Senate Bill 1906

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    Florida Senate - 1999                                  SB 1906

    By Senators Sebesta and Dyer





    20-1482-99                                          See HB 867

  1                      A bill to be entitled

  2         An act relating to public construction;

  3         amending s. 255.20, F.S.; lowering the

  4         threshold amount required for competitive

  5         awards of local bids and contracts for public

  6         construction; revising provisions with respect

  7         to exceptions; providing that certain properly

  8         licensed contractors or vendors shall have

  9         standing to challenge the propriety of a local

10         government's action under certain

11         circumstances; providing for the award of

12         reasonable attorney's fees under certain

13         circumstances; providing an effective date.

14

15  Be It Enacted by the Legislature of the State of Florida:

16

17         Section 1.  Section 255.20, Florida Statutes, is

18  amended to read:

19         255.20  Local bids and contracts for public

20  construction works; specification of state-produced lumber.--

21         (1)  A county, municipality, special district as

22  defined in chapter 189, or other political subdivision of the

23  state seeking to construct or improve a public building,

24  structure, or other public construction works must

25  competitively award to an appropriately licensed contractor

26  each project that is estimated in accordance with generally

27  accepted cost-accounting principles to have construction costs

28  of more than $50,000 $200,000. As used in this section, the

29  term "competitively award" means to award contracts based on

30  the submission of sealed bids, proposals submitted in response

31  to a request for proposal, proposals submitted in response to

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1  a request for qualifications, or proposals submitted for

  2  competitive negotiation. This subsection expressly allows

  3  contracts for construction management services, design/build

  4  contracts, continuation contracts based on unit prices, and

  5  any other contract arrangement with a private sector

  6  contractor permitted by any applicable municipal or county

  7  ordinance, by district resolution, or by state law. For

  8  purposes of this section, construction costs include the cost

  9  of all labor, except inmate labor, and includes the cost of

10  all overhead, and include the cost of equipment and materials

11  to be used in the construction of the project. Subject to the

12  provisions of subsection (3), the county, municipality,

13  special district, or other political subdivision shall may

14  establish, by municipal or county ordinance or special

15  district resolution, procedures for conducting the bidding

16  process.

17         (a)  The provisions of this subsection do not apply:

18         1.  When the project is undertaken to replace,

19  reconstruct, or repair an existing facility damaged or

20  destroyed by a sudden unexpected turn of events, such as an

21  act of God, riot, fire, flood, accident, or other urgent

22  circumstances, and such damage or destruction creates:

23         a.  An immediate danger to the public health or safety;

24         b.  Other loss to public or private property which

25  requires emergency government action; or

26         c.  An interruption of an essential governmental

27  service.

28         2.  When, after notice by publication in accordance

29  with the applicable ordinance or resolution, the governmental

30  entity does not receive any responsive bids or responses.

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1         3.  To construction, remodeling, repair, or improvement

  2  to a public electric or gas utility system when such work on

  3  the public utility system is performed by personnel of the

  4  system and the work to be performed requires the use of forces

  5  specially trained to work with electricity or combustible

  6  gases.

  7         4.  To construction, remodeling, repair, or improvement

  8  by a utility commission whose major contracts are to construct

  9  and operate a public electric utility system.

10         5.  When the project is undertaken as repair or

11  maintenance of an existing public facility.

12         4.6.  When the project is undertaken exclusively for

13  the purpose of education or training as part of a public

14  educational program.

15         5.7.  When, through no fault of the owner, the funding

16  source of the project will be diminished or lost because the

17  time required to competitively award the project after the

18  funds become available exceeds the time within which the

19  funding source must be spent.

20         6.8.  When the local government has competitively

21  awarded a project to a private sector contractor and the

22  contractor has abandoned the project before completion or the

23  local government has terminated the contract.

24         7.9.  When the governing board of the local government,

25  after public notice, conducts a public meeting under s.

26  286.011 and finds by a majority vote of at least a majority

27  plus one of the governing board that it is in the public's

28  best interest to perform the project using its own services,

29  employees, and equipment because the construction costs for

30  the local government would be less than for private sector

31  contractors. The public notice must be published at least 14

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1  days prior to the date of the public meeting at which the

  2  governing board takes final action to apply this subparagraph.

  3  The notice must identify the project, the estimated cost of

  4  the project and specify that the purpose for the public

  5  meeting is to consider whether it is in the public's best

  6  interest to perform the project using the local government's

  7  own services, employees, and equipment. In deciding whether it

  8  is in the public's best interest for local government to

  9  perform a project using its own services, employees, and

10  equipment, the governing board shall may consider the

11  construction costs cost of the project, whether the project

12  requires an increase in the number of government employees, an

13  increase in capital expenditures for public facilities,

14  equipment or other capital assets, the impact on local

15  economic development, the impact on small and minority

16  business owners, the impact on state and local tax revenues,

17  whether the private sector contractors provide health

18  insurance and other benefits equivalent to those provided by

19  the local government, and may consider any other factor

20  relevant to what is in the public's best interest.

21         8.10.  When the governing board of the local government

22  determines upon consideration of specific substantive criteria

23  and administrative procedures that it is in the best interest

24  of the local government to award the project to an

25  appropriately licensed private sector contractor according to

26  the substantive criteria and administrative procedures

27  established by and expressly set forth in a charter,

28  ordinance, or resolution of the local government adopted prior

29  to July 1, 1994.  The criteria and procedures must be set out

30  in the charter, ordinance, or resolution and must be applied

31  uniformly by the local government to avoid award of any

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1  project in an arbitrary or capricious manner. This exception

  2  shall apply when all of the following occur:

  3         a.  When the governing board of the local government,

  4  after public notice, conducts a public meeting under s.

  5  286.011 and finds by a two-thirds vote of the governing board

  6  that it is in the public's best interest to award the project

  7  according to the criteria and procedures established by

  8  charter, ordinance, or resolution.  The public notice must be

  9  published at least 14 days prior to the date of the public

10  meeting at which the governing board takes final action to

11  apply this subparagraph.  The notice must identify the

12  project, the estimated cost of the project, and specify that

13  the purpose for the public meeting is to consider whether it

14  is in the public's best interest to award the project using

15  the criteria other than competitive selection and procedures

16  method permitted by the preexisting ordinance.

17         b.  In the event the project is to be awarded by any

18  method other than a competitive selection process, the

19  governing board must find upon substantial credible evidence

20  that:

21         (I)  There is one appropriately licensed contractor who

22  is uniquely qualified to undertake the project because that

23  contractor is currently under contract to perform work that is

24  affiliated with the project and the work is of a specialized

25  nature that obtaining competitive bids is not possible; or

26         (II)  The time to competitively award the project

27  through no fault of the public owner or its agents will

28  jeopardize the funding for the project, or will materially

29  increase the cost of the project or will create an undue

30  hardship on the public health, safety, or welfare.

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1         c.  In the event the project is to be awarded by any

  2  method other than a competitive selection process, the

  3  published notice must clearly specify the procedure method by

  4  which the private sector contractor will be selected and the

  5  criteria to be considered.

  6         d.  In the event the project is to be awarded by a

  7  method other than a competitive selection process, the

  8  architect or engineer of record has provided a written

  9  recommendation that the project be awarded to the private

10  sector contractors without competitive selection; and the

11  consideration by, and the justifications of, the governmental

12  body are documented, in writing, in the project file and the

13  findings and documentation required by s. 255.04(2) and (3)

14  are presented to the governing board prior to the approval

15  required in this paragraph.

16         (b)

17         1.  If the project is to be awarded based on price, the

18  contract must be awarded to the lowest qualified and

19  responsive bidder in accordance with the applicable county or

20  municipal ordinance or district resolution and in accordance

21  with the applicable contract documents. The county,

22  municipality, or special district may reserve the right to

23  reject all bids and to rebid the project or elect not to

24  proceed with the project. This subsection is not intended to

25  restrict the rights of any local government to reject the low

26  bid of a nonqualified or nonresponsive bidder and to award the

27  contract to any other qualified and responsive bidder in

28  accordance with the standards and procedures of any applicable

29  county or municipal ordinance or any resolution of a special

30  district.

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1         2.  If the project uses a request for proposal or a

  2  request for qualifications, the request must be publicly

  3  advertised and the contract must be awarded in accordance with

  4  the applicable local ordinances.

  5         3.  If the project is subject to competitive

  6  negotiations, the contract must be awarded in accordance with

  7  s. 287.055.

  8         (c)  If a construction project greater than $50,000

  9  $200,000 is started after July 1, 1999 1996, and is to be

10  performed by a local government using its own employees in a

11  county or municipality that issues registered contractor

12  licenses and the project would require a licensed contractor

13  under chapter 489 if performed by a private sector contractor,

14  the local government must use a person appropriately

15  registered or certified under chapter 489 to supervise the

16  work.

17         (d)  If a construction project greater than $50,000

18  $200,000 is started after July 1, 1999 1996, and is to be

19  performed by a local government using its own employees in a

20  county that does not issue registered contractor licenses and

21  the project would require a licensed contractor under chapter

22  489 if performed by a private sector contractor, the local

23  government must use a person appropriately registered or

24  certified under chapter 489 or a person appropriately licensed

25  under chapter 471 to supervise the work.

26         (e)  Projects performed by a local government using its

27  own services and employees must be inspected in the same

28  manner as inspections required for work performed by private

29  sector contractors.

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1         (f)  A construction project provided for in this

  2  subsection may not be divided into more than one project for

  3  the purpose of evading this subsection.

  4         (g)  This subsection does not preempt the requirements

  5  of any small-business or disadvantaged-business enterprise

  6  program or any local-preference ordinance.

  7         (2)  The threshold amount of $50,000 $200,000 must be

  8  adjusted by the percentage change in the Consumer Price Index

  9  from January 1, 1999 1994, to January 1 of the year in which

10  the project is scheduled to begin.

11         (3)  All county officials, boards of county

12  commissioners, school boards, city councils, city

13  commissioners, and all other public officers of state boards

14  or commissions that are charged with the letting of contracts

15  for public work, for the construction of public bridges,

16  buildings, and other structures must always specify lumber,

17  timber, and other forest products produced and manufactured in

18  this state whenever such products are available and their

19  price, fitness, and quality are equal. This subsection does

20  not apply when plywood specified for monolithic concrete

21  forms, when the structural or service requirements for timber

22  for a particular job cannot be supplied by native species, or

23  when the construction is financed in whole or in part from

24  federal funds with the requirements that there be no

25  restrictions as to species or place of manufacture.

26         (4)  Any properly licensed contractor or vendor

27  interested in submitting an offer to perform work encompassed

28  by this section shall have standing to challenge the propriety

29  of the local government's actions when the local government

30  seeks to invoke the provisions of this section.  Any person

31  challenging, whether in an administrative proceeding or

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    Florida Senate - 1999                                  SB 1906
    20-1482-99                                          See HB 867




  1  litigation, the propriety of a local government's actions

  2  under this section is entitled to recover its reasonable

  3  attorney's fees unless a court finds that the challenge was

  4  frivolous.

  5         Section 2.  This act shall take effect July 1, 1999.

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  7            *****************************************

  8                       LEGISLATIVE SUMMARY

  9
      Revises a provision of law governing local bids and
10    contracts for public construction projects to lower to
      $100,000 the threshold amount required for competitive
11    awards of local bids and contracts, to revise exceptions
      to the operation of the law, to provide that described
12    properly licensed contractors or vendors shall have
      standing to challenge the action of a local government
13    under the law, and to provide for the award of reasonable
      attorney's fees in described circumstances.  (See bill
14    for details.)

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