Florida Senate - 2021                             CS for SB 1616
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senator Brodeur
       
       
       
       
       585-03332-21                                          20211616c1
    1                        A bill to be entitled                      
    2         An act relating to agency contracts for commodities
    3         and contractual services; reenacting and amending s.
    4         216.1366, F.S.; abrogating the scheduled expiration of
    5         provisions relating to certain public agency contracts
    6         for services; amending s. 287.042, F.S.; providing
    7         that the Department of Management Services may enter
    8         into an agreement authorizing an agency to make
    9         purchases under certain contracts if the Secretary of
   10         Management Services makes a certain determination;
   11         amending s. 287.056, F.S.; providing that an agency
   12         must issue a request for quote to certain approved
   13         vendors when it issues certain requests for quote for
   14         contractual services; providing for the
   15         disqualification of certain firms or individuals from
   16         state term contract eligibility; amending s. 287.057,
   17         F.S.; revising the period of time during which an
   18         agency must electronically post a description of
   19         certain services in certain circumstances; requiring
   20         an agency to periodically report certain actions to
   21         the department in a specified manner and form;
   22         requiring the department to annually report certain
   23         information to the Governor and the Legislature by a
   24         specified date; prohibiting an agency from initiating
   25         a competitive solicitation in certain circumstances;
   26         providing applicability; revising the maximum value of
   27         certain contracts that may not be renewed or amended
   28         by state agency before submitting a written report to
   29         the Governor and the Legislature; requiring the agency
   30         to designate a contract manager to serve as a liaison
   31         between the contractor and the agency; prohibiting
   32         certain individuals from serving as a contract
   33         manager; providing the responsibilities of a contract
   34         manager; requiring the Chief Financial Officer to
   35         evaluate certain training at certain intervals;
   36         requiring that certain contract managers complete
   37         training and certification within a specified
   38         timeframe; requiring the department to establish and
   39         disseminate certain training and certification
   40         requirements; requiring the department to evaluate
   41         certain training at certain intervals; requiring
   42         certain contract managers to possess certain
   43         experience in managing contracts; authorizing a
   44         contract administrator to also serve as a contract
   45         manager in certain circumstances; providing that
   46         evaluations of proposals and replies must be conducted
   47         independently; providing for specified teams to
   48         conduct certain negotiations; requiring a Project
   49         Management Professional to provide guidance based on
   50         certain qualifications; providing qualification
   51         requirements for contract negotiator certification;
   52         requiring supervisors of contract administrators or
   53         contract and grant managers meeting certain criteria
   54         to complete training within a specified period;
   55         providing that the department is responsible for
   56         establishing and disseminating supervisor training by
   57         a certain date; providing for a continuing oversight
   58         team in certain circumstances; providing requirements
   59         for continuing oversight team members and meetings;
   60         requiring a continuing oversight team to provide
   61         notice of certain deficiencies and changes in contract
   62         scope to certain entities; amending s. 287.058, F.S.;
   63         prohibiting a contract document for certain
   64         contractual services from containing a certain
   65         nondisclosure clause; creating s. 287.1351, F.S.;
   66         defining the term “vendor”; prohibiting certain
   67         vendors from submitting bids, proposals, or replies
   68         to, or entering into or renewing any contract with, an
   69         agency; prohibiting an agency from accepting a bid,
   70         proposal, or reply from, or entering into a contract
   71         with, a suspended vendor until certain conditions are
   72         met; requiring an agency to notify the department of,
   73         and provide certain information regarding, any such
   74         vendors; requiring the department to review any vendor
   75         reported by an agency; requiring the department to
   76         notify a vendor of any intended removal from the
   77         vendor list; specifying administrative remedies and
   78         applicable procedures for an affected vendor;
   79         requiring the department to place certain vendors on
   80         the suspended vendor list; authorizing the removal of
   81         a suspended vendor from the suspended vendor list in
   82         accordance with specified procedures; specifying
   83         requirements and limitations; amending s. 287.136,
   84         F.S.; requiring each agency inspector general to
   85         complete certain audits of executed contracts at
   86         certain intervals; amending ss. 43.16, 215.971,
   87         287.0571, 295.187, 394.47865, 402.7305, 408.045,
   88         570.07, and 627.351, F.S.; conforming cross-references
   89         to changes made by the act; providing an effective
   90         date.
   91          
   92  Be It Enacted by the Legislature of the State of Florida:
   93  
   94         Section 1. Notwithstanding the expiration date in section
   95  106 of chapter 2020-114, Laws of Florida, section 216.1366,
   96  Florida Statutes, is reenacted and amended to read:
   97         216.1366 Contract terms.—
   98         (1) In order to preserve the interest of the state in the
   99  prudent expenditure of state funds, each public agency contract
  100  for services entered into or amended on or after July 1, 2020,
  101  shall authorize the public agency to inspect the:
  102         (a) Financial records, papers, and documents of the
  103  contractor that are directly related to the performance of the
  104  contract or the expenditure of state funds.
  105         (b) Programmatic records, papers, and documents of the
  106  contractor which the public agency determines are necessary to
  107  monitor the performance of the contract or to ensure that the
  108  terms of the contract are being met.
  109         (2) The contract shall require the contractor to provide
  110  such records, papers, and documents requested by the public
  111  agency within 10 business days after the request is made.
  112         (3)This section expires July 1, 2021.
  113         Section 2. Subsection (16) of section 287.042, Florida
  114  Statutes, is amended to read:
  115         287.042 Powers, duties, and functions.—The department shall
  116  have the following powers, duties, and functions:
  117         (16) To evaluate contracts let by the Federal Government,
  118  another state, or a political subdivision for the provision of
  119  commodities and contract services, and, if it is determined by
  120  the Secretary of Management Services in writing to be cost
  121  effective and in the best value to interest of the state, to
  122  enter into a written agreement authorizing an agency to make
  123  purchases under such contract.
  124         Section 3. Subsection (2) of section 287.056, Florida
  125  Statutes, is amended, and subsection (4) is added to that
  126  section, to read:
  127         287.056 Purchases from purchasing agreements and state term
  128  contracts.—
  129         (2) Agencies and eligible users may use a request for quote
  130  to obtain written pricing or services information from a state
  131  term contract vendor for commodities or contractual services
  132  available on state term contract from that vendor. The purpose
  133  of a request for quote is to determine whether a price, term, or
  134  condition more favorable to the agency or eligible user than
  135  that provided in the state term contract is available. If an
  136  agency issues a request for quote for contractual services for
  137  any contract with 100 vendors or fewer, the agency must issue a
  138  request for quote to all vendors approved to provide such
  139  contractual services. For any contract with more than 100
  140  vendors, the agency must issue a request for quote to a minimum
  141  of 100 vendors approved to provide such contractual services.
  142  Use of a request for quote does not constitute a decision or
  143  intended decision that is subject to protest under s. 120.57(3).
  144         (4)A firm or individual placed on the suspended vendor
  145  list pursuant to s. 287.1351 or placed on a disqualified vendor
  146  list pursuant to s. 287.133 or s. 287.134 is immediately
  147  disqualified from state term contract eligibility.
  148         Section 4. Present subsections (4) through (16) and (17)
  149  through (23) of section 287.057, Florida Statutes, are
  150  redesignated as subsections (5) through (17) and (19) through
  151  (25), respectively, new subsections (4) and (18) and subsection
  152  (26) are added to that section, and paragraph (c) of subsection
  153  (3) and present subsections (13) through (16) of that section
  154  are amended, to read:
  155         287.057 Procurement of commodities or contractual
  156  services.—
  157         (3) If the purchase price of commodities or contractual
  158  services exceeds the threshold amount provided in s. 287.017 for
  159  CATEGORY TWO, purchase of commodities or contractual services
  160  may not be made without receiving competitive sealed bids,
  161  competitive sealed proposals, or competitive sealed replies
  162  unless:
  163         (c) Commodities or contractual services available only from
  164  a single source may be excepted from the competitive
  165  solicitation requirements. If an agency believes that
  166  commodities or contractual services are available only from a
  167  single source, the agency shall electronically post a
  168  description of the commodities or contractual services sought
  169  for at least 15 7 business days. The description must include a
  170  request that prospective vendors provide information regarding
  171  their ability to supply the commodities or contractual services
  172  described. If it is determined in writing by the agency, after
  173  reviewing any information received from prospective vendors that
  174  the commodities or contractual services are available only from
  175  a single source, the agency shall provide notice of its intended
  176  decision to enter a single-source purchase contract in the
  177  manner specified in s. 120.57(3). Each agency shall report all
  178  such actions to the department on a quarterly basis in a manner
  179  and form prescribed by the department, and the department shall
  180  report such information to the Governor, the President of the
  181  Senate, and the Speaker of the House of Representatives no later
  182  than January 1, 2022, and each January 1 thereafter.
  183         (4)A state agency may not initiate a competitive
  184  solicitation for a product or service if the completion of such
  185  competitive solicitation would:
  186         (a)Require a change in law; or
  187         (b)Require a change to the agency’s budget other than a
  188  transfer authorized in s. 216.292(2) or (3), unless the
  189  initiation of such competitive solicitation is specifically
  190  authorized in law, in the General Appropriations Act, or by the
  191  Legislative Budget Commission.
  192         (c)This subsection does not apply to a competitive
  193  solicitation for which the agency head certifies that a valid
  194  emergency exists.
  195         (14)(13) Contracts for commodities or contractual services
  196  may be renewed for a period that may not exceed 3 years or the
  197  term of the original contract, whichever is longer. Renewal of a
  198  contract for commodities or contractual services must be in
  199  writing and is subject to the same terms and conditions set
  200  forth in the initial contract and any written amendments signed
  201  by the parties. If the commodity or contractual service is
  202  purchased as a result of the solicitation of bids, proposals, or
  203  replies, the price of the commodity or contractual service to be
  204  renewed must be specified in the bid, proposal, or reply, except
  205  that an agency may negotiate lower pricing. A renewal contract
  206  may not include any compensation for costs associated with the
  207  renewal. Renewals are contingent upon satisfactory performance
  208  evaluations by the agency and subject to the availability of
  209  funds. Exceptional purchase contracts pursuant to paragraphs
  210  (3)(a) and (c) may not be renewed. With the exception of
  211  subsection (11) (10), if a contract amendment results in a
  212  longer contract term or increased payments, a state agency may
  213  not renew or amend a contract for the outsourcing of a service
  214  or activity that has an original term value exceeding $5 $10
  215  million before submitting a written report concerning contract
  216  performance to the Governor, the President of the Senate, and
  217  the Speaker of the House of Representatives at least 90 days
  218  before execution of the renewal or amendment.
  219         (15)(a)(14) For each contractual services contract, the
  220  agency shall designate an employee to function as contract
  221  manager who is responsible for enforcing performance of the
  222  contract terms and conditions and serve as a liaison between
  223  with the contractor and the agency. The contract manager may not
  224  be an individual who has been employed, within the previous 5
  225  years, by the vendor awarded the contractual services contract.
  226  The primary responsibilities of a contract manager include, but
  227  are not limited to:
  228         1.Participating in the solicitation development and review
  229  of contract documents.
  230         2.Monitoring the contractor’s progress and performance to
  231  ensure procured products and services conform to the contract
  232  requirements and keeping timely records of findings.
  233         3.Managing and documenting any changes to the contract
  234  through the amendment process authorized by the terms of the
  235  contract.
  236         4.Monitoring the contract budget to ensure sufficient
  237  funds are available throughout the term of the contract.
  238         5.Exercising applicable remedies, as appropriate, when a
  239  contractor’s performance is deficient.
  240         (b)(a) Each contract manager who is responsible for
  241  contracts in excess of the threshold amount for CATEGORY TWO
  242  must, at a minimum, complete training conducted by the Chief
  243  Financial Officer for accountability in contracts and grant
  244  management. The Chief Financial Officer shall evaluate such
  245  training every 5 years to assess its effectiveness and update
  246  the training curriculum. The Chief Financial Officer shall
  247  establish and disseminate uniform procedures pursuant to s.
  248  17.03(3) to ensure that contractual services have been rendered
  249  in accordance with the contract terms before the agency
  250  processes the invoice for payment. The procedures must include,
  251  but need not be limited to, procedures for monitoring and
  252  documenting contractor performance, reviewing and documenting
  253  all deliverables for which payment is requested by vendors, and
  254  providing written certification by contract managers of the
  255  agency’s receipt of goods and services.
  256         (c)(b) Each contract manager who is responsible for
  257  contracts in excess of $100,000 annually must, in addition to
  258  the accountability in contracts and grant management training
  259  required in paragraph (b) and within 6 months after being
  260  assigned responsibility for such contracts, complete training in
  261  contract management and become a certified contract manager. The
  262  department is responsible for establishing and disseminating the
  263  training and certification requirements for certified contract
  264  managers. Training must promote best practices and procedures
  265  related to negotiating, managing, and ensuring accountability in
  266  agency contracts and grant agreements, which must include the
  267  use of case studies based upon previous audits, contracts, and
  268  grant agreements. A certified contract manager must complete
  269  training every 5 years for certification renewal requirements
  270  for certification which include completing the training
  271  conducted by the Chief Financial Officer for accountability in
  272  contracts and grant management. Training and certification must
  273  be coordinated by the department, and the training must be
  274  conducted jointly by the department and the Department of
  275  Financial Services. The department shall evaluate such training
  276  every 5 years to assess its effectiveness and update the
  277  training curriculum Training must promote best practices and
  278  procedures related to negotiating, managing, and ensuring
  279  accountability in agency contracts and grant agreements, which
  280  must include the use of case studies based upon previous audits,
  281  contracts, and grant agreements. All agency contract managers
  282  must become certified within 24 months after establishment of
  283  the training and certification requirements by the department
  284  and the Department of Financial Services.
  285         (d)Each contract manager who is responsible for contracts
  286  in excess of $10 million annually must, in addition to the
  287  training required in paragraph (b) and the training and
  288  certification required in paragraph (c), possess at least 5
  289  years of experience managing contracts in excess of $5 million
  290  annually.
  291         (16)(15) Each agency shall designate at least one employee
  292  who shall serve as a contract administrator responsible for
  293  maintaining a contract file and financial information on all
  294  contractual services contracts and who shall serve as a liaison
  295  with the contract managers and the department. For a contract of
  296  $500,000 or less annually, the contract administrator may also
  297  serve as the contract manager if he or she has completed the
  298  required training. For a contract in excess of $500,000
  299  annually, the contract administrator may not serve as both the
  300  contract administrator and the contract manager.
  301         (17)(a)(16)(a) For a contract in excess of the threshold
  302  amount provided in s. 287.017 for CATEGORY FOUR, the agency head
  303  shall appoint:
  304         1. At least three persons to independently evaluate
  305  proposals and replies who collectively have experience and
  306  knowledge in the program areas and service requirements for the
  307  commodity which commodities or contractual services are sought.
  308         2. At least three persons to a negotiation team to conduct
  309  negotiations during a competitive sealed reply procurement. The
  310  negotiation team members must who collectively have experience
  311  and knowledge in negotiating contracts, contract procurement,
  312  and the program areas and service requirements for the commodity
  313  which commodities or contractual services are sought.
  314         (b)1. If the value of a contract is in excess of $1 million
  315  in any fiscal year, at least one of the persons conducting
  316  negotiations must be certified as a certified contract
  317  negotiator based upon department rules in order to ensure that
  318  certified contract negotiators are knowledgeable about effective
  319  negotiation strategies, capable of successfully implementing
  320  those strategies, and involved appropriately in the procurement
  321  process. At a minimum, the rules must address the qualifications
  322  required for certification, the method of certification, and the
  323  procedure for involving the certified negotiator.
  324         2. If the value of a contract is in excess of $10 million
  325  in any fiscal year, at least one of the persons conducting
  326  negotiations must be a Project Management Professional, as
  327  certified by the Project Management Institute. The Project
  328  Management Professional shall provide guidance based on his or
  329  her experience, education, and competency to lead and direct
  330  complex projects.
  331         3.The department is responsible for establishing and
  332  disseminating the certification and training requirements for
  333  certified contract negotiators. Training must ensure that
  334  certified contract negotiators are knowledgeable about effective
  335  negotiation strategies, capable of successfully implementing
  336  those strategies, and involved appropriately in the procurement
  337  process. The department shall evaluate such training every 5
  338  years in order to assess its effectiveness and update the
  339  training curriculum. A certified contract negotiator is required
  340  to complete training every 5 years for certification renewal.
  341  Qualification requirements for certification must include:
  342         a.At least 12 months’ experience as a purchasing agent,
  343  contract manager, or contract administrator for an agency or a
  344  local governmental entity where at least 50 percent of the
  345  designated duties included procuring commodities or contractual
  346  services; participating in contract negotiation, contract
  347  management, or contract administration; or working as an agency
  348  attorney whose duties included providing legal counsel to the
  349  agency’s purchasing or contracting staff; and
  350         b.Experience during the preceding 5 years in leading at
  351  least two federal, state, or local government negotiation teams
  352  through a negotiated procurement, or participation in at least
  353  three federal, state, or local government-negotiated
  354  procurements.
  355         (18) Any person who supervises contract administrators or
  356  contract or grant managers who meet criteria for certification
  357  in subsection (15) shall annually complete public procurement
  358  training for supervisors within 12 months after appointment to
  359  the supervisory position. The department is responsible for
  360  establishing and disseminating the training course content
  361  required for supervisors, and training shall commence no later
  362  than July 1, 2022.
  363         (26)(a) For each contractual services contract in excess of
  364  $1 million, the agency head shall establish a continuing
  365  oversight team after the contract has been awarded. The agency
  366  head shall appoint at least four persons, one of whom must be
  367  the certified contract manager, to the continuing oversight
  368  team. If the value of the contractual services contract is in
  369  excess of $5 million, at least one of the persons on the
  370  continuing oversight team must possess at least 5 years of
  371  experience in managing contracts of a similar scope or size. If
  372  the value of the contractual services contract is in excess of
  373  $20 million, the continuing oversight team shall consist of at
  374  least five persons, at least one of the persons on the
  375  continuing oversight team must be from a state agency other than
  376  the agency or agencies participating in the contract. Members of
  377  the continuing oversight team must be employees of the state and
  378  must collectively have experience and knowledge in contract
  379  management, contract administration, contract enforcement, and
  380  the program areas and service requirements for the contractual
  381  services purchased.
  382         (b)1. For contracts in excess of $1 million, each
  383  continuing oversight team must meet at least quarterly.
  384         2. For contracts in excess of $10 million, each continuing
  385  oversight team must meet at least monthly. A representative of
  386  the contractor must be made available to members of the
  387  continuing oversight team for at least one meeting every
  388  calendar quarter to respond to any questions or requests for
  389  information from the continuing oversight team concerning
  390  contractor performance.
  391         (c)1. Within 30 days after the formation of the continuing
  392  oversight team, the continuing oversight team must convene an
  393  initial meeting with representatives of the contractor to
  394  achieve a mutual understanding of the contract requirements, to
  395  provide the contractor with an orientation to the contract
  396  management process, and to provide an explanation of the role of
  397  the continuing oversight team, contract manager, and contract
  398  administrator.
  399         2. The continuing oversight team must meet to discuss the
  400  status of the contract, the pace of deliverables, the quality of
  401  deliverables, contractor responsiveness, and contractor
  402  performance. The contract administrator must be present at each
  403  meeting with the contract file and all applicable financial
  404  information. The continuing oversight team may submit written
  405  questions to the contractor concerning any items discussed
  406  during a continuing oversight team meeting. The contractor must
  407  respond to the team’s questions within 10 business days after
  408  receiving the written questions. The questions and responses
  409  must be included in the contract file.
  410         (d) The continuing oversight team must notify, in writing:
  411         1. The agency head and the department of any deficiency in
  412  a contractor’s performance which substantially affects the pace
  413  of deliverables or the likelihood of the successful completion
  414  of the contract.
  415         2. The agency head, the department, and the Office of
  416  Policy and Budget in the Executive Office of the Governor of any
  417  significant change in contract scope or any increase in the cost
  418  of the contract which is 5 percent of the planned contract cost
  419  or greater within the fiscal year for contractual service
  420  contracts of at least $5 million.
  421         3. The agency head, the department, the Office of Policy
  422  and Budget in the Executive Office of the Governor, and the
  423  legislative appropriations committees of any significant change
  424  in contract scope or any increase in the cost of the contract
  425  which is 5 percent of the planned contract cost or greater
  426  within the fiscal year for contractual service contracts of $10
  427  million or greater.
  428         Section 5. Subsection (7) is added to section 287.058,
  429  Florida Statutes, to read:
  430         287.058 Contract document.—
  431         (7) A contract may not contain a nondisclosure clause that
  432  prohibits the contractor from disclosing information relevant to
  433  the performance of the contract to members or staff of the
  434  Senate or the House of Representatives.
  435         Section 6. Section 287.1351, Florida Statutes, is created
  436  to read:
  437         287.1351 Suspended vendors; state contracts.—
  438         (1) As used in this section, the term “vendor” means a
  439  person or an entity that provides goods or services to an agency
  440  under a contract or submits a bid, proposal, or reply to provide
  441  goods or services to an agency.
  442         (2)(a) A vendor that is in default on any contract with an
  443  agency or has otherwise repeatedly demonstrated a recent
  444  inability to fulfill the terms and conditions of previous state
  445  contracts or to adequately perform its duties under those
  446  contracts may not submit a bid, proposal, or reply to an agency
  447  or enter into or renew a contract to provide any goods or
  448  services to an agency after its placement, pursuant to this
  449  section, on the suspended vendor list.
  450         (b) An agency may not accept a bid, proposal, or reply
  451  from, or enter into or renew any contract with, a vendor on the
  452  suspended vendor list until such vendor has been removed from
  453  the suspended vendor list and returned to the vendor list
  454  maintained by the department pursuant to s. 287.042(1)(a) and
  455  (b) and the vendor has reimbursed the agency for any
  456  reprocurement costs.
  457         (3) An agency shall notify the department of any vendor
  458  that has met the grounds for suspension described in paragraph
  459  (2)(a). The agency must provide documentation to the department
  460  evidencing the vendor’s default or other grounds for suspension.
  461  The department shall review the documentation provided and
  462  determine whether good cause exists to remove the vendor from
  463  the vendor list and to place it on the suspended vendor list. If
  464  good cause exists, the department must notify the vendor in
  465  writing of its intent to remove the vendor from the vendor list
  466  and of the vendor’s right to an administrative hearing and the
  467  applicable procedures and time requirements for any such
  468  hearing. If the vendor does not request an administrative
  469  hearing, the department must enter a final order removing the
  470  vendor from the vendor list. A vendor may not be removed from
  471  the vendor list without receiving an individual notice of intent
  472  from the department.
  473         (4) Within 21 days after receipt of the notice of intent,
  474  the vendor may file with the department a petition for a formal
  475  hearing pursuant to ss. 120.569 and 120.57 to challenge the
  476  department’s decision to remove the vendor from the vendor list.
  477  A vendor that fails to timely file a petition in accordance with
  478  this subsection is deemed to have waived its right to a hearing,
  479  and the department’s decision to remove the vendor from the
  480  vendor list becomes final agency action.
  481         (5)(a) The department shall place any vendor removed from
  482  the vendor list pursuant to this section on the suspended vendor
  483  list. One year or more after entry of the final order of its
  484  suspension, a suspended vendor may file a petition with the
  485  department for removal from the suspended vendor list. The
  486  proceeding on the petition must be conducted in accordance with
  487  chapter 120. The vendor may be removed from the suspended vendor
  488  list if the administrative law judge determines that removal
  489  from the list would be in the public interest. In determining
  490  whether removal from the list would be in the public interest,
  491  the administrative law judge may consider, but is not limited
  492  to, whether the suspended vendor has prepared a corrective
  493  action plan that addresses the original grounds for default or
  494  failure to fulfill the terms and conditions of the contract,
  495  reimbursed the agency for any reprocurement costs, or provided
  496  additional evidence that the vendor has taken other remedial
  497  action.
  498         (b) If a petition for removal from the suspended vendor
  499  list is denied, the vendor may not petition for another hearing
  500  on removal for a period of at least 9 months after the date of
  501  the denial. The department may petition for the suspended
  502  vendor’s removal before the expiration of such period if, in the
  503  department’s discretion, the department determines that removal
  504  from the suspended vendor list would be in the public interest.
  505         Section 7. Section 287.136, Florida Statutes, is amended to
  506  read:
  507         287.136 Audit of executed contract documents.—
  508         (1) After execution of a contract, the Chief Financial
  509  Officer shall perform audits of the executed contract document
  510  and contract manager’s records to ensure that adequate internal
  511  controls are in place for complying with the terms and
  512  conditions of the contract and for the validation and receipt of
  513  goods and services.
  514         (a)(1) At the conclusion of the audit, the Chief Financial
  515  Officer’s designee shall discuss the audit and potential
  516  findings with the official whose office is subject to audit. The
  517  final audit report shall be submitted to the agency head.
  518         (b)(2) Within 30 days after receipt of the final audit
  519  report, the agency head shall submit to the Chief Financial
  520  Officer or designee his or her written statement of explanation
  521  or rebuttal concerning findings requiring corrective action,
  522  including corrective action to be taken to preclude a
  523  recurrence.
  524         (2) Beginning October 1, 2021, and every 3 years
  525  thereafter, each agency inspector general shall complete a risk
  526  based compliance audit of all contracts executed by the agency
  527  for the preceding 3 fiscal years. The audit must include an
  528  evaluation of and identify any trend in vendor preference. The
  529  audit findings must be submitted to the agency head, the
  530  secretary of the Department of Management Services, and the
  531  Governor.
  532         Section 8. Subsection (1) of section 43.16, Florida
  533  Statutes, is amended to read:
  534         43.16 Justice Administrative Commission; membership, powers
  535  and duties.—
  536         (1) There is hereby created a Justice Administrative
  537  Commission, with headquarters located in the state capital. The
  538  necessary office space for use of the commission shall be
  539  furnished by the proper state agency in charge of state
  540  buildings. For purposes of the fees imposed on agencies pursuant
  541  to s. 287.057(24) s. 287.057(22), the Justice Administrative
  542  Commission shall be exempt from such fees.
  543         Section 9. Paragraph (a) of subsection (2) of section
  544  215.971, Florida Statutes, is amended to read:
  545         215.971 Agreements funded with federal or state
  546  assistance.—
  547         (2) For each agreement funded with federal or state
  548  financial assistance, the state agency shall designate an
  549  employee to function as a grant manager who shall be responsible
  550  for enforcing performance of the agreement’s terms and
  551  conditions and who shall serve as a liaison with the recipient
  552  or subrecipient.
  553         (a)1. Each grant manager who is responsible for agreements
  554  in excess of the threshold amount for CATEGORY TWO under s.
  555  287.017 must, at a minimum, complete training conducted by the
  556  Chief Financial Officer for accountability in contracts and
  557  grant management.
  558         2. Effective December 1, 2014, each grant manager
  559  responsible for agreements in excess of $100,000 annually must
  560  complete the training and become a certified contract manager as
  561  provided under s. 287.057(15) s. 287.057(14). All grant managers
  562  must become certified contract managers within 24 months after
  563  establishment of the training and certification requirements by
  564  the Department of Management Services and the Department of
  565  Financial Services.
  566         Section 10. Paragraph (a) of subsection (3) of section
  567  287.0571, Florida Statutes, is amended to read:
  568         287.0571 Business case to outsource; applicability.—
  569         (3) This section does not apply to:
  570         (a) A procurement of commodities and contractual services
  571  listed in s. 287.057(3)(d) and (e) and (23) (21).
  572         Section 11. Paragraph (b) of subsection (4) of section
  573  295.187, Florida Statutes, is amended to read:
  574         295.187 Florida Veteran Business Enterprise Opportunity
  575  Act.—
  576         (4) VENDOR PREFERENCE.—
  577         (b) Notwithstanding s. 287.057(12) s. 287.057(11), if a
  578  veteran business enterprise entitled to the vendor preference
  579  under this section and one or more businesses entitled to this
  580  preference or another vendor preference provided by law submit
  581  bids, proposals, or replies for procurement of commodities or
  582  contractual services which are equal with respect to all
  583  relevant considerations, including price, quality, and service,
  584  the state agency shall award the procurement or contract to the
  585  business having the smallest net worth.
  586         Section 12. Paragraph (a) of subsection (1) of section
  587  394.47865, Florida Statutes, is amended to read:
  588         394.47865 South Florida State Hospital; privatization.—
  589         (1) The Department of Children and Families shall, through
  590  a request for proposals, privatize South Florida State Hospital.
  591  The department shall plan to begin implementation of this
  592  privatization initiative by July 1, 1998.
  593         (a) Notwithstanding s. 287.057(14) s. 287.057(13), the
  594  department may enter into agreements, not to exceed 20 years,
  595  with a private provider, a coalition of providers, or another
  596  agency to finance, design, and construct a treatment facility
  597  having up to 350 beds and to operate all aspects of daily
  598  operations within the facility. The department may subcontract
  599  any or all components of this procurement to a statutorily
  600  established state governmental entity that has successfully
  601  contracted with private companies for designing, financing,
  602  acquiring, leasing, constructing, and operating major privatized
  603  state facilities.
  604         Section 13. Paragraph (b) of subsection (2) and subsection
  605  (3) of section 402.7305, Florida Statutes, are amended to read:
  606         402.7305 Department of Children and Families; procurement
  607  of contractual services; contract management.—
  608         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
  609         (b) When it is in the best interest of a defined segment of
  610  its consumer population, the department may competitively
  611  procure and contract for systems of treatment or service that
  612  involve multiple providers, rather than procuring and
  613  contracting for treatment or services separately from each
  614  participating provider. The department must ensure that all
  615  providers that participate in the treatment or service system
  616  meet all applicable statutory, regulatory, service quality, and
  617  cost control requirements. If other governmental entities or
  618  units of special purpose government contribute matching funds to
  619  the support of a given system of treatment or service, the
  620  department shall formally request information from those funding
  621  entities in the procurement process and may take the information
  622  received into account in the selection process. If a local
  623  government contributes matching funds to support the system of
  624  treatment or contracted service and if the match constitutes at
  625  least 25 percent of the value of the contract, the department
  626  shall afford the governmental match contributor an opportunity
  627  to name an employee as one of the persons required by s.
  628  287.057(17) s. 287.057(16) to evaluate or negotiate certain
  629  contracts, unless the department sets forth in writing the
  630  reason why the inclusion would be contrary to the best interest
  631  of the state. Any employee so named by the governmental match
  632  contributor shall qualify as one of the persons required by s.
  633  287.057(17) s. 287.057(16). A governmental entity or unit of
  634  special purpose government may not name an employee as one of
  635  the persons required by s. 287.057(17) s. 287.057(16) if it, or
  636  any of its political subdivisions, executive agencies, or
  637  special districts, intends to compete for the contract to be
  638  awarded. The governmental funding entity or contributor of
  639  matching funds must comply with all procurement procedures set
  640  forth in s. 287.057 when appropriate and required.
  641         (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The
  642  Department of Children and Families shall review the time period
  643  for which the department executes contracts and shall execute
  644  multiyear contracts to make the most efficient use of the
  645  resources devoted to contract processing and execution. Whenever
  646  the department chooses not to use a multiyear contract, a
  647  justification for that decision must be contained in the
  648  contract. Notwithstanding s. 287.057(15) s. 287.057(14), the
  649  department is responsible for establishing a contract management
  650  process that requires a member of the department’s Senior
  651  Management or Selected Exempt Service to assign in writing the
  652  responsibility of a contract to a contract manager. The
  653  department shall maintain a set of procedures describing its
  654  contract management process which must minimally include the
  655  following requirements:
  656         (a) The contract manager shall maintain the official
  657  contract file throughout the duration of the contract and for a
  658  period not less than 6 years after the termination of the
  659  contract.
  660         (b) The contract manager shall review all invoices for
  661  compliance with the criteria and payment schedule provided for
  662  in the contract and shall approve payment of all invoices before
  663  their transmission to the Department of Financial Services for
  664  payment.
  665         (c) The contract manager shall maintain a schedule of
  666  payments and total amounts disbursed and shall periodically
  667  reconcile the records with the state’s official accounting
  668  records.
  669         (d) For contracts involving the provision of direct client
  670  services, the contract manager shall periodically visit the
  671  physical location where the services are delivered and speak
  672  directly to clients receiving the services and the staff
  673  responsible for delivering the services.
  674         (e) The contract manager shall meet at least once a month
  675  directly with the contractor’s representative and maintain
  676  records of such meetings.
  677         (f) The contract manager shall periodically document any
  678  differences between the required performance measures and the
  679  actual performance measures. If a contractor fails to meet and
  680  comply with the performance measures established in the
  681  contract, the department may allow a reasonable period for the
  682  contractor to correct performance deficiencies. If performance
  683  deficiencies are not resolved to the satisfaction of the
  684  department within the prescribed time, and if no extenuating
  685  circumstances can be documented by the contractor to the
  686  department’s satisfaction, the department must terminate the
  687  contract. The department may not enter into a new contract with
  688  that same contractor for the services for which the contract was
  689  previously terminated for a period of at least 24 months after
  690  the date of termination. The contract manager shall obtain and
  691  enforce corrective action plans, if appropriate, and maintain
  692  records regarding the completion or failure to complete
  693  corrective action items.
  694         (g) The contract manager shall document any contract
  695  modifications, which shall include recording any contract
  696  amendments as provided for in this section.
  697         (h) The contract manager shall be properly trained before
  698  being assigned responsibility for any contract.
  699         Section 14. Subsection (2) of section 408.045, Florida
  700  Statutes, is amended to read:
  701         408.045 Certificate of need; competitive sealed proposals.—
  702         (2) The agency shall make a decision regarding the issuance
  703  of the certificate of need in accordance with the provisions of
  704  s. 287.057(17) s. 287.057(16), rules adopted by the agency
  705  relating to intermediate care facilities for the developmentally
  706  disabled, and the criteria in s. 408.035, as further defined by
  707  rule.
  708         Section 15. Subsection (42) of section 570.07, Florida
  709  Statutes, is amended to read:
  710         570.07 Department of Agriculture and Consumer Services;
  711  functions, powers, and duties.—The department shall have and
  712  exercise the following functions, powers, and duties:
  713         (42) Notwithstanding the provisions of s. 287.057(24) s.
  714  287.057(22) that require all agencies to use the online
  715  procurement system developed by the Department of Management
  716  Services, the department may continue to use its own online
  717  system. However, vendors utilizing such system shall be
  718  prequalified as meeting mandatory requirements and
  719  qualifications and shall remit fees pursuant to s. 287.057(24)
  720  s. 287.057(22), and any rules implementing s. 287.057.
  721         Section 16. Paragraph (e) of subsection (6) of section
  722  627.351, Florida Statutes, is amended to read:
  723         627.351 Insurance risk apportionment plans.—
  724         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  725         (e) The corporation is subject to s. 287.057 for the
  726  purchase of commodities and contractual services except as
  727  otherwise provided in this paragraph. Services provided by
  728  tradepersons or technical experts to assist a licensed adjuster
  729  in the evaluation of individual claims are not subject to the
  730  procurement requirements of this section. Additionally, the
  731  procurement of financial services providers and underwriters
  732  must be made pursuant to s. 627.3513. Contracts for goods or
  733  services valued at or more than $100,000 are subject to approval
  734  by the board.
  735         1. The corporation is an agency for purposes of s. 287.057,
  736  except that, for purposes of s. 287.057(24) s. 287.057(22), the
  737  corporation is an eligible user.
  738         a. The authority of the Department of Management Services
  739  and the Chief Financial Officer under s. 287.057 extends to the
  740  corporation as if the corporation were an agency.
  741         b. The executive director of the corporation is the agency
  742  head under s. 287.057, except for resolution of bid protests for
  743  which the board would serve as the agency head.
  744         2. The corporation must provide notice of a decision or
  745  intended decision concerning a solicitation, contract award, or
  746  exceptional purchase by electronic posting. Such notice must
  747  contain the following statement: “Failure to file a protest
  748  within the time prescribed in this section constitutes a waiver
  749  of proceedings.”
  750         a. A person adversely affected by the corporation’s
  751  decision or intended decision to award a contract pursuant to s.
  752  287.057(1) or (3)(c) who elects to challenge the decision must
  753  file a written notice of protest with the executive director of
  754  the corporation within 72 hours after the corporation posts a
  755  notice of its decision or intended decision. For a protest of
  756  the terms, conditions, and specifications contained in a
  757  solicitation, including provisions governing the methods for
  758  ranking bids, proposals, replies, awarding contracts, reserving
  759  rights of further negotiation, or modifying or amending any
  760  contract, the notice of protest must be filed in writing within
  761  72 hours after posting the solicitation. Saturdays, Sundays, and
  762  state holidays are excluded in the computation of the 72-hour
  763  time period.
  764         b. A formal written protest must be filed within 10 days
  765  after the date the notice of protest is filed. The formal
  766  written protest must state with particularity the facts and law
  767  upon which the protest is based. Upon receipt of a formal
  768  written protest that has been timely filed, the corporation must
  769  stop the solicitation or contract award process until the
  770  subject of the protest is resolved by final board action unless
  771  the executive director sets forth in writing particular facts
  772  and circumstances that require the continuance of the
  773  solicitation or contract award process without delay in order to
  774  avoid an immediate and serious danger to the public health,
  775  safety, or welfare.
  776         (I) The corporation must provide an opportunity to resolve
  777  the protest by mutual agreement between the parties within 7
  778  business days after receipt of the formal written protest.
  779         (II) If the subject of a protest is not resolved by mutual
  780  agreement within 7 business days, the corporation’s board must
  781  transmit the protest to the Division of Administrative Hearings
  782  and contract with the division to conduct a hearing to determine
  783  the merits of the protest and to issue a recommended order. The
  784  contract must provide for the corporation to reimburse the
  785  division for any costs incurred by the division for court
  786  reporters, transcript preparation, travel, facility rental, and
  787  other customary hearing costs in the manner set forth in s.
  788  120.65(9). The division has jurisdiction to determine the facts
  789  and law concerning the protest and to issue a recommended order.
  790  The division’s rules and procedures apply to these proceedings;
  791  the division’s applicable bond requirements do not apply. The
  792  protest must be heard by the division at a publicly noticed
  793  meeting in accordance with procedures established by the
  794  division.
  795         c. In a protest of an invitation-to-bid or request-for
  796  proposals procurement, submissions made after the bid or
  797  proposal opening which amend or supplement the bid or proposal
  798  may not be considered. In protesting an invitation-to-negotiate
  799  procurement, submissions made after the corporation announces
  800  its intent to award a contract, reject all replies, or withdraw
  801  the solicitation that amends or supplements the reply may not be
  802  considered. Unless otherwise provided by law, the burden of
  803  proof rests with the party protesting the corporation’s action.
  804  In a competitive-procurement protest, other than a rejection of
  805  all bids, proposals, or replies, the administrative law judge
  806  must conduct a de novo proceeding to determine whether the
  807  corporation’s proposed action is contrary to the corporation’s
  808  governing statutes, the corporation’s rules or policies, or the
  809  solicitation specifications. The standard of proof for the
  810  proceeding is whether the corporation’s action was clearly
  811  erroneous, contrary to competition, arbitrary, or capricious. In
  812  any bid-protest proceeding contesting an intended corporation
  813  action to reject all bids, proposals, or replies, the standard
  814  of review by the board is whether the corporation’s intended
  815  action is illegal, arbitrary, dishonest, or fraudulent.
  816         d. Failure to file a notice of protest or failure to file a
  817  formal written protest constitutes a waiver of proceedings.
  818         3. The board, acting as agency head, shall consider the
  819  recommended order of an administrative law judge in a public
  820  meeting and take final action on the protest. Any further legal
  821  remedy lies with the First District Court of Appeal.
  822         Section 17. This act shall take effect July 1, 2021.