.
  521         (c) Development of procedures for the receipt and opening
  522  of bids, proposals, or replies by an agency. Such procedures
  523  shall provide the Office of Supplier Diversity an opportunity to
  524  monitor and ensure that the contract award is consistent with
  525  the requirements of s. 287.09451.
  526         (d) Development of procedures to be used by an agency in
  527  deciding to contract, including, but not limited to, identifying
  528  and assessing in writing project needs and requirements,
  529  availability of agency employees, budgetary constraints or
  530  availability, facility equipment availability, current and
  531  projected agency workload capabilities, and the ability of any
  532  other state agency to perform the services.
  533         (e) Development of procedures to be used by an agency in
  534  maintaining a contract file for each contract which shall
  535  include, but not be limited to, all pertinent information
  536  relating to the contract during the preparatory stages; a copy
  537  of the solicitation; documentation relating to the solicitation
  538  process; opening of bids, proposals, or replies; evaluation and
  539  tabulation of bids, proposals, or replies; and determination and
  540  notice of award of contract.
  541         (f) Development of procedures to be used by an agency for
  542  issuing solicitations that include requirements to describe
  543  commodities, services, scope of work, and deliverables in a
  544  manner that promotes competition.
  545         (g) Development of procedures to be used by an agency when
  546  issuing requests for information and requests for quotes.
  547         (h) Development of procedures to be used by state agencies
  548  when procuring information technology commodities and
  549  contractual services that ensure compliance with public records
  550  requirements and records retention and archiving requirements.
  551         (4)(a) To prescribe the methods of securing competitive
  552  sealed bids, proposals, and replies. Such methods may include,
  553  but are not limited to, procedures for identifying vendors;
  554  setting qualifications; conducting conferences or written
  555  question and answer periods for purposes of responding to vendor
  556  questions; evaluating bids, proposals, and replies; ranking and
  557  selecting vendors; and conducting negotiations.
  558         (b) To prescribe procedures for procuring information
  559  technology and information technology consultant services that
  560  provide for public announcement and qualification, competitive
  561  solicitations, contract award, and prohibition against
  562  contingent fees. Such procedures are limited to information
  563  technology consultant contracts for which the total project
  564  costs, or planning or study activities, are estimated to exceed
  565  the threshold amount provided in s. 287.017, for CATEGORY TWO.
  566         (3)(5) To prescribe specific commodities and quantities to
  567  be purchased locally.
  568         (6)(a) To govern the purchase by any agency of any
  569  commodity or contractual service and to establish standards and
  570  specifications for any commodity.
  571         (4)(b) Except for the purchase of insurance, to the
  572  department may delegate to agencies the authority for the
  573  procurement of and contracting for commodities or contractual
  574  services.
  575         (7) To establish definitions and classes of commodities and
  576  contractual services. Agencies shall follow the definitions and
  577  classes of commodities and contractual services established by
  578  the department in acquiring or purchasing commodities or
  579  contractual services. The authority of the department under this
  580  section shall not be construed to impair or interfere with the
  581  determination by state agencies of their need for, or their use
  582  of, services including particular specifications.
  583         (8) To provide any commodity and contractual service
  584  purchasing rules to the Chief Financial Officer and all agencies
  585  through an electronic medium or other means. Agencies may not
  586  approve any account or request any payment of any account for
  587  the purchase of any commodity or the procurement of any
  588  contractual service covered by a purchasing or contractual
  589  service rule except as authorized therein. The department shall
  590  furnish copies of rules adopted by the department to any county,
  591  municipality, or other local public agency requesting them.
  592         (5)(9) To require that every agency furnish information
  593  relative to its commodity and contractual services purchases and
  594  methods of purchasing commodities and contractual services to
  595  the department when so requested.
  596         (6)(10) To prepare statistical data concerning the method
  597  of procurement, terms, usage, and disposition of commodities and
  598  contractual services by agencies. All agencies shall furnish
  599  such information for this purpose to the office and to the
  600  department, as the department or office may call for, but at
  601  least no less frequently than annually, on such forms or in such
  602  manner as the department may prescribe.
  603         (11) To establish and maintain programs for the purpose of
  604  disseminating information to government, industry, educational
  605  institutions, and the general public concerning policies,
  606  procedures, rules, and forms for the procurement of commodities
  607  and contractual services.
  608         (7)(12) Except as otherwise provided in this section
  609  herein, to adopt rules necessary to carry out the purposes of
  610  this section, including the authority to delegate to any agency
  611  any and all of the responsibility conferred by this section,
  612  retaining to the department any and all authority for
  613  supervision thereof. Such purchasing of commodities and
  614  procurement of contractual services by state agencies must also
  615  shall be in strict accordance with the rules and procedures
  616  prescribed by the Department of Financial Services.
  617         (8)(13) If the department determines in writing that it is
  618  in the best interest of the state, to award to multiple
  619  suppliers contracts for commodities and contractual services
  620  established by the department for use by all agencies. Such
  621  awards may be on a statewide or regional basis. If regional
  622  contracts are established by the department, multiple supplier
  623  awards may be based upon multiple awards for regions. Agencies
  624  may award contracts to a responsible and responsive vendor on a
  625  statewide or regional basis.
  626         (9)(14) To procure and distribute federal surplus tangible
  627  personal property allocated to the state by the Federal
  628  Government.
  629         (10)(15) To enter into joint agreements with governmental
  630  agencies, as defined in s. 163.3164, for the purpose of pooling
  631  funds for the purchase of commodities or information technology
  632  that can be used by multiple agencies.
  633         (a) Each agency that has been appropriated or has existing
  634  funds for such purchase, shall, upon contract award by the
  635  department, transfer their portion of the funds into the
  636  department’s Operating Trust Fund for payment by the department.
  637  The funds shall be transferred by the Executive Office of the
  638  Governor pursuant to the agency budget amendment request
  639  provisions in chapter 216.
  640         (b) Agencies that sign the joint agreements are financially
  641  obligated for their portion of the agreed-upon funds. If an
  642  agency becomes more than 90 days delinquent in paying the funds,
  643  the department shall certify to the Chief Financial Officer the
  644  amount due, and the Chief Financial Officer shall transfer the
  645  amount due to the Operating Trust Fund of the department from
  646  any of the agency’s available funds. The Chief Financial Officer
  647  shall report these transfers and the reasons for the transfers
  648  to the Executive Office of the Governor and the legislative
  649  appropriations committees.
  650         (11)(16) To evaluate contracts let by the Federal
  651  Government, another state, or a political subdivision for the
  652  provision of commodities and contract services, and, if it is
  653  determined in writing to be cost-effective and in the best
  654  interest of the state, to enter into a written agreement
  655  authorizing an agency to make purchases under such contract.
  656         (12)(17)(a) To enter into contracts pursuant to chapter 957
  657  for the designing, financing, acquiring, leasing, constructing,
  658  or operating of private correctional facilities. The department
  659  shall enter into such a contract or contracts with one
  660  contractor per facility for the designing, acquiring, financing,
  661  leasing, constructing, and operating of that facility or may, if
  662  specifically authorized by the Legislature, separately contract
  663  for each of any such services.
  664         (a)(b)The department shall also To manage and enforce
  665  compliance with existing or future contracts entered into
  666  pursuant to chapter 957.
  667         (b) The department may not delegate the responsibilities
  668  conferred by this subsection.
  669         Section 7. Effective October 1, 2013, section 287.044,
  670  Florida Statutes, is created to read:
  671         287.044Powers, duties, and functions of the Department of
  672  Financial Services.—The Department of Financial Services is
  673  responsible for establishing and enforcing procurement and
  674  contracting policies and procedures for the Department of
  675  Management Services and all agencies. The Department of
  676  Financial Services has the following powers, duties, and
  677  functions:
  678         (1)To establish a system of coordinated and uniform
  679  procurement policies, procedures, and practices to be used by
  680  agencies when acquiring commodities and contractual services,
  681  which includes, but is not limited to:
  682         (a)The development of procedures to be used by an agency
  683  for issuing or advertising solicitations which include
  684  requirements for the agency to describe commodities, services,
  685  scope of work, and deliverables in a manner that promotes
  686  competition.
  687         1.Such procedures must provide for electronic posting of
  688  solicitations at least 10 days before the date set for receipt
  689  of bids, proposals, or replies, unless the agency determines in
  690  writing that a shorter period of time is necessary to avoid
  691  harming the interests of the state.
  692         2. The office may consult with the department regarding the
  693  development of solicitation distribution procedures to ensure
  694  that maximum distribution is afforded to certified minority
  695  business enterprises as defined in s. 288.703.
  696         3. The department shall designate a centralized website on
  697  the Internet for the department and other agencies to
  698  electronically post solicitations, decisions or intended
  699  decisions, and other matters relating to procurement.
  700         (b)The development of procedures to be used by an agency
  701  when issuing requests for information and requests for quotes.
  702         (c)The development of procedures to be used by state
  703  agencies when procuring information technology commodities and
  704  contractual services which ensure compliance with public records
  705  requirements and records retention and archiving requirements.
  706         (d)The development of procedures for the receipt and
  707  opening of bids, proposals, or replies by an agency. Such
  708  procedures must provide the office an opportunity to monitor and
  709  to ensure that the contract award is consistent with the
  710  requirements of s. 287.09451.
  711         (e)The development of procedures to be used by an agency
  712  in deciding to contract, including, but not limited to,
  713  identifying and assessing in writing project needs and
  714  requirements, availability of agency employees, budgetary
  715  availability or constraints, availability of facility equipment,
  716  current and projected agency workload capabilities, and the
  717  ability of another state agency to perform the services.
  718         (f) The development of procedures for recording and
  719  maintaining support documentation for a cost or price analysis
  720  to be performed before the award of a contract in excess of the
  721  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  722  cost or price analysis shall be used to validate the
  723  reasonableness of bids, proposals, or replies.
  724         (g) The development of procedures to be used by state
  725  agencies when entering into contracts which ensure standard
  726  formats, quantifiable and measurable deliverables, performance
  727  measures, and financial consequences for nonperformance.
  728         (h)The development of procedures to be used by an agency
  729  in maintaining a contract file for each contract which includes,
  730  but is not limited to, all pertinent information relating to the
  731  contract during the preparatory stages; the solicitation
  732  process, including a copy of the solicitation; the opening of
  733  bids, proposals, or replies; the evaluation and tabulation of
  734  bids, proposals, or replies; and the determination and notice of
  735  contract award.
  736         (2)To prescribe the methods of securing competitive sealed
  737  bids, proposals, and replies. Such methods may include, but are
  738  not limited to, procedures for identifying vendors; setting
  739  qualifications; conducting conferences or written question and
  740  answer periods for purposes of responding to vendor questions;
  741  evaluating bids, proposals, and replies; ranking and selecting
  742  vendors; and conducting negotiations.
  743         (3)To prescribe procedures for procuring information
  744  technology and information technology consultant services which
  745  provide for public announcement and qualification, competitive
  746  solicitations, the contract award, and a prohibition against
  747  contingent fees. Such procedures are limited to information
  748  technology consultant contracts for which the total project
  749  costs, or planning or study activities, are estimated to exceed
  750  the threshold amount provided in s. 287.017 for CATEGORY TWO.
  751         (4) To govern the purchase by an agency of any commodity or
  752  contractual service and to establish standards and
  753  specifications for a commodity. The Chief Financial Officer
  754  shall establish definitions and classes of commodities and
  755  contractual services which agencies must adhere to in acquiring
  756  or purchasing commodities or contractual services. The
  757  department’s authority under this section may not impair or
  758  interfere with an agency’s determination of its need for, or use
  759  of, services that include particular specifications.
  760         (5)To provide to agencies through an electronic medium or
  761  other means rules for purchasing commodities and contractual
  762  services. Agencies may not approve any account, or request
  763  payment of any account, for the purchase of any commodity or the
  764  procurement of any contractual service covered by a purchasing
  765  or contractual service rule except as authorized by such rule.
  766  The department shall furnish copies of rules adopted by the
  767  department to any county, municipality, or other local public
  768  agency requesting them.
  769         (6)To establish and maintain programs that disseminate
  770  information to governmental entities, industry vendors,
  771  educational institutions, and the general public concerning
  772  policies, procedures, rules, and forms for the procurement of
  773  commodities and contractual services.
  774         (7) To establish and maintain a list of vendors that are
  775  not allowed to do business with the state pursuant to ss.
  776  287.132(4) and 287.133. The department may add to the list
  777  vendors that are not compliant with federal or state laws, or
  778  that the department determines have uncollected accounts that
  779  are owed to the state.
  780         Section 8. Paragraph (f) of subsection (3) and subsections
  781  (9), (14), and (16) of section 287.057, Florida Statutes, are
  782  amended, and subsection (24) is added to that section, to read:
  783         287.057 Procurement of commodities or contractual
  784  services.—
  785         (3) When the purchase price of commodities or contractual
  786  services exceeds the threshold amount provided in s. 287.017 for
  787  CATEGORY TWO, no purchase of commodities or contractual services
  788  may be made without receiving competitive sealed bids,
  789  competitive sealed proposals, or competitive sealed replies
  790  unless:
  791         (f) The following contractual services and commodities are
  792  not subject to the competitive-solicitation requirements of this
  793  section:
  794         1. Artistic services. For the purposes of this subsection,
  795  the term “artistic services” does not include advertising or
  796  typesetting. As used in this subparagraph, the term
  797  “advertising” means the making of a representation in any form
  798  in connection with a trade, business, craft, or profession in
  799  order to promote the supply of commodities or services by the
  800  person promoting the commodities or contractual services.
  801         2. Academic program reviews if the fee for such services
  802  does not exceed $50,000.
  803         3. Lectures by individuals.
  804         1.4. Legal services, including attorney, paralegal, expert
  805  witness, appraisal, or mediator services.
  806         2.5.a. Health services involving examination, diagnosis,
  807  treatment, prevention, medical consultation, or administration,
  808  and,.
  809         b. beginning January 1, 2011, health services, including,
  810  but not limited to, substance abuse and mental health services,
  811  involving examination, diagnosis, treatment, prevention, or
  812  medical consultation, if when such services are offered to
  813  eligible individuals participating in a specific program that
  814  qualifies multiple providers and uses a standard payment
  815  methodology. Reimbursement of administrative costs for providers
  816  of services purchased in this manner are shall also be exempt.
  817  For purposes of this subparagraph sub-subparagraph, the term
  818  “providers” means health professionals, health facilities, or
  819  organizations that deliver or arrange for the delivery of health
  820  services.
  821         3.6. Services provided to persons with mental or physical
  822  disabilities by not-for-profit corporations that which have
  823  obtained exemptions under the provisions of s. 501(c)(3) of the
  824  United States Internal Revenue Code or if when such services are
  825  governed by the provisions of Office of Management and Budget
  826  Circular A-122. However, in acquiring such services, the agency
  827  must shall consider the vendor’s ability of the vendor, past
  828  performance, willingness to meet time requirements, and price.
  829         4.7. Medicaid services delivered to an eligible Medicaid
  830  recipient, unless the agency is directed otherwise in law.
  831         5.8. Family placement services.
  832         6.9. Prevention services related to mental health,
  833  including drug abuse prevention programs, child abuse prevention
  834  programs, and shelters for runaways, operated by not-for-profit
  835  corporations. However, in acquiring such services, the agency
  836  must shall consider the vendor’s ability of the vendor, past
  837  performance, willingness to meet time requirements, and price.
  838         10. Training and education services provided to injured
  839  employees pursuant to s. 440.491(6).
  840         7.11. Contracts entered into pursuant to s. 337.11.
  841         8.12. Services or commodities provided by governmental
  842  agencies.
  843         (9) An agency may shall not divide the solicitation of
  844  commodities or contractual services so as to avoid the
  845  requirements of subsections (1)-(3) and reduce the ability of
  846  businesses to openly compete.
  847         (14) For each contractual services contract, the agency
  848  shall designate an employee to function as contract manager who
  849  shall be responsible for enforcing performance of the contract
  850  terms and conditions and serve as a liaison with the contractor.
  851  Each contract manager who is responsible for one or more
  852  contracts in excess of the threshold amount provided under s.
  853  287.017 for CATEGORY FIVE TWO must be certified pursuant to s.
  854  287.1312 attend training conducted by the Chief Financial
  855  Officer for accountability in contracts and grant management.
  856  The Chief Financial Officer shall establish and disseminate
  857  uniform procedures pursuant to s. 17.03(3) to ensure that
  858  contractual services have been rendered in accordance with the
  859  contract terms before the agency processes the invoice for
  860  payment. The procedures must shall include, but need not be
  861  limited to, procedures for monitoring and documenting contractor
  862  performance, reviewing and documenting all deliverables for
  863  which payment is requested by vendors, and providing written
  864  certification by contract managers of the agency’s receipt of
  865  goods and services.
  866         (16) For a contract in excess of the threshold amount
  867  provided in s. 287.017 for CATEGORY FOUR, the agency head shall
  868  appoint:
  869         (a) At least three persons to evaluate proposals and
  870  replies who collectively have experience and knowledge in the
  871  program areas and service requirements for which commodities or
  872  contractual services are sought.
  873         (b) At least three persons to conduct negotiations during a
  874  competitive sealed reply procurement who collectively have
  875  experience and knowledge in negotiating contracts, contract
  876  procurement, and the program areas and service requirements for
  877  which commodities or contractual services are sought. When the
  878  value of a contract is in excess of $1 million in any fiscal
  879  year, at least one of the persons conducting negotiations must
  880  be certified as a contract negotiator based upon rules adopted
  881  by the Department of Financial Services Management Services in
  882  order to ensure that certified contract negotiators are
  883  knowledgeable about effective negotiation strategies, capable of
  884  successfully implementing those strategies, and involved
  885  appropriately in the procurement process. At a minimum, the
  886  rules must address the qualifications required for
  887  certification, the method of certification, and the procedure
  888  for involving the certified negotiator. If the value of a
  889  contract is in excess of $10 million in any fiscal year, at
  890  least one of the persons conducting negotiations must be a
  891  Project Management Professional, as certified by the Project
  892  Management Institute.
  893         (24) An agency or other eligible user may purchase
  894  commodities or services through another agency’s existing
  895  contract rather than through competitive competition if the use
  896  of such contract is in the best interest of the state.
  897         Section 9. Paragraph (e) of subsection (1) of section
  898  287.058, Florida Statutes, is amended, and subsections (7)
  899  through (11) are added to that section, to read:
  900         287.058 Contract document.—
  901         (1) Every procurement of contractual services in excess of
  902  the threshold amount provided in s. 287.017 for CATEGORY TWO,
  903  except for the providing of health and mental health services or
  904  drugs in the examination, diagnosis, or treatment of sick or
  905  injured state employees or the providing of other benefits as
  906  required by the provisions of chapter 440, shall be evidenced by
  907  a written agreement embodying all provisions and conditions of
  908  the procurement of such services, which shall, where applicable,
  909  include, but not be limited to, a provision:
  910         (e) Dividing the contract into quantifiable, measurable,
  911  and verifiable units of deliverables which that must be received
  912  and accepted in writing by the contract manager before payment.
  913  Each deliverable must be directly related to the scope of work
  914  and specify a performance measure. As used in this paragraph,
  915  the term “performance measure” means the required minimum level
  916  of service to be performed and criteria for evaluating the
  917  successful completion of each deliverable.
  918  
  919  In lieu of a written agreement, the department may authorize the
  920  use of a purchase order for classes of contractual services, if
  921  the provisions of paragraphs (a)-(i) are included in the
  922  purchase order or solicitation. The purchase order must include,
  923  but need not be limited to, an adequate description of the
  924  services, the contract period, and the method of payment. In
  925  lieu of printing the provisions of paragraphs (a)-(i) in the
  926  contract document or purchase order, agencies may incorporate
  927  the requirements of paragraphs (a)-(i) by reference.
  928         (7) The Chief Financial Officer may review and approve
  929  contracts subject to this chapter before the execution of such
  930  contracts in accordance with rules adopted by the department.
  931  The review must ensure that all contracting laws have been met;
  932  that the contract document contains a clear statement of work,
  933  quantifiable and measureable deliverables, performance measures,
  934  financial consequences for nonperformance, and clear terms and
  935  conditions that protect the interests of the state; that
  936  documentation is available to support the contract; and that the
  937  associated costs of the contract are not unreasonable or
  938  inappropriate. A contract that does not comply with this
  939  subsection may be rejected and returned to the submitting agency
  940  for revision.
  941         (8) The Chief Financial Officer may establish dollar
  942  thresholds and other criteria for sampling the agreements that
  943  are to be reviewed prior to execution. The Chief Financial
  944  Officer may revise such thresholds and other criteria for an
  945  agency or the unit of any agency as he or she deems appropriate.
  946         (9) The department’s review of contract documentation may
  947  include, but need not be limited to:
  948         (a) Evidence of advertising the procurement opportunity, if
  949  applicable;
  950         (b) The bid, proposal, or reply itself, whether an
  951  invitation to bid, request for proposals, or invitation to
  952  negotiate, as applicable;
  953         (c) The preprocurement conference questions and answers;
  954         (d) Any additional documentation provided to bidders,
  955  proposers, or repliers;
  956         (e) The list of bidders, proposers, or repliers solicited;
  957         (f) The evaluation instrument and process description
  958  related to the contract;
  959         (g) The bid tabulation or evaluation record;
  960         (h) Documentation that supports the agency’s determination
  961  of vendor responsibility;
  962         (i) The successful bid, proposal, or reply in addition to
  963  the unsuccessful bids, proposals, or replies;
  964         (j) Documentation that supports the selection of the
  965  contractor;
  966         (k) The reasonableness of the price;
  967         (l) Verification that all statutory and regulatory
  968  requirements have been met; and
  969         (m) The proposed contract.
  970         (10) The department shall verify that a competitive process
  971  was used, if required by law, and that the contract was
  972  appropriately awarded on the basis of lowest price or best value
  973  to a responsive and reasonable bidder, proposer, or replier. For
  974  contracts not competitively awarded, the procurement record
  975  shall be reviewed for restrictive specifications and the
  976  agency’s justification for the noncompetitive method used in
  977  awarding the contract, including justification for the selection
  978  of the vendor and the reasonableness of the terms.
  979         (11) The department has 30 days to make a final
  980  determination regarding approval of a contract. The department
  981  and the agency entering into the contract may agree to a longer
  982  review period to ensure the thorough consideration of the
  983  procurement process and its results.
  984         Section 10. Subsection (3) of section 287.095, Florida
  985  Statutes, is repealed.
  986         Section 11. Section 287.1312, Florida Statutes, is created
  987  to read:
  988         287.1312Contract manager certification.—
  989         (1) The Department of Financial Services shall establish a
  990  training certification program for contract and grant managers
  991  and negotiators of contracts and grants. A state employee may
  992  not manage a contract or grant agreement in excess of the
  993  threshold amount provided in s. 287.017 for CATEGORY FIVE
  994  without obtaining a valid certification from the Department of
  995  Financial Services under this section. The program must include
  996  training in the following areas:
  997         (a) Procurement and the development of contracts.
  998         (b) Development and administration of grant agreements
  999  involving federal and state financial assistance.
 1000         (c) Responsibilities of a contract manager in the
 1001  management of state contracts and grant agreements.
 1002         (d) Federal and state audit and reporting requirements.
 1003         (e) Laws and rules relating to procurement and contract
 1004  administration.
 1005         (f) Any other subject matter that the Chief Financial
 1006  Officer determines will promote accountability in contract and
 1007  grant management.
 1008         (2) The program shall provide for periodic recertification,
 1009  as necessary. The Department of Financial Services shall
 1010  determine course requirements, maintain information on
 1011  certifications, and monitor the performance of contract and
 1012  grant managers. As part of such monitoring, the department shall
 1013  annually publish the results of agency manager audits and error
 1014  rates related to contract and grant management on its website.
 1015         (3) The Department of Financial Services may revoke a
 1016  manager’s certification for incompetence or conduct inconsistent
 1017  with the responsibilities of contract or grant management.
 1018         (4) The Department of Financial Services shall adopt rules
 1019  to administer this section.
 1020         Section 12. Paragraph (d) of subsection (1) of section
 1021  287.133, Florida Statutes, is amended to read:
 1022         287.133 Public entity crime; denial or revocation of the
 1023  right to transact business with public entities.—
 1024         (1) As used in this section:
 1025         (d) “Department” means the Department of Financial
 1026  Management Services.
 1027         Section 13. Paragraph (h) of subsection (3) of section
 1028  255.25, Florida Statutes, is amended to read:
 1029         255.25 Approval required prior to construction or lease of
 1030  buildings.—
 1031         (3)
 1032         (h) The Department of Management Services may, Pursuant to
 1033  s. 287.042(2)(a), the department shall procure a term contract
 1034  for real estate consulting and brokerage services. A state
 1035  agency may not purchase services from the contract unless the
 1036  contract has been procured under s. 287.057(1) after March 1,
 1037  2007, and contains the following provisions or requirements:
 1038         1. Awarded brokers must maintain an office or presence in
 1039  the market served. In awarding the contract, preference must be
 1040  given to brokers who that are licensed in this state under
 1041  chapter 475 and who that have 3 or more years of experience in
 1042  the market served. The contract may be made with up to three
 1043  tenant brokers in order to serve the marketplace in the north,
 1044  central, and south areas of the state.
 1045         2. Each contracted tenant broker works shall work under the
 1046  direction, supervision, and authority of the state agency,
 1047  subject to the rules governing lease procurements.
 1048         3. The department provides shall provide training for the
 1049  awarded tenant brokers concerning the rules governing the
 1050  procurement of leases.
 1051         4. Tenant brokers must comply with all applicable
 1052  provisions of s. 475.278.
 1053         5. Real estate consultants and tenant brokers are shall be
 1054  compensated by the state agency, subject to the provisions of
 1055  the term contract, and such compensation is subject to
 1056  appropriation by the Legislature. A real estate consultant or
 1057  tenant broker may not receive compensation directly from a
 1058  lessor for services that are rendered under the term contract.
 1059  Moneys paid by a lessor to the state agency under a facility
 1060  leasing arrangement are not subject to the charges imposed under
 1061  s. 215.20. All terms relating to the compensation of the real
 1062  estate consultant or tenant broker must shall be specified in
 1063  the term contract and may not be supplemented or modified by the
 1064  state agency using the contract.
 1065         6. The department conducts shall conduct periodic customer
 1066  satisfaction surveys.
 1067         7. Each state agency reports shall report the following
 1068  information to the department:
 1069         a. The number of leases that adhere to the goal of the
 1070  workspace-management initiative of 180 square feet per full-time
 1071  employee FTE.
 1072         b. The quality of space leased and the adequacy of tenant
 1073  improvement funds.
 1074         c. The timeliness of lease procurement, measured from the
 1075  date of the agency’s request to the finalization of the lease.
 1076         d. Whether cost-benefit analyses were performed before
 1077  execution of the lease in order to ensure that the lease is in
 1078  the best interest of the state.
 1079         e. The lease costs compared to market rates for similar
 1080  types and classifications of space according to the official
 1081  classifications of the Building Owners and Managers Association.
 1082         Section 14. Subsection (12) of section 287.012, Florida
 1083  Statutes, is amended to read:
 1084         287.012 Definitions.—As used in this part, the term:
 1085         (12) “Exceptional purchase” means any purchase of
 1086  commodities or contractual services excepted by law or rule from
 1087  the requirements for competitive solicitation, including, but
 1088  not limited to, purchases from a single source; purchases upon
 1089  receipt of fewer less than two responsive bids, proposals, or
 1090  replies; purchases made by an agency, after receiving approval
 1091  from the department, from a contract procured, pursuant to s.
 1092  287.057(1), or by another agency; and purchases made without
 1093  advertisement in the manner required under by s. 287.044(1)(a)
 1094  287.042(3)(b).
 1095         Section 15. Paragraph (a) of subsection (2) of section
 1096  402.7305, Florida Statutes, is amended to read:
 1097         402.7305 Department of Children and Family Services;
 1098  procurement of contractual services; contract management.—
 1099         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1100         (a) Notwithstanding s. 287.057(3)(f)8. 287.057(3)(f)12., if
 1101  whenever the department intends to contract with a public
 1102  postsecondary institution to provide a service, the department
 1103  must allow all public postsecondary institutions in this state
 1104  which that are accredited by the Southern Association of
 1105  Colleges and Schools to bid on the contract. Thereafter,
 1106  notwithstanding any other provision of law to the contrary, if a
 1107  public postsecondary institution intends to subcontract for any
 1108  service awarded in the contract, the subcontracted service must
 1109  be procured by competitive procedures.
 1110         Section 16. Subsection (3) of section 427.0135, Florida
 1111  Statutes, is amended to read:
 1112         427.0135 Purchasing agencies; duties and responsibilities.
 1113  Each purchasing agency, in carrying out the policies and
 1114  procedures of the commission, shall:
 1115         (3) Not procure transportation disadvantaged services
 1116  without initially negotiating with the commission, as provided
 1117  in s. 287.057(3)(f)8. 287.057(3)(f)12., or unless otherwise
 1118  authorized by statute. If the purchasing agency, after
 1119  consultation with the commission, determines that it cannot
 1120  reach mutually acceptable contract terms with the commission,
 1121  the purchasing agency may contract for the same transportation
 1122  services provided in a more cost-effective manner and of
 1123  comparable or higher quality and standards. The Medicaid agency
 1124  shall implement this subsection in a manner consistent with s.
 1125  409.908(18) and as otherwise limited or directed by the General
 1126  Appropriations Act.
 1127         Section 17. Subsection (2) of section 946.515, Florida
 1128  Statutes, is amended to read:
 1129         946.515 Use of goods and services produced in correctional
 1130  work programs.—
 1131         (2) A No similar product or service of comparable price and
 1132  quality found necessary for use by any state agency may not be
 1133  purchased from any source other than the corporation if the
 1134  corporation certifies that the product is manufactured by, or
 1135  the service is provided by, inmates and the product or service
 1136  meets the comparable performance specifications and comparable
 1137  price and quality requirements as specified under s.
 1138  287.042(1)(c) 287.042(1)(f) or as determined by an individual
 1139  agency as provided in this section. The purchasing authority of
 1140  any such state agency may make reasonable determinations of
 1141  need, price, and quality with reference to products or services
 1142  available from the corporation. In the event of a dispute
 1143  between the corporation and a any purchasing authority based
 1144  upon price or quality under this section or s. 287.042(1)(c)
 1145  287.042(1)(f), either party may request a hearing with the
 1146  Department of Management Services and, if not resolved, either
 1147  party may request a proceeding pursuant to ss. 120.569 and
 1148  120.57, which shall be referred to the Division of
 1149  Administrative Hearings within 60 days after such request, to
 1150  resolve any dispute under this section. A No party is not
 1151  entitled to any appeal pursuant to s. 120.68.
 1152         Section 18. Procurement review and report.—
 1153         (1) The Chief Financial Officer shall review and
 1154  investigate:
 1155         (a) All current state laws that govern the state
 1156  procurement of goods, services, and facilities;
 1157         (b) The procurement policies, rules, procedures, and
 1158  practices followed by the state agencies, boards, commissions,
 1159  offices, and other instrumentalities of the executive branch of
 1160  state government;
 1161         (c) The organization and management processes involved in
 1162  the state procurement of goods, services, and facilities before
 1163  the award of a state procurement contract, during the
 1164  solicitation of bids, the evaluation, and the negotiation of a
 1165  contract, and subsequent to the award of the contract to
 1166  determine the extent to which these organization and management
 1167  processes facilitate the legislative policy set forth in this
 1168  act; and
 1169         (d) Any other areas that the Chief Financial Officer deems
 1170  relevant to the review and investigation.
 1171         (2) In order to accomplish the procurement review directed
 1172  by this section, the Chief Financial Officer may:
 1173         (a) Acquire information directly from the head of any state
 1174  department or agency for the purpose of conducting this review.
 1175  All departments and agencies shall cooperate with the Chief
 1176  Financial Officer and furnish all information requested to the
 1177  extent permitted by law.
 1178         (b) Procure the services of experts and consultants.
 1179         (c) Contract with private organizations and nonprofit
 1180  institutions to carry out studies and prepare reports to
 1181  facilitate the review.
 1182         (3) By December 31, 2012, the Chief Financial Officer shall
 1183  submit to the Governor, the President of the Senate, and the
 1184  Speaker of the House of Representatives a report of findings and
 1185  recommendations for changes in statutes, rules, policies,
 1186  procedures, and organization necessary to carry out the policies
 1187  set forth in this act.
 1188         Section 19. The Legislature recognizes the need to reform
 1189  the purchasing cycle, from the development of a purchasing
 1190  agreement to the payment for goods or services provided to the
 1191  state. Therefore, chapter 287, Florida Statutes, is repealed
 1192  effective July 30, 2014.
 1193         Section 20. (1) For the 2012-2013 fiscal year, the sum of
 1194  $400,000 in nonrecurring funds is appropriated from the
 1195  Administrative Trust Fund in the Department of Financial
 1196  Services to contract for the Chief Financial Officer’s review of
 1197  the state’s procurement process.
 1198         (2) For the 2012-2013 fiscal year, the sum of $375,000 in
 1199  nonrecurring funds is appropriated from the Administrative Trust
 1200  Fund in the Department of Financial Services to contract for the
 1201  Chief Financial Officer’s administration of the certified
 1202  contract manager and negotiator programs.
 1203         (3) For the 2012-2013 fiscal year, the sum of $X00,000 in
 1204  recurring funds from the General Revenue fund and ___ full-time
 1205  equivalent positions and associated salary rate of ___ are
 1206  appropriated to the Chief Financial Officer for the purpose of
 1207  implementing the Chief Financial Officer’s expanded contract
 1208  auditing responsibilities under this act. Funds remaining
 1209  unexpended or unencumbered from this appropriation as of June
 1210  30, 2013, shall revert and be reappropriated for the same
 1211  purpose in the 2013-2014 fiscal year.
 1212         Section 21. Except as otherwise expressly provided in this
 1213  act, this act shall take effect July 1, 2012.