Florida Senate - 2012                      CS for CS for SB 1626
       
       
       
       By the Committees on Governmental Oversight and Accountability;
       and Banking and Insurance; and Senator Gaetz
       
       
       
       585-03103-12                                          20121626c2
    1                        A bill to be entitled                      
    2         An act relating to state contracting; amending s.
    3         11.45, F.S.; revising provisions relating to the
    4         distribution of the list of entities failing to comply
    5         with transparency requirements; conforming provisions
    6         to changes made by the act; amending s. 215.971, F.S.;
    7         requiring agreements funded with state or federal
    8         financial assistance to include a performance measure
    9         for each deliverable, to be reviewed and approved in
   10         accordance with rules adopted by the Department of
   11         Financial Services, and to have the contracting entity
   12         assign a grants manager who is responsible for
   13         enforcing performance of the agreement; amending s.
   14         215.985, F.S.; revising provisions relating to the
   15         Chief Financial Officer’s intergovernmental contract
   16         tracking system under the Transparency Florida Act;
   17         specifying the entities that are included in the
   18         tracking system; requiring that exempt and
   19         confidential information be redacted from contracts
   20         and procurement documents posted on the system;
   21         authorizing the Chief Financial Officer to make
   22         available the information posted on the system to the
   23         public through a secure website; authorizing the
   24         Department of Financial Services to adopt rules;
   25         repealing s. 216.0111, F.S., relating to a requirement
   26         that state agencies report certain contract
   27         information to the Department of Financial Services
   28         and transferring that requirement to s. 215.985, F.S.;
   29         amending s. 287.032, F.S.; dividing the
   30         responsibilities of the Department of Management
   31         Services under ch. 287, F.S., with the Department of
   32         Financial Services; amending s. 287.042, F.S.;
   33         limiting the duties of the Department of Management
   34         Services to the procurement of commodities and
   35         contractual services; directing the department to
   36         develop a list of interested vendors; deleting
   37         provisions requiring that the department perform
   38         duties relating to procurement and contracting
   39         policies and procedures; creating s. 287.044, F.S.;
   40         assigning duties relating to procurement and
   41         contracting policies and procedures to the Department
   42         of Financial Services; requiring the department to
   43         develop a list of vendors not allowed to do business
   44         with the state; amending s. 287.057, F.S.; revising
   45         the list of contractual services and commodities that
   46         are exempt from competitive solicitation to delete
   47         certain services from the exemption; revising
   48         provisions prohibiting an agency from dividing a
   49         solicitation; conforming provisions to changes made by
   50         the act; authorizing an agency or other eligible user
   51         to purchase commodities or services through another
   52         agency’s contract; amending s. 287.058, F.S.;
   53         requiring contracts to include a performance measure
   54         for each deliverable; authorizing the Chief Financial
   55         Officer to review and approve contracts; providing
   56         requirements for such reviews; authorizing the Chief
   57         Financial Officer to establish dollar thresholds and
   58         another criteria for sampling agreements that are to
   59         be reviewed before execution; providing criteria for
   60         the department’s review of contract documentation;
   61         requiring that the department verify that a
   62         competitive process was used and that a contract was
   63         appropriately awarded; providing for the review of
   64         procurement record for contracts not competitively
   65         awarded; specifying the number of days that the
   66         department must make its final determination regarding
   67         the approval of a contract; authorizing the department
   68         and the agency to agree to a longer review period;
   69         repealing s. 287.095(3), F.S., relating to certain
   70         products produced by inmate labor; creating s.
   71         287.1312, F.S.; requiring certification of contract
   72         managers by the Department of Financial Services for
   73         contracts of more than a certain amount; requiring the
   74         training program for the certification to provide
   75         training in certain areas; authorizing the department
   76         to adopt rules to administer the program; amending s.
   77         287.133, F.S.; revising the definition of “department”
   78         to mean the Department of Financial Services rather
   79         than the Department of Management Services with
   80         respect to provisions governing public entity crimes
   81         and placement on the convicted vendor list; amending
   82         ss. 255.25, 287.012, 402.7305, 427.0135, and 946.515,
   83         F.S.; conforming cross-references; requiring the Chief
   84         Financial Officer to conduct a study of current
   85         procurement laws pursuant to such policies; requiring
   86         that the Chief Financial Officer submit a report to
   87         the Legislature and Governor by a certain date on such
   88         study; repealing ch. 287, F.S., on a future date;
   89         providing appropriations; providing effective dates.
   90  
   91  Be It Enacted by the Legislature of the State of Florida:
   92  
   93         Section 1. Paragraphs (a) and (i) of subsection (7) of
   94  section 11.45, Florida Statutes, are amended to read:
   95         11.45 Definitions; duties; authorities; reports; rules.—
   96         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   97         (a) The Auditor General must shall notify the Legislative
   98  Auditing Committee of any local governmental entity, district
   99  school board, charter school, or charter technical career center
  100  that does not comply with the reporting requirements of s.
  101  215.985 or s. 218.39.
  102         (i) Beginning in 2012, The Auditor General shall annually
  103  transmit by July 15, to the President of the Senate, the Speaker
  104  of the House of Representatives, the Legislative Auditing
  105  Committee, and the Department of Financial Services, a list of
  106  all school districts, charter schools, charter technical career
  107  centers, Florida College System institutions, state
  108  universities, local governmental entities, and water management
  109  districts that have failed to comply with the transparency
  110  requirements of s. 215.985 as identified in the audit reports
  111  reviewed pursuant to paragraph (b) and those conducted pursuant
  112  to subsection (2).
  113         Section 2. Section 215.971, Florida Statutes, is amended to
  114  read:
  115         215.971 Agreements funded with federal and state
  116  assistance.—
  117         (1) For an agency agreement that provides state financial
  118  assistance to a recipient or subrecipient, as those terms are
  119  defined in s. 215.97, or that provides federal financial
  120  assistance to a subrecipient, as defined by applicable United
  121  States Office of Management and Budget circulars, the agreement
  122  must shall include a provision:
  123         (a)(1)A provision Specifying a scope of work that clearly
  124  establishes the tasks that the recipient or subrecipient is
  125  required to perform; and
  126         (b)(2)A provision Dividing the agreement into quantifiable
  127  units of deliverables which that must be received and accepted
  128  in writing by the agency before payment. Each deliverable must
  129  be directly related to the scope of work and must specify a
  130  performance measure. As used in this paragraph, the term
  131  “performance measure” means the required minimum level of
  132  service to be performed and the criteria for evaluating the
  133  successful completion of each deliverable.
  134         (2) Effective October 1, 2012, before execution, agreements
  135  to be funded with state or federal financial assistance must be
  136  submitted for review and approval in accordance with rules
  137  adopted by the Department of Financial Services. The review must
  138  ensure that the agreement document contains a clear statement of
  139  work, quantifiable and measureable deliverables, performance
  140  measures, and financial consequences for nonperformance. An
  141  agreement that does not comply with this subsection may be
  142  rejected and returned to the submitting agency for revision.
  143         (3) The Chief Financial Officer may establish dollar
  144  thresholds and other criteria for sampling the agreements that
  145  are to be reviewed prior to execution. The Chief Financial
  146  Officer may revise such thresholds and other criteria for an
  147  agency or the unit of any agency as he or she deems appropriate.
  148         (4) The department has 30 days to make a final
  149  determination regarding approval of an agreement. The department
  150  and the agency entering into the agreement may agree to a longer
  151  review period to ensure the thorough consideration of the
  152  procurement process and its results.
  153         (5) For each agreement funded with federal or state
  154  assistance, the contracting agency shall designate an employee
  155  to function as grant manager who shall be responsible for
  156  enforcing performance of the agreement terms and conditions and
  157  serve as a liaison with the recipient. A grant manager who is
  158  responsible for one or more agreements in excess of the
  159  threshold amount provided in s. 287.017 for CATEGORY FIVE must
  160  be certified under s. 287.1312. The Chief Financial Officer
  161  shall establish and disseminate uniform procedures for payment
  162  requests pursuant to s. 17.03(3) to ensure that services are
  163  rendered in accordance with the agreement terms before the
  164  agency processes an invoice for payment. The procedures must
  165  include, but need not be limited to, procedures for monitoring
  166  and documenting a recipient’s performance, reviewing and
  167  documenting all deliverables for which payment is requested by
  168  the recipient, and providing written certification by the grant
  169  manager of the agency’s receipt of goods and services.
  170         Section 3. Subsection (16) of section 215.985, Florida
  171  Statutes, is amended to read:
  172         215.985 Transparency in government spending.—
  173         (16) The Chief Financial Officer shall establish and
  174  maintain a secure, shared, intergovernmental contract tracking
  175  provide public access to a state contract management system.
  176         (a) Within 30 calendar days after executing a contract,
  177  each state agency as defined in s. 216.011(1), and, effective
  178  November 1, 2013, each local governmental entity and independent
  179  special district as defined in s. 218.31, each district school
  180  board as described in s. 1001.32, the Board of Governors of the
  181  State University System as described in s. 1001.70, and each
  182  Florida College System institution board of trustees as
  183  described in s. 1001.61 must post the following that provides
  184  information and documentation relating to that contract on the
  185  contract tracking system: contracts procured by governmental
  186  entities.
  187         1. The name of the contracting entities;
  188         2. The procurement method;
  189         3. The contract beginning and ending dates;
  190         4. The nature or type of the commodities or services
  191  purchased;
  192         5. Applicable contract unit prices and deliverables;
  193         6. Total compensation to be paid or received under the
  194  contract;
  195         7. All payments made to the contract vendor to date;
  196         8. All commodities or services received from the contract
  197  vendor to date;
  198         9. Applicable contract performance measures;
  199         10. Contract extensions or renewals, if any;
  200         11. The justification for not using competitive
  201  solicitation to procure the contract, including citation to any
  202  statutory exemption or exception from competitive solicitation,
  203  if applicable;
  204         12. Electronic copies of the contract and procurement
  205  documents, including any provision that may have been redacted
  206  to conceal exempt or confidential information; and
  207         13.Any other information regarding the contract or the
  208  procurement which may be required by the Department of Financial
  209  Services.
  210         (a) The data collected in the system must include, but need
  211  not be limited to, the contracting agency; the procurement
  212  method; the contract beginning and ending dates; the type of
  213  commodity or service; the purpose of the commodity or service;
  214  the compensation to be paid; compliance information, such as
  215  performance metrics for the service or commodity; contract
  216  violations; the number of extensions or renewals; and the
  217  statutory authority for providing the service.
  218         (b) Within 30 calendar days after a major modification or
  219  amendment change to an existing contract, or the execution of a
  220  new contract, agency procurement staff of the affected state
  221  governmental entity must shall update the necessary information
  222  described in paragraph (a) in the state contract tracking
  223  management system. A major modification or amendment change to a
  224  contract includes, but is not limited to, a renewal,
  225  termination, or extension of the contract, or an amendment to
  226  the contract as determined by the Chief Financial Officer.
  227         (c) Each entity identified in paragraph (a) must redact, as
  228  defined in s. 119.011, any exempt or confidential information,
  229  including trade secrets as defined in s. 688.002 or s. 812.081,
  230  from the contract or procurement documents before posting an
  231  electronic copy of such documents on the contract tracking
  232  system.
  233         1. If an entity becomes aware that an electronic copy of a
  234  contract or procurement document that it posted has not been
  235  properly redacted, the entity must replace the electronic copy
  236  of the documents with a redacted copy.
  237         2. If a party to a contract, or an authorized
  238  representative thereof, discovers that an electronic copy of a
  239  contract or procurement document on the system has not been
  240  properly redacted, the party or representative may request the
  241  entity that posted the document to redact the exempt or
  242  confidential information. Upon receipt of a request in
  243  compliance with this subparagraph, the entity that posted the
  244  document shall redact the exempt or confidential information.
  245         a. Such request must be in writing and delivered by mail,
  246  facsimile, or electronic transmission, or in person to the
  247  entity that posted the information. The request must identify
  248  the specific document, the page numbers that include the exempt
  249  or confidential information, the information that is exempt or
  250  confidential, and the relevant statutory exemption. A fee may
  251  not be charged for a redaction made pursuant to such request.
  252         b. If necessary, a party to the contract may petition the
  253  circuit court for an order directing compliance with this
  254  paragraph.
  255         3. The Chief Financial Officer, the Department of Financial
  256  Services, or any officer, employee, or contractor thereof, is
  257  not responsible for redacting exempt or confidential information
  258  from an electronic copy of a contract or procurement document
  259  posted by another entity on the system, and is not liable for
  260  the failure of the entity to redact the exempt or confidential
  261  information. The Department of Financial Services may notify the
  262  posting entity if it discovers that a document posted on the
  263  tracking system contains exempt or confidential information.
  264         (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial
  265  Officer may make information posted on the contract tracking
  266  system available for viewing and downloading by the public
  267  through a secure website. Unless otherwise provided by law,
  268  information retrieved electronically pursuant to this paragraph
  269  is not admissible in court as an authenticated document.
  270         1. The Chief Financial Officer may regulate and prohibit
  271  the posting of records that could facilitate identity theft or
  272  fraud, such as signatures; compromise or reveal an agency
  273  investigation; reveal the identity of undercover personnel;
  274  reveal proprietary confidential business information or trade
  275  secrets; reveal an individual’s medical information; or reveal
  276  any other record or information that the Chief Financial Officer
  277  believes may jeopardize the health, safety, or welfare of the
  278  public. However, such prohibition does not eliminate the duty of
  279  an entity to provide a copy of a public record upon request. The
  280  Chief Financial Officer shall use appropriate Internet security
  281  measures to ensure that no person has the ability to alter or
  282  modify records available on the website.
  283         2. Records made available on the website, including
  284  electronic copies of contracts or procurement documents, may not
  285  reveal information made exempt or confidential by law. Notice of
  286  the right of an affected party to request redaction of exempt or
  287  confidential information pursuant to paragraph (c) must be
  288  conspicuously and clearly displayed on the website. This
  289  includes, but is not limited to:
  290         a. Criminal intelligence or criminal investigative
  291  information as defined in s. 119.011;
  292         b. Surveillance techniques or procedures or personnel;
  293         c. The identity of a confidential informant or confidential
  294  source;
  295         d. The identify of undercover personnel of a criminal
  296  justice agency;
  297         e. A security system plan; or
  298         f. Trade secret as defined in s. 688.002 or s. 812.081.
  299         (e) The posting of information on the contract tracking
  300  system or the provision of contract information on a website for
  301  public viewing and downloading does not eliminate the duty of an
  302  entity to respond to a public record request for such
  303  information or to a subpoena for such information.
  304         1. A request for a copy of a contract or procurement
  305  document or a certified copy of a contract or procurement
  306  document shall be made to the entity that is party to the
  307  contract and that maintains the original documents. Such request
  308  may not be made to the Chief Financial Officer or the Department
  309  of Financial Services or any officer, employee, or contractor
  310  thereof unless the Chief Financial Officer or the department is
  311  a party to the contract.
  312         2. A subpoena for a copy of a contract or procurement
  313  document or certified copy of a contract or procurement document
  314  must be served on the entity that is a party to the contract and
  315  that maintains the original documents. The Chief Financial
  316  Officer or the Department of Financial Services or any officer,
  317  employee, or contractor thereof may not be served a subpoena for
  318  those records unless the Chief Financial Officer or the
  319  department is a party to the contract.
  320         (f) The Department of Financial Services may adopt rules to
  321  administer this subsection.
  322         Section 4. Section 216.0111, Florida Statutes, is repealed.
  323         Section 5. Effective October 1, 2013, section 287.032,
  324  Florida Statutes, is amended to read:
  325         287.032 Departmental responsibility purpose of department.
  326  Pursuant to the administration of this chapter:
  327         (1)It shall be The responsibility purpose of the
  328  Department of Management Services is to:
  329         (a)(1)To Promote efficiency, economy, and the conservation
  330  of energy and coordinate to effect coordination in the purchase
  331  of commodities and contractual services for the state.
  332         (2) To provide uniform commodity and contractual service
  333  procurement policies, rules, procedures, and forms for use by
  334  agencies and eligible users.
  335         (b)(3)To Procure and distribute federal surplus tangible
  336  personal property allocated to the state by the Federal
  337  Government.
  338         (2) The responsibility of the Department of Financial
  339  Services is to:
  340         (a) Provide uniform commodity and contractual service
  341  procurement policies, rules, procedures, and forms for use by
  342  agencies and eligible users.
  343         (b) Monitor agencies with respect to compliance with
  344  established policies, rules, and procedures.
  345         Section 6. Effective October 1, 2013, section 287.042,
  346  Florida Statutes, is amended to read:
  347         287.042 Powers, duties, and functions of the Department of
  348  Management Services.—The department is responsible for the
  349  procurement of commodities and contractual services for agencies
  350  and has shall have the following powers, duties, and functions:
  351         (1)(a) To canvass all sources of supply, establish and
  352  maintain a vendor list, and contract for the purchase, lease, or
  353  acquisition, including purchase by installment sales or lease
  354  purchase contracts which may provide for the payment of interest
  355  on unpaid portions of the purchase price, of all commodities and
  356  contractual services required by an any agency under this
  357  chapter. A Any contract providing for deferred payments and the
  358  payment of interest is shall be subject to specific rules
  359  adopted by the Department of Financial Services.
  360         (a)(b)The department shall develop a list of interested
  361  vendors to be maintained by classes of commodities and
  362  contractual services. The list may not be used to prequalify a
  363  vendor or to exclude an interested vendor from bidding. However,
  364  a vendor barred by the Chief Financial Officer pursuant to s.
  365  287.044(7) may not be included on the list. The department may
  366  remove from the its vendor list any source of supply which fails
  367  to fulfill any of its duties specified in a contract with the
  368  state. The department It may reinstate any such source of supply
  369  if the department when it is satisfied that further instances of
  370  default will not occur.
  371         (b)(c) In order to promote the cost-effective procurement
  372  of commodities and contractual services, the department or an
  373  agency may enter into contracts that limit the liability of a
  374  vendor consistent with s. 672.719.
  375         (d) The department shall issue commodity numbers for all
  376  products of the corporation operating the correctional industry
  377  program which meet or exceed department specifications.
  378         (c)(e) The department shall include the products offered by
  379  the corporation operating the correctional industry program on
  380  any listing prepared by the department which lists state term
  381  contracts executed by the department. The products or services
  382  shall be placed on such list in a category based upon
  383  specification criteria developed through a joint effort of the
  384  department and the corporation and approved by the department.
  385         1.(f) The corporation may submit products and services to
  386  the department for testing, analysis, and review relating to the
  387  quality and cost comparability. If, after review and testing,
  388  the department approves of the products and services, the
  389  department shall give written notice thereof to the corporation.
  390  The corporation shall pay a reasonable fee charged for the
  391  testing of its products by the Department of Agriculture and
  392  Consumer Services.
  393         2. The department shall issue a commodity number for all
  394  products of the corporation which meet or exceed department
  395  specifications.
  396         (d)(g) The department shall include products and services
  397  that are offered by a qualified nonprofit agency for the blind
  398  or for the other severely handicapped organized pursuant to
  399  chapter 413 and that have been determined to be suitable for
  400  purchase pursuant to s. 413.035 on a any department listing of
  401  state term contracts. The products and services shall be placed
  402  on such list in a category based upon specification criteria
  403  developed by the department in consultation with the qualified
  404  nonprofit agency.
  405         (e)(h) The department may collect fees for the use of its
  406  electronic information services. The fees may be imposed on an
  407  individual transaction basis or as a fixed subscription for a
  408  designated period of time. At a minimum, the fees shall be
  409  determined in an amount sufficient to cover the department’s
  410  projected costs for of the services, including overhead, in
  411  accordance with the policies of the department of Management
  412  Services for computing its administrative assessment. All fees
  413  collected under this paragraph shall be deposited in the
  414  Operating Trust Fund for disbursement as provided by law.
  415         (2)(a) To establish purchasing agreements and procure state
  416  term contracts for commodities and contractual services,
  417  pursuant to s. 287.057, under which state agencies shall, and
  418  eligible users may, make purchases pursuant to s. 287.056.
  419         (a) The department may restrict purchases by from some term
  420  contracts to state agencies from only for those term contracts
  421  if where the inclusion of other governmental entities will have
  422  an adverse effect on competition or on to those federal
  423  facilities located in this state. In such planning or
  424  purchasing, the office of Supplier Diversity may monitor to
  425  ensure that opportunities are afforded for contracting with
  426  minority business enterprises. The department, for state term
  427  contracts, and all agencies, for multiyear contractual services
  428  or term contracts, shall explore reasonable and economical means
  429  to use utilize certified minority business enterprises.
  430  Purchases by any county, municipality, private nonprofit
  431  community transportation coordinator designated pursuant to
  432  chapter 427, while conducting business related solely to the
  433  Commission for the Transportation Disadvantaged, or other local
  434  public agency under the provisions in the state purchasing
  435  contracts, and purchases, from the corporation operating the
  436  correctional work programs, of products or services that are
  437  subject to paragraph (1)(c) (1)(f), are exempt from the
  438  competitive solicitation requirements otherwise applying to
  439  their purchases.
  440         (b) As an alternative to any provision in s. 120.57(3)(c),
  441  the department may proceed with the competitive solicitation or
  442  contract award process of a term contract if when the secretary
  443  of the department or his or her designee sets forth in writing
  444  particular facts and circumstances that which demonstrate that
  445  the delay incident to staying the solicitation or contract award
  446  process would be detrimental to the interests of the state. If,
  447  after the award of the a contract resulting from a competitive
  448  solicitation in which a timely protest was received and in which
  449  the state did not prevail, the contract may be canceled and
  450  reawarded.
  451         (c) Any person who files an action protesting a decision or
  452  intended decision pertaining to contracts administered by the
  453  department, a water management district, or an agency pursuant
  454  to s. 120.57(3)(b) shall post with the department, the water
  455  management district, or the agency at the time of filing the
  456  formal written protest a bond payable to the department, the
  457  water management district, or agency in an amount equal to 1
  458  percent of the estimated contract amount. For protests of
  459  decisions or intended decisions pertaining to exceptional
  460  purchases, the bond must shall be in an amount equal to 1
  461  percent of the estimated contract amount for the exceptional
  462  purchase.
  463         1. The estimated contract amount shall be based upon the
  464  contract price submitted by the protestor or, if no contract
  465  price was submitted, the department, water management district,
  466  or agency shall estimate the contract amount based on factors,
  467  including, but not limited to, the price of previous or existing
  468  contracts for similar commodities or contractual services, the
  469  amount appropriated by the Legislature for the contract, or the
  470  fair market value of similar commodities or contractual
  471  services. The agency shall provide the estimated contract amount
  472  to the vendor within 72 hours, excluding Saturdays, Sundays, and
  473  state holidays, after the filing of the notice of protest by the
  474  vendor. The estimated contract amount is not subject to protest
  475  pursuant to s. 120.57(3).
  476         2. The bond shall be conditioned upon the payment of all
  477  costs and charges that are adjudged against the protestor in the
  478  administrative hearing in which the action is brought and in any
  479  subsequent appellate court proceeding.
  480         3. In lieu of a bond, the department, the water management
  481  district, or agency may, in either case, accept a cashier’s
  482  check, official bank check, or money order in the amount of the
  483  bond.
  484         4. If, after completion of the administrative hearing
  485  process and any appellate court proceedings, the department,
  486  water management district, or agency prevails, it shall recover
  487  all costs and charges, which must shall be included in the final
  488  order or judgment, excluding attorney attorney’s fees. This
  489  section shall not apply to protests filed by the Office of
  490  Supplier Diversity. Upon payment of such costs and charges by
  491  the protestor, the bond, cashier’s check, official bank check,
  492  or money order shall be returned to the protestor. If, after the
  493  completion of the administrative hearing process and any
  494  appellate court proceedings, the protestor prevails, the
  495  protestor may shall recover from the department, water
  496  management district, or agency all costs and charges that are
  497  which shall be included in the final order or judgment,
  498  excluding attorney attorney’s fees.
  499         5. This paragraph does not apply to protests filed by the
  500  office.
  501         (3) To establish a system of coordinated, uniform
  502  procurement policies, procedures, and practices to be used by
  503  agencies in acquiring commodities and contractual services,
  504  which shall include, but not be limited to:
  505         (a) Development of a list of interested vendors to be
  506  maintained by classes of commodities and contractual services.
  507  This list shall not be used to prequalify vendors or to exclude
  508  any interested vendor from bidding.
  509         (b)1. Development of procedures for advertising
  510  solicitations. These procedures must provide for electronic
  511  posting of solicitations for at least 10 days before the date
  512  set for receipt of bids, proposals, or replies, unless the
  513  department or other agency determines in writing that a shorter
  514  period of time is necessary to avoid harming the interests of
  515  the state. The Office of Supplier Diversity may consult with the
  516  department regarding the development of solicitation
  517  distribution procedures to ensure that maximum distribution is
  518  afforded to certified minority business enterprises as defined
  519  in s. 288.703.
  520         2. Development of procedures for electronic posting. The
  521  department shall designate a centralized website on the Internet
  522  for the department and other agencies to electronically post
  523  solicitations, decisions or intended decisions, and other
  524  matters relating to procurement.
  525         (c) Development of procedures for the receipt and opening
  526  of bids, proposals, or replies by an agency. Such procedures
  527  shall provide the Office of Supplier Diversity an opportunity to
  528  monitor and ensure that the contract award is consistent with
  529  the requirements of s. 287.09451.
  530         (d) Development of procedures to be used by an agency in
  531  deciding to contract, including, but not limited to, identifying
  532  and assessing in writing project needs and requirements,
  533  availability of agency employees, budgetary constraints or
  534  availability, facility equipment availability, current and
  535  projected agency workload capabilities, and the ability of any
  536  other state agency to perform the services.
  537         (e) Development of procedures to be used by an agency in
  538  maintaining a contract file for each contract which shall
  539  include, but not be limited to, all pertinent information
  540  relating to the contract during the preparatory stages; a copy
  541  of the solicitation; documentation relating to the solicitation
  542  process; opening of bids, proposals, or replies; evaluation and
  543  tabulation of bids, proposals, or replies; and determination and
  544  notice of award of contract.
  545         (f) Development of procedures to be used by an agency for
  546  issuing solicitations that include requirements to describe
  547  commodities, services, scope of work, and deliverables in a
  548  manner that promotes competition.
  549         (g) Development of procedures to be used by an agency when
  550  issuing requests for information and requests for quotes.
  551         (h) Development of procedures to be used by state agencies
  552  when procuring information technology commodities and
  553  contractual services that ensure compliance with public records
  554  requirements and records retention and archiving requirements.
  555         (4)(a) To prescribe the methods of securing competitive
  556  sealed bids, proposals, and replies. Such methods may include,
  557  but are not limited to, procedures for identifying vendors;
  558  setting qualifications; conducting conferences or written
  559  question and answer periods for purposes of responding to vendor
  560  questions; evaluating bids, proposals, and replies; ranking and
  561  selecting vendors; and conducting negotiations.
  562         (b) To prescribe procedures for procuring information
  563  technology and information technology consultant services that
  564  provide for public announcement and qualification, competitive
  565  solicitations, contract award, and prohibition against
  566  contingent fees. Such procedures are limited to information
  567  technology consultant contracts for which the total project
  568  costs, or planning or study activities, are estimated to exceed
  569  the threshold amount provided in s. 287.017, for CATEGORY TWO.
  570         (3)(5) To prescribe specific commodities and quantities to
  571  be purchased locally.
  572         (6)(a) To govern the purchase by any agency of any
  573  commodity or contractual service and to establish standards and
  574  specifications for any commodity.
  575         (4)(b) Except for the purchase of insurance, to the
  576  department may delegate to agencies the authority for the
  577  procurement of and contracting for commodities or contractual
  578  services.
  579         (7) To establish definitions and classes of commodities and
  580  contractual services. Agencies shall follow the definitions and
  581  classes of commodities and contractual services established by
  582  the department in acquiring or purchasing commodities or
  583  contractual services. The authority of the department under this
  584  section shall not be construed to impair or interfere with the
  585  determination by state agencies of their need for, or their use
  586  of, services including particular specifications.
  587         (8) To provide any commodity and contractual service
  588  purchasing rules to the Chief Financial Officer and all agencies
  589  through an electronic medium or other means. Agencies may not
  590  approve any account or request any payment of any account for
  591  the purchase of any commodity or the procurement of any
  592  contractual service covered by a purchasing or contractual
  593  service rule except as authorized therein. The department shall
  594  furnish copies of rules adopted by the department to any county,
  595  municipality, or other local public agency requesting them.
  596         (5)(9) To require that every agency furnish information
  597  relative to its commodity and contractual services purchases and
  598  methods of purchasing commodities and contractual services to
  599  the department when so requested.
  600         (6)(10) To prepare statistical data concerning the method
  601  of procurement, terms, usage, and disposition of commodities and
  602  contractual services by agencies. All agencies shall furnish
  603  such information for this purpose to the office and to the
  604  department, as the department or office may call for, but at
  605  least no less frequently than annually, on such forms or in such
  606  manner as the department may prescribe.
  607         (11) To establish and maintain programs for the purpose of
  608  disseminating information to government, industry, educational
  609  institutions, and the general public concerning policies,
  610  procedures, rules, and forms for the procurement of commodities
  611  and contractual services.
  612         (7)(12) Except as otherwise provided in this section
  613  herein, to adopt rules necessary to carry out the purposes of
  614  this section, including the authority to delegate to any agency
  615  any and all of the responsibility conferred by this section,
  616  retaining to the department any and all authority for
  617  supervision thereof. Such purchasing of commodities and
  618  procurement of contractual services by state agencies must also
  619  shall be in strict accordance with the rules and procedures
  620  prescribed by the Department of Financial Services.
  621         (8)(13) If the department determines in writing that it is
  622  in the best interest of the state, to award to multiple
  623  suppliers contracts for commodities and contractual services
  624  established by the department for use by all agencies. Such
  625  awards may be on a statewide or regional basis. If regional
  626  contracts are established by the department, multiple supplier
  627  awards may be based upon multiple awards for regions. Agencies
  628  may award contracts to a responsible and responsive vendor on a
  629  statewide or regional basis.
  630         (9)(14) To procure and distribute federal surplus tangible
  631  personal property allocated to the state by the Federal
  632  Government.
  633         (10)(15) To enter into joint agreements with governmental
  634  agencies, as defined in s. 163.3164, for the purpose of pooling
  635  funds for the purchase of commodities or information technology
  636  that can be used by multiple agencies.
  637         (a) Each agency that has been appropriated or has existing
  638  funds for such purchase, shall, upon contract award by the
  639  department, transfer their portion of the funds into the
  640  department’s Operating Trust Fund for payment by the department.
  641  The funds shall be transferred by the Executive Office of the
  642  Governor pursuant to the agency budget amendment request
  643  provisions in chapter 216.
  644         (b) Agencies that sign the joint agreements are financially
  645  obligated for their portion of the agreed-upon funds. If an
  646  agency becomes more than 90 days delinquent in paying the funds,
  647  the department shall certify to the Chief Financial Officer the
  648  amount due, and the Chief Financial Officer shall transfer the
  649  amount due to the Operating Trust Fund of the department from
  650  any of the agency’s available funds. The Chief Financial Officer
  651  shall report these transfers and the reasons for the transfers
  652  to the Executive Office of the Governor and the legislative
  653  appropriations committees.
  654         (11)(16) To evaluate contracts let by the Federal
  655  Government, another state, or a political subdivision for the
  656  provision of commodities and contract services, and, if it is
  657  determined in writing to be cost-effective and in the best
  658  interest of the state, to enter into a written agreement
  659  authorizing an agency to make purchases under such contract.
  660         (12)(17)(a) To enter into contracts pursuant to chapter 957
  661  for the designing, financing, acquiring, leasing, constructing,
  662  or operating of private correctional facilities. The department
  663  shall enter into such a contract or contracts with one
  664  contractor per facility for the designing, acquiring, financing,
  665  leasing, constructing, and operating of that facility or may, if
  666  specifically authorized by the Legislature, separately contract
  667  for each of any such services.
  668         (a)(b)The department shall also To manage and enforce
  669  compliance with existing or future contracts entered into
  670  pursuant to chapter 957.
  671         (b) The department may not delegate the responsibilities
  672  conferred by this subsection.
  673         Section 7. Effective October 1, 2013, section 287.044,
  674  Florida Statutes, is created to read:
  675         287.044Powers, duties, and functions of the Department of
  676  Financial Services.—The Department of Financial Services is
  677  responsible for establishing and enforcing procurement and
  678  contracting policies and procedures for the Department of
  679  Management Services and all agencies. The Department of
  680  Financial Services has the following powers, duties, and
  681  functions:
  682         (1)To establish a system of coordinated and uniform
  683  procurement policies, procedures, and practices to be used by
  684  agencies when acquiring commodities and contractual services,
  685  which includes, but is not limited to:
  686         (a)The development of procedures to be used by an agency
  687  for issuing or advertising solicitations which include
  688  requirements for the agency to describe commodities, services,
  689  scope of work, and deliverables in a manner that promotes
  690  competition.
  691         1.Such procedures must provide for electronic posting of
  692  solicitations at least 10 days before the date set for receipt
  693  of bids, proposals, or replies, unless the agency determines in
  694  writing that a shorter period of time is necessary to avoid
  695  harming the interests of the state.
  696         2. The office may consult with the department regarding the
  697  development of solicitation distribution procedures to ensure
  698  that maximum distribution is afforded to certified minority
  699  business enterprises as defined in s. 288.703.
  700         3. The department shall designate a centralized website on
  701  the Internet for the department and other agencies to
  702  electronically post solicitations, decisions or intended
  703  decisions, and other matters relating to procurement.
  704         (b)The development of procedures to be used by an agency
  705  when issuing requests for information and requests for quotes.
  706         (c)The development of procedures to be used by state
  707  agencies when procuring information technology commodities and
  708  contractual services which ensure compliance with public records
  709  requirements and records retention and archiving requirements.
  710         (d)The development of procedures for the receipt and
  711  opening of bids, proposals, or replies by an agency. Such
  712  procedures must provide the office an opportunity to monitor and
  713  to ensure that the contract award is consistent with the
  714  requirements of s. 287.09451.
  715         (e)The development of procedures to be used by an agency
  716  in deciding to contract, including, but not limited to,
  717  identifying and assessing in writing project needs and
  718  requirements, availability of agency employees, budgetary
  719  availability or constraints, availability of facility equipment,
  720  current and projected agency workload capabilities, and the
  721  ability of another state agency to perform the services.
  722         (f) The development of procedures for recording and
  723  maintaining support documentation for a cost or price analysis
  724  to be performed before the award of a contract in excess of the
  725  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  726  cost or price analysis shall be used to validate the
  727  reasonableness of bids, proposals, or replies.
  728         (g) The development of procedures to be used by state
  729  agencies when entering into contracts which ensure standard
  730  formats, quantifiable and measurable deliverables, performance
  731  measures, and financial consequences for nonperformance.
  732         (h)The development of procedures to be used by an agency
  733  in maintaining a contract file for each contract which includes,
  734  but is not limited to, all pertinent information relating to the
  735  contract during the preparatory stages; the solicitation
  736  process, including a copy of the solicitation; the opening of
  737  bids, proposals, or replies; the evaluation and tabulation of
  738  bids, proposals, or replies; and the determination and notice of
  739  contract award.
  740         (2)To prescribe the methods of securing competitive sealed
  741  bids, proposals, and replies. Such methods may include, but are
  742  not limited to, procedures for identifying vendors; setting
  743  qualifications; conducting conferences or written question and
  744  answer periods for purposes of responding to vendor questions;
  745  evaluating bids, proposals, and replies; ranking and selecting
  746  vendors; and conducting negotiations.
  747         (3)To prescribe procedures for procuring information
  748  technology and information technology consultant services which
  749  provide for public announcement and qualification, competitive
  750  solicitations, the contract award, and a prohibition against
  751  contingent fees. Such procedures are limited to information
  752  technology consultant contracts for which the total project
  753  costs, or planning or study activities, are estimated to exceed
  754  the threshold amount provided in s. 287.017 for CATEGORY TWO.
  755         (4) To govern the purchase by an agency of any commodity or
  756  contractual service and to establish standards and
  757  specifications for a commodity. The Chief Financial Officer
  758  shall establish definitions and classes of commodities and
  759  contractual services which agencies must adhere to in acquiring
  760  or purchasing commodities or contractual services. The
  761  department’s authority under this section may not impair or
  762  interfere with an agency’s determination of its need for, or use
  763  of, services that include particular specifications.
  764         (5)To provide to agencies through an electronic medium or
  765  other means rules for purchasing commodities and contractual
  766  services. Agencies may not approve any account, or request
  767  payment of any account, for the purchase of any commodity or the
  768  procurement of any contractual service covered by a purchasing
  769  or contractual service rule except as authorized by such rule.
  770  The department shall furnish copies of rules adopted by the
  771  department to any county, municipality, or other local public
  772  agency requesting them.
  773         (6)To establish and maintain programs that disseminate
  774  information to governmental entities, industry vendors,
  775  educational institutions, and the general public concerning
  776  policies, procedures, rules, and forms for the procurement of
  777  commodities and contractual services.
  778         (7) To establish and maintain a list of vendors that are
  779  not allowed to do business with the state pursuant to ss.
  780  287.132(4) and 287.133. The department may add to the list
  781  vendors that are not compliant with federal or state laws, or
  782  that the department determines have uncollected accounts that
  783  are owed to the state.
  784         Section 8. Paragraph (f) of subsection (3) and subsections
  785  (9), (14), and (16) of section 287.057, Florida Statutes, are
  786  amended, and subsection (24) is added to that section, to read:
  787         287.057 Procurement of commodities or contractual
  788  services.—
  789         (3) When the purchase price of commodities or contractual
  790  services exceeds the threshold amount provided in s. 287.017 for
  791  CATEGORY TWO, no purchase of commodities or contractual services
  792  may be made without receiving competitive sealed bids,
  793  competitive sealed proposals, or competitive sealed replies
  794  unless:
  795         (f) The following contractual services and commodities are
  796  not subject to the competitive-solicitation requirements of this
  797  section:
  798         1. Artistic services. For the purposes of this subsection,
  799  the term “artistic services” does not include advertising or
  800  typesetting. As used in this subparagraph, the term
  801  “advertising” means the making of a representation in any form
  802  in connection with a trade, business, craft, or profession in
  803  order to promote the supply of commodities or services by the
  804  person promoting the commodities or contractual services.
  805         2. Academic program reviews if the fee for such services
  806  does not exceed $50,000.
  807         3. Lectures by individuals.
  808         1.4. Legal services, including attorney, paralegal, expert
  809  witness, appraisal, or mediator services.
  810         2.5.a. Health services involving examination, diagnosis,
  811  treatment, prevention, medical consultation, or administration,
  812  and,.
  813         b. beginning January 1, 2011, health services, including,
  814  but not limited to, substance abuse and mental health services,
  815  involving examination, diagnosis, treatment, prevention, or
  816  medical consultation, if when such services are offered to
  817  eligible individuals participating in a specific program that
  818  qualifies multiple providers and uses a standard payment
  819  methodology. Reimbursement of administrative costs for providers
  820  of services purchased in this manner are shall also be exempt.
  821  For purposes of this subparagraph sub-subparagraph, the term
  822  “providers” means health professionals, health facilities, or
  823  organizations that deliver or arrange for the delivery of health
  824  services.
  825         3.6. Services provided to persons with mental or physical
  826  disabilities by not-for-profit corporations that which have
  827  obtained exemptions under the provisions of s. 501(c)(3) of the
  828  United States Internal Revenue Code or if when such services are
  829  governed by the provisions of Office of Management and Budget
  830  Circular A-122. However, in acquiring such services, the agency
  831  must shall consider the vendor’s ability of the vendor, past
  832  performance, willingness to meet time requirements, and price.
  833         4.7. Medicaid services delivered to an eligible Medicaid
  834  recipient, unless the agency is directed otherwise in law.
  835         5.8. Family placement services.
  836         6.9. Prevention services related to mental health,
  837  including drug abuse prevention programs, child abuse prevention
  838  programs, and shelters for runaways, operated by not-for-profit
  839  corporations. However, in acquiring such services, the agency
  840  must shall consider the vendor’s ability of the vendor, past
  841  performance, willingness to meet time requirements, and price.
  842         10. Training and education services provided to injured
  843  employees pursuant to s. 440.491(6).
  844         7.11. Contracts entered into pursuant to s. 337.11.
  845         8.12. Services or commodities provided by governmental
  846  agencies.
  847         (9) An agency may shall not divide the solicitation of
  848  commodities or contractual services so as to avoid the
  849  requirements of subsections (1)-(3) and reduce the ability of
  850  businesses to openly compete.
  851         (14) For each contractual services contract, the agency
  852  shall designate an employee to function as contract manager who
  853  shall be responsible for enforcing performance of the contract
  854  terms and conditions and serve as a liaison with the contractor.
  855  Each contract manager who is responsible for one or more
  856  contracts in excess of the threshold amount provided under s.
  857  287.017 for CATEGORY FIVE TWO must be certified pursuant to s.
  858  287.1312 attend training conducted by the Chief Financial
  859  Officer for accountability in contracts and grant management.
  860  The Chief Financial Officer shall establish and disseminate
  861  uniform procedures pursuant to s. 17.03(3) to ensure that
  862  contractual services have been rendered in accordance with the
  863  contract terms before the agency processes the invoice for
  864  payment. The procedures must shall include, but need not be
  865  limited to, procedures for monitoring and documenting contractor
  866  performance, reviewing and documenting all deliverables for
  867  which payment is requested by vendors, and providing written
  868  certification by contract managers of the agency’s receipt of
  869  goods and services.
  870         (16) For a contract in excess of the threshold amount
  871  provided in s. 287.017 for CATEGORY FOUR, the agency head shall
  872  appoint:
  873         (a) At least three persons to evaluate proposals and
  874  replies who collectively have experience and knowledge in the
  875  program areas and service requirements for which commodities or
  876  contractual services are sought.
  877         (b) At least three persons to conduct negotiations during a
  878  competitive sealed reply procurement who collectively have
  879  experience and knowledge in negotiating contracts, contract
  880  procurement, and the program areas and service requirements for
  881  which commodities or contractual services are sought. When the
  882  value of a contract is in excess of $1 million in any fiscal
  883  year, at least one of the persons conducting negotiations must
  884  be certified as a contract negotiator based upon rules adopted
  885  by the Department of Financial Services Management Services in
  886  order to ensure that certified contract negotiators are
  887  knowledgeable about effective negotiation strategies, capable of
  888  successfully implementing those strategies, and involved
  889  appropriately in the procurement process. At a minimum, the
  890  rules must address the qualifications required for
  891  certification, the method of certification, and the procedure
  892  for involving the certified negotiator. If the value of a
  893  contract is in excess of $10 million in any fiscal year, at
  894  least one of the persons conducting negotiations must be a
  895  Project Management Professional, as certified by the Project
  896  Management Institute.
  897         (24) An agency or other eligible user may purchase
  898  commodities or services through another agency’s existing
  899  contract rather than through competitive competition if the use
  900  of such contract is in the best interest of the state.
  901         Section 9. Paragraph (e) of subsection (1) of section
  902  287.058, Florida Statutes, is amended, and subsections (7)
  903  through (11) are added to that section, to read:
  904         287.058 Contract document.—
  905         (1) Every procurement of contractual services in excess of
  906  the threshold amount provided in s. 287.017 for CATEGORY TWO,
  907  except for the providing of health and mental health services or
  908  drugs in the examination, diagnosis, or treatment of sick or
  909  injured state employees or the providing of other benefits as
  910  required by the provisions of chapter 440, shall be evidenced by
  911  a written agreement embodying all provisions and conditions of
  912  the procurement of such services, which shall, where applicable,
  913  include, but not be limited to, a provision:
  914         (e) Dividing the contract into quantifiable, measurable,
  915  and verifiable units of deliverables which that must be received
  916  and accepted in writing by the contract manager before payment.
  917  Each deliverable must be directly related to the scope of work
  918  and specify a performance measure. As used in this paragraph,
  919  the term “performance measure” means the required minimum level
  920  of service to be performed and criteria for evaluating the
  921  successful completion of each deliverable.
  922  
  923  In lieu of a written agreement, the department may authorize the
  924  use of a purchase order for classes of contractual services, if
  925  the provisions of paragraphs (a)-(i) are included in the
  926  purchase order or solicitation. The purchase order must include,
  927  but need not be limited to, an adequate description of the
  928  services, the contract period, and the method of payment. In
  929  lieu of printing the provisions of paragraphs (a)-(i) in the
  930  contract document or purchase order, agencies may incorporate
  931  the requirements of paragraphs (a)-(i) by reference.
  932         (7) The Chief Financial Officer may review and approve
  933  contracts subject to this chapter before the execution of such
  934  contracts in accordance with rules adopted by the department.
  935  The review must ensure that all contracting laws have been met;
  936  that the contract document contains a clear statement of work,
  937  quantifiable and measureable deliverables, performance measures,
  938  financial consequences for nonperformance, and clear terms and
  939  conditions that protect the interests of the state; that
  940  documentation is available to support the contract; and that the
  941  associated costs of the contract are not unreasonable or
  942  inappropriate. A contract that does not comply with this
  943  subsection may be rejected and returned to the submitting agency
  944  for revision.
  945         (8) The Chief Financial Officer may establish dollar
  946  thresholds and other criteria for sampling the agreements that
  947  are to be reviewed prior to execution. The Chief Financial
  948  Officer may revise such thresholds and other criteria for an
  949  agency or the unit of any agency as he or she deems appropriate.
  950         (9) The department’s review of contract documentation may
  951  include, but need not be limited to:
  952         (a) Evidence of advertising the procurement opportunity, if
  953  applicable;
  954         (b) The bid, proposal, or reply itself, whether an
  955  invitation to bid, request for proposals, or invitation to
  956  negotiate, as applicable;
  957         (c) The preprocurement conference questions and answers;
  958         (d) Any additional documentation provided to bidders,
  959  proposers, or repliers;
  960         (e) The list of bidders, proposers, or repliers solicited;
  961         (f) The evaluation instrument and process description
  962  related to the contract;
  963         (g) The bid tabulation or evaluation record;
  964         (h) Documentation that supports the agency’s determination
  965  of vendor responsibility;
  966         (i) The successful bid, proposal, or reply in addition to
  967  the unsuccessful bids, proposals, or replies;
  968         (j) Documentation that supports the selection of the
  969  contractor;
  970         (k) The reasonableness of the price;
  971         (l) Verification that all statutory and regulatory
  972  requirements have been met; and
  973         (m) The proposed contract.
  974         (10) The department shall verify that a competitive process
  975  was used, if required by law, and that the contract was
  976  appropriately awarded on the basis of lowest price or best value
  977  to a responsive and reasonable bidder, proposer, or replier. For
  978  contracts not competitively awarded, the procurement record
  979  shall be reviewed for restrictive specifications and the
  980  agency’s justification for the noncompetitive method used in
  981  awarding the contract, including justification for the selection
  982  of the vendor and the reasonableness of the terms.
  983         (11) The department has 30 days to make a final
  984  determination regarding approval of a contract. The department
  985  and the agency entering into the contract may agree to a longer
  986  review period to ensure the thorough consideration of the
  987  procurement process and its results.
  988         Section 10. Subsection (3) of section 287.095, Florida
  989  Statutes, is repealed.
  990         Section 11. Section 287.1312, Florida Statutes, is created
  991  to read:
  992         287.1312Contract manager certification.—
  993         (1) The Department of Financial Services shall establish a
  994  training certification program for contract and grant managers
  995  and negotiators of contracts and grants. A state employee may
  996  not manage a contract or grant agreement in excess of the
  997  threshold amount provided in s. 287.017 for CATEGORY FIVE
  998  without obtaining a valid certification from the Department of
  999  Financial Services under this section. The program must include
 1000  training in the following areas:
 1001         (a) Procurement and the development of contracts.
 1002         (b) Development and administration of grant agreements
 1003  involving federal and state financial assistance.
 1004         (c) Responsibilities of a contract manager in the
 1005  management of state contracts and grant agreements.
 1006         (d) Federal and state audit and reporting requirements.
 1007         (e) Laws and rules relating to procurement and contract
 1008  administration.
 1009         (f) Any other subject matter that the Chief Financial
 1010  Officer determines will promote accountability in contract and
 1011  grant management.
 1012         (2) The program shall provide for periodic recertification,
 1013  as necessary. The Department of Financial Services shall
 1014  determine course requirements, maintain information on
 1015  certifications, and monitor the performance of contract and
 1016  grant managers. As part of such monitoring, the department shall
 1017  annually publish the results of agency manager audits and error
 1018  rates related to contract and grant management on its website.
 1019         (3) The Department of Financial Services may revoke a
 1020  manager’s certification for incompetence or conduct inconsistent
 1021  with the responsibilities of contract or grant management.
 1022         (4) The Department of Financial Services shall adopt rules
 1023  to administer this section.
 1024         Section 12. Paragraph (d) of subsection (1) of section
 1025  287.133, Florida Statutes, is amended to read:
 1026         287.133 Public entity crime; denial or revocation of the
 1027  right to transact business with public entities.—
 1028         (1) As used in this section:
 1029         (d) “Department” means the Department of Financial
 1030  Management Services.
 1031         Section 13. Paragraph (h) of subsection (3) of section
 1032  255.25, Florida Statutes, is amended to read:
 1033         255.25 Approval required prior to construction or lease of
 1034  buildings.—
 1035         (3)
 1036         (h) The Department of Management Services may, Pursuant to
 1037  s. 287.042(2)(a), the department shall procure a term contract
 1038  for real estate consulting and brokerage services. A state
 1039  agency may not purchase services from the contract unless the
 1040  contract has been procured under s. 287.057(1) after March 1,
 1041  2007, and contains the following provisions or requirements:
 1042         1. Awarded brokers must maintain an office or presence in
 1043  the market served. In awarding the contract, preference must be
 1044  given to brokers who that are licensed in this state under
 1045  chapter 475 and who that have 3 or more years of experience in
 1046  the market served. The contract may be made with up to three
 1047  tenant brokers in order to serve the marketplace in the north,
 1048  central, and south areas of the state.
 1049         2. Each contracted tenant broker works shall work under the
 1050  direction, supervision, and authority of the state agency,
 1051  subject to the rules governing lease procurements.
 1052         3. The department provides shall provide training for the
 1053  awarded tenant brokers concerning the rules governing the
 1054  procurement of leases.
 1055         4. Tenant brokers must comply with all applicable
 1056  provisions of s. 475.278.
 1057         5. Real estate consultants and tenant brokers are shall be
 1058  compensated by the state agency, subject to the provisions of
 1059  the term contract, and such compensation is subject to
 1060  appropriation by the Legislature. A real estate consultant or
 1061  tenant broker may not receive compensation directly from a
 1062  lessor for services that are rendered under the term contract.
 1063  Moneys paid by a lessor to the state agency under a facility
 1064  leasing arrangement are not subject to the charges imposed under
 1065  s. 215.20. All terms relating to the compensation of the real
 1066  estate consultant or tenant broker must shall be specified in
 1067  the term contract and may not be supplemented or modified by the
 1068  state agency using the contract.
 1069         6. The department conducts shall conduct periodic customer
 1070  satisfaction surveys.
 1071         7. Each state agency reports shall report the following
 1072  information to the department:
 1073         a. The number of leases that adhere to the goal of the
 1074  workspace-management initiative of 180 square feet per full-time
 1075  employee FTE.
 1076         b. The quality of space leased and the adequacy of tenant
 1077  improvement funds.
 1078         c. The timeliness of lease procurement, measured from the
 1079  date of the agency’s request to the finalization of the lease.
 1080         d. Whether cost-benefit analyses were performed before
 1081  execution of the lease in order to ensure that the lease is in
 1082  the best interest of the state.
 1083         e. The lease costs compared to market rates for similar
 1084  types and classifications of space according to the official
 1085  classifications of the Building Owners and Managers Association.
 1086         Section 14. Subsection (12) of section 287.012, Florida
 1087  Statutes, is amended to read:
 1088         287.012 Definitions.—As used in this part, the term:
 1089         (12) “Exceptional purchase” means any purchase of
 1090  commodities or contractual services excepted by law or rule from
 1091  the requirements for competitive solicitation, including, but
 1092  not limited to, purchases from a single source; purchases upon
 1093  receipt of fewer less than two responsive bids, proposals, or
 1094  replies; purchases made by an agency, after receiving approval
 1095  from the department, from a contract procured, pursuant to s.
 1096  287.057(1), or by another agency; and purchases made without
 1097  advertisement in the manner required under by s. 287.044(1)(a)
 1098  287.042(3)(b).
 1099         Section 15. Paragraph (a) of subsection (2) of section
 1100  402.7305, Florida Statutes, is amended to read:
 1101         402.7305 Department of Children and Family Services;
 1102  procurement of contractual services; contract management.—
 1103         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1104         (a) Notwithstanding s. 287.057(3)(f)8. 287.057(3)(f)12., if
 1105  whenever the department intends to contract with a public
 1106  postsecondary institution to provide a service, the department
 1107  must allow all public postsecondary institutions in this state
 1108  which that are accredited by the Southern Association of
 1109  Colleges and Schools to bid on the contract. Thereafter,
 1110  notwithstanding any other provision of law to the contrary, if a
 1111  public postsecondary institution intends to subcontract for any
 1112  service awarded in the contract, the subcontracted service must
 1113  be procured by competitive procedures.
 1114         Section 16. Subsection (3) of section 427.0135, Florida
 1115  Statutes, is amended to read:
 1116         427.0135 Purchasing agencies; duties and responsibilities.
 1117  Each purchasing agency, in carrying out the policies and
 1118  procedures of the commission, shall:
 1119         (3) Not procure transportation disadvantaged services
 1120  without initially negotiating with the commission, as provided
 1121  in s. 287.057(3)(f)8. 287.057(3)(f)12., or unless otherwise
 1122  authorized by statute. If the purchasing agency, after
 1123  consultation with the commission, determines that it cannot
 1124  reach mutually acceptable contract terms with the commission,
 1125  the purchasing agency may contract for the same transportation
 1126  services provided in a more cost-effective manner and of
 1127  comparable or higher quality and standards. The Medicaid agency
 1128  shall implement this subsection in a manner consistent with s.
 1129  409.908(18) and as otherwise limited or directed by the General
 1130  Appropriations Act.
 1131         Section 17. Subsection (2) of section 946.515, Florida
 1132  Statutes, is amended to read:
 1133         946.515 Use of goods and services produced in correctional
 1134  work programs.—
 1135         (2) A No similar product or service of comparable price and
 1136  quality found necessary for use by any state agency may not be
 1137  purchased from any source other than the corporation if the
 1138  corporation certifies that the product is manufactured by, or
 1139  the service is provided by, inmates and the product or service
 1140  meets the comparable performance specifications and comparable
 1141  price and quality requirements as specified under s.
 1142  287.042(1)(c) 287.042(1)(f) or as determined by an individual
 1143  agency as provided in this section. The purchasing authority of
 1144  any such state agency may make reasonable determinations of
 1145  need, price, and quality with reference to products or services
 1146  available from the corporation. In the event of a dispute
 1147  between the corporation and a any purchasing authority based
 1148  upon price or quality under this section or s. 287.042(1)(c)
 1149  287.042(1)(f), either party may request a hearing with the
 1150  Department of Management Services and, if not resolved, either
 1151  party may request a proceeding pursuant to ss. 120.569 and
 1152  120.57, which shall be referred to the Division of
 1153  Administrative Hearings within 60 days after such request, to
 1154  resolve any dispute under this section. A No party is not
 1155  entitled to any appeal pursuant to s. 120.68.
 1156         Section 18. Procurement review and report.—
 1157         (1) The Chief Financial Officer shall review and
 1158  investigate:
 1159         (a) All current state laws that govern the state
 1160  procurement of goods, services, and facilities;
 1161         (b) The procurement policies, rules, procedures, and
 1162  practices followed by the state agencies, boards, commissions,
 1163  offices, and other instrumentalities of the executive branch of
 1164  state government;
 1165         (c) The organization and management processes involved in
 1166  the state procurement of goods, services, and facilities before
 1167  the award of a state procurement contract, during the
 1168  solicitation of bids, the evaluation, and the negotiation of a
 1169  contract, and subsequent to the award of the contract to
 1170  determine the extent to which these organization and management
 1171  processes facilitate the legislative policy set forth in this
 1172  act; and
 1173         (d) Any other areas that the Chief Financial Officer deems
 1174  relevant to the review and investigation.
 1175         (2) In order to accomplish the procurement review directed
 1176  by this section, the Chief Financial Officer may:
 1177         (a) Acquire information directly from the head of any state
 1178  department or agency for the purpose of conducting this review.
 1179  All departments and agencies shall cooperate with the Chief
 1180  Financial Officer and furnish all information requested to the
 1181  extent permitted by law.
 1182         (b) Procure the services of experts and consultants.
 1183         (c) Contract with private organizations and nonprofit
 1184  institutions to carry out studies and prepare reports to
 1185  facilitate the review.
 1186         (3) By December 31, 2012, the Chief Financial Officer shall
 1187  submit to the Governor, the President of the Senate, and the
 1188  Speaker of the House of Representatives a report of findings and
 1189  recommendations for changes in statutes, rules, policies,
 1190  procedures, and organization necessary to carry out the policies
 1191  set forth in this act.
 1192         Section 19. The Legislature recognizes the need to reform
 1193  the purchasing cycle, from the development of a purchasing
 1194  agreement to the payment for goods or services provided to the
 1195  state. Therefore, chapter 287, Florida Statutes, is repealed
 1196  effective July 30, 2014.
 1197         Section 20. (1) For the 2012-2013 fiscal year, the sum of
 1198  $400,000 in nonrecurring funds is appropriated from the
 1199  Administrative Trust Fund in the Department of Financial
 1200  Services to contract for the Chief Financial Officer’s review of
 1201  the state’s procurement process.
 1202         (2) For the 2012-2013 fiscal year, the sum of $375,000 in
 1203  recurring funds is appropriated from the Administrative Trust
 1204  Fund in the Department of Financial Services to contract for the
 1205  Chief Financial Officer’s administration of the certified
 1206  contract manager and negotiator programs.
 1207         (3) For the 2012-2013 fiscal year, the sum of $4,067,000 in
 1208  recurring funds from the General Revenue Fund and 36 full-time
 1209  equivalent positions and associated salary rate of 1,902,588 are
 1210  appropriated to the Chief Financial Officer for the purpose of
 1211  implementing the Chief Financial Officer’s expanded contract
 1212  auditing responsibilities under this act. Funds remaining
 1213  unexpended or unencumbered from this appropriation as of June
 1214  30, 2013, shall revert and be reappropriated for the same
 1215  purpose in the 2013-2014 fiscal year.
 1216         Section 21. Except as otherwise expressly provided in this
 1217  act, this act shall take effect July 1, 2012.