Florida Senate - 2012                                    SB 1626
       
       
       
       By Senator Gaetz
       
       
       
       
       4-00922C-12                                           20121626__
    1                        A bill to be entitled                      
    2         An act relating to state contracting; amending s.
    3         11.45, F.S.; conforming provisions to changes made by
    4         the act; amending s. 215.971, F.S.; requiring
    5         agreements funded with state or federal financial
    6         assistance to include a performance measure for each
    7         deliverable, to be reviewed and approved in accordance
    8         with rules adopted by the Department of Financial
    9         Services, and to have the contracting entity assign a
   10         grants manager who is responsible for enforcing
   11         performance of the agreement; amending s. 215.985,
   12         F.S.; revising provisions relating to the Chief
   13         Financial Officer’s intergovernmental contract
   14         tracking system under the Transparency Florida Act;
   15         specifying the entities that are included in the
   16         tracking system; requiring that exempt and
   17         confidential information be redacted from contracts
   18         and procurement documents posted on the system;
   19         authorizing the Chief Financial Officer to make
   20         available the information posted on the system to the
   21         public through a secure website; repealing s.
   22         216.0111, F.S., relating to a requirement that state
   23         agencies report certain contract information to the
   24         Department of Financial Services and transferring that
   25         requirement to s. 215.985, F.S.; amending s. 287.032,
   26         F.S.; dividing the responsibilities of the Department
   27         of Management Services under ch. 287, F.S., with the
   28         Department of Financial Services; amending s. 287.042,
   29         F.S.; limiting the duties of the Department of
   30         Management Services to the procurement of commodities
   31         and contractual services; directing the department to
   32         develop a list of interested vendors; deleting
   33         provisions requiring that the department perform
   34         duties relating to procurement and contracting
   35         policies and procedures; creating s. 287.044, F.S.;
   36         assigning duties relating to procurement and
   37         contracting policies and procedures to the Department
   38         of Financial Services; requiring the department to
   39         develop a list of vendors not allowed to do business
   40         with the state; requiring the department to review and
   41         approve contracts in accordance with rules adopted by
   42         the department; providing that the department have
   43         authority to waive procedures under certain
   44         circumstances; providing that the department have
   45         flexibility in accomplishing its duties and
   46         responsibilities including the use of different
   47         contracting methods on a pilot basis; amending s.
   48         287.057, F.S.; revising the list of contractual
   49         services and commodities that are exempt from
   50         competitive solicitation to delete certain services
   51         from the exemption; revising provisions prohibiting an
   52         agency from dividing a solicitation; authorizing an
   53         agency to purchase commodities or services through
   54         another agency’s contract; amending s. 287.058, F.S.;
   55         requiring contracts to include a performance measure
   56         for each deliverable; creating s. 287.1312, F.S.;
   57         requiring certification of contract managers by the
   58         Department of Financial Services for contracts of more
   59         than a certain amount; requiring the training program
   60         for the certification to provide training in certain
   61         areas; authorizing the department to adopt rules to
   62         administer the program; amending s. 287.133, F.S.;
   63         revising the definition of “department” to mean the
   64         Department of Financial Services rather than the
   65         Department of Management Services with respect to
   66         provisions governing public entity crimes and
   67         placement on the convicted vendor list; amending ss.
   68         255.25, 287.012, 402.7305, 427.0135, and 946.515,
   69         F.S.; conforming cross-references; providing state
   70         policies with regards to procurement and requiring the
   71         Chief Financial Officer to conduct a study of current
   72         procurement laws pursuant to such policies; requiring
   73         that the Chief Financial Officer submit a report to
   74         the Legislature and Governor by a certain date on such
   75         study; repealing ch. 287, F.S., on a future date;
   76         providing an appropriation; providing an effective
   77         date.
   78  
   79         WHEREAS, during the 2010-2011 fiscal year, the state spent
   80  nearly $51 billion, or approximately 57 percent, of the state
   81  budget on contracts and agreements for goods and services, and
   82         WHEREAS, during the same fiscal year, the Department of
   83  Financial Services reviewed 364 contract and grant agreements,
   84  each valued at $1 million or more, and found that 26 percent had
   85  significant deficiencies in their scope of work, deliverables,
   86  or performance standards, and
   87         WHEREAS, if this 26 percent error rate applied to the total
   88  contractual amount spent during the fiscal year, approximately
   89  $13 billion in taxpayer dollars was obligated to poorly written
   90  contracts, and
   91         WHEREAS, the state does not have uniform standards for
   92  state contracts which incorporate a comprehensive and precise
   93  scope of work, clearly defined deliverables, and minimum
   94  performance standards that include financial consequences for
   95  failing to deliver goods and services, and
   96         WHEREAS, the Legislature believes that there is an acute
   97  need to initiate reforms that ensure that the state contracting
   98  process reflects the highest ethical and fiscal standards; is
   99  clear, consistent, and measurable; and is conducted in the most
  100  efficient manner possible while delivering goods and services to
  101  state residents, and
  102         WHEREAS, the Legislature recognizes that the poor
  103  management of a good contract could lead to the waste and misuse
  104  of tax dollars, and
  105         WHEREAS, the Legislature believes that state residents
  106  deserve to receive the goods and services for which they are
  107  paying, and
  108         WHEREAS, the Legislature also believes that this state is a
  109  business-friendly state where people doing business with the
  110  state provide goods and services in good faith and deserve to
  111  know what is expected of them, and
  112         WHEREAS, there remains an acute need to provide greater
  113  transparency and accountability in public transactions, and
  114         WHEREAS, the Legislature supports additional high-level
  115  training and certification of state contract managers,
  116  especially as it relates to contracts valued at $325,000 or
  117  more, and
  118         WHEREAS, the Legislature believes that a thorough review of
  119  the state’s procurement system to evaluate its efficiency and
  120  effectiveness has not been performed for many years, and
  121         WHEREAS, the Legislature has determined that the Chief
  122  Financial Officer should conduct an evaluation of the state
  123  procurement process of the executive branch of government, and
  124         WHEREAS, the Legislature fully supports promoting the
  125  value, integrity, transparency, accountability of, and the
  126  public confidence in, the state’s procurement and contracting
  127  processes, NOW, THEREFORE,
  128  
  129  Be It Enacted by the Legislature of the State of Florida:
  130  
  131         Section 1. Paragraphs (a) and (i) of subsection (7) of
  132  section 11.45, Florida Statutes, are amended to read:
  133         11.45 Definitions; duties; authorities; reports; rules.—
  134         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
  135         (a) The Auditor General must shall notify the Legislative
  136  Auditing Committee of any local governmental entity, district
  137  school board, charter school, or charter technical career center
  138  that does not comply with the reporting requirements of s.
  139  215.985 or s. 218.39.
  140         (i) Beginning in 2012, the Auditor General shall annually
  141  transmit by July 15, to the President of the Senate, the Speaker
  142  of the House of Representatives, and the Department of Financial
  143  Services, a list of all school districts, charter schools,
  144  charter technical career centers, Florida College System
  145  institutions, state universities, and water management districts
  146  that have failed to comply with the transparency requirements of
  147  s. 215.985 as identified in the audit reports reviewed pursuant
  148  to paragraph (b) and those conducted pursuant to subsection (2).
  149         Section 2. Section 215.971, Florida Statutes, is amended to
  150  read:
  151         215.971 Agreements funded with federal and state
  152  assistance.—
  153         (1) For an agency agreement that provides state financial
  154  assistance to a recipient or subrecipient, as those terms are
  155  defined in s. 215.97, or that provides federal financial
  156  assistance to a subrecipient, as defined by applicable United
  157  States Office of Management and Budget circulars, the agreement
  158  must shall include a provision:
  159         (a)(1)A provision Specifying a scope of work that clearly
  160  establishes the tasks that the recipient or subrecipient is
  161  required to perform; and
  162         (b)(2)A provision Dividing the agreement into quantifiable
  163  units of deliverables which that must be received and accepted
  164  in writing by the agency before payment. Each deliverable must
  165  be directly related to the scope of work and must specify a
  166  performance measure. As used in this paragraph, the term
  167  “performance measure” means the required minimum level of
  168  service to be performed and the criteria for evaluating the
  169  successful completion of each deliverable.
  170         (2) Before execution, agreements to be funded with state or
  171  federal financial assistance must be submitted for review and
  172  approval in accordance with rules adopted by the Department of
  173  Financial Services. The review must ensure that the agreement
  174  document contains a clear statement of work, quantifiable and
  175  measureable deliverables, performance measures, and financial
  176  consequences for nonperformance. An agreement that does not
  177  comply with this subsection may be rejected and returned to the
  178  submitting agency for revision.
  179         (3) For each agreement funded with federal or state
  180  assistance, the contracting agency shall designate an employee
  181  to function as grant manager who shall be responsible for
  182  enforcing performance of the agreement terms and conditions and
  183  serve as a liaison with the recipient. A grant manager who is
  184  responsible for one or more agreements in excess of the
  185  threshold amount provided in s. 287.017 for CATEGORY FIVE must
  186  be certified under s. 287.1312. The Chief Financial Officer
  187  shall establish and disseminate uniform procedures for payment
  188  requests pursuant to s. 17.03(3) to ensure that services are
  189  rendered in accordance with the agreement terms before the
  190  agency processes an invoice for payment. The procedures must
  191  include, but need not be limited to, procedures for monitoring
  192  and documenting a recipient’s performance, reviewing and
  193  documenting all deliverables for which payment is requested by
  194  the recipient, and providing written certification by the grant
  195  manager of the agency’s receipt of goods and services.
  196         Section 3. Subsection (16) of section 215.985, Florida
  197  Statutes, is amended to read:
  198         215.985 Transparency in government spending.—
  199         (16) The Chief Financial Officer shall establish a secure,
  200  shared, intergovernmental contract tracking provide public
  201  access to a state contract management system.
  202         (a) Within 30 calendar days after executing a contract,
  203  each state agency as defined in s. 216.011(1), and, effective
  204  October 1, 2013, each local governmental entity and independent
  205  special district as defined in s. 218.31, each district school
  206  board as described in s. 1001.32, the Board of Governors of the
  207  State University System as described in s. 1001.70, and each
  208  Florida College System institution board of trustees as
  209  described in s. 1001.61 must post the following that provides
  210  information and documentation relating to that contract on the
  211  contract tracking system: contracts procured by governmental
  212  entities.
  213         1. The name of the contracting entities;
  214         2. The procurement method;
  215         3. The contract beginning and ending dates;
  216         4. The nature or type of the commodities or services
  217  purchased;
  218         5. Applicable contract unit prices and deliverables;
  219         6. Total compensation to be paid or received under the
  220  contract;
  221         7. All payments made to the contract vendor to date;
  222         8. All commodities or services received from the contract
  223  vendor to date;
  224         9. Applicable contract performance measures;
  225         10. Contract extensions or renewals, if any;
  226         11. The justification for not using competitive
  227  solicitation to procure the contract, including citation to any
  228  statutory exemption or exception from competitive solicitation,
  229  if applicable;
  230         12. Electronic copies of the contract and procurement
  231  documents, including any provision that may have been redacted
  232  to conceal exempt or confidential information; and
  233         13.Any other information regarding the contract or the
  234  procurement which may be required by the Department of Financial
  235  Services.
  236         (a) The data collected in the system must include, but need
  237  not be limited to, the contracting agency; the procurement
  238  method; the contract beginning and ending dates; the type of
  239  commodity or service; the purpose of the commodity or service;
  240  the compensation to be paid; compliance information, such as
  241  performance metrics for the service or commodity; contract
  242  violations; the number of extensions or renewals; and the
  243  statutory authority for providing the service.
  244         (b) Within 30 calendar days after a major modification or
  245  amendment change to an existing contract, or the execution of a
  246  new contract, agency procurement staff of the affected state
  247  governmental entity must shall update the necessary information
  248  described in paragraph (a) in the state contract tracking
  249  management system. A major modification or amendment change to a
  250  contract includes, but is not limited to, a renewal,
  251  termination, or extension of the contract, or an amendment to
  252  the contract as determined by the Chief Financial Officer.
  253         (c) Each entity identified in paragraph (a) must redact, as
  254  defined in s. 119.011, any exempt or confidential information,
  255  including trade secrets as defined in s. 688.002 or s. 812.081,
  256  from the contract or procurement documents before posting an
  257  electronic copy of such documents on the contract tracking
  258  system.
  259         1. If an entity becomes aware that an electronic copy of a
  260  contract or procurement document that it posted has not been
  261  properly redacted, the entity must replace the electronic copy
  262  of the documents with a redacted copy.
  263         2. If a party to a contract, or an authorized
  264  representative thereof, discovers that an electronic copy of a
  265  contract or procurement document on the system has not been
  266  properly redacted, the party or representative may request the
  267  entity that posted the document to redact the exempt or
  268  confidential information. Upon receipt of a request in
  269  compliance with this subparagraph, the entity that posted the
  270  document shall redact the exempt or confidential information.
  271         a. Such request must be in writing and delivered by mail,
  272  facsimile, or electronic transmission, or in person to the
  273  entity that posted the information. The request must identify
  274  the specific document, the page numbers that include the exempt
  275  or confidential information, the information that is exempt or
  276  confidential, and the relevant statutory exemption. A fee may
  277  not be charged for a redaction made pursuant to such request.
  278         b. If necessary, a party to the contract may petition the
  279  circuit court for an order directing compliance with this
  280  paragraph.
  281         3. The Chief Financial Officer, the Department of Financial
  282  Services, or any officer, employee, or contractor thereof, is
  283  not responsible for redacting exempt or confidential information
  284  from an electronic copy of a contract or procurement document
  285  posted by another entity on the system, and is not liable for
  286  the failure of the entity to redact the exempt or confidential
  287  information. The Department of Financial Services may notify the
  288  posting entity if it discovers that a document posted on the
  289  tracking system contains exempt or confidential information.
  290         (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial
  291  Officer may make information posted on the contract tracking
  292  system available for viewing and downloading by the public
  293  through a secure website. Unless otherwise provided by law,
  294  information retrieved electronically pursuant to this paragraph
  295  is not admissible in court as an authenticated document.
  296         1. The Chief Financial Officer may regulate and prohibit
  297  the posting of records that could facilitate identity theft or
  298  fraud, such as signatures; compromise or reveal an agency
  299  investigation; reveal the identity of undercover personnel;
  300  reveal proprietary confidential business information or trade
  301  secrets; reveal an individual’s medical information; or reveal
  302  any other record or information that the Chief Financial Officer
  303  believes may jeopardize the health, safety, or welfare of the
  304  public. However, such prohibition does not eliminate the duty of
  305  an entity to provide a copy of a public record upon request. The
  306  Chief Financial Officer shall use appropriate Internet security
  307  measures to ensure that no person has the ability to alter or
  308  modify records available on the website.
  309         2. Records made available on the website, including
  310  electronic copies of contracts or procurement documents, may not
  311  reveal information made exempt or confidential by law. Notice of
  312  the right of an affected party to request redaction of exempt or
  313  confidential information pursuant to paragraph (c) must be
  314  conspicuously and clearly displayed on the website. This
  315  includes, but is not limited to:
  316         a. Criminal intelligence or criminal investigative
  317  information as defined in s. 119.011;
  318         b. Surveillance techniques or procedures or personnel;
  319         c. The identity of a confidential informant or confidential
  320  source;
  321         d. The identify of undercover personnel of a criminal
  322  justice agency;
  323         e. A security system plan; or
  324         f. Trade secret as defined in s. 688.002 or s. 812.081.
  325         (e) The posting of information on the contract tracking
  326  system or the provision of contract information on a website for
  327  public viewing and downloading does not eliminate the duty of an
  328  entity to respond to a public record request for such
  329  information or to a subpoena for such information.
  330         1. A request for a copy of a contract or procurement
  331  document or a certified copy of a contract or procurement
  332  document shall be made to the entity that is party to the
  333  contract and that maintains the original documents. Such request
  334  may not be made to the Chief Financial Officer or the Department
  335  of Financial Services or any officer, employee, or contractor
  336  thereof unless the Chief Financial Officer or the department is
  337  a party to the contract.
  338         2. A subpoena for a copy of a contract or procurement
  339  document or certified copy of a contract or procurement document
  340  must be served on the entity that is a party to the contract and
  341  that maintains the original documents. The Chief Financial
  342  Officer or the Department of Financial Services or any officer,
  343  employee, or contractor thereof may not be served a subpoena for
  344  those records unless the Chief Financial Officer or the
  345  department is a party to the contract.
  346         (f) The Department of Financial Services may adopt rules to
  347  administer this subsection.
  348         Section 4. Section 216.0111, Florida Statutes, is repealed.
  349         Section 5. Section 287.032, Florida Statutes, is amended to
  350  read:
  351         287.032 Departmental responsibility purpose of department.
  352  Pursuant to the administration of this chapter:
  353         (1)It shall be The responsibility purpose of the
  354  Department of Management Services is to:
  355         (a)(1)To Promote efficiency, economy, and the conservation
  356  of energy and coordinate to effect coordination in the purchase
  357  of commodities and contractual services for the state.
  358         (2) To provide uniform commodity and contractual service
  359  procurement policies, rules, procedures, and forms for use by
  360  agencies and eligible users.
  361         (b)(3)To Procure and distribute federal surplus tangible
  362  personal property allocated to the state by the Federal
  363  Government.
  364         (2) The responsibility of the Department of Financial
  365  Services is to:
  366         (a) Provide uniform commodity and contractual service
  367  procurement policies, rules, procedures, and forms for use by
  368  agencies and eligible users.
  369         (b) Monitor agencies with respect to compliance with
  370  established policies, rules, and procedures.
  371         Section 6. Section 287.042, Florida Statutes, is amended to
  372  read:
  373         287.042 Powers, duties, and functions of the Department of
  374  Management Services.—The department is responsible for the
  375  procurement of commodities and contractual services for agencies
  376  and has shall have the following powers, duties, and functions:
  377         (1)(a) To canvass all sources of supply, establish and
  378  maintain a vendor list, and contract for the purchase, lease, or
  379  acquisition, including purchase by installment sales or lease
  380  purchase contracts which may provide for the payment of interest
  381  on unpaid portions of the purchase price, of all commodities and
  382  contractual services required by an any agency under this
  383  chapter. A Any contract providing for deferred payments and the
  384  payment of interest is shall be subject to specific rules
  385  adopted by the Department of Financial Services.
  386         (a)(b)The department shall develop a list of interested
  387  vendors to be maintained by classes of commodities and
  388  contractual services. The list may not be used to prequalify a
  389  vendor or to exclude an interested vendor from bidding. However,
  390  a vendor barred by the Chief Financial Officer pursuant to s.
  391  287.044(7) may not be included on the list. The department may
  392  remove from the its vendor list any source of supply which fails
  393  to fulfill any of its duties specified in a contract with the
  394  state. The department It may reinstate any such source of supply
  395  if the department when it is satisfied that further instances of
  396  default will not occur.
  397         (b)(c) In order to promote the cost-effective procurement
  398  of commodities and contractual services, the department or an
  399  agency may enter into contracts that limit the liability of a
  400  vendor consistent with s. 672.719.
  401         (d) The department shall issue commodity numbers for all
  402  products of the corporation operating the correctional industry
  403  program which meet or exceed department specifications.
  404         (c)(e) The department shall include the products offered by
  405  the corporation operating the correctional industry program on
  406  any listing prepared by the department which lists state term
  407  contracts executed by the department. The products or services
  408  shall be placed on such list in a category based upon
  409  specification criteria developed through a joint effort of the
  410  department and the corporation and approved by the department.
  411         1.(f) The corporation may submit products and services to
  412  the department for testing, analysis, and review relating to the
  413  quality and cost comparability. If, after review and testing,
  414  the department approves of the products and services, the
  415  department shall give written notice thereof to the corporation.
  416  The corporation shall pay a reasonable fee charged for the
  417  testing of its products by the Department of Agriculture and
  418  Consumer Services.
  419         2. The department shall issue a commodity number for all
  420  products of the corporation which meet or exceed department
  421  specifications.
  422         (d)(g) The department shall include products and services
  423  that are offered by a qualified nonprofit agency for the blind
  424  or for the other severely handicapped organized pursuant to
  425  chapter 413 and that have been determined to be suitable for
  426  purchase pursuant to s. 413.035 on a any department listing of
  427  state term contracts. The products and services shall be placed
  428  on such list in a category based upon specification criteria
  429  developed by the department in consultation with the qualified
  430  nonprofit agency.
  431         (e)(h) The department may collect fees for the use of its
  432  electronic information services. The fees may be imposed on an
  433  individual transaction basis or as a fixed subscription for a
  434  designated period of time. At a minimum, the fees shall be
  435  determined in an amount sufficient to cover the department’s
  436  projected costs for of the services, including overhead, in
  437  accordance with the policies of the department of Management
  438  Services for computing its administrative assessment. All fees
  439  collected under this paragraph shall be deposited in the
  440  Operating Trust Fund for disbursement as provided by law.
  441         (2)(a) To establish purchasing agreements and procure state
  442  term contracts for commodities and contractual services,
  443  pursuant to s. 287.057, under which state agencies shall, and
  444  eligible users may, make purchases pursuant to s. 287.056.
  445         (a) The department may restrict purchases by from some term
  446  contracts to state agencies from only for those term contracts
  447  if where the inclusion of other governmental entities will have
  448  an adverse effect on competition or on to those federal
  449  facilities located in this state. In such planning or
  450  purchasing, the office of Supplier Diversity may monitor to
  451  ensure that opportunities are afforded for contracting with
  452  minority business enterprises. The department, for state term
  453  contracts, and all agencies, for multiyear contractual services
  454  or term contracts, shall explore reasonable and economical means
  455  to use utilize certified minority business enterprises.
  456  Purchases by any county, municipality, private nonprofit
  457  community transportation coordinator designated pursuant to
  458  chapter 427, while conducting business related solely to the
  459  Commission for the Transportation Disadvantaged, or other local
  460  public agency under the provisions in the state purchasing
  461  contracts, and purchases, from the corporation operating the
  462  correctional work programs, of products or services that are
  463  subject to paragraph (1)(c) (1)(f), are exempt from the
  464  competitive solicitation requirements otherwise applying to
  465  their purchases.
  466         (b) As an alternative to any provision in s. 120.57(3)(c),
  467  the department may proceed with the competitive solicitation or
  468  contract award process of a term contract if when the secretary
  469  of the department or his or her designee sets forth in writing
  470  particular facts and circumstances that which demonstrate that
  471  the delay incident to staying the solicitation or contract award
  472  process would be detrimental to the interests of the state. If,
  473  after the award of the a contract resulting from a competitive
  474  solicitation in which a timely protest was received and in which
  475  the state did not prevail, the contract may be canceled and
  476  reawarded.
  477         (c) Any person who files an action protesting a decision or
  478  intended decision pertaining to contracts administered by the
  479  department, a water management district, or an agency pursuant
  480  to s. 120.57(3)(b) shall, at the same time, also post a bond
  481  equal to 1 percent of the estimated contract amount with, and
  482  payable to, the department, the water management district, or
  483  the agency, as applicable at the time of filing the formal
  484  written protest a bond payable to the department, the water
  485  management district, or agency in an amount equal to 1 percent
  486  of the estimated contract amount. For protests of decisions or
  487  intended decisions pertaining to exceptional purchases, the bond
  488  must shall be in an amount equal to 1 percent of the estimated
  489  contract amount for the exceptional purchase.
  490         1. The estimated contract amount shall be based upon the
  491  contract price submitted by the protestor or, if no contract
  492  price was submitted, the department, water management district,
  493  or agency shall estimate the contract amount based on factors,
  494  including, but not limited to, the price of previous or existing
  495  contracts for similar commodities or contractual services, the
  496  amount appropriated by the Legislature for the contract, or the
  497  fair market value of similar commodities or contractual
  498  services. The agency shall provide the estimated contract amount
  499  to the vendor within 72 hours, excluding Saturdays, Sundays, and
  500  state holidays, after the filing of the notice of protest by the
  501  vendor. The estimated contract amount is not subject to protest
  502  pursuant to s. 120.57(3).
  503         2. The bond shall be conditioned upon the payment of all
  504  costs and charges that are adjudged against the protestor in the
  505  administrative hearing in which the action is brought and in any
  506  subsequent appellate court proceeding.
  507         3. In lieu of a bond, the department, the water management
  508  district, or agency may, in either case, accept a cashier’s
  509  check, official bank check, or money order in the amount of the
  510  bond.
  511         4. If, after completion of the administrative hearing
  512  process and any appellate court proceedings, the department,
  513  water management district, or agency prevails, it shall recover
  514  all costs and charges, which must shall be included in the final
  515  order or judgment, excluding attorney attorney’s fees. This
  516  section shall not apply to protests filed by the Office of
  517  Supplier Diversity. Upon payment of such costs and charges by
  518  the protestor, the bond, cashier’s check, official bank check,
  519  or money order shall be returned to the protestor. If, after the
  520  completion of the administrative hearing process and any
  521  appellate court proceedings, the protestor prevails, the
  522  protestor may shall recover from the department, water
  523  management district, or agency all costs and charges that are
  524  which shall be included in the final order or judgment,
  525  excluding attorney attorney’s fees.
  526         5. This paragraph does not apply to protests filed by the
  527  office.
  528         (3) To establish a system of coordinated, uniform
  529  procurement policies, procedures, and practices to be used by
  530  agencies in acquiring commodities and contractual services,
  531  which shall include, but not be limited to:
  532         (a) Development of a list of interested vendors to be
  533  maintained by classes of commodities and contractual services.
  534  This list shall not be used to prequalify vendors or to exclude
  535  any interested vendor from bidding.
  536         (b)1. Development of procedures for advertising
  537  solicitations. These procedures must provide for electronic
  538  posting of solicitations for at least 10 days before the date
  539  set for receipt of bids, proposals, or replies, unless the
  540  department or other agency determines in writing that a shorter
  541  period of time is necessary to avoid harming the interests of
  542  the state. The Office of Supplier Diversity may consult with the
  543  department regarding the development of solicitation
  544  distribution procedures to ensure that maximum distribution is
  545  afforded to certified minority business enterprises as defined
  546  in s. 288.703.
  547         2. Development of procedures for electronic posting. The
  548  department shall designate a centralized website on the Internet
  549  for the department and other agencies to electronically post
  550  solicitations, decisions or intended decisions, and other
  551  matters relating to procurement.
  552         (c) Development of procedures for the receipt and opening
  553  of bids, proposals, or replies by an agency. Such procedures
  554  shall provide the Office of Supplier Diversity an opportunity to
  555  monitor and ensure that the contract award is consistent with
  556  the requirements of s. 287.09451.
  557         (d) Development of procedures to be used by an agency in
  558  deciding to contract, including, but not limited to, identifying
  559  and assessing in writing project needs and requirements,
  560  availability of agency employees, budgetary constraints or
  561  availability, facility equipment availability, current and
  562  projected agency workload capabilities, and the ability of any
  563  other state agency to perform the services.
  564         (e) Development of procedures to be used by an agency in
  565  maintaining a contract file for each contract which shall
  566  include, but not be limited to, all pertinent information
  567  relating to the contract during the preparatory stages; a copy
  568  of the solicitation; documentation relating to the solicitation
  569  process; opening of bids, proposals, or replies; evaluation and
  570  tabulation of bids, proposals, or replies; and determination and
  571  notice of award of contract.
  572         (f) Development of procedures to be used by an agency for
  573  issuing solicitations that include requirements to describe
  574  commodities, services, scope of work, and deliverables in a
  575  manner that promotes competition.
  576         (g) Development of procedures to be used by an agency when
  577  issuing requests for information and requests for quotes.
  578         (h) Development of procedures to be used by state agencies
  579  when procuring information technology commodities and
  580  contractual services that ensure compliance with public records
  581  requirements and records retention and archiving requirements.
  582         (4)(a) To prescribe the methods of securing competitive
  583  sealed bids, proposals, and replies. Such methods may include,
  584  but are not limited to, procedures for identifying vendors;
  585  setting qualifications; conducting conferences or written
  586  question and answer periods for purposes of responding to vendor
  587  questions; evaluating bids, proposals, and replies; ranking and
  588  selecting vendors; and conducting negotiations.
  589         (b) To prescribe procedures for procuring information
  590  technology and information technology consultant services that
  591  provide for public announcement and qualification, competitive
  592  solicitations, contract award, and prohibition against
  593  contingent fees. Such procedures are limited to information
  594  technology consultant contracts for which the total project
  595  costs, or planning or study activities, are estimated to exceed
  596  the threshold amount provided in s. 287.017, for CATEGORY TWO.
  597         (3)(5) To prescribe specific commodities and quantities to
  598  be purchased locally.
  599         (6)(a) To govern the purchase by any agency of any
  600  commodity or contractual service and to establish standards and
  601  specifications for any commodity.
  602         (4)(b) Except for the purchase of insurance, to the
  603  department may delegate to agencies the authority for the
  604  procurement of and contracting for commodities or contractual
  605  services.
  606         (7) To establish definitions and classes of commodities and
  607  contractual services. Agencies shall follow the definitions and
  608  classes of commodities and contractual services established by
  609  the department in acquiring or purchasing commodities or
  610  contractual services. The authority of the department under this
  611  section shall not be construed to impair or interfere with the
  612  determination by state agencies of their need for, or their use
  613  of, services including particular specifications.
  614         (8) To provide any commodity and contractual service
  615  purchasing rules to the Chief Financial Officer and all agencies
  616  through an electronic medium or other means. Agencies may not
  617  approve any account or request any payment of any account for
  618  the purchase of any commodity or the procurement of any
  619  contractual service covered by a purchasing or contractual
  620  service rule except as authorized therein. The department shall
  621  furnish copies of rules adopted by the department to any county,
  622  municipality, or other local public agency requesting them.
  623         (5)(9) To require that every agency furnish information
  624  relative to its commodity and contractual services purchases and
  625  methods of purchasing commodities and contractual services to
  626  the department when so requested.
  627         (6)(10) To prepare statistical data concerning the method
  628  of procurement, terms, usage, and disposition of commodities and
  629  contractual services by agencies. All agencies shall furnish
  630  such information for this purpose to the office and to the
  631  department, as the department or office may call for, but at
  632  least no less frequently than annually, on such forms or in such
  633  manner as the department may prescribe.
  634         (11) To establish and maintain programs for the purpose of
  635  disseminating information to government, industry, educational
  636  institutions, and the general public concerning policies,
  637  procedures, rules, and forms for the procurement of commodities
  638  and contractual services.
  639         (7)(12) Except as otherwise provided in this section
  640  herein, to adopt rules necessary to carry out the purposes of
  641  this section, including the authority to delegate to any agency
  642  any and all of the responsibility conferred by this section,
  643  retaining to the department any and all authority for
  644  supervision thereof. Such purchasing of commodities and
  645  procurement of contractual services by state agencies must also
  646  shall be in strict accordance with the rules and procedures
  647  prescribed by the Department of Financial Services.
  648         (8)(13) If the department determines in writing that it is
  649  in the best interest of the state, to award to multiple
  650  suppliers contracts for commodities and contractual services
  651  established by the department for use by all agencies. Such
  652  awards may be on a statewide or regional basis. If regional
  653  contracts are established by the department, multiple supplier
  654  awards may be based upon multiple awards for regions. Agencies
  655  may award contracts to a responsible and responsive vendor on a
  656  statewide or regional basis.
  657         (9)(14) To procure and distribute federal surplus tangible
  658  personal property allocated to the state by the Federal
  659  Government.
  660         (10)(15) To enter into joint agreements with governmental
  661  agencies, as defined in s. 163.3164, for the purpose of pooling
  662  funds for the purchase of commodities or information technology
  663  that can be used by multiple agencies.
  664         (a) Each agency that has been appropriated or has existing
  665  funds for such purchase, shall, upon contract award by the
  666  department, transfer their portion of the funds into the
  667  department’s Operating Trust Fund for payment by the department.
  668  The funds shall be transferred by the Executive Office of the
  669  Governor pursuant to the agency budget amendment request
  670  provisions in chapter 216.
  671         (b) Agencies that sign the joint agreements are financially
  672  obligated for their portion of the agreed-upon funds. If an
  673  agency becomes more than 90 days delinquent in paying the funds,
  674  the department shall certify to the Chief Financial Officer the
  675  amount due, and the Chief Financial Officer shall transfer the
  676  amount due to the Operating Trust Fund of the department from
  677  any of the agency’s available funds. The Chief Financial Officer
  678  shall report these transfers and the reasons for the transfers
  679  to the Executive Office of the Governor and the legislative
  680  appropriations committees.
  681         (11)(16) To evaluate contracts let by the Federal
  682  Government, another state, or a political subdivision for the
  683  provision of commodities and contract services, and, if it is
  684  determined in writing to be cost-effective and in the best
  685  interest of the state, to enter into a written agreement
  686  authorizing an agency to make purchases under such contract.
  687         (12)(17)(a) To enter into contracts pursuant to chapter 957
  688  for the designing, financing, acquiring, leasing, constructing,
  689  or operating of private correctional facilities. The department
  690  shall enter into such a contract or contracts with one
  691  contractor per facility for the designing, acquiring, financing,
  692  leasing, constructing, and operating of that facility or may, if
  693  specifically authorized by the Legislature, separately contract
  694  for each of any such services.
  695         (a)(b)The department shall also To manage and enforce
  696  compliance with existing or future contracts entered into
  697  pursuant to chapter 957.
  698         (b) The department may not delegate the responsibilities
  699  conferred by this subsection.
  700         Section 7. Section 287.044, Florida Statutes, is created to
  701  read:
  702         287.044Powers, duties, and functions of the Department of
  703  Financial Services.—The Department of Financial Services is
  704  responsible for establishing and enforcing procurement and
  705  contracting policies and procedures for the Department of
  706  Management Services and all agencies. The Department of
  707  Financial Services has the following powers, duties, and
  708  functions:
  709         (1)To establish a system of coordinated and uniform
  710  procurement policies, procedures, and practices to be used by
  711  agencies when acquiring commodities and contractual services,
  712  which includes, but is not limited to:
  713         (a)The development of procedures to be used by an agency
  714  for issuing or advertising solicitations which include
  715  requirements for the agency to describe commodities, services,
  716  scope of work, and deliverables in a manner that promotes
  717  competition.
  718         1.Such procedures must provide for electronic posting of
  719  solicitations at least 10 days before the date set for receipt
  720  of bids, proposals, or replies, unless the agency determines in
  721  writing that a shorter period of time is necessary to avoid
  722  harming the interests of the state.
  723         2. The office may consult with the department regarding the
  724  development of solicitation distribution procedures to ensure
  725  that maximum distribution is afforded to certified minority
  726  business enterprises as defined in s. 288.703.
  727         3. The department shall designate a centralized website on
  728  the Internet for the department and other agencies to
  729  electronically post solicitations, decisions or intended
  730  decisions, and other matters relating to procurement.
  731         4. State agencies shall be prepared to provide an
  732  explanation to unsuccessful bidders, if requested, of the
  733  reasons for which the bidders did not win a bid, in order to
  734  improve the bidders’ chances for future success and encourage
  735  greater competition in the marketplace.
  736         (b)The development of procedures to be used by an agency
  737  when issuing requests for information and requests for quotes.
  738         (c)The development of procedures to be used by state
  739  agencies when procuring information technology commodities and
  740  contractual services which ensure compliance with public records
  741  requirements and records retention and archiving requirements.
  742         (d)The development of procedures for the receipt and
  743  opening of bids, proposals, or replies by an agency. Such
  744  procedures must provide the office an opportunity to monitor and
  745  to ensure that the contract award is consistent with the
  746  requirements of s. 287.09451.
  747         (e)The development of procedures to be used by an agency
  748  in deciding to contract, including, but not limited to,
  749  identifying and assessing in writing project needs and
  750  requirements, availability of agency employees, budgetary
  751  availability or constraints, availability of facility equipment,
  752  current and projected agency workload capabilities, and the
  753  ability of another state agency to perform the services.
  754         (f) The development of a methodology to calculate cost
  755  savings or cost avoidance achieved under a contract. Each agency
  756  must annually report any action taken and the amount of cost
  757  savings or cost avoidance which resulted from using the
  758  methodology developed by the department. At a minimum, the
  759  methodology should address:
  760         1. The assessment of financial consequences for
  761  nonperformance.
  762         2.Criteria for renegotiating the contract.
  763         3. Refinement of the scope of work or deliverables.
  764         4.The use of additional competition during the procurement
  765  process which results in awarding the contract at a lower price
  766  than the previous award.
  767         (g) The development of procedures for recording and
  768  maintaining support documentation for a cost or price analysis
  769  to be performed before the award of a contract in excess of the
  770  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  771  cost or price analysis shall be used to validate the
  772  reasonableness of bids, proposals, or replies.
  773         (h) The development of procedures to be used by state
  774  agencies when entering into contracts which ensure standard
  775  formats, quantifiable and measurable deliverables, performance
  776  measures, and financial consequences for nonperformance.
  777         (i)The development of procedures to be used by an agency
  778  in maintaining a contract file for each contract which includes,
  779  but is not limited to, all pertinent information relating to the
  780  contract during the preparatory stages; the solicitation
  781  process, including a copy of the solicitation; the opening of
  782  bids, proposals, or replies; the evaluation and tabulation of
  783  bids, proposals, or replies; and the determination and notice of
  784  contract award.
  785         (2)To prescribe the methods of securing competitive sealed
  786  bids, proposals, and replies. Such methods may include, but are
  787  not limited to, procedures for identifying vendors; setting
  788  qualifications; conducting conferences or written question and
  789  answer periods for purposes of responding to vendor questions;
  790  evaluating bids, proposals, and replies; ranking and selecting
  791  vendors; and conducting negotiations.
  792         (3)To prescribe procedures for procuring information
  793  technology and information technology consultant services which
  794  provide for public announcement and qualification, competitive
  795  solicitations, the contract award, and a prohibition against
  796  contingent fees. Such procedures are limited to information
  797  technology consultant contracts for which the total project
  798  costs, or planning or study activities, are estimated to exceed
  799  the threshold amount provided in s. 287.017 for CATEGORY TWO.
  800         (4) To govern the purchase by an agency of any commodity or
  801  contractual service and to establish standards and
  802  specifications for a commodity. The Chief Financial Officer
  803  shall establish definitions and classes of commodities and
  804  contractual services which agencies must adhere to in acquiring
  805  or purchasing commodities or contractual services. The
  806  department’s authority under this section may not impair or
  807  interfere with an agency’s determination of its need for, or use
  808  of, services that include particular specifications.
  809         (5)To provide to agencies through an electronic medium or
  810  other means rules for purchasing commodities and contractual
  811  services. Agencies may not approve any account, or request
  812  payment of any account, for the purchase of any commodity or the
  813  procurement of any contractual service covered by a purchasing
  814  or contractual service rule except as authorized by such rule.
  815  The department shall furnish copies of rules adopted by the
  816  department to any county, municipality, or other local public
  817  agency requesting them.
  818         (6)To establish and maintain programs that disseminate
  819  information to governmental entities, industry vendors,
  820  educational institutions, and the general public concerning
  821  policies, procedures, rules, and forms for the procurement of
  822  commodities and contractual services.
  823         (7) To establish and maintain a list of vendors that are
  824  not allowed to do business with the state pursuant to ss.
  825  287.132(4) and 287.133. The department may add to the list
  826  vendors that are not compliant with federal or state laws, or
  827  that the department determines have uncollected accounts that
  828  are owed to the state.
  829         (8) To review and approve contracts subject to this chapter
  830  before the execution of such contracts in accordance with rules
  831  adopted by the department. The review must ensure that all
  832  contracting laws have been met; that the contract document
  833  contains a clear statement of work, quantifiable and measureable
  834  deliverables, performance measures, financial consequences for
  835  nonperformance, and clear terms and conditions that protect the
  836  interests of the state; that documentation is available to
  837  support the contract; and that the associated costs of the
  838  contract are not unreasonable or inappropriate. A contract that
  839  does not comply with this subsection may be rejected and
  840  returned to the submitting agency for revision.
  841         (a) For contracts in excess of the threshold amount
  842  provided in s. 287.017 for CATEGORY THREE, the review must
  843  include, but need not be limited to:
  844         1. Evidence of advertising the procurement opportunity, if
  845  applicable;
  846         2. The bid, proposal, or reply itself, whether an
  847  invitation to bid, request for proposals, or invitation to
  848  negotiate, as applicable;
  849         3. The preprocurement conference questions and answers;
  850         4. Any additional documentation provided to bidders,
  851  proposers, or repliers;
  852         5. The list of bidders, proposers, or repliers solicited;
  853         6. The evaluation instrument and process description
  854  related to the contract;
  855         7. The bid tabulation or evaluation record;
  856         8. Documentation that supports the agency’s determination
  857  of vendor responsibility;
  858         9. The successful bid, proposal, or reply in addition to
  859  the unsuccessful bids, proposals, or replies;
  860         10. Documentation that supports the selection of the
  861  contractor;
  862         11. The reasonableness of the price;
  863         12. Verification that all statutory and regulatory
  864  requirements have been met; and
  865         13. The proposed contract.
  866         (b) The department shall verify that a competitive process
  867  was used if required by law and that the contract was
  868  appropriately awarded on the basis of lowest price or best value
  869  to a responsive and reasonable bidder, proposer, or replier. For
  870  contracts not competitively awarded, the procurement record
  871  shall be reviewed for restrictive specifications and the
  872  agency’s justification for the noncompetitive method used in
  873  awarding the contract, including justification for the selection
  874  of the vendor and the reasonableness of the terms.
  875         (c) The department has 90 days to make a final
  876  determination regarding approval of a contract. The department
  877  and the agency entering into the contract may agree to a longer
  878  review period to ensure the thorough consideration of the
  879  procurement process and its results.
  880         (d) In order to ensure that the parties to the contract are
  881  aware that a contract is not effective unless approved by the
  882  department, the following language must be included in each
  883  state contract or amendment to such contract:
  884  
  885         If this contract, or an amendment to a contract, is
  886         valued at or greater than $65,000 or if the state
  887         agrees to give something other than money, which
  888         consideration has a value or reasonably estimated
  889         value at or greater than $35,000, the contract or
  890         amendment is not valid, effective, or binding upon the
  891         state unless the contract or amendment has been
  892         approved by the Chief Financial Officer.
  893  
  894         (e) Contracts and grants or grants-type contracts must be
  895  treated similarly. Therefore, if a for-profit entity joins the
  896  competition for a grant, normal contract rules apply even though
  897  they may not be appropriate for a grant procurement.
  898         (9) To waive minor deviations from current procedures in
  899  order to prevent a delay in awarding an otherwise favorable
  900  contract if a vendor is not adversely affected and current law
  901  is not violated. The Chief Financial Officer shall provide
  902  recommendations to the Legislature to resolve such deviations,
  903  where appropriate, at the next regular legislative session.
  904         (10) To have flexibility in accomplishing the intent of
  905  this section. If situations arise that current law does not
  906  anticipate, the department may work with state agencies to use
  907  different contracting methods on a pilot basis for the remainder
  908  of the calendar year. The Chief Financial Officer must provide
  909  recommendations to the Legislature to resolve such situations,
  910  where appropriate, at the next regular legislative session.
  911         Section 8. Paragraph (f) of subsection (3), subsection (9),
  912  and subsection (14) of section 287.057, Florida Statutes, are
  913  amended, and subsection (24) is added to that section, to read:
  914         287.057 Procurement of commodities or contractual
  915  services.—
  916         (3) When the purchase price of commodities or contractual
  917  services exceeds the threshold amount provided in s. 287.017 for
  918  CATEGORY TWO, no purchase of commodities or contractual services
  919  may be made without receiving competitive sealed bids,
  920  competitive sealed proposals, or competitive sealed replies
  921  unless:
  922         (f) The following contractual services and commodities are
  923  not subject to the competitive-solicitation requirements of this
  924  section:
  925         1. Artistic services. For the purposes of this subsection,
  926  the term “artistic services” does not include advertising or
  927  typesetting. As used in this subparagraph, the term
  928  “advertising” means the making of a representation in any form
  929  in connection with a trade, business, craft, or profession in
  930  order to promote the supply of commodities or services by the
  931  person promoting the commodities or contractual services.
  932         2. Academic program reviews if the fee for such services
  933  does not exceed $50,000.
  934         3. Lectures by individuals.
  935         1.4. Legal services, including attorney, paralegal, expert
  936  witness, appraisal, or mediator services.
  937         2.5.a. Health services involving examination, diagnosis,
  938  treatment, prevention, medical consultation, or administration,
  939  and,.
  940         b. beginning January 1, 2011, health services, including,
  941  but not limited to, substance abuse and mental health services,
  942  involving examination, diagnosis, treatment, prevention, or
  943  medical consultation, if when such services are offered to
  944  eligible individuals participating in a specific program that
  945  qualifies multiple providers and uses a standard payment
  946  methodology. Reimbursement of administrative costs for providers
  947  of services purchased in this manner are shall also be exempt.
  948  For purposes of this subparagraph sub-subparagraph, the term
  949  “providers” means health professionals, health facilities, or
  950  organizations that deliver or arrange for the delivery of health
  951  services.
  952         3.6. Services provided to persons with mental or physical
  953  disabilities by not-for-profit corporations that which have
  954  obtained exemptions under the provisions of s. 501(c)(3) of the
  955  United States Internal Revenue Code or if when such services are
  956  governed by the provisions of Office of Management and Budget
  957  Circular A-122. However, in acquiring such services, the agency
  958  must shall consider the vendor’s ability of the vendor, past
  959  performance, willingness to meet time requirements, and price.
  960         4.7. Medicaid services delivered to an eligible Medicaid
  961  recipient, unless the agency is directed otherwise in law.
  962         5.8. Family placement services.
  963         6.9. Prevention services related to mental health,
  964  including drug abuse prevention programs, child abuse prevention
  965  programs, and shelters for runaways, operated by not-for-profit
  966  corporations. However, in acquiring such services, the agency
  967  must shall consider the vendor’s ability of the vendor, past
  968  performance, willingness to meet time requirements, and price.
  969         10. Training and education services provided to injured
  970  employees pursuant to s. 440.491(6).
  971         7.11. Contracts entered into pursuant to s. 337.11.
  972         8.12. Services or commodities provided by governmental
  973  agencies.
  974         (9) An agency may shall not divide the solicitation of
  975  commodities or contractual services so as to avoid the
  976  requirements of subsections (1)-(3) and reduce the ability of
  977  businesses to openly compete. For the purposes of this
  978  subsection, state agencies shall consider all purchases of the
  979  same commodity or service during one year to be part of a single
  980  purchase.
  981         (14) For each contractual services contract, the agency
  982  shall designate an employee to function as contract manager who
  983  shall be responsible for enforcing performance of the contract
  984  terms and conditions and serve as a liaison with the contractor.
  985  Each contract manager who is responsible for one or more
  986  contracts in excess of the threshold amount provided under s.
  987  287.017 for CATEGORY FIVE TWO must be certified pursuant to s.
  988  287.1312 attend training conducted by the Chief Financial
  989  Officer for accountability in contracts and grant management.
  990  The Chief Financial Officer shall establish and disseminate
  991  uniform procedures pursuant to s. 17.03(3) to ensure that
  992  contractual services have been rendered in accordance with the
  993  contract terms before the agency processes the invoice for
  994  payment. The procedures must shall include, but need not be
  995  limited to, procedures for monitoring and documenting contractor
  996  performance, reviewing and documenting all deliverables for
  997  which payment is requested by vendors, and providing written
  998  certification by contract managers of the agency’s receipt of
  999  goods and services.
 1000         (24) An agency may purchase commodities or services through
 1001  another agency’s existing contract rather than through
 1002  competitive competition if the use of such contract is in the
 1003  best interest of the state.
 1004         Section 9. Paragraph (e) of subsection (1) of section
 1005  287.058, Florida Statutes, is amended to read:
 1006         287.058 Contract document.—
 1007         (1) Every procurement of contractual services in excess of
 1008  the threshold amount provided in s. 287.017 for CATEGORY TWO,
 1009  except for the providing of health and mental health services or
 1010  drugs in the examination, diagnosis, or treatment of sick or
 1011  injured state employees or the providing of other benefits as
 1012  required by the provisions of chapter 440, shall be evidenced by
 1013  a written agreement embodying all provisions and conditions of
 1014  the procurement of such services, which shall, where applicable,
 1015  include, but not be limited to, a provision:
 1016         (e) Dividing the contract into quantifiable, measurable,
 1017  and verifiable units of deliverables which that must be received
 1018  and accepted in writing by the contract manager before payment.
 1019  Each deliverable must be directly related to the scope of work
 1020  and specify a performance measure. As used in this paragraph,
 1021  the term “performance measure” means the required minimum level
 1022  of service to be performed and criteria for evaluating the
 1023  successful completion of each deliverable.
 1024  
 1025  In lieu of a written agreement, the department may authorize the
 1026  use of a purchase order for classes of contractual services, if
 1027  the provisions of paragraphs (a)-(i) are included in the
 1028  purchase order or solicitation. The purchase order must include,
 1029  but need not be limited to, an adequate description of the
 1030  services, the contract period, and the method of payment. In
 1031  lieu of printing the provisions of paragraphs (a)-(i) in the
 1032  contract document or purchase order, agencies may incorporate
 1033  the requirements of paragraphs (a)-(i) by reference.
 1034         Section 10. Section 287.1312, Florida Statutes, is created
 1035  to read:
 1036         287.1312Contract manager certification.—
 1037         (1) The Department of Financial Services shall establish a
 1038  certification program for contract and grant managers. A state
 1039  employee may not manage a contract or grant agreement in excess
 1040  of the threshold amount provided in s. 287.017 for CATEGORY FIVE
 1041  without obtaining a valid certification from the Department of
 1042  Financial Services under this section. The program must include
 1043  training in the following areas:
 1044         (a) Procurement and the development of contracts.
 1045         (b) Development and administration of grant agreements
 1046  involving federal and state financial assistance.
 1047         (c) Responsibilities of a contract manager in the
 1048  management of state contracts and grant agreements.
 1049         (d) Federal and state audit and reporting requirements.
 1050         (e) Laws and rules relating to procurement and contract
 1051  administration.
 1052         (f) Any other subject matter that the Chief Financial
 1053  Officer determines will promote accountability in contract and
 1054  grant management.
 1055         (2) The program shall provide for periodic recertification,
 1056  as necessary. The Department of Financial Services shall
 1057  determine course requirements, maintain information on
 1058  certifications, and monitor the performance of contract and
 1059  grant managers. As part of such monitoring, the department shall
 1060  annually publish the results of agency manager audits and error
 1061  rates related to contract and grant management on its website.
 1062         (3) The Department of Financial Services may revoke a
 1063  manager’s certification for incompetence or conduct inconsistent
 1064  with the responsibilities of contract or grant management.
 1065         (4) The Department of Financial Services shall adopt rules
 1066  to administer this section.
 1067         Section 11. Paragraph (d) of subsection (1) of section
 1068  287.133, Florida Statutes, is amended to read:
 1069         287.133 Public entity crime; denial or revocation of the
 1070  right to transact business with public entities.—
 1071         (1) As used in this section:
 1072         (d) “Department” means the Department of Financial
 1073  Management Services.
 1074         Section 12. Paragraph (h) of subsection (3) of section
 1075  255.25, Florida Statutes, is amended to read:
 1076         255.25 Approval required prior to construction or lease of
 1077  buildings.—
 1078         (3)
 1079         (h) The Department of Management Services may, Pursuant to
 1080  s. 287.042(2)(a), the department shall procure a term contract
 1081  for real estate consulting and brokerage services. A state
 1082  agency may not purchase services from the contract unless the
 1083  contract has been procured under s. 287.057(1) after March 1,
 1084  2007, and contains the following provisions or requirements:
 1085         1. Awarded brokers must maintain an office or presence in
 1086  the market served. In awarding the contract, preference must be
 1087  given to brokers who that are licensed in this state under
 1088  chapter 475 and who that have 3 or more years of experience in
 1089  the market served. The contract may be made with up to three
 1090  tenant brokers in order to serve the marketplace in the north,
 1091  central, and south areas of the state.
 1092         2. Each contracted tenant broker works shall work under the
 1093  direction, supervision, and authority of the state agency,
 1094  subject to the rules governing lease procurements.
 1095         3. The department provides shall provide training for the
 1096  awarded tenant brokers concerning the rules governing the
 1097  procurement of leases.
 1098         4. Tenant brokers must comply with all applicable
 1099  provisions of s. 475.278.
 1100         5. Real estate consultants and tenant brokers are shall be
 1101  compensated by the state agency, subject to the provisions of
 1102  the term contract, and such compensation is subject to
 1103  appropriation by the Legislature. A real estate consultant or
 1104  tenant broker may not receive compensation directly from a
 1105  lessor for services that are rendered under the term contract.
 1106  Moneys paid by a lessor to the state agency under a facility
 1107  leasing arrangement are not subject to the charges imposed under
 1108  s. 215.20. All terms relating to the compensation of the real
 1109  estate consultant or tenant broker must shall be specified in
 1110  the term contract and may not be supplemented or modified by the
 1111  state agency using the contract.
 1112         6. The department conducts shall conduct periodic customer
 1113  satisfaction surveys.
 1114         7. Each state agency reports shall report the following
 1115  information to the department:
 1116         a. The number of leases that adhere to the goal of the
 1117  workspace-management initiative of 180 square feet per full-time
 1118  employee FTE.
 1119         b. The quality of space leased and the adequacy of tenant
 1120  improvement funds.
 1121         c. The timeliness of lease procurement, measured from the
 1122  date of the agency’s request to the finalization of the lease.
 1123         d. Whether cost-benefit analyses were performed before
 1124  execution of the lease in order to ensure that the lease is in
 1125  the best interest of the state.
 1126         e. The lease costs compared to market rates for similar
 1127  types and classifications of space according to the official
 1128  classifications of the Building Owners and Managers Association.
 1129         Section 13. Subsection (12) of section 287.012, Florida
 1130  Statutes, is amended to read:
 1131         287.012 Definitions.—As used in this part, the term:
 1132         (12) “Exceptional purchase” means any purchase of
 1133  commodities or contractual services excepted by law or rule from
 1134  the requirements for competitive solicitation, including, but
 1135  not limited to, purchases from a single source; purchases upon
 1136  receipt of fewer less than two responsive bids, proposals, or
 1137  replies; purchases made by an agency, after receiving approval
 1138  from the department, from a contract procured, pursuant to s.
 1139  287.057(1), or by another agency; and purchases made without
 1140  advertisement in the manner required under by s. 287.044(1)(a)
 1141  287.042(3)(b).
 1142         Section 14. Paragraph (a) of subsection (2) of section
 1143  402.7305, Florida Statutes, is amended to read:
 1144         402.7305 Department of Children and Family Services;
 1145  procurement of contractual services; contract management.—
 1146         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1147         (a) Notwithstanding s. 287.057(3)(f)8. 287.057(3)(f)12., if
 1148  whenever the department intends to contract with a public
 1149  postsecondary institution to provide a service, the department
 1150  must allow all public postsecondary institutions in this state
 1151  which that are accredited by the Southern Association of
 1152  Colleges and Schools to bid on the contract. Thereafter,
 1153  notwithstanding any other provision of law to the contrary, if a
 1154  public postsecondary institution intends to subcontract for any
 1155  service awarded in the contract, the subcontracted service must
 1156  be procured by competitive procedures.
 1157         Section 15. Subsection (3) of section 427.0135, Florida
 1158  Statutes, is amended to read:
 1159         427.0135 Purchasing agencies; duties and responsibilities.
 1160  Each purchasing agency, in carrying out the policies and
 1161  procedures of the commission, shall:
 1162         (3) Not procure transportation disadvantaged services
 1163  without initially negotiating with the commission, as provided
 1164  in s. 287.057(3)(f)8. 287.057(3)(f)12., or unless otherwise
 1165  authorized by statute. If the purchasing agency, after
 1166  consultation with the commission, determines that it cannot
 1167  reach mutually acceptable contract terms with the commission,
 1168  the purchasing agency may contract for the same transportation
 1169  services provided in a more cost-effective manner and of
 1170  comparable or higher quality and standards. The Medicaid agency
 1171  shall implement this subsection in a manner consistent with s.
 1172  409.908(18) and as otherwise limited or directed by the General
 1173  Appropriations Act.
 1174         Section 16. Subsection (2) of section 946.515, Florida
 1175  Statutes, is amended to read:
 1176         946.515 Use of goods and services produced in correctional
 1177  work programs.—
 1178         (2) A No similar product or service of comparable price and
 1179  quality found necessary for use by any state agency may not be
 1180  purchased from any source other than the corporation if the
 1181  corporation certifies that the product is manufactured by, or
 1182  the service is provided by, inmates and the product or service
 1183  meets the comparable performance specifications and comparable
 1184  price and quality requirements as specified under s.
 1185  287.042(1)(c) 287.042(1)(f) or as determined by an individual
 1186  agency as provided in this section. The purchasing authority of
 1187  any such state agency may make reasonable determinations of
 1188  need, price, and quality with reference to products or services
 1189  available from the corporation. In the event of a dispute
 1190  between the corporation and a any purchasing authority based
 1191  upon price or quality under this section or s. 287.042(1)(c)
 1192  287.042(1)(f), either party may request a hearing with the
 1193  Department of Management Services and, if not resolved, either
 1194  party may request a proceeding pursuant to ss. 120.569 and
 1195  120.57, which shall be referred to the Division of
 1196  Administrative Hearings within 60 days after such request, to
 1197  resolve any dispute under this section. A No party is not
 1198  entitled to any appeal pursuant to s. 120.68.
 1199         Section 17. Procurement review and report.—
 1200         (1) It is the policy of this state to promote the effective
 1201  procurement of goods, services, and facilities by and for the
 1202  executive branch of state government through the following:
 1203         (a) Establishment of policies, procedures, and practices
 1204  that require the state to procure goods, services, and
 1205  facilities in a timely manner, of requisite quality, and at the
 1206  lowest reasonable cost, using competitive bidding to the maximum
 1207  extent possible.
 1208         (b) Improvement in the quality, efficiency, economy, and
 1209  performance of organizations and personnel involved in the
 1210  procurement of goods, services, and facilities by the state.
 1211         (c) Elimination of unnecessary, overlapping, or duplication
 1212  of procurement and related activities, such as in contract
 1213  administration.
 1214         (d) Elimination of unnecessary or redundant requirements
 1215  placed on contractors or on officials in charge of state
 1216  procurement procedures.
 1217         (e) Identification of gaps, omissions, or inconsistencies
 1218  in state laws, rules, and directives relating to state
 1219  procurement which should be brought to the attention of the
 1220  Legislature.
 1221         (f) Attainment of greater uniformity in and simplification
 1222  of procurement procedures, whenever appropriate.
 1223         (g) Coordination of the procurement policies and programs
 1224  of the various state agencies, whenever possible.
 1225         (h) Conformation of procurement policies and programs to
 1226  other successfully established state policies and programs,
 1227  whenever appropriate.
 1228         (i) Minimization of the possible disruptive effects of
 1229  state procurement on particular industries, areas, or
 1230  occupations.
 1231         (j) Improvement of training with respect to, and the
 1232  understanding of, the laws and policies of the state relating to
 1233  state procurement, not only within state government but on the
 1234  part of organizations and individuals doing business with the
 1235  state.
 1236         (k) Promotion of fair dealing and equitable relationships
 1237  among the parties to state contracting.
 1238         (l) Promotion of economy, efficiency, and effectiveness in
 1239  state procurement organizations, operations, and the uniform
 1240  reporting of procurement activities by any means that the Chief
 1241  Financial Officer deems beneficial and appropriate.
 1242         (m) Special consideration given to the procurement laws,
 1243  policies, procedures, practices, organization, staffing,
 1244  leadership, and controls of the procurement processes of the
 1245  Federal Government and other states.
 1246         (n) Promotion of economy, efficiency, and effectiveness in
 1247  procurement, contract management, and project management
 1248  operations.
 1249         (2) In keeping with the policies expressed in subsection
 1250  (1), the Chief Financial Officer shall review and investigate:
 1251         (a) All current state laws that govern the state
 1252  procurement of goods, services, and facilities;
 1253         (b) The procurement policies, rules, procedures, and
 1254  practices followed by the state agencies, boards, commissions,
 1255  offices, and other instrumentalities of the executive branch of
 1256  state government;
 1257         (c) The organization and management processes involved in
 1258  the state procurement of goods, services, and facilities before
 1259  the award of a state procurement contract, during the
 1260  solicitation of bids, the evaluation, and the negotiation of a
 1261  contract, and subsequent to the award of the contract to
 1262  determine the extent to which these organization and management
 1263  processes facilitate the legislative policy set forth in this
 1264  act; and
 1265         (d) Any other areas that the Chief Financial Officer deems
 1266  relevant to facilitating the policies expressed in subsection
 1267  (1).
 1268         (3) In order to accomplish the procurement review directed
 1269  by this section, the Chief Financial Officer may:
 1270         (a) Acquire information directly from the head of any state
 1271  department or agency for the purpose of conducting this review.
 1272  All departments and agencies shall cooperate with the Chief
 1273  Financial Officer and furnish all information requested to the
 1274  extent permitted by law.
 1275         (b) Procure the services of experts and consultants.
 1276         (c) Contract with private organizations and nonprofit
 1277  institutions to carry out studies and prepare reports to
 1278  facilitate the review.
 1279         (4) By December 31, 2012, the Chief Financial Officer shall
 1280  submit to the Governor, the President of the Senate, and the
 1281  Speaker of the House of Representatives a report of findings and
 1282  recommendations for changes in statutes, rules, policies,
 1283  procedures, and organization necessary to carry out the policies
 1284  set forth in this act.
 1285         Section 18. The Legislature recognizes the need to reform
 1286  the purchasing cycle, from the development of a purchasing
 1287  agreement to the payment for goods or services provided to the
 1288  state. Therefore, chapter 287, Florida Statutes, is repealed
 1289  effective July 30, 2014.
 1290         Section 19. (1) For the 2012-2013 fiscal year, the sum of
 1291  $400,000 in nonrecurring funds is appropriated from the
 1292  Administrative Trust Fund in the Department of Financial
 1293  Services to contract for the Chief Financial Officer’s review of
 1294  the state’s procurement process.
 1295         (2) For the 2012-2013 fiscal year, the sum of $400,000 in
 1296  recurring funds from the General Revenue fund and ___ full-time
 1297  equivalent positions and associated salary rate of ___ are
 1298  appropriated to the Chief Financial Officer for the purpose of
 1299  implementing the Chief Financial Officer’s expanded contract
 1300  auditing responsibilities under this act. Funds remaining
 1301  unexpended or unencumbered from this appropriation as of June
 1302  30, 2013, shall revert and be reappropriated for the same
 1303  purpose in the 2013-2014 fiscal year.
 1304         Section 20. This act shall take effect July 1, 2012.