HB 1155

1	A bill to be entitled
2	An act relating to procurement contracting; providing a
3	popular name; amending s. 20.22, F.S.; creating the
4	Division of Procurement in the Department of Management
5	Services; establishing bureaus within the division;
6	amending s. 273.05, F.S.; requiring the division to adopt
7	rules and guidelines for certification and disposition of
8	surplus property; amending s. 287.001, F.S.; providing
9	additional legislative intent; amending s. 287.012, F.S.;
10	revising definitions; amending ss. 287.017, 287.022,
11	287.025, 287.045, 287.055, 287.0572, 287.058, 287.0731,
12	287.083, 287.0834, 287.131, and 287.134, F.S., to conform;
13	applying procurement provisions of the department to the
14	division; correcting a cross reference; creating s.
15	287.0265, F.S.; providing definitions; creating the Center
16	for Outsourcing within the division for certain purposes;
17	establishing a board to oversee agency outsourcing;
18	specifying board members; providing criteria; providing
19	responsibilities of the center and board; specifying
20	requirements for a state outsourcing review process;
21	requiring agencies to submit certain information to the
22	center; amending s. 287.032, F.S.; specifying purposes of
23	the division; amending s. 287.042, F.S.; specifying
24	powers, duties, and functions of the division; amending s.
25	287.056, F.S.; revising requirements for purchases from
26	purchasing agreements and state term contracts; amending
27	s. 287.057, F.S.; revising provisions for procurement of
28	commodities or contractual services; creating s. 287.0571,
29	F.S.; requiring the division to design, implement, and
30	operate on on-line procurement subsystem; authorizing the
31	division to contract for equipment and services; requiring
32	the division to adopt rules; requiring agencies to use the
33	subsystem; authorizing other eligible users to use the
34	subsystem; creating s. 287.05712, F.S.; requiring the
35	division to maintain a list of vendors with the on-line
36	procurement subsystem; requiring vendors to register;
37	requiring the division to maintain a statewide contractor
38	performance system for certain purposes; requiring the
39	division to adopt rules; requiring the division to use the
40	subsystem for certain enforcement purposes; creating s.
41	287.0578, F.S.; authorizing use of certain contracts;
42	prohibiting certain contracts; amending s. 287.1345, F.S.;
43	authorizing the division to collect fees for using an on-
44	line procurement subsystem; specifying fee requirements
45	and limitations; revising provisions to conform; creating
46	s. 287.135, F.S.; requiring the division to maintain a
47	suspended vendor list; specifying list requirements;
48	authorizing the division to reinstate suspended vendors
49	under certain circumstances; specifying prohibited
50	activities by suspended vendors; prohibiting public
51	entities from engaging in certain activities with
52	suspended vendors; requiring competitive solicitations and
53	contract documents to contain an information statement;
54	providing definitions; requiring the division to adopt
55	rules to implement contract default procedures; providing
56	requirements; amending s. 282.005, F.S.; revising
57	legislative findings and intent; amending s. 946.515,
58	F.S.; correcting a cross reference; requiring the division
59	to submit a report to the Legislature; providing
60	requirements; providing an appropriation and authorizing
61	positions for the division; providing an effective date.
62
63	Be It Enacted by the Legislature of the State of Florida:
64
65	Section 1.  Popular name.--This act may be cited as the
66	"2005 Efficiency in Procurement and Contracting Act."
67	Section 2.  Paragraph (i) is added to subsection (2) of
68	section 20.22, Florida Statutes, to read:
69	20.22  Department of Management Services.--There is created
70	a Department of Management Services.
71	(2)  The following divisions and programs within the
72	Department of Management Services are established:
73	(i)  Division of Procurement.
74	1.  Bureau of General Procurement.
75	2.  Bureau of Information Technology Procurement.
76	3.  Bureau of Policy, Procedure, Management Information
77	Systems, and Professional Development.
78	4.  Bureau of Major Acquisitions.
79	5.  Center for Outsourcing.
80	Section 3.  Subsection (4) of section 273.05, Florida
81	Statutes, is amended to read:
82	273.05  Surplus property.--
83	(4)  The Division of Procurement of the Department of
84	Management Services Each custodian shall adopt promulgate rules
85	or guidelines regarding the certification of surplus property
86	and the disposition of such property.
87	Section 4.  Section 287.001, Florida Statutes, is amended
88	to read:
89	287.001  Legislative intent.--The Legislature recognizes
90	that fair and open competition is a basic tenet of public
91	procurement; that such competition reduces the appearance and
92	opportunity for favoritism and inspires public confidence that
93	contracts are awarded equitably and economically; and that
94	documentation of the acts taken and effective monitoring
95	mechanisms are important means of curbing any improprieties and
96	establishing public confidence in the process by which
97	commodities and contractual services are procured. It is
98	essential to the effective and ethical procurement of
99	commodities and contractual services that there be a system of
100	uniform procedures to be utilized by state agencies in managing
101	and procuring commodities and contractual services; that
102	detailed justification of agency decisions in the procurement of
103	commodities and contractual services be maintained; and that
104	adherence by the agency and the vendor to specific ethical
105	considerations be required. It is also the intent of the
106	Legislature that all future changes to law affecting outsourcing
107	and procurement of commodities and contractual services be made
108	in this chapter.
109	Section 5.  Subsections (1) and (9) of section 287.012,
110	Florida Statutes, are amended, subsections (11) through (28) of
111	said section are renumbered as subsections (12) through (29),
112	respectively, a new subsection (11) is added to said section,
113	present subsections (11), (12), (13), and (27) of said section
114	are amended, and subsection (30) is added to said section, to
115	read:
116	287.012  Definitions.--As used in this part, the term:
117	(1)  "Agency" means any of the various state officers,
118	departments, boards, commissions, divisions, bureaus, and
119	councils and any other unit of organization, however designated,
120	of the executive branch of state government. "Agency" does not
121	include the university and college boards of trustees or the
122	state universities and colleges.
123	(9)  "Contractual service" means the rendering by a
124	contractor of its time and effort rather than the furnishing of
125	specific commodities. The term applies only to those services
126	rendered by individuals and firms who are independent
127	contractors, and such services may include, but are not limited
128	to, evaluations; consultations; maintenance; accounting;
129	security; management systems; management consulting; educational
130	training programs; research and development studies or reports
131	on the findings of consultants engaged thereunder; and
132	professional, technical, and social services. "Contractual
133	service" does not include any contract for the furnishing of
134	labor or materials for the construction, renovation, repair,
135	modification, or demolition of any facility, building, portion
136	of building, utility, park, parking lot, or structure or other
137	improvement to real property entered into pursuant to chapter
138	255 and rules adopted thereunder. A contract in which an agency,
139	in exchange for revenue, authorizes a vendor to use governmental
140	authority or property for the purpose of selling any good or
141	service to any person shall be considered to be the procurement
142	of a contractual service and the purchasing category of such
143	contract shall be determined by the total revenue estimated to
144	be received by the contractor under the contract.
145	(11)  "Division" means the Division of Procurement of the
146	Department of Management Services.
147	(12)(11)  "Electronic posting" or "electronically post"
148	means the posting of solicitations, agency decisions or intended
149	decisions, or other matters relating to procurement on a
150	centralized Internet website designated by the division
151	department for this purpose.
152	(13)(12)  "Eligible user" means any person or entity
153	authorized by the division department pursuant to rule to
154	purchase from state term contracts or to use the on-line
155	procurement system.
156	(14)(13)  "Exceptional purchase" means any purchase of
157	commodities or contractual services excepted by law or rule from
158	the requirements for competitive solicitation, including, but
159	not limited to, purchases from a single source; purchases upon
160	receipt of less than two responsive bids, proposals, or replies;
161	purchases made by an agency, after receiving approval from the
162	division department, from a contract procured, pursuant to s.
163	287.057(1), (2), or (3), by another agency; and purchases made
164	without advertisement in the manner required by s.
165	287.042(5)(3)(b).
166	(28)(27)  "State term contract" means a term contract that
167	is competitively procured by the division department pursuant to
168	s. 287.057 and that is used by agencies and eligible users
169	pursuant to s. 287.056.
170	(30)  "Vendor" means a person who desires to become a
171	contractor or otherwise sell commodities or contractual services
172	to an agency.
173	Section 6.  Section 287.017, Florida Statutes, is amended
174	to read:
175	287.017  Purchasing categories, threshold amounts;
176	procedures for automatic adjustment by division department.--
177	(1)  The following purchasing categories are hereby
178	created:
179	(a)  CATEGORY ONE: $15,000.
180	(b)  CATEGORY TWO: $25,000.
181	(c)  CATEGORY THREE: $50,000.
182	(d)  CATEGORY FOUR: $150,000.
183	(e)  CATEGORY FIVE: $250,000.
184	(2)  The division department shall adopt rules to adjust
185	the amounts provided in subsection (1) based upon the rate of
186	change of a nationally recognized price index. Such rules shall
187	include, but not be limited to, the following:
188	(a)  Designation of the nationally recognized price index
189	or component thereof used to calculate the proper adjustment
190	authorized in this section.
191	(b)  The procedure for rounding results.
192	(c)  The effective date of each adjustment based upon the
193	previous calendar year data.
194	Section 7.  Section 287.022, Florida Statutes, is amended
195	to read:
196	287.022  Purchase of insurance.--
197	(1)  Insurance, while not a commodity, nevertheless shall
198	be purchased for all agencies by the division department, except
199	that agencies may purchase title insurance for land acquisition
200	and may make emergency purchases of insurance pursuant to s.
201	287.057(5)(a). The procedures for purchasing insurance, whether
202	the purchase is made by the division department or by the
203	agencies, shall be the same as those set forth herein for the
204	purchase of commodities.
205	(2)  When an insurer or agent pays a commission or any
206	portion thereof to any person, on insurance purchased under this
207	part, such payment shall be reported to the division department
208	in writing and under oath within 30 days thereafter. Any failure
209	to report as required herein shall subject the insurer or agent
210	to the penalties provided in s. 624.15.
211	(3)  The division department and the Division of State
212	Group Insurance shall not prohibit or limit any properly
213	licensed insurer, health maintenance organization, prepaid
214	limited health services organization, or insurance agent from
215	competing for any insurance product or plan purchased, provided,
216	or endorsed by the division department or the Division of State
217	Group Insurance on the basis of the compensation arrangement
218	used by the insurer or organization for its agents.
219	Section 8.  Subsection (4) of section 287.025, Florida
220	Statutes, is amended to read:
221	287.025  Prohibition against certain insurance coverage on
222	specified state property or insurable subjects.--
223	(4)  No primary insurance contracts shall be purchased on
224	any property or insurable subjects when the same is loaned to,
225	leased by, or intended to be leased by, the state or its
226	departments, divisions, bureaus, commissions, or agencies unless
227	such coverage is required by the terms of the lease agreement
228	and unless the insurance coverages required by the provisions of
229	the lease are approved in writing by the division Department of
230	Management Services.
231	Section 9.  Section 287.0265, Florida Statutes, is created
232	to read:
233	287.0265  Center for Outsourcing.--
234	(1)  For the purposes of this section:
235	(a)  "Board" means the board of the center.
236	(b)  "Center" means the Center for Outsourcing created
237	within the division.
238	(2)  The Center for Outsourcing is created in the division
239	to establish and promote best business practices in outsourcing
240	in order to improve the delivery of services to citizens by
241	agencies under the control of the Governor. Cabinet agencies are
242	encouraged, but shall not be required, to comply with this
243	section. The secretary of the Department of Management Services
244	or his or her designee shall serve as the head of the center.
245	The Bureau of Major Procurements shall provide detailed support
246	to the center.
247	(3)  A board is established within the center to oversee
248	agency outsourcing. The secretary of the Department of
249	Management Services shall serve as chair of the board. The
250	Governor shall appoint four other agency heads to serve on the
251	board, who shall serve at the pleasure of the Governor. No
252	member of the board shall be disqualified from participating in
253	board review of an outsourcing solely because the member's
254	agency is involved in the outsourcing. The members of the board
255	may not delegate their membership to a subordinate.
256	(4)  The center shall:
257	(a)  Create a centralized process for initiating,
258	reviewing, and evaluating agency outsourcings. The center and
259	any agency may initiate outsourcings.
260	(b)  Develop standards, processes, templates, and
261	guidelines for use by agencies during the outsourcing process.
262	(c)  Assist agencies in developing and updating business
263	cases.
264	(d)  Submit to the Governor, the President of the Senate,
265	and the Speaker of the House of Representatives by September 15
266	annually, a list of potential outsourcing initiatives identified
267	by agencies and the center.
268	(e)  Have rulemaking authority to implement any of the
269	provisions herein.
270	(5)  The board shall:
271	(a)  Oversee the center.
272	(b)  Implement a process for review and approval of the
273	business aspects of a proposed new or renewal of outsourcing at
274	specific points in the process.
275	(c)  Oversee the implementation of outsourcings after
276	contract execution, including, but not limited to, change
277	management, contract management, and performance measurement.
278	(6)  The process for review of state outsourcings shall
279	require:
280	(a)  Board review at the conclusion of important stages in
281	the outsourcing process for those outsourcings subject to review
282	by rule.
283	(b)  The center, at the board's direction, to furnish to
284	the President of the Senate and the Speaker of the House of
285	Representatives all documents at each of the important stages in
286	the outsourcing process, together with the board's certification
287	that the requirements of this section, the center, and the board
288	have been met.
289	(7)  Agencies shall submit to the center all information,
290	documents, or other materials required by center or board policy
291	or this chapter.
292	Section 10.  Section 287.032, Florida Statutes, is amended
293	to read:
294	287.032  Purpose of division department.--It shall be the
295	purpose of the division Department of Management Services:
296	(1)  To promote maximum competition, efficiency, economy,
297	and the conservation of energy in, and to effect coordination
298	of, in the purchase of commodities and contractual services for
299	the state.
300	(2)  To provide uniform commodity and contractual service
301	procurement policies, rules, procedures, and forms for use by
302	agencies and eligible users, and to assist agencies with
303	specific procurements or conduct specific procurements on behalf
304	of agencies, in an efficient and cost-effective manner, with
305	maximum competition.
306	(3)  To procure and distribute federal surplus tangible
307	personal property allocated to the state by the Federal
308	Government.
309	Section 11.  Section 287.042, Florida Statutes, is amended
310	to read:
311	287.042  Powers, duties, and functions.--The division
312	department shall have the following powers, duties, and
313	functions:
314	(1)(a)  To canvass all sources of supply, establish and
315	maintain a vendor list, and contract for the purchase, lease, or
316	acquisition, including purchase by installment sales or lease-
317	purchase contracts which may provide for the payment of interest
318	on unpaid portions of the purchase price, of all commodities and
319	contractual services required by any agency under this chapter.
320	Any contract providing for deferred payments and the payment of
321	interest shall be subject to specific rules adopted by the
322	division department.
323	(b)  The department may remove from its vendor list any
324	source of supply which fails to fulfill any of its duties
325	specified in a contract with the state. It may reinstate any
326	such source of supply when it is satisfied that further
327	instances of default will not occur.
328	(b)(c)  In order to promote cost-effective procurement of
329	commodities and contractual services, the division department or
330	an agency may enter into contracts that limit the liability of a
331	vendor consistent with s. 672.719.
332	(2)(a)(d)  The division department shall issue commodity
333	numbers for all products of the corporation operating the
334	correctional industry program which meet or exceed division
335	department specifications.
336	(b)(e)  The division department shall include the products
337	offered by the corporation on any listing prepared by the
338	division department which lists state term contracts executed by
339	the division department. The products or services shall be
340	placed on such list in a category based upon specification
341	criteria developed through a joint effort of the division
342	department and the corporation and approved by the division
343	department.
344	(c)(f)  The corporation may submit products and services to
345	the division department for testing, analysis, and review
346	relating to the quality and cost comparability. If, after review
347	and testing, the division department approves of the products
348	and services, the division department shall give written notice
349	thereof to the corporation. The corporation shall pay a
350	reasonable fee charged for testing its products by the
351	Department of Agriculture and Consumer Services.
352	(3)(g)  The division department shall include products and
353	services that are offered by a qualified nonprofit agency for
354	the blind or for the other severely handicapped organized
355	pursuant to chapter 413 and that have been determined to be
356	suitable for purchase pursuant to s. 413.035 on any division
357	department listing of state term contracts. The products and
358	services shall be placed on such list in a category based upon
359	specification criteria developed by the division department in
360	consultation with the qualified nonprofit agency.
361	(h)  The department may collect fees for the use of its
362	electronic information services. The fees may be imposed on an
363	individual transaction basis or as a fixed subscription for a
364	designated period of time. At a minimum, the fees shall be
365	determined in an amount sufficient to cover the department's
366	projected costs of such services, including overhead in
367	accordance with the policies of the Department of Management
368	Services for computing its administrative assessment. All fees
369	collected pursuant to this paragraph shall be deposited in the
370	Grants and Donations Trust Fund for disbursement as provided by
371	law.
372	(4)(2)(a)  To establish purchasing agreements and procure
373	state term contracts for commodities and contractual services,
374	pursuant to s. 287.057, under which state agencies shall, and
375	eligible users may, make purchases pursuant to s. 287.056. The
376	division department may restrict purchases from some term
377	contracts to state agencies only for those term contracts where
378	the inclusion of other governmental entities will have an
379	adverse effect on competition or to those federal facilities
380	located in this state. In such planning or purchasing the Office
381	of Supplier Diversity may monitor to ensure that opportunities
382	are afforded for contracting with minority business enterprises.
383	The division department, for state term contracts, and all
384	agencies, for multiyear contractual services or term contracts,
385	shall explore reasonable and economical means to utilize
386	certified minority business enterprises. Purchases by any
387	county, municipality, private nonprofit community transportation
388	coordinator designated pursuant to chapter 427, while conducting
389	business related solely to the Commission for the Transportation
390	Disadvantaged, or other local public agency under the provisions
391	in the state purchasing contracts, and purchases, from the
392	corporation operating the correctional work programs, of
393	products or services that are subject to paragraph (2)(c)
394	(1)(f), are exempt from the competitive solicitation
395	requirements otherwise applying to their purchases.
396	(b)  As an alternative to any provision in s. 120.57(3)(c),
397	the division department may proceed with the competitive
398	solicitation or contract award process of a term contract when
399	the secretary of the division department or his or her designee
400	sets forth in writing particular facts and circumstances which
401	demonstrate that the delay incident to staying the solicitation
402	or contract award process would be detrimental to the interests
403	of the state. After the award of a contract resulting from a
404	competitive solicitation in which a timely protest was received
405	and in which the state did not prevail, the contract may be
406	canceled and reawarded.
407	(c)  Any person who files an action protesting a decision
408	or intended decision pertaining to contracts administered by the
409	division department, a water management district, or an agency
410	pursuant to s. 120.57(3)(b) shall post with the division
411	department, the water management district, or the agency at the
412	time of filing the formal written protest a bond payable to the
413	division department, the water management district, or agency in
414	an amount equal to 1 percent of the estimated contract amount.
415	For protests of decisions or intended decisions pertaining to
416	exceptional purchases, the bond shall be in an amount equal to 1
417	percent of the estimated contract amount for the exceptional
418	purchase. The estimated contract amount shall be based upon the
419	contract price submitted by the protestor or, if no contract
420	price was submitted, the division department, water management
421	district, or agency shall estimate the contract amount based on
422	factors including, but not limited to, the price of previous or
423	existing contracts for similar commodities or contractual
424	services, the amount appropriated by the Legislature for the
425	contract, or the fair market value of similar commodities or
426	contractual services. The agency shall provide the estimated
427	contract amount to the vendor within 72 hours, excluding
428	Saturdays, Sundays, and state holidays, after the filing of the
429	notice of protest by the vendor. The estimated contract amount
430	is not subject to protest pursuant to s. 120.57(3). The bond
431	shall be conditioned upon the payment of all costs and charges
432	that are adjudged against the protestor in the administrative
433	hearing in which the action is brought and in any subsequent
434	appellate court proceeding. In lieu of a bond, the division
435	department, the water management district, or agency may, in
436	either case, accept a cashier's check, official bank check, or
437	money order in the amount of the bond. If, after completion of
438	the administrative hearing process and any appellate court
439	proceedings, the division department, water management district,
440	or agency prevails, it shall recover all costs and charges which
441	shall be included in the final order or judgment, excluding
442	attorney's fees. This section shall not apply to protests filed
443	by the Office of Supplier Diversity. Upon payment of such costs
444	and charges by the protestor, the bond, cashier's check,
445	official bank check, or money order shall be returned to the
446	protestor. If, after the completion of the administrative
447	hearing process and any appellate court proceedings, the
448	protestor prevails, the protestor shall recover from the
449	division department, water management district, or agency all
450	costs and charges which shall be included in the final order or
451	judgment, excluding attorney's fees.
452	(5)(3)  To establish a system of coordinated, uniform
453	procurement policies, procedures, and practices to be used by
454	agencies in acquiring commodities and contractual services,
455	which shall include, but not be limited to:
456	(a)  Development of a list of interested vendors to be
457	maintained by classes of commodities and contractual services.
458	This list shall not be used to prequalify vendors or to exclude
459	any interested vendor from bidding.
460	(a)(b)1.  Development of procedures for advertising
461	solicitations. These procedures must provide for electronic
462	posting of solicitations for at least 10 days before the date
463	set for receipt of bids, proposals, or replies, unless the
464	division department or other agency determines in writing that a
465	shorter period of time is necessary to avoid harming the
466	interests of the state. The Office of Supplier Diversity may
467	consult with the division department regarding the development
468	of solicitation distribution procedures to ensure that maximum
469	distribution is afforded to certified minority business
470	enterprises as defined in s. 288.703.
471	(b)2.  Development of procedures for electronic posting.
472	The division department shall designate a centralized website on
473	the Internet for the division department and other agencies to
474	electronically post solicitations, decisions or intended
475	decisions, and other matters relating to procurement. From July
476	1, 2002, until July 1, 2003, the department shall publish a
477	notice in each edition of the Florida Administrative Weekly
478	which indicates the specific URL or Internet address for the
479	centralized website.
480	(c)  Development of procedures for the receipt and opening
481	of bids, proposals, or replies by an agency. Such procedures
482	shall provide the Office of Supplier Diversity an opportunity to
483	monitor and ensure that the contract award is consistent with
484	the requirements of s. 287.09451.
485	(d)  Development of procedures to be used by an agency in
486	deciding to contract, including, but not limited to, identifying
487	and assessing in writing project needs and requirements,
488	availability of agency employees, budgetary constraints or
489	availability, facility equipment availability, current and
490	projected agency workload capabilities, and the ability of any
491	other state agency to perform the services.
492	(e)  Development of procedures to be used by an agency in
493	managing its contracts. These procedures shall include a
494	requirement that agencies maintain maintaining a contract file
495	for each contract which shall include, but not be limited to,
496	all pertinent information relating to the contract during the
497	preparatory stages; a copy of the solicitation; documentation
498	relating to the solicitation process; opening of bids,
499	proposals, or replies; evaluation and tabulation of bids,
500	proposals, or replies; and determination and notice of award of
501	contract.
502	(f)  Development of procedures to be used by an agency for
503	issuing solicitations that include requirements to describe
504	commodities, services, scope of work, and deliverables in a
505	manner that promotes competition.
506	(g)  Development of procedures to be used by an agency when
507	issuing requests for information and requests for quotes.
508	(6)(4)(a)  To prescribe the methods of securing competitive
509	sealed bids, proposals, and replies. Such methods may include,
510	but are not limited to, procedures for identifying vendors;
511	setting qualifications; conducting conferences or written
512	question and answer periods for purposes of responding to vendor
513	questions; evaluating bids, proposals, and replies; ranking and
514	selecting vendors; and conducting negotiations.
515	(b)  To prescribe, in consultation with the State
516	Technology Office, procedures for procuring information
517	technology and information technology consultant services which
518	provide for public announcement and qualification, competitive
519	solicitations, contract award, and prohibition against
520	contingent fees. Such procedures shall be limited to information
521	technology consultant contracts for which the total project
522	costs, or planning or study activities, are estimated to exceed
523	the threshold amount provided for in s. 287.017, for CATEGORY
524	TWO.
525	(7)(5)  To prescribe specific commodities and quantities to
526	be purchased locally.
527	(8)(6)(a)  To govern the purchase by any agency of any
528	commodity or contractual service and to establish standards and
529	specifications for any commodity. Except as provided in this
530	section, the division may delegate to agencies the authority for
531	the procurement of commodities or contractual services.
532	(b)  Except for the purchase of insurance, The division
533	department may not delegate to agencies the authority to procure
534	insurance for the procurement of and contracting for commodities
535	or contractual services.
536	(c)  If an agency is procuring a commodity or contractual
537	service that is costly, extremely complex, or otherwise
538	extraordinary, the division shall assist the agency with the
539	procurement. This assistance may include, but is not limited to,
540	developing and updating business cases and solicitation
541	documents, supporting contract negotiations, offering contract
542	drafting assistance, changing management, measuring performance,
543	and managing contracts.
544	(d)  The division shall adopt rules providing the criteria
545	determining which projects require division assistance. At a
546	minimum, such rules shall provide that the division shall
547	participate in all procurements having a total estimated cost of
548	$5 million or greater and that the division may assist with
549	procurements having a total estimated cost below $5 million.
550	(9)(7)  To establish definitions and classes of commodities
551	and contractual services. Agencies shall follow the definitions
552	and classes of commodities and contractual services established
553	by the division department in acquiring or purchasing
554	commodities or contractual services. The authority of the
555	division department under this section shall not be construed to
556	impair or interfere with the determination by state agencies of
557	their need for, or their use of, services including particular
558	specifications.
559	(10)  To govern the sale, transfer, trade, or other
560	disposal of surplus property and supplies belonging to the
561	state.
562	(11)  To provide for the professional development of
563	procurement personnel, including, but not limited to,
564	establishing a training and certification program for
565	procurement officers, procurement managers, negotiators,
566	evaluators, contract managers, and contract administrators and
567	recommending minimum qualifications and salary.
568	(12)  To review or request reviews of selected agency
569	procurements or procurement organizations to monitor compliance
570	with division rules and state law.
571	(13)(8)  To provide any commodity and contractual service
572	purchasing rules to the Chief Financial Officer and all agencies
573	through an electronic medium or other means. Agencies may not
574	approve any account or request any payment of any account for
575	the purchase of any commodity or the procurement of any
576	contractual service covered by a purchasing or contractual
577	service rule except as authorized therein. The division
578	department shall furnish copies of rules adopted by the division
579	department to any county, municipality, or other local public
580	agency requesting them.
581	(14)(9)  To require that every agency furnish information
582	relative to its commodity and contractual services purchases and
583	methods of purchasing commodities and contractual services to
584	the division department when so requested.
585	(15)(a)(10)  To require agencies to electronically maintain
586	statistical data for each acquisition as prescribed by the
587	division.
588	(b)  To prepare statistical data concerning the method of
589	procurement, terms, usage, and disposition of commodities and
590	contractual services by agencies. All agencies shall furnish
591	such information for this purpose to the office and to the
592	division department, as the division department or office may
593	call for, but no less frequently than annually, on such forms or
594	in such manner as the division department may prescribe. The
595	division shall electronically maintain contract information,
596	including, at a minimum, vendor names, total contract dollar
597	amounts, whether the contract is competitive or noncompetitive,
598	the amount of small business, minority business, and work
599	awarded and performed in this state or outside this state.
600	Reports including this information shall be provided to the
601	President of the Senate and the Speaker of the House of
602	Representatives by January 31 and July 31 of each year at a
603	minimum for contracts executed during the previous 6 months.
604	(16)(11)  To establish and maintain programs for the
605	purpose of disseminating information to government, industry,
606	educational institutions, and the general public concerning
607	policies, procedures, rules, and forms for the procurement of
608	commodities and contractual services.
609	(17)(12)  Except as otherwise provided herein, to adopt
610	rules necessary to carry out the purposes of this section,
611	including the authority to delegate to any agency any and all of
612	the responsibility conferred by this section, retaining to the
613	division department any and all authority for supervision
614	thereof. Such purchasing of commodities and procurement of
615	contractual services by state agencies shall be in strict
616	accordance with the rules and procedures prescribed by the
617	division department.
618	(18)(13)  If the division department determines in writing
619	that it is in the best interest of the state, to award to
620	multiple suppliers contracts for commodities and contractual
621	services established by the division department for use by all
622	agencies. Such awards may be on a statewide or regional basis.
623	If regional contracts are established by the division
624	department, multiple supplier awards may be based upon multiple
625	awards for regions. Agencies may award contracts to a
626	responsible and responsive vendor on a statewide or regional
627	basis.
628	(19)(14)  To procure and distribute federal surplus
629	tangible personal property allocated to the state by the Federal
630	Government.
631	(20)(15)(a)  To enter into joint agreements with
632	governmental agencies, as defined in s. 163.3164(10), for the
633	purpose of pooling funds for the purchase of commodities or
634	information technology that can be used by multiple agencies.
635	However, the department shall consult with the State Technology
636	Office on joint agreements that involve the purchase of
637	information technology. Agencies entering into joint purchasing
638	agreements with the division department or the State Technology
639	Office shall authorize the division department or the State
640	Technology Office to contract for such purchases on their
641	behalf.
642	(b)  Each agency that has been appropriated or has existing
643	funds for such purchases, shall, upon contract award by the
644	division department, transfer their portion of the funds into
645	the division's department's Grants and Donations Trust Fund for
646	payment by the division department. These funds shall be
647	transferred by the Executive Office of the Governor pursuant to
648	the agency budget amendment request provisions in chapter 216.
649	(c)  Agencies that sign such joint agreements are
650	financially obligated for their portion of the agreed-upon
651	funds. If any agency becomes more than 90 days delinquent in
652	paying such funds, the division department shall certify to the
653	Chief Financial Officer the amount due, and the Chief Financial
654	Officer shall transfer the amount due to the Grants and
655	Donations Trust Fund of the division department from any of the
656	agency's available funds. The Chief Financial Officer shall
657	report all such transfers and the reasons for such transfers to
658	the Executive Office of the Governor and the legislative
659	appropriations committees.
660	(21)(16)(a)  To evaluate contracts let by the Federal
661	Government, another state, or a political subdivision for the
662	provision of commodities and contract services, and, when it is
663	determined in writing to be cost-effective and in the best
664	interest of the state, to enter into a written agreement
665	authorizing an agency to make purchases under a contract
666	approved by the division department and let by the Federal
667	Government, another state, or a political subdivision.
668	(b)  For contracts pertaining to the provision of
669	information technology, the State Technology Office, in
670	consultation with the division department, shall assess the
671	technological needs of a particular agency, evaluate the
672	contracts, and determine whether to enter into a written
673	agreement with the letting federal, state, or political
674	subdivision body to provide information technology for a
675	particular agency.
676	(22)(17)(a)  To enter into contracts pursuant to chapter
677	957, and to acquire the contractual rights and assume the
678	contractual obligations of the Correctional Privatization
679	Commission in contracts previously entered into pursuant to
680	chapter 957, for the designing, financing, acquiring, leasing,
681	constructing, or operating of private correctional facilities.
682	The division department shall enter into a contract or contracts
683	with one contractor per facility for the designing, acquiring,
684	financing, leasing, constructing, and operating of that facility
685	or may, if specifically authorized by the Legislature,
686	separately contract for any such services.
687	(b)  To manage and enforce compliance with existing or
688	future contracts entered into pursuant to chapter 957.
689
690	The division department may not delegate the responsibilities
691	conferred by this subsection.
692	Section 12.  Section 287.045, Florida Statutes, is amended
693	to read:
694	287.045  Procurement of products and materials with
695	recycled content.--
696	(1)(a)  The division department, in cooperation with the
697	Department of Environmental Protection, shall review and revise
698	existing procurement procedures and specifications for the
699	purchase of products and materials to eliminate any procedures
700	and specifications that explicitly discriminate against products
701	and materials with recycled content except where such procedures
702	and specifications are necessary to protect the public health,
703	safety, and welfare.
704	(b)  Each agency shall review and revise its procurement
705	procedures and specifications for the purchase of products and
706	materials to eliminate any procedures and specifications that
707	explicitly discriminate against products and materials with
708	recycled content, except if such procedures and specifications
709	are necessary to protect the public health, safety, and welfare.
710	(2)(a)  The division department and each agency shall
711	review and revise its procurement procedures and specifications
712	for the purchase of products and materials to ensure to the
713	maximum extent feasible that each agency uses state contracts to
714	purchase products or materials that may be recycled or reused
715	when these products or materials are discarded.
716	(b)  The Auditor General shall assist in monitoring the
717	product procurement requirements.
718	(3)  As part of the review and revision required in
719	subsection (2), the division department and each agency shall
720	review its procurement provisions and specifications for the
721	purchase of products and materials to determine which products
722	or materials with recycled content could be procured by the
723	division department or other agencies and the amount of recycled
724	content that can technologically be contained in such products
725	or materials. The division department and other agencies must
726	use the amounts of recycled content and postconsumer recovered
727	material determined by the division department in issuing
728	solicitations for contracts for the purchase of such products or
729	materials.
730	(4)  Upon completion of the review required in subsection
731	(3), the division department and other agencies shall require
732	that a person who submits a bid, proposal, or reply for a
733	contract for the purchase of products or materials identified in
734	subsection (3) and who wishes to be considered for the price
735	preference described in subsection (5) certify in writing the
736	percentage of recycled content in the product or material that
737	is subject to the bid, proposal, or reply. A person may certify
738	that the product or material contains no recycled content.
739	(5)  Upon evaluation of bids, proposals, or replies for
740	every public contract that involves the purchase of products or
741	materials identified in subsection (3), the division department
742	or other agency shall identify the lowest responsible and
743	responsive vendor and other responsible and responsive vendors
744	who have certified that the products or materials contain at
745	least the minimum percentage of recycled content and
746	postconsumer recovered material that is set forth in the
747	solicitation. The division department or agency may consider
748	life-cycle costing when evaluating a bid, proposal, or reply on
749	a product that consists of recycled materials. The division
750	department shall adopt rules that specify the criteria to be
751	used when considering life-cycle costing in evaluating bids,
752	proposals, or replies. The rules must take into consideration
753	the specified warranty periods for products and the comparative
754	expected service life relative to the cost of the products. In
755	awarding a contract for the purchase of products or materials,
756	the division department or other agency may allow up to a 10-
757	percent price preference to a responsible and responsive vendor
758	who has certified that the products or materials contain at
759	least the minimum percentage of recycled content and
760	postconsumer recovered material and up to an additional 5-
761	percent price preference to a responsible and responsive vendor
762	who has certified that the products or material are made of
763	materials recovered in this state. The amount of the price
764	preference must be commensurate with the certified amounts of
765	recycled material and postconsumer recovered material and
766	materials recycled from products in this state, contained in the
767	product or materials on a sliding scale as established by
768	division department rule, which rule shall not become effective
769	prior to November 1, 1994. Reusable materials and products shall
770	be used where economically and technically feasible. If no
771	vendors offer products or materials with measurable life-cycle
772	costing factors or the minimum prescribed recycled and
773	postconsumer content, the contract must be awarded to the lowest
774	qualified responsible and responsive vendor.
775	(6)  For the purposes of this section, the term "recycled
776	content" means materials that have been recycled that are
777	contained in the products or materials to be procured,
778	including, but not limited to, paper, aluminum, steel, glass,
779	plastics, and composted material. The term does not include the
780	virgin component of internally generated scrap that is commonly
781	used in industrial or manufacturing processes or such waste or
782	scrap purchased from another manufacturer who manufactures the
783	same or a closely related product. Recycled content printing and
784	fine writing grades of paper shall contain at least 10 percent
785	postconsumer recovered materials.
786	(7)  Any person may request the division department to
787	evaluate a product or material with recycled content if the
788	product or material is eligible for inclusion under state
789	contracts. The division department shall review each reasonable
790	proposal to determine its merit and, if it finds that the
791	product or material may be used beneficially, it may incorporate
792	that product or material into its procurement procedures.
793	(8)  The division department and each agency shall review
794	and revise its procedures and specifications on a continuing
795	basis to encourage the use of products and materials with
796	recycled content and postconsumer recovered material and shall,
797	in developing new procedures and specifications, encourage the
798	use of products and materials with recycled content and
799	postconsumer recovered material.
800	(9)  After November 1, 1994, The division department may
801	discontinue contracting for products or materials the recycled
802	content of which does not meet the requirements of subsection
803	(3) if it determines that products or materials meeting those
804	requirements are available at a cost not to exceed an additional
805	10 percent of comparable virgin products.
806	(10)  An agency, or a contractor vendor contracting with
807	such agency with respect to work performed under contract, must
808	procure products or materials with recycled content if the
809	division department determines that those products or materials
810	are available pursuant to subsection (5). Notwithstanding any
811	other provision to the contrary, for the purpose of this
812	section, the term "agency" means any of the various state
813	officers, departments, boards, commissions, divisions, bureaus,
814	and councils and any other unit of organization, however
815	designated, of the executive branch including the Department of
816	the Lottery, the legislative branch, the judicial branch, the
817	university and college boards of trustees, and the state
818	universities and colleges. A decision not to procure such items
819	must be based on the division's department's determination that
820	such procurement is not reasonably available within an
821	acceptable period of time or fails to meet the performance
822	standards set forth in the applicable specifications or fails to
823	meet the performance standards of the agency.
824	(11)  Each agency shall report annually to the division
825	department its total expenditures on, and use of, products with
826	recycled content and the percentage of its budget that
827	represents purchases of similar products made from virgin
828	materials. The division department shall design a uniform
829	reporting mechanism and prepare annual summaries of statewide
830	purchases delineating those with recycled content to be
831	submitted to the Governor, the President of the Senate, and the
832	Speaker of the House of Representatives.
833	Section 13.  Subsections (7), (8), and (9) of section
834	287.055, Florida Statutes, are amended to read:
835	287.055  Acquisition of professional architectural,
836	engineering, landscape architectural, or surveying and mapping
837	services; definitions; procedures; contingent fees prohibited;
838	penalties.--
839	(7)  AUTHORITY OF THE DIVISION OF PROCUREMENT OF THE
840	DEPARTMENT OF MANAGEMENT SERVICES.--Notwithstanding any other
841	provision of this section, the division Department of Management
842	Services shall be the unit agency of state government which is
843	solely and exclusively authorized and empowered to administer
844	and perform the functions described in subsections (3), (4), and
845	(5) respecting all projects for which the funds necessary to
846	complete same are appropriated to the Department of Management
847	Services, irrespective of whether such projects are intended for
848	the use and benefit of the division Department of Management
849	Services or any other agency of government. However, nothing
850	herein shall be construed to be in derogation of any authority
851	conferred on the division Department of Management Services by
852	other express provisions of law. Additionally, any agency of
853	government may, with the approval of the division Department of
854	Management Services, delegate to the division Department of
855	Management Services authority to administer and perform the
856	functions described in subsections (3), (4), and (5). Under the
857	terms of the delegation, the agency may reserve its right to
858	accept or reject a proposed contract.
859	(8)  STATE ASSISTANCE TO LOCAL AGENCIES.--On any
860	professional service contract for which the fee is over $25,000,
861	the Department of Transportation or the division Department of
862	Management Services shall provide, upon request by a
863	municipality, political subdivision, school board, or school
864	district, and upon reimbursement of the costs involved,
865	assistance in selecting consultants and in negotiating
866	consultant contracts.
867	(9)  APPLICABILITY TO DESIGN-BUILD CONTRACTS.--
868	(a)  Except as provided in this subsection, this section is
869	not applicable to the procurement of design-build contracts by
870	any agency, and the agency must award design-build contracts in
871	accordance with the procurement laws, rules, and ordinances
872	applicable to the agency.
873	(b)  The design criteria package must be prepared and
874	sealed by a design criteria professional employed by or retained
875	by the agency. If the agency elects to enter into a professional
876	services contract for the preparation of the design criteria
877	package, then the design criteria professional must be selected
878	and contracted with under the requirements of subsections (4)
879	and (5). A design criteria professional who has been selected to
880	prepare the design criteria package is not eligible to render
881	services under a design-build contract executed pursuant to the
882	design criteria package.
883	(c)  Except as otherwise provided in s. 337.11(7), the
884	division Department of Management Services shall adopt rules for
885	the award of design-build contracts to be followed by state
886	agencies. Each other agency must adopt rules or ordinances for
887	the award of design-build contracts. Municipalities, political
888	subdivisions, school districts, and school boards shall award
889	design-build contracts by the use of a competitive proposal
890	selection process as described in this subsection, or by the use
891	of a qualifications-based selection process pursuant to
892	subsections (3), (4), and (5) for entering into a contract
893	whereby the selected firm will subsequently establish a
894	guaranteed maximum price and guaranteed completion date. If the
895	procuring agency elects the option of qualifications-based
896	selection, during the selection of the design-build firm the
897	procuring agency shall employ or retain a licensed design
898	professional appropriate to the project to serve as the agency's
899	representative. Procedures for the use of a competitive proposal
900	selection process must include as a minimum the following:
901	1.  The preparation of a design criteria package for the
902	design and construction of the public construction project.
903	2.  The qualification and selection of no fewer than three
904	design-build firms as the most qualified, based on the
905	qualifications, availability, and past work of the firms,
906	including the partners or members thereof.
907	3.  The criteria, procedures, and standards for the
908	evaluation of design-build contract proposals or bids, based on
909	price, technical, and design aspects of the public construction
910	project, weighted for the project.
911	4.  The solicitation of competitive proposals, pursuant to
912	a design criteria package, from those qualified design-build
913	firms and the evaluation of the responses or bids submitted by
914	those firms based on the evaluation criteria and procedures
915	established prior to the solicitation of competitive proposals.
916	5.  For consultation with the employed or retained design
917	criteria professional concerning the evaluation of the responses
918	or bids submitted by the design-build firms, the supervision or
919	approval by the agency of the detailed working drawings of the
920	project; and for evaluation of the compliance of the project
921	construction with the design criteria package by the design
922	criteria professional.
923	6.  In the case of public emergencies, for the agency head
924	to declare an emergency and authorize negotiations with the best
925	qualified design-build firm available at that time.
926	Section 14.  Subsections (1) and (2) of section 287.056,
927	Florida Statutes, are amended to read:
928	287.056  Purchases from purchasing agreements and state
929	term contracts.--
930	(1)  Agencies shall, and Eligible users may, purchase
931	commodities and contractual services from purchasing agreements
932	established and state term contracts procured, pursuant to s.
933	287.057, by the division department.
934	(2)  Unless otherwise authorized by division rule, agencies
935	shall may have the option to purchase commodities or contractual
936	services from state term contracts to satisfy agency demand for
937	commodities and contractual services available on those
938	contracts. Other eligible users may purchase from such contracts
939	procured, pursuant to s. 287.057, by the department which
940	contain a user surcharge pursuant to s. 287.1345 as determined
941	by the department.
942	Section 15.  Subsections (5), (6), (7), (16), (17), (23),
943	and (24) of section 287.057, Florida Statutes, are amended to
944	read:
945	287.057  Procurement of commodities or contractual
946	services.--
947	(5)  When the purchase price of commodities or contractual
948	services exceeds the threshold amount provided in s. 287.017 for
949	CATEGORY TWO, no purchase of commodities or contractual services
950	may be made without receiving competitive sealed bids,
951	competitive sealed proposals, or competitive sealed replies
952	unless:
953	(a)  The agency head determines in writing that an
954	immediate danger to the public health, safety, or welfare or
955	other substantial loss to the state requires emergency action.
956	After the agency head makes such a written determination, the
957	agency may proceed with the procurement of commodities or
958	contractual services necessitated by the immediate danger,
959	without receiving competitive sealed bids, competitive sealed
960	proposals, or competitive sealed replies. However, such
961	emergency procurement shall be made by obtaining pricing
962	information from at least two prospective vendors, which must be
963	retained in the contract file, unless the agency determines in
964	writing that the time required to obtain pricing information
965	will increase the immediate danger to the public health, safety,
966	or welfare or other substantial loss to the state. The agency
967	shall furnish copies of all written determinations certified
968	under oath and any other documents relating to the emergency
969	action to the division department. A copy of the statement shall
970	be furnished to the Chief Financial Officer with the voucher
971	authorizing payment. The individual purchase of personal
972	clothing, shelter, or supplies which are needed on an emergency
973	basis to avoid institutionalization or placement in a more
974	restrictive setting is an emergency for the purposes of this
975	paragraph, and the filing with the division department of such
976	statement is not required in such circumstances. In the case of
977	the emergency purchase of insurance, the period of coverage of
978	such insurance shall not exceed a period of 30 days, and all
979	such emergency purchases shall be reported to the division
980	department.
981	(b)  The purchase is made by an agency from a state term
982	contract procured, pursuant to this section, by the division
983	department or by an agency, after receiving approval from the
984	division department, from a contract procured, pursuant to
985	subsection (1), subsection (2), or subsection (3), by another
986	agency.
987	(c)  Commodities or contractual services available only
988	from a single source may be excepted from the competitive-
989	solicitation requirements. When an agency believes that
990	commodities or contractual services are available only from a
991	single source, the agency shall electronically post, in a form
992	prescribed by the division, a description of the commodities or
993	contractual services sought for a period of at least 7 business
994	days. The description must include a request that prospective
995	vendors provide information regarding their ability to supply
996	the commodities or contractual services described. If it is
997	determined in writing by the agency, after reviewing any
998	information received from prospective vendors, that the
999	commodities or contractual services are available only from a
1000	single source, the agency shall:
1001	1.  Provide notice, in a form prescribed by the division,
1002	of its intended decision to enter a single-source purchase
1003	contract in the manner specified in s. 120.57(3), if the amount
1004	of the contract does not exceed the threshold amount provided in
1005	s. 287.017 for CATEGORY FOUR.
1006	2.  Request approval from the division department for the
1007	single-source purchase, if the amount of the contract exceeds
1008	the threshold amount provided in s. 287.017 for CATEGORY FOUR.
1009	The agency shall initiate its request for approval in a form
1010	prescribed by the division department, which request may be
1011	electronically transmitted. The failure of the division
1012	department to approve or disapprove the agency's request for
1013	approval within 21 days after receiving such request shall
1014	constitute prior approval of the division department. If the
1015	division department approves the agency's request, the agency
1016	shall provide notice of its intended decision to enter a single-
1017	source contract in the manner specified in s. 120.57(3).
1018	(d)  When it is in the best interest of the state, the
1019	secretary of the department or his or her designee may authorize
1020	the division Support Program to purchase insurance by
1021	negotiation, but such purchase shall be made only under
1022	conditions most favorable to the public interest.
1023	(e)  Prescriptive assistive devices for the purpose of
1024	medical, developmental, or vocational rehabilitation of clients
1025	are excepted from competitive-solicitation requirements and
1026	shall be procured pursuant to an established fee schedule or by
1027	any other method which ensures the best price for the state,
1028	taking into consideration the needs of the client. Prescriptive
1029	assistive devices include, but are not limited to, prosthetics,
1030	orthotics, and wheelchairs. For purchases made pursuant to this
1031	paragraph, state agencies shall annually file with the
1032	department a description of the purchases and methods of
1033	procurement.
1034	(e)(f)  The following contractual services and commodities
1035	are not subject to the competitive-solicitation requirements of
1036	this section:
1037	1.  Artistic services.
1038	2.  Academic program reviews.
1039	3.  Lectures by individuals.
1040	4.  Auditing services.
1041	5.  Legal services, including attorney, paralegal, expert
1042	witness, appraisal, or mediator services.
1043	6.  Health services involving examination, diagnosis,
1044	treatment, prevention, medical consultation, or administration.
1045	7.  Services provided to persons with mental or physical
1046	disabilities by not-for-profit corporations which have obtained
1047	exemptions under the provisions of s. 501(c)(3) of the United
1048	States Internal Revenue Code or when such services are governed
1049	by the provisions of Office of Management and Budget Circular A-
1050	122. However, in acquiring such services, the agency shall
1051	consider the ability of the vendor, past performance,
1052	willingness to meet time requirements, and price.
1053	8.  Medicaid services delivered to an eligible Medicaid
1054	recipient by a health care provider who has not previously
1055	applied for and received a Medicaid provider number from the
1056	Agency for Health Care Administration. However, this exception
1057	shall be valid for a period not to exceed 90 days after the date
1058	of delivery to the Medicaid recipient and shall not be renewed
1059	by the agency.
1060	9.  Family placement services.
1061	10.  Prevention services related to mental health,
1062	including drug abuse prevention programs, child abuse prevention
1063	programs, and shelters for runaways, operated by not-for-profit
1064	corporations. However, in acquiring such services, the agency
1065	shall consider the ability of the vendor, past performance,
1066	willingness to meet time requirements, and price.
1067	11.  Training and education services provided to injured
1068	employees pursuant to s. 440.491(6).
1069	4.12.  Contracts entered into pursuant to s. 337.11.
1070	5.13.  Services or commodities provided by governmental
1071	agencies.
1072	6.14.  Voter education activities of the Department of
1073	State or the supervisors of elections funded by Specific
1074	Appropriation 2871H of the 2004-2005 General Appropriations Act,
1075	either individually or in the aggregate or with their respective
1076	professional associations. This subparagraph expires July 1,
1077	2005.
1078	(f)(g)  Continuing education events or programs that are
1079	offered to the general public and for which fees have been
1080	collected that pay all expenses associated with the event or
1081	program are exempt from requirements for competitive
1082	solicitation.
1083	(6)  If less than two responsive bids, proposals, or
1084	replies for commodity or contractual services purchases are
1085	received, the division, department, or other agency may
1086	negotiate on the best terms and conditions. The division,
1087	department, or other agency shall document the reasons that such
1088	action is in the best interest of the state in lieu of
1089	resoliciting competitive sealed bids, proposals, or replies.
1090	Each agency shall report all such actions to the division
1091	department on a quarterly basis, in a manner and form prescribed
1092	by the division department.
1093	(7)  Upon issuance of any solicitation, an agency shall,
1094	upon request by the division department, forward to the division
1095	department one copy of each solicitation for all commodity and
1096	contractual services purchases in excess of the threshold amount
1097	provided in s. 287.017 for CATEGORY TWO. An agency shall also,
1098	upon request, furnish a copy of all competitive-solicitation
1099	tabulations. The Office of Supplier Diversity may also request
1100	from the agencies any information submitted to the division
1101	department pursuant to this subsection.
1102	(16)  Each agency shall designate at least one employee who
1103	shall serve as a contract administrator responsible for
1104	maintaining a contract file and financial information on all
1105	contractual services contracts and who shall serve as a liaison
1106	with the contract managers and the division department.
1107	(17)  For a contract in excess of the threshold amount
1108	provided in s. 287.017 for CATEGORY FOUR, the agency head shall
1109	appoint:
1110	(a)  At least three persons to evaluate proposals and
1111	replies who collectively have experience and knowledge in the
1112	program areas and service requirements for which commodities or
1113	contractual services are sought.
1114	(b)  At least three persons to conduct negotiations during
1115	a competitive sealed reply procurement who collectively have
1116	experience and knowledge in negotiating contracts, contract
1117	procurement, and the program areas and service requirements for
1118	which commodities or contractual services are sought. When the
1119	contract is in excess of $1 million, at least one of the persons
1120	conducting negotiations shall be a certified negotiator as
1121	established by rule. If the agency does not have an employee who
1122	has the requisite certification, the division shall appoint a
1123	certified negotiator to participate in the negotiations on
1124	behalf of the agency.
1125	(c)  For each division or agency procurement with a total
1126	estimated cost of $5 million and above, and other procurements
1127	as determined by the division, the division shall establish a
1128	source evaluation and negotiation team with appropriate
1129	expertise consisting of individuals from the procurement,
1130	programmatic, legal, and clerical disciplines, and such other
1131	disciplines as needed. Each team shall be chaired by a
1132	programmatic  representative.
1133	(23)(a)  The department, in consultation with the State
1134	Technology Office and the Comptroller, shall develop a program
1135	for on-line procurement of commodities and contractual services.
1136	To enable the state to promote open competition and to leverage
1137	its buying power, agencies shall participate in the on-line
1138	procurement program, and eligible users may participate in the
1139	program. Only vendors prequalified as meeting mandatory
1140	requirements and qualifications criteria shall be permitted to
1141	participate in on-line procurement. The department, in
1142	consultation with the State Technology Office, may contract for
1143	equipment and services necessary to develop and implement on-
1144	line procurement.
1145	(b)  The department, in consultation with the State
1146	Technology Office, shall adopt rules, pursuant to ss. 120.536(1)
1147	and 120.54, to administer the program for on-line procurement.
1148	The rules shall include, but not be limited to:
1149	1.  Determining the requirements and qualification criteria
1150	for prequalifying vendors.
1151	2.  Establishing the procedures for conducting on-line
1152	procurement.
1153	3.  Establishing the criteria for eligible commodities and
1154	contractual services.
1155	4.  Establishing the procedures for providing access to on-
1156	line procurement.
1157	5.  Determining the criteria warranting any exceptions to
1158	participation in the on-line procurement program.
1159	(c)  The department may collect fees for the use of the on-
1160	line procurement systems. The fees may be imposed on an
1161	individual transaction basis or as a fixed percentage of the
1162	cost savings generated. At a minimum, the fees must be set in an
1163	amount sufficient to cover the projected costs of such services,
1164	including administrative and project service costs in accordance
1165	with the policies of the department. For the purposes of
1166	compensating the provider, the department may authorize the
1167	provider to collect and retain a portion of the fees. The
1168	providers may withhold the portion retained from the amount of
1169	fees to be remitted to the department. The department may
1170	negotiate the retainage as a percentage of such fees charged to
1171	users, as a flat amount, or as any other method the department
1172	deems feasible. All fees and surcharges collected under this
1173	paragraph shall be deposited in the Grants and Donation Trust
1174	Fund as provided by law.
1175	(23)(24)(a)  The division State Technology Office shall
1176	establish, in consultation with the department, state strategic
1177	information technology alliances for the acquisition and use of
1178	information technology and related material with prequalified
1179	contractors or partners to provide the state with efficient,
1180	cost-effective, and advanced information technology.
1181	(b)  In consultation with and under contract to the
1182	division State Technology Office, the state strategic
1183	information technology alliances shall design, develop, and
1184	deploy projects providing the information technology needed to
1185	collect, store, and process the state's data and information,
1186	provide connectivity, and integrate and standardize computer
1187	networks and information systems of the state.
1188	(c)  The partners in the state strategic information
1189	technology alliances shall be industry leaders with demonstrated
1190	experience in the public and private sectors.
1191	(d)  The division State Technology Office, in consultation
1192	with the department, shall adopt rules, pursuant to ss.
1193	120.536(1) and 120.54, to administer the state strategic
1194	information technology alliances.
1195	Section 16.  Section 287.0571, Florida Statutes, is created
1196	to read:
1197	287.0571  On-line procurement subsystem; usage by agencies
1198	and other eligible users.--
1199	(1)  In discharging its obligation to provide the
1200	purchasing subsystem of the Florida Financial Management
1201	Information System outlined in ss. 215.90-215.96, the division,
1202	in consultation with the Chief Financial Officer, shall design,
1203	implement, and operate an on-line procurement subsystem. The
1204	division may contract for equipment and services necessary to
1205	develop and implement the subsystem. The division shall adopt
1206	rules pursuant to ss. 120.536(1) and 120.54 to administer the
1207	subsystem.
1208	(2)  To enable the state to promote open competition and to
1209	leverage its buying power, agencies shall use the subsystem. On
1210	terms negotiated with the division, other eligible users may
1211	also use features of the subsystem.
1212	Section 17.  Section 287.05712, Florida Statutes, is
1213	created to read:
1214	287.05712  Vendor registration; performance monitoring;
1215	certain vendors prohibited from participating in
1216	solicitations.--
1217	(1)  The division shall maintain a list of interested
1218	vendors within the on-line procurement subsystem. Vendors shall
1219	be required to register and have the ability to express their
1220	interest in contracting for any category of commodities or
1221	services. Failure to express a particular interest at the time
1222	of initial registration shall not prohibit a registered vendor
1223	from responding to a solicitation for the particular commodity
1224	or service.
1225	(2)  Within the on-line procurement subsystem, the division
1226	shall maintain a statewide contractor performance system in
1227	order to provide uniform monitoring and rating of contractors
1228	across all agencies. The division shall adopt rules pursuant to
1229	ss. 120.536(1) and 120.54 to implement the contractor
1230	performance system.
1231	(3)  The division shall use the on-line procurement
1232	subsystem to enforce the convicted vendor list maintained
1233	pursuant to s. 287.133(3)(d) and the suspended vendor list
1234	maintained pursuant to s. 287.135(1).
1235	Section 18.  Section 287.0572, Florida Statutes, is amended
1236	to read:
1237	287.0572  Present-value methodology.--
1238	(1)  The cost of bids, proposals, or replies for state
1239	contracts that include provisions for unequal payment streams or
1240	unequal time payment periods shall be evaluated using present-
1241	value methodology. Each agency, as defined in s. 287.012(1),
1242	shall perform the evaluation using the present-value discount
1243	rate supplied by the division department. The present-value
1244	discount rate shall be the rate for United States Treasury notes
1245	and bonds published in the Interest Rates: Money and Capital
1246	Markets section of the most recent copy of the Federal Reserve
1247	Bulletin published at the time of issuance of the request for
1248	proposals, the invitation to negotiate, or the invitation to
1249	bid.
1250	(2)  The division department may adopt rules to administer
1251	subsection (1).
1252	Section 19.  Section 287.0578, Florida Statutes, is created
1253	to read:
1254	287.0578  Types of contracts.--Subject to the limitations
1255	of this chapter, any type of contract which will promote the
1256	best interests of the state may be used, such as firm-fixed-
1257	price, cost-reimbursement, and incentive. The use of a cost-
1258	plus-a-percentage-of-cost contract is prohibited.
1259	Section 20.  Subsections (1), (2), and (5) of section
1260	287.058, Florida Statutes, are amended to read:
1261	287.058  Contract document.--
1262	(1)  Every procurement of contractual services in excess of
1263	the threshold amount provided in s. 287.017 for CATEGORY TWO,
1264	except for the providing of health and mental health services or
1265	drugs in the examination, diagnosis, or treatment of sick or
1266	injured state employees or the providing of other benefits as
1267	required by the provisions of chapter 440, shall be evidenced by
1268	a written agreement embodying all provisions and conditions of
1269	the procurement of such services, which provisions and
1270	conditions shall, where applicable, include, but shall not be
1271	limited to:
1272	(a)  A provision that bills for fees or other compensation
1273	for services or expenses be submitted in detail sufficient for a
1274	proper preaudit and postaudit thereof.
1275	(b)  A provision that bills for any travel expenses be
1276	submitted in accordance with s. 112.061. A state agency may
1277	establish rates lower than the maximum provided in s. 112.061.
1278	(c)  A provision allowing unilateral cancellation by the
1279	agency for refusal by the contractor to allow public access to
1280	all documents, papers, letters, or other material made or
1281	received by the contractor in conjunction with the contract,
1282	unless the records are exempt from s. 24(a) of Art. I of the
1283	State Constitution and s. 119.07(1).
1284	(d)  A provision dividing the contract into units of
1285	deliverables, which shall include, but not be limited to,
1286	reports, findings, and drafts, that must be received and
1287	accepted in writing by the contract manager prior to payment.
1288	(e)  A provision specifying the criteria and the final date
1289	by which such criteria must be met for completion of the
1290	contract.
1291	(f)  A provision specifying that the contract may be
1292	renewed for a period that may not exceed 3 years or the term of
1293	the original contract, whichever period is longer, specifying
1294	the renewal price for the contractual service as set forth in
1295	the bid, proposal, or reply, specifying that costs for the
1296	renewal may not be charged, and specifying that renewals shall
1297	be contingent upon satisfactory performance evaluations by the
1298	agency and subject to the availability of funds. Exceptional
1299	purchase contracts pursuant to s. 287.057(5)(a) and (c) may not
1300	be renewed.
1301
1302	In lieu of a written agreement, the division department may
1303	authorize the use of a purchase order for classes of contractual
1304	services, if the provisions of paragraphs (a)-(f) are included
1305	in the purchase order or solicitation. The purchase order must
1306	include, but need not be limited to, an adequate description of
1307	the services, the contract period, and the method of payment. In
1308	lieu of printing the provisions of paragraphs (a)-(f) in the
1309	contract document or purchase order, agencies may incorporate
1310	the requirements of paragraphs (a)-(f) by reference.
1311	(2)  The written agreement shall be signed by the agency
1312	head and the contractor prior to the rendering of any
1313	contractual service the value of which is in excess of the
1314	threshold amount provided in s. 287.017 for CATEGORY TWO, except
1315	in the case of a valid emergency as certified by the agency
1316	head. The certification of an emergency shall be prepared within
1317	30 days after the contractor begins rendering the service and
1318	shall state the particular facts and circumstances which
1319	precluded the execution of the written agreement prior to the
1320	rendering of the service. If the agency fails to have the
1321	contract signed by the agency head and the contractor prior to
1322	rendering the contractual service, and if an emergency does not
1323	exist, the agency head shall, no later than 30 days after the
1324	contractor begins rendering the service, certify the specific
1325	conditions and circumstances to the division department as well
1326	as describe actions taken to prevent recurrence of such
1327	noncompliance. The agency head may delegate the certification
1328	only to other senior management agency personnel. A copy of the
1329	certification shall be furnished to the Chief Financial Officer
1330	with the voucher authorizing payment. The division department
1331	shall report repeated instances of noncompliance by an agency to
1332	the Auditor General. Nothing in this subsection shall be deemed
1333	to authorize additional compensation prohibited by s. 215.425.
1334	The procurement of contractual services shall not be divided so
1335	as to avoid the provisions of this section.
1336	(5)  Unless otherwise provided in the General
1337	Appropriations Act or the substantive bill implementing the
1338	General Appropriations Act, the Chief Financial Officer may
1339	waive the requirements of this section for services which are
1340	included in s. 287.057(5)(e)(f).
1341	Section 21.  Section 287.0731, Florida Statutes, is amended
1342	to read:
1343	287.0731  Team for contract negotiations.--Contingent upon
1344	funding in the General Appropriations Act, the division
1345	department shall establish a team that includes a chief
1346	negotiator to specialize in conducting negotiations for the
1347	procurement of information technology with an invitation to
1348	negotiate.
1349	Section 22.  Section 287.083, Florida Statutes, is amended
1350	to read:
1351	287.083  Purchase of commodities.--
1352	(1)  It shall be the policy of the state for the division
1353	Department of Management Services to consider the life-cycle
1354	cost of commodities purchased by the state, when applicable and
1355	feasible as determined by the division department.
1356	(2)  Definitions.--For the purpose of this section:
1357	(a)  "Major energy-consuming product" means any article so
1358	designated by the division department.
1359	(b)  "Energy-efficiency standard" means a performance
1360	standard which prescribes the relationship of the energy use of
1361	a product to its useful output of services.
1362	(3)(a)  The division department is authorized to establish
1363	by rule energy-efficiency standards for major energy-consuming
1364	products.
1365	(b)  When federal energy-efficiency standards exist, the
1366	division department shall, when feasible, adopt standards at
1367	least as stringent as the federal standards.
1368	(4)  When energy-efficiency standards are established,
1369	life-cycle costs shall be used by the division department in
1370	contracting for major energy-consuming products.
1371	(5)  In determining the life-cycle cost, the division
1372	department may consider the acquisition cost of the product; the
1373	energy consumption and the projected cost of energy over the
1374	useful life of the product; and the anticipated trade-in,
1375	resale, or salvage value of the product.
1376	Section 23.  Section 287.0834, Florida Statutes, is amended
1377	to read:
1378	287.0834  Motor vehicles; energy-saving equipment and
1379	additives.--Each motor vehicle purchased by the state and each
1380	motor vehicle leased by the state for a period in excess of 1
1381	year shall use devices, equipment, and additives that have been
1382	certified as energy-saving and approved for use by the United
1383	States Environmental Protection Agency and that have been
1384	determined to be cost-effective by the division Department of
1385	Management Services.
1386	Section 24.  Section 287.131, Florida Statutes, is amended
1387	to read:
1388	287.131  Assistance of Department of Financial
1389	Services.--The Department of Financial Services shall provide
1390	the division Department of Management Services with technical
1391	assistance in all matters pertaining to the purchase of
1392	insurance for all agencies, and shall make surveys of the
1393	insurance needs of the state and all departments thereof,
1394	including the benefits, if any, of self-insurance.
1395	Section 25.  Paragraph (c) of subsection (1) and subsection
1396	(3) of section 287.134, Florida Statutes, are amended to read:
1397	287.134  Discrimination; denial or revocation of the right
1398	to transact business with public entities.--
1399	(1)  As used in this section:
1400	(c)  "Discriminatory vendor list" means the list required
1401	to be kept by the division department pursuant to paragraph
1402	(3)(d).
1403	(3)(a)  All invitations to bid, requests for proposals, and
1404	invitations to negotiate, as defined by s. 287.012, and any
1405	written contract document of the state must contain a statement
1406	informing entities of the provisions of paragraph (2)(a).
1407	(b)  An entity must notify the division department within
1408	30 days after a final determination of discrimination. Any
1409	public entity which receives information that an entity has
1410	discriminated shall transmit that information to the division
1411	department in writing within 10 days. Before entering into any
1412	contract with the state, all entities shall disclose to the
1413	division department whether they have been found liable, in a
1414	state circuit court or federal court, for violation of any state
1415	or federal law prohibiting discrimination based on race, gender,
1416	national origin, disability, or religion.
1417	(c)  The division department shall maintain a list of the
1418	names and addresses of any entity which has been disqualified
1419	from the public contracting and purchasing process under this
1420	section. The division department shall publish an initial list
1421	on January 1, 2001, and shall publish an updated version of the
1422	list quarterly thereafter. The revised quarterly lists shall be
1423	electronically posted. Notwithstanding this paragraph, an entity
1424	or affiliate disqualified from the public contracting and
1425	purchasing process pursuant to this section shall be
1426	disqualified as of the date the final order is entered.
1427	(d)1.  Upon receiving reasonable information from any
1428	source that an entity has discriminated, the division department
1429	shall investigate the information and determine whether good
1430	cause exists to place that entity or an affiliate of that entity
1431	on the discriminatory vendor list. If good cause exists, the
1432	division department shall notify the entity or affiliate in
1433	writing of its intent to place the name of that entity or
1434	affiliate on the discriminatory vendor list, and of the entity's
1435	or affiliate's right to a hearing, the procedure that must be
1436	followed, and the applicable time requirements. If the entity or
1437	affiliate does not request a hearing, the division department
1438	shall enter a final order placing the name of the entity or
1439	affiliate on the discriminatory vendor list. No entity or
1440	affiliate may be placed on the discriminatory vendor list
1441	without receiving an individual notice of intent from the
1442	division department.
1443	2.  Within 21 days after receipt of the notice of intent,
1444	the entity or affiliate may file a petition for a formal hearing
1445	pursuant to ss. 120.569 and 120.57(1) to determine whether it is
1446	in the public interest for that entity or affiliate to be placed
1447	on the discriminatory vendor list. An entity or affiliate may
1448	not file a petition for an informal hearing under s. 120.57(2).
1449	The procedures of chapter 120 shall apply to any formal hearing
1450	under this section except where they are in conflict with the
1451	following provisions:
1452	a.  The petition shall be filed with the division
1453	department. The division department shall be a party to the
1454	proceeding for all purposes.
1455	b.  Within 5 days after the filing of the petition, the
1456	division department shall notify the Division of Administrative
1457	Hearings of the request for a formal hearing. The director of
1458	the Division of Administrative Hearings shall, within 5 days
1459	after receipt of notice from the division department, assign an
1460	administrative law judge to preside over the proceeding. The
1461	administrative law judge, upon request by a party, may
1462	consolidate related proceedings.
1463	c.  The administrative law judge shall conduct the formal
1464	hearing within 30 days after being assigned, unless otherwise
1465	stipulated by the parties.
1466	d.  Within 30 days after the formal hearing or receipt of
1467	the hearing transcript, whichever is later, the administrative
1468	law judge shall enter a final order, which shall consist of
1469	findings of fact, conclusions of law, interpretation of agency
1470	rules, and any other information required by law or rule to be
1471	contained in the final order. Such final order shall place or
1472	not place the entity or affiliate on the discriminatory vendor
1473	list.
1474	e.  The final order of the administrative law judge shall
1475	be final agency action for purposes of s. 120.68.
1476	f.  At any time after the filing of the petition, informal
1477	disposition may be made pursuant to s. 120.57(4). In that event,
1478	the administrative law judge shall enter a final order adopting
1479	the stipulation, agreed settlement, or consent order.
1480	3.  It shall not be in the public interest to place an
1481	entity or affiliate on the discriminatory vendor list if:
1482	a.  Discrimination did not occur;
1483	b.  The discrimination was committed by an employee of the
1484	entity or affiliate other than senior management; or
1485	c.  The member of senior management responsible for the
1486	discrimination is no longer an employee of the entity or
1487	affiliate.
1488	4.  In determining whether it is in the public interest to
1489	place an entity or affiliate on the discriminatory vendor list,
1490	the administrative law judge shall consider the following
1491	factors:
1492	a.  The nature and details of the discrimination.
1493	b.  The degree of culpability of the entity or affiliate
1494	proposed to be placed on the discriminatory vendor list.
1495	c.  The prompt or voluntary payment of any damages or
1496	penalty as a result of the discrimination.
1497	d.  Prior or future self-policing by the entity or
1498	affiliate to prevent discrimination.
1499	e.  Compliance by the entity or affiliate with the
1500	notification provisions of paragraph (b).
1501	f.  The needs of public entities for additional competition
1502	in the procurement of goods and services in their respective
1503	markets.
1504	g.  Mitigation based upon any demonstration of good
1505	citizenship by the entity or affiliate.
1506	5.  In any proceeding under this section, the division
1507	department shall be required to prove by clear and convincing
1508	evidence that it is in the public interest for the entity to
1509	which the division department has given notice under this
1510	section to be placed on the discriminatory vendor list. Proof of
1511	discrimination by the entity or a person or entity which is an
1512	affiliate of such entity shall constitute a prima facie case
1513	that it is in the public interest for the entity or affiliate to
1514	which the division department has given notice to be put on the
1515	discriminatory vendor list. Status as an affiliate must be
1516	proven by clear and convincing evidence.
1517	6.  Any entity or affiliate which has been notified by the
1518	division department of the division's department's intent to
1519	place the entity's or affiliate's name on the discriminatory
1520	vendor list may offer evidence on any relevant issue. Upon
1521	establishment of a prima facie case that it is in the public
1522	interest for the entity or affiliate to which the division
1523	department has given notice to be put on the discriminatory
1524	vendor list, that entity or affiliate may prove by a
1525	preponderance of the evidence that it would not be in the public
1526	interest to put such entity on the discriminatory vendor list,
1527	based upon evidence addressing the factors in subparagraphs 3.
1528	and 4.
1529	(e)1.  An entity on the discriminatory vendor list may
1530	petition for removal from the list no sooner than 6 months from
1531	the date a final order is entered disqualifying that entity from
1532	the public purchasing and contracting process pursuant to this
1533	section. The petition shall be filed with the division
1534	department and the proceeding shall be conducted pursuant to the
1535	procedures and requirements of this subsection.
1536	2.  An entity may be removed from the discriminatory vendor
1537	list subject to such terms and conditions as may be prescribed
1538	by the administrative law judge upon a determination that
1539	removal is in the public interest. In determining whether
1540	removal would be in the public interest, the administrative law
1541	judge shall give consideration to any relevant factors,
1542	including, but not limited to, the factors identified in
1543	subparagraphs 3. and 4.
1544	3.  If a petition for removal is denied, the entity or
1545	affiliate may not petition for another hearing on removal for a
1546	period of 9 months after the date of denial. The division
1547	department may petition for removal prior to the expiration of
1548	such period if, in the division's department's discretion, the
1549	division department determines that removal would be in the
1550	public interest.
1551	Section 26.  Section 287.1345, Florida Statutes, is amended
1552	to read:
1553	287.1345  Fees for use of on-line procurement subsystem;
1554	Surcharge on users of state term contracts; deposit of proceeds
1555	collected; consequences of failure to pay fees.--
1556	(1)  The division may collect fees for the use of the
1557	on-line procurement subsystem. The fees may be imposed on an
1558	individual transaction basis or as a fixed percentage of the
1559	cost savings generated. At a minimum, the fees must be set in an
1560	amount sufficient to cover the projected costs of such services,
1561	including administrative and project service costs in accordance
1562	with the policies of the division. To compensate a private
1563	provider of services related to the subsystem The department may
1564	impose a surcharge upon users of state term contracts in order
1565	to fund the costs, including overhead, of its procurement
1566	function. The department may provide for the state term contract
1567	vendor to collect the surcharge or directly collect the fee from
1568	the public agency or eligible user involved. For the purpose of
1569	compensating vendors for expenses incurred in collecting such
1570	fees, the division department may authorize a vendor to collect
1571	and retain a portion of the fees. The provider vendor may
1572	withhold the portion retained from the amount of fees to be
1573	remitted to the division department. The division department may
1574	negotiate the retainage as a percentage of such fees charged to
1575	users, as a flat amount, or as any other method the division
1576	department deems feasible.
1577	(2)  Contractors Vendors shall maintain accurate sales
1578	summaries for purchases made from state term contracts by
1579	eligible users, and for other purchases made by agencies, and
1580	shall provide the summaries to the division in the form and
1581	frequency specified by rule department on a quarterly basis.
1582	(3)  Any contract remedies relating to the collection of
1583	such fees from users through contractors vendors are
1584	enforceable, including, but not limited to, liquidated damages,
1585	late fees, and the costs of collection, including attorney's
1586	fees. The fees collected pursuant to this section shall be
1587	deposited into the Grants and Donations Trust Fund of the
1588	department and are subject to appropriation as provided by law.
1589	The Executive Office of the Governor may exempt transactions
1590	from the payment of the fees surcharge if payment of such fees
1591	surcharge would cause the state, a political subdivision, or
1592	unit of local government to lose federal funds or in other cases
1593	where such exemption is in the public interest. The fees
1594	collected pursuant to this section and interest income on such
1595	fees shall not be deemed to be income of a revenue nature for
1596	purposes of chapter 215.
1597	Section 27.  Section 287.135, Florida Statutes, is created
1598	to read:
1599	287.135  Suspended vendor list; suspension of right to
1600	transact business with public entities.--
1601	(1)  The division shall maintain a suspended vendor list.
1602	The list shall include any vendor that:
1603	(a)  Fails to fulfill any of its duties specified in a
1604	contract with any governmental entity, including the obligation
1605	to pay fees required by s. 287.1345;
1606	(b)  Fails to maintain a minimum acceptable rating on the
1607	contractor performance system maintained by the division
1608	pursuant to s. 287.042(2); or
1609	(c)  Has otherwise been found by the division to be a
1610	nonresponsible source.
1611	(2)  The division may reinstate a suspended vendor when the
1612	division is satisfied that further instances of default will not
1613	occur.
1614	(3)(a)  A vendor on the suspended vendor list may not:
1615	1.  Submit a response to a solicitation by a public entity
1616	to provide any goods or services;
1617	2.  Submit a response to a solicitation by a public entity
1618	for the construction or repair of a public building or public
1619	work;
1620	3.  Contract for leases of real property to a public
1621	entity;
1622	4.  Be awarded or perform work as a contractor, supplier,
1623	subcontractor, or consultant under a contract with any public
1624	entity; or
1625	5.  Transact business with any public entity for a period
1626	of 36 months following the date of being placed on the suspended
1627	vendor list.
1628	(b)  A public entity may not accept a response to a
1629	solicitation from, award any contract to, or transact any
1630	business with any vendor on the suspended vendor list for a
1631	period of 36 months following the date that vendor was placed on
1632	the suspended vendor list unless that vendor has subsequently
1633	petitioned for removal and been removed from the list by the
1634	division.
1635	(4)  All competitive solicitations and any contract
1636	document described by s. 287.058 shall contain a statement
1637	informing persons of the provisions of paragraph (3)(a).
1638	(5)  For purposes of this section, the following
1639	definitions apply:
1640	(a)  "Public entity" means this state, any of its
1641	departments or agencies, or any political subdivision.
1642	(b)  "Vendor" means any person, including affiliates, doing
1643	business with the state or wishing to do business with the
1644	state.
1645	1.  For purposes of this paragraph, the term "person" means
1646	any natural person or any entity organized under the laws of any
1647	state or of the United States with the legal power to enter into
1648	a binding contract and which bids or applies to bid on contracts
1649	let by a public entity, or which otherwise transacts or applies
1650	to transact business with a public entity. The term "person"
1651	also includes those officers, directors, executives, partners,
1652	shareholders, employees, members, and agents who are active in
1653	management of an entity.
1654	2.  For purposes of this paragraph, the term "affiliate"
1655	means:
1656	a.  A predecessor or successor of the person on the
1657	suspended vendor list.
1658	b.  Any entity under the control of any natural person
1659	active in the management of the entity on the suspended vendor
1660	list.
1661	c.  Those officers, directors, executives, partners,
1662	shareholders, employees, members, and agents who are active in
1663	the management of an affiliate. The ownership by one person of
1664	shares constituting a controlling interest in another person, or
1665	a pooling of equipment or income among persons when not for fair
1666	market value under an arms length agreement, shall be prima
1667	facie evidence that one person controls another person.
1668	d.  A person who knowingly enters into a joint venture with
1669	a person who has been placed on the suspended vendor list during
1670	the preceding 36 months.
1671	(6)  The division shall adopt rules to implement contract
1672	default procedures to be followed by agencies which shall
1673	include, at a minimum:
1674	(a)  Reasonable notice to the vendor.
1675	(b)  An opportunity for the vendor to cure the default
1676	within a reasonable time.
1677	(c)  If no cure is forthcoming or if the cure is
1678	inadequate, the agency's authorization to formally find the
1679	vendor in default.
1680	(d)  If the contractor is formally found in default,
1681	authorization for the agency to reprocure and contractor's
1682	liability for reprocurement costs.
1683	(e)  Authorization for the agency to find the contractor
1684	nonresponsible during future solicitations until such time as
1685	the agency is reimbursed for previous reprocurement costs and is
1686	satisfied that further instances of default will not occur.
1687	(f)  Authorization for the division to place the contractor
1688	on the suspended vendor list maintained pursuant to this
1689	section.
1690	(g)  A provision that the vendor shall be suspended as of
1691	the date the final order is entered.
1692	(h)  The contractor's administrative remedies and
1693	provisions for early removal from the suspended vendor list.
1694	Section 28.  Subsections (3), (5), and (7) of section
1695	282.005, Florida Statutes, are amended to read:
1696	282.005  Legislative findings and intent.--The Legislature
1697	finds that:
1698	(3)  An office must be created to provide support and
1699	guidance to enhance the state's use and management of
1700	information technology and to design, procure, and deploy, on
1701	behalf of the state, information technology.
1702	(5)  The State Technology Office has primary responsibility
1703	and accountability for the planning, budgeting, acquisition,
1704	development, implementation, use, and management of information
1705	technology within the state. The State Technology Office shall
1706	use the state's information technology in the best interest of
1707	the state as a whole and shall contribute to and make use of
1708	shared data and related resources whenever appropriate. Each
1709	agency head has primary responsibility and accountability for
1710	setting agency priorities, identifying business needs, and
1711	determining agency services and programs to be developed as
1712	provided by law. The State Technology Office, through service
1713	level agreements with each agency, shall provide the information
1714	technology needed for the agency to accomplish its mission.
1715	(7)  The state, through the State Technology Office, shall
1716	provide, by whatever means is most cost-effective and efficient,
1717	the information technology, enterprise resource planning and
1718	management, and enterprise resource management infrastructure
1719	needed to collect, store, and process the state's data and
1720	information, provide connectivity, and facilitate the exchange
1721	of data and information among both public and private parties.
1722	Section 29.  Subsection (2) of section 946.515, Florida
1723	Statutes, is amended to read:
1724	946.515  Use of goods and services produced in correctional
1725	work programs.--
1726	(2)  No similar product or service of comparable price and
1727	quality found necessary for use by any state agency may be
1728	purchased from any source other than the corporation if the
1729	corporation certifies that the product is manufactured by, or
1730	the service is provided by, inmates and the product or service
1731	meets the comparable performance specifications and comparable
1732	price and quality requirements as specified under s.
1733	287.042(2)(c)(1)(f) or as determined by an individual agency as
1734	provided in this section. The purchasing authority of any such
1735	state agency may make reasonable determinations of need, price,
1736	and quality with reference to products or services available
1737	from the corporation. In the event of a dispute between the
1738	corporation and any purchasing authority based upon price or
1739	quality under this section or s. 287.042(2)(c)(1)(f), either
1740	party may request a hearing with the Department of Management
1741	Services and if not resolved, either party may request a
1742	proceeding pursuant to ss. 120.569 and 120.57, which shall be
1743	referred to the Division of Administrative Hearings within 60
1744	days after such request, to resolve any dispute under this
1745	section. No party is entitled to any appeal pursuant to s.
1746	120.68.
1747	Section 30.  In order to promote the attraction, retention,
1748	and professional development of skilled procurement
1749	professionals, the Division of Procurement of the Department of
1750	Management Services shall submit a report to the President of
1751	the Senate and the Speaker of the House of Representative by
1752	February 1, 2006, describing the market for procurement
1753	professionals and their availability, benchmarking the skills
1754	required, professional development opportunities and
1755	certification, and salaries paid by the state compared to other
1756	public and private sector employers and providing
1757	recommendations for enhancing the state's ability to attract and
1758	retain skilled procurement professionals.
1759	Section 31.  Beginning in fiscal year 2005-2006, 21 full-
1760	time equivalent positions are authorized and $4 million is
1761	appropriated from General Revenue to fund the costs of the
1762	increased responsibilities of the Division of Procurement in the
1763	Department of Management Services as provided in this act.
1764	Section 32.  This act shall take effect July 1, 2005.

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