HB 1473

1	A bill to be entitled
2	An act relating to procurement of contractual services by
3	a state agency; amending s. 287.057, F.S.; providing that
4	contracts to outsource human services related to mental
5	health, substance abuse, or child welfare are not subject
6	to competitive solicitation requirements; creating s.
7	287.0575, F.S.; defining "material adverse financial
8	impact"; providing requirements with respect to outsourced
9	human services contracts related to mental health,
10	substance abuse, or child welfare; requiring a contracting
11	agency to negotiate a contract amendment with a human
12	services provider if a material change to the scope of the
13	contract is imposed upon a service provider and compliance
14	with such change will have a material adverse financial
15	impact on the service provider; providing an effective
16	date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Paragraph (f) of subsection (5) of section
21	287.057, Florida Statutes, is amended to read:
22	287.057  Procurement of commodities or contractual
23	services.--
24	(5)  When the purchase price of commodities or contractual
25	services exceeds the threshold amount provided in s. 287.017 for
26	CATEGORY TWO, no purchase of commodities or contractual services
27	may be made without receiving competitive sealed bids,
28	competitive sealed proposals, or competitive sealed replies
29	unless:
30	(f)  The following contractual services and commodities are
31	not subject to the competitive-solicitation requirements of this
32	section:
33	1.  Artistic services.
34	2.  Academic program reviews.
35	3.  Lectures by individuals.
36	4.  Auditing services.
37	5.  Legal services, including attorney, paralegal, expert
38	witness, appraisal, or mediator services.
39	6.  Health services involving examination, diagnosis,
40	treatment, prevention, medical consultation, or administration.
41	7.  Services provided to persons with mental or physical
42	disabilities by not-for-profit corporations which have obtained
43	exemptions under the provisions of s. 501(c)(3) of the United
44	States Internal Revenue Code or when such services are governed
45	by the provisions of Office of Management and Budget Circular A-
46	122. However, in acquiring such services, the agency shall
47	consider the ability of the vendor, past performance,
48	willingness to meet time requirements, and price.
49	8.  Medicaid services delivered to an eligible Medicaid
50	recipient by a health care provider who has not previously
51	applied for and received a Medicaid provider number from the
52	Agency for Health Care Administration. However, this exception
53	shall be valid for a period not to exceed 90 days after the date
54	of delivery to the Medicaid recipient and shall not be renewed
55	by the agency.
56	9.  Family placement services.
57	10.  Prevention services related to mental health,
58	including drug abuse prevention programs, child abuse prevention
59	programs, and shelters for runaways, operated by not-for-profit
60	corporations. However, in acquiring such services, the agency
61	shall consider the ability of the vendor, past performance,
62	willingness to meet time requirements, and price.
63	11.  Training and education services provided to injured
64	employees pursuant to s. 440.491(6).
65	12.  Contracts entered into pursuant to s. 337.11.
66	13.  Services or commodities provided by governmental
67	agencies.
68	14.  Contracts to outsource human services related to
69	mental health, substance abuse, or child welfare.
70	Section 2.  Section 287.0575, Florida Statutes, is created
71	to read:
72	287.0575  Outsourced contracts for human services related
73	to mental health, substance abuse, or child welfare.--
74	(1)  For the purposes of this section, "material adverse
75	financial impact" means:
76	(a)  An increase in the reasonable costs to the contractor
77	in performing the contract of 15 percent of the maximum
78	obligation amount or unit price of the contract; or
79	(b)  An action that affects the core purpose and primary
80	intent of the contract.
81	(2)  Contracts to outsource human services related to
82	mental health, substance abuse, or child welfare shall:
83	(a)  Provide that, in the event that a material change to
84	the scope of the contract is imposed upon a service provider and
85	compliance with such change will have a material adverse
86	financial impact on the service provider, the contracting agency
87	shall negotiate a contract amendment with the service provider
88	to increase the maximum obligation amount or unit price of the
89	contract to offset the material adverse financial impact of the
90	change, provided the service provider furnishes evidence to the
91	contracting agency of such material adverse financial impact
92	along with a request to renegotiate the contract based on the
93	proposed change.
94	(b)  Ensure that payment will be made on all items not
95	under dispute and that in no event will payment be withheld on
96	undisputed issues pending the resolution of disputed issues.
97	(c)  Provide that any dispersed funds that remain
98	unexpended during the contract term be considered as authorized
99	revenue for the purposes of cash flow, program expansion and
100	development, and administrative costs.
101	(d)  Specify an exact number of agency monitoring visits
102	based on the performance of the managing entity or service
103	provider for the contracted year to ensure that appropriate
104	oversight will occur without impeding efficient provision of
105	services. Monitoring by multiple agencies shall be combined so
106	that interruptions to the agency and to the services provided
107	are minimized.
108	Section 3.  This act shall take effect July 1, 2008.

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