Florida Senate - 2012                             CS for SB 2036
       By the Committees on Rules; and Rules
       595-02201-12                                          20122036c1
    1                        A bill to be entitled                      
    2         An act relating to the outsourcing or privatization of
    3         agency functions; amending s. 216.023, F.S.; providing
    4         that certain information relating to the outsourcing
    5         or privatization of an agency function which is
    6         expressly required by law is not required to be
    7         included in the agency’s legislative budget request
    8         until after the contract for such function is
    9         executed; amending s. 287.0571, F.S.; requiring an
   10         agency to publicly publish the business case prepared
   11         for an outsourcing project on the agency’s website;
   12         amending s. 944.105, F.S.; providing that certain
   13         requirements that apply to Department of Corrections’
   14         contracts do not apply to contracts for outsourcing or
   15         privatizing the operation and maintenance of
   16         correctional facilities which are expressly required
   17         by law; providing an effective date.
   19  Be It Enacted by the Legislature of the State of Florida:
   21         Section 1. Paragraph (a) of subsection (4) of section
   22  216.023, Florida Statutes, is amended to read:
   23         216.023 Legislative budget requests to be furnished to
   24  Legislature by agencies.—
   25         (4)(a) The legislative budget request must contain for each
   26  program must contain:
   27         1. The constitutional or statutory authority for a program,
   28  a brief purpose statement, and approved program components.
   29         2. Information on expenditures for 3 fiscal years (actual
   30  prior-year expenditures, current-year estimated expenditures,
   31  and agency budget requested expenditures for the next fiscal
   32  year) by appropriation category.
   33         3. Details on trust funds and fees.
   34         4. The total number of positions (authorized, fixed, and
   35  requested).
   36         5. An issue narrative describing and justifying changes in
   37  amounts and positions requested for current and proposed
   38  programs for the next fiscal year.
   39         6. Information resource requests.
   40         7. Supporting information, including applicable cost
   41  benefit analyses, business case analyses, performance
   42  contracting procedures, service comparisons, and impacts on
   43  performance standards for any agency request to outsource or
   44  privatize agency functions. The cost-benefit and business case
   45  analyses must include an assessment of the impact on each
   46  affected activity from those identified in accordance with
   47  paragraph (b). Performance standards must include standards for
   48  each affected activity and be expressed in terms of the
   49  associated unit of activity. This subparagraph does not apply to
   50  the outsourcing or privatization of agency functions expressly
   51  required by the General Appropriation Act or any other law until
   52  the first legislative budget request submitted by the agency
   53  after the contract for the outsourcing and privatization has
   54  been executed.
   55         8. An evaluation of any major outsourcing and privatization
   56  initiatives undertaken during the last 5 fiscal years having
   57  aggregate expenditures exceeding $10 million during the term of
   58  the contract. The evaluation must shall include an assessment of
   59  contractor performance, a comparison of anticipated service
   60  levels to actual service levels, and a comparison of estimated
   61  savings to actual savings achieved. Consolidated reports issued
   62  by the Department of Management Services may be used to satisfy
   63  this requirement. This subparagraph does not apply to the
   64  outsourcing or privatization of agency functions expressly
   65  required by the General Appropriation Act or any other law until
   66  the first legislative budget request submitted by the agency
   67  after the contract for the outsourcing and privatization has
   68  been executed.
   69         9. Supporting information for any proposed consolidated
   70  financing of deferred-payment commodity contracts including
   71  guaranteed energy performance savings contracts. Supporting
   72  information must also include narrative describing and
   73  justifying the need, baseline for current costs, estimated cost
   74  savings, projected equipment purchases, estimated contract
   75  costs, and return on investment calculation.
   76         10. For projects that are requested by an agency and that
   77  exceed $10 million in total cost, the statutory reference of the
   78  existing policy or the proposed substantive policy that
   79  establishes and defines the project’s governance structure,
   80  planned scope, main business objectives that must be achieved,
   81  and estimated completion timeframes. Information technology
   82  budget requests for the continuance of existing hardware and
   83  software maintenance agreements, renewal of existing software
   84  licensing agreements, or the replacement of desktop units with
   85  new technology that is similar to the technology currently in
   86  use are exempt from this requirement. This subparagraph does not
   87  apply to the outsourcing or privatization of agency functions
   88  expressly required by the General Appropriation Act or any other
   89  law until the first legislative budget request submitted by the
   90  agency after the contract for the outsourcing and privatization
   91  has been executed.
   92         Section 2. Subsection (4) of section 287.0571, Florida
   93  Statutes, is amended to read:
   94         287.0571 Business case to outsource; applicability.—
   95         (4) An agency must shall complete a business case for any
   96  outsourcing project that has an expected cost in excess of $10
   97  million within a single fiscal year. The business case shall be
   98  submitted pursuant to s. 216.023. The business case shall be
   99  prepared and made publicly available on the agency’s website
  100  before the issuance as part of the solicitation but is not
  101  subject to challenge and must shall include the following:
  102         (a) A detailed description of the service or activity for
  103  which the outsourcing is proposed.
  104         (b) A description and analysis of the state agency’s
  105  current performance, based on existing performance metrics if
  106  the state agency is currently performing the service or
  107  activity.
  108         (c) The goals desired to be achieved through the proposed
  109  outsourcing and the rationale for such goals.
  110         (d) A citation to the existing or proposed legal authority
  111  for outsourcing the service or activity.
  112         (e) A description of available options for achieving the
  113  goals. If state employees are currently performing the service
  114  or activity, at least one option involving maintaining state
  115  provision of the service or activity must shall be included.
  116         (f) An analysis of the advantages and disadvantages of each
  117  option, including, at a minimum, potential performance
  118  improvements and risks.
  119         (g) A description of the current market for the contractual
  120  services that are under consideration for outsourcing.
  121         (h) A cost-benefit analysis documenting the direct and
  122  indirect specific baseline costs, savings, and qualitative and
  123  quantitative benefits involved in or resulting from the
  124  implementation of the recommended option or options. Such
  125  analysis must specify the schedule that, at a minimum, must be
  126  adhered to in order to achieve the estimated savings. All
  127  elements of cost must be clearly identified in the cost-benefit
  128  analysis, described in the business case, and supported by
  129  applicable records and reports. The state agency head shall
  130  attest that, based on the data and information underlying the
  131  business case, to the best of his or her knowledge, all
  132  projected costs, savings, and benefits are valid and achievable.
  133  As used in this section, the term “cost” means the reasonable,
  134  relevant, and verifiable cost, which may include, but is not
  135  limited to, elements such as personnel, materials and supplies,
  136  services, equipment, capital depreciation, rent, maintenance and
  137  repairs, utilities, insurance, personnel travel, overhead, and
  138  interim and final payments. The appropriate elements shall
  139  depend on the nature of the specific initiative. As used in this
  140  paragraph, the term “savings” means the difference between the
  141  direct and indirect actual annual baseline costs compared to the
  142  projected annual cost for the contracted functions or
  143  responsibilities in any succeeding state fiscal year during the
  144  term of the contract.
  145         (i) A description of differences among current state agency
  146  policies and processes and, as appropriate, a discussion of
  147  options for or a plan to standardize, consolidate, or revise
  148  current policies and processes, if any, to reduce the
  149  customization of any proposed solution that would otherwise be
  150  required.
  151         (j) A description of the specific performance standards
  152  that must, at a minimum, must be met to ensure adequate
  153  performance.
  154         (k) The projected timeframe for key events from the
  155  beginning of the procurement process through the expiration of a
  156  contract.
  157         (l) A plan to ensure compliance with the public records
  158  law.
  159         (m) A specific and feasible contingency plan addressing
  160  contractor nonperformance and a description of the tasks
  161  involved in and costs required for its implementation.
  162         (n) A state agency’s transition plan for addressing changes
  163  in the number of agency personnel, affected business processes,
  164  employee transition issues, and communication with affected
  165  stakeholders, such as agency clients and the public. The
  166  transition plan must contain a reemployment and retraining
  167  assistance plan for employees who are not retained by the state
  168  agency or employed by the contractor.
  169         (o) A plan for ensuring access by persons with disabilities
  170  in compliance with applicable state and federal law.
  171         Section 3. Subsection (9) is added to section 944.105,
  172  Florida Statutes, to read:
  173         944.105 Contractual arrangements with private entities for
  174  operation and maintenance of correctional facilities and
  175  supervision of inmates.—
  176         (9) This section does not apply to a contract for the
  177  outsourcing or privatization of the operation and maintenance of
  178  correctional facilities expressly directed to be outsourced or
  179  privatized by the General Appropriation Act or any other law.
  180         Section 4. This act shall take effect July 1, 2012.