HB 1819

1	A bill to be entitled
2	An act relating to procurement; amending s. 20.22, F.S.;
3	providing for a Center for Efficient Government within
4	the Department of Management Services; amending s.
5	255.0525, F.S.; providing for electronic website posting
6	of certain solicitations; amending s. 287.012, F.S.;
7	revising definitions; providing additional definitions;
8	renumbering and amending s. 287.017, F.S., as s. 287.028,
9	F.S.; specifying procurement categories and threshold
10	amounts; requiring use of certain methodologies to value
11	contracts or arrangements for certain purposes; providing
12	requirements; creating s. 287.019, F.S.; providing for
13	eligibility to contract or subcontract; creating s.
14	287.0265, F.S.; creating the Center for Efficient
15	Government for certain purposes; establishing a board for
16	the center; providing for membership; providing
17	responsibilities of the center and the board; providing
18	requirements for a review and approval process for
19	procurements; requiring agencies to provide certain
20	information; creating s. 287.0330, F.S.; specifying
21	methods for source selection; authorizing the Department
22	of Management Services to adopt rules; creating s.
23	287.0331, F.S.; providing for invitations to bid;
24	creating s. 287.0332, F.S.; providing for requests for
25	proposals; requiring procurement by competitive sealed
26	proposals for certain procurement contracts under certain
27	circumstances; creating s. 287.0333, F.S.; providing for
28	invitations to negotiate; creating s. 287.03335, F.S.;
29	providing for award of certain contracts to be awarded by
30	reverse auction; providing for invitations to
31	participate; providing procedures, requirements, and
32	limitations; creating s. 287.0334, F.S.; requiring the
33	department to adopt rules establishing small purchase
34	procedures; creating s. 287.0335, F.S.; providing for
35	single source procurement; creating s. 287.0336, F.S.;
36	providing for emergency procurements; creating s.
37	287.0337, F.S.; providing for state term contracts for
38	certain commodities or contractual services; authorizing
39	the department to restrict certain purchases from term
40	contracts under certain circumstances; creating s.
41	287.0341, F.S.; providing general provisions; specifying
42	department responsibilities; requiring agencies to use
43	department definitions and classes of commodities and
44	contractual services in procurement; creating s. 287.036,
45	F.S.; providing for evaluation teams and certified
46	negotiators; requiring a certified negotiator for certain
47	contracts; creating s. 287.037, F.S.; providing for
48	vendors to provide certain financial information for
49	certain contracts; providing procedures and requirements;
50	providing for audit of a contractor's books and records;
51	providing for modifying contracts under certain
52	circumstances; providing definitions; creating s.
53	287.038, F.S.; providing for a review and approval
54	process; creating s. 287.026, F.S.; revising the powers,
55	duties, and functions of the department; deleting a
56	provision authorizing the department to collect certain
57	fees; requiring the department to adopt rules for use by
58	agencies for share-in-savings contracts; creating s.
59	287.027, F.S.; providing for online procurement of
60	commodities and services; renumbering and amending s.
61	287.045, F.S., as s. 287.128, F.S.; revising provisions
62	relating to procurement of products and materials with
63	recycled content; creating ss. 287.0439, 287.044,
64	287.046, 287.047, and 287.048, F.S.; providing
65	definitions; providing for outsourcing or privatizing
66	certain functions or responsibilities of agencies;
67	providing criteria, requirements, procedures,
68	limitations, and exceptions; requiring agencies to
69	develop a business case for certain purposes; providing
70	requirements; providing contract requirements; requiring
71	reports and information to be provided to the Legislature
72	for certain outsourcing or privatization initiatives;
73	providing for contract review and objections; providing
74	for independence of Cabinet agencies for certain
75	purposes; requiring contractors to provide agency access
76	to certain records; specifying that agency actions are
77	not grounds for an administrative protest; creating s.
78	287.122, F.S.; providing for purchases from correctional
79	industry programs and from qualified nonprofit agencies
80	for persons with disabilities; providing requirements and
81	procedures; creating s. 287.123, F.S.; exempting certain
82	contractual service and commodity purchases from
83	competitive solicitation requirements; renumbering and
84	amending s. 287.025, F.S., as s. 287.1241, F.S., to
85	conform; renumbering and amending s. 287.055, F.S., as s.
86	287.125, F.S., to conform; renumbering and amending s.
87	287.058, F.S., as s. 287.31, F.S.; revising contract
88	document requirements; authorizing agencies or
89	contractors to levy or impose fees, taxes, or charges on
90	persons not parties to a contract only pursuant to law;
91	providing share-in-savings contract requirements;
92	creating s. 287.321, F.S.; providing for a contract
93	manager, contract administrator, and contract files;
94	creating s. 287.34, F.S.; prohibiting agencies from
95	approving accounts or requesting payments from accounts
96	except pursuant to rule; creating s. 287.55, F.S.;
97	providing for bid protests; renumbering and amending s.
98	287.132, F.S., as s. 287.561, F.S.; requiring public
99	employees to discharge duties to assure fair competitive
100	access to procurement; renumbering and amending s.
101	287.133, F.S., as s. 287.562, F.S., to conform; creating
102	s. 287.57, F.S.; providing for cooperative purchasing;
103	renumbering and amending s. 287.16, F.S., as s. 287.65,
104	F.S., to conform; renumbering and amending s. 287.161,
105	F.S., as s. 287.655, F.S., to conform; renumbering and
106	amending s. 287.17, F.S., as s. 287.66, F.S., to conform;
107	amending s. 287.057, F.S., to conform; amending s.
108	119.0721, F.S.; providing a definition; correcting a
109	cross reference; repealing s. 14.203, F.S., relating to
110	the State Council on Competitive Government; repealing s.
111	283.30, F.S., relating to definitions; repealing s.
112	283.31, F.S., relating to records of executive agency
113	publications; repealing s. 283.32, F.S., relating to use
114	of recycled paper; repealing s. 283.33, F.S., relating to
115	printing of publications and lowest bidder awards;
116	repealing s. 283.34, F.S., relating to state officer
117	prohibition against interests in certain printing
118	contracts; repealing s. 283.43, F.S., relating to public
119	information printing services; repealing s. 283.56, F.S.,
120	relating to preparation of agency publications; repealing
121	s. 287.0731, F.S., relating to a team for certain
122	contract negotiations; repealing s. 287.1345, F.S.,
123	relating to a surcharge on users of certain state term
124	contracts; providing an effective date.
125
126	Be It Enacted by the Legislature of the State of Florida:
127
128	Section 1.  Paragraph (d) of subsection (2) of section
129	20.22, Florida Statutes, is amended to read:
130	20.22  Department of Management Services.--There is created
131	a Department of Management Services.
132	(2)  The following divisions and programs within the
133	Department of Management Services are established:
134	(d)1.  Support Program.
135	2.  Federal Property Assistance Program.
136	3.  The Center for Efficient Government.
137	Section 2.  Subsections (1) and (2) of section 255.0525,
138	Florida Statutes, are amended to read:
139	255.0525  Advertising for competitive bids or proposals.--
140	(1)  The solicitation of competitive bids or proposals for
141	any state construction project that is projected to cost more
142	than $200,000 shall be publicly advertised once in the Florida
143	Administrative Weekly at least 21 days prior to the established
144	bid opening. For state construction projects that are projected
145	to cost more than $500,000, the advertisement shall be published
146	in the Florida Administrative Weekly at least 30 days prior to
147	the established bid opening and at least once in a newspaper of
148	general circulation in the county where the project is located
149	at least 30 days prior to the established bid opening and at
150	least 5 days prior to any scheduled prebid conference. In
151	addition to advertisement in the Florida Administrative Weekly
152	and, as appropriate, a newspaper of general circulation, as
153	provided in this subsection, such solicitations may be
154	electronically posted as defined in s. 287.012(14), on a
155	centralized Internet website designated by the Department of
156	Management Services for this purpose at least 21 or 30 days, as
157	appropriate, prior to the established bid opening. The bids or
158	proposals shall be received and opened publicly at the location,
159	date, and time established in the bid or proposal advertisement.
160	In cases of emergency, the Secretary of Management Services may
161	alter the procedures required in this section in any manner that
162	is reasonable under the emergency circumstances.
163	(2)  The solicitation of competitive bids or proposals for
164	any county, municipality, or other political subdivision
165	construction project that is projected to cost more than
166	$200,000 shall be publicly advertised at least once in a
167	newspaper of general circulation in the county where the project
168	is located at least 21 days prior to the established bid opening
169	and at least 5 days prior to any scheduled prebid conference.
170	The solicitation of competitive bids or proposals for any
171	county, municipality, or other political subdivision
172	construction project that is projected to cost more than
173	$500,000 shall be publicly advertised at least once in a
174	newspaper of general circulation in the county where the project
175	is located at least 30 days prior to the established bid opening
176	and at least 5 days prior to any scheduled prebid conference. In
177	addition to an advertisement in a newspaper of general
178	circulation as provided in this subsection, solicitations may be
179	electronically posted on a centralized Internet website
180	designated by the county, municipality, or other political
181	subdivision. Bids or proposals shall be received and opened at
182	the location, date, and time established in the bid or proposal
183	advertisement. In cases of emergency, the procedures required in
184	this section may be altered by the local governmental entity in
185	any manner that is reasonable under the emergency circumstances.
186	Section 3.  Section 287.012, Florida Statutes, is amended
187	to read:
188	287.012  Definitions.--As used in parts I-VII this part,
189	unless the context clearly indicates otherwise, the term:
190	(1)  "Agency" means any of the various state officers,
191	departments, boards, commissions, divisions, bureaus, and
192	councils and any other unit of organization, however designated,
193	of the executive branch of state government. "Agency" does not
194	include the university and college boards of trustees or the
195	state universities and colleges.
196	(2)  "Agency head" means, with respect to an agency headed
197	by a collegial body, the executive director or chief
198	administrative officer of the agency.
199	(3)  "Artist" means an individual or group of individuals
200	who profess and practice a demonstrated creative talent and
201	skill in the area of music, dance, drama, folk art, creative
202	writing, painting, sculpture, photography, graphic arts, craft
203	arts, industrial design, costume design, fashion design, motion
204	pictures, television, radio, or tape and sound recording or in
205	any other related field.
206	(4)  "Best value" means the highest overall value to the
207	state based on objective factors that include, but are not
208	limited to, consideration, price, quality, design,
209	functionality, and workmanship.
210	(5)  "Board" means the board of the center.
211	(6)  "Center" means the Center for Efficient Government
212	created within the department.
213	(7)(5)  "Commodity" means any of the various supplies,
214	materials, goods, merchandise, food, equipment, information
215	technology, duplicating, printing of publications, forms and
216	related materials, and other personal property, including a
217	mobile home, trailer, or other portable structure with floor
218	space of less than 5,000 square feet, purchased, leased, or
219	otherwise contracted for by the state and its agencies.
220	"Commodity" also includes interest on deferred-payment commodity
221	contracts approved pursuant to s. 287.137 287.063 entered into
222	by an agency for the purchase of other commodities. However,
223	commodities purchased for resale are excluded from this
224	definition. Further, a prescribed drug, medical supply, or
225	device required by a licensed health care provider as a part of
226	providing health services involving examination, diagnosis,
227	treatment, prevention, medical consultation, or administration
228	for clients at the time the service is provided is not
229	considered to be a "commodity." The provisions of s. 946.515(4)
230	shall not apply to purchases of printing. Printing of
231	publications shall be considered a commodity when let upon
232	contract pursuant to s. 283.33, whether purchased for resale or
233	not.
234	(8)(6)  "Competitive sealed bids," "competitive sealed
235	proposals," or "competitive sealed replies" means the process of
236	receiving two or more sealed bids, proposals, or replies
237	submitted by responsive vendors and includes bids, proposals, or
238	replies transmitted by electronic means in lieu of or in
239	addition to written bids, proposals, or replies.
240	(9)(7)  "Competitive solicitation" or "solicitation" means
241	an invitation to bid, a request for proposals, or an invitation
242	to negotiate.
243	(10)  "Consideration" means something of value provided to
244	a contractor in exchange for commodities or contractual
245	services. The term may include, but is not limited to, one or
246	more of following:
247	(a)  State moneys; or
248	(b)  An authorization for a contractor to:
249	1.  Act on behalf of the state;
250	2.  Use the state's assets or resources;
251	3.  Receive revenue or shared savings generated by the
252	contractual arrangement;
253	4.  Use taxes or licenses; or
254	5.  Collect or use fees.
255	(11)(8)  "Contractor" means a person who contracts to sell
256	commodities or contractual services to an agency or the public
257	on behalf of or in cooperation with an agency. The term also
258	refers to a person who enters into an arrangement, such as an
259	alliance, partnership, or consortium with an agency, the purpose
260	of which arrangement is to acquire commodities or contractual
261	services. The term also refers to the entity created by such
262	arrangement.
263	(12)(9)  "Contractual service" means the rendering by a
264	contractor of its time and effort rather than the furnishing of
265	specific commodities. The term includes the acquisition by an
266	agency of anything other than a commodity and applies only to
267	those services rendered by individuals and firms who are
268	independent contractors, and such services may include, but is
269	are not limited to, evaluations; consultations; maintenance;
270	accounting; security; management systems; management consulting;
271	educational training programs; research and development studies
272	or reports on the findings of consultants engaged thereunder;
273	concessions or contracts which generate revenue for the state;
274	and professional, technical, and social services. "Contractual
275	service" does not include any contract for the furnishing of
276	labor or materials for the construction, renovation, repair,
277	modification, or demolition of any facility, building, portion
278	of building, utility, park, parking lot, or structure or other
279	improvement to real property entered into pursuant to chapter
280	255 and rules adopted thereunder.
281	(13)(10)  "Department" means the Department of Management
282	Services.
283	(14)(11)  "Electronic posting" or "electronically post"
284	means the posting of solicitations, agency decisions or intended
285	decisions, or other matters relating to procurement on a
286	centralized Internet website designated by the department for
287	this purpose.
288	(15)(12)  "Eligible user" means any person or entity
289	authorized by the department pursuant to rule to purchase from
290	state term contracts or to use the on-line procurement system.
291	(16)(13)  "Exceptional purchase" means any purchase of
292	commodities or contractual services excepted by law or rule from
293	the requirements for competitive solicitation, including, but
294	not limited to, purchases from a single source; purchases upon
295	receipt of less than two responsive bids, proposals, or replies;
296	purchases made by an agency, after receiving approval from the
297	department, from a contract procured, pursuant to s. 287.0331,
298	s. 287.0332, or s. 287.0333 287.057(1), (2), or (3), by another
299	agency; and purchases made without advertisement in the manner
300	required by s. 287.0341(1)(a) and (b) 287.042(3)(b). The term
301	"exceptional purchase" does not include purchases made pursuant
302	to s. 287.123.
303	(17)(14)  "Extension" means an increase in the time allowed
304	for the contract period due to circumstances which, without
305	fault of either party, make performance impracticable or
306	impossible, or which prevent a new contract from being executed,
307	with or without a proportional increase in the total dollar
308	amount, with any increase to be based on the method and rate
309	previously established in the contract.
310	(18)(15)  "Information technology" has the meaning ascribed
311	in s. 282.0041.
312	(19)(16)  "Invitation to bid" means a written solicitation
313	for competitive sealed bids. The invitation to bid is used when
314	the agency is capable of specifically defining the scope of work
315	for which a contractual service is required or when the agency
316	is capable of establishing precise specifications defining the
317	actual commodity or group of commodities required. A written
318	solicitation includes a solicitation that is electronically
319	posted.
320	(20)(17)  "Invitation to negotiate" means a written
321	solicitation for competitive sealed replies to select one or
322	more vendors with which to commence negotiations for the
323	procurement of commodities or contractual services. The
324	invitation to negotiate is used when the agency determines that
325	negotiations may be necessary for the state to receive the best
326	value. A written solicitation includes a solicitation that is
327	electronically posted.
328	(21)  "Invitation to participate" means a written
329	solicitation for bids during participation in a reverse auction.
330	A written solicitation includes a solicitation that is
331	electronically posted.
332	(22)(18)  "Minority business enterprise" has the meaning
333	ascribed in s. 288.703.
334	(23)(19)  "Office" means the Office of Supplier Diversity
335	of the Department of Management Services.
336	(24)  "Outsource" means to create a contractual
337	relationship between an agency and another entity for the
338	provision in whole or in part of a public function or
339	responsibility whereby the agency is accountable for the
340	provision of the function or responsibility and the entity
341	performs the function or responsibility.
342	(25)  "Privatize" means to shift completely an agency-
343	controlled and agency-operated service to private sector
344	control, operation, and ownership, such that the private sector
345	is solely and fully responsible for the provision of the
346	affected service.
347	(26)  "Procurement of commodities or contractual services"
348	means the providing of state moneys or consideration for the
349	acquisition by an agency of any commodity or contractual
350	service, whether for use by or benefit to the agency or for sale
351	or other conveyance to a person who is not a party to the
352	contract.
353	(27)(20)  "Renewal" means contracting with the same
354	contractor for an additional contract period after the initial
355	contract period, only if pursuant to contract terms specifically
356	providing for such renewal.
357	(28)(21)  "Request for information" means a written request
358	made by an agency to vendors for information concerning
359	commodities or contractual services. Responses to these requests
360	are not offers and may not be accepted by the agency to form a
361	binding contract.
362	(29)(22)  "Request for proposals" means a written
363	solicitation for competitive sealed proposals. The request for
364	proposals is used when it is not practicable for the agency to
365	specifically define the scope of work for which the commodity,
366	group of commodities, or contractual service is required and
367	when the agency is requesting that a responsible vendor propose
368	a commodity, group of commodities, or contractual service to
369	meet the specifications of the solicitation document. A written
370	solicitation includes a solicitation that is electronically
371	posted.
372	(30)(23)  "Request for a quote" means an oral or written
373	request for written pricing or services information from a state
374	term contract vendor for commodities or contractual services
375	available on a state term contract from that vendor.
376	(31)(24)  "Responsible vendor" means a vendor who has the
377	capability in all respects to fully perform the contract
378	requirements and the integrity and reliability that will assure
379	good faith performance.
380	(32)(25)  "Responsive bid," "responsive proposal," or
381	"responsive reply" means a bid, or proposal, or reply submitted
382	by a responsive and responsible vendor that conforms in all
383	material respects to the solicitation.
384	(33)(26)  "Responsive vendor" means a vendor that has
385	submitted a bid, proposal, or reply that conforms in all
386	material respects to the solicitation.
387	(34)  "Reverse auction" means an on-line purchasing process
388	in which vendors compete to provide commodities or contractual
389	services at the lowest price in an open and interactive
390	environment wherein vendors may submit pricing multiple times
391	during a specified time period.
392	(35)  "Secretary" means the Secretary of Management
393	Services.
394	(36)(27)  "State term contract" means a term contract that
395	is competitively procured by the department pursuant to s.
396	287.057 and that is used by agencies and eligible users pursuant
397	to s. 287.056.
398	(37)(28)  "Term contract" means an indefinite quantity
399	contract to furnish commodities or contractual services during a
400	defined period.
401	Section 4.  Section 287.017, Florida Statutes, is
402	renumbered as section 287.028, Florida Statutes, and amended to
403	read:
404	287.028 287.017  Procurement Purchasing categories,
405	threshold amounts; procedures for automatic adjustment by
406	department.--
407	(1)(a)  The following procurement purchasing categories and
408	corresponding threshold amounts are hereby created:
409	1.(a)  CATEGORY ONE: $15,000.
410	2.(b)  CATEGORY TWO: $25,000.
411	3.(c)  CATEGORY THREE: $50,000.
412	4.(d)  CATEGORY FOUR: $150,000.
413	5.(e)  CATEGORY FIVE: $250,000.
414	(b)(2)  The department shall adopt rules to adjust the
415	amounts provided in paragraph (a) subsection (1) based upon the
416	rate of change of a nationally recognized price index. Such
417	rules shall include, but not be limited to, the following:
418	1.(a)  Designation of the nationally recognized price index
419	or component thereof used to calculate the proper adjustment
420	authorized in this section.
421	2.(b)  The procedure for rounding results.
422	3.(c)  The effective date of each adjustment based upon the
423	previous calendar year data.
424	(2)(a)  The following methodologies shall be used to value
425	the contract to determine the appropriate procurement category
426	in this subsection for any procurement of commodities or
427	contractual services:
428	1.  If state moneys are the exclusive consideration to be
429	provided by an agency, the procurement category shall be based
430	upon the total of state moneys to be expended by the agency over
431	the term of the contract; or
432	2.  If state moneys are not the exclusive consideration to
433	be provided by an agency, the procurement category shall be
434	based upon the greater of the following totals:
435	a.  The sum of gross revenues or shared savings to be
436	generated for the state and contractor over the term of the
437	contract added to the sum of state moneys, if any, that the
438	agency may be required to expend over the term of the contract;
439	or
440	b.  The costs avoided by the state over the term of the
441	contract, added to the sum of state moneys, if any, that the
442	agency may be required to expend over the term of the contract.
443	(b)  If none of the methodologies set forth in paragraph
444	(a) are applicable to a procurement of commodities or
445	contractual services, the agency shall develop an alternative
446	methodology to determine the appropriate procurement category.
447	Prior to proceeding with such a procurement, the methodology
448	developed by the agency must be approved in writing by the
449	agency head and the secretary.
450	Section 5.  Subsection (18) of section 287.057, Florida
451	Statutes, is transferred to section 287.019, Florida Statutes,
452	which is created, and amended to read:
453	287.019  Eligibility to contract or subcontract.--
454	(18)  A person who receives a contract that has not been
455	procured pursuant to ss. 287.0331-287.0333 subsections (1)
456	through (5) to perform a feasibility study of the potential
457	implementation of a subsequent contract, who participates in the
458	drafting of a solicitation or who develops a program for future
459	implementation, is not eligible to contract or subcontract,
460	directly or indirectly, with the agency for any other contracts
461	dealing with that specific subject matter, and any firm in which
462	such person has any interest is not eligible to receive such
463	contract or subcontract. However, this prohibition does not
464	prevent a vendor who responds to a request for information from
465	being eligible to contract with an agency.
466	Section 6.  Section 287.0265, Florida Statutes, is created
467	to read:
468	287.0265  Center for Efficient Government.--
469	(1)  The Center for Efficient Government is created in the
470	department to establish and promote best business practices in
471	procurement in order to improve the delivery of services to
472	citizens by agencies under the control of the Governor. Cabinet
473	agencies are encouraged, but shall not be required, to comply
474	with this section. The secretary or his or her designee shall
475	serve as the head of the center.
476	(2)  A board is established within the center to oversee
477	agency procurement. The secretary shall serve as chair of the
478	board. The Governor shall appoint four other agency heads to
479	serve on the board, who shall serve on the board at the pleasure
480	of the Governor. No member of the board shall be disqualified
481	from participating in board review of a procurement solely
482	because the member's agency is involved in the procurement. The
483	members of the board may not delegate their membership to a
484	subordinate.
485	(3)  The center shall:
486	(a)  Create a centralized process for initiating,
487	reviewing, and evaluating agency procurements. The center and
488	any agency may initiate procurements.
489	(b)  Develop standards, processes, templates, and
490	guidelines for use by agencies during the procurement process.
491	(c)  Implement a system for providing information and
492	documentation to the Legislature and Governor on behalf of
493	agencies and in compliance with the provisions of this chapter.
494	(d)  Assist agencies in the procurement process, including
495	but not limited to, developing and updating business cases and
496	solicitation documents and supporting contract negotiations,
497	contract drafting, change management, performance measurement,
498	and contract management.
499	(e)  Create and maintain a database of new and existing
500	state procurements which shall include, but not be limited to,
501	those subject to part III. At a minimum, the database shall
502	contain the following information in regard to contractual
503	services:
504	1.  The agency name, the name and description of the
505	contractual service procured, and the names of the prime
506	contractor and any subcontractors.
507	2.  Projected and actual completion dates by project phase.
508	3.  A description of performance measures contained in the
509	contract, projected performance, and actual performance.
510	4.  Projected costs and revenues, as applicable, and actual
511	costs and revenues.
512	(f)  Submit to the Governor, the President of the Senate,
513	and the Speaker of the House of Representatives, by July 1,
514	2004, by September 15, 2005, and by September 15 annually
515	thereafter, a list of potential outsourcing initiatives
516	identified by agencies and the center.
517	(g)   Develop and implement, in consultation with the
518	Agency for Workforce Innovation, a program for assisting
519	employees whose jobs are eliminated because of procurements.
520	(4)  The board shall:
521	(a)  Oversee the center.
522	(b)  Implement a process for review and approval of the
523	business aspects of a proposed new or renewal procurement at
524	specific points in the procurement process, as required by part
525	III.
526	(c)  Implement any other process for review of procurements
527	that do not require review under part III.
528	(d)  Oversee the implementation of procurements after
529	contract execution, including, but not limited to, change
530	management, contract management, and performance measurement.
531	(5)  The process for review of state procurements shall
532	require:
533	(a)  Board review at the conclusion of important stages in
534	the procurement process for those procurements subject to review
535	by law.
536	(b)  The center, at the board's direction, to furnish to
537	the President of the Senate and the Speaker of the House of
538	Representatives all documents required by part III at each of
539	the important stages in the procurement process, together with
540	the board's certification that the requirements of this section,
541	the center, and the board have been met.
542	(6)  Agencies shall submit to the center all information,
543	documents, or other materials required by center or board policy
544	or this chapter. Agencies required by part III, or by board
545	policy, to cooperate with the center shall do so.
546	Section 7.  Subsection (1) of section 287.056, Florida
547	Statutes, is transferred to section 287.0330, Florida Statutes,
548	which is created, and amended to read:
549	287.0330  Method of source selection.--
550	(1)  Unless otherwise authorized by law, all agency
551	procurements of commodities or contractual services shall be
552	made using one of the following methods:
553	(a)  Invitation to bid;
554	(b)  Request for proposals;
555	(c)  Invitation to negotiate;
556	(d)  Invitation to participate;
557	(e)  Small procurement procedures;
558	(f)  Single source procurement;
559	(g)  Emergency procurement; or
560	(h)  State term contracts and purchasing agreements.
561	(2)(1)  Agencies shall, and eligible users may, procure
562	purchase commodities and contractual services from purchasing
563	agreements established and state term contracts procured,
564	pursuant to s. 287.057, by the department. The department may
565	adopt rules, pursuant to ss. 120.536(1) and 120.54, which exempt
566	agencies from this subsection when commodities and contractual
567	services available from such purchasing agreements and state
568	term contracts cannot meet agency needs.
569	(3)  Unless otherwise authorized by law, all contracts for
570	the procurement of commodities or contractual services valued in
571	excess of the threshold amount provided in s. 287.028 for
572	CATEGORY TWO shall be awarded by competitive solicitation.
573	Section 8.  Subsection (1) of section 287.057, Florida
574	Statutes, is transferred to section 287.0331, Florida Statutes,
575	which is created, and amended to read:
576	287.0331  Invitation to bid.--
577	(1)(a)  Unless otherwise authorized by law, all contracts
578	required to be awarded by competitive solicitation for the
579	purchase of commodities or contractual services in excess of the
580	threshold amount provided in s. 287.017 for CATEGORY TWO shall
581	be awarded by competitive sealed bidding. An invitation to bid
582	shall be made available simultaneously to all vendors and must
583	include a detailed description of the commodities or contractual
584	services sought; the time and date for the receipt of bids and
585	of the public opening; and all contractual terms and conditions
586	applicable to the procurement, including the criteria to be used
587	in determining acceptability of the bid. If the agency
588	contemplates renewal of the contract, that fact must be stated
589	in the invitation to bid. The bid shall include the
590	consideration or price for each year for which the contract may
591	be renewed. Evaluation of bids shall take into account include
592	consideration of the total cost for each year as submitted by
593	the vendor. Criteria that were not set forth in the invitation
594	to bid may not be used in determining acceptability of the bid.
595	(2)(b)  The contract shall be awarded with reasonable
596	promptness by written notice to the responsible and responsive
597	vendor that submits the lowest responsive bid. This bid must be
598	determined in writing to meet the requirements and criteria set
599	forth in the invitation to bid.
600	Section 9.  Subsection (2) of section 287.057, Florida
601	Statutes, is transferred to section 287.0332, Florida Statutes,
602	which is created, and amended to read:
603	287.0332  Request for proposals.--
604	(1)(2)(a)  If an agency determines in writing that the use
605	of an invitation to bid is not practicable, commodities or
606	contractual services required to be awarded by competitive
607	solicitation shall be procured by competitive sealed proposals.
608	A request for proposals shall be made available simultaneously
609	to all vendors, and must include a statement of the commodities
610	or contractual services sought; the time and date for the
611	receipt of proposals and of the public opening; and all
612	contractual terms and conditions applicable to the procurement,
613	including the criteria, which shall include, but is need not be
614	limited to, consideration or price, to be used in determining
615	acceptability of the proposal. The relative importance of
616	consideration or price and other evaluation criteria shall be
617	indicated. If the agency contemplates renewal of the commodities
618	or contractual services contract, that fact must be stated in
619	the request for proposals. The proposal shall include the price
620	for each year for which the contract may be renewed. Evaluation
621	of proposals shall take into account include consideration of
622	the total consideration or price cost for each year as submitted
623	by the vendor.
624	(2)(b)  The contract shall be awarded to the responsible
625	and responsive vendor whose proposal is determined in writing to
626	result in the best value be the most advantageous to the state,
627	taking into account consideration the consideration or price and
628	the other criteria set forth in the request for proposals. The
629	contract file shall contain documentation supporting the basis
630	on which the award is made.
631	Section 10.  Subsection (3) of section 287.057, Florida
632	Statutes, is transferred to section 287.0333, Florida Statutes,
633	which is created, and amended to read:
634	287.0333  Invitation to negotiate.--
635	(1)(3)(a)  If the agency determines in writing that the use
636	of an invitation to bid or a request for proposals is not likely
637	to will not result in the best value to the state, the agency
638	may procure commodities and contractual services by competitive
639	sealed replies. The agency's written determination must specify
640	reasons that explain why negotiation may be necessary in order
641	for the state to achieve the best value and must be approved in
642	writing by the agency head or his or her designee prior to the
643	advertisement of an invitation to negotiate. An invitation to
644	negotiate shall be made available to all vendors simultaneously
645	and must include a statement of the commodities or contractual
646	services sought; the time and date for the receipt of replies
647	and of the public opening; and all terms and conditions
648	applicable to the procurement, including the criteria to be used
649	in determining the acceptability of the reply. If the agency
650	contemplates renewal of the contract, that fact must be stated
651	in the invitation to negotiate. The reply shall include the
652	consideration or price for each year for which the contract may
653	be renewed.
654	(2)(b)  The agency shall evaluate and rank responsive
655	replies against all evaluation criteria set forth in the
656	invitation to negotiate and shall select, based on the ranking,
657	one or more vendors with which to commence negotiations. After
658	negotiations are conducted, the agency shall award the contract
659	to the responsible and responsive vendor that the agency
660	determines will provide the best value to the state. The
661	contract file must contain a short plain statement that explains
662	the basis for vendor selection and that sets forth the vendor's
663	deliverables and price, pursuant to the contract, with an
664	explanation of how these deliverables and price provide the best
665	value to the state.
666	Section 11.  Section 287.03335, Florida Statutes, is
667	created to read:
668	287.03335  Invitation to participate.--
669	(1)(a)  Unless otherwise authorized by law, contracts for the
670	procurement of commodities or contractual services valued in
671	excess of the threshold amount provided in s. 287.028 for
672	CATEGORY TWO may be awarded by reverse auction. An invitation to
673	participate shall be made available simultaneously to all
674	vendors and must include:
675	1.  A detailed description of the commodities or contractual
676	services sought.
677	2.  The date of and the specific time period during which
678	price or consideration offers may be submitted.
679	3.  The date and time for the public opening.
680	4.  All contractual terms and conditions applicable to the
681	procurement, including the criteria to be used in determining
682	acceptability of the offer.
683	(b)  If the agency contemplates renewal of the contract, that
684	fact must be stated in the invitation to participate. The offer
685	shall include the consideration or price for each year for which
686	the contract may be renewed. Evaluation of offers shall take
687	into account the total cost for each year as submitted by the
688	vendor. Criteria that were not set forth in the invitation to
689	participate may not be used in determining acceptability of the
690	offer.
691	(2)  The contract shall be awarded with reasonable promptness
692	by written notice to the responsible and responsive vendor that
693	submits the responsive offer that provides for the lowest price
694	or amount of consideration to be provided by the state. This
695	offer must be determined in writing to meet the requirements and
696	criteria set forth in the invitation to participate.
697	Section 12.  Subsection (10) of section 287.057, Florida
698	Statutes, is transferred to section 287.0334, Florida Statutes,
699	which is created, and amended to read:
700	287.0334  Small procurement procedures.--In order to obtain
701	the best value to the state, the department shall adopt rules,
702	pursuant to ss. 120.536(1) and 120.54, which prescribe the
703	methods for the procurement of commodities or contractual
704	services which do not exceed the threshold amount provided in s.
705	287.028 for CATEGORY TWO.
706	(10)  An agency shall not divide the procurement of
707	commodities or contractual services so as to avoid the
708	requirements of ss. 287.0331-287.0333 subsections (1) through
709	(5).
710	Section 13.  Paragraph (c) of subsection (5) of section
711	287.057, Florida Statutes, is transferred to section 287.0335,
712	Florida Statutes, which is created, and amended to read:
713	287.0335  Single source procurement.--
714	(c)  Commodities or contractual services available only
715	from a single source may be excepted from the competitive-
716	solicitation requirements. When an agency believes that
717	commodities or contractual services are available only from a
718	single source, the agency shall electronically post a
719	description, in a form prescribed by the department, of the
720	commodities or contractual services sought for a period of at
721	least 7 business days. The description must include a request
722	that prospective vendors provide information regarding their
723	ability to supply the commodities or contractual services
724	described. If it is determined in writing by the agency, after
725	reviewing any information received from prospective vendors,
726	that the commodities or contractual services are available only
727	from a single source, the agency shall:
728	(1)1.  Provide notice, in a form prescribed by the
729	department, of its intended decision to enter a single-source
730	procurement purchase contract in the manner specified in s.
731	120.57(3), if the value amount of the contract does not exceed
732	the threshold amount provided in s. 287.028 287.017 for CATEGORY
733	FOUR.
734	(2)2.  Request approval from the department for the single-
735	source purchase, if the value amount of the contract exceeds the
736	threshold amount provided in s. 287.028 287.017 for CATEGORY
737	FOUR. The agency shall initiate its request for approval in a
738	form prescribed by the department, which request may be
739	electronically transmitted. The failure of the department to
740	approve or disapprove the agency's request for approval within
741	21 days after receiving such request shall constitute prior
742	approval of the department. If the department approves the
743	agency's request, the agency shall provide notice of its
744	intended decision to enter a single-source contract in the
745	manner specified in s. 120.57(3).
746	Section 14.  The introductory paragraph and paragraph (a)
747	of subsection (5) of section 287.057, Florida Statutes, are
748	transferred to section 287.0336, Florida Statutes, which is
749	created, and amended to read:
750	287.0336  Emergency procurements.--
751	(5)  When the purchase price of commodities or contractual
752	services exceeds the threshold amount provided in s. 287.028
753	287.017 for CATEGORY TWO, a procurement no purchase of
754	commodities or contractual services may be excepted from
755	competitive solicitation requirements if made without receiving
756	competitive sealed bids, competitive sealed proposals, or
757	competitive sealed replies unless:
758	(a)  the agency head determines in writing that an
759	immediate danger to the public health, safety, or welfare or
760	other substantial loss to the state requires emergency action.
761	After the agency head makes such a written determination, the
762	agency may proceed with the procurement of commodities or
763	contractual services necessitated by the immediate danger,
764	without receiving competitive sealed bids, competitive sealed
765	proposals, or competitive sealed replies. However, such
766	emergency procurement shall be made by obtaining pricing
767	information from at least two prospective vendors, which must be
768	retained in the contract file, unless the agency determines in
769	writing that the time required to obtain pricing information
770	will increase the immediate danger to the public health, safety,
771	or welfare or other substantial loss to the state. The agency
772	shall furnish copies of all written determinations certified
773	under oath and any other documents relating to the emergency
774	action to the department. A copy of the statement shall be
775	furnished to the Chief Financial Officer with the voucher
776	authorizing payment. The individual purchase of personal
777	clothing, shelter, or supplies which are needed on an emergency
778	basis to avoid institutionalization or placement in a more
779	restrictive setting is an emergency for the purposes of this
780	section paragraph, and the filing with the department of such
781	statement is not required in such circumstances. In the case of
782	the emergency purchase of insurance, the period of coverage of
783	such insurance shall not exceed a period of 30 days, and all
784	such emergency purchases shall be reported to the department.
785	Section 15.  Paragraph (b) of subsection (5) of section
786	287.057, Florida Statutes, and subsection (3) of section
787	287.056, Florida Statutes, are transferred to section 287.0337,
788	Florida Statutes, which is created, and amended to read:
789	287.0337  State term contract.--
790	(1)  Commodities or contractual services with a value
791	exceeding the threshold amount provided in s. 287.028 for
792	CATEGORY TWO shall be excepted from competitive solicitation
793	requirements if procured
794	(b)  The purchase is made by an agency from a state term
795	contract procured, pursuant to s. 287.0331, s. 287.0332, or s.
796	287.0333 this section, by the department or by an agency, after
797	receiving approval from the department, from a contract
798	procured, pursuant to s. 287.0331 subsection (1), s. 287.0332
799	subsection (2), or s. 287.0333 subsection (3), by another
800	agency.
801	(2)(3)  Agencies and eligible users may use a request for
802	quote to obtain written pricing or services information from a
803	state term contract vendor for commodities or contractual
804	services available on state term contract from that vendor. The
805	purpose of a request for quote is to determine whether a price,
806	term, or condition more favorable to the agency or eligible user
807	than that provided in the state term contract is available. Use
808	of a request for quote does not constitute a decision or
809	intended decision that is subject to protest under s. 120.57(3).
810	(3)  The department may restrict purchases from term
811	contracts to state agencies only for those term contracts for
812	which the inclusion of other governmental entities will have an
813	adverse effect on competition or to those federal facilities
814	located in this state.
815	(4)  When procuring state term contracts, the department
816	shall obtain expert advice and assistance from personnel of
817	using agencies in the development of specifications.
818	Section 16.  Paragraphs (b), (c), (d), (f), and (g) of
819	subsection (3) and subsection (13) of section 287.042, Florida
820	Statutes, and subsections (4), (6), (7), and (20) of section
821	287.057, Florida Statutes, are transferred to section 287.0341,
822	Florida Statutes, which is created, and amended to read:
823	287.0341  General provisions.--
824	(1)  The department shall develop:
825	(a)(b)1.  Development of Procedures for advertising
826	solicitations. These procedures must provide for electronic
827	posting of solicitations for at least 10 days before the date
828	set for receipt of bids, proposals, or replies, unless the
829	department or other agency determines in writing that a shorter
830	period of time is necessary to avoid harming the interests of
831	the state. The Office of Supplier Diversity may consult with the
832	department regarding the development of solicitation
833	distribution procedures to ensure that maximum distribution is
834	afforded to certified minority business enterprises as defined
835	in s. 288.703.
836	(b)2.  Development of Procedures for electronic posting.
837	The department shall designate a centralized website on the
838	Internet for the department and other agencies to electronically
839	post solicitations, decisions or intended decisions, and other
840	matters relating to procurement. From July 1, 2002, until July
841	1, 2003, the department shall publish a notice in each edition
842	of the Florida Administrative Weekly which indicates the
843	specific URL or Internet address for the centralized website.
844	(c)  Development of Procedures for the receipt and opening
845	of bids, proposals, or replies by an agency. Such procedures
846	shall provide the Office of Supplier Diversity an opportunity to
847	monitor and ensure that the contract award is consistent with
848	the requirements of s. 287.4471 287.09451.
849	(d)  Development of Procedures to be used by an agency in
850	deciding to contract, including, but not limited to, identifying
851	and assessing in writing project needs and requirements,
852	availability of agency employees, budgetary constraints or
853	availability, facility equipment availability, current and
854	projected agency workload capabilities, and the ability of any
855	other state agency to perform the services.
856	(e)(f)  Development of Procedures to be used by an agency
857	for issuing solicitations that include requirements to describe
858	commodities, services, scope of work, and deliverables in a
859	manner that promotes competition.
860	(f)(g)  Development of Procedures to be used by an agency
861	when issuing requests for information and requests for quotes.
862	(2)  Agencies shall use the definitions and classes of
863	commodities and contractual services established by the
864	department in acquiring or purchasing commodities or contractual
865	services.
866	(3)(4)  Prior to the time for receipt of bids, proposals,
867	or replies, an agency may conduct a conference or written
868	question and answer period for purposes of assuring the vendor's
869	full understanding of the solicitation requirements. The vendors
870	shall be accorded fair and equal treatment.
871	(4)(6)  If less than two responsive bids, proposals, or
872	replies for commodity or contractual services purchases are
873	received, the department or other agency may negotiate on the
874	best terms and conditions. The department or other agency shall
875	document the reasons that such action is in the best interest of
876	the state in lieu of resoliciting competitive sealed bids,
877	proposals, or replies. Each agency shall report all such actions
878	to the department on a quarterly basis, in a manner and form
879	prescribed by the department.
880	(5)(7)  Upon issuance of any solicitation, an agency shall,
881	upon request by the department, forward to the department one
882	copy of each solicitation for all commodity and contractual
883	services purchases in excess of the threshold amount provided in
884	s. 287.028 287.017 for CATEGORY TWO. An agency shall also, upon
885	request, furnish a copy of all competitive-solicitation
886	tabulations. The Office of Supplier Diversity may also request
887	from the agencies any information submitted to the department
888	pursuant to this subsection.
889	(6)(20)  In any procurement with a value exceeding that
890	costs more than the threshold amount provided for in s. 287.028
891	287.017 for CATEGORY TWO and is accomplished without
892	competition, the individuals taking part in the development or
893	selection of criteria for evaluation, the evaluation process,
894	and the award process shall attest in writing that they are
895	independent of, and have no conflict of interest in, the
896	entities evaluated and selected.
897	(7)(13)  If the department determines in writing that it is
898	in the best interest of the state, the department may to award
899	to multiple suppliers contracts for commodities and contractual
900	services established by the department for use by all agencies.
901	Such awards may be on a statewide or regional basis. If regional
902	contracts are established by the department, multiple supplier
903	awards may be based upon multiple awards for regions. Agencies
904	may award contracts to a responsible and responsive vendor on a
905	statewide or regional basis.
906	Section 17.  Subsection (17) of section 287.057, Florida
907	Statutes, is transferred to section 287.036, Florida Statutes,
908	which is created, and amended to read:
909	287.036  Evaluation teams; certified negotiators.--
910	(17)  For a contract the value of which is in excess of the
911	threshold amount provided in s. 287.028 287.017 for CATEGORY
912	FOUR, the agency head shall appoint:
913	(1)(a)  At least three persons to evaluate proposals and
914	replies who collectively have experience and knowledge in the
915	program areas and service requirements for which commodities or
916	contractual services are sought.
917	(2)(b)  At least three persons to conduct negotiations
918	during a competitive sealed reply procurement who collectively
919	have experience and knowledge in negotiating contracts, contract
920	procurement, and the program areas and service requirements for
921	which commodities or contractual services are sought. When the
922	value of the procurement is in excess of $1 million, at least
923	one of the persons conducting negotiations must be a certified
924	negotiator as established by the department in rule. If the
925	agency does not have an employee who has the requisite
926	certification, the department shall select a certified
927	negotiator from another agency to participate in the
928	negotiations on behalf of the procuring agency.
929	Section 18.  Section 287.037, Florida Statutes, is created
930	to read:
931	287.037  Cost or pricing data; truth-in-negotiation
932	certificate.--
933	(1)  The head of the procuring agency shall require vendors
934	or contractors to provide data regarding cost, pricing, or
935	consideration available prior to the award of a contract or
936	modification of a contract if the price, cost, or consideration
937	required by the contract exceeds $1 million and the price, cost,
938	or consideration is not:
939	(a)  Based on adequate price competition;
940	(b)  Based on established catalog or market prices; or
941	(c)  Set by law or regulation.
942	(2)  Notwithstanding subsection (1), the head of the
943	procuring agency may require a vendor to submit data about cost,
944	pricing, or consideration if the head of the procuring agency
945	determines that such data are necessary for the evaluation by
946	the agency of the reasonableness of the price, cost, or
947	consideration required by a contract or a modification to a
948	contract. The procuring agency shall document in writing the
949	reason for such requirement.
950	(3)  Data about cost, pricing, or consideration required by
951	this section shall be submitted to the procuring agency within
952	10 calendar days after the request, unless an extension is
953	granted in writing by the head of the procuring agency. The
954	vendor or contractor shall be required to execute a sworn truth-
955	in-negotiation certificate stating that the data about cost,
956	pricing, or consideration submitted is accurate, complete, and
957	current.
958	(4)(a)  The agency may, at reasonable times and places,
959	audit the books and records of any contractor who has submitted
960	data about cost, pricing, or consideration pursuant to this
961	section to the extent that such books and records relate to that
962	data. A request by the agency to audit the contractor's books
963	and records pursuant to this subsection may be made no later
964	than 1 year after the termination of the contract.
965	(b)  Except as provided in the contract or otherwise by
966	law, any contractor who receives a contract or contract
967	modification for which such data is required shall maintain such
968	books and records that relate to such data:
969	1.  If no request to audit is made by the agency within 1
970	year after the date of contract termination, for 1 year after
971	contract termination; or
972	2.  If a request to audit is made by the agency within 1
973	year after the date of contract termination:
974	a.  Until notice is received by the contractor that the
975	agency will not demand a contract adjustment pursuant to
976	subsection (5); or
977	b.  Until resolution of any contract adjustment demanded by
978	an agency according to the provision of subsection (5),
979
980	whichever is later.
981	(5)  A contract or contract modification under which sworn
982	data about cost, pricing, or consideration is required shall
983	contain a provision that the price, cost, or consideration
984	required by the contract to the state, including any profit or
985	fee, shall be adjusted to exclude any significant sums by which
986	the agency determines the contract price was increased due to
987	inaccurate, incomplete, or noncurrent data about cost, pricing,
988	or consideration. The procuring agency may demand such a
989	contract adjustment within 1 year after complete and accurate
990	data is obtained by the agency about actual prices, costs, or
991	consideration following the termination of the contract.
992	(6)  As used in this section, the term "data about cost,
993	pricing, or consideration" means all facts that a prudent buyer
994	or seller would reasonably expect to affect price, cost, or
995	consideration negotiations as of the date of the agreement on
996	the price of a contract, the date of the contract modification,
997	or another date agreed upon between the parties. The term does
998	not include information that is in the form of opinion or
999	conjecture, but does include factual information from which an
1000	opinion or conjecture regarding cost, pricing, or consideration
1001	may be derived.
1002	Section 19.  Subsection (19) of section 287.057, Florida
1003	Statutes, is transferred to section 287.038, Florida Statutes,
1004	which is created, and amended to read:
1005	287.038  Review and approval process.--
1006	(19)  Each agency shall establish a review and approval
1007	process for all contractual services contracts valued in excess
1008	of costing more than the threshold amount provided for in s.
1009	287.028 287.017 for CATEGORY THREE which shall include, but not
1010	be limited to, program, financial, and legal review and
1011	approval. Such reviews and approvals shall be obtained before
1012	the contract is executed.
1013	Section 20.  The section number, catchline, introductory
1014	paragraph, paragraphs (a), (b), and (h) of subsection (1),
1015	paragraph (a) of subsection (2), subsection (3), paragraph (a)
1016	of subsection (4), subsections (5), (6), (7), (8), (9), (10),
1017	(11), (12), and (14) of section 287.042, Florida Statutes, are
1018	transferred to section 287.026, Florida Statutes, which is
1019	created, and amended to read:
1020	287.026 287.042  Powers, duties, and functions.--The
1021	department shall have the following powers, duties, and
1022	functions:
1023	(1)(a)  To canvass all sources of supply, establish and
1024	maintain a vendor list to be maintained by classes of
1025	commodities and contractual services, and contract for the
1026	purchase, lease, or acquisition, including purchase by
1027	installment sales or lease-purchase contracts which may provide
1028	for the payment of interest on unpaid portions of the purchase
1029	price, of all commodities and contractual services required by
1030	any agency under this chapter. Any contract providing for
1031	deferred payments and the payment of interest shall be subject
1032	to specific rules adopted by the department.
1033	(b)  The department may remove from its vendor list any
1034	source of supply which fails to fulfill any of its duties
1035	specified in a contract with the state. It may reinstate any
1036	such source of supply when it is satisfied that further
1037	instances of default will not occur.
1038	(h)  The department may collect fees for the use of its
1039	electronic information services. The fees may be imposed on an
1040	individual transaction basis or as a fixed subscription for a
1041	designated period of time. At a minimum, the fees shall be
1042	determined in an amount sufficient to cover the department's
1043	projected costs of such services, including overhead in
1044	accordance with the policies of the Department of Management
1045	Services for computing its administrative assessment. All fees
1046	collected pursuant to this paragraph shall be deposited in the
1047	Grants and Donations Trust Fund for disbursement as provided by
1048	law.
1049	(2)(a)  To establish purchasing agreements and procure
1050	state term contracts for commodities and contractual services,
1051	pursuant to ss. 287.0331-287.03335 s. 287.057, under which state
1052	agencies shall, and eligible users may, make purchases pursuant
1053	to ss. 287.0330 and 287.0337 s. 287.056. The department may
1054	restrict purchases from some term contracts to state agencies
1055	only for those term contracts where the inclusion of other
1056	governmental entities will have an adverse effect on competition
1057	or to those federal facilities located in this state. In such
1058	planning or purchasing the Office of Supplier Diversity may
1059	monitor to ensure that opportunities are afforded for
1060	contracting with minority business enterprises. The department,
1061	for state term contracts, and all agencies, for multiyear
1062	contractual services or term contracts, shall explore reasonable
1063	and economical means to utilize certified minority business
1064	enterprises. Purchases by any county, municipality, private
1065	nonprofit community transportation coordinator designated
1066	pursuant to chapter 427, while conducting business related
1067	solely to the Commission for the Transportation Disadvantaged,
1068	or other local public agency under the provisions in the state
1069	purchasing contracts, and purchases, from the corporation
1070	operating the correctional work programs, of products or
1071	services that are subject to s. 287.122(1)(c) paragraph (1)(f),
1072	are exempt from the competitive solicitation requirements
1073	otherwise applying to their purchases.
1074	(3)  To establish a system of coordinated, uniform
1075	procurement policies, procedures, and practices to be used by
1076	agencies in acquiring commodities and contractual services,
1077	which shall include, but not be limited to:
1078	(a)  Development of a list of interested vendors to be
1079	maintained by classes of commodities and contractual services.
1080	This list shall not be used to prequalify vendors or to exclude
1081	any interested vendor from bidding.
1082	(b)1.  Development of procedures for advertising
1083	solicitations. These procedures must provide for electronic
1084	posting of solicitations for at least 10 days before the date
1085	set for receipt of bids, proposals, or replies, unless the
1086	department or other agency determines in writing that a shorter
1087	period of time is necessary to avoid harming the interests of
1088	the state. The Office of Supplier Diversity may consult with the
1089	department regarding the development of solicitation
1090	distribution procedures to ensure that maximum distribution is
1091	afforded to certified minority business enterprises as defined
1092	in s. 288.703.
1093	2.  Development of procedures for electronic posting. The
1094	department shall designate a centralized website on the Internet
1095	for the department and other agencies to electronically post
1096	solicitations, decisions or intended decisions, and other
1097	matters relating to procurement. From July 1, 2002, until July
1098	1, 2003, the department shall publish a notice in each edition
1099	of the Florida Administrative Weekly which indicates the
1100	specific URL or Internet address for the centralized website.
1101	(c)  Development of procedures for the receipt and opening
1102	of bids, proposals, or replies by an agency. Such procedures
1103	shall provide the Office of Supplier Diversity an opportunity to
1104	monitor and ensure that the contract award is consistent with
1105	the requirements of s. 287.09451.
1106	(d)  Development of procedures to be used by an agency in
1107	deciding to contract, including, but not limited to, identifying
1108	and assessing in writing project needs and requirements,
1109	availability of agency employees, budgetary constraints or
1110	availability, facility equipment availability, current and
1111	projected agency workload capabilities, and the ability of any
1112	other state agency to perform the services.
1113	(e)  Development of procedures to be used by an agency in
1114	maintaining a contract file for each contract which shall
1115	include, but not be limited to, all pertinent information
1116	relating to the contract during the preparatory stages; a copy
1117	of the solicitation; documentation relating to the solicitation
1118	process; opening of bids, proposals, or replies; evaluation and
1119	tabulation of bids, proposals, or replies; and determination and
1120	notice of award of contract.
1121	(f)  Development of procedures to be used by an agency for
1122	issuing solicitations that include requirements to describe
1123	commodities, services, scope of work, and deliverables in a
1124	manner that promotes competition.
1125	(g)  Development of procedures to be used by an agency when
1126	issuing requests for information and requests for quotes.
1127	(4)(a)  To prescribe the methods of securing competitive
1128	sealed bids, proposals, and replies. Such methods may include,
1129	but are not limited to, procedures for identifying vendors;
1130	setting qualifications; conducting conferences or written
1131	question and answer periods for purposes of responding to vendor
1132	questions; evaluating bids, proposals, and replies; ranking and
1133	selecting vendors; and conducting negotiations.
1134	(5)  To prescribe specific commodities and quantities to be
1135	purchased locally.
1136	(6)(a)  To govern the purchase by any agency of any
1137	commodity or contractual service and to establish standards and
1138	specifications for any commodity.
1139	(b)  Except for the purchase of insurance, the department
1140	may delegate to agencies the authority for the procurement of
1141	and contracting for commodities or contractual services.
1142	(7)  To establish definitions and classes of commodities
1143	and contractual services. Agencies shall follow the definitions
1144	and classes of commodities and contractual services established
1145	by the department in acquiring or purchasing commodities or
1146	contractual services. The authority of the department under this
1147	section shall not be construed to impair or interfere with the
1148	determination by state agencies of their need for, or their use
1149	of, services including particular specifications.
1150	(8)  To provide any commodity and contractual service
1151	purchasing rules to the Chief Financial Officer and all agencies
1152	through an electronic medium or other means. Agencies may not
1153	approve any account or request any payment of any account for
1154	the purchase of any commodity or the procurement of any
1155	contractual service covered by a purchasing or contractual
1156	service rule except as authorized therein. The department shall
1157	furnish copies of rules adopted by the department to any county,
1158	municipality, or other local public agency requesting them.
1159	(8)(9)  To require that every agency furnish information
1160	relative to its commodity and contractual services purchases and
1161	methods of purchasing commodities and contractual services to
1162	the department when so requested.
1163	(9)(10)  To prepare statistical data concerning the method
1164	of procurement, terms, usage, and disposition of commodities and
1165	contractual services by agencies. All agencies shall furnish
1166	such information for this purpose to the office and to the
1167	department, as the department or office may call for, but no
1168	less frequently than annually, on such forms or in such manner
1169	as the department may prescribe.
1170	(10)(11)  To establish and maintain programs for the
1171	purpose of disseminating information to government, industry,
1172	educational institutions, and the general public concerning
1173	policies, procedures, rules, and forms for the procurement of
1174	commodities and contractual services. The department shall
1175	furnish copies of rules adopted by the department to any county,
1176	municipality, or other local public agency requesting them.
1177	(11)(12)  Except as otherwise provided herein, to adopt
1178	rules necessary to carry out the purposes of this chapter
1179	section, including the authority to delegate to any agency any
1180	and all of the responsibility conferred by this chapter unless
1181	otherwise provided by law section, retaining to the department
1182	any and all authority for supervision thereof. Such purchasing
1183	of commodities and procurement of contractual services by state
1184	agencies shall be in strict accordance with the rules and
1185	procedures prescribed by the department.
1186	(12)(14)  To procure and distribute federal surplus
1187	tangible personal property allocated to the state by the Federal
1188	Government.
1189	(13)  To develop, in consultation with the Department of
1190	Financial Services, rules for use by agencies for share-in-
1191	savings contracts in which the contractor receives a percentage
1192	of the savings that the contractor generates.
1193	Section 21.  Subsection (23) of section 287.057, Florida
1194	Statutes, is transferred to section 287.027, Florida Statutes,
1195	which is created, and amended to read:
1196	287.027  Online procurement of commodities and services.--
1197	(23)(a)  The department, in consultation with the State
1198	Technology Office and the Chief Financial Officer Comptroller,
1199	shall develop a program for on-line procurement of commodities
1200	and contractual services. To enable the state to promote open
1201	competition and to leverage its buying power, agencies shall,
1202	and eligible users may, procure commodities and contractual
1203	services through participate in the on-line procurement program,
1204	and eligible users may participate in the program. Only vendors
1205	prequalified as meeting mandatory requirements and
1206	qualifications criteria shall be permitted to participate in on-
1207	line procurement. The department, in consultation with the State
1208	Technology Office, may contract for equipment and services
1209	necessary to develop and implement on-line procurement.
1210	(1)(b)  The department, in consultation with the State
1211	Technology Office, shall adopt rules, pursuant to ss. 120.536(1)
1212	and 120.54, to administer the program for on-line procurement.
1213	The rules shall include, but not be limited to:
1214	(a)1.  Determining the requirements and qualification
1215	criteria for prequalifying vendors.
1216	(b)2.  Establishing the procedures for conducting on-line
1217	procurement.
1218	3.  Establishing the criteria for eligible commodities and
1219	contractual services.
1220	(c)4.  Establishing the procedures for providing access to
1221	on-line procurement.
1222	(d)5.  Determining the criteria warranting any exceptions
1223	to the requirement that agencies procure commodities and
1224	contractual services through participation in the on-line
1225	procurement program.
1226	(2)(c)  The department may collect fees for the use of the
1227	on-line procurement systems. The fees may be imposed on an
1228	individual transaction basis or as a fixed percentage of the
1229	cost savings generated. At a minimum, the fees must be set in an
1230	amount sufficient to cover the projected costs of such services,
1231	including administrative and project service costs in accordance
1232	with the policies of the department; however, fees imposed on an
1233	individual transaction basis may not exceed 1 percent of the
1234	transaction amount. For the purposes of compensating the
1235	provider, the department may authorize the provider to collect
1236	and retain a portion of the fees. The providers may withhold the
1237	portion retained from the amount of fees to be remitted to the
1238	department. The department may negotiate the retainage as a
1239	percentage of such fees charged to users, as a flat amount, or
1240	as any other method the department deems feasible. All fees and
1241	surcharges collected under this subsection paragraph shall be
1242	deposited in the Grants and Donation Trust Fund as provided by
1243	law.
1244	Section 22.  Section 287.045, Florida Statutes, is
1245	renumbered as section 287.128, Florida Statutes, and amended to
1246	read:
1247	287.128 287.045  Procurement of products and materials with
1248	recycled content.--
1249	(1)(a)  The department, in cooperation with the Department
1250	of Environmental Protection, shall adopt rules, pursuant to ss.
1251	120.536(1) and 120.54, which provide review and revise existing
1252	procurement procedures and specifications for the purchase and
1253	use by the department, agencies, and contractors contracting
1254	with agencies of products and materials to eliminate any
1255	procedures and specifications that explicitly discriminate
1256	against products and materials with recycled content or that may
1257	be recycled or reused when these products or materials are
1258	discarded. Such rules shall encourage the use of such products
1259	or materials except in cases in which use would be detrimental
1260	to where such procedures and specifications are necessary to
1261	protect the public health, safety, and welfare.
1262	(b)  Each agency shall review and revise its procurement
1263	procedures and specifications for the purchase of products and
1264	materials to eliminate any procedures and specifications that
1265	explicitly discriminate against products and materials with
1266	recycled content, except if such procedures and specifications
1267	are necessary to protect the public health, safety, and welfare.
1268	(2)(a)  The department and each agency shall review and
1269	revise its procurement procedures and specifications for the
1270	purchase of products and materials to ensure to the maximum
1271	extent feasible that each agency uses state contracts to
1272	purchase products or materials that may be recycled or reused
1273	when these products or materials are discarded.
1274	(b)  The Auditor General shall assist in monitoring the
1275	product procurement requirements.
1276	(3)  As part of the review and revision required in
1277	subsection (2), the department and each agency shall review its
1278	procurement provisions and specifications for the purchase of
1279	products and materials to determine which products or materials
1280	with recycled content could be procured by the department or
1281	other agencies and the amount of recycled content that can
1282	technologically be contained in such products or materials. The
1283	department and other agencies must use the amounts of recycled
1284	content and postconsumer recovered material determined by the
1285	department in issuing solicitations for contracts for the
1286	purchase of such products or materials.
1287	(4)  Upon completion of the review required in subsection
1288	(3), the department and other agencies shall require that a
1289	person who submits a bid, proposal, or reply for a contract for
1290	the purchase of products or materials identified in subsection
1291	(3) and who wishes to be considered for the price preference
1292	described in subsection (5) certify in writing the percentage of
1293	recycled content in the product or material that is subject to
1294	the bid, proposal, or reply. A person may certify that the
1295	product or material contains no recycled content.
1296	(5)  Upon evaluation of bids, proposals, or replies for
1297	every public contract that involves the purchase of products or
1298	materials identified in subsection (3), the department or other
1299	agency shall identify the lowest responsible and responsive
1300	vendor and other responsible and responsive vendors who have
1301	certified that the products or materials contain at least the
1302	minimum percentage of recycled content and postconsumer
1303	recovered material that is set forth in the solicitation.
1304	(2)  The department or agency may consider life-cycle
1305	costing when evaluating a bid, proposal, or reply on a product
1306	that consists of recycled materials. The department shall adopt
1307	rules that specify the criteria to be used when considering
1308	life-cycle costing in evaluating bids, proposals, or replies.
1309	The rules must take into account consideration the specified
1310	warranty periods for products and the comparative expected
1311	service life relative to the cost of the products.
1312	(3)  The rules may allow In awarding a contract for the
1313	purchase of products or materials, the department or other
1314	agency to grant may allow up to a 10-percent price preference to
1315	a responsible and responsive vendor who has certified that the
1316	products or materials contain at least the minimum percentage of
1317	recycled content and postconsumer recovered material and up to
1318	an additional 5-percent price preference to a responsible and
1319	responsive vendor who has certified that the products or
1320	material are made of materials recovered in this state. The
1321	amount of the price preference must be commensurate with the
1322	certified amounts of recycled material and postconsumer
1323	recovered material and materials recycled from products in this
1324	state, contained in the product or materials on a sliding scale
1325	as established by department rule, which rule shall not become
1326	effective prior to November 1, 1994. Reusable materials and
1327	products shall be used where economically and technically
1328	feasible. If no vendors offer products or materials with
1329	measurable life-cycle costing factors or the minimum prescribed
1330	recycled and postconsumer content, the contract must be awarded
1331	to the lowest qualified responsible and responsive vendor.
1332	(6)  For the purposes of this section, the term "recycled
1333	content" means materials that have been recycled that are
1334	contained in the products or materials to be procured,
1335	including, but not limited to, paper, aluminum, steel, glass,
1336	plastics, and composted material. The term does not include the
1337	virgin component of internally generated scrap that is commonly
1338	used in industrial or manufacturing processes or such waste or
1339	scrap purchased from another manufacturer who manufactures the
1340	same or a closely related product. Recycled content printing and
1341	fine writing grades of paper shall contain at least 10 percent
1342	postconsumer recovered materials.
1343	(7)  Any person may request the department to evaluate a
1344	product or material with recycled content if the product or
1345	material is eligible for inclusion under state contracts. The
1346	department shall review each reasonable proposal to determine
1347	its merit and, if it finds that the product or material may be
1348	used beneficially, it may incorporate that product or material
1349	into its procurement procedures.
1350	(8)  The department and each agency shall review and revise
1351	its procedures and specifications on a continuing basis to
1352	encourage the use of products and materials with recycled
1353	content and postconsumer recovered material and shall, in
1354	developing new procedures and specifications, encourage the use
1355	of products and materials with recycled content and postconsumer
1356	recovered material.
1357	(9)  After November 1, 1994, the department may discontinue
1358	contracting for products or materials the recycled content of
1359	which does not meet the requirements of subsection (3) if it
1360	determines that products or materials meeting those requirements
1361	are available at a cost not to exceed an additional 10 percent
1362	of comparable virgin products.
1363	(10)  An agency, or a vendor contracting with such agency
1364	with respect to work performed under contract, must procure
1365	products or materials with recycled content if the department
1366	determines that those products or materials are available
1367	pursuant to subsection (5). Notwithstanding any other provision
1368	to the contrary, for the purpose of this section, the term
1369	"agency" means any of the various state officers, departments,
1370	boards, commissions, divisions, bureaus, and councils and any
1371	other unit of organization, however designated, of the executive
1372	branch including the Department of the Lottery, the legislative
1373	branch, the judicial branch, the university and college boards
1374	of trustees, and the state universities and colleges. A decision
1375	not to procure such items must be based on the department's
1376	determination that such procurement is not reasonably available
1377	within an acceptable period of time or fails to meet the
1378	performance standards set forth in the applicable specifications
1379	or fails to meet the performance standards of the agency.
1380	(11)  Each agency shall report annually to the department
1381	its total expenditures on, and use of, products with recycled
1382	content and the percentage of its budget that represents
1383	purchases of similar products made from virgin materials. The
1384	department shall design a uniform reporting mechanism and
1385	prepare annual summaries of statewide purchases delineating
1386	those with recycled content to be submitted to the Governor, the
1387	President of the Senate, and the Speaker of the House of
1388	Representatives.
1389	Section 23.  Part III of chapter 287, Florida Statutes,
1390	consisting of sections 287.0439, 287.044, 287.046, 287.047, and
1391	287.048, Florida Statutes, is created to read:
1392	PART III
1393	OUTSOURCING
1394	287.0439  Definitions.--As used in this part, the term:
1395	(1)  "Cost" means the reasonable, relevant, and verifiable
1396	cost, which may include, but not be limited to, such elements as
1397	personnel costs, materials and supplies, services, equipment,
1398	capital depreciation cost, rent, maintenance and repairs,
1399	utilities, insurance, personnel travel, overhead, profit, and
1400	interim and final payments. The appropriate elements shall
1401	depend on the nature of the specific outsourcing or
1402	privatization initiative.
1403	(2)  "Savings" means the difference between the recurring
1404	operating appropriations or actual expenditures, whichever is
1405	less, in the full fiscal year immediately prior to the signing
1406	of the contract for outsourcing compared to the cost for the
1407	outsourced functions or programs in any succeeding state fiscal
1408	year during the term of the contract.
1409	287.044  General requirements.--
1410	(1)  An agency seeking to, or directed by the Legislature
1411	to, outsource or privatize a function or a responsibility,
1412	whether initially or after the expiration of a contract to
1413	outsource or privatize, must comply with the requirements of
1414	this part and the requirements of the Center for Efficient
1415	Government as specified in part I if:
1416	(a)1.  The proposed outsourcing or privatization initiative
1417	will transfer or shift work currently performed by state
1418	employees to another entity, resulting in those state employees
1419	no longer performing the work;
1420	2.  A current outsourcing or privatization initiative has
1421	transferred or shifted work that had previously been performed
1422	by state employees to another entity; or
1423	3.  The outsourcing or privatization initiative involves a
1424	function or responsibility that is not currently being performed
1425	by the state either by state employees or by a contractor; and
1426	(b)  The outsourcing or privatization initiative meets one
1427	of the following criteria:
1428	1.  The value of the contract, as provided in s. 287.028,
1429	over the proposed term of the contract is projected to exceed
1430	the lesser of 5 percent of the implementing agency or agencies'
1431	total budget or $10 million;
1432	2.  Reductions during the proposed term of the contract are
1433	projected to exceed the lesser of 50 full-time-equivalent
1434	positions, 5 percent of the agency's or agencies' authorized
1435	full-time-equivalent positions, or 5 percent of the agency's or
1436	agencies' authorized salaries and benefits; or
1437	3.  The Legislature directs that the outsourcing or
1438	privatization initiative comply with this part.
1439
1440	An agency or agencies shall not divide the outsourcing
1441	initiative so as to avoid being subject to this part.
1442	(2)  Notwithstanding subsection (1), an outsourcing or
1443	privatization initiative is not subject to this part if the
1444	agency seeking to or directed by the Legislature to continue
1445	outsourcing or privatizing a function or responsibility executed
1446	a contract prior to July 1, 1994, to outsource or privatize that
1447	function or responsibility and such continued outsourcing or
1448	privatization would be substantially similar in nature and
1449	purpose to the original outsourcing or privatization.
1450	287.046  Outsourcing or privatizing of functions or
1451	responsibilities.--No agency may outsource or privatize any
1452	function or responsibility without having or seeking authority
1453	except as authorized by general law, the General Appropriations
1454	Act, legislation implementing the General Appropriations Act, or
1455	special appropriations acts, as needed. Prior to outsourcing or
1456	privatizing a function or responsibility subject to this part,
1457	the agency shall comply with the requirements of the center and
1458	the board as specified in s. 287.0265 and the following
1459	requirements:
1460	(1)  BUSINESS CASE.--The agency shall develop a business
1461	case describing and analyzing the outsourcing or privatization
1462	initiative. A business case is part of the solicitation process
1463	and is not a rule subject to challenge pursuant to s. 120.54.
1464	The business case shall include, but not be limited to, the
1465	following information:
1466	(a)  A detailed description of the function or
1467	responsibility to be outsourced or privatized, a description and
1468	analysis of the agency's current performance, a rationale for
1469	the proposed outsourcing or privatization initiative, and a
1470	citation of the existing or proposed legal authority for
1471	outsourcing or privatizing the function or responsibility.
1472	(b)  A cost-benefit analysis describing the estimated
1473	specific tangible and intangible costs, savings, performance
1474	improvements, risks, and qualitative and quantitative benefits
1475	involved in or resulting from the outsourcing or privatization.
1476	All elements of cost shall be clearly identified in the cost-
1477	benefit analysis and described in the business case. The agency
1478	shall certify that all costs, savings, and benefits are valid
1479	and achievable.
1480	(c)  A statement of the potential impact on state revenues
1481	and expenditures. The statement shall specifically address the
1482	impact on general revenue, trust funds, general revenue service
1483	charges, and interest on trust funds together with the potential
1484	direct or indirect impact on federal funding and cost
1485	allocations.
1486	(d)  A plan regarding compliance with public records law,
1487	including:
1488	1.  A plan for providing public access to public records at
1489	a cost that does not exceed that provided in chapter 119.
1490	2.  A plan ensuring the confidentiality of records which
1491	are exempt or confidential and exempt under law.
1492	3.  A plan for meeting all requirements for record
1493	retention provided by law.
1494	4.  A plan for transfer to the state, at no cost, all
1495	public records in possession of the contractor upon termination
1496	of the contract.
1497	(e)  An agency transition plan for addressing changes in
1498	organizational structure, affected business processes, and
1499	employee transition issues.
1500	(f)  A listing of assets proposed for transfer to or use by
1501	a contractor, a description of the proposed requirements for
1502	maintenance of those assets by the contractor or the agency in
1503	accord with chapter 273, a plan for the disposition of such
1504	assets upon termination of the contract, and a description of
1505	how the planned asset transfer or use by a contractor is in the
1506	best interests of the state.
1507
1508	If an outsourcing or privatization initiative would require
1509	integration with or would in any way impact other state
1510	information technology systems, the agency shall submit the
1511	feasibility study documentation as required by the legislative
1512	budget request instructions established pursuant to s. 216.023.
1513	(2)  CONTRACT REQUIREMENTS.--Each outsourcing initiative,
1514	and when appropriate a privatization initiative, shall be
1515	memorialized in a written contract. At a minimum, the contract
1516	shall include:
1517	(a)  For an outsourcing contract only, retention of
1518	ultimate responsibility for the function or responsibility by
1519	the agency.
1520	(b)  Clear and specific terms and conditions providing a
1521	clearly defined scope of work that is directly related to the
1522	goals and objectives of the outsourcing or privatization
1523	initiative. The terms must include:
1524	1.  A detailed scope of work that clearly specifies each
1525	service and deliverable to be provided.
1526	2.  All service-level agreements describing all necessary
1527	performance requirements and state and contractor
1528	responsibilities.
1529	3.  Associated costs and savings, specific payment terms,
1530	including incentive and penalty provisions, criteria governing
1531	payment, and a clear and specific schedule that will be
1532	implemented in order to complete all required outsourcing
1533	activities needed to transition the outsourced function or
1534	responsibility from the state to the contractor and operate the
1535	outsourced function or responsibility successfully.
1536	(c)  Clear and specific identification of all required
1537	performance measures and levels that shall include, but not be
1538	limited to:
1539	1.  Detailed measurable acceptance criteria for each
1540	deliverable and service to be provided to the state under the
1541	terms of the contract.
1542	2.  A method for monitoring and reporting progress in
1543	achieving specified performance outcomes and associated
1544	performance incentives.
1545	3.  The sanctions or penalties that shall be assessed for
1546	contractor nonperformance.
1547	(d)  A description of deliverables, activities, or events
1548	that are directly related to the scope of work that are
1549	quantifiable, measurable, and verifiable.
1550	(e)  An organizational change management plan that clearly
1551	identifies any changes in organizational structure, including
1552	staffing and personnel changes in all affected agencies.
1553	(f)  A requirement that the contractor maintain adequate
1554	accounting records.
1555	(g)  A requirement authorizing state access to and audit of
1556	all records related to the contract and outsourced
1557	responsibilities or functions for state audit purposes and the
1558	audit of such responsibilities and functions, and a requirement
1559	for Statement on Auditing Standards 70 audits, if appropriate.
1560	(h)  A requirement that ownership of any intellectual
1561	property critical for the assumption of the outsourced function
1562	or program by the state or another vendor shall transfer to the
1563	state in the event a contractor ceases to provide the outsourced
1564	function or responsibility.
1565	(i)  A requirement describing the timing, nature, and
1566	substance of all status or progress reports that are to be
1567	provided.
1568	(j)  A requirement that the contractor comply with public
1569	records law. The contractor shall:
1570	1.  Keep and maintain the public records that ordinarily
1571	and necessarily would be required by an agency to perform the
1572	function or service.
1573	2.  Provide public access to such public records on the
1574	same terms and conditions that an agency would and at a cost
1575	that does not exceed that provided in chapter 119.
1576	3.  Ensure the confidentiality of records which are exempt
1577	or confidential and exempt under law.
1578	4.  Meet all legal requirements for record retention.
1579	5.  Transfer to the state, at no cost to the state, all
1580	public records in possession of the contractor upon termination
1581	of the contract. All records stored electronically must be
1582	provided to the state in a format compatible with state
1583	information technology systems.
1584	(k)  Provisions that venue of any action regarding the
1585	contract shall be in this state and that the contract shall be
1586	interpreted according to the laws of this state.
1587	(3)  REPORTS TO THE LEGISLATURE.--The following reports and
1588	information shall be furnished to the President of the Senate
1589	and the Speaker of the House of Representatives by the center on
1590	behalf of the agency for outsourcing or privatization
1591	initiatives subject to this part:
1592	(a)  When an agency is seeking authority by law to
1593	outsource or privatize a function or responsibility, the
1594	business case shall be furnished at least 60 days prior to the
1595	first day of the regular legislative session.
1596	(b)  When an agency has authority provided by law or is
1597	required by legislative action to outsource or privatize a
1598	function or responsibility and no business case was furnished
1599	under paragraph (a), the business case shall be furnished at
1600	least 30 days prior to the issuance of a solicitation to
1601	outsource or privatize that function or responsibility.
1602	(c)  The solicitation documents for the outsourcing or
1603	privatization initiative, a current and updated business case,
1604	and a detailed listing of the changes to the business case in
1605	the update shall be furnished at the time the solicitation is
1606	advertised.
1607	(d)  A current and updated business case reflecting the
1608	proposed contract, together with a detailed listing of the
1609	changes to the business case in the update, shall be furnished
1610	at least 15 days prior to contract execution if the quantitative
1611	aspects of the updated business case's objectives, business
1612	benefits, costs, savings, and benefits, project scope,
1613	implementation approach, or timeline, as compared to those in
1614	the business case provided with the solicitation documents, have
1615	changed by 10 percent or more or the qualitative aspects have
1616	changed significantly.
1617	(e)  An executed contract, a current and updated business
1618	case, and a detailed listing of the changes to the business case
1619	in the update shall be furnished no later than 15 days after
1620	execution.
1621	(f)  Upon request by the Legislature, the agency shall
1622	furnish a project status report for the outsourcing or
1623	privatization initiative describing the progress made to date,
1624	actual completion dates, actual costs incurred, current issues
1625	requiring resolution, and planned project milestones,
1626	deliverables, expenditures or consideration for the next
1627	reporting period, and any other information the Legislature may
1628	request.
1629	(g)  Notice of a proposed renewal of a contract for
1630	outsourcing or privatization shall be furnished at least 15 days
1631	prior to the execution of the contract for renewal, which notice
1632	shall include a copy of the proposed renewal contract and an
1633	updated business case complying with subsection (1).
1634	(4)  CONTRACT REVIEW AND OBJECTION.--If the proposed
1635	contract terms result in a change in the updated business case
1636	as compared to the business case provided with the solicitation
1637	documents such that the quantitative aspects have changed by 10
1638	percent or more as provided in paragraph (3)(d), or the
1639	qualitative aspects have changed significantly, the Legislature
1640	may object to the procurement as provided in s. 216.177(2)(b)
1641	within 15 days after the receipt of the updated business case
1642	reflecting the proposed final contract. Any such objection shall
1643	be transmitted to the center and the agency. An agency shall not
1644	execute the proposed final contract unless the objection is
1645	withdrawn.
1646	(5)  CABINET AGENCIES.--Cabinet agencies may act on their
1647	own behalf without the involvement or assistance of the center
1648	when complying with this part.
1649	287.047  Access to records.--A contractor shall make
1650	available for review any program-related records that it
1651	produces or collects to the same extent those records would be
1652	available from a state agency.
1653	287.048  Agency actions.--The actions of agencies in
1654	accordance with this part are not grounds for protest under
1655	chapter 120.
1656	Section 24.  Paragraphs (d), (e), (f), and (g) of
1657	subsection (1) of section 287.042, Florida Statutes, are
1658	transferred to section 287.122, Florida Statutes, which is
1659	created, and amended to read:
1660	287.122  Purchases from correctional industry programs;
1661	purchases from qualified nonprofit agencies for persons with
1662	disabilities.--
1663	(1)(d)  With regard to the corporation operating the
1664	correctional industry program provided for in s. 946.502, the
1665	department shall: The department shall issue commodity numbers
1666	for all products of the corporation operating the correctional
1667	industry program which meet or exceed department specifications.
1668	(a)  Issue commodity numbers for all products of the
1669	corporation operating the correctional industry program which
1670	meet or exceed department specifications.
1671	(b)(e)  The department shall Include the products offered
1672	by the corporation on any listing prepared by the department
1673	which lists state term contracts executed by the department. The
1674	products offered by the corporation and listed by the department
1675	may be listed on a state term contract or listed as an exception
1676	to the state term contract as determined by the department. The
1677	products or services shall be placed on such list in a category
1678	based upon specification criteria developed through a joint
1679	effort of the department and the corporation and approved by the
1680	department.
1681	(c)(f)  Allow the corporation to may submit products and
1682	services to the department for testing, analysis, and review
1683	relating to the quality and cost comparability. If, after review
1684	and testing, the department approves of the products and
1685	services, the department shall give written notice thereof to
1686	the corporation. The corporation shall pay a reasonable fee
1687	charged for testing its products by the Department of
1688	Agriculture and Consumer Services.
1689	(2)(g)  The department shall include products and services
1690	that are offered by a qualified nonprofit agency for persons
1691	with disabilities the blind or for the other severely
1692	handicapped organized pursuant to chapter 413 and that have been
1693	determined to be suitable for purchase pursuant to s. 413.035 on
1694	any department listing of state term contracts. The products and
1695	services shall be placed on such list in a category based upon
1696	specification criteria developed by the department in
1697	consultation with the qualified nonprofit agency. The products
1698	offered by a qualified nonprofit agency for persons with
1699	disabilities and listed by the department may be listed on a
1700	state term contract or listed as an exception to the state term
1701	contract as determined by the department.
1702	Section 25.  Paragraphs (e), (f), and (g) of subsection (5)
1703	and subsection (11) of section 287.057, Florida Statutes, are
1704	transferred to section 287.123, Florida Statutes, which is
1705	created, and amended to read:
1706	287.123  Purchases exempt from competitive solicitation
1707	requirements.--The following contractual services and
1708	commodities are not subject to the competitive-solicitation
1709	requirements of part II:
1710	(1)(e)  Prescriptive assistive devices for the purpose of
1711	medical, developmental, or vocational rehabilitation of clients,
1712	which are excepted from competitive-solicitation requirements
1713	and shall be procured pursuant to an established fee schedule or
1714	by any other method which ensures the best price for the state,
1715	taking into account consideration the needs of the client.
1716	Prescriptive assistive devices include, but are not limited to,
1717	prosthetics, orthotics, and wheelchairs. For purchases made
1718	pursuant to this subsection paragraph, state agencies shall
1719	annually file with the department a description of the purchases
1720	and methods of procurement.
1721	(f)  The following contractual services and commodities are
1722	not subject to the competitive-solicitation requirements of this
1723	section:
1724	(2)1.  Artistic services.
1725	(3)2.  Academic program reviews.
1726	(4)3.  Lectures by individuals.
1727	(5)4.  Auditing services.
1728	(6)5.  Legal services, including attorney, paralegal,
1729	expert witness, appraisal, or mediator services.
1730	(7)6.  Health services involving examination, diagnosis,
1731	treatment, prevention, medical consultation, or administration.
1732	(8)7.  Services provided to persons with mental or physical
1733	disabilities by not-for-profit corporations which have obtained
1734	exemptions under the provisions of s. 501(c)(3) of the United
1735	States Internal Revenue Code or when such services are governed
1736	by the provisions of Office of Management and Budget Circular A-
1737	122. However, in acquiring such services, the agency shall
1738	consider the ability of the vendor, past performance,
1739	willingness to meet time requirements, and price.
1740	(9)8.  Medicaid services delivered to an eligible Medicaid
1741	recipient by a health care provider who has not previously
1742	applied for and received a Medicaid provider number from the
1743	Agency for Health Care Administration. However, this exception
1744	shall be valid for a period not to exceed 90 days after the date
1745	of delivery to the Medicaid recipient and shall not be renewed
1746	by the agency.
1747	(10)9.  Family placement services.
1748	(11)10.  Prevention services related to mental health,
1749	including drug abuse prevention programs, child abuse prevention
1750	programs, and shelters for runaways, operated by not-for-profit
1751	corporations. However, in acquiring such services, the agency
1752	shall consider the ability of the vendor, past performance,
1753	willingness to meet time requirements, and price.
1754	(12)11.  Training and education services provided to
1755	injured employees pursuant to s. 440.49(1).
1756	(13)12.  Contracts entered into pursuant to s. 337.11.
1757	(14)13.  Services or commodities provided by political
1758	subdivisions of the state, governmental agencies, state
1759	universities and colleges, independent nonprofit colleges or
1760	universities located within the state and accredited by the
1761	Southern Association of Colleges and Schools, the Federal
1762	Government or any department, commission, agency, or other
1763	instrumentality thereof, and other states and their agencies.
1764	(15)(g)  Continuing education events or programs that are
1765	offered to the general public and for which fees have been
1766	collected that pay all expenses associated with the event or
1767	program are exempt from requirements for competitive
1768	solicitation.
1769	(16)(11)  A contract for commodities or contractual
1770	services may be awarded without competition if state or federal
1771	law prescribes with whom the agency must contract or if the rate
1772	of payment is established during the appropriations process.
1773	Section 26.  Section 287.025, Florida Statutes, is
1774	renumbered as section 287.1241, Florida Statutes, and amended to
1775	read:
1776	287.1241 287.025  Prohibition against certain insurance
1777	coverage on specified state property or insurable subjects.--
1778	(1)  No primary contract of insurance shall be procured
1779	purchased on insurable subjects or property titled in the name
1780	of the state or its departments, divisions, bureaus,
1781	commissions, or agencies with respect to any of the following
1782	properties, coverages, or insurable subjects:
1783	(a)  Physical damage insurance on motor vehicles which are
1784	licensed for use on the public highways of this state. For the
1785	purpose of this chapter, the term "physical damage insurance"
1786	means coverage against collision, upset or overturn, fire,
1787	theft, combined additional coverage, or comprehensive;
1788	(b)  Physical damage insurance on watercraft and related
1789	equipment;
1790	(c)  Loss of rental income on any buildings unless the
1791	buildings are financed in whole or in part by revenue bonds or
1792	certificates the terms of which require such coverage or unless
1793	otherwise authorized by law;
1794	(d)  Miscellaneous equipment which is subject to a
1795	transportation feature and subject to ordinarily being covered
1796	by an inland marine insurance floater. The term "miscellaneous
1797	equipment" does not include boilers and machinery or nuclear
1798	equipment;
1799	(e)  Museum collections, artifacts, relics, or fine arts;
1800	(e)(f)  Hull coverage on aircraft;
1801	(f)(g)  Glass insurance;
1802	(g)(h)  Coverage for loss against vandalism or malicious
1803	mischief unless these perils are included within an all-risks-
1804	of-physical-loss form; and
1805	(h)(i)  Insurance against loss or damage to livestock and
1806	services of a veterinary for such animals.
1807	(2)  Excess insurance may be procured purchased to cover
1808	loss for physical damage on the above-described properties or
1809	risk if the aggregate exposure at any one location or actual
1810	cash value of any one item exceeds the sum of $10,000. However,
1811	no excess insurance shall be purchased on any items listed in
1812	paragraphs (1)(c), (f)(e), (g), and (h), and (i), regardless of
1813	value or risk.
1814	(3)  Any items, property, or insurable subjects titled in
1815	the name of the state or its departments, divisions, bureaus,
1816	commissions, or agencies which are not included or insured by
1817	the State Risk Management Trust Fund under chapter 284 or
1818	specifically designated not to be insured by this section shall
1819	be eligible subjects for insurance coverage through commercial
1820	insurance carriers as otherwise provided by law.
1821	(4)  No primary insurance contracts shall be procured
1822	purchased on any property or insurable subjects when the same is
1823	loaned to, leased by, or intended to be leased by, the state or
1824	its departments, divisions, bureaus, commissions, or agencies
1825	unless such coverage is required by the terms of the lease
1826	agreement and unless the insurance coverages required by the
1827	provisions of the lease are approved in writing by the
1828	Department of Management Services.
1829	Section 27.  Section 287.055, Florida Statutes, is
1830	renumbered as section 287.125, Florida Statutes, and subsections
1831	(2) and (7) and paragraph (c) of subsection (9) of said section
1832	are amended, to read:
1833	287.125 287.055  Acquisition of professional architectural,
1834	engineering, landscape architectural, or surveying and mapping
1835	services; definitions; procedures; contingent fees prohibited;
1836	penalties.--
1837	(2)  DEFINITIONS.--For purposes of this section:
1838	(a)(b)  "Agency" means the state, a state agency, a
1839	municipality, a political subdivision, a school district, or a
1840	school board. The term "agency" does not extend to a
1841	nongovernmental developer that contributes public facilities to
1842	a political subdivision under s. 380.06 or ss. 163.3220-
1843	163.3243.
1844	(b)(e)  "Agency official" means any elected or appointed
1845	officeholder, employee, consultant, person in the category of
1846	other personal service or any other person receiving
1847	compensation from the state, a state agency, municipality, or
1848	political subdivision, a school district or a school board.
1849	(c)(d)  "Compensation" means the total amount paid by the
1850	agency for professional services.
1851	(d)(g)  A "Continuing contract" means is a contract for
1852	professional services entered into in accordance with all the
1853	procedures of this act between an agency and a firm whereby the
1854	firm provides professional services to the agency for projects
1855	in which construction costs do not exceed $1 million, for study
1856	activity when the fee for such professional service does not
1857	exceed $50,000, or for work of a specified nature as outlined in
1858	the contract required by the agency, with no time limitation
1859	except that the contract must provide a termination clause.
1860	(e)  "Department" means the Department of Management
1861	Services.
1862	(f)(i)  A "Design-build contract" means a single contract
1863	with a design-build firm for the design and construction of a
1864	public construction project.
1865	(g)(h)  A "Design-build firm" means a partnership,
1866	corporation, or other legal entity that:
1867	1.  Is certified under s. 489.119 to engage in contracting
1868	through a certified or registered general contractor or a
1869	certified or registered building contractor as the qualifying
1870	agent; or
1871	2.  Is certified under s. 471.023 to practice or to offer
1872	to practice engineering; certified under s. 481.219 to practice
1873	or to offer to practice architecture; or certified under s.
1874	481.319 to practice or to offer to practice landscape
1875	architecture.
1876	(h)(j)  A "Design criteria package" means concise,
1877	performance-oriented drawings or specifications of the public
1878	construction project. The purpose of the design criteria package
1879	is to furnish sufficient information to permit design-build
1880	firms to prepare a bid or a response to an agency's request for
1881	proposal, or to permit an agency to enter into a negotiated
1882	design-build contract. The design criteria package must specify
1883	performance-based criteria for the public construction project,
1884	including the legal description of the site, survey information
1885	concerning the site, interior space requirements, material
1886	quality standards, schematic layouts and conceptual design
1887	criteria of the project, cost or budget estimates, design and
1888	construction schedules, site development requirements,
1889	provisions for utilities, stormwater retention and disposal, and
1890	parking requirements applicable to the project.
1891	(i)(k)  A "Design criteria professional" means a firm who
1892	holds a current certificate of registration under chapter 481 to
1893	practice architecture or landscape architecture or a firm who
1894	holds a current certificate as a registered engineer under
1895	chapter 471 to practice engineering and who is employed by or
1896	under contract to the agency for the providing of professional
1897	architect services, landscape architect services, or engineering
1898	services in connection with the preparation of the design
1899	criteria package.
1900	(j)(c)  "Firm" means any individual, firm, partnership,
1901	corporation, association, or other legal entity permitted by law
1902	to practice architecture, engineering, or surveying and mapping
1903	in the state.
1904	(k)(a)  "Professional services" means those services within
1905	the scope of the practice of architecture, professional
1906	engineering, landscape architecture, or registered surveying and
1907	mapping, as defined by the laws of the state, or those performed
1908	by any architect, professional engineer, landscape architect, or
1909	registered surveyor and mapper in connection with his or her
1910	professional employment or practice.
1911	(l)(f)  "Project" means that fixed capital outlay study or
1912	planning activity described in the public notice of the state or
1913	a state agency under paragraph (3)(a). A project may include:
1914	1.  A grouping of minor construction, rehabilitation, or
1915	renovation activities.
1916	2.  A grouping of substantially similar construction,
1917	rehabilitation, or renovation activities.
1918	(7)  AUTHORITY OF DEPARTMENT OF MANAGEMENT
1919	SERVICES.--Notwithstanding any other provision of this section,
1920	Notwithstanding any other provision of this section, the
1921	department of Management Services shall be the agency of state
1922	government which is solely and exclusively authorized and
1923	empowered to administer and perform the functions described in
1924	subsections (3), (4), and (5) respecting all projects for which
1925	the funds necessary to complete same are appropriated to the
1926	department of Management Services, irrespective of whether such
1927	projects are intended for the use and benefit of the department
1928	of Management Services or any other agency of government.
1929	However, nothing herein shall be construed to be in derogation
1930	of any authority conferred on the department of Management
1931	Services by other express provisions of law. Additionally, any
1932	agency of government may, with the approval of the department of
1933	Management Services, delegate to the department of Management
1934	Services authority to administer and perform the functions
1935	described in subsections (3), (4), and (5). Under the terms of
1936	the delegation, the agency may reserve its right to accept or
1937	reject a proposed contract.
1938	(9)  APPLICABILITY TO DESIGN-BUILD CONTRACTS.--
1939	(c)  Except as otherwise provided in s. 337.11(7), the
1940	department of Management Services shall adopt rules for the
1941	award of design-build contracts to be followed by state
1942	agencies. Each other agency must adopt rules or ordinances for
1943	the award of design-build contracts. Municipalities, political
1944	subdivisions, school districts, and school boards shall award
1945	design-build contracts by the use of a competitive proposal
1946	selection process as described in this subsection, or by the use
1947	of a qualifications-based selection process pursuant to
1948	subsections (3), (4), and (5) for entering into a contract
1949	whereby the selected firm will subsequently establish a
1950	guaranteed maximum price and guaranteed completion date. If the
1951	procuring agency elects the option of qualifications-based
1952	selection, during the selection of the design-build firm the
1953	procuring agency shall employ or retain a licensed design
1954	professional appropriate to the project to serve as the agency's
1955	representative. Procedures for the use of a competitive proposal
1956	selection process must include as a minimum the following:
1957	1.  The preparation of a design criteria package for the
1958	design and construction of the public construction project.
1959	2.  The qualification and selection of no fewer than three
1960	design-build firms as the most qualified, based on the
1961	qualifications, availability, and past work of the firms,
1962	including the partners or members thereof.
1963	3.  The criteria, procedures, and standards for the
1964	evaluation of design-build contract proposals or bids, based on
1965	price, technical, and design aspects of the public construction
1966	project, weighted for the project.
1967	4.  The solicitation of competitive proposals, pursuant to
1968	a design criteria package, from those qualified design-build
1969	firms and the evaluation of the responses or bids submitted by
1970	those firms based on the evaluation criteria and procedures
1971	established prior to the solicitation of competitive proposals.
1972	5.  For consultation with the employed or retained design
1973	criteria professional concerning the evaluation of the responses
1974	or bids submitted by the design-build firms, the supervision or
1975	approval by the agency of the detailed working drawings of the
1976	project; and for evaluation of the compliance of the project
1977	construction with the design criteria package by the design
1978	criteria professional.
1979	6.  In the case of public emergencies, for the agency head
1980	to declare an emergency and authorize negotiations with the best
1981	qualified design-build firm available at that time.
1982	Section 28.  Section 287.058, Florida Statutes, is
1983	renumbered as section 287.31, Florida Statutes, and amended to
1984	read:
1985	287.31 287.058  Contract document.--
1986	(1)  Every procurement of contractual services valued in
1987	excess of the threshold amount provided in s. 287.028 287.017
1988	for CATEGORY TWO, except for the providing of health and mental
1989	health services or drugs in the examination, diagnosis, or
1990	treatment of sick or injured state employees or the providing of
1991	other benefits as required by the provisions of chapter 440,
1992	shall be evidenced by a written agreement embodying all
1993	provisions and conditions of the procurement of such services,
1994	which provisions and conditions shall, where applicable,
1995	include, but shall not be limited to:
1996	(a)  A provision that bills for fees or other compensation
1997	for services or expenses be submitted in detail sufficient for a
1998	proper preaudit and postaudit thereof.
1999	(b)  A provision that bills for any travel expenses be
2000	submitted in accordance with s. 112.061. A state agency may
2001	establish rates lower than the maximum provided in s. 112.061.
2002	(c)  A provision allowing unilateral cancellation by the
2003	agency for refusal by the contractor to allow public access to
2004	all documents, papers, letters, or other material made or
2005	received by the contractor in conjunction with the contract,
2006	unless the records are exempt from s. 24(a) of Art. I of the
2007	State Constitution and s. 119.07(1).
2008	(d)  A provision dividing the contract into units of
2009	deliverables, which shall include, but not be limited to,
2010	reports, findings, and drafts, that must be received and
2011	accepted in writing by the contract manager prior to payment.
2012	(e)  A provision specifying the criteria and the final date
2013	by which such criteria must be met for completion of the
2014	contract.
2015	(f)  A provision specifying that the contract may be
2016	renewed for a period that may not exceed 3 years or the term of
2017	the original contract, whichever period is longer, specifying
2018	the renewal price for the contractual service as set forth in
2019	the bid, proposal, or reply, specifying that costs for the
2020	renewal may not be charged, and specifying that renewals shall
2021	be contingent upon satisfactory performance evaluations by the
2022	agency and subject to the availability of funds. Exceptional
2023	purchase contracts pursuant to ss. 287.0335 and 287.0336 s.
2024	287.057(5)(a) and (c) may not be renewed.
2025
2026	In lieu of a written agreement, the department may authorize the
2027	use of a purchase order for classes of contractual services, if
2028	the provisions of paragraphs (a)-(f) are included in the
2029	purchase order or solicitation. The purchase order must include,
2030	but need not be limited to, an adequate description of the
2031	services, the contract period, and the method of payment. In
2032	lieu of printing the provisions of paragraphs (a)-(f) in the
2033	contract document or purchase order, agencies may incorporate
2034	the requirements of paragraphs (a)-(f) by reference.
2035	(2)  The written agreement shall be signed by the agency
2036	head and the contractor prior to the rendering of any
2037	contractual service the value of which is in excess of the
2038	threshold amount provided in s. 287.028 287.017 for CATEGORY
2039	TWO, except in the case of a valid emergency as certified by the
2040	agency head. The certification of an emergency shall be prepared
2041	within 30 days after the contractor begins rendering the service
2042	and shall state the particular facts and circumstances which
2043	precluded the execution of the written agreement prior to the
2044	rendering of the service. If the agency fails to have the
2045	contract signed by the agency head and the contractor prior to
2046	rendering the contractual service, and if an emergency does not
2047	exist, the agency head shall, no later than 30 days after the
2048	contractor begins rendering the service, certify the specific
2049	conditions and circumstances to the department as well as
2050	describe actions taken to prevent recurrence of such
2051	noncompliance. The agency head may delegate the certification
2052	only to other senior management agency personnel. A copy of the
2053	certification shall be furnished to the Chief Financial Officer
2054	with the voucher authorizing payment. The department shall
2055	report repeated instances of noncompliance by an agency to the
2056	Auditor General. Nothing in this subsection shall be deemed to
2057	authorize additional compensation prohibited by s. 215.425. The
2058	procurement of contractual services shall not be divided so as
2059	to avoid the provisions of this section.
2060	(3)  Notwithstanding the provisions of subsections (1) and
2061	(2), in those cases in which state agencies are unable to
2062	procure a written agreement for the providing of health and
2063	mental health services or drugs in the examination, diagnosis,
2064	or treatment of sick or injured persons in the care or custody
2065	of a state agency, those services and drugs may be obtained by
2066	purchase order. The purchase order shall contain sufficient
2067	detail for a proper audit and shall be signed by purchasing or
2068	contracting personnel acting on behalf of the agency.
2069	(4)  Every procurement of contractual services of the value
2070	of the threshold amount provided in s. 287.028 287.017 for
2071	CATEGORY TWO or less, except for the providing of health and
2072	mental health services or drugs in the examination, diagnosis,
2073	or treatment of sick or injured state employees or the providing
2074	of other benefits as required by the provisions of chapter 440,
2075	shall be evidenced by a written agreement or purchase order. The
2076	written agreement or purchase order must contain sufficient
2077	detail for a proper audit, must be signed by purchasing or
2078	contracting personnel acting on behalf of the agency, and may
2079	contain the provisions and conditions provided in subsection
2080	(1).
2081	(5)  An agency or contractor may, directly or indirectly,
2082	require from or levy or impose upon a person who is not a party
2083	to a contract a fee, tax, or other charge only if specifically
2084	authorized by law to do so.
2085	(6)  For share-in-savings contracts as defined in s.
2086	287.026(13), the contract shall include, but not be limited to:
2087	(a)  Clearly defined outcomes.
2088	(b)  A relevant, objective, and reliable baseline that
2089	incorporates a measure of the costs incurred during the baseline
2090	period as well as  a measure of the operating efficiency and
2091	effectiveness of the baseline period for comparison purposes to
2092	the costs and operating efficiencies and effectiveness
2093	experienced after project implementation. The baseline shall be
2094	established prior to the signing of the contract and be reviewed
2095	and approved by the department and the Chief Financial Officer
2096	for relevance, accuracy, and completeness.
2097	(c)  A provision establishing the methodology for
2098	calculating and documenting savings to be produced by the
2099	project. The methodology shall require that the calculation be
2100	documented and supported by verifiable information included in
2101	the agency's records and shall include amounts paid to the
2102	contractor.
2103	(d)  A provision specifying the financial arrangement if
2104	certain savings or revenues are not realized as expected.
2105	(e)  A compensation cap, if appropriate to ensure that the
2106	amount paid is reasonable in relation to the value of the
2107	services received by the state.
2108	(f)  A clause describing the steps that will be taken to
2109	settle disputes over share-in-savings payments.
2110	(g)  A provision identifying agency staff responsible for
2111	maintaining the baseline and monitoring cost savings
2112	calculations.
2113	(7)(5)  Unless otherwise provided in the General
2114	Appropriations Act or the substantive bill implementing the
2115	General Appropriations Act, the Chief Financial Officer may
2116	waive the requirements of subsections (1)?(4) this section for
2117	services which are included in s. 287.123(2)-(14) 287.057(5)(f).
2118	Section 29.  Subsections (15) and (16) of section 287.0567,
2119	Florida Statutes, and paragraph (e) of subsection (3) of section
2120	287.042, Florida Statutes, are transferred to section 287.321,
2121	Florida Statutes, which is created, and amended to read:
2122	287.321  Contract manager; contract administrator; contract
2123	file.--
2124	(1)(15)  For each contractual services contract, the agency
2125	shall designate an employee to function as contract manager who
2126	shall be responsible for enforcing performance of the contract
2127	terms and conditions and serve as a liaison with the contractor.
2128	The agency shall establish procedures to ensure that contractual
2129	services have been rendered in accordance with the contract
2130	terms prior to processing the invoice for payment.
2131	(2)(16)  Each agency shall designate at least one employee
2132	who shall serve as a contract administrator responsible for
2133	maintaining a contract file and financial information on all
2134	contractual services contracts and who shall serve as a liaison
2135	with the contract managers and the department.
2136	(3)(e)  The department shall develop Development of
2137	procedures to be used by an agency in maintaining a contract
2138	file for each contract which shall include, but not be limited
2139	to, all pertinent information relating to the contract during
2140	the preparatory stages; a copy of the solicitation;
2141	documentation relating to the solicitation process; opening of
2142	bids, proposals, or replies; evaluation and tabulation of bids,
2143	proposals, or replies; and determination and notice of award of
2144	contract.
2145	Section 30.  Section 287.34, Florida Statutes, is created
2146	to read:
2147	287.34  Approval of accounts; request for
2148	payment.--Agencies may not approve any account or request any
2149	Agencies may not approve any account or request any payment of
2150	any account for the procurement of any commodity or contractual
2151	service covered by a purchasing or contractual service rule
2152	except as authorized in the rule.
2153	Section 31.  Paragraphs (b) and (c) of subsection (2) of
2154	section 287.042, Florida Statutes, are transferred to section
2155	287.55, which is created, and amended to read:
2156	287.55  Bid protests.--
2157	(1)(b)  As an alternative to any provision in s.
2158	120.57(3)(c), the department or agency may proceed with the
2159	competitive solicitation or contract award process of a term
2160	contract when the secretary of the department, the agency head,
2161	or his or her designee sets forth in writing particular facts
2162	and circumstances which demonstrate that the delay incident to
2163	staying the solicitation or contract award process would be
2164	detrimental to the interests of the state. After the award of a
2165	contract resulting from a competitive solicitation in which a
2166	timely protest was received and in which the state did not
2167	prevail, the contract may be canceled and reawarded.
2168	(2)(c)  Any person who files an action protesting a
2169	decision or intended decision pertaining to contracts
2170	administered by the department, a water management district, or
2171	an agency pursuant to s. 120.57(3)(b) shall post with the
2172	department, the water management district, or the agency at the
2173	time of filing the formal written protest a bond payable to the
2174	department, the water management district, or agency in an
2175	amount equal to 1 percent of the estimated contract amount. For
2176	protests of decisions or intended decisions pertaining to
2177	exceptional purchases, the bond shall be in an amount equal to 1
2178	percent of the estimated contract amount for the exceptional
2179	purchase. The estimated contract amount shall be based upon the
2180	contract price submitted by the protestor or, if no contract
2181	price was submitted, the department, water management district,
2182	or agency shall estimate the contract amount based on factors
2183	including, but not limited to, the price of previous or existing
2184	contracts for similar commodities or contractual services, the
2185	amount appropriated by the Legislature for the contract, or the
2186	fair market value of similar commodities or contractual
2187	services. The agency shall provide the estimated contract amount
2188	to the vendor within 72 hours, excluding Saturdays, Sundays, and
2189	state holidays, after the filing of the notice of protest by the
2190	vendor. The estimated contract amount is not subject to protest
2191	pursuant to s. 120.57(3). The bond shall be conditioned upon the
2192	payment of all costs and charges that are adjudged against the
2193	protestor in the administrative hearing in which the action is
2194	brought and in any subsequent appellate court proceeding. In
2195	lieu of a bond, the department, the water management district,
2196	or agency may, in either case, accept a cashier's check,
2197	official bank check, or money order in the amount of the bond.
2198	If, after completion of the administrative hearing process and
2199	any appellate court proceedings, the department, water
2200	management district, or agency prevails, it shall recover all
2201	costs and charges which shall be included in the final order or
2202	judgment, excluding attorney's fees. This section shall not
2203	apply to protests filed by the Office of Supplier Diversity.
2204	Upon payment of such costs and charges by the protestor, the
2205	bond, cashier's check, official bank check, or money order shall
2206	be returned to the protestor. If, after the completion of the
2207	administrative hearing process and any appellate court
2208	proceedings, the protestor prevails, the protestor shall recover
2209	from the department, water management district, or agency all
2210	costs and charges which shall be included in the final order or
2211	judgment, excluding attorney's fees.
2212	Section 32.  Section 287.132, Florida Statutes, is
2213	renumbered as section 287.561, Florida Statutes, and amended to
2214	read:
2215	287.561 287.132  Legislative intent with respect to
2216	integrity of public contracting and purchasing
2217	process.--Recognizing that the preservation of the integrity of
2218	Recognizing that the preservation of the integrity of the public
2219	contracting and purchasing process of the state is vital and is
2220	a matter of interest to all the people of the state, the
2221	Legislature determines and declares that:
2222	(1)  The procedures of public entities for determining with
2223	whom they transact business exist to secure for the public the
2224	benefits of free, fair, and open competition among those persons
2225	whose conduct reflects good citizenship.
2226	(2)  Public employees must discharge their duties
2227	impartially so as to assure fair competitive access to
2228	governmental procurement by responsible vendors and contractors.
2229	Moreover, public employees should conduct themselves in such a
2230	manner as to foster public confidence in the integrity of the
2231	procurement process.
2232	(3)(2)  The opportunity to bid on public entity contracts
2233	or to supply goods and services to public entities or to
2234	otherwise transact business with public entities is a privilege,
2235	not a right.
2236	(4)(3)  In order to preserve the integrity of the public
2237	contracting and purchasing process, the privilege of transacting
2238	business with public entities should be denied to persons
2239	involved in certain crimes.
2240	(5)(4)  Persons involved in certain crimes should be denied
2241	the privilege of transacting business with public entities and
2242	the opportunity of obtaining economic benefit through the
2243	transaction of business of any kind with public entities.
2244
2245	To these ends, it is the intent of the Legislature to provide
2246	sufficient authority to the state, its departments and agencies,
2247	and political subdivisions to ensure the integrity of public
2248	contracting and purchasing.
2249	Section 33.  Section 287.133, Florida Statutes, is
2250	renumbered as section 287.562, Florida Statutes, and paragraph
2251	(f) of subsection (3) of said section is amended, to read:
2252	287.562 287.133  Public entity crime; denial or revocation
2253	of the right to transact business with public entities.--
2254	(3)
2255	(f)1.  A person on the convicted vendor list may petition
2256	for removal from the list no sooner than 6 months from the date
2257	a final order is entered disqualifying that person from the
2258	public purchasing and contracting process pursuant to this
2259	section, but may petition for removal at any time if the
2260	petition is based upon a reversal of the conviction on appellate
2261	review or pardon. The petition shall be filed with the
2262	department, and the proceeding shall be conducted pursuant to
2263	the procedures and requirements of this subsection.
2264	2.  A person may be removed from the convicted vendor list
2265	subject to such terms and conditions as may be prescribed by the
2266	administrative law judge upon a determination that removal is in
2267	the public interest. In determining whether removal would be in
2268	the public interest, the administrative law judge shall take
2269	into account give consideration to any relevant factors,
2270	including, but not limited to, the factors identified in
2271	subparagraph (e)3. Upon proof that a person's conviction has
2272	been reversed on appellate review or that he or she has been
2273	pardoned, the administrative law judge shall determine that
2274	removal of the person or an affiliate of that person from the
2275	convicted vendor list is in the public interest.
2276	3.  If a petition for removal is denied, the person or
2277	affiliate may not petition for another hearing on removal for a
2278	period of 9 months after the date of denial, unless the petition
2279	is based upon a reversal of the conviction on appellate review
2280	or a pardon. The department may petition for removal prior to
2281	the expiration of such period if, in its discretion, it
2282	determines that removal would be in the public interest.
2283	Section 34.  Subsections (15) and (16) of section 287.042,
2284	Florida Statutes, are transferred to section 287.57, Florida
2285	Statutes, which is created, and amended to read:
2286	287.57  Cooperative purchasing.--The department may:
2287	(1)(15)(a)  To Enter into joint agreements with
2288	governmental agencies, as defined in s. 163.3164(10), for the
2289	purpose of pooling funds for the purchase of commodities or
2290	information technology that can be used by multiple agencies.
2291	However, the department shall consult with the State Technology
2292	Office on joint agreements that involve the purchase of
2293	information technology. Agencies entering into joint purchasing
2294	agreements with the department or the State Technology Office
2295	shall authorize the department or the State Technology Office to
2296	contract for such purchases on their behalf.
2297	(b)  Each agency that has been appropriated or has existing
2298	funds for such purchases, shall, upon contract award by the
2299	department, transfer their portion of the funds into the
2300	department's Grants and Donations Trust Fund for payment by the
2301	department. These funds shall be transferred by the Executive
2302	Office of the Governor pursuant to the agency budget amendment
2303	request provisions in chapter 216.
2304	(c)  Agencies that sign such joint agreements are
2305	financially obligated for their portion of the agreed-upon
2306	funds. If any agency becomes more than 90 days delinquent in
2307	paying such funds, the department shall certify to the Chief
2308	Financial Officer the amount due, and the Chief Financial
2309	Officer shall transfer the amount due to the Grants and
2310	Donations Trust Fund of the department from any of the agency's
2311	available funds. The Chief Financial Officer shall report all
2312	such transfers and the reasons for such transfers to the
2313	Executive Office of the Governor and the legislative
2314	appropriations committees.
2315	(2)(16)(a)  To Evaluate contracts let by the Federal
2316	Government, another state, or a political subdivision for the
2317	provision of commodities and contractual contract services, and,
2318	when it is determined in writing to be cost-effective and in the
2319	best interest of the state, to enter into a written agreement
2320	authorizing an agency to make purchases under a contract
2321	approved by the department and let by the Federal Government,
2322	another state, or a political subdivision.
2323	(b)  For contracts pertaining to the provision of
2324	information technology, the State Technology Office, in
2325	consultation with the department, shall assess the technological
2326	needs of a particular agency, evaluate the contracts, and
2327	determine whether to enter into a written agreement with the
2328	letting federal, state, or political subdivision body to provide
2329	information technology for a particular agency.
2330	Section 35.  Section 287.16, Florida Statutes, is
2331	renumbered as section 287.65, Florida Statutes, and subsection
2332	(2) of said section is amended, to read:
2333	287.65 287.16  Powers and duties of department.--The
2334	Department of Management Services shall have the following
2335	powers, duties, and responsibilities:
2336	(2)  To establish and operate central facilities for the
2337	acquisition, disposal, operation, maintenance, repair, storage,
2338	supervision, control, and regulation of all state-owned or
2339	state-leased aircraft, watercraft, and motor vehicles and to
2340	operate any state facilities for those purposes. Acquisition may
2341	be by purchase, lease, loan, or in any other legal manner. The
2342	department may contract for the maintenance of motor vehicles.
2343	Section 36.  Section 287.161, Florida Statutes, is
2344	renumbered as section 287.655, Florida Statutes, and amended to
2345	read:
2346	287.655 287.161  Executive aircraft pool; assignment of
2347	aircraft; charge for transportation.--
2348	(1)  There is created within the Department of Management
2349	Services an executive aircraft pool consisting of state-owned or
2350	leased aircraft for the purpose of furnishing executive air
2351	travel. Such aircraft shall not be a model in excess of a two-
2352	engine jet. Aircraft included in the executive aircraft pool may
2353	not be specifically assigned to any department or agency on any
2354	basis.
2355	(2)  The Department of Management Services shall charge all
2356	persons receiving transportation from the executive aircraft
2357	pool a rate not less than the mileage allowance fixed by the
2358	Legislature for the use of privately owned vehicles. However,
2359	state employees traveling on a space-available basis may not be
2360	charged more than the vehicle mileage allowance.
2361	(3)  Fees collected for persons traveling by aircraft in
2362	the executive aircraft pool shall be deposited into the Bureau
2363	of Aircraft Trust Fund and shall be expended for fuel,
2364	maintenance, or other costs incurred to operate the aircraft
2365	management activities of the department. It is the intent of the
2366	Legislature that the executive aircraft pool be operated on a
2367	full cost-recovery basis, less available funds in accordance
2368	with rules adopted pursuant to s. 287.16.
2369	(4)  Notwithstanding the requirements of subsections (2)
2370	and (3) and for the 2003-2004 fiscal year only, the Department
2371	of Management Services shall charge all persons receiving
2372	transportation from the executive aircraft pool a rate not less
2373	than the mileage allowance fixed by the Legislature for the use
2374	of privately owned vehicles. Fees collected for persons
2375	traveling by aircraft in the executive aircraft pool shall be
2376	deposited into the Bureau of Aircraft Trust Fund and shall be
2377	expended for costs incurred to operate the aircraft management
2378	activities of the department. It is the intent of the
2379	Legislature that the executive aircraft pool be operated on a
2380	full cost recovery basis, less available funds. This subsection
2381	expires July 1, 2004.
2382	Section 37.  Section 287.17, Florida Statutes, is
2383	renumbered as section 287.66, Florida Statutes, and subsection
2384	(5) of said section is amended, to read:
2385	287.66 287.17  Limitation on use of motor vehicles and
2386	aircraft.--
2387	(5)  Each state agency's head shall, by December 31 of each
2388	year, 2000, conduct a review of motor vehicle utilization with
2389	oversight from the agency's inspector general. This review shall
2390	consist of two parts. The first part of the review shall
2391	determine the number of miles that each assigned motor vehicle
2392	has been driven on official state business in the past fiscal
2393	year. Commuting mileage shall be excluded from calculating
2394	vehicle use. The purpose of this review is to determine whether
2395	employees with assigned motor vehicles are driving the vehicles
2396	a sufficient number of miles to warrant continued vehicle
2397	assignment. The second part of the review shall identify
2398	employees who have driven personal vehicles extensively on state
2399	business in the past fiscal year. The purpose of this review is
2400	to determine whether it would be cost-effective to provide state
2401	motor vehicles to such employees. In making this determination,
2402	the inspector general shall use the break-even mileage criteria
2403	developed by the Department of Management Services. A copy of
2404	the review shall be presented to the department Office of
2405	Program Policy Analysis and Government Accountability.
2406	Section 38.  The section number, catchline, and subsections
2407	(21) and (22) of section 287.057, Florida Statutes, are amended
2408	to read:
2409	287.057  Procurement of commodities or contractual
2410	services.--
2411	(21)  Nothing in this section shall affect the validity or
2412	effect of any contract in existence on October 1, 1990.
2413	(22)  An agency may contract for services with any
2414	independent, nonprofit college or university which is located
2415	within the state and is accredited by the Southern Association
2416	of Colleges and Schools, on the same basis as it may contract
2417	with any state university and college.
2418	Section 39.  Subsection (3) of section 119.0721, Florida
2419	Statutes, is amended to read:
2420	119.0721  Social security number exemption.--
2421	(3)  An agency shall not deny a commercial entity engaged
2422	in the performance of a commercial activity, which for purposes
2423	of this subsection means an activity that provides a product or
2424	service that is available from a private source, as defined in
2425	s. 14.203 or its agents, employees, or contractors, access to
2426	social security numbers, provided the social security numbers
2427	will be used only in the normal course of business for
2428	legitimate business purposes, and provided the commercial entity
2429	makes a written request for social security numbers, verified as
2430	provided in s. 92.525, legibly signed by an authorized officer,
2431	employee, or agent of the commercial entity. The verified
2432	written request must contain the commercial entity's name,
2433	business mailing and location addresses, business telephone
2434	number, and a statement of the specific purposes for which it
2435	needs the social security numbers and how the social security
2436	numbers will be used in the normal course of business for
2437	legitimate business purposes. The aggregate of these requests
2438	shall serve as the basis for the agency report required in
2439	subsection (7). An agency may request any other information as
2440	may be reasonably necessary to verify the identity of the entity
2441	requesting the social security numbers and the specific purposes
2442	for which such numbers will be used; however, an agency has no
2443	duty to inquire beyond the information contained in the verified
2444	written request. A legitimate business purpose includes
2445	verification of the accuracy of personal information received by
2446	a commercial entity in the normal course of its business; use in
2447	a civil, criminal, or administrative proceeding; use for
2448	insurance purposes; use in law enforcement and investigation of
2449	crimes; use in identifying and preventing fraud; use in
2450	matching, verifying, or retrieving information; and use in
2451	research activities. A legitimate business purpose does not
2452	include the display or bulk sale of social security numbers to
2453	the general public or the distribution of such numbers to any
2454	customer that is not identifiable by the distributor.
2455	Section 40.  Sections 14.203, 283.30, 283.31, 287.32,
2456	283.33, 283.34, 283.43, 283.56, 287.0731, and 287.1345, Florida
2457	Statutes, are repealed.
2458	Section 41.  This act shall take effect July 1, 2004.

CODING: Words stricken are deletions; words underlined are additions.