Florida Senate - 2015 SB 574 By Senator Montford 3-00643-15 2015574__ 1 A bill to be entitled 2 An act relating to government procurement; amending s. 3 287.012, F.S.; revising the term “eligible user”; 4 defining the term “reverse auction”; amending s. 5 287.057, F.S.; requiring the Department of Management 6 Services to maintain a program for reverse auctions; 7 authorizing the department to contract for equipment 8 and services necessary to implement reverse auctions; 9 requiring the department to adopt certain rules; 10 authorizing the department to impose and collect fees 11 for use of the reverse auction program; requiring the 12 department to compensate a provider for managing a 13 reverse auction website under specified conditions; 14 amending s. 570.07, F.S.; revising the functions, 15 powers, and duties of the Department of Agriculture 16 and Consumer Services to conform to changes made by 17 the act; amending s. 1006.27, F.S.; authorizing the 18 Department of Education to use reverse auctions and 19 other online procurement programs in assisting 20 district school boards with transportation services 21 contracts; requiring the State Board of Education to 22 adopt certain rules; amending s. 1010.04, F.S.; 23 authorizing the Board of Governors to adopt 24 regulations establishing procedures governing a state 25 university’s participation in reverse auctions and 26 other online procurement programs; reenacting ss. 27 120.57(3)(g) and 283.33(3), F.S., relating to 28 procedures for a protest of a contract solicitation or 29 award and contracts for printing of publications, 30 respectively, to incorporate the amendments made to s. 31 287.012, F.S., in references thereto; reenacting s. 32 627.351(6)(e), F.S., relating to Citizens Property 33 Insurance Corporation, to incorporate the amendments 34 made to s. 287.057, F.S., in a reference thereto; 35 providing an effective date. 36 37 Be It Enacted by the Legislature of the State of Florida: 38 39 Section 1. Subsection (11) of section 287.012, Florida 40 Statutes, is amended, present subsections (28) and (29) are 41 redesignated as subsections (29) and (30), respectively, and a 42 new subsection (28) is added to that section, to read: 43 287.012 Definitions.—As used in this part, the term: 44 (11) “Eligible user” means any person or entity authorized 45 by the department pursuant to rule to purchase from state term 46 contracts,orto use the online procurement system, or 47 participate in reverse auctions. 48 (28) “Reverse auction” means a procurement of commodities 49 or contractual services conducted on a centralized website that 50 uses third-party software and is jointly managed by an approved 51 vendor and an agency or other governmental entity using the 52 procurement processes in s. 287.057 or other applicable law. 53 Eligible users are allowed to submit bids electronically in real 54 time through the website in response to a competitive 55 solicitation. 56 Section 2. Subsection (22) of section 287.057, Florida 57 Statutes, is amended to read: 58 287.057 Procurement of commodities or contractual 59 services.— 60 (22) The department, in consultation with the Chief 61 Financial Officer and the Agency for State Technology, shall 62 maintain a program for online procurement of commodities and 63 contractual services and reverse auctions. To enable the state 64 to promote open competition and leverage its buying power, 65 agencies shall participate in the online procurement program and 66 reverse auctions, and eligible users may participate in either 67theprogram. Only vendors prequalified as meeting mandatory 68 requirements and qualifications criteria may participate in 69 online procurement and reverse auctions. 70 (a) The department, in consultation with the Agency for 71 State Technology and in compliance with the standards of the 72 agency, may contract for equipment and services necessary to 73 develop and implement online procurement and reverse auctions. 74 (b) The department shall adopt rules to administer the 75 program for online procurement and reverse auctions. The rules 76 must include, but not be limited to: 77 1. Determining the requirements and qualification criteria 78 for prequalifying vendors. 79 2. Establishing the procedures for conducting online 80 procurement and reverse auction events. 81 3. Establishing the criteria for eligible commodities and 82 contractual services. 83 4. Establishing the procedures for providing access to 84 online procurement and reverse auction events. 85 5. Determining the criteria warranting any exceptions to 86 participation in the online procurement program and reverse 87 auctions. 88 (c) The department may impose and shall collect all fees 89 for the use of the online procurement systems and reverse 90 auctions. 91 1. The fees may be imposed on an individual transaction 92 basis or as a fixed percentage of the cost savings generated. At 93 a minimum, the fees must be set in an amount sufficient to cover 94 the projected costs of the services, including administrative 95 and project service costs in accordance with the policies of the 96 department. 97 2. If the department contracts with a provider for online 98 procurement or for management of a website that administers 99 reverse auctions, the department, pursuant to appropriation, 100 shall compensate the provider from the fees after the department 101 has satisfied all ongoing costs. The provider shall report 102 transaction data to the department each month so that the 103 department may determine the amount due and payable to the 104 department from each vendor. 105 3. All fees that are due and payable to the state on a 106 transactional basis or as a fixed percentage of the cost savings 107 generated are subject to s. 215.31 and must be remitted within 108 40 days after receipt of payment for which the fees are due. For 109 fees that are not remitted within 40 days, the vendor shall pay 110 interest at the rate established under s. 55.03(1) on the unpaid 111 balance from the expiration of the 40-day period until the fees 112 are remitted. 113 4. All fees and surcharges collected under this paragraph 114 shall be deposited in the Operating Trust Fund as provided by 115 law. 116 Section 3. Subsection (42) of section 570.07, Florida 117 Statutes, is amended to read: 118 570.07 Department of Agriculture and Consumer Services; 119 functions, powers, and duties.—The department shall have and 120 exercise the following functions, powers, and duties: 121 (42) Notwithstanding the provisions of s. 287.057(22) that 122 require all agencies to use the online procurement program or 123 reverse auctionssystemdeveloped by the Department of 124 Management Services, the department may continue to use its own 125 online system. However, vendors usingutilizingsuch system are 126shall beprequalified as meeting mandatory requirements and 127 qualifications and shall remit fees pursuant to s. 287.057(22), 128 and any rules implementing s. 287.057. 129 Section 4. Subsection (1) of section 1006.27, Florida 130 Statutes, is amended to read: 131 1006.27 Pooling of school buses and related purchases by 132 district school boards; transportation services contracts.— 133 (1) The department shall assist district school boards in 134 securing school buses, contractual needs, equipment, and 135 supplies at as reasonable prices as possible by providing a plan 136 under which district school boards may voluntarily pool their 137 bids for such purchases. The department shall prepare bid forms 138 and specifications, obtain quotations of prices and make such 139 information available to district school boards in order to 140 facilitate this service. The service may also include the use of 141 reverse auctions as defined in s. 287.012 or other online 142 procurement programs. District school boards from time to time, 143 as prescribed by State Board of Education rule, shall furnish 144 the department with information concerning the prices paid for 145 such items and the department shall furnish to district school 146 boards periodic information concerning the lowest prices at 147 which school buses, equipment, and related supplies are 148 available based upon comparable specifications. The State Board 149 of Education shall adopt rules establishing procedures for the 150 use of reverse auctions or other online procurement programs by 151 district school boards. 152 Section 5. Paragraph (b) of subsection (4) of section 153 1010.04, Florida Statutes, is amended to read: 154 1010.04 Purchasing.— 155 (4) 156 (b) The Board of Governors may, by regulation, provide for 157 alternative procedures, including reverse auctions as defined in 158 s. 287.012 or other online procurement programs, for state 159 universities for bidding or purchasing in cases in which the 160 character of the item requested renders competitive bidding 161 impractical. 162 Section 6. Paragraph (g) of subsection (3) of s. 120.57 and 163 subsection (3) of s. 283.33, Florida Statutes, are reenacted for 164 the purpose of incorporating the amendments made by this act to 165 s. 287.012, Florida Statutes, in references thereto. 166 Section 7. Paragraph (e) of subsection (6) of s. 627.351, 167 Florida Statutes, is reenacted for the purpose of incorporating 168 the amendments made by this act to s. 287.057, Florida Statutes, 169 in a reference thereto. 170 Section 8. This act shall take effect July 1, 2015.