House Bill hb1977

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    Florida House of Representatives - 2002                HB 1977

        By the Committee on Fiscal Policy & Resources and
    Representative Wallace





  1                      A bill to be entitled

  2         An act relating to competitive solicitation for

  3         procurement of commodities, insurance, and

  4         contractual services; amending s. 120.57, F.S.;

  5         revising and clarifying uniform rules of

  6         procedure for certain actions; amending ss.

  7         287.001, 287.012, 287.017, 287.022, 287.032,

  8         287.042, 287.045, 287.056, 287.057, 287.0572,

  9         287.058, 287.0731, 287.0822, 287.084, 287.087,

10         287.093, 287.09451, 287.133, 287.134, and

11         287.1345, F.S.; revising legislative intent and

12         definitions; revising and clarifying purchasing

13         categories and threshold amounts; revising

14         purchase of insurance requirements and

15         procedures; revising purposes, powers, duties,

16         and functions of the Department of Management

17         Services; revising and clarifying requirements

18         and procedures for procurement of products and

19         materials with recycled content; revising and

20         clarifying requirements and procedures for

21         certain purchases from state term contracts

22         procured by the department; revising and

23         clarifying procedures, requirements, and

24         limitations for procurement of commodities or

25         contractual services; revising present-value

26         methodology requirements; clarifying pollution

27         response action contract provisions; revising

28         department rulemaking authority; revising

29         provisions requiring certain teams for contract

30         negotiations; revising provisions relating to

31         purchases of beef and pork and prohibitions on

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  1         such; providing a penalty; revising and

  2         clarifying provisions granting preference to

  3         Florida businesses, businesses with drug-free

  4         workplace programs, and minority business

  5         enterprises; revising the powers, duties, and

  6         functions of the Office of Supplier Diversity;

  7         revising and clarifying provisions relating to

  8         public entity crime and the denial or

  9         revocation of the right to transact business

10         with public entities; revising and clarifying

11         provisions relating to discrimination and

12         denial or revocation of the right to transact

13         business with public entities; revising and

14         clarifying provisions imposing a surcharge on

15         users of state term contracts and providing for

16         deposit of proceeds collected; creating s.

17         287.096, F.S.; providing certain production

18         requirements for products offered for purchase

19         to a state agency by certain exempt entities;

20         amending s. 283.33, F.S., to conform; repealing

21         s. 287.073, F.S., relating to procurement of

22         information technology resources; repealing s.

23         287.121, F.S., relating to providing assistance

24         to the Department of Legal Affairs; providing

25         an effective date.

26

27  Be It Enacted by the Legislature of the State of Florida:

28

29         Section 1.  Subsection (3) of section 120.57, Florida

30  Statutes, is amended to read:

31         120.57  Additional procedures for particular cases.--

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  1         (3)  ADDITIONAL PROCEDURES APPLICABLE TO PROTESTS TO

  2  CONTRACT SOLICITATION BIDDING OR AWARD.--Agencies subject to

  3  this chapter shall utilize the uniform rules of procedure,

  4  which provide procedures for the resolution of protests

  5  arising from the contract bidding process. Such rules shall at

  6  least provide that:

  7         (a)  The agency shall post provide notice of its

  8  decision or intended decision concerning a bid solicitation or

  9  a contract award as follows:

10         1.  For a bid solicitation, notice of an a decision or

11  intended decision shall be given by United States mail or

12  other express delivery notice, by hand delivery, by posting at

13  the location at which the bids, proposals, or replies were

14  opened, or by electronic posting.

15         2.  For any decision of the Department of Management

16  Services concerning a request by an agency for approval of an

17  exceptional purchase under part I of chapter 287 and the rules

18  of the Department of Management Services, notice of an a

19  decision or intended decision shall be given by posting such

20  notice in the office of the Department of Management Services

21  or by electronic posting.

22         3.  For any other agency decision, notice of a decision

23  or intended decision shall be given either by posting the bid

24  tabulation at the location where the bids were opened or by

25  certified United States mail or other express delivery

26  service, return receipt requested.

27

28  The notice required by this paragraph shall contain the

29  following statement:  "Failure to file a protest within the

30  time prescribed in s. 120.57(3), Florida Statutes, shall

31

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  1  constitute a waiver of proceedings under chapter 120, Florida

  2  Statutes."

  3         (b)  Any person who is adversely affected by the

  4  agency's agency decision or intended decision shall file with

  5  the agency a notice of protest in writing within 72 hours

  6  after the posting of the bid tabulation or after receipt of

  7  the notice of a the agency decision. or intended decision and

  8  shall file a formal written protest within 10 days after

  9  filing the notice of protest. With respect to a protest of the

10  terms, conditions, and specifications contained in an

11  invitation to bid, or in a request for proposals, or an

12  invitation to negotiate, including any provisions governing

13  the methods for ranking bids, proposals, or replies, awarding

14  contracts, reserving rights of further negotiation, or the

15  modification or amendment of any contract, the notice of

16  protest shall be filed in writing within 72 hours after the

17  posting of the advertisement receipt of notice of the project

18  plans and specifications or intended project plans and

19  specifications in an invitation to bid, a or request for

20  proposals, or an invitation to negotiate. and The formal

21  written protest shall be filed within 10 days after the date

22  the notice of protest is filed. Failure to file a notice of

23  protest or failure to file a formal written protest shall

24  constitute a waiver of proceedings under this chapter. The

25  formal written protest shall state with particularity the

26  facts and law upon which the protest is based. Saturdays,

27  Sundays, and state legal holidays shall be excluded in the

28  computation of the 72-hour time periods provided by this

29  paragraph.

30         (c)  Upon receipt of the formal written protest which

31  has been timely filed, the agency shall stop the bid

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  1  solicitation process or the contract award process until the

  2  subject of the protest is resolved by final agency action,

  3  unless the agency head sets forth in writing particular facts

  4  and circumstances which require the continuance of the bid

  5  solicitation process or the contract award process without

  6  delay in order to avoid an immediate and serious danger to the

  7  public health, safety, or welfare.

  8         (d)1.  The agency shall provide an opportunity to

  9  resolve the protest by mutual agreement between the parties

10  within 7 days, excluding Saturdays, Sundays, and state legal

11  holidays, after receipt of a formal written protest.

12         2.  If the subject of a protest is not resolved by

13  mutual agreement within 7 days, excluding Saturdays, Sundays,

14  and state legal holidays, after receipt of the formal written

15  protest, and if there is no disputed issue of material fact,

16  an informal proceeding shall be conducted pursuant to

17  subsection (2) and applicable agency rules before a person

18  whose qualifications have been prescribed by rules of the

19  agency.

20         3.  If the subject of a protest is not resolved by

21  mutual agreement within 7 days, excluding Saturdays, Sundays,

22  and state legal holidays, after receipt of the formal written

23  protest, and if there is a disputed issue of material fact,

24  the agency shall refer the protest to the division for

25  proceedings under subsection (1).

26         (e)  Upon receipt of a formal written protest referred

27  pursuant to this subsection, the director of the division

28  shall expedite the hearing and assign an administrative law

29  judge who shall commence a hearing within 30 days after the

30  receipt of the formal written protest by the division and

31  enter a recommended order within 30 days after the hearing or

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  1  within 30 days after receipt of the hearing transcript by the

  2  administrative law judge, whichever is later. Each party shall

  3  be allowed 10 days in which to submit written exceptions to

  4  the recommended order.  A final order shall be entered by the

  5  agency within 30 days of the entry of a recommended order. The

  6  provisions of this paragraph may be waived upon stipulation by

  7  all parties.

  8         (f)  In a competitive-procurement protest to an

  9  invitation to bid or request for proposal procurement, no

10  submissions made after the bid or proposal opening that amend

11  or supplement amending or supplementing the bid or proposal

12  shall be considered. Unless otherwise provided by statute, the

13  burden of proof shall rest with the party protesting the

14  proposed agency action.  In a competitive-procurement protest,

15  other than a rejection of all bids, proposals, or replies, the

16  administrative law judge shall conduct a de novo proceeding to

17  determine whether the agency's proposed action is contrary to

18  the agency's governing statutes, the agency's rules or

19  policies, or the bid or proposal specifications contained in

20  the bid, proposal, or reply. The standard of proof for such

21  proceedings shall be whether the proposed agency action was

22  clearly erroneous, contrary to competition, arbitrary, or

23  capricious. In any protest bid-protest proceeding contesting

24  an intended agency action to reject all bids, proposals, or

25  replies, the standard of review by an administrative law judge

26  shall be whether the agency's intended action is illegal,

27  arbitrary, dishonest, or fraudulent.

28         Section 2.  Section 287.001, Florida Statutes, is

29  amended to read:

30         287.001  Legislative intent.--The Legislature

31  recognizes that fair and open competition is a basic tenet of

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  1  public procurement; that such competition reduces the

  2  appearance and opportunity for favoritism and inspires public

  3  confidence that contracts are awarded equitably and

  4  economically; and that documentation of the acts taken and

  5  effective monitoring mechanisms are important means of curbing

  6  any improprieties and establishing public confidence in the

  7  process by which commodities and contractual services are

  8  procured.  It is essential to the effective and ethical

  9  procurement of commodities and contractual services that there

10  be a system of uniform procedures to be utilized by state

11  agencies in managing and procuring commodities and contractual

12  services; that detailed justification of agency decisions in

13  the procurement of commodities and contractual services be

14  maintained; and that adherence by the agency and the vendor

15  contractor to specific ethical considerations be required.

16         Section 3.  Section 287.012, Florida Statutes, is

17  amended to read:

18         287.012  Definitions.--The following definitions shall

19  apply in this part:

20         (1)  "Agency" means any of the various state officers,

21  departments, boards, commissions, divisions, bureaus, and

22  councils and any other unit of organization, however

23  designated, of the executive branch of state government.

24  "Agency" does not include the Board of Regents or the State

25  University System.

26         (2)  "Agency head" means, with respect to an agency

27  headed by a collegial body, the executive director or chief

28  administrative officer of the agency.

29         (3)  "Artist" means an individual or group of

30  individuals who profess and practice a demonstrated creative

31  talent and skill in the area of music, dance, drama, folk art,

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  1  creative writing, painting, sculpture, photography, graphic

  2  arts, craft arts, industrial design, costume design, fashion

  3  design, motion pictures, television, radio, or tape and sound

  4  recording or in any other related field.

  5         (4)  "Best value" means the highest overall value to

  6  the state based on objective factors that include, but are not

  7  limited to, design, need, price, quality, and workmanship.

  8         (5)(4)  "Commodity" means any of the various supplies,

  9  materials, goods, merchandise, food, equipment, information

10  technology resources, and other personal property, including a

11  mobile home, trailer, or other portable structure with floor

12  space of less than 5,000 3,000 square feet, purchased, leased,

13  or otherwise contracted for by the state and its agencies.

14  "Commodity" also includes interest on deferred-payment

15  commodity contracts approved pursuant to s. 287.063 entered

16  into by an agency for the purchase of other commodities.

17  However, commodities purchased for resale are excluded from

18  this definition. Further, a prescribed drug, medical supply,

19  or device required by a licensed health care provider as a

20  part of providing health services involving examination,

21  diagnosis, treatment, prevention, medical consultation, or

22  administration for clients at the time the service is provided

23  is not considered to be a "commodity." Printing of

24  publications shall be considered a commodity when let upon

25  contract pursuant to s. 283.33, whether purchased for resale

26  or not.

27         (6)(5)  "Competitive sealed bids," or "competitive

28  sealed proposals," or "competitive sealed replies" refers to

29  the process of receiving receipt of two or more sealed bids,

30  or proposals, or replies submitted by responsive vendors and

31  qualified bidders or offerors and includes bids, or proposals,

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  1  or replies transmitted by electronic means in lieu of or in

  2  addition to written bids, or proposals, or replies.

  3         (7)(6)  "Contractor" means a person who contracts to

  4  sell commodities or contractual services to an agency.

  5         (8)(7)  "Contractual service" means the rendering by a

  6  vendor contractor of its time and effort rather than the

  7  furnishing of specific commodities. The term applies only to

  8  those services rendered by individuals and firms who are

  9  independent contractors, and such services may include, but

10  are not limited to, evaluations; consultations; maintenance;

11  accounting; security; management systems; management

12  consulting; educational training programs; research and

13  development studies or reports on the findings of consultants

14  engaged thereunder; and professional, technical, and social

15  services. "Contractual service" does not include any contract

16  for the furnishing of labor or materials for the construction,

17  renovation, repair, modification, or demolition of any

18  facility, building, portion of building, utility, park,

19  parking lot, or structure or other improvement to real

20  property entered into pursuant to chapter 255 and rules

21  adopted thereunder.

22         (9)(8)  "Department" means the Department of Management

23  Services.

24         (10)  "Eligible user" means any person or entity

25  authorized by the department pursuant to rule to purchase from

26  state term contracts or to use the online procurement system.

27         (11)(9)  "Exceptional purchase" means any purchase of

28  commodities or contractual services excepted by law or rule

29  from the requirements for competitive solicitations

30  solicitation or acquisition, including, but not limited to,

31  purchases from a single source;, purchases upon receipt of

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  1  less than two responsive bids, or proposals, or replies;

  2  purchases without publication of notice in the Florida

  3  Administrative Weekly;, and exceptions granted by the

  4  department for a purchase of commodities from other than a

  5  state term contract vendor.

  6         (12)(10)  "Extension" means an increase in the time

  7  allowed for the contract period due to circumstances which,

  8  without fault of either party, make performance impracticable

  9  or impossible, or which prevent a new contract from being

10  executed, with or without a proportional increase in the total

11  dollar amount, with any increase to be based on the method and

12  rate previously established in the contract.

13         (13)  "Information technology" has the same meaning as

14  that provided in s. 282.0041.

15         (14)(11)  "Invitation to bid" means a written

16  solicitation for competitive sealed bids with the title, date,

17  and hour of the public bid opening designated and specifically

18  defining the commodity, group of commodities, or services for

19  which bids are sought.  It includes instructions prescribing

20  all conditions for bidding and shall be distributed to all

21  prospective bidders simultaneously.  The invitation to bid is

22  used when the agency chooses to is capable of specifically

23  define defining the scope of work for which a contractual

24  service is required or when the agency is capable of

25  establishing precise specifications defining the actual

26  commodity or group of commodities required.  A written

27  solicitation includes a solicitation published or transmitted

28  by electronic means.

29         (15)  "Invitation to negotiate" means a written

30  solicitation for competitive sealed replies to select one or

31  more vendors with which to commence negotiations for the

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  1  procurement of commodities or contractual services. The

  2  invitation to negotiate is used when the agency determines

  3  that negotiations may be necessary for the state to receive

  4  the best value. A written solicitation includes a solicitation

  5  published or transmitted by electronic means.

  6         (16)(12)  "Minority business enterprise" has the same

  7  meaning as that provided in s. 288.703.

  8         (17)  "Office" means the Office of Supplier Diversity

  9  of the Department of Management Services.

10         (13)  "Qualified bidder," "responsible bidder,"

11  "qualified offeror," or "responsible offeror" means a person

12  who has the capability in all respects to perform fully the

13  contract requirements and has the integrity and reliability

14  which will ensure good faith performance.

15         (18)(14)  "Renewal" means contracting with the same

16  vendor contractor for an additional contract period after the

17  initial contract period, only if pursuant to contract terms

18  specifically providing for such renewal.

19         (19)  "Request for information" means a written request

20  made by an agency or eligible user to vendors for information

21  about commodities or contractual services. Responses to these

22  requests are not offers and cannot be accepted by the agency

23  or eligible user to form a binding contract.

24         (20)(15)  "Request for proposals" means a written

25  solicitation for competitive sealed proposals with the title,

26  date, and hour of the public opening designated. A written

27  solicitation includes a solicitation published or transmitted

28  by electronic means. The request for proposals is used when

29  the agency chooses not to is incapable of specifically define

30  defining the scope of work for which the commodity, group of

31  commodities, or contractual service is required and when the

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  1  agency is requesting that a qualified offeror propose a

  2  commodity, group of commodities, or contractual service to

  3  meet the specifications of the solicitation document.  A

  4  written solicitation includes a solicitation published or

  5  transmitted by electronic means. A request for proposals

  6  includes, but is not limited to, general information,

  7  applicable laws and rules, functional or general

  8  specifications, statement of work, proposal instructions, and

  9  evaluation criteria. Requests for proposals shall state the

10  relative importance of price and any other evaluation

11  criteria.

12         (21)  "Request for a quote" means an oral or written

13  request for written pricing or services information from a

14  state term contract vendor for commodities and contractual

15  services available on state term contract from that vendor.

16         (22)  "Responsible vendor" means a vendor who has the

17  capability in all respects to fully perform the contract

18  requirements and has the integrity and reliability that will

19  ensure good faith performance.

20         (23)(16)  "Responsive bid," or "responsive proposal,"

21  or "responsive reply" means a bid, or proposal, or reply

22  submitted by a responsive, and responsible vendor or

23  qualified, bidder or offeror which conforms in all material

24  respects to the solicitation invitation to bid or request for

25  proposals.

26         (24)(17)  "Responsive vendor bidder" or "responsive

27  offeror" means a vendor that person who has submitted a bid,

28  or proposal, or reply which conforms in all material respects

29  to the solicitation invitation to bid or request for

30  proposals.

31

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  1         (25)  "Solicitation" means an invitation to bid, a

  2  request for proposals, or an invitation to negotiate.

  3         (26)  "State term contract" means a term contract that

  4  is procured by the department pursuant to s. 287.042 and that

  5  is used by agencies and eligible users pursuant to s. 287.056.

  6         (27)(18)  "Term contract" means an indefinite quantity

  7  contract wherein a party agrees to furnish commodities or

  8  contractual services during a defined prescribed period of

  9  time, the expiration of which concludes the contract.

10         (19)  "Office" means the Office of Supplier Diversity

11  of the Department of Management Services.

12         (20)  "Invitation to negotiate" means a written

13  solicitation that calls for responses to select one or more

14  persons or business entities with which to commence

15  negotiations for the procurement of commodities or contractual

16  services.

17         (21)  "Request for a quote" means a solicitation that

18  calls for pricing information for purposes of competitively

19  selecting and procuring commodities and contractual services

20  from qualified or registered vendors.

21         (22)  "Information technology" means equipment,

22  hardware, software, firmware, programs, systems, networks,

23  infrastructure, media, and related material used to

24  automatically, electronically, and wirelessly collect,

25  receive, access, transmit, display, store, record, retrieve,

26  analyze, evaluate, process, classify, manipulate, manage,

27  assimilate, control, communicate, exchange, convert, converge,

28  interface, switch, or disseminate information of any kind or

29  form.

30         Section 4.  Subsection (2) of section 287.017, Florida

31  Statutes, is amended to read:

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  1         287.017  Purchasing categories, threshold amounts;

  2  procedures for automatic adjustment by department.--

  3         (2)  The department shall adopt rules to annually

  4  adjust the amounts provided in subsection (1) based upon the

  5  rate of change of a nationally recognized price index.  Such

  6  rules shall include, but not be limited to, the following:

  7         (a)  Designation of the nationally recognized price

  8  index or component thereof used to calculate the proper

  9  adjustment authorized in this section.

10         (b)  The procedure for rounding results.

11         (c)  The effective date of each annual adjustment based

12  upon the previous calendar year data.

13         Section 5.  Section 287.022, Florida Statutes, is

14  amended to read:

15         287.022  Purchase of insurance.--

16         (1)  Insurance, while not a commodity, nevertheless

17  shall be purchased for all agencies by the department, except

18  that agencies may purchase title insurance for land

19  acquisition and may make emergency purchases of insurance

20  pursuant to s. 287.057(6)(4)(a). The procedures for purchasing

21  insurance, whether the purchase is made by the department or

22  by the agencies, shall be the same as those set forth herein

23  for the purchase of commodities.

24         (2)  When an insurer or agent pays a commission or any

25  portion thereof to any person, on insurance purchased under

26  this part, such payment shall be reported to the department in

27  writing and under oath within 30 days thereafter.  Any failure

28  to report as required herein shall subject the insurer or

29  agent to the penalties provided in s. 624.15.

30         (3)  The department of Management Services and the

31  Division of State Group Insurance shall not prohibit or limit

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  1  any properly licensed insurer, health maintenance

  2  organization, prepaid limited health services organization, or

  3  insurance agent from competing for any insurance product or

  4  plan purchased, provided, or endorsed by the department or the

  5  division on the basis of the compensation arrangement used by

  6  the insurer or organization for its agents.

  7         Section 6.  Section 287.032, Florida Statutes, is

  8  amended to read:

  9         287.032  Purpose of department.--It shall be the

10  purpose of the Department of Management Services:

11         (1)  To promote efficiency, economy, and the

12  conservation of energy and to effect coordination in the

13  purchase of commodities and services for the state.

14         (2)  To provide uniform commodity and contractual

15  service procurement policies, rules, procedures, and forms for

16  use by the various agencies and eligible users in procuring

17  contractual services.

18         (3)  To procure and distribute state-owned surplus

19  tangible personal property and federal surplus tangible

20  personal property allocated to the state by the Federal

21  Government.

22         Section 7.  Section 287.042, Florida Statutes, is

23  amended to read:

24         287.042  Powers, duties, and functions.--The department

25  shall have the following powers, duties, and functions:

26         (1)(a)  To canvass all sources of supply, establish and

27  maintain a vendor list, and contract for the purchase, lease,

28  or acquisition in any manner, including purchase by

29  installment sales or lease-purchase contracts which may

30  provide for the payment of interest on unpaid portions of the

31  purchase price, of all commodities and contractual services

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  1  required by any agency under this chapter competitive bidding

  2  or by contractual negotiation.  Any contract providing for

  3  deferred payments and the payment of interest shall be subject

  4  to specific rules adopted by the department.

  5         (b)  The department may remove from its vendor list any

  6  source of supply which fails to fulfill any of its duties

  7  specified in a contract with the state.  It may reinstate any

  8  such source of supply when it is satisfied that further

  9  instances of default will not occur.

10         (c)  In order to promote cost-effective procurement of

11  commodities and contractual services, the department or an

12  agency may enter into contracts that limit the liability of a

13  vendor consistent with s. 672.719.

14         (d)  The department shall issue commodity numbers for

15  all products of the corporation operating the correctional

16  industry program which meet or exceed department

17  specifications.

18         (e)  The department shall, beginning October 1, 1991,

19  include the products offered by the corporation on any listing

20  prepared by the department which lists term contracts executed

21  by the department. The products or services shall be placed on

22  such list in a category based upon specification criteria

23  developed through a joint effort of the department and the

24  corporation and approved by the department.

25         (f)  The corporation may submit products and services

26  to the department for testing, analysis, and review relating

27  to the quality and cost comparability.  If, after review and

28  testing, the department approves of the products and services,

29  the department shall give written notice thereof to the

30  corporation. The corporation shall pay a reasonable fee

31

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  1  charged for testing its products by the Department of

  2  Agriculture and Consumer Services.

  3         (g)  The department may collect fees for the use of its

  4  electronic information services. The fees may be imposed on an

  5  individual transaction basis or as a fixed subscription for a

  6  designated period of time. At a minimum, the fees shall be

  7  determined in an amount sufficient to cover the department's

  8  projected costs of such services, including overhead in

  9  accordance with the policies of the Department of Management

10  Services for computing its administrative assessment.  All

11  fees collected pursuant to this paragraph shall be deposited

12  in the Grants and Donations Trust Fund for disbursement as

13  provided by law.

14         (2)(a)  To establish plan and coordinate purchases in

15  volume and to negotiate and execute purchasing agreements and

16  procure state term contracts, pursuant to this chapter, for

17  commodities and contractual services under which state

18  agencies shall, and eligible users may, make purchases

19  pursuant to s. 287.056, and under which a federal, county,

20  municipality, institutions qualified pursuant to s. 240.605,

21  private nonprofit community transportation coordinator

22  designated pursuant to chapter 427, while conducting business

23  related solely to the Commission for the Transportation

24  Disadvantaged, or other local public agency may make

25  purchases. The department may restrict purchases from some

26  term contracts to state agencies only for those term contracts

27  where the inclusion of other governmental entities will have

28  an adverse effect on competition or to those federal

29  facilities located in this state. In such planning or

30  purchasing the Office of Supplier Diversity may monitor to

31  ensure that opportunities are afforded for contracting with

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  1  minority business enterprises. The department, for state term

  2  contracts, and all agencies, for multiyear contractual

  3  services or term contracts, shall explore reasonable and

  4  economical means to utilize certified minority business

  5  enterprises. Purchases by any county, municipality, private

  6  nonprofit community transportation coordinator designated

  7  pursuant to chapter 427, while conducting business related

  8  solely to the Commission for the Transportation Disadvantaged,

  9  or other local public agency under the provisions in the state

10  purchasing contracts, and purchases, from the corporation

11  operating the correctional work programs, of products or

12  services that are subject to paragraph (1)(f), are exempt from

13  the competitive solicitation sealed bid requirements otherwise

14  applying to their purchases.

15         (b)  As an alternative to any provision in s.

16  120.57(3)(c), the department may proceed with the competitive

17  bid solicitation or contract award process of a term contract

18  bid when the secretary of the department or his or her

19  designee sets forth in writing particular facts and

20  circumstances which demonstrate that the delay incident to

21  staying the solicitation bid process or contract award process

22  would be detrimental to the interests of the state.  After the

23  award of a contract resulting from a competitive solicitation

24  bid in which a timely protest was received and in which the

25  state did not prevail, the contract may be canceled and

26  reawarded to the prevailing party.

27         (c)1.  Any person who files an action protesting an a

28  decision or intended decision pertaining to contracts

29  administered by the department, a water management district,

30  or an a state agency pursuant to s. 120.57(3)(b) shall post

31  with the department, the water management district, or the

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  1  state agency at the time of filing the formal written protest

  2  a bond payable to the department, the water management

  3  district, or the state agency in an amount equal to 1 percent

  4  of the department's, the water management district's, or the

  5  state agency's estimate of the total volume of the contract.

  6  The or $5,000, whichever is less, which bond shall be

  7  conditioned upon the payment of all costs which may be

  8  adjudged against him or her in the administrative hearing in

  9  which the action is brought and in any subsequent appellate

10  court proceeding. The estimate of the total volume of the

11  contract shall be based on the protesting vendor's price as

12  included in its bid, proposal, or reply or, if the protesting

13  party did not submit a bid, proposal, or reply the agency may

14  estimate the contract amount based on previous or existing

15  contract amounts for similar commodities or services.  This

16  estimated amount is not subject to protest.

17         2.  For protests of decisions or intended decisions of

18  the department pertaining to agencies' requests for approval

19  of exceptional purchases, the bond shall be in an amount equal

20  to 1 percent of the requesting agency's estimate of the

21  contract amount for the exceptional purchase requested or

22  $5,000, whichever is less. The estimate of the total volume of

23  the contract shall be based on the price submitted by the

24  selected vendor in its bid, proposal, or reply. This estimated

25  amount is not subject to protest.

26         3.  In lieu of a bond, the department, the water

27  management district, or state agency may, in either case,

28  accept a cashier's check, or money order, or other official

29  bank check in the amount of the bond. If, after completion of

30  the administrative hearing process and any appellate court

31  proceedings, the department, water management district, or

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  1  agency prevails, it shall recover all costs and charges which

  2  shall be included in the final order or judgment, excluding

  3  attorney's fees. The prevailing party shall be entitled to

  4  recover attorney's fees. This section shall not apply to

  5  protests filed by the Office of Supplier Diversity. Upon

  6  payment of such costs and charges by the person protesting the

  7  award, the bond, cashier's check, or money order, or other

  8  official bank check shall be returned to him or her. If the

  9  person protesting the award prevails, he or she shall recover

10  from the department, agency, or water management district, all

11  costs and charges which shall be included in the final order

12  of judgment, excluding attorney's fees.

13         (d)  The terms, conditions, and specifications of a

14  request for proposal, request for quote, invitation to bid, or

15  invitation to negotiate, including any provisions governing

16  the methods for ranking proposals, awarding contracts,

17  reserving rights of further negotiation, or the modification

18  of amendment of any contract, are subject to challenge only by

19  filing a protest within 72 hours after the notice of the

20  terms, conditions, or specifications as provided in s.

21  120.57(3)(b).

22         (3)  To have general supervision, through the state

23  agencies, of all storerooms and stores operated by the

24  agencies and to have supervision of inventories of all

25  commodities belonging to the state agencies.  The duties

26  imposed by this section do not relieve any state agency from

27  accountability for commodities under its control.

28         (3)(4)  To establish a system of coordinated, uniform

29  procurement policies, procedures, and practices to be used by

30  agencies in acquiring commodities and contractual services,

31  which shall include, but not be limited to:

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  1         (a)  Development of a list of interested vendors to be

  2  maintained by classes of commodities and contractual services.

  3  This list shall not be used to prequalify vendors or to

  4  exclude any interested vendor from bidding.

  5         (b)  Development of procedures for advertising

  6  solicitations. Such the releasing of requests for proposals,

  7  requests for quotes, invitations to bid, invitations to

  8  negotiate, and other competitive acquisitions which procedures

  9  shall include, but are not limited to, notice by publication

10  in the Florida Administrative Weekly, by electronic

11  publication on Government Services Direct, or by mail, by

12  facsimile, or by other means established by rule. Notice shall

13  be given at least 10 days before the date set for submittal of

14  proposals, or bids, or replies, unless the department or

15  agency demonstrates in writing that a shorter period of time

16  is necessary to avoid harming the interests of the state. The

17  Office of Supplier Diversity may consult with the department

18  and agencies regarding the development of solicitation bid

19  distribution procedures to ensure that maximum distribution is

20  afforded to certified minority business enterprises as defined

21  in s. 288.703.

22         (c)  Development of procedures for the receipt and

23  opening of bids, responses, quotes, or proposals, or replies

24  by an agency. Such procedures shall provide the Office of

25  Supplier Diversity an opportunity to monitor and ensure that

26  the contract award is consistent with the requirements of s.

27  287.09451.

28         (d)  Development of procedures to be used by an agency

29  in deciding to contract, including, but not limited to,

30  identifying and assessing in writing project needs and

31  requirements, availability of agency employees, budgetary

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  1  constraints or availability, facility equipment availability,

  2  current and projected agency workload capabilities, and the

  3  ability of any other state agency to perform the services.

  4         (e)  Development of procedures to be used by an agency

  5  in maintaining a contract file for each contract which shall

  6  include, but not be limited to, all pertinent information

  7  relating to the contract during the preparatory stages;, a

  8  copy of the solicitation; invitation to bid or request for

  9  proposals, documentation relating to the solicitation bid

10  process;, opening of bids, proposals, or replies; evaluation

11  and tabulation of bids;, and determination and notice of award

12  of contract.

13         (f)  Development of procedures to be used by an agency

14  for issuing solicitations invitations to bid, invitations to

15  negotiate, requests for proposal, requests for quote, or other

16  competitive procurement processes that include requirements to

17  describe commodities, services, scope of work, and

18  deliverables in a manner that promotes competition.

19         (g)  Development of procedures to be used by an agency

20  when issuing requests for information and requests for quotes.

21         (4)(5)(a)  To prescribe the methods of securing

22  competitive sealed bids, responses, quotes, and proposals, and

23  replies. Such methods may include, but are not limited to,

24  procedures for identifying vendors; setting qualifications;

25  conducting conferences or written question and answer periods

26  for purposes of responding to vendor's questions; evaluating

27  responses, bids, and proposals, and replies; ranking

28  respondents and proposers; selecting vendors invitees and

29  proposers; and conducting negotiations.

30         (b)  To prescribe, in consultation with the State

31  Technology Office, procedures for procuring information

                                  22

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  1  technology and information technology consultant services

  2  which provide for public announcement and qualification,

  3  competitive solicitations, negotiations selection, competitive

  4  negotiation, contract award, and prohibition against

  5  contingent fees. Such procedures shall be limited to

  6  information technology consultant contracts for which the

  7  total project costs, or planning or study activities, are

  8  estimated to exceed the threshold amount provided for in s.

  9  287.017, for CATEGORY TWO.

10         (5)(6)  To prescribe specific commodities and

11  quantities to be purchased locally.

12         (6)(7)(a)  To govern the purchase by any agency of any

13  commodity or contractual service and to establish standards

14  and specifications for any commodity.

15         (b)  Except for the purchase of insurance, the

16  department may delegate to agencies the authority for the

17  procurement of and contracting for, or the purchase, lease, or

18  acquisition of, commodities or contractual services.

19         (7)(8)  To establish definitions and classes of

20  commodities and contractual services.  Agencies shall follow

21  the definitions and classes of commodities and contractual

22  services established by the department in acquiring or

23  purchasing commodities or contractual services.  The authority

24  of the department under this section shall not be construed to

25  impair or interfere with the determination by state agencies

26  of their need for, or their use of, services including

27  particular specifications.

28         (8)(9)  To provide furnish copies of any commodity and

29  contractual service purchasing rules to the Comptroller and

30  all agencies, through an electronic medium or other means

31  affected thereby.  The Comptroller shall not approve any

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  1  account or direct any payment of any account for the purchase

  2  of any commodity or the procurement of any contractual service

  3  covered by a purchasing or contractual service rule except as

  4  authorized therein.  The department shall furnish copies of

  5  rules adopted by the department to any county, municipality,

  6  or other local public agency requesting them.

  7         (9)(10)  To require that every agency furnish

  8  information relative to its commodity and contractual services

  9  purchases and methods of purchasing commodities and

10  contractual services to the department when so requested.

11         (10)(11)  To prepare statistical data concerning the

12  method of procurement, terms, usage, and disposition of

13  commodities and contractual services by state agencies. All

14  agencies shall furnish such information for this purpose to

15  the office and to the department, as the department or office

16  may call for, but no less frequently than annually, on such

17  forms or in such manner as the department may prescribe.

18         (11)(12)  To establish and maintain programs for the

19  purpose of disseminating information to government, industry,

20  educational institutions, and the general public concerning

21  policies, procedures, rules, and forms for the procurement of

22  commodities and contractual services.

23         (12)(13)  Except as otherwise provided herein, to adopt

24  rules necessary to carry out the purposes of this section,

25  including the authority to delegate to any state agency any

26  and all of the responsibility conferred by this section,

27  retaining to the department any and all authority for

28  supervision thereof.  Such purchasing of commodities and

29  procurement of contractual services by state agencies shall be

30  in strict accordance with the rules and procedures prescribed

31  by the department of Management Services.

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  1         (13)(14)  If the department determines that it is in

  2  the best interest of the state, to award to multiple suppliers

  3  contracts for commodities and contractual services established

  4  by the department for use by all agencies. Such awards may be

  5  on a statewide or regional basis. If regional contracts are

  6  established by the department, multiple supplier awards may be

  7  based upon multiple awards for regions.  Agencies may award

  8  contracts to the responsible and lowest qualified responsive

  9  vendor bidder on a statewide or regional basis.

10         (14)(15)  To procure and distribute state-owned surplus

11  tangible personal property and federal surplus tangible

12  personal property allocated to the state by the Federal

13  Government.

14         (15)(16)(a)  To enter into joint agreements with

15  governmental agencies, as defined in s. 163.3164(10), for the

16  purpose of pooling funds for the purchase of commodities or

17  information technology that can be used by multiple agencies.

18  However, the department shall consult with the State

19  Technology Office on joint agreements that involve the

20  purchase of information technology.  Agencies entering into

21  joint purchasing agreements with the department or the State

22  Technology Office shall authorize the department or the State

23  Technology Office to contract for such purchases on their

24  behalf.

25         (b)  Each agency that has been appropriated or has

26  existing funds for such purchases, shall, upon contract award

27  by the department, transfer their portion of the funds into

28  the department's Grants and Donations Trust Fund for payment

29  by the department.  These funds shall be transferred by the

30  Executive Office of the Governor pursuant to the agency budget

31  amendment request provisions in chapter 216.

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  1         (c)  Agencies that sign such joint agreements are

  2  financially obligated for their portion of the agreed-upon

  3  funds. If any agency becomes more than 90 days delinquent in

  4  paying such funds, the department of Management Services shall

  5  certify to the Comptroller the amount due, and the Comptroller

  6  shall transfer the amount due to the Grants and Donations

  7  Trust Fund of the department from any of the agency's

  8  available funds. The Comptroller shall report all such

  9  transfers and the reasons for such transfers to the Executive

10  Office of the Governor and the legislative appropriations

11  committees.

12         (16)(17)(a)  To evaluate contracts let by the Federal

13  Government, another state, or a political subdivision for the

14  provision of commodities and contract services, and, when it

15  is determined to be cost-effective and in the best interest of

16  the state, to enter into a written agreement authorizing a

17  state agency to make purchases under a contract approved by

18  the department and let by the Federal Government, another

19  state, or a political subdivision.

20         (b)  For contracts pertaining to the provision of

21  information technology, the State Technology Office, in

22  consultation with the department, shall assess the

23  technological needs of a particular agency, evaluate the

24  contracts, and determine whether to enter into a written

25  agreement with the letting federal, state, or political

26  subdivision body to provide information technology for a

27  particular agency.

28         Section 8.  Section 287.045, Florida Statutes, is

29  amended to read:

30         287.045  Procurement of products and materials with

31  recycled content.--

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  1         (1)(a)  The department of Management Services, in

  2  cooperation with the Department of Environmental Protection,

  3  shall review and revise existing procurement procedures and

  4  specifications for the purchase of products and materials to

  5  eliminate any procedures and specifications that explicitly

  6  discriminate against products and materials with recycled

  7  content except where such procedures and specifications are

  8  necessary to protect the public health, safety, and welfare.

  9         (b)  Each state agency shall review and revise its

10  procurement procedures and specifications for the purchase of

11  products and materials to eliminate any procedures and

12  specifications that explicitly discriminate against products

13  and materials with recycled content, except if such procedures

14  and specifications are necessary to protect the public health,

15  safety, and welfare.

16         (2)(a)  The department and other agencies each state

17  agency shall review and revise their its procurement

18  procedures and specifications for the purchase of products and

19  materials to ensure to the maximum extent feasible that each

20  agency uses state contracts to purchase products or materials

21  that may be recycled or reused when these products or

22  materials are discarded.

23         (b)  The Auditor General shall assist in monitoring the

24  product procurement requirements.

25         (3)  As part of the review and revision required in

26  subsection (2), the department and other agencies each agency

27  shall review their its procurement provisions and

28  specifications for the purchase of products and materials to

29  determine which products or materials with recycled content

30  could be procured by the department or other agencies and the

31  amount of recycled content that can technologically be

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  1  contained in such products or materials. The department and

  2  other agencies must use the amounts of recycled content and

  3  postconsumer recovered material determined by the department

  4  in issuing solicitations invitations to bid for contracts for

  5  the purchase of such products or materials.

  6         (4)  Upon completion of the review required in

  7  subsection (3), the department or other agencies an agency

  8  shall require that a person who submits a bid, proposal, or

  9  reply for a contract for the purchase of products or materials

10  identified in subsection (3) and who wishes to be considered

11  for the price preference described in subsection (5) certify

12  in writing the percentage of recycled content in the product

13  or material that is subject to the bid, proposal, or reply.  A

14  person may certify that the product or material contains no

15  recycled content.

16         (5)  Upon evaluation of bids, proposals, or replies for

17  every public contract that involves the purchase of products

18  or materials identified in subsection (3), the department or

19  other an agency shall identify the lowest responsible and

20  responsive vendor bidder and other responsible and responsive

21  vendors bidders who have certified that the products or

22  materials contain at least the minimum percentage of recycled

23  content and postconsumer recovered material that is set forth

24  in the solicitation invitation for the bids.  The department

25  or agency may consider life-cycle costing when evaluating a

26  bid, proposal, or reply on a product that consists of recycled

27  materials.  The department shall adopt rules that specify the

28  criteria to be used when considering life-cycle costing in

29  evaluating bids, proposals, and replies.  The rules must take

30  into consideration the specified warranty periods for products

31  and the comparative expected service life relative to the cost

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  1  of the products.  In awarding a contract for the purchase of

  2  products or materials, the department or other an agency may

  3  allow up to a 10-percent price preference to a responsible and

  4  responsive vendor bidder who has certified that the products

  5  or materials contain at least the minimum percentage of

  6  recycled content and postconsumer recovered material and up to

  7  an additional 5-percent price preference to a responsible and

  8  responsive vendor bidder who has certified that the products

  9  or material are made of materials recovered in this state.

10  The amount of the price preference must be commensurate with

11  the certified amounts of recycled material and postconsumer

12  recovered material and materials recycled from products in

13  this state, contained in the product or materials on a sliding

14  scale as established by department rule, which rule shall not

15  become effective prior to November 1, 1994.  Reusable

16  materials and products shall be used where economically and

17  technically feasible.  If no vendors bidders offer products or

18  materials with measurable life-cycle costing factors or the

19  minimum prescribed recycled and postconsumer content, the

20  contract must be awarded to the lowest qualified responsible

21  and responsive vendor bidder.

22         (6)  For the purposes of this section, "recycled

23  content" means materials that have been recycled that are

24  contained in the products or materials to be procured,

25  including, but not limited to, paper, aluminum, steel, glass,

26  plastics, and composted material.  The term does not include

27  the virgin component of internally generated scrap that is

28  commonly used in industrial or manufacturing processes or such

29  waste or scrap purchased from another manufacturer who

30  manufactures the same or a closely related product. Recycled

31

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  1  content printing and fine writing grades of paper shall

  2  contain at least 10 percent postconsumer recovered materials.

  3         (7)  Any person may request the department to evaluate

  4  a product or material with recycled content if the product or

  5  material is eligible for inclusion under state contracts.  The

  6  department shall review each reasonable proposal to determine

  7  its merit and, if it finds that the product or material may be

  8  used beneficially, it may incorporate that product or material

  9  into its procurement procedures.

10         (8)  The department and other agencies each state

11  agency shall review and revise their its procedures and

12  specifications on a continuing basis to encourage the use of

13  products and materials with recycled content and postconsumer

14  recovered material and shall, in developing new procedures and

15  specifications, encourage the use of products and materials

16  with recycled content and postconsumer recovered material.

17         (9)  After November 1, 1994, the department may

18  discontinue contracting for products or materials the recycled

19  content of which does not meet the requirements of subsection

20  (3) if it determines that products or materials meeting those

21  requirements are available at a cost not to exceed an

22  additional 10 percent of comparable virgin products.

23         (10)  An A state agency, or a vendor person contracting

24  with such agency with respect to work performed under

25  contract, must procure products or materials with recycled

26  content if the department determines that those products or

27  materials are available pursuant to subsection (5).

28  Notwithstanding any other provision to the contrary, for the

29  purpose of this section, the term "agency" means any of the

30  various state officers, departments, boards, commissions,

31  divisions, bureaus, and councils and any other unit of

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  1  organization, however designated, of the executive branch

  2  including the Department of the Lottery, the legislative

  3  branch, the judicial branch, and the State University and

  4  College Boards of Trustees, and state universities and

  5  colleges System.  A decision not to procure such items must be

  6  based on the department's determination that such procurement

  7  is not reasonably available within an acceptable period of

  8  time or fails to meet the performance standards set forth in

  9  the applicable specifications or fails to meet the performance

10  standards of the agency.

11         (11)  Each state agency shall report annually to the

12  department its total expenditures on, and use of, products

13  with recycled content and the percentage of its budget that

14  represents purchases of similar products made from virgin

15  materials.  The department shall design a uniform reporting

16  mechanism and prepare annual summaries of statewide purchases

17  delineating those with recycled content to be submitted to the

18  Governor, the President of the Senate, and the Speaker of the

19  House of Representatives.

20         Section 9.  Section 287.056, Florida Statutes, is

21  amended to read:

22         287.056  Agency Purchases from state term agreements

23  and contracts procured executed by the department.--

24         (1)  Agencies shall, and eligible users may, purchase

25  commodities and contractual services from the purchasing

26  agreements established and state term contracts procured

27  negotiated and executed by the department, pursuant to this

28  chapter as authorized in s. 287.042(2).

29         (2)  Agencies may have the option to purchase

30  commodities or contractual services from state term any

31  written agreements or contracts procured negotiated and

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  1  executed by the department, pursuant to this chapter, which

  2  contain a user surcharge pursuant to s. 287.1345 or such other

  3  agreements as determined by the department.

  4         (3)  Agencies and eligible users may use a request for

  5  quote to obtain written pricing or service information from a

  6  state term contract vendor for commodities or contractual

  7  services available on state term contract from that vendor.

  8  The purpose of a request for quote shall be to determine

  9  whether a price lower than the state term contract price is

10  available. Use of a request for quote shall not constitute an

11  agency decision subject to protest under s. 120.57(3).

12         Section 10.  Section 287.057, Florida Statutes, is

13  amended to read:

14         287.057  Procurement of commodities or contractual

15  services.--

16         (1)(a)  Unless otherwise authorized by law, all

17  contracts for the purchase of commodities or contractual

18  services in excess of the threshold amount provided in s.

19  287.017 for CATEGORY TWO shall be awarded by competitive

20  sealed bidding. An invitation to bid shall be made available

21  simultaneously to all vendors and issued which shall include a

22  detailed description of the commodities or contractual

23  services sought; the time and date for the receipt submittal

24  of bids and of the public opening; and all contractual terms

25  and conditions applicable to the procurement of commodities or

26  contractual services, including the criteria which shall

27  include, but need not be limited to, price, to be used in

28  determining acceptability of the bid.  If the agency

29  contemplates renewal of the contract, it shall be so stated in

30  the invitation to bid.  The bid shall include the price for

31  each year for which the contract may be renewed. Evaluation of

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  1  bids shall include consideration of the total cost for each

  2  year as submitted quoted by the vendor bidder.  No Criteria

  3  may be used in determining acceptability of the bid that were

  4  was not set forth in the invitation to bid may not be used in

  5  determining responsiveness of the bid.

  6         (b)  The contract shall be awarded with reasonable

  7  promptness by written notice to the responsible qualified and

  8  responsive vendor that bidder who submits the lowest

  9  responsive bid.  This bid must be determined in writing to

10  meet the requirements and criteria set forth in the invitation

11  to bid.

12         (2)(a)  When an agency determines in writing that the

13  use of competitive sealed bidding is not practicable,

14  commodities or contractual services shall be procured by

15  competitive sealed proposals.  A request for proposals shall

16  be made available simultaneously to all vendors and shall

17  include which includes a statement of the commodities or

18  contractual services sought, the time and date for the receipt

19  of proposals and of the public opening, and all contractual

20  terms and conditions applicable to the procurement of

21  commodities or contractual services, including the criteria,

22  which shall include, but need not be limited to, price, to be

23  used in determining acceptability of the proposal shall be

24  issued. The relative importance of price and other evaluation

25  criteria shall be indicated.  If the agency contemplates

26  renewal of the commodities or contractual services contract,

27  it shall be so stated in the request for proposals.  The

28  proposal shall include the price for each year for which the

29  contract may be renewed.  Evaluation of proposals shall

30  include consideration of the total cost for each year as

31  submitted quoted by the vendor offeror.  To assure full

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  1  understanding of and responsiveness to the solicitation

  2  requirements, discussions may be conducted with qualified

  3  offerors.  The offerors shall be accorded fair and equal

  4  treatment prior to the submittal date specified in the request

  5  for proposals with respect to any opportunity for discussion

  6  and revision of proposals.

  7         (b)  The contract award shall be awarded made to the

  8  responsible and responsive vendor offeror whose proposal is

  9  determined in writing to be the most advantageous to the

10  state, taking into consideration the price and the other

11  criteria set forth in the request for proposals.  The contract

12  file shall contain documentation supporting the basis on which

13  the award is made.

14         (3)(a)  If the an agency determines in writing that the

15  use of an invitation to bid or a request for a proposal will

16  not result in the best value to the state, based on factors

17  including, but not limited to, price, quality, design, and

18  workmanship, the agency may procure commodities and

19  contractual services by an invitation to negotiate. The

20  agency's written determination shall specify reasons that

21  explain why negotiation may be necessary for the state to

22  achieve the best value. An invitation to negotiate shall be

23  made available to all vendors simultaneously and shall include

24  a statement of the commodities or contractual services sought,

25  the time and date for the receipt of replies and of the public

26  opening, and all terms and conditions applicable to the

27  procurement, including the criteria to be used in determining

28  the responsiveness of the reply.

29         (b)  The agency shall evaluate and rank responsive

30  replies against all evaluation criteria set forth in the

31  invitation to negotiate, and shall select, based on the

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  1  ranking, one or more vendors with which to commence

  2  negotiations. After negotiations are conducted, the agency

  3  shall award the contract to the responsible and responsive

  4  vendor that the agency determines in writing will provide the

  5  best value to the state. The contract file shall contain

  6  documentation supporting the basis on which the award is made.

  7  An agency may procure commodities and contractual services by

  8  a request for a quote from vendors under contract with the

  9  department.

10         (4)  Prior to the award of contract, an agency may

11  conduct a conference or written question and answer period.

12  The vendors shall be accorded fair and equal treatment with

13  respect to any opportunity for discussion and revision of

14  bids, proposals, or replies.

15         (5)  If an agency determines, prior to the time

16  established for the receipt of bids, proposals, or replies,

17  that it is necessary to change the requirements or any term or

18  condition contained in a solicitation, the agency shall amend

19  the solicitation and shall make the amendments available

20  simultaneously to all vendors. When amending a solicitation,

21  the agency shall consider whether the time established for the

22  submittal of bids, proposals, or replies should be extended in

23  order to provide prospective vendors with sufficient time to

24  consider the amendment in submitting or modifying their bids,

25  proposals, or replies.  Notice of amendments to a solicitation

26  shall be provided by publication in Florida Administrative

27  Weekly or by electronic publication, mail, facsimile, or other

28  means established by rule. All solicitations shall specify the

29  manner in which notice of amendments will be provided.

30         (6)(4)  When the purchase price of commodities or

31  contractual services exceeds the threshold amount provided in

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  1  s. 287.017 for CATEGORY TWO, no purchase of commodities or

  2  contractual services may be made without receiving competitive

  3  sealed bids, competitive sealed proposals, or replies

  4  responses to an invitation to negotiate or a request for a

  5  quote unless:

  6         (a)  The agency head determines in writing that an

  7  immediate danger to the public health, safety, or welfare or

  8  other substantial loss to the state requires emergency action.

  9  After the agency head makes such a written determination, the

10  agency may proceed with the procurement of commodities or

11  contractual services necessitated by the immediate danger,

12  without receiving competitive sealed bids, proposals, or

13  replies competition. However, such emergency procurement shall

14  be made with as much such competition as possible is

15  practicable under the circumstances. The agency shall furnish

16  copies of all the written determinations determination

17  certified under oath and any other documents relating to the

18  emergency action to the department.  A copy of the statement

19  shall be furnished to the Comptroller with the voucher

20  authorizing payment.  The individual purchase of personal

21  clothing, shelter, or supplies which are needed on an

22  emergency basis to avoid institutionalization or placement in

23  a more restrictive setting is an emergency for the purposes of

24  this paragraph, and the filing with the department of such

25  statement is not required in such circumstances.  In the case

26  of the emergency purchase of insurance, the period of coverage

27  of such insurance shall not exceed a period of 30 days, and

28  all such emergency purchases shall be reported to the

29  department.

30         (b)  The purchase is made by an agency from a state

31  term contract procured pursuant to this chapter Purchasing

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  1  agreements and contracts executed by the department or by

  2  agencies under authority delegated in writing by the

  3  department in writing are excepted from bid requirements.

  4         (c)  The commodities or contractual services are

  5  available only from a single source. For contracts may be

  6  excepted from the bid requirements if it is determined that

  7  such commodities or services are available only from a single

  8  source and such determination is documented. However, if such

  9  contract is for an amount greater than the threshold amount

10  provided in s. 287.017 for CATEGORY FOUR, the agency shall

11  obtain department approval before entering into the contract.

12  The agency shall initiate the request for approval in a form

13  prescribed by the department, which may be electronic.  The

14  department shall provide by rule for centralized electronic

15  posting of all such requests for not less than 7 days, during

16  which period potential competitors may review the proposed

17  procurement and assess whether market conditions justify

18  proceeding with a single source.  An interested competitor

19  objecting to the procurement shall file a notice of protest

20  with the agency within 10 days after the request is first

21  posted.  If a protest is filed, award of the contract shall be

22  stayed until the protest is resolved, subject to s.

23  120.57(3)(c).  If no protest is filed, the department shall

24  respond to the agency's request for approval within 14 days

25  after expiration of the protest period. head shall file a

26  certification of conditions and circumstances with the

27  department and shall obtain the prior approval of the

28  department. The failure of the department to approve or

29  disapprove the request of an agency for prior approval within

30  21 days after receiving such request or within 14 days after

31  receiving from the agency additional materials requested by

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  1  the department shall constitute prior approval of the

  2  department.  To the greatest extent practicable, but no later

  3  than 45 days after authorizing the exception in writing, the

  4  department shall combine single-source procurement

  5  authorizations for identical information technology resources

  6  for which the purchase price exceeds the threshold amount

  7  provided in s. 287.017 for CATEGORY FOUR, and shall negotiate

  8  and execute volume purchasing agreements for such procurements

  9  on behalf of the agencies.

10         (d)  When it is in the best interest of the state, the

11  secretary of the department Management Services or his or her

12  designee may authorize the Support Program to purchase

13  insurance by negotiation, but such purchase shall be made only

14  under conditions most favorable to the public interest.

15         (e)  Prescriptive assistive devices for the purpose of

16  medical, developmental, or vocational rehabilitation of

17  clients are excepted from competitive solicitation sealed bid

18  and competitive sealed proposal requirements and shall be

19  procured pursuant to an established fee schedule or by any

20  other method which ensures the best price for the state,

21  taking into consideration the needs of the client.

22  Prescriptive assistive devices include, but are not limited

23  to, prosthetics, orthotics, and wheelchairs.  For purchases

24  made pursuant to this paragraph, state agencies shall annually

25  file with the department a description of the purchases and

26  methods of procurement.

27         (f)  The following contractual services and commodities

28  are not subject to the competitive solicitation sealed bid

29  requirements of this section:

30         1.  Artistic services.

31         2.  Academic program reviews.

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  1         3.  Lectures by individuals.

  2         4.  Auditing services.

  3         5.  Legal services, including attorney, paralegal,

  4  expert witness, appraisal, or mediator services.

  5         6.  Health services involving examination, diagnosis,

  6  treatment, prevention, medical consultation, or

  7  administration.

  8         7.  Services provided to persons with mental or

  9  physical disabilities by not-for-profit corporations which

10  have obtained exemptions under the provisions of s. 501(c)(3)

11  of the United States Internal Revenue Code or when such

12  services are governed by the provisions of Office of

13  Management and Budget Circular A-122. However, in acquiring

14  such services, the agency shall consider the ability of the

15  vendor contractor, past performance, willingness to meet time

16  requirements, and price.

17         8.  Medicaid services delivered to an eligible Medicaid

18  recipient by a health care provider who has not previously

19  applied for and received a Medicaid provider number from the

20  Agency for Health Care Administration. However, this exception

21  shall be valid for a period not to exceed 90 days after the

22  date of delivery to the Medicaid recipient and shall not be

23  renewed by the agency.

24         9.  Family placement services.

25         10.  Prevention services related to mental health,

26  including drug abuse prevention programs, child abuse

27  prevention programs, and shelters for runaways, operated by

28  not-for-profit corporations.  However, in acquiring such

29  services, the agency shall consider the ability of the vendor

30  contractor, past performance, willingness to meet time

31  requirements, and price.

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  1         11.  Training and education services provided to

  2  injured employees pursuant to s. 440.49(1).

  3         12.  Contracts entered into pursuant to s. 337.11.

  4         13.  Services or commodities provided by governmental

  5  agencies.

  6         (g)  Continuing education events or programs that are

  7  offered to the general public and for which fees have been

  8  collected that pay all expenses associated with the event or

  9  program are exempt from requirements for competitive

10  solicitation sealed bidding.

11         (7)(5)  If less than two responsive bids, or proposals,

12  or replies for commodity or contractual services purchases are

13  received, the department or the agency may negotiate on the

14  best terms and conditions. The department or agency shall

15  document the reasons that such action is in the best interest

16  of the state in lieu of resoliciting competitive sealed bids,

17  or proposals, or replies.  The agency shall report all such

18  actions to the department on a quarterly basis, in a manner

19  and form prescribed by the department.

20         (8)(6)  Upon issuance of any solicitation invitation to

21  bid or request for proposals, an agency shall, upon request by

22  the department, forward to the department one copy of each

23  solicitation invitation to bid or request for proposals for

24  all commodity and contractual services purchases in excess of

25  the threshold amount provided in s. 287.017 for CATEGORY TWO.

26  An agency shall also, upon request, furnish a copy of all

27  competitive solicitation sealed bid or competitive sealed

28  proposal tabulations. The Office of Supplier Diversity may

29  also request from the agencies any information submitted to

30  the department pursuant to this subsection.

31

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  1         (9)(7)(a)  In order to strive to meet the minority

  2  business enterprise procurement goals set forth in s.

  3  287.09451, an agency may reserve any contract for competitive

  4  solicitation sealed bidding only among certified minority

  5  business enterprises. Agencies shall review all their

  6  contracts each fiscal year and shall determine which contracts

  7  may be reserved for solicitation bidding only among certified

  8  minority business enterprises. This reservation may only be

  9  used when it is determined, by reasonable and objective means,

10  before the solicitation invitation to bid that there are

11  capable, qualified certified minority business enterprises

12  available to submit a bid, proposal, or reply on a contract to

13  provide for effective competition. The Office of Supplier

14  Diversity shall consult with any agency in reaching such

15  determination when deemed appropriate.

16         (b)  Before a contract may be reserved for solicitation

17  bidding only among by certified minority business enterprises,

18  the agency head must find that such a reservation is in the

19  best interests of the state. All determinations shall be

20  subject to s. 287.09451(5). Once a decision has been made to

21  reserve a contract, but before sealed bids, proposals, or

22  replies are requested, the agency shall estimate what it

23  expects the amount of the contract to be, based on the nature

24  of the services or commodities involved and their value under

25  prevailing market conditions. If all the sealed bids,

26  proposals, or replies received are over this estimate, the

27  agency may reject the bids, proposals, or replies and request

28  new ones from certified minority business enterprises, or the

29  agency may reject the bids, proposals, or replies and reopen

30  the bidding to all eligible vendors qualified bidders.

31

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  1         (c)  All agencies shall consider the use of price

  2  preferences of up to 10 percent, weighted preference formulas,

  3  or other preferences for vendors contractors as determined

  4  appropriate pursuant to guidelines established in accordance

  5  with s. 287.09451(4) to increase the participation of minority

  6  business enterprises.

  7         (d)  All agencies shall avoid any undue concentration

  8  of contracts or purchases in categories of commodities or

  9  contractual services in order to meet the minority business

10  enterprise purchasing goals in s. 287.09451.

11         (10)(8)  An agency may reserve any contract for

12  competitive solicitation sealed bidding only among qualified

13  vendors bidders who agree to use utilize certified minority

14  business enterprises as subcontractors or subvendors. The

15  percentage of funds, in terms of gross contract amount and

16  revenues, which must be expended with the certified minority

17  business enterprise subcontractors and subvendors shall be

18  determined by the agency before such contracts may be

19  reserved. In order to bid on a contract so reserved, the

20  vendor qualified bidder shall identify those certified

21  minority business enterprises which will be utilized as

22  subcontractors or subvendors by sworn statement. At the time

23  of performance or project completion, the contractor shall

24  report by sworn statement the payments and completion of work

25  for all certified minority business enterprises used in the

26  contract.

27         (11)(9)  An agency shall not divide the procurement of

28  commodities or contractual services so as to avoid the

29  requirements of subsections (1)-(6), (2), and (3).

30         (12)(10)  A contract for commodities or contractual

31  services may be awarded without competition if state or

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  1  federal law prescribes with whom the agency must contract or

  2  if the rate of payment is established during the

  3  appropriations process.

  4         (13)(11)  If two equal responses to a solicitation an

  5  invitation to bid or a request for quote proposals are

  6  received and one response is from a certified minority

  7  business enterprise, the agency shall enter into a contract

  8  with the certified minority business enterprise.

  9         (14)(12)  Extension of a contract for contractual

10  services shall be in writing for a period not to exceed 6

11  months and shall be subject to the same terms and conditions

12  set forth in the initial contract.  There shall be only one

13  extension of a contract unless the failure to meet the

14  criteria set forth in the contract for completion of the

15  contract is due to events beyond the control of the

16  contractor.

17         (15)(13)  Except for those contracts initially procured

18  pursuant to paragraph (6)(3)(a) or paragraph (6)(3)(c),

19  contracts for commodities or contractual services may be

20  renewed upon mutual written agreement, provided the period of

21  renewal shall not exceed the longer of 3 years or the original

22  contract term on a yearly basis for no more than 2 years or

23  for a period no longer than the term of the original contract,

24  whichever period is longer.  Renewal of a contract for

25  commodities or contractual services shall be in writing and

26  shall be subject to the same terms and conditions set forth in

27  the original initial contract.  If the commodity or

28  contractual service is purchased as a result of the

29  solicitation of bids or proposals, the cost of any

30  contemplated renewals shall be included in the invitation to

31  bid or request for proposals.  If the original contract

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  1  resulted from a competitive solicitation, the renewal contract

  2  shall not include compensation for any costs associated with

  3  the renewal. Renewals shall be contingent upon satisfactory

  4  performance evaluations by the agency. Exceptional purchase

  5  contracts pursuant to s. 287.057(6)(a) and (c) may not be

  6  renewed.

  7         (16)(14)  For each contractual services contract, the

  8  agency shall designate an employee to function as contract

  9  manager who shall be responsible for enforcing performance of

10  the contract terms and conditions and serve as a liaison with

11  the contractor. The agency shall establish procedures to

12  ensure that contractual services have been rendered in

13  accordance with the contract terms prior to processing the

14  invoice for payment.

15         (17)(15)  Each agency shall designate at least one

16  employee who shall serve as a contract administrator

17  responsible for maintaining a contract file and financial

18  information on all contractual services contracts and who

19  shall serve as a liaison with the contract managers and the

20  department.

21         (18)(16)  For requests for proposals and invitations to

22  negotiate, a selection teams team of at least three employees

23  who have experience and knowledge in the program areas and

24  service requirements for which contractual services are sought

25  shall be appointed by the agency head to aid in the selection

26  of contractors for contracts of more than the threshold amount

27  provided in s. 287.017 for CATEGORY FOUR.

28         (19)(17)  No person who receives a contract which has

29  not been procured pursuant to subsection (1), subsection (2),

30  or subsection (3) to perform a feasibility study of the

31  potential implementation of a subsequent contract,

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  1  participating in the drafting of a solicitation an invitation

  2  to bid or request for proposals, or developing a program for

  3  future implementation shall be eligible to contract with the

  4  agency for any other contracts dealing with that specific

  5  subject matter; nor shall any firm in which such person has

  6  any interest be eligible to receive such contract. However,

  7  this prohibition shall not prevent a vendor who replies to a

  8  request for information from being eligible to contract with

  9  an agency.

10         (20)(18)  Each agency shall establish a review and

11  approval process for all contractual services contracts

12  costing more than the threshold amount provided for in s.

13  287.017 for CATEGORY THREE which shall include, but not be

14  limited to, program, financial, and legal review and approval.

15  Such reviews and approvals shall be obtained before the

16  contract is executed.

17         (19)  The department may establish state contractual

18  service term contracts. Such contracts may be utilized by any

19  agency, county, municipality, or local public agency.

20         (21)(20)  In any procurement that is accomplished

21  without competition, the individuals taking part in the

22  development or selection of criteria for evaluation, the

23  evaluation process, and the award process shall attest in

24  writing that they are independent of, and have no conflict of

25  interest in, the entities evaluated and selected.

26         (22)(21)  Nothing in this section shall affect the

27  validity or effect of any contract in existence on October 1,

28  1990.

29         (23)(22)  An agency may contract for services with any

30  independent, nonprofit college or university which is located

31  within the state and is accredited by the Southern Association

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  1  of Colleges and Schools, on the same basis as it may contract

  2  with any institution in the state university and college

  3  System.

  4         (24)(23)(a)  The department, in consultation with the

  5  State Technology Office, shall develop a program for on-line

  6  procurement of commodities and contractual services. To enable

  7  the state to promote open competition and to leverage its

  8  buying power, executive state agencies shall participate in

  9  the on-line procurement program, and eligible users other

10  agencies may participate in the program. Only vendors bidders

11  prequalified as meeting mandatory requirements and

12  qualifications criteria shall be permitted to participate in

13  on-line procurement. The department, in consultation with the

14  State Technology Office, may contract for equipment and

15  services necessary to develop and implement on-line

16  procurement.

17         (b)  The State Technology Office, in consultation with

18  the department, in consultation with the State Technology

19  Office, shall adopt rules, pursuant to ss. 120.536(1) and

20  120.54, to implement the program for on-line procurement. The

21  rules shall include, but not be limited to:

22         1.  Determining the requirements and qualification

23  criteria for prequalifying vendors bidders.

24         2.  Establishing the procedures for conducting on-line

25  procurement.

26         3.  Establishing the criteria for eligible commodities

27  and contractual services.

28         4.  Establishing the procedures for providing access to

29  on-line procurement.

30         5.  Determining the criteria warranting any exceptions

31  to participation in the on-line procurement program.

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  1         (c)  The department of Management Services and the

  2  State Technology Office may collect fees for the use of the

  3  on-line procurement systems. The fees may be imposed on an

  4  individual transaction basis or as a fixed percentage of the

  5  cost savings generated. At a minimum, the fees must be set in

  6  an amount sufficient to cover the projected costs of such

  7  services, including administrative and project service costs

  8  in accordance with the policies of the department of

  9  Management Services and the State Technology Office. For the

10  purposes of compensating the provider, the department may

11  authorize the provider to collect and retain a portion of the

12  fees. The providers may withhold the portion retained from the

13  amount of fees to be remitted to the department. The

14  department may establish negotiate the retainage as a

15  percentage of such fees charged to users, as a flat amount, or

16  as any other method the department deems feasible. All fees

17  and surcharges collected under this paragraph shall be

18  deposited in the Grants and Donation Trust Fund as provided by

19  law.

20         (25)(24)(a)  The State Technology Office shall

21  establish, in consultation with the department, state

22  strategic information technology alliances for the acquisition

23  and use of information technology and related material with

24  prequalified contractors or partners to provide the state with

25  efficient, cost-effective, and advanced information

26  technology.

27         (b)  In consultation with and under contract to the

28  State Technology Office, the state strategic information

29  technology alliances shall design, develop, and deploy

30  projects providing the information technology needed to

31  collect, store, and process the state's data and information,

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  1  provide connectivity, and integrate and standardize computer

  2  networks and information systems of the state.

  3         (c)  The partners in the state strategic information

  4  technology alliances shall be industry leaders with

  5  demonstrated experience in the public and private sectors.

  6         (d)  The State Technology Office, in consultation with

  7  the department of Management Services, shall adopt rules,

  8  pursuant to ss. 120.536(1) and 120.54, to implement the state

  9  strategic information technology alliances.

10         Section 11.  Section 287.0572, Florida Statutes, is

11  amended to read:

12         287.0572  Present-value methodology.--

13         (1)  The cost of bids, or proposals, or replies for

14  state contracts which require the payment of money for more

15  than 1 year and include provisions for unequal payment streams

16  or unequal time payment periods shall be evaluated using

17  present-value methodology.  Each agency, as defined in s.

18  287.012(1), shall perform the evaluation using the

19  present-value discount rate supplied by the department of

20  Management Services. The present-value discount rate shall be

21  the rate for United States Treasury notes and bonds published

22  in the Interest Rates: Money and Capital Markets section of

23  the most recent copy of the Federal Reserve Bulletin published

24  at the time of issuance of the request for proposals,

25  invitation to negotiate, or the invitation invitations to bid.

26         (2)  The department of Management Services may adopt

27  rules to implement the provisions of subsection (1).

28         Section 12.  Section 287.058, Florida Statutes, is

29  amended to read:

30         287.058  Contract document.--

31

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  1         (1)  Every procurement of contractual services in

  2  excess of the threshold amount provided in s. 287.017 for

  3  CATEGORY TWO, except for the providing of health and mental

  4  health services or drugs in the examination, diagnosis, or

  5  treatment of sick or injured state employees or the providing

  6  of other benefits as required by the provisions of chapter

  7  440, shall be evidenced by a written agreement embodying all

  8  provisions and conditions of the procurement of such services,

  9  which provisions and conditions shall, where applicable,

10  include, but shall not be limited to:

11         (a)  A provision that bills for fees or other

12  compensation for services or expenses be submitted in detail

13  sufficient for a proper preaudit and postaudit thereof.

14         (b)  A provision that bills for any travel expenses be

15  submitted in accordance with s. 112.061.  A state agency may

16  establish rates lower than the maximum provided in s. 112.061.

17         (c)  A provision allowing unilateral cancellation by

18  the agency for refusal by the contractor to allow public

19  access to all documents, papers, letters, or other material

20  made or received by the contractor in conjunction with the

21  contract, unless the records are exempt from s. 24(a) of Art.

22  I of the State Constitution and s. 119.07(1).

23         (d)  A provision dividing the contract into units of

24  deliverables, which shall include, but not be limited to,

25  reports, findings, and drafts, that must be received and

26  accepted in writing by the contract manager prior to payment.

27         (e)  A provision specifying the criteria and the final

28  date by which such criteria must be met for completion of the

29  contract.

30         (f)  A provision specifying that the contract may be

31  renewed upon mutual written agreement, provided the period of

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  1  renewal shall not exceed the longer of 3 years or the original

  2  contract term, except for those contracts initially procured

  3  pursuant to s. 287.057(6)(a) or (c). Renewal of a contract

  4  shall be subject to the same terms and conditions set forth in

  5  the original contract.  Renewals shall be contingent upon

  6  satisfactory performance evaluations by the agency. A

  7  provision specifying that the contract may be renewed on a

  8  yearly basis for a period of up to 2 years after the initial

  9  contract or for a period no longer than the term of the

10  original contract, whichever period is longer, specifying the

11  terms under which the cost may change as determined in the

12  invitation to bid or request for proposals, and specifying

13  that renewals shall be contingent upon satisfactory

14  performance evaluations by the agency and subject to the

15  availability of funds.

16

17  In lieu of a written agreement, the department may authorize

18  the use of a purchase order for classes of contractual

19  services, provided the provisions of paragraphs (a)-(f) are

20  included in the purchase order or solicitation, invitation to

21  bid, or request for proposals.  The purchase order shall

22  include, but need not be limited to, an adequate description

23  of the services, the contract period, and the method of

24  payment. In lieu of printing the provisions of paragraphs

25  (a)-(e)(f) in the contract document or purchase order,

26  agencies may incorporate the requirements of paragraphs

27  (a)-(e)(f) by reference.

28         (2)  The written agreement shall be signed by the

29  agency head and the contractor prior to the rendering of any

30  contractual service the value of which is in excess of the

31  threshold amount provided in s. 287.017 for CATEGORY TWO,

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  1  except in the case of a valid emergency as certified by the

  2  agency head. The certification of an emergency shall be

  3  prepared within 30 days after the contractor begins rendering

  4  the service and shall state the particular facts and

  5  circumstances which precluded the execution of the written

  6  agreement prior to the rendering of the service.  If the

  7  agency fails to have the contract signed by the agency head

  8  and the contractor prior to rendering the contractual service,

  9  and if an emergency does not exist, the agency head shall, no

10  later than 30 days after the contractor begins rendering the

11  service, certify the specific conditions and circumstances to

12  the department as well as describe actions taken to prevent

13  recurrence of such noncompliance. The agency head may delegate

14  the certification only to other senior management agency

15  personnel.  A copy of the certification shall be furnished to

16  the Comptroller with the voucher authorizing payment. The

17  department shall report repeated instances of noncompliance by

18  an agency to the Auditor General. Nothing in this subsection

19  shall be deemed to authorize additional compensation

20  prohibited by s. 215.425.  The procurement of contractual

21  services shall not be divided so as to avoid the provisions of

22  this section.

23         (3)  Notwithstanding the provisions of subsections (1)

24  and (2), in those cases in which state agencies are unable to

25  procure a written agreement for the providing of health and

26  mental health services or drugs in the examination, diagnosis,

27  or treatment of sick or injured persons in the care or custody

28  of a state agency, those services and drugs may be obtained by

29  purchase order.  The purchase order shall contain sufficient

30  detail for a proper audit and shall be signed by purchasing or

31  contracting personnel acting on behalf of the agency.

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  1         (4)  Every procurement of contractual services of the

  2  value of the threshold amount provided in s. 287.017 for

  3  CATEGORY TWO or less, except for the providing of health and

  4  mental health services or drugs in the examination, diagnosis,

  5  or treatment of sick or injured state employees or the

  6  providing of other benefits as required by the provisions of

  7  chapter 440, shall be evidenced by a written agreement or

  8  purchase order.  The written agreement or purchase order shall

  9  contain sufficient detail for a proper audit, shall be signed

10  by purchasing or contracting personnel acting on behalf of the

11  agency, and may contain the provisions and conditions provided

12  in subsection (1).

13         (5)  Unless otherwise provided in the General

14  Appropriations Act or the substantive bill implementing the

15  General Appropriations Act, the Comptroller may waive the

16  requirements of this section for services which are included

17  in s. 287.057(6)(4)(f).

18         Section 13.  Paragraph (d) of subsection (2) of section

19  287.059, Florida Statutes, is amended to read:

20         287.059  Private attorney services.--

21         (2)  No agency shall contract for private attorney

22  services without the prior written approval of the Attorney

23  General, except that such written approval is not required for

24  private attorney services:

25         (d)  Procured by the College Board of Trustees or state

26  Regents and the universities and colleges of the State

27  University System.

28         Section 14.  Section 287.0731, Florida Statutes, is

29  amended to read:

30         287.0731  Team for contract negotiations.--Contingent

31  upon funding in the General Appropriations Act, the department

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  1  of Management Services, in consultation with the State

  2  Technology Office, shall establish a permanent team that

  3  includes for contract negotiations including a chief

  4  negotiator, to specialize in conducting negotiations for the

  5  procurement of information technology resources.

  6         Section 15.  Section 287.0822, Florida Statutes, is

  7  amended to read:

  8         287.0822  Beef and pork; prohibition on purchase; bid

  9  specifications; penalty.--

10         (1)  Fresh or frozen beef or pork that has not been

11  inspected by the United States Department of Agriculture or by

12  another state's inspection program which has been approved by

13  the United States Department of Agriculture shall not be

14  purchased, or caused to be purchased, by any agency of the

15  state or of any municipality, political subdivision, school

16  district, or special district for consumption in this state or

17  for distribution for consumption in this state. Solicitations

18  Bid invitations issued by any agency of the state or of any

19  municipality, political subdivision, school district, or

20  special district for the purchase of fresh or frozen beef or

21  pork must specify that only beef or pork inspected and passed

22  by either the United States Department of Agriculture or by

23  another state's inspection program which has been approved by

24  the United States Department of Agriculture will be accepted.

25  The supplier or vendor shall certify on the invoice that the

26  fresh or frozen beef or pork or imported beef or pork supplied

27  is either domestic or complies with this subsection.

28         (2)  All solicitations bid invitations for purchase of

29  fresh or frozen meats of any kind by any agency of the state

30  or of any municipality, political subdivision, school

31  district, or special district using state or local funds shall

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  1  include the words: " 'All American' and 'Genuine Florida'

  2  meats or meat products shall be granted preference as allowed

  3  by Section 287.082, Florida Statutes."

  4         (3)  Any person who knowingly violates or causes to be

  5  violated the provisions of this section shall be personally

  6  liable to the affected public agency for any funds spent in

  7  violation of the provisions of this section.

  8         Section 16.  Section 287.084, Florida Statutes, is

  9  amended to read:

10         287.084  Preference to Florida businesses.--

11         (1)  When an agency, county, municipality, school

12  district, or other political subdivision of the state is

13  required to make purchases of personal property through

14  competitive solicitation bidding and the lowest responsible

15  and responsive bid, proposal, or reply is by a vendor bidder

16  whose principal place of business is in a state or political

17  subdivision thereof which grants a preference for the purchase

18  of such personal property to a person whose principal place of

19  business is in such state, then the agency, county,

20  municipality, school district, or other political subdivision

21  of this state may award a preference to the lowest responsible

22  and responsive vendor bidder having a principal place of

23  business within this state, which preference is equal to the

24  preference granted by the state or political subdivision

25  thereof in which the lowest responsible and responsive vendor

26  bidder has his or her principal place of business.  However,

27  this section shall not apply to transportation projects for

28  which federal aid funds are available.

29         (2)  If a solicitation an invitation for bids provides

30  for the granting of such preference as is provided herein, any

31  vendor bidder whose principal place of business is outside the

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  1  State of Florida must accompany any written bid, proposal, or

  2  reply documents with a written opinion of an attorney at law

  3  licensed to practice law in that foreign state, as to the

  4  preferences, if any or none, granted by the law of that state

  5  to its own business entities whose principal places of

  6  business are in that foreign state in the letting of any or

  7  all public contracts.

  8         Section 17.  Section 287.087, Florida Statutes, is

  9  amended to read:

10         287.087  Preference to businesses with drug-free

11  workplace programs.--Whenever two or more bids, proposals, or

12  replies which are equal with respect to price, quality, and

13  service are received by the state or by any political

14  subdivision for the procurement of commodities or contractual

15  services, a bid, proposal, or reply received from a business

16  that certifies that it has implemented a drug-free workplace

17  program shall be given preference in the award process. In

18  order to have a drug-free workplace program, a business shall:

19         (1)  Publish a statement notifying employees that the

20  unlawful manufacture, distribution, dispensing, possession, or

21  use of a controlled substance is prohibited in the workplace

22  and specifying the actions that will be taken against

23  employees for violations of such prohibition.

24         (2)  Inform employees about the dangers of drug abuse

25  in the workplace, the business's policy of maintaining a

26  drug-free workplace, any available drug counseling,

27  rehabilitation, and employee assistance programs, and the

28  penalties that may be imposed upon employees for drug abuse

29  violations.

30

31

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  1         (3)  Give each employee engaged in providing the

  2  commodities or contractual services that are under bid a copy

  3  of the statement specified in subsection (1).

  4         (4)  In the statement specified in subsection (1),

  5  notify the employees that, as a condition of working on the

  6  commodities or contractual services that are under bid, the

  7  employee will abide by the terms of the statement and will

  8  notify the employer of any conviction of, or plea of guilty or

  9  nolo contendere to, any violation of chapter 893 or of any

10  controlled substance law of the United States or any state,

11  for a violation occurring in the workplace no later than 5

12  days after such conviction.

13         (5)  Impose a sanction on, or require the satisfactory

14  participation in a drug abuse assistance or rehabilitation

15  program if such is available in the employee's community by,

16  any employee who is so convicted.

17         (6)  Make a good faith effort to continue to maintain a

18  drug-free workplace through implementation of this section.

19         Section 18.  Section 287.093, Florida Statutes, is

20  amended to read:

21         287.093  Minority business enterprises; procurement of

22  personal property and services from funds set aside for such

23  purpose.--Any county, municipality, community college, or

24  district school board may set aside up to 10 percent or more

25  of the total amount of funds allocated for the procurement of

26  personal property and services for the purpose of entering

27  into contracts with minority business enterprises.  Such

28  contracts shall be competitively solicited bid only among

29  minority business enterprises.  The set-aside shall be used to

30  redress present effects of past discriminatory practices and

31

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  1  shall be subject to periodic reassessment to account for

  2  changing needs and circumstances.

  3         Section 19.  Paragraphs (n) and (o) of subsection (4)

  4  and paragraphs (d) and (e) of subsection (5) of section

  5  287.09451, Florida Statutes, are amended to read:

  6         287.09451  Office of Supplier Diversity; powers,

  7  duties, and functions.--

  8         (4)  The Office of Supplier Diversity shall have the

  9  following powers, duties, and functions:

10         (n)1.  To develop procedures to be used by an agency in

11  identifying commodities, contractual services, architectural

12  and engineering services, and construction contracts, except

13  those architectural, engineering, construction, or other

14  related services or contracts subject to the provisions of

15  chapter 339, that could be provided by minority business

16  enterprises. Each agency is encouraged to spend 21 percent of

17  the moneys actually expended for construction contracts, 25

18  percent of the moneys actually expended for architectural and

19  engineering contracts, 24 percent of the moneys actually

20  expended for commodities, and 50.5 percent of the moneys

21  actually expended for contractual services during the previous

22  fiscal year, except for the state university construction

23  program which shall be based upon public education capital

24  outlay projections for the subsequent fiscal year, and

25  reported to the Legislature pursuant to s. 216.023, for the

26  purpose of entering into contracts with certified minority

27  business enterprises as defined in s. 288.703(2), or approved

28  joint ventures. However, in the event of budget reductions

29  pursuant to s. 216.221, the base amounts may be adjusted to

30  reflect such reductions. The overall spending goal for each

31  industry category shall be subdivided as follows:

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  1         a.  For construction contracts: 4 percent for black

  2  Americans, 6 percent for Hispanic-Americans, and 11 percent

  3  for American women.

  4         b.  For architectural and engineering contracts: 9

  5  percent for Hispanic-Americans, 1 percent for Asian-Americans,

  6  and 15 percent for American women.

  7         c.  For commodities: 2 percent for black Americans, 4

  8  percent for Hispanic-Americans, 0.5 percent for

  9  Asian-Americans, 0.5 percent for Native Americans, and 17

10  percent for American women.

11         d.  For contractual services: 6 percent for black

12  Americans, 7 percent for Hispanic-Americans, 1 percent for

13  Asian-Americans, 0.5 percent for Native Americans, and 36

14  percent for American women.

15         2.  For the purposes of commodities contracts for the

16  purchase of equipment to be used in the construction and

17  maintenance of state transportation facilities involving the

18  Department of Transportation, "minority business enterprise"

19  has the same meaning as provided in s. 288.703. "Minority

20  person" has the same meaning as in s. 288.703(3). In order to

21  ensure that the goals established under this paragraph for

22  contracting with certified minority business enterprises are

23  met, the department, with the assistance of the Office of

24  Supplier Diversity, shall make recommendations to the

25  Legislature on revisions to the goals, based on an updated

26  statistical analysis, at least once every 5 years. Such

27  recommendations shall be based on statistical data indicating

28  the availability of and disparity in the use of minority

29  businesses contracting with the state. The results of the

30  first updated disparity study must be presented to the

31  Legislature no later than December 1, 1996.

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  1         3.  In determining the base amounts for assessing

  2  compliance with this paragraph, the Office of Supplier

  3  Diversity may develop, by rule, guidelines for all agencies to

  4  use in establishing such base amounts. These rules must

  5  include, but are not limited to, guidelines for calculation of

  6  base amounts, a deadline for the agencies to submit base

  7  amounts, a deadline for approval of the base amounts by the

  8  Office of Supplier Diversity, and procedures for adjusting the

  9  base amounts as a result of budget reductions made pursuant to

10  s. 216.221.

11         4.  To determine guidelines for the use of price

12  preferences, weighted preference formulas, or other

13  preferences, as appropriate to the particular industry or

14  trade, to increase the participation of minority businesses in

15  state contracting. These guidelines shall include

16  consideration of:

17         a.  Size and complexity of the project.

18         b.  The concentration of transactions with minority

19  business enterprises for the commodity or contractual services

20  in question in prior agency contracting.

21         c.  The specificity and definition of work allocated to

22  participating minority business enterprises.

23         d.  The capacity of participating minority business

24  enterprises to complete the tasks identified in the project.

25         e.  The available pool of minority business enterprises

26  as prime contractors, either alone or as partners in an

27  approved joint venture that serves as the prime contractor.

28         5.  To determine guidelines for use of joint ventures

29  to meet minority business enterprises spending goals. For

30  purposes of this section, "joint venture" means any

31  association of two or more business concerns to carry out a

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  1  single business enterprise for profit, for which purpose they

  2  combine their property, capital, efforts, skills, and

  3  knowledge. The guidelines shall allow transactions with joint

  4  ventures to be eligible for credit against the minority

  5  business enterprise goals of an agency when the contracting

  6  joint venture demonstrates that at least one partner to the

  7  joint venture is a certified minority business enterprise as

  8  defined in s. 288.703, and that such partner is responsible

  9  for a clearly defined portion of the work to be performed, and

10  shares in the ownership, control, management,

11  responsibilities, risks, and profits of the joint venture.

12  Such demonstration shall be by verifiable documents and sworn

13  statements and may be reviewed by the Office of Supplier

14  Diversity at or before the time a contract bid, proposal, or

15  reply is submitted. An agency may count toward its minority

16  business enterprise goals a portion of the total dollar amount

17  of a contract equal to the percentage of the ownership and

18  control held by the qualifying certified minority business

19  partners in the contracting joint venture, so long as the

20  joint venture meets the guidelines adopted by the office.

21         (o)1.  To establish a system to record and measure the

22  use of certified minority business enterprises in state

23  contracting. This system shall maintain information and

24  statistics on certified minority business enterprise

25  participation, awards, dollar volume of expenditures and

26  agency goals, and other appropriate types of information to

27  analyze progress in the access of certified minority business

28  enterprises to state contracts and to monitor agency

29  compliance with this section. Such reporting must include, but

30  is not limited to, the identification of all subcontracts in

31  state contracting by dollar amount and by number of

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  1  subcontracts and the identification of the utilization of

  2  certified minority business enterprises as prime contractors

  3  and subcontractors by dollar amounts of contracts and

  4  subcontracts, number of contracts and subcontracts, minority

  5  status, industry, and any conditions or circumstances that

  6  significantly affected the performance of subcontractors.

  7  Agencies shall report their compliance with the requirements

  8  of this reporting system at least annually and at the request

  9  of the office. All agencies shall cooperate with the office in

10  establishing this reporting system. Except in construction

11  contracting, all agencies shall review contracts costing in

12  excess of CATEGORY FOUR as defined in s. 287.017 to determine

13  if such contracts could be divided into smaller contracts to

14  be separately solicited bid and awarded, and shall, when

15  economical, offer such smaller contracts to encourage minority

16  participation.

17         2.  To report agency compliance with the provisions of

18  subparagraph 1. for the preceding fiscal year to the Governor

19  and Cabinet, the President of the Senate, the Speaker of the

20  House of Representatives, and the secretary of the Department

21  of Labor and Employment Security on or before February 1 of

22  each year. The report must contain, at a minimum, the

23  following:

24         a.  Total expenditures of each agency by industry.

25         b.  The dollar amount and percentage of contracts

26  awarded to certified minority business enterprises by each

27  state agency.

28         c.  The dollar amount and percentage of contracts

29  awarded indirectly to certified minority business enterprises

30  as subcontractors by each state agency.

31

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  1         d.  The total dollar amount and percentage of contracts

  2  awarded to certified minority business enterprises, whether

  3  directly or indirectly, as subcontractors.

  4         e.  A statement and assessment of good faith efforts

  5  taken by each state agency.

  6         f.  A status report of agency compliance with

  7  subsection (6), as determined by the Minority Business

  8  Enterprise Office.

  9         (5)

10         (d)  Should the proposed procurement proceed to

11  competitive solicitation bidding, the office is hereby granted

12  standing to protest, pursuant to this section, in a timely

13  manner, any contract award during in competitive solicitation

14  bidding for contractual services and construction contracts

15  that fail to include minority business enterprise

16  participation, if any responsible and responsive vendor

17  responding bidder has demonstrated the ability to achieve any

18  level of participation, or, any contract award for commodities

19  where, a reasonable and economical opportunity to reserve a

20  contract, statewide or district level, for minority

21  participation was not executed or, an agency failed to adopt

22  an applicable preference for minority participation. The bond

23  requirement shall be waived for the office purposes of this

24  subsection.

25         (e)  An agency may presume that a vendor bidder

26  offering no minority participation has not made a good faith

27  effort when other vendors bidders offer minority participation

28  of firms listed as relevant to the agency's purchasing needs

29  in the pertinent locality or statewide to complete the

30  project.

31

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  1         Section 20.  Section 287.096, Florida Statutes, is

  2  created to read:

  3         287.096  Thresholds for exempt programs.--All products

  4  offered for purchase to a state agency by an entity exempt

  5  from this chapter pursuant to s. 287.095, s. 413.036, or s.

  6  946.515, shall be produced in majority part by inmate labor

  7  pursuant to chapter 946, or by blind or severely handicapped

  8  persons pursuant to ss. 413.032-413.037.

  9         Section 21.  Paragraph (g) of subsection (1),

10  subsection (2), and paragraph (a) of subsection (3) of section

11  287.133, Florida Statutes, is amended to read:

12         287.133  Public entity crime; denial or revocation of

13  the right to transact business with public entities.--

14         (1)  As used in this section:

15         (g)  "Public entity crime" means a violation of any

16  state or federal law by a person with respect to and directly

17  related to the transaction of business with any public entity

18  or with an agency or political subdivision of any other state

19  or with the United States, including, but not limited to, any

20  bid, proposal, or reply or contract for goods or services, any

21  lease for real property, or any contract for the construction

22  or repair of a public building or public work, involving

23  antitrust, fraud, theft, bribery, collusion, racketeering,

24  conspiracy, or material misrepresentation.

25         (2)(a)  A person or affiliate who has been placed on

26  the convicted vendor list following a conviction for a public

27  entity crime may not submit a bid, proposal, or reply on a

28  contract to provide any goods or services to a public entity,

29  may not submit a bid, proposal, or reply on a contract with a

30  public entity for the construction or repair of a public

31  building or public work, may not submit bids, proposals, or

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  1  replies on leases of real property to a public entity, may not

  2  be awarded or perform work as a contractor, supplier,

  3  subcontractor, or consultant under a contract with any public

  4  entity, and may not transact business with any public entity

  5  in excess of the threshold amount provided in s. 287.017 for

  6  CATEGORY TWO for a period of 36 months from the date of being

  7  placed on the convicted vendor list.

  8         (b)  No public entity shall accept any bid, proposal,

  9  or reply from, award any contract to, or transact any business

10  in excess of the threshold amount provided in s. 287.017 for

11  CATEGORY TWO with any person or affiliate on the convicted

12  vendor list for a period of 36 months from the date that

13  person or affiliate was placed on the convicted vendor list

14  unless that person or affiliate has been removed from the list

15  pursuant to paragraph (3)(f).  No public entity which was

16  transacting business with a person at the time of the

17  commission of a public entity crime which resulted in that

18  person being placed on the convicted vendor list shall accept

19  any bid, proposal, or reply from, award any contract to, or

20  transact any business with any other person who is under the

21  same, or substantially the same, control as the person whose

22  name appears on the convicted vendor list so long as that

23  person's name appears on the convicted vendor list.

24         (3)(a)  All invitations to bid as defined by s.

25  287.012(11), requests for proposals, and invitations to

26  negotiate, all as defined in by s. 287.012(15), and any

27  contract document of the state described by s. 287.058 shall

28  contain a statement informing persons of the provisions of

29  paragraph (2)(a).

30

31

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  1         Section 22.  Subsection (2) and paragraphs (a) and (c)

  2  of subsection (3) of section 287.134, Florida Statutes, are

  3  amended to read:

  4         287.134  Discrimination; denial or revocation of the

  5  right to transact business with public entities.--

  6         (2)(a)  An entity or affiliate who has been placed on

  7  the discriminatory vendor list may not submit a bid, proposal,

  8  or reply on a contract to provide any goods or services to a

  9  public entity;, may not submit a bid, proposal, or reply on a

10  contract with a public entity for the construction or repair

11  of a public building or public work;, may not submit bids,

12  proposals, or replies on leases of real property to a public

13  entity;, may not be awarded or perform work as a contractor,

14  supplier, subcontractor, or consultant under a contract with

15  any public entity;, and may not transact business with any

16  public entity.

17         (b)  No public entity shall accept any bid, proposal,

18  or reply from, award any contract to, or transact any business

19  with any entity or affiliate on the discriminatory vendor list

20  for a period of 36 months from the date that entity or

21  affiliate was placed on the discriminatory vendor list unless

22  that entity or affiliate has been removed from the list

23  pursuant to paragraph (3)(f).  No public entity which was

24  transacting business with an entity at the time of the

25  discrimination which resulted in that entity being placed on

26  the discriminatory vendor list shall accept any bid, proposal,

27  or reply from, award any contract to, or transact any business

28  with any other entity who is under the same, or substantially

29  the same, control as the entity whose name appears on the

30  discriminatory vendor list so long as that entity's name

31  appears on the discriminatory vendor list.

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  1         (3)(a)  All invitations to bid, as defined by s.

  2  287.012(11), requests for proposals, and invitations to

  3  negotiate, all as defined by s. 287.012 as defined by s.

  4  287.012(15),  and any written contract document of the state

  5  shall contain a statement informing entities of the provisions

  6  of paragraph (2)(a).

  7         (c)  The department shall maintain a list of the names

  8  and addresses of any entity which has been disqualified from

  9  the public contracting and purchasing process under this

10  section.  The department shall publish an initial list on

11  January 1, 2001, and shall publish an updated version of the

12  list quarterly thereafter.  The initial list and revised

13  quarterly lists shall be published electronically or in the

14  Florida Administrative Weekly. Notwithstanding this paragraph,

15  an entity or affiliate disqualified from the public

16  contracting and purchasing process pursuant to this section

17  shall be disqualified as of the date the final order is

18  entered.

19         Section 23.  Section 287.1345, Florida Statutes, is

20  amended to read:

21         287.1345  Surcharge on users of state term contracts;

22  deposit of proceeds collected.--The department of Management

23  Services may impose a surcharge upon users of state term

24  contracts in order to fund the costs, including overhead, of

25  its procurement function.  The department may provide for the

26  state term contract vendor to collect the surcharge or

27  directly collect the fee from the public agency or eligible

28  user involved.  For the purpose of compensating vendors for

29  expenses incurred in collecting such fees, the department may

30  authorize a vendor to retain a portion of the fees.  The

31  vendor may withhold the portion retained from the amount of

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  1  fees to be remitted to the department.  The department may

  2  establish negotiate the retainage as a percentage of such fees

  3  charged to users, as a flat amount, or as any other method the

  4  department deems feasible. Vendors shall maintain accurate

  5  sales summaries for purchases made from state term contracts

  6  and shall provide the summaries to the department on a

  7  quarterly basis.  Any contract remedies relating to the

  8  collection of such fees from users through vendors are

  9  enforceable, including, but not limited to, liquidated

10  damages, late fees, and the costs of collection, including

11  attorney's fees.  The fees collected pursuant to this section

12  shall be deposited into the Grants and Donations Trust Fund of

13  the department and are subject to appropriation as provided by

14  law.  The Executive Office of the Governor may exempt

15  transactions from the payment of the surcharge if payment of

16  such surcharge would cause the state, a political subdivision,

17  or unit of local government to lose federal funds or in other

18  cases where such exemption is in the public interest.  The

19  fees collected pursuant to this section and interest income on

20  such fees shall not be deemed to be income of a revenue nature

21  for purposes of chapter 215.

22         Section 24.  Subsection (1) of section 283.33, Florida

23  Statutes, is amended to read:

24         283.33  Printing of publications; lowest bidder

25  awards.--

26         (1)  Publications may be printed and prepared in-house,

27  by another agency or the Legislature, or purchased on bid,

28  whichever is more economical and practicable as determined by

29  the agency.  An agency may contract for binding separately

30  when more economical or practicable, whether or not the

31  remainder of the printing is done in-house.  A bidder may

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  1  subcontract for binding and still be considered a qualified

  2  bidder or offeror, notwithstanding s. 287.012(13).

  3         Section 25.  Sections 287.073 and 287.121, Florida

  4  Statutes, are repealed.

  5         Section 26.  This act shall take effect July 1, 2002.

  6

  7            *****************************************

  8                          HOUSE SUMMARY

  9
      Revises provisions relating to competitive bidding on
10    public contracts for commodities, insurance, and
      contractual services to specify application to
11    invitations to bid, invitations to negotiate, requests
      for information, requests for proposals, requests for
12    quotes and replies, to state term contracts, and to
      responsive and responsible vendors. See bill for details.
13

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