Florida Senate - 2015                                     SB 574
       
       
        
       By Senator Montford
       
       
       
       
       
       3-00643-15                                             2015574__
    1                        A bill to be entitled                      
    2         An act relating to government procurement; amending s.
    3         287.012, F.S.; revising the term “eligible user”;
    4         defining the term “reverse auction”; amending s.
    5         287.057, F.S.; requiring the Department of Management
    6         Services to maintain a program for reverse auctions;
    7         authorizing the department to contract for equipment
    8         and services necessary to implement reverse auctions;
    9         requiring the department to adopt certain rules;
   10         authorizing the department to impose and collect fees
   11         for use of the reverse auction program; requiring the
   12         department to compensate a provider for managing a
   13         reverse auction website under specified conditions;
   14         amending s. 570.07, F.S.; revising the functions,
   15         powers, and duties of the Department of Agriculture
   16         and Consumer Services to conform to changes made by
   17         the act; amending s. 1006.27, F.S.; authorizing the
   18         Department of Education to use reverse auctions and
   19         other online procurement programs in assisting
   20         district school boards with transportation services
   21         contracts; requiring the State Board of Education to
   22         adopt certain rules; amending s. 1010.04, F.S.;
   23         authorizing the Board of Governors to adopt
   24         regulations establishing procedures governing a state
   25         university’s participation in reverse auctions and
   26         other online procurement programs; reenacting ss.
   27         120.57(3)(g) and 283.33(3), F.S., relating to
   28         procedures for a protest of a contract solicitation or
   29         award and contracts for printing of publications,
   30         respectively, to incorporate the amendments made to s.
   31         287.012, F.S., in references thereto; reenacting s.
   32         627.351(6)(e), F.S., relating to Citizens Property
   33         Insurance Corporation, to incorporate the amendments
   34         made to s. 287.057, F.S., in a reference thereto;
   35         providing an effective date.
   36          
   37  Be It Enacted by the Legislature of the State of Florida:
   38  
   39         Section 1. Subsection (11) of section 287.012, Florida
   40  Statutes, is amended, present subsections (28) and (29) are
   41  redesignated as subsections (29) and (30), respectively, and a
   42  new subsection (28) is added to that section, to read:
   43         287.012 Definitions.—As used in this part, the term:
   44         (11) “Eligible user” means any person or entity authorized
   45  by the department pursuant to rule to purchase from state term
   46  contracts, or to use the online procurement system, or
   47  participate in reverse auctions.
   48         (28) “Reverse auction” means a procurement of commodities
   49  or contractual services conducted on a centralized website that
   50  uses third-party software and is jointly managed by an approved
   51  vendor and an agency or other governmental entity using the
   52  procurement processes in s. 287.057 or other applicable law.
   53  Eligible users are allowed to submit bids electronically in real
   54  time through the website in response to a competitive
   55  solicitation.
   56         Section 2. Subsection (22) of section 287.057, Florida
   57  Statutes, is amended to read:
   58         287.057 Procurement of commodities or contractual
   59  services.—
   60         (22) The department, in consultation with the Chief
   61  Financial Officer and the Agency for State Technology, shall
   62  maintain a program for online procurement of commodities and
   63  contractual services and reverse auctions. To enable the state
   64  to promote open competition and leverage its buying power,
   65  agencies shall participate in the online procurement program and
   66  reverse auctions, and eligible users may participate in either
   67  the program. Only vendors prequalified as meeting mandatory
   68  requirements and qualifications criteria may participate in
   69  online procurement and reverse auctions.
   70         (a) The department, in consultation with the Agency for
   71  State Technology and in compliance with the standards of the
   72  agency, may contract for equipment and services necessary to
   73  develop and implement online procurement and reverse auctions.
   74         (b) The department shall adopt rules to administer the
   75  program for online procurement and reverse auctions. The rules
   76  must include, but not be limited to:
   77         1. Determining the requirements and qualification criteria
   78  for prequalifying vendors.
   79         2. Establishing the procedures for conducting online
   80  procurement and reverse auction events.
   81         3. Establishing the criteria for eligible commodities and
   82  contractual services.
   83         4. Establishing the procedures for providing access to
   84  online procurement and reverse auction events.
   85         5. Determining the criteria warranting any exceptions to
   86  participation in the online procurement program and reverse
   87  auctions.
   88         (c) The department may impose and shall collect all fees
   89  for the use of the online procurement systems and reverse
   90  auctions.
   91         1. The fees may be imposed on an individual transaction
   92  basis or as a fixed percentage of the cost savings generated. At
   93  a minimum, the fees must be set in an amount sufficient to cover
   94  the projected costs of the services, including administrative
   95  and project service costs in accordance with the policies of the
   96  department.
   97         2. If the department contracts with a provider for online
   98  procurement or for management of a website that administers
   99  reverse auctions, the department, pursuant to appropriation,
  100  shall compensate the provider from the fees after the department
  101  has satisfied all ongoing costs. The provider shall report
  102  transaction data to the department each month so that the
  103  department may determine the amount due and payable to the
  104  department from each vendor.
  105         3. All fees that are due and payable to the state on a
  106  transactional basis or as a fixed percentage of the cost savings
  107  generated are subject to s. 215.31 and must be remitted within
  108  40 days after receipt of payment for which the fees are due. For
  109  fees that are not remitted within 40 days, the vendor shall pay
  110  interest at the rate established under s. 55.03(1) on the unpaid
  111  balance from the expiration of the 40-day period until the fees
  112  are remitted.
  113         4. All fees and surcharges collected under this paragraph
  114  shall be deposited in the Operating Trust Fund as provided by
  115  law.
  116         Section 3. Subsection (42) of section 570.07, Florida
  117  Statutes, is amended to read:
  118         570.07 Department of Agriculture and Consumer Services;
  119  functions, powers, and duties.—The department shall have and
  120  exercise the following functions, powers, and duties:
  121         (42) Notwithstanding the provisions of s. 287.057(22) that
  122  require all agencies to use the online procurement program or
  123  reverse auctions system developed by the Department of
  124  Management Services, the department may continue to use its own
  125  online system. However, vendors using utilizing such system are
  126  shall be prequalified as meeting mandatory requirements and
  127  qualifications and shall remit fees pursuant to s. 287.057(22),
  128  and any rules implementing s. 287.057.
  129         Section 4. Subsection (1) of section 1006.27, Florida
  130  Statutes, is amended to read:
  131         1006.27 Pooling of school buses and related purchases by
  132  district school boards; transportation services contracts.—
  133         (1) The department shall assist district school boards in
  134  securing school buses, contractual needs, equipment, and
  135  supplies at as reasonable prices as possible by providing a plan
  136  under which district school boards may voluntarily pool their
  137  bids for such purchases. The department shall prepare bid forms
  138  and specifications, obtain quotations of prices and make such
  139  information available to district school boards in order to
  140  facilitate this service. The service may also include the use of
  141  reverse auctions as defined in s. 287.012 or other online
  142  procurement programs. District school boards from time to time,
  143  as prescribed by State Board of Education rule, shall furnish
  144  the department with information concerning the prices paid for
  145  such items and the department shall furnish to district school
  146  boards periodic information concerning the lowest prices at
  147  which school buses, equipment, and related supplies are
  148  available based upon comparable specifications. The State Board
  149  of Education shall adopt rules establishing procedures for the
  150  use of reverse auctions or other online procurement programs by
  151  district school boards.
  152         Section 5. Paragraph (b) of subsection (4) of section
  153  1010.04, Florida Statutes, is amended to read:
  154         1010.04 Purchasing.—
  155         (4)
  156         (b) The Board of Governors may, by regulation, provide for
  157  alternative procedures, including reverse auctions as defined in
  158  s. 287.012 or other online procurement programs, for state
  159  universities for bidding or purchasing in cases in which the
  160  character of the item requested renders competitive bidding
  161  impractical.
  162         Section 6. Paragraph (g) of subsection (3) of s. 120.57 and
  163  subsection (3) of s. 283.33, Florida Statutes, are reenacted for
  164  the purpose of incorporating the amendments made by this act to
  165  s. 287.012, Florida Statutes, in references thereto.
  166         Section 7. Paragraph (e) of subsection (6) of s. 627.351,
  167  Florida Statutes, is reenacted for the purpose of incorporating
  168  the amendments made by this act to s. 287.057, Florida Statutes,
  169  in a reference thereto.
  170         Section 8. This act shall take effect July 1, 2015.