Florida Senate - 2012 CS for SB 2036
By the Committees on Rules; and Rules
595-02201-12 20122036c1
1 A bill to be entitled
2 An act relating to the outsourcing or privatization of
3 agency functions; amending s. 216.023, F.S.; providing
4 that certain information relating to the outsourcing
5 or privatization of an agency function which is
6 expressly required by law is not required to be
7 included in the agency’s legislative budget request
8 until after the contract for such function is
9 executed; amending s. 287.0571, F.S.; requiring an
10 agency to publicly publish the business case prepared
11 for an outsourcing project on the agency’s website;
12 amending s. 944.105, F.S.; providing that certain
13 requirements that apply to Department of Corrections’
14 contracts do not apply to contracts for outsourcing or
15 privatizing the operation and maintenance of
16 correctional facilities which are expressly required
17 by law; providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Paragraph (a) of subsection (4) of section
22 216.023, Florida Statutes, is amended to read:
23 216.023 Legislative budget requests to be furnished to
24 Legislature by agencies.—
25 (4)(a) The legislative budget request must contain for each
26 program must contain:
27 1. The constitutional or statutory authority for a program,
28 a brief purpose statement, and approved program components.
29 2. Information on expenditures for 3 fiscal years (actual
30 prior-year expenditures, current-year estimated expenditures,
31 and agency budget requested expenditures for the next fiscal
32 year) by appropriation category.
33 3. Details on trust funds and fees.
34 4. The total number of positions (authorized, fixed, and
35 requested).
36 5. An issue narrative describing and justifying changes in
37 amounts and positions requested for current and proposed
38 programs for the next fiscal year.
39 6. Information resource requests.
40 7. Supporting information, including applicable cost
41 benefit analyses, business case analyses, performance
42 contracting procedures, service comparisons, and impacts on
43 performance standards for any agency request to outsource or
44 privatize agency functions. The cost-benefit and business case
45 analyses must include an assessment of the impact on each
46 affected activity from those identified in accordance with
47 paragraph (b). Performance standards must include standards for
48 each affected activity and be expressed in terms of the
49 associated unit of activity. This subparagraph does not apply to
50 the outsourcing or privatization of agency functions expressly
51 required by the General Appropriation Act or any other law until
52 the first legislative budget request submitted by the agency
53 after the contract for the outsourcing and privatization has
54 been executed.
55 8. An evaluation of any major outsourcing and privatization
56 initiatives undertaken during the last 5 fiscal years having
57 aggregate expenditures exceeding $10 million during the term of
58 the contract. The evaluation must shall include an assessment of
59 contractor performance, a comparison of anticipated service
60 levels to actual service levels, and a comparison of estimated
61 savings to actual savings achieved. Consolidated reports issued
62 by the Department of Management Services may be used to satisfy
63 this requirement. This subparagraph does not apply to the
64 outsourcing or privatization of agency functions expressly
65 required by the General Appropriation Act or any other law until
66 the first legislative budget request submitted by the agency
67 after the contract for the outsourcing and privatization has
68 been executed.
69 9. Supporting information for any proposed consolidated
70 financing of deferred-payment commodity contracts including
71 guaranteed energy performance savings contracts. Supporting
72 information must also include narrative describing and
73 justifying the need, baseline for current costs, estimated cost
74 savings, projected equipment purchases, estimated contract
75 costs, and return on investment calculation.
76 10. For projects that are requested by an agency and that
77 exceed $10 million in total cost, the statutory reference of the
78 existing policy or the proposed substantive policy that
79 establishes and defines the project’s governance structure,
80 planned scope, main business objectives that must be achieved,
81 and estimated completion timeframes. Information technology
82 budget requests for the continuance of existing hardware and
83 software maintenance agreements, renewal of existing software
84 licensing agreements, or the replacement of desktop units with
85 new technology that is similar to the technology currently in
86 use are exempt from this requirement. This subparagraph does not
87 apply to the outsourcing or privatization of agency functions
88 expressly required by the General Appropriation Act or any other
89 law until the first legislative budget request submitted by the
90 agency after the contract for the outsourcing and privatization
91 has been executed.
92 Section 2. Subsection (4) of section 287.0571, Florida
93 Statutes, is amended to read:
94 287.0571 Business case to outsource; applicability.—
95 (4) An agency must shall complete a business case for any
96 outsourcing project that has an expected cost in excess of $10
97 million within a single fiscal year. The business case shall be
98 submitted pursuant to s. 216.023. The business case shall be
99 prepared and made publicly available on the agency’s website
100 before the issuance as part of the solicitation but is not
101 subject to challenge and must shall include the following:
102 (a) A detailed description of the service or activity for
103 which the outsourcing is proposed.
104 (b) A description and analysis of the state agency’s
105 current performance, based on existing performance metrics if
106 the state agency is currently performing the service or
107 activity.
108 (c) The goals desired to be achieved through the proposed
109 outsourcing and the rationale for such goals.
110 (d) A citation to the existing or proposed legal authority
111 for outsourcing the service or activity.
112 (e) A description of available options for achieving the
113 goals. If state employees are currently performing the service
114 or activity, at least one option involving maintaining state
115 provision of the service or activity must shall be included.
116 (f) An analysis of the advantages and disadvantages of each
117 option, including, at a minimum, potential performance
118 improvements and risks.
119 (g) A description of the current market for the contractual
120 services that are under consideration for outsourcing.
121 (h) A cost-benefit analysis documenting the direct and
122 indirect specific baseline costs, savings, and qualitative and
123 quantitative benefits involved in or resulting from the
124 implementation of the recommended option or options. Such
125 analysis must specify the schedule that, at a minimum, must be
126 adhered to in order to achieve the estimated savings. All
127 elements of cost must be clearly identified in the cost-benefit
128 analysis, described in the business case, and supported by
129 applicable records and reports. The state agency head shall
130 attest that, based on the data and information underlying the
131 business case, to the best of his or her knowledge, all
132 projected costs, savings, and benefits are valid and achievable.
133 As used in this section, the term “cost” means the reasonable,
134 relevant, and verifiable cost, which may include, but is not
135 limited to, elements such as personnel, materials and supplies,
136 services, equipment, capital depreciation, rent, maintenance and
137 repairs, utilities, insurance, personnel travel, overhead, and
138 interim and final payments. The appropriate elements shall
139 depend on the nature of the specific initiative. As used in this
140 paragraph, the term “savings” means the difference between the
141 direct and indirect actual annual baseline costs compared to the
142 projected annual cost for the contracted functions or
143 responsibilities in any succeeding state fiscal year during the
144 term of the contract.
145 (i) A description of differences among current state agency
146 policies and processes and, as appropriate, a discussion of
147 options for or a plan to standardize, consolidate, or revise
148 current policies and processes, if any, to reduce the
149 customization of any proposed solution that would otherwise be
150 required.
151 (j) A description of the specific performance standards
152 that must, at a minimum, must be met to ensure adequate
153 performance.
154 (k) The projected timeframe for key events from the
155 beginning of the procurement process through the expiration of a
156 contract.
157 (l) A plan to ensure compliance with the public records
158 law.
159 (m) A specific and feasible contingency plan addressing
160 contractor nonperformance and a description of the tasks
161 involved in and costs required for its implementation.
162 (n) A state agency’s transition plan for addressing changes
163 in the number of agency personnel, affected business processes,
164 employee transition issues, and communication with affected
165 stakeholders, such as agency clients and the public. The
166 transition plan must contain a reemployment and retraining
167 assistance plan for employees who are not retained by the state
168 agency or employed by the contractor.
169 (o) A plan for ensuring access by persons with disabilities
170 in compliance with applicable state and federal law.
171 Section 3. Subsection (9) is added to section 944.105,
172 Florida Statutes, to read:
173 944.105 Contractual arrangements with private entities for
174 operation and maintenance of correctional facilities and
175 supervision of inmates.—
176 (9) This section does not apply to a contract for the
177 outsourcing or privatization of the operation and maintenance of
178 correctional facilities expressly directed to be outsourced or
179 privatized by the General Appropriation Act or any other law.
180 Section 4. This act shall take effect July 1, 2012.