Senate Bill sb0578

    Florida Senate - 2005                                   SB 578

    By Senator Wise





    5-245-05

  1                      A bill to be entitled

  2         An act relating to performance contracting;

  3         providing a short title; providing a

  4         definition; authorizing state agencies to enter

  5         into performance contracts; establishing

  6         requirements for performance contracts;

  7         providing duties of the Department of

  8         Management Services regarding such contracts;

  9         requiring the monitoring of vendor performance;

10         exempting certain contracts from performance

11         contracts; providing an effective date.

12  

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

14  

15         Section 1.  This act may be cited as the "Performance

16  Contract Management act."

17         Section 2.  As used in this act, the term "performance

18  contract" means a contract that focuses on the outputs,

19  quality, or outcomes of service and that ties at least a

20  portion of the contractor's payment to attaining established

21  performance standards.

22         Section 3.  (1)  Subject to the submission of a

23  business case and approval of the Executive Office of the

24  Governor and the Legislative Budget Commission, a state agency

25  may enter into a performance contract for a contracted

26  service.

27         (2)  To ensure the consistent, effective application of

28  the use of performance contracts, each contract must contain:

29         (a)  Performance measures and standards developed by

30  the agency specifically for that contract. The measures shall

31  

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    Florida Senate - 2005                                   SB 578
    5-245-05




 1  be used by the agency to evaluate the services provided to the

 2  agency and the outcomes resulting from those services;

 3         (b)  An accountability section that requires the

 4  contractor to report regularly on its achievement of

 5  performance measures and standards specified in the contact

 6  and that allows the agency to withhold payment until

 7  successful completion of all or part of the contract and the

 8  achievement of established performance standards;

 9         (c)  Monitoring requirements that specify how the

10  agency will evaluate the contractor's performance, including

11  progress reports, site visits, inspections, and reviews of

12  performance data. The agency must use one or more monitoring

13  systems to ensure that the results, objectives, and

14  obligations of the contract are met. Monitoring by the agency

15  shall focus on the achievement of desired results or

16  objectives and not on the methods used by the contractor to

17  achieve them;

18         (d)  Methods and mechanisms to resolve any situation in

19  which the agency's monitoring assessment determines

20  noncompliance, including termination of the contract; and

21         (e)  Provisions that provide access to all contractor

22  records needed for a properly authorized audit, examination,

23  or investigation.

24         (3)  Before an agency may enter into a performance

25  contract, the agency inspector general must certify that the

26  proposed performance measures and standards, data sources, and

27  data collection methods provide a valid basis for assessing

28  the contractor's performance.

29         (4)  The agency shall annually certify whether the

30  contractor is complying with the contract terms. If the agency

31  determines that the contractor has not complied with the

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    Florida Senate - 2005                                   SB 578
    5-245-05




 1  contract terms, including performance standards and measurable

 2  outcomes, the contract may be terminated.

 3         (5)  The Department of Management Services shall:

 4         (a)  Assist agencies in developing performance

 5  contracts, including providing training courses;

 6         (b)  Develop policies and procedures to manage

 7  performance contracts; and

 8         (c)  Prepare agency guidelines for performance

 9  contracting, including model terms and conditions that include

10  performance measures and standards, and accountability and

11  monitoring provisions.

12         (6)  Audits and examinations conducted under chapters

13  11 and 17, Florida Statutes, shall focus on assessing the

14  extent to which desired performance is achieved.

15         (7)  This act does not apply to contracts funded by

16  appropriations classified as grants and aids or as special

17  categories.

18         Section 4.  This act shall take effect July 1, 2005.

19  

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21                          SENATE SUMMARY

22    Authorizes state agencies to use performance contracts to
      evaluate services provided to state agencies. Provides
23    guidelines and requirements for such contracts. Provides
      duties of the Department of Management Services regarding
24    the use of such contracts.

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