CS/HB 5611

1	A bill to be entitled
2	An act relating to the Department of Management Services;
3	amending s. 287.042, F.S.; providing that fees collected
4	by the department for the use of its electronic
5	information services in excess of the obligations and
6	encumbrances to cover the department's costs of providing
7	the services shall be calculated annually and transferred
8	to the General Revenue Fund; amending s. 287.057, F.S.;
9	providing that fees collected by the department for the
10	use of the services of its online procurement systems in
11	excess of the obligations and encumbrances to cover the
12	department's costs of providing the services shall be
13	calculated annually and transferred to the General Revenue
14	Fund; amending s. 287.05721, F.S.; repealing the
15	definition of "council" as it relates to the Council on
16	Efficient Government; repealing s. 287.0573, F.S.,
17	relating to creation of the Council on Efficient
18	Government within the department; amending s. 287.0574,
19	F.S.; conforming provisions to the elimination of the
20	Council on Efficient Government; requiring that a business
21	case be submitted in the form and manner required by the
22	budget instructions; providing an effective date.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  Paragraph (h) of subsection (1) of section
27	287.042, Florida Statutes, is amended to read:
28	287.042  Powers, duties, and functions.-The department
29	shall have the following powers, duties, and functions:
30	(1)
31	(h)1.  The department may collect fees for the use of its
32	electronic information services. The fees may be imposed on an
33	individual transaction basis or as a fixed subscription for a
34	designated period of time. At a minimum, the fees shall be
35	determined in an amount sufficient to cover the department's
36	projected costs of the services, including overhead in
37	accordance with the policies of the Department of Management
38	Services for computing its administrative assessment. All fees
39	collected under this paragraph shall be deposited in the
40	Operating Trust Fund for disbursement as provided by law.
41	2.  Effective July 1, 2010, any fees collected pursuant to
42	subparagraph 1. and remaining in the Operating Trust Fund in
43	excess of the obligations and encumbrances to cover the
44	department's costs of providing services pursuant to
45	subparagraph 1. shall be calculated as of June 5 each year and
46	transferred to the General Revenue Fund before June 30 of each
47	year.
48	Section 2.  Paragraph (c) of subsection (23) of section
49	287.057, Florida Statutes, is amended to read:
50	287.057  Procurement of commodities or contractual
51	services.-
52	(23)  The department, in consultation with the Agency for
53	Enterprise Information Technology and the Comptroller, shall
54	develop a program for online procurement of commodities and
55	contractual services. To enable the state to promote open
56	competition and to leverage its buying power, agencies shall
57	participate in the online procurement program, and eligible
58	users may participate in the program. Only vendors prequalified
59	as meeting mandatory requirements and qualifications criteria
60	may participate in online procurement.
61	(c)  The department may impose and shall collect all fees
62	for the use of the online procurement systems.
63	1.  The fees may be imposed on an individual transaction
64	basis or as a fixed percentage of the cost savings generated. At
65	a minimum, the fees must be set in an amount sufficient to cover
66	the projected costs of the services, including administrative
67	and project service costs in accordance with the policies of the
68	department.
69	2.  If the department contracts with a provider for online
70	procurement, the department, pursuant to appropriation, shall
71	compensate the provider from the fees after the department has
72	satisfied all ongoing costs. The provider shall report
73	transaction data to the department each month so that the
74	department may determine the amount due and payable to the
75	department from each vendor.
76	3.  All fees that are due and payable to the state on a
77	transactional basis or as a fixed percentage of the cost savings
78	generated are subject to s. 215.31 and must be remitted within
79	40 days after receipt of payment for which the fees are due. For
80	fees that are not remitted within 40 days, the vendor shall pay
81	interest at the rate established under s. 55.03(1) on the unpaid
82	balance from the expiration of the 40-day period until the fees
83	are remitted.
84	4.  All fees and surcharges collected under this paragraph
85	shall be deposited in the Operating Trust Fund for disbursement
86	as provided by law.
87	5.  Effective July 1, 2010, any fees collected pursuant to
88	subparagraph 1. and remaining in the Operating Trust Fund in
89	excess of the obligations and encumbrances to cover the
90	department's costs of providing services pursuant to
91	subparagraph 1. shall be calculated as of June 5 each year and
92	transferred to the General Revenue Fund before June 30 of each
93	year.
94	Section 3.  Section 287.05721, Florida Statutes, is amended
95	to read:
96	287.05721  Definitions.-As used in ss. 287.0571-287.0574,
97	the term:
98	(1)  "Council" means the Council on Efficient Government.
99	(2)  "outsource" means the process of contracting with a
100	vendor to provide a service as defined in s. 216.011(1)(f), in
101	whole or in part, or an activity as defined in s.
102	216.011(1)(rr), while a state agency retains the responsibility
103	and accountability for the service or activity and there is a
104	transfer of management responsibility for the delivery of
105	resources and the performance of those resources.
106	Section 4.  Section 287.0573, Florida Statutes, is
107	repealed.
108	Section 5.  Subsections (1) through (4) of section
109	287.0574, Florida Statutes, are amended to read:
110	287.0574  Business cases to outsource; review and analysis;
111	requirements.-
112	(1)  A business case to outsource having a projected cost
113	exceeding $10 million in any fiscal year shall require:
114	(a)  An initial business case analysis conducted by the
115	state agency and submitted to the council, the Governor, the
116	President of the Senate, and the Speaker of the House of
117	Representatives at least 60 days before a solicitation is
118	issued. The council shall evaluate the business case analysis
119	and submit an advisory report to the state agency, the Governor,
120	the President of the Senate, and the Speaker of the House of
121	Representatives when the advisory report is completed, but at
122	least 30 days before the agency issues the solicitation.
123	(b)  A final business case analysis conducted by the state
124	agency and submitted after the conclusion of any negotiations,
125	at least 30 days before execution of a contract, to the council,
126	the Governor, the President of the Senate, and the Speaker of
127	the House of Representatives.
128	(2)  A proposal to outsource having a projected cost that
129	ranges from $1 million to $10 million in any fiscal year shall
130	require:
131	(a)  An initial business case analysis conducted by the
132	state agency and submission of the business case, at least 30
133	days before issuing a solicitation, to the council, the
134	Governor, the President of the Senate, and the Speaker of the
135	House of Representatives.
136	(b)  A final business case analysis conducted by the state
137	agency and submitted after the conclusion of any negotiations,
138	at least 30 days before execution of a contract, to the council,
139	the Governor, the President of the Senate, and the Speaker of
140	the House of Representatives.
141	(3)  A business case to outsource having a projected cost
142	that is less than $1 million in any fiscal year shall require a
143	final business case analysis conducted by the state agency after
144	the conclusion of any negotiations and provided at least 30 days
145	before execution of a contract to the council. The council shall
146	provide such business cases in its annual report to the
147	Legislature.
148	(4)  For any proposed outsourcing, the state agency shall
149	develop a business case that justifies the proposal to
150	outsource. In order to reduce any administrative burden, the
151	council may allow a state agency shall to submit the business
152	case in the form and manner required by the budget instructions
153	issued pursuant to s. 216.023(1), (2), and (4)(a)7., augmented
154	with additional information if necessary, to ensure that the
155	requirements of this section are met. The business case is not
156	subject to challenge or protest pursuant to chapter 120. The
157	business case must include, but need not be limited to:
158	(a)  A detailed description of the service or activity for
159	which the outsourcing is proposed.
160	(b)  A description and analysis of the state agency's
161	current performance, based on existing performance metrics if
162	the state agency is currently performing the service or
163	activity.
164	(c)  The goals desired to be achieved through the proposed
165	outsourcing and the rationale for such goals.
166	(d)  A citation to the existing or proposed legal authority
167	for outsourcing the service or activity.
168	(e)  A description of available options for achieving the
169	goals. If state employees are currently performing the service
170	or activity, at least one option involving maintaining state
171	provision of the service or activity shall be included.
172	(f)  An analysis of the advantages and disadvantages of
173	each option, including, at a minimum, potential performance
174	improvements and risks.
175	(g)  A description of the current market for the
176	contractual services that are under consideration for
177	outsourcing.
178	(h)  A cost-benefit analysis documenting the direct and
179	indirect specific baseline costs, savings, and qualitative and
180	quantitative benefits involved in or resulting from the
181	implementation of the recommended option or options. Such
182	analysis must specify the schedule that, at a minimum, must be
183	adhered to in order to achieve the estimated savings. All
184	elements of cost must be clearly identified in the cost-benefit
185	analysis, described in the business case, and supported by
186	applicable records and reports. The state agency head shall
187	attest that, based on the data and information underlying the
188	business case, to the best of his or her knowledge, all
189	projected costs, savings, and benefits are valid and achievable.
190	As used in this section, the term "cost" means the reasonable,
191	relevant, and verifiable cost, which may include, but is not
192	limited to, elements such as personnel, materials and supplies,
193	services, equipment, capital depreciation, rent, maintenance and
194	repairs, utilities, insurance, personnel travel, overhead, and
195	interim and final payments. The appropriate elements shall
196	depend on the nature of the specific initiative. As used in this
197	section, the term "savings" means the difference between the
198	direct and indirect actual annual baseline costs compared to the
199	projected annual cost for the contracted functions or
200	responsibilities in any succeeding state fiscal year during the
201	term of the contract.
202	(i)  A description of differences among current state
203	agency policies and processes and, as appropriate, a discussion
204	of options for or a plan to standardize, consolidate, or revise
205	current policies and processes, if any, to reduce the
206	customization of any proposed solution that would otherwise be
207	required.
208	(j)  A description of the specific performance standards
209	that must, at a minimum, be met to ensure adequate performance.
210	(k)  The projected timeframe for key events from the
211	beginning of the procurement process through the expiration of a
212	contract.
213	(l)  A plan to ensure compliance with the public records
214	law.
215	(m)  A specific and feasible contingency plan addressing
216	contractor nonperformance and a description of the tasks
217	involved in and costs required for its implementation.
218	(n)  A state agency's transition plan for addressing
219	changes in the number of agency personnel, affected business
220	processes, employee transition issues, and communication with
221	affected stakeholders, such as agency clients and the public.
222	The transition plan must contain a reemployment and retraining
223	assistance plan for employees who are not retained by the state
224	agency or employed by the contractor.
225	(o)  A plan for ensuring access by persons with
226	disabilities in compliance with applicable state and federal
227	law.
228	(p)  A description of legislative and budgetary actions
229	necessary to accomplish the proposed outsourcing.
230	Section 6.  This act shall take effect July 1, 2010.

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