Florida Senate - 2024                       CS for CS for SB 656
       
       
        
       By the Appropriations Committee on Agriculture, Environment, and
       General Government; the Committee on Governmental Oversight and
       Accountability; and Senator DiCeglie
       
       
       
       601-03254-24                                           2024656c2
    1                        A bill to be entitled                      
    2         An act relating to continuing contracts; amending s.
    3         255.103, F.S.; revising the maximum estimated
    4         construction cost of construction projects for which a
    5         governmental entity may enter into a continuing
    6         contract; requiring the Department of Management
    7         Services, beginning on a specified date, to adjust the
    8         maximum amount allowed under specified contracts using
    9         a specified index, and to publish the adjusted amount
   10         on its website; amending s. 287.055, F.S.; revising
   11         the definition of the term “continuing contract” to
   12         increase the maximum dollar value of such contract, to
   13         require the department, beginning on a specified date
   14         and annually thereafter, to adjust the maximum dollar
   15         value allowed under such contracts using a specified
   16         index, and to publish the new dollar value on its
   17         website; making technical changes; providing an
   18         effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Subsection (4) of section 255.103, Florida
   23  Statutes, is amended, and subsections (2) and (3) of that
   24  section are republished, to read:
   25         255.103 Construction management or program management
   26  entities.—
   27         (2) A governmental entity may select a construction
   28  management entity, pursuant to the process provided by s.
   29  287.055, which is to be responsible for construction project
   30  scheduling and coordination in both preconstruction and
   31  construction phases and generally responsible for the
   32  successful, timely, and economical completion of the
   33  construction project. The construction management entity must
   34  consist of or contract with licensed or registered professionals
   35  for the specific fields or areas of construction to be
   36  performed, as required by law. The construction management
   37  entity may retain necessary design professionals selected under
   38  the process provided in s. 287.055. At the option of the
   39  governmental entity, the construction management entity, after
   40  having been selected and after competitive negotiations, may be
   41  required to offer a guaranteed maximum price and a guaranteed
   42  completion date or a lump-sum price and a guaranteed completion
   43  date, in which case, the construction management entity must
   44  secure an appropriate surety bond pursuant to s. 255.05 and must
   45  hold construction subcontracts. If a project, as defined in s.
   46  287.055(2)(f), solicited by a governmental entity under the
   47  process provided in s. 287.055 includes a grouping of
   48  substantially similar construction, rehabilitation, or
   49  renovation activities as permitted under s. 287.055(2)(f), the
   50  governmental entity, after competitive negotiations, may require
   51  the construction management entity to provide for a separate
   52  guaranteed maximum price or a separate lump-sum price and a
   53  separate guaranteed completion date for each grouping of
   54  substantially similar construction, rehabilitation, or
   55  renovation activities included within the project.
   56         (3) A governmental entity may select a program management
   57  entity, pursuant to the process provided by s. 287.055, which is
   58  to be responsible for schedule control, cost control, and
   59  coordination in providing or procuring planning, design, and
   60  construction services. The program management entity must
   61  consist of or contract with licensed or registered professionals
   62  for the specific areas of design or construction to be performed
   63  as required by law. The program management entity may retain
   64  necessary design professionals selected under the process
   65  provided in s. 287.055. At the option of the governmental
   66  entity, the program management entity, after having been
   67  selected and after competitive negotiations, may be required to
   68  offer a guaranteed maximum price and a guaranteed completion
   69  date or a lump-sum price and guaranteed completion date, in
   70  which case the program management entity must secure an
   71  appropriate surety bond pursuant to s. 255.05 and must hold
   72  design and construction subcontracts. If a project, as defined
   73  in s. 287.055(2)(f), solicited by a governmental entity under
   74  the process provided in s. 287.055 includes a grouping of
   75  substantially similar construction, rehabilitation, or
   76  renovation activities as permitted under s. 287.055(2)(f), the
   77  governmental entity, after competitive negotiations, may require
   78  the program management entity to provide for a separate
   79  guaranteed maximum price or a lump-sum price and a separate
   80  guaranteed completion date for each grouping of substantially
   81  similar construction, rehabilitation, or renovation activities
   82  included within the project.
   83         (4) A governmental entity’s authority under subsections (2)
   84  and (3) includes entering into a continuing contract for
   85  construction projects, pursuant to the process provided in s.
   86  287.055, in which the estimated construction cost of each
   87  individual project under the contract does not exceed $7.5 $4
   88  million. Beginning July 1, 2025, and each July 1 thereafter, the
   89  Department of Management Services shall adjust the maximum
   90  amount allowed on the preceding June 30 for each individual
   91  project in a continuing contract by using the change in the
   92  June-to-June Consumer Price Index for All Urban Consumers issued
   93  by the Bureau of Labor Statistics of the United States
   94  Department of Labor. The Department of Management Services shall
   95  publish the adjusted amount on its website. For purposes of this
   96  subsection, the term “continuing contract” means a contract with
   97  a construction management or program management entity for work
   98  during a defined period on construction projects described by
   99  type which may or may not be identified at the time of entering
  100  into the contract.
  101         Section 2. Paragraph (g) of subsection (2) of section
  102  287.055, Florida Statutes, is amended to read:
  103         287.055 Acquisition of professional architectural,
  104  engineering, landscape architectural, or surveying and mapping
  105  services; definitions; procedures; contingent fees prohibited;
  106  penalties.—
  107         (2) DEFINITIONS.—For purposes of this section:
  108         (g)1. A “continuing contract” is a contract for any of the
  109  following:
  110         a. Professional services entered into in accordance with
  111  all the procedures of this act between an agency and a firm
  112  whereby the firm provides professional services to the agency
  113  for projects in which the estimated construction cost of each
  114  individual project under the contract does not exceed $7.5 $4
  115  million. Beginning July 1, 2025, and each July 1 thereafter, the
  116  department shall adjust the maximum amount allowed on the
  117  preceding June 30 for each individual project in a continuing
  118  contract by using the change in the June-to-June Consumer Price
  119  Index for All Urban Consumer issued by the Bureau of Labor
  120  Statistics of the United States Department of Labor. The
  121  department shall publish the adjusted amount on its website;,
  122         b.for Study activity if the fee for professional services
  123  for each individual study under the contract does not exceed
  124  $500,000;, or
  125         c.for Work of a specified nature as outlined in the
  126  contract required by the agency, with the contract being for a
  127  fixed term or with no time limitation except that the contract
  128  must provide a termination clause.
  129         2. Firms providing professional services under continuing
  130  contracts may shall not be required to bid against one another.
  131         Section 3. This act shall take effect July 1, 2024.