HB 825

1	A bill to be entitled
2	An act relating to local bids and contracts for public
3	construction works; amending s. 255.20, F.S.;
4	eliminating specified conditions under which a local
5	government is exempt from the requirement to
6	competitively award contracts; providing an effective
7	date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Paragraph (c) of subsection (1) of section
12	255.20, Florida Statutes, is amended to read:
13	255.20  Local bids and contracts for public construction
14	works; specification of state-produced lumber.-
15	(1)  A county, municipality, special district as defined in
16	chapter 189, or other political subdivision of the state seeking
17	to construct or improve a public building, structure, or other
18	public construction works must competitively award to an
19	appropriately licensed contractor each project that is estimated
20	in accordance with generally accepted cost-accounting principles
21	to cost more than $300,000. For electrical work, the local
22	government must competitively award to an appropriately licensed
23	contractor each project that is estimated in accordance with
24	generally accepted cost-accounting principles to cost more than
25	$75,000. As used in this section, the term "competitively award"
26	means to award contracts based on the submission of sealed bids,
27	proposals submitted in response to a request for proposal,
28	proposals submitted in response to a request for qualifications,
29	or proposals submitted for competitive negotiation. This
30	subsection expressly allows contracts for construction
31	management services, design/build contracts, continuation
32	contracts based on unit prices, and any other contract
33	arrangement with a private sector contractor permitted by any
34	applicable municipal or county ordinance, by district
35	resolution, or by state law. For purposes of this section, cost
36	includes the cost of all labor, except inmate labor, and the
37	cost of equipment and materials to be used in the construction
38	of the project. Subject to the provisions of subsection (3), the
39	county, municipality, special district, or other political
40	subdivision may establish, by municipal or county ordinance or
41	special district resolution, procedures for conducting the
42	bidding process.
43	(c)  The provisions of this subsection do not apply:
44	1.  If the project is undertaken to replace, reconstruct,
45	or repair an existing public building, structure, or other
46	public construction works damaged or destroyed by a sudden
47	unexpected turn of events such as an act of God, riot, fire,
48	flood, accident, or other urgent circumstances, and such damage
49	or destruction creates:
50	a.  An immediate danger to the public health or safety;
51	b.  Other loss to public or private property which requires
52	emergency government action; or
53	c.  An interruption of an essential governmental service.
54	2.  If, after notice by publication in accordance with the
55	applicable ordinance or resolution, the governmental entity does
56	not receive any responsive bids or proposals.
57	3.  To construction, remodeling, repair, or improvement to
58	a public electric or gas utility system if such work on the
59	public utility system is performed by personnel of the system.
60	4.  To construction, remodeling, repair, or improvement by
61	a utility commission whose major contracts are to construct and
62	operate a public electric utility system.
63	5.  If the project is undertaken as repair or maintenance
64	of an existing public facility. For the purposes of this
65	paragraph, the term "repair" means a corrective action to
66	restore an existing public facility to a safe and functional
67	condition and the term "maintenance" means a preventive or
68	corrective action to maintain an existing public facility in an
69	operational state or to preserve the facility from failure or
70	decline. Repair or maintenance includes activities that are
71	necessarily incidental to repairing or maintaining the facility.
72	Repair or maintenance does not include the construction of any
73	new building, structure, or other public construction works or
74	any substantial addition, extension, or upgrade to an existing
75	public facility. Such additions, extensions, or upgrades shall
76	be considered substantial if the estimated cost of the
77	additions, extensions, or upgrades included as part of the
78	repair or maintenance project exceeds the threshold amount in
79	subsection (1) and exceeds 20 percent of the estimated total
80	cost of the repair or maintenance project using generally
81	accepted cost-accounting principles that fully account for all
82	costs associated with performing and completing the work,
83	including employee compensation and benefits, equipment cost and
84	maintenance, insurance costs, and materials. An addition,
85	extension, or upgrade shall not be considered substantial if it
86	is undertaken pursuant to the conditions specified in
87	subparagraph 1. Repair and maintenance projects and any related
88	additions, extensions, or upgrades may not be divided into
89	multiple projects for the purpose of evading the requirements of
90	this subparagraph.
91	6.  If the project is undertaken exclusively as part of a
92	public educational program.
93	7.  If the funding source of the project will be diminished
94	or lost because the time required to competitively award the
95	project after the funds become available exceeds the time within
96	which the funding source must be spent.
97	8.  If the local government competitively awarded a project
98	to a private sector contractor and the contractor abandoned the
99	project before completion or the local government terminated the
100	contract.
101	9.  If the governing board of the local government complies
102	with all of the requirements of this subparagraph, conducts a
103	public meeting under s. 286.011 after public notice, and finds
104	by majority vote of the governing board that it is in the
105	public's best interest to perform the project using its own
106	services, employees, and equipment. The public notice must be
107	published at least 21 days before the date of the public meeting
108	at which the governing board takes final action. The notice must
109	identify the project, the components and scope of the work, and
110	the estimated cost of the project using generally accepted cost-
111	accounting principles that fully account for all costs
112	associated with performing and completing the work, including
113	employee compensation and benefits, equipment cost and
114	maintenance, insurance costs, and materials. The notice must
115	specify that the purpose for the public meeting is to consider
116	whether it is in the public's best interest to perform the
117	project using the local government's own services, employees,
118	and equipment. Upon publication of the public notice and for 21
119	days thereafter, the local government shall make available for
120	public inspection, during normal business hours and at a
121	location specified in the public notice, a detailed itemization
122	of each component of the estimated cost of the project and
123	documentation explaining the methodology used to arrive at the
124	estimated cost. At the public meeting, any qualified contractor
125	or vendor who could have been awarded the project had the
126	project been competitively bid shall be provided with a
127	reasonable opportunity to present evidence to the governing
128	board regarding the project and the accuracy of the local
129	government's estimated cost of the project. In deciding whether
130	it is in the public's best interest for the local government to
131	perform a project using its own services, employees, and
132	equipment, the governing board must consider the estimated cost
133	of the project and the accuracy of the estimated cost in light
134	of any other information that may be presented at the public
135	meeting and whether the project requires an increase in the
136	number of government employees or an increase in capital
137	expenditures for public facilities, equipment, or other capital
138	assets. The local government may further consider the impact on
139	local economic development, the impact on small and minority
140	business owners, the impact on state and local tax revenues,
141	whether the private sector contractors provide health insurance
142	and other benefits equivalent to those provided by the local
143	government, and any other factor relevant to what is in the
144	public's best interest.
145	9.10.  If the governing board of the local government
146	determines upon consideration of specific substantive criteria
147	that it is in the best interest of the local government to award
148	the project to an appropriately licensed private sector
149	contractor pursuant to administrative procedures established by
150	and expressly set forth in a charter, ordinance, or resolution
151	of the local government adopted before July 1, 1994. The
152	criteria and procedures must be set out in the charter,
153	ordinance, or resolution and must be applied uniformly by the
154	local government to avoid awarding a project in an arbitrary or
155	capricious manner. This exception applies only if all of the
156	following occur:
157	a.  The governing board of the local government, after
158	public notice, conducts a public meeting under s. 286.011 and
159	finds by a two-thirds vote of the governing board that it is in
160	the public's best interest to award the project according to the
161	criteria and procedures established by charter, ordinance, or
162	resolution. The public notice must be published at least 14 days
163	before the date of the public meeting at which the governing
164	board takes final action. The notice must identify the project,
165	the estimated cost of the project, and specify that the purpose
166	for the public meeting is to consider whether it is in the
167	public's best interest to award the project using the criteria
168	and procedures permitted by the preexisting charter, ordinance,
169	or resolution.
170	b.  The project is to be awarded by any method other than a
171	competitive selection process, and the governing board finds
172	evidence that:
173	(I)  There is one appropriately licensed contractor who is
174	uniquely qualified to undertake the project because that
175	contractor is currently under contract to perform work that is
176	affiliated with the project; or
177	(II)  The time to competitively award the project will
178	jeopardize the funding for the project, materially increase the
179	cost of the project, or create an undue hardship on the public
180	health, safety, or welfare.
181	c.  The project is to be awarded by any method other than a
182	competitive selection process, and the published notice clearly
183	specifies the ordinance or resolution by which the private
184	sector contractor will be selected and the criteria to be
185	considered.
186	d.  The project is to be awarded by a method other than a
187	competitive selection process, and the architect or engineer of
188	record has provided a written recommendation that the project be
189	awarded to the private sector contractor without competitive
190	selection, and the consideration by, and the justification of,
191	the government body are documented, in writing, in the project
192	file and are presented to the governing board prior to the
193	approval required in this paragraph.
194	10.11.  To projects subject to chapter 336.
195	Section 2.  This act shall take effect July 1, 2012.

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