| 1 | A bill to be entitled |
| 2 | An act relating to public construction projects; amending |
| 3 | s. 255.20, F.S.; increasing the threshold amount for which |
| 4 | certain public projects must be competitively awarded; |
| 5 | revising exceptions to the requirement that certain public |
| 6 | projects be competitively awarded; defining the terms |
| 7 | "repair" and "maintenance"; requiring local governments to |
| 8 | provide notice for certain public projects; providing |
| 9 | notice requirements; extending the notice period for |
| 10 | specified public meetings; requiring a local government to |
| 11 | support a decision to perform a project with its own |
| 12 | employees and to make a factual finding that the project |
| 13 | cost will be the same or less than the lowest bid; |
| 14 | providing additional exceptions for projects related to |
| 15 | public-use airports, certain ports, and certain public |
| 16 | transit or transportation systems; authorizing |
| 17 | governmental entities to consider certain contractors |
| 18 | ineligible to bid; revising the index and year on which |
| 19 | the required adjustment of the threshold amounts is based; |
| 20 | revising provisions for certain contractors and vendors to |
| 21 | challenge a local government's actions; providing an |
| 22 | effective date. |
| 23 |
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| 24 | Be It Enacted by the Legislature of the State of Florida: |
| 25 |
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| 26 | Section 1. Section 255.20, Florida Statutes, is amended to |
| 27 | read: |
| 28 | 255.20 Local bids and contracts for public construction |
| 29 | works; specification of state-produced lumber.-- |
| 30 | (1) A county, municipality, special district as defined in |
| 31 | chapter 189, or other political subdivision of the state seeking |
| 32 | to construct or improve a public building, structure, or other |
| 33 | public construction works must competitively award to an |
| 34 | appropriately licensed contractor each project that is estimated |
| 35 | in accordance with generally accepted cost-accounting principles |
| 36 | to cost have total construction project costs of more than |
| 37 | $300,000 $200,000. For electrical work, the local government |
| 38 | must competitively award to an appropriately licensed contractor |
| 39 | each project that is estimated in accordance with generally |
| 40 | accepted cost-accounting principles to have a cost of more than |
| 41 | $75,000 $50,000. As used in this section, the term |
| 42 | "competitively award" means to award contracts based on the |
| 43 | submission of sealed bids, proposals submitted in response to a |
| 44 | request for proposal, proposals submitted in response to a |
| 45 | request for qualifications, or proposals submitted for |
| 46 | competitive negotiation. This subsection expressly allows |
| 47 | contracts for construction management services, design/build |
| 48 | contracts, continuation contracts based on unit prices, and any |
| 49 | other contract arrangement with a private sector contractor |
| 50 | permitted by any applicable municipal or county ordinance, by |
| 51 | district resolution, or by state law. For purposes of this |
| 52 | section, cost includes construction costs include the cost of |
| 53 | all labor, except inmate labor, and include the cost of |
| 54 | equipment and materials to be used in the construction of the |
| 55 | project. Subject to the provisions of subsection (3), the |
| 56 | county, municipality, special district, or other political |
| 57 | subdivision may establish, by municipal or county ordinance or |
| 58 | special district resolution, procedures for conducting the |
| 59 | bidding process. |
| 60 | (a) Notwithstanding any other law to the contrary, a |
| 61 | governmental entity a county, municipality, special district as |
| 62 | defined in chapter 189, or other political subdivision of the |
| 63 | state seeking to construct or improve bridges, roads, streets, |
| 64 | highways, or railroads, and services incidental thereto, at a |
| 65 | cost costs in excess of $250,000 may require that persons |
| 66 | interested in performing work under contract first be certified |
| 67 | or qualified to perform such work. A Any contractor may be |
| 68 | considered ineligible to bid by the governmental entity if the |
| 69 | contractor is behind by 10 percent or more on completing an |
| 70 | approved progress schedule for the governmental entity by 10 |
| 71 | percent or more at the time of advertising advertisement of the |
| 72 | work. A prequalified Any contractor prequalified and considered |
| 73 | eligible by the Department of Transportation to bid to perform |
| 74 | the type of work described under the contract is shall be |
| 75 | presumed to be qualified to perform the work described. The |
| 76 | governmental entity may provide an appeal process to overcome |
| 77 | that presumption with de novo review based on the record below |
| 78 | to the circuit court. |
| 79 | (b) For With respect to contractors who are not |
| 80 | prequalified by with the Department of Transportation, the |
| 81 | governmental entity shall publish prequalification criteria and |
| 82 | procedures prior to advertisement or notice of solicitation. |
| 83 | Such publications must shall include notice of a public hearing |
| 84 | for comment on such criteria and procedures prior to adoption. |
| 85 | The procedures must shall provide for an appeal process within |
| 86 | the authority for making objections to the prequalification |
| 87 | process with de novo review based on the record below to the |
| 88 | circuit court within 30 days. |
| 89 | (c) The provisions of this subsection do not apply: |
| 90 | 1. If When the project is undertaken to replace, |
| 91 | reconstruct, or repair an existing public building, structure, |
| 92 | or other public construction works facility damaged or destroyed |
| 93 | by a sudden unexpected turn of events, such as an act of God, |
| 94 | riot, fire, flood, accident, or other urgent circumstances, and |
| 95 | such damage or destruction creates: |
| 96 | a. An immediate danger to the public health or safety; |
| 97 | b. Other loss to public or private property which requires |
| 98 | emergency government action; or |
| 99 | c. An interruption of an essential governmental service. |
| 100 | 2. If When, after notice by publication in accordance with |
| 101 | the applicable ordinance or resolution, the governmental entity |
| 102 | does not receive any responsive bids or proposals responses. |
| 103 | 3. To construction, remodeling, repair, or improvement to |
| 104 | a public electric or gas utility system if when such work on the |
| 105 | public utility system is performed by personnel of the system. |
| 106 | 4. To construction, remodeling, repair, or improvement by |
| 107 | a utility commission whose major contracts are to construct and |
| 108 | operate a public electric utility system. |
| 109 | 5. If When the project is undertaken as repair or |
| 110 | maintenance of an existing public facility. For the purposes of |
| 111 | this paragraph, the term "repair" means a corrective action to |
| 112 | restore an existing public facility to a safe and functional |
| 113 | condition and the term "maintenance" means a preventive or |
| 114 | corrective action to maintain an existing public facility in an |
| 115 | operational state or to preserve the facility from failure or |
| 116 | decline. Repair or maintenance includes activities that are |
| 117 | necessarily incidental to repairing or maintaining the facility. |
| 118 | Repair or maintenance does not include the construction of any |
| 119 | new building, structure, or other public construction works or |
| 120 | any substantial addition, extension, or upgrade to an existing |
| 121 | public facility. Such additions, extensions, or upgrades shall |
| 122 | be considered substantial if the estimated cost of the |
| 123 | additions, extensions, or upgrades included as part of the |
| 124 | repair or maintenance project exceeds the threshold amount in |
| 125 | subsection (1) and exceeds 20 percent of the estimated total |
| 126 | cost of the repair or maintenance project using generally |
| 127 | accepted cost-accounting principles that fully account for all |
| 128 | costs associated with performing and completing the work, |
| 129 | including employee compensation and benefits, equipment cost and |
| 130 | maintenance, insurance costs, and materials. An addition, |
| 131 | extension, or upgrade shall not be considered substantial if it |
| 132 | is undertaken pursuant to the conditions specified in |
| 133 | subparagraph 1. Repair and maintenance projects and any related |
| 134 | additions, extensions, or upgrades may not be divided into |
| 135 | multiple projects for the purpose of evading the requirements of |
| 136 | this subparagraph. |
| 137 | 6. If When the project is undertaken exclusively as part |
| 138 | of a public educational program. |
| 139 | 7. If When the funding source of the project will be |
| 140 | diminished or lost because the time required to competitively |
| 141 | award the project after the funds become available exceeds the |
| 142 | time within which the funding source must be spent. |
| 143 | 8. If When the local government has competitively awarded |
| 144 | a project to a private sector contractor and the contractor has |
| 145 | abandoned the project before completion or the local government |
| 146 | has terminated the contract. |
| 147 | 9. If When the governing board of the local government |
| 148 | complies with all of the requirements of this subparagraph, |
| 149 | after public notice, conducts a public meeting under s. 286.011 |
| 150 | after public notice, and finds by a majority vote of the |
| 151 | governing board that it is in the public's best interest to |
| 152 | perform the project using its own services, employees, and |
| 153 | equipment. The public notice must be published at least 21 14 |
| 154 | days before prior to the date of the public meeting at which the |
| 155 | governing board takes final action to apply this subparagraph. |
| 156 | The notice must identify the project, the components and scope |
| 157 | of the work, and the estimated cost of the project using |
| 158 | generally accepted cost-accounting principles that fully account |
| 159 | for all costs associated with performing and completing the |
| 160 | work, including employee compensation and benefits, equipment |
| 161 | cost and maintenance, insurance costs, and materials. The notice |
| 162 | must specify that the purpose for the public meeting is to |
| 163 | consider whether it is in the public's best interest to perform |
| 164 | the project using the local government's own services, |
| 165 | employees, and equipment. Upon publication of the public notice |
| 166 | and for 21 days thereafter, the local government shall make |
| 167 | available for public inspection, during normal business hours |
| 168 | and at a location specified in the public notice, a detailed |
| 169 | itemization of each component of the estimated cost of the |
| 170 | project and documentation explaining the methodology used to |
| 171 | arrive at the estimated cost. At the public meeting, any |
| 172 | qualified contractor or vendor who could have been awarded the |
| 173 | project had the project been competitively bid shall be provided |
| 174 | with a reasonable opportunity to present evidence to the |
| 175 | governing board regarding the project and the accuracy of the |
| 176 | local government's estimated cost of the project. In deciding |
| 177 | whether it is in the public's best interest for the local |
| 178 | government to perform a project using its own services, |
| 179 | employees, and equipment, the governing board must may consider |
| 180 | the estimated cost of the project, and the accuracy of the |
| 181 | estimated cost in light of any other information that may be |
| 182 | presented at the public meeting and whether the project requires |
| 183 | an increase in the number of government employees, or an |
| 184 | increase in capital expenditures for public facilities, |
| 185 | equipment, or other capital assets. The local government may |
| 186 | further consider, the impact on local economic development, the |
| 187 | impact on small and minority business owners, the impact on |
| 188 | state and local tax revenues, whether the private sector |
| 189 | contractors provide health insurance and other benefits |
| 190 | equivalent to those provided by the local government, and any |
| 191 | other factor relevant to what is in the public's best interest. |
| 192 | 10. If When the governing board of the local government |
| 193 | determines upon consideration of specific substantive criteria |
| 194 | and administrative procedures that it is in the best interest of |
| 195 | the local government to award the project to an appropriately |
| 196 | licensed private sector contractor pursuant according to |
| 197 | administrative procedures established by and expressly set forth |
| 198 | in a charter, ordinance, or resolution of the local government |
| 199 | adopted before prior to July 1, 1994. The criteria and |
| 200 | procedures must be set out in the charter, ordinance, or |
| 201 | resolution and must be applied uniformly by the local government |
| 202 | to avoid awarding a award of any project in an arbitrary or |
| 203 | capricious manner. This exception applies only if shall apply |
| 204 | when all of the following occur: |
| 205 | a. When The governing board of the local government, after |
| 206 | public notice, conducts a public meeting under s. 286.011 and |
| 207 | finds by a two-thirds vote of the governing board that it is in |
| 208 | the public's best interest to award the project according to the |
| 209 | criteria and procedures established by charter, ordinance, or |
| 210 | resolution. The public notice must be published at least 14 days |
| 211 | before prior to the date of the public meeting at which the |
| 212 | governing board takes final action to apply this subparagraph. |
| 213 | The notice must identify the project, the estimated cost of the |
| 214 | project, and specify that the purpose for the public meeting is |
| 215 | to consider whether it is in the public's best interest to award |
| 216 | the project using the criteria and procedures permitted by the |
| 217 | preexisting charter, ordinance, or resolution. |
| 218 | b. In the event The project is to be awarded by any method |
| 219 | other than a competitive selection process, and the governing |
| 220 | board finds must find evidence that: |
| 221 | (I) There is one appropriately licensed contractor who is |
| 222 | uniquely qualified to undertake the project because that |
| 223 | contractor is currently under contract to perform work that is |
| 224 | affiliated with the project; or |
| 225 | (II) The time to competitively award the project will |
| 226 | jeopardize the funding for the project, or will materially |
| 227 | increase the cost of the project, or will create an undue |
| 228 | hardship on the public health, safety, or welfare. |
| 229 | c. In the event The project is to be awarded by any method |
| 230 | other than a competitive selection process, and the published |
| 231 | notice must clearly specifies specify the ordinance or |
| 232 | resolution by which the private sector contractor will be |
| 233 | selected and the criteria to be considered. |
| 234 | d. In the event The project is to be awarded by a method |
| 235 | other than a competitive selection process, and the architect or |
| 236 | engineer of record has provided a written recommendation that |
| 237 | the project be awarded to the private sector contractor without |
| 238 | competitive selection,; and the consideration by, and the |
| 239 | justification of, the government body are documented, in |
| 240 | writing, in the project file and are presented to the governing |
| 241 | board prior to the approval required in this paragraph. |
| 242 | 11. To projects subject to chapter 336. |
| 243 | (d)1. If the project: |
| 244 | 1. Is to be awarded based on price, the contract must be |
| 245 | awarded to the lowest qualified and responsive bidder in |
| 246 | accordance with the applicable county or municipal ordinance or |
| 247 | district resolution and in accordance with the applicable |
| 248 | contract documents. The county, municipality, or special |
| 249 | district may reserve the right to reject all bids and to rebid |
| 250 | the project, or elect not to proceed with the project. This |
| 251 | subsection is not intended to restrict the rights of any local |
| 252 | government to reject the low bid of a nonqualified or |
| 253 | nonresponsive bidder and to award the contract to any other |
| 254 | qualified and responsive bidder in accordance with the standards |
| 255 | and procedures of any applicable county or municipal ordinance |
| 256 | or any resolution of a special district. |
| 257 | 2. If the project Uses a request for proposal or a request |
| 258 | for qualifications, the request must be publicly advertised and |
| 259 | the contract must be awarded in accordance with the applicable |
| 260 | local ordinances. |
| 261 | 3. If the project Is subject to competitive negotiations, |
| 262 | the contract must be awarded in accordance with s. 287.055. |
| 263 | (e) If a construction project greater than $300,000 |
| 264 | $200,000, or $75,000 $50,000 for electrical work, is started |
| 265 | after October 1, 1999, and is to be performed by a local |
| 266 | government using its own employees in a county or municipality |
| 267 | that issues registered contractor licenses, and the project |
| 268 | would require a licensed contractor licensed under chapter 489 |
| 269 | if performed by a private sector contractor, the local |
| 270 | government must use a person appropriately registered or |
| 271 | certified under chapter 489 to supervise the work. |
| 272 | (f) If a construction project greater than $300,000 |
| 273 | $200,000, or $75,000 $50,000 for electrical work, is started |
| 274 | after October 1, 1999, and is to be performed by a local |
| 275 | government using its own employees in a county that does not |
| 276 | issue registered contractor licenses, and the project would |
| 277 | require a licensed contractor licensed under chapter 489 if |
| 278 | performed by a private sector contractor, the local government |
| 279 | must use a person appropriately registered or certified under |
| 280 | chapter 489 or a person appropriately licensed under chapter 471 |
| 281 | to supervise the work. |
| 282 | (g) Projects performed by a local government using its own |
| 283 | services and employees must be inspected in the same manner as |
| 284 | inspections required for work performed by private sector |
| 285 | contractors. |
| 286 | (h) A construction project provided for in this subsection |
| 287 | may not be divided into more than one project for the purpose of |
| 288 | evading this subsection. |
| 289 | (i) This subsection does not preempt the requirements of |
| 290 | any small-business or disadvantaged-business enterprise program |
| 291 | or any local-preference ordinance. |
| 292 | (j) A county, municipality, special district as defined in |
| 293 | s. 189.403, or any other political subdivision of the state that |
| 294 | owns or operates a public-use airport as defined in s. 332.004 |
| 295 | is exempt from this section when performing repairs or |
| 296 | maintenance on the airport's buildings, structures, or public |
| 297 | construction works using the local government's own services, |
| 298 | employees, and equipment. |
| 299 | (k) A local government that owns or operates a port |
| 300 | identified in s. 403.021(9)(b) is exempt from this section when |
| 301 | performing repairs or maintenance on the port's buildings, |
| 302 | structures, or public construction works using the local |
| 303 | government's own services, employees, and equipment. |
| 304 | (l) A local government that owns or operates a public |
| 305 | transit system as defined in s. 343.52, a public transportation |
| 306 | system as defined in s. 343.62, or a mass transit system |
| 307 | described in s. 349.04(1)(b) is exempt from this section when |
| 308 | performing repairs or maintenance on the buildings, structures, |
| 309 | or public construction works of the public transit system, |
| 310 | public transportation system, or mass transit system using the |
| 311 | local government's own services, employees, and equipment. |
| 312 | (m) Any contractor may be considered ineligible to bid by |
| 313 | the governmental entity if the contractor has been found guilty |
| 314 | by a court of any violation of federal labor or employment tax |
| 315 | laws regarding subjects such as safety, tax withholding, workers |
| 316 | compensation, unemployment tax, social security and Medicare |
| 317 | tax, wage or hour, or prevailing rate laws within the past 5 |
| 318 | years. |
| 319 | (2) The threshold amount of $300,000 $200,000 for |
| 320 | construction or $75,000 $50,000 for electrical work, as |
| 321 | specified in subsection (1), must be adjusted by the percentage |
| 322 | change in the Engineering News-Record's Building Cost Consumer |
| 323 | Price Index from January 1, 2009 1994, to January 1 of the year |
| 324 | in which the project is scheduled to begin. |
| 325 | (3) All county officials, boards of county commissioners, |
| 326 | school boards, city councils, city commissioners, and all other |
| 327 | public officers of state boards or commissions that are charged |
| 328 | with the letting of contracts for public work, for the |
| 329 | construction of public bridges, buildings, and other structures |
| 330 | must always specify lumber, timber, and other forest products |
| 331 | produced and manufactured in this state if whenever such |
| 332 | products are available and their price, fitness, and quality are |
| 333 | equal. This subsection does not apply to when plywood specified |
| 334 | for monolithic concrete forms, if when the structural or service |
| 335 | requirements for timber for a particular job cannot be supplied |
| 336 | by native species, or if when the construction is financed in |
| 337 | whole or in part from federal funds with the requirement |
| 338 | requirements that there be no restrictions as to species or |
| 339 | place of manufacture. |
| 340 | (4) Any qualified contractor or vendor who could have been |
| 341 | awarded the project had the project been competitively bid has |
| 342 | shall have standing to challenge a the propriety of the local |
| 343 | government's actions to determine if the local government has |
| 344 | complied with when the local government seeks to invoke the |
| 345 | provisions of this section. The prevailing party in such action |
| 346 | is shall be entitled to recover its reasonable attorney's fees. |
| 347 | Section 2. This act shall take effect October 1, 2009. |
| 348 |
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