HB 1835

CS

CHAMBER ACTION

1	The State Administration Appropriations Committee recommends the
2	following:
3
4	Council/Committee Substitute
5	Remove the entire bill and insert:
6
7	A bill to be entitled
8	An act relating to procurement of contractual services by
9	an agency; amending s. 20.22, F.S.; placing the Center for
10	Efficient Government in the Department of Management
11	Services; creating s. 287.0571, F.S.; providing that
12	procurements of specified commodities and services are not
13	subject to the act; creating s. 287.0573, F.S.; providing
14	definitions; creating s. 287.0574, F.S.; providing
15	criteria for the procurement of contractual services by an
16	agency; creating s. 287.0575, F.S.; creating the
17	Commission on Efficient Government within the Department
18	of Management Services; providing for purpose, membership,
19	and organization of the commission; providing duties and
20	responsibilities of the commission; creating the Center
21	for Efficient Government; providing purpose and
22	organization of the center; providing duties and
23	responsibilities of the center; requiring the center to
24	create a centralized gate process for reviewing,
25	evaluating, and approving agency procurements; providing
26	that the commission, the center, and activities related to
27	the implementation of the centralized gate process are not
28	subject to the rulemaking requirements of ch. 120, F.S.;
29	requiring state agencies to submit specified information,
30	documents, and other materials required under policies of
31	the commission or the center; creating s. 287.0576, F.S.;
32	specifying procurements which must be reviewed and
33	evaluated under the centralized gate process; providing
34	minimum requirements for the centralized gate process;
35	providing for specified determinations by the commission
36	at each gate; providing procedure with respect to a
37	recommendation by the commission of denial of a
38	procurement required by law; providing that agencies under
39	the individual control of the Attorney General, Chief
40	Financial Officer, or Commissioner of Agriculture are
41	subject to the act, with specified exceptions; providing
42	authority of the agency head with respect to procurements
43	by such agencies; establishing the gates within the
44	centralized gate process; requiring agencies to submit
45	specified documents for commission review; providing for
46	nullification of executed contracts for procurement under
47	specified circumstances; providing for legislative review
48	of an agency's appropriations upon a determination that
49	the agency has violated the provisions of the act;
50	creating s. 287.0577, F.S.; providing requirements for
51	procurement of certain contractual services; requiring an
52	agency to develop a business case which describes and
53	analyzes a contractual services procurement under
54	consideration; providing required components of a business
55	case; defining "cost" and "savings"; providing
56	requirements with respect to the solicitation for a
57	contractual services procurement; providing contract
58	requirements for a contractual services procurement;
59	requiring the submission of specified annual reports;
60	creating s. 216.1817, F.S.; permitting budgetary changes
61	for a contractual services procurement only under
62	specified conditions; requiring the placement of full-time
63	equivalent positions in reserve under certain conditions;
64	providing for the reestablishment of full-time equivalent
65	positions upon termination of a contract and reversion of
66	functions and responsibilities to the agency; providing
67	for future termination of the Center for Efficient
68	Government and the Commission on Efficient Government;
69	providing legislative intent with respect to the
70	performance of review functions and assistance to agencies
71	for procurements of contractual services by state agencies
72	after a specified date; providing that positions
73	authorized under the act shall remain with the Department
74	of Management Services after a specified date; repealing
75	s. 14.203, F.S., which creates the State Council on
76	Competitive Government and provides duties and authority
77	of the council; providing an appropriation; providing
78	full-time equivalent positions; amending s. 119.0721,
79	F.S.; removing a cross reference; clarifying the meaning
80	of "commercial activity" to conform to the removal of the
81	reference; providing an effective date.
82
83	WHEREAS, the private sector can often perform services with
84	greater efficiency and effectiveness at a lower cost than the
85	state, and
86	WHEREAS, the state has long been a leader in innovative
87	practices, in part because of its partnerships with the private
88	sector, and
89	WHEREAS, the state desires to reap the benefits of lower
90	costs, high quality, and innovation by working closely with the
91	private sector, and
92	WHEREAS, the state still maintains responsibility for
93	ensuring that the services performed by the private sector on
94	behalf of the state are of high quality, provided cost-
95	effectively, and appropriate for private provision, and
96	WHEREAS, leading businesses have developed best practices
97	to determine what to obtain from the market and how to ensure
98	that such services are provided at the desired quality and at
99	the appropriate cost, and
100	WHEREAS, the executive branch has made great progress in
101	promoting the use of such best practices, and the citizens of
102	the state could benefit by the increased adoption across state
103	government of such best practices, NOW, THEREFORE,
104
105	Be It Enacted by the Legislature of the State of Florida:
106
107	Section 1.  Paragraph (i) is added to subsection (2) of
108	section 20.22, Florida Statutes, to read:
109	20.22  Department of Management Services.--There is created
110	a Department of Management Services.
111	(2)  The following divisions and programs within the
112	Department of Management Services are established:
113	(i)  Center for Efficient Government.
114	Section 2.  Section 287.0571, Florida Statutes, is created
115	to read:
116	287.0571  Applicability of ss. 287.0571-287.0577.--
117	Procurements of commodities and contractual services listed in
118	s. 287.057(5)(e), (f), and (g) shall not be subject to ss.
119	287.0571-287.0577.
120	Section 3.  Section 287.0573, Florida Statutes, is created
121	to read:
122	287.0573  Definitions.--For the purposes of ss. 287.0571-
123	287.0571-287.0577:
124	(1)  "Center" means the Center for Efficient Government
125	established under s. 287.0575(2).
126	(2)  "Centralized gate process" means the system of review
127	phases established under s. 287.0576 for a proposed procurement
128	of contractual services, the conclusion of each phase being a
129	"gate" or decision point at which the commission determines
130	whether the procurement under consideration may proceed to the
131	next phase.
132	(3)  "Commission" means the Commission on Efficient
133	Government established under s. 287.0575(1).
134	(4)  "Inherently governmental function or responsibility"
135	means a function or responsibility which entails the exercise of
136	sovereign power and is therefore so intimately related to the
137	public interest that it mandates performance by a public officer
138	or a public employee upon whom the public officer has delegated
139	authority for the performance of such acts. Inherently
140	governmental functions or responsibilities include those
141	activities which require either the exercise of discretion in
142	applying governmental authority or the use of value judgment in
143	making decisions for the government. Inherently governmental
144	functions or responsibilities are categorized as follows:
145	(a)  The act of governing or discretionary exercise of
146	governmental authority which includes, but is not limited to,
147	such activities as criminal investigations, prosecutions, and
148	other judicial functions; management of government programs
149	requiring value judgments; selection of program priorities;
150	regulation of natural resources; regulation of industry and
151	commerce; determination of agency policy, including, but not
152	limited to, determining the content and application of
153	regulations; binding the state by contract, policy, regulation,
154	authorization, order, or otherwise; commissioning, appointing,
155	directing, selecting, or controlling state officers or
156	employees; approval of position descriptions and performance
157	standards for state employees; exertion of ultimate control over
158	the acquisition, use, or disposition of the real, personal,
159	tangible, or intangible property of the state, including the
160	collection, control, or disbursement of state funds; awarding,
161	administering, and terminating contracts; determining whether
162	contract costs are reasonable, allocable, and allowable;
163	approval of contractual documents; approval of state licensing
164	actions and inspections; determination of budget policy,
165	guidance, and strategy.
166	(b)  Monetary transactions and entitlements which include,
167	but are not limited to, tax collection and revenue
168	disbursements; control of state funds; and the administration of
169	public trusts.
170
171	Inherently governmental functions or responsibilities do not
172	include gathering information for or providing advice, opinions,
173	recommendations, or ideas to state officials. They do not
174	include functions that are primarily ministerial and internal in
175	nature, such as building security, mail operations, operation of
176	cafeterias, housekeeping, facilities operations and maintenance,
177	warehouse operations, motor vehicle fleet management operations,
178	or other routine electrical or mechanical services.
179	Section 4.  Section 287.0574, Florida Statutes, is created
180	to read:
181	287.0574  Criteria for procurement of contractual
182	services.--An agency may procure a contractual service only if:
183	(1)  The procurement does not involve the performance by a
184	contractor of an inherently governmental function or
185	responsibility; and
186	(2)  Upon full implementation of a procurement in which the
187	performance of functions or responsibilities are shifted from
188	state employees to a contractor, the implementation results in
189	reasonable cost savings while maintaining at least the same
190	quality of service or reasonably increases the quality of
191	service while not exceeding the same level of cost.
192	Section 5.  Section 287.0575, Florida Statutes, is created
193	to read:
194	287.0575  Commission on Efficient Government; membership;
195	duties; Center for Efficient Government; duties.--
196	(1)  The Commission on Efficient Government is created
197	within the Department of Management Services to oversee the
198	Center for Efficient Government and carry out the
199	responsibilities specified in this section.
200	(a)  The commission shall consist of seven members
201	appointed by the Governor:
202	1.  Three members shall be heads of executive branch
203	agencies.
204	2.  Four members shall be from the private sector and have
205	significant relevant business experience but shall not be
206	employed by or have a business relationship with any entity that
207	seeks to contract with or has a contract with the state during
208	the member's term on the commission. If feasible, the four
209	private-sector members shall collectively have experience with
210	procurement, successfully increasing operational efficiency, and
211	implementing complex projects.
212	(b)  By August 1, 2005, the Governor shall appoint two
213	private-sector members and two agency heads for terms of 3 years
214	and two private-sector members and one agency head for terms of
215	4 years. Thereafter, each member shall serve for a term of 4
216	years. The private-sector members shall serve without
217	compensation but shall be entitled to reimbursement for per diem
218	and travel expenses pursuant to s. 112.061.
219	(c)  No member of the commission who is the head of an
220	executive branch agency shall be disqualified from participating
221	in commission review of a procurement because his or her agency
222	is involved in the procurement.
223	(d)  The members of the commission may not delegate their
224	membership to a designee.
225	(e)  A quorum shall consist of at least four members,
226	including at least one member who is an agency head.
227	(f)  Any vacancy on the commission shall be filled in the
228	same manner as the original appointment, and any member
229	appointed to fill a vacancy occurring for a reason other than
230	the expiration of a term shall serve only for the unexpired term
231	of the member's predecessor.
232	(g)  At the first meeting of the commission after August 1,
233	2005, the members of the commission shall elect, by majority
234	vote of those in attendance, a member to serve as chair of the
235	commission. No later than September 1 of each succeeding year,
236	the commission shall elect a new chair.
237	(h)  The commission shall:
238	1.  Oversee the Center for Efficient Government.
239	2.  Review and approve the centralized gate process created
240	by the center under subsection (2).
241	3.  Review, evaluate, and grant approval of, withhold
242	approval of, or deny approval of a proposed procurement at the
243	gates established within the centralized gate process. The
244	commission shall determine the criteria regarding which
245	procurements must pass through the centralized gate process.
246	Such procurements shall include, at a minimum, those subject to
247	the requirements of s. 287.0576.
248	4.  Approve standards, processes, templates, and guidelines
249	for use by agencies during the procurement process which shall,
250	at a minimum, include the requirements under s. 287.0577 for
251	procurements of contractual services.
252	5.  Implement a plan for providing information and
253	documentation to the Legislature and the Governor on behalf of
254	agencies and in compliance with the provisions of this chapter.
255	The system shall include, at a minimum, providing copies of
256	documents to be reviewed by the commission to the President of
257	the Senate, the Speaker of the House of Representatives, the
258	Governor, and the chairs of the relevant appropriations and
259	substantive legislative committees at least 14 days prior to the
260	meeting of the commission at which the proposed procurement will
261	be discussed.
262	6.  Review the performance of procurements which have
263	advanced through the full centralized gate process.
264	7.  Beginning October 15, 2005, submit to the Executive
265	Office of the Governor, the President of the Senate, the Speaker
266	of the House of Representatives, and the chairs of the
267	legislative appropriations committees a quarterly report
268	describing the activities of the center and the actions taken by
269	the commission during the previous quarter.
270	(2)  The Center for Efficient Government is created in the
271	department to establish and promote best business practices so
272	that the delivery of services to citizens of the state may be
273	provided in the most effective and cost-efficient manner
274	possible. The secretary of the department shall appoint a
275	director of the center. The center shall have the following
276	duties and responsibilities:
277	(a)  Create a centralized gate process for reviewing,
278	evaluating, and approving agency procurements which, at a
279	minimum, shall include the requirements contained in s. 287.0576
280	for contractual services procurements.
281	(b)  Provide information, training, and technical
282	assistance to agencies on the use of the standards, processes,
283	templates, and guidelines developed for use by agencies during
284	the procurement process.
285	(c)  Provide support and assistance to the commission,
286	including, but not limited to, reviewing and validating agency
287	business cases, developing standards, processes, templates, and
288	guidelines for use by agencies during the procurement process
289	and providing information and documentation as requested or
290	required by law.
291	(d)  Assist agencies directly in the procurement process as
292	needed to ensure a high-quality procurement, including, but not
293	limited to, developing and updating business cases, drafting
294	solicitation and contract documents, participating in contract
295	negotiations, identifying performance measures, and advising
296	agencies on performance measurement, contract management, and
297	change management. To carry out this responsibility, the
298	department shall employ an adequate number of highly skilled,
299	credentialed staff who collectively possess significant
300	expertise and experience in these areas.
301	(e)  Collect data and information from agencies on an
302	ongoing basis with regard to the status and results of
303	procurements which have advanced completely through the
304	centralized gate process and recommend incorporation of any
305	lessons learned from such projects into center standards,
306	processes, templates, and guidelines, as appropriate, and
307	identify and disseminate to agencies information regarding best
308	practices in procurement, particularly contractual services
309	procurements.
310	(f)  Develop and implement, in consultation with the Agency
311	for Workforce Innovation, guidelines for assisting employees
312	whose jobs are eliminated as a result of procurements.
313	(3)  The center and commission and the activities conducted
314	by the department pursuant to this act to implement the
315	centralized gate process and provide assistance and information
316	shall not be subject to the rulemaking requirements of chapter
317	120.
318	(4)  Agencies shall submit to the center all information,
319	documents, or other materials required by center or commission
320	policy or this chapter.
321	Section 6.  Section 287.0576, Florida Statutes, is created
322	to read:
323	287.0576  Review and analysis of proposed procurement of
324	contractual services; centralized gate process.--
325	(1)  At a minimum, the following procurements shall be
326	required to undergo review and analysis through the centralized
327	gate process established by the Center for Efficient Government:
328	(a)  Contractual services procurements which have a total
329	cost of $10 million or more annually.
330	(b)  New contractual services procurements that will
331	require adjustments to the agency's budget in accordance with
332	chapter 216. Amendments to existing contracts are excluded.
333	(c)  Contractual services procurements that do not involve
334	an outlay of state funds totaling $10 million or more annually
335	because of the provision of services by the contractor at a rate
336	significantly below market rate, the significant investment of
337	other resources by the agency, or other reason, but in which the
338	total value of the services performed by the agency and
339	contractor under the contract is estimated to total $10 million
340	or more annually. Examples of such procurements include, but are
341	not limited to, free, no-cost, or codevelopment contracts.
342	(d)  Contractual services procurements for which the sum of
343	gross revenues or shared savings to be generated for the state
344	and contractor over the term of the contract plus the sum of any
345	payments to the contractor by the agency over the term of the
346	contract, if any, totals $10 million or more annually.
347	(e)  Contractual services procurements which the
348	Legislature has directed to advance through the centralized gate
349	process.
350	(2)  Extensions and renewals of procurements in paragraphs
351	(1)(a)-(e) shall be required to undergo review and analysis
352	through the centralized gate process established by the Center
353	for Efficient Government though, notwithstanding any law to the
354	contrary, such procurements shall only be required to pass
355	through such gates as the commission determines are appropriate.
356
357	For purposes of determining whether a procurement meets the
358	requirements of this subsection, multiple contractual services
359	procurements for substantially similar or related functions or
360	responsibilities occurring in a coordinated fashion or in close
361	time proximity to one another shall be considered a single
362	contractual services procurement for purposes of meeting the
363	thresholds for this section.
364	(3)  If the volume of projects required to pass through the
365	centralized gate process pursuant to subsection (1) exceeds the
366	capacity of the commission and center to process them, the
367	commission shall prioritize the projects for commission review
368	and center assistance based upon criteria it shall determine,
369	which shall, at a minimum, include consideration of the
370	estimated contract cost, impact on the public, impact on state
371	employees, complexity, and potential risk of the procurement.
372	For projects required to pass through the centralized gate
373	process that the commission does not prioritize for review, the
374	agency shall instead conduct its own review based upon the
375	standards, processes, templates, and guidelines of the
376	commission and shall provide information to the Legislature at
377	least 14 days prior to agency approval at each gate in
378	accordance with s. 287.0575(1)(h)5. The commission shall report
379	to the President of the Senate, the Speaker of the House of
380	Representatives, and the Governor if it is required to
381	prioritize projects pursuant to this subsection.
382	(4)  The centralized gate process shall require, at a
383	minimum, review of the procurement by the commission at the
384	conclusion of important stages, or gates, in the procurement
385	process, as specified in subsection (5), for those procurements
386	subject to review under this act. At each gate, the commission
387	shall determine by unanimous vote whether:
388	(a)  The agency has sufficiently met the requirements of
389	the current phase such that the procurement may advance through
390	the gate, at which point the commission shall grant approval and
391	the procurement shall advance to the next phase;
392	(b)  Additional work must be completed in order to satisfy
393	the requirements of the center for the phase under consideration
394	before the procurement may advance through the gate to the next
395	phase, at which point the commission shall withhold approval and
396	the procurement shall not advance; or
397	(c)  The procurement is not a good business decision and
398	should not be made, at which point the commission shall deny the
399	procurement and the procurement shall be removed from
400	consideration.
401
402	Notwithstanding the provisions of this section, the commission
403	may not deny procurements which are required by law. If the
404	commission believes that a denial would be appropriate for such
405	a procurement, the commission shall withhold approval and
406	transmit to the President of the Senate, the Speaker of the
407	House of Representatives, and the Governor the reasons why the
408	procurement should not be completed and any recommendation for
409	legislative action. If the President of the Senate or the
410	Speaker of the House of Representatives has not responded in 14
411	days, the commission shall proceed at its discretion.
412
413	Notwithstanding any law to the contrary, agencies under the
414	individual control of the Attorney General, the Chief Financial
415	Officer, or the Commissioner of Agriculture are subject to the
416	provisions of ss. 287.0571-287.0577, except that the commission
417	shall not grant, withhold, or deny approval of a procurement by
418	such agency but instead may only provide recommendations to the
419	agency, and the approval of the commission shall not be required
420	for the agency to take any action in regard to the procurement.
421	The respective agency head shall have sole authority to grant,
422	withhold, or deny approval of such procurement.
423	(5)  The gates comprising the centralized gate process
424	shall be established and designated as provided in paragraphs
425	(a)-(e) and shall require, at a minimum, submission by the
426	agency and review by the commission of the following documents:
427	(a)  The proposal identification gate, which shall include
428	the business case.
429	(b)  The procurement preparation gate, which shall include
430	the updated business case and the solicitation documents prior
431	to the issuance of such documents. An agency may not release
432	solicitation documents without the commission's approval at this
433	gate.
434	(c)  The contract development gate, which shall include the
435	updated business case and the proposed unexecuted contract. An
436	agency may not execute the contract without the commission's
437	approval at this gate.
438	(d)  The transition management gate, which shall include
439	the updated business case and, for a procurement of contractual
440	services, an analysis of the agency's and contractor's readiness
441	for the contractor to perform the proposed responsibility or
442	function.  An agency may not transition to contractor
443	performance without the commission's approval at this gate.
444	(e)  The post-implementation gate, which shall include the
445	updated business case and a report on the adequacy of contractor
446	performance.
447	(6)  If the commission withholds approval of a proposed
448	procurement, the agency may request that the review of the
449	procurement be repeated at a future commission meeting.
450	(7)  Any executed contract for a procurement required to
451	pass through the centralized gate process pursuant to this
452	section shall be null and void if:
453	(a)  The procurement does not pass through the centralized
454	gate process; or
455	(b)  The agency executes a contract without the
456	commission's approval at the contract development gate.
457
458	This subsection does not apply to procurements which the
459	commission does not prioritize for review pursuant to subsection
460	(3).
461	(8)  Unless otherwise exempted from the provisions of this
462	act, any agency that violates the provisions of this act shall
463	be subject to a review by the Auditor General of actions taken
464	by the agency.  The Auditor General shall provide a report of
465	findings to the Speaker of the House, the President of the
466	Senate, the chairs of the legislative appropriations committees,
467	and the Executive Office of the Governor.  If the Auditor
468	General finds that the agency has violated the recommendations
469	of the commission or the provisions of this act, the Legislature
470	shall conduct an immediate review of the agency's appropriations
471	to determine the appropriate actions to be taken for placing the
472	agency's funds in mandatory reserve.
473	Section 7.  Section 287.0577, Florida Statutes, is created
474	to read:
475	287.0577  Requirements for procurement of certain
476	contractual services.--In addition to the other applicable
477	requirements of this chapter, an agency shall comply with the
478	requirements of subsections (1)-(4) for a procurement of
479	contractual services subject to review under s. 287.0576:
480	(1)  BUSINESS CASE.--The agency shall develop a business
481	case which describes and analyzes the procurement. The business
482	case is not subject to challenge or protest pursuant to ch. 120.
483	The business case shall include, but not be limited to, the
484	following information:
485	(a)1.  A detailed description of the function or
486	responsibility for which the procurement is proposed, including
487	the reasons why the function or responsibility is not inherently
488	governmental;
489	2.  If the agency is currently performing the function or
490	responsibility, a description and analysis of the agency's
491	current performance, including, but not limited to, baseline
492	costs and performance metrics;
493	3.  The goals desired to be achieved through the
494	procurement and the rationale for such goals; and
495	4.  A citation of the existing or proposed legal authority
496	for contracting for the function or responsibility.
497	(b)1.  A description of available options for achieving the
498	goals. If state employees are currently performing the function
499	or responsibility, an option involving maintaining state
500	provision of the function or responsibility shall be included.
501	2.  For options involving procurement of a contractual
502	service, a description of the current market for such service.
503	3.  An analysis of the advantages and disadvantages of each
504	option, including, at a minimum, potential performance
505	improvements and risks.
506	(c)  A cost-benefit analysis documenting the direct and
507	indirect specific baseline costs, savings, and qualitative and
508	quantitative benefits involved in or resulting from the
509	implementation of the recommended option or options. Such
510	analysis shall specify the schedule that, at a minimum, must be
511	adhered to in order to achieve the estimated savings. All
512	elements of cost shall be clearly identified in the cost-benefit
513	analysis, described in the business case, and supported by
514	applicable records and reports. The agency head shall certify
515	that all projected costs, savings, and benefits are valid and
516	achievable. "Cost" means the reasonable, relevant, and
517	verifiable cost which may include, but not be limited to,
518	elements such as personnel costs, materials and supplies,
519	services, equipment, capital depreciation costs, rent,
520	maintenance and repairs, utilities, insurance, personnel travel,
521	overhead, and interim and final payments. The appropriate
522	elements shall depend on the nature of the specific initiative.
523	"Savings" means the difference between the direct and indirect
524	actual annual baseline costs compared to the projected annual
525	cost for the contracted functions or responsibilities in any
526	succeeding state fiscal year during the term of the contract.
527	(d)  A description of variance among agency policies and
528	processes and a plan to standardize, consolidate, or revise
529	current policies and processes, if any, to reduce the
530	customization of any proposed solution that would otherwise be
531	required.
532	(e)  A description of the specific performance standards
533	that must, at a minimum, be met to ensure adequate performance.
534	(f)  A statement of the potential impact on state revenues
535	and expenditures for the period beginning with the execution of
536	a contract and extending for 5 years after full implementation
537	of the contract or for the term of the contract, whichever is
538	longer. The statement shall specifically describe the effect on
539	general revenue, trust funds, general revenue service charges,
540	and interest on trust funds together with the potential direct
541	or indirect effect on federal funding and cost allocations.
542	(g)  The projected timeframe for key events, from the
543	beginning of the procurement process through the expiration of a
544	contract.
545	(h)  A plan to ensure compliance with public records law
546	which must include components that:
547	1.  Provide public access to public records at a cost that
548	does not exceed that provided in chapter 119.
549	2.  Ensure the confidentiality of records that are exempt
550	or confidential under law.
551	3.  Meet all legal requirements for record retention
552	provided by law.
553	4.  Require transfer to the state, at no cost, of all
554	public records in possession of the contractor upon termination
555	of the contract.
556	(i)  A specific and feasible contingency plan addressing
557	contractor nonperformance and a description of the tasks
558	involved in and costs required for its implementation.
559	(j)  An agency transition plan for addressing changes in
560	organizational structure, affected business processes, employee
561	transition issues, and communication with affected stakeholders,
562	such as agency clients and the public. The transition plan shall
563	contain a reemployment and retraining assistance plan for
564	employees who are not retained by the agency or employed by the
565	contractor.
566	(k)  A listing of any assets proposed for surplus.
567	(l)  A plan for ensuring access by persons with
568	disabilities in compliance with applicable state and federal
569	law.
570
571	If a contractual services procurement would require integration
572	with or would in any way impact other state information
573	technology systems, the agency shall submit the feasibility
574	study documentation as required by the legislative budget
575	request instructions established pursuant to s. 216.023.
576	(2)  SOLICITATION REQUIREMENTS.--The solicitation for a
577	contractual services procurement shall include, at a minimum:
578	(a)  A detailed description of the function or
579	responsibility under consideration for contracting and, if the
580	function or responsibility is currently being performed by an
581	agency, a description and analysis of the agency's current
582	performance.
583	(b)  Requirements that are achievable, unambiguous,
584	measurable, meaningful, and complete.
585	(c)  The criteria that after contract execution will be
586	used to assess contractor performance and the minimum acceptable
587	contractor performance levels.
588	(3)  CONTRACT REQUIREMENTS.--At a minimum, the written
589	contract shall include:
590	(a)  Specific terms and conditions providing a clearly
591	defined scope of work that is directly related to the goals and
592	objectives of the procurement. The terms must include:
593	1.  A detailed scope of work that clearly specifies each
594	service and deliverable to be provided.
595	2.  All service-level agreements describing all necessary
596	performance requirements and responsibilities of the state and
597	the contractor.
598	3.  Associated costs and savings, specific payment terms,
599	including incentive, disincentive, and penalty provisions,
600	criteria governing payment, and a clear and specific project
601	schedule.
602	(b)  Specific identification of all required performance
603	measures and levels that shall include, but not be limited to:
604	1.  Acceptance criteria for each deliverable and service to
605	be provided to the state under the terms of the contract, which
606	document to the greatest extent possible the required
607	performance level. Acceptance criteria must be detailed, clear,
608	and unambiguous and shall be used to measure deliverables and
609	services under the contract. Payment shall be tied to successful
610	production of deliverables.
611	2.  A method for monitoring and reporting progress in
612	achieving specified performance outcomes and associated
613	performance incentives.
614	3.  The sanctions or penalties that shall be assessed for
615	nonperformance by the contractor.
616	(c)  A description of deliverables, activities, or events
617	that are directly related to the scope of work which must be
618	quantifiable, measurable, and verifiable.
619	(d)  A management plan for organizational change that
620	clearly identifies any changes in organizational structure,
621	including staffing and personnel changes in all affected
622	agencies. Such plan must specify a feasible mechanism for
623	continuing the operation of the service if the contractor fails
624	to comply with the performance standards in the contract.
625	(e)  A requirement that the contractor maintain adequate
626	accounting records that comply with all applicable federal and
627	state laws and generally accepted accounting principles.
628	(f)  A requirement authorizing state access to and audit of
629	all records related to the contract or any responsibilities or
630	functions under the contract for state audit and legislative
631	oversight purposes and a requirement for service organization
632	audits in accordance with professional auditing standards, if
633	appropriate.
634	(g)  A requirement that ownership of any intellectual
635	property critical for the assumption of the contracted function
636	or responsibility by the state or another contractor shall
637	revert to the state in the event the contractor ceases to
638	provide the contracted function or responsibility.
639	(h)  A requirement describing the timing and substance of
640	all status or progress reports that are to be provided under the
641	contract. All such reports must comply with any relevant state
642	and federal standards for planning, implementation, operations,
643	and oversight.
644	(i)  A requirement that the contractor comply with the
645	public records law. The contractor shall:
646	1.  Keep and maintain the public records that an agency
647	would ordinarily and necessarily be required to keep and
648	maintain in the performance of the function or responsibility.
649	2.  Provide public access to such public records on the
650	same terms and conditions required of an agency at a cost that
651	does not exceed that provided in chapter 119.
652	3.  Ensure the confidentiality of records which are exempt
653	or confidential under law.
654	4.  Meet all legal requirements for record retention.
655	5.  Transfer to the state, at no cost to the state, all
656	public records in the possession of the contractor upon
657	termination of the contract and destroy at a minimum any
658	duplicate public records which are exempt and confidential. All
659	records that are stored electronically must be provided to the
660	state in a format compatible with state information technology
661	systems.
662	(j)  A requirement that the contractor shall interview and
663	consider for employment with the contractor each impacted state
664	employee who is interested in such employment.
665	(k)  Provisions requiring that venue for any action
666	regarding the contract shall be in Leon County and that the
667	contract shall be interpreted according to the laws of this
668	state.
669	(4)  REPORTS.--During the term of the contract, the agency
670	shall annually submit with its legislative budget request a
671	project status report for each procurement which has passed
672	through at least the first three gates of the centralized gate
673	process, describing the progress made to date, actual completion
674	dates in comparison to planned completion dates, actual costs
675	incurred in comparison to projected costs incurred, current
676	issues requiring resolution, planned project milestones,
677	deliverables, and expenditures for the next reporting period and
678	any other information relating to the contractual services that
679	may be requested.
680	Section 8.  Section 216.1817, Florida Statutes, is created
681	to read:
682	216.1817  Limitation on budgetary changes for contractual
683	services procurement; placement of positions in reserve; re-
684	establishment of positions.--
685	(1)  Any budgetary changes for a contractual services
686	procurement that are inconsistent with the agency's approved
687	budget may not be made to existing programs unless such changes
688	are recommended to the Legislative Budget Commission by the
689	Governor, and the Legislative Budget Commission expressly
690	approves such program changes.
691	(2)  If a procurement of contractual services involves the
692	performance of functions or responsibilities that are being
693	shifted from state employees to a contractor, the agency shall
694	identify within the business case prepared pursuant to s.
695	287.0577 all resources which are affected, including full-time
696	equivalent positions. All full-time equivalent positions
697	identified in the business case shall be placed in reserve by
698	the Executive Office of the Governor until the end of the second
699	year of the contract. Notwithstanding the provisions of s.
700	216.262, the Executive Office of the Governor shall request
701	authority from the Legislative Budget Commission to reestablish
702	full-time equivalent positions above the number fixed by the
703	Legislature when a contract is terminated and the performance of
704	the functions or responsibilities must be returned to the
705	agency.
706	Section 9.  The Center for Efficient Government and the
707	Commission on Efficient Government shall terminate on July 1,
708	2010, unless reenacted by the Legislature prior to that date. It
709	is the intent of the Legislature that, beginning July 1, 2010,
710	the various state agencies shall perform the review functions
711	required under this act for procurements of contractual services
712	under their jurisdiction. It is also the intent of the
713	Legislature that beginning July 1, 2010, the positions
714	authorized by this act shall remain with the Department of
715	Management Services, which shall continue providing technical
716	assistance as required in this act.
717	Section 10.  Section 14.203, Florida Statutes, is repealed.
718	Section 11.  There is hereby appropriated $1,023,554
719	recurring budget authority to the Department of Management
720	Services from the General Revenue Fund, and 9 full-time
721	equivalent positions are authorized, to carry out the activities
722	of the Center for Efficient Government and the Commission on
723	Efficient Government as provided in this act.
724	Section 12.  Section 287.0572, Florida Statutes, is
725	renumbered as section 287.0579, Florida Statutes:
726	287.0579 287.0572  Present-value methodology.--
727	(1)  The cost of bids, proposals, or replies for state
728	contracts that include provisions for unequal payment streams or
729	unequal time payment periods shall be evaluated using present-
730	value methodology. Each agency, as defined in s. 287.012(1),
731	shall perform the evaluation using the present-value discount
732	rate supplied by the department. The present-value discount rate
733	shall be the rate for United States Treasury notes and bonds
734	published in the Interest Rates: Money and Capital Markets
735	section of the most recent copy of the Federal Reserve Bulletin
736	published at the time of issuance of the request for proposals,
737	the invitation to negotiate, or the invitation to bid.
738	(2)  The department may adopt rules to administer
739	subsection (1).
740	Section 13.  Subsection (3) of section 119.0721, Florida
741	Statutes, is amended to read:
742	119.0721  Social security number exemption.--
743	(3)  An agency shall not deny a commercial entity engaged
744	in the performance of a commercial activity, which for purposes
745	of this subsection means an activity that provides a product or
746	service that is available from a private source, as defined in
747	s. 14.203 or its agents, employees, or contractors access to
748	social security numbers, provided the social security numbers
749	will be used only in the normal course of business for
750	legitimate business purposes, and provided the commercial entity
751	makes a written request for social security numbers, verified as
752	provided in s. 92.525, legibly signed by an authorized officer,
753	employee, or agent of the commercial entity. The verified
754	written request must contain the commercial entity's name,
755	business mailing and location addresses, business telephone
756	number, and a statement of the specific purposes for which it
757	needs the social security numbers and how the social security
758	numbers will be used in the normal course of business for
759	legitimate business purposes. The aggregate of these requests
760	shall serve as the basis for the agency report required in
761	subsection (7). An agency may request any other information as
762	may be reasonably necessary to verify the identity of the entity
763	requesting the social security numbers and the specific purposes
764	for which such numbers will be used; however, an agency has no
765	duty to inquire beyond the information contained in the verified
766	written request. A legitimate business purpose includes
767	verification of the accuracy of personal information received by
768	a commercial entity in the normal course of its business; use in
769	a civil, criminal, or administrative proceeding; use for
770	insurance purposes; use in law enforcement and investigation of
771	crimes; use in identifying and preventing fraud; use in
772	matching, verifying, or retrieving information; and use in
773	research activities. A legitimate business purpose does not
774	include the display or bulk sale of social security numbers to
775	the general public or the distribution of such numbers to any
776	customer that is not identifiable by the distributor.
777	Section 14.  This act shall take effect July 1, 2005.

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