Bill Amendment: FL S1616 | 2021 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Agency Contracts for Commodities and Contractual Services
Status: 2021-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1079 (Ch. 2021-225), SB 2502 (Ch. 2021-37) [S1616 Detail]
Download: Florida-2021-S1616-Senate_Committee_Amendment_409402.html
Bill Title: Agency Contracts for Commodities and Contractual Services
Status: 2021-04-28 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1079 (Ch. 2021-225), SB 2502 (Ch. 2021-37) [S1616 Detail]
Download: Florida-2021-S1616-Senate_Committee_Amendment_409402.html
Florida Senate - 2021 COMMITTEE AMENDMENT Bill No. SB 1616 Ì409402wÎ409402 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Governmental Oversight and Accountability (Brodeur) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Notwithstanding the expiration date in section 6 106 of chapter 2020-114, Laws of Florida, section 216.1366, 7 Florida Statutes, is reenacted and amended to read: 8 216.1366 Contract terms.— 9 (1) In order to preserve the interest of the state in the 10 prudent expenditure of state funds, each public agency contract 11 for services entered into or amended on or after July 1, 2020, 12 shall authorize the public agency to inspect the: 13 (a) Financial records, papers, and documents of the 14 contractor that are directly related to the performance of the 15 contract or the expenditure of state funds. 16 (b) Programmatic records, papers, and documents of the 17 contractor which the public agency determines are necessary to 18 monitor the performance of the contract or to ensure that the 19 terms of the contract are being met. 20 (2) The contract shall require the contractor to provide 21 such records, papers, and documents requested by the public 22 agency within 10 business days after the request is made. 23(3)This section expires July 1, 2021.24 Section 2. Subsection (16) of section 287.042, Florida 25 Statutes, is amended to read: 26 287.042 Powers, duties, and functions.—The department shall 27 have the following powers, duties, and functions: 28 (16) To evaluate contracts let by the Federal Government, 29 another state, or a political subdivision for the provision of 30 commodities and contract services, and, if it is determined by 31 the Secretary of Management Services in writing to be cost 32 effective andinthe best value tointerest ofthe state, to 33 enter into a written agreement authorizing an agency to make 34 purchases under such contract. 35 Section 3. Subsection (2) of section 287.056, Florida 36 Statutes, is amended, and subsection (4) is added to that 37 section, to read: 38 287.056 Purchases from purchasing agreements and state term 39 contracts.— 40 (2) Agencies and eligible users may use a request for quote 41 to obtain written pricing or services information from a state 42 term contract vendor for commodities or contractual services 43 available on state term contract from that vendor. The purpose 44 of a request for quote is to determine whether a price, term, or 45 condition more favorable to the agency or eligible user than 46 that provided in the state term contract is available. If an 47 agency issues a request for quote for contractual services for 48 any contract with 100 vendors or fewer, the agency must issue a 49 request for quote to all vendors approved to provide such 50 contractual services. For any contract with more than 100 51 vendors, the agency must issue a request for quote to a minimum 52 of 100 vendors approved to provide such contractual services. 53 Use of a request for quote does not constitute a decision or 54 intended decision that is subject to protest under s. 120.57(3). 55 (4) A firm or individual placed on the suspended vendor 56 list pursuant to s. 287.1351 or placed on a disqualified vendor 57 list pursuant to s. 287.133 or s. 287.134 is immediately 58 disqualified from state term contract eligibility. 59 Section 4. Present subsections (4) through (16) and (17) 60 through (23) of section 287.057, Florida Statutes, are 61 redesignated as subsections (5) through (17) and (19) through 62 (25), respectively, new subsections (4) and (18) and subsection 63 (26) are added to that section, and paragraph (c) of subsection 64 (3) and present subsections (13) through (16) of that section 65 are amended, to read: 66 287.057 Procurement of commodities or contractual 67 services.— 68 (3) If the purchase price of commodities or contractual 69 services exceeds the threshold amount provided in s. 287.017 for 70 CATEGORY TWO, purchase of commodities or contractual services 71 may not be made without receiving competitive sealed bids, 72 competitive sealed proposals, or competitive sealed replies 73 unless: 74 (c) Commodities or contractual services available only from 75 a single source may be excepted from the competitive 76 solicitation requirements. If an agency believes that 77 commodities or contractual services are available only from a 78 single source, the agency shall electronically post a 79 description of the commodities or contractual services sought 80 for at least 157business days. The description must include a 81 request that prospective vendors provide information regarding 82 their ability to supply the commodities or contractual services 83 described. If it is determined in writing by the agency, after 84 reviewing any information received from prospective vendors that 85 the commodities or contractual services are available only from 86 a single source, the agency shall provide notice of its intended 87 decision to enter a single-source purchase contract in the 88 manner specified in s. 120.57(3). Each agency shall report all 89 such actions to the department on a quarterly basis in a manner 90 and form prescribed by the department, and the department shall 91 report such information to the Governor, the President of the 92 Senate, and the Speaker of the House of Representatives no later 93 than January 1, 2022, and each January 1 thereafter. 94 (4) A state agency may not initiate a competitive 95 solicitation for a product or service if the completion of such 96 competitive solicitation would: 97 (a) Require a change in law; or 98 (b) Require a change to the agency’s budget other than a 99 transfer authorized in s. 216.292(2) or (3), unless the 100 initiation of such competitive solicitation is specifically 101 authorized in law, in the General Appropriations Act, or by the 102 Legislative Budget Commission. 103 (c) This subsection does not apply to a competitive 104 solicitation for which the agency head certifies that a valid 105 emergency exists. 106 (14)(13)Contracts for commodities or contractual services 107 may be renewed for a period that may not exceed 3 years or the 108 term of the original contract, whichever is longer. Renewal of a 109 contract for commodities or contractual services must be in 110 writing and is subject to the same terms and conditions set 111 forth in the initial contract and any written amendments signed 112 by the parties. If the commodity or contractual service is 113 purchased as a result of the solicitation of bids, proposals, or 114 replies, the price of the commodity or contractual service to be 115 renewed must be specified in the bid, proposal, or reply, except 116 that an agency may negotiate lower pricing. A renewal contract 117 may not include any compensation for costs associated with the 118 renewal. Renewals are contingent upon satisfactory performance 119 evaluations by the agency and subject to the availability of 120 funds. Exceptional purchase contracts pursuant to paragraphs 121 (3)(a) and (c) may not be renewed. With the exception of 122 subsection (11)(10), if a contract amendment results in a 123 longer contract term or increased payments, a state agency may 124 not renew or amend a contract for the outsourcing of a service 125 or activity that has an original term value exceeding $5$10126 million before submitting a written report concerning contract 127 performance to the Governor, the President of the Senate, and 128 the Speaker of the House of Representatives at least 90 days 129 before execution of the renewal or amendment. 130 (15)(a)(14)For each contractual services contract, the 131 agency shall designate an employee to function as contract 132 manager who is responsible for enforcing performance of the 133 contract terms and conditions and serve as a liaison between 134withthe contractor and the agency. The contract manager may not 135 be an individual who has been employed, within the previous 5 136 years, by the vendor awarded the contractual services contract. 137 The primary responsibilities of a contract manager include, but 138 are not limited to: 139 1. Participating in the solicitation development and review 140 of contract documents. 141 2. Monitoring the contractor’s progress and performance to 142 ensure procured products and services conform to the contract 143 requirements and keeping timely records of findings. 144 3. Managing and documenting any changes to the contract 145 through the amendment process authorized by the terms of the 146 contract. 147 4. Monitoring the contract budget to ensure sufficient 148 funds are available throughout the term of the contract. 149 5. Exercising applicable remedies, as appropriate, when a 150 contractor’s performance is deficient. 151 (b)(a)Each contract manager who is responsible for 152 contracts in excess of the threshold amount for CATEGORY TWO 153 must, at a minimum, complete training conducted by the Chief 154 Financial Officer for accountability in contracts and grant 155 management. The Chief Financial Officer shall evaluate such 156 training every 5 years to assess its effectiveness and update 157 the training curriculum. The Chief Financial Officer shall 158 establish and disseminate uniform procedures pursuant to s. 159 17.03(3) to ensure that contractual services have been rendered 160 in accordance with the contract terms before the agency 161 processes the invoice for payment. The procedures must include, 162 but need not be limited to, procedures for monitoring and 163 documenting contractor performance, reviewing and documenting 164 all deliverables for which payment is requested by vendors, and 165 providing written certification by contract managers of the 166 agency’s receipt of goods and services. 167 (c)(b)Each contract manager who is responsible for 168 contracts in excess of $100,000 annually must, in addition to 169 the accountability in contracts and grant management training 170 required in paragraph (b) and within 6 months after being 171 assigned responsibility for such contracts, complete training in 172 contract management and become a certified contract manager. The 173 department is responsible for establishing and disseminating the 174 training and certification requirements for certified contract 175 managers. Training must promote best practices and procedures 176 related to negotiating, managing, and ensuring accountability in 177 agency contracts and grant agreements, which must include the 178 use of case studies based upon previous audits, contracts, and 179 grant agreements. A certified contract manager must complete 180 training every 5 years for certification renewalrequirements181for certification which include completing the training182conducted by the Chief Financial Officer for accountability in183contracts and grant management. Training and certification must 184 be coordinated by the department, and the training must be 185 conducted jointly by the department and the Department of 186 Financial Services. The department shall evaluate such training 187 every 5 years to assess its effectiveness and update the 188 training curriculumTraining must promote best practices and189procedures related to negotiating, managing, and ensuring190accountability in agency contracts and grant agreements, which191must include the use of case studies based upon previous audits,192contracts, and grant agreements. All agency contract managers193must become certified within 24 months after establishment of194the training and certification requirements by the department195and the Department of Financial Services. 196 (d) Each contract manager who is responsible for contracts 197 in excess of $10 million annually must, in addition to the 198 training required in paragraph (b) and the training and 199 certification required in paragraph (c), possess at least 5 200 years of experience managing contracts in excess of $5 million 201 annually. 202 (16)(15)Each agency shall designate at least one employee 203 who shall serve as a contract administrator responsible for 204 maintaining a contract file and financial information on all 205 contractual services contracts and who shall serve as a liaison 206 with the contract managers and the department. For a contract of 207 $500,000 or less annually, the contract administrator may also 208 serve as the contract manager if he or she has completed the 209 required training. For a contract in excess of $500,000 210 annually, the contract administrator may not serve as both the 211 contract administrator and the contract manager. 212 (17)(a)(16)(a)For a contract in excess of the threshold 213 amount provided in s. 287.017 for CATEGORY FOUR, the agency head 214 shall appoint: 215 1. At least three persons to independently evaluate 216 proposals and replies who collectively have experience and 217 knowledge in the program areas and service requirements for the 218 commoditywhich commoditiesor contractual servicesaresought. 219 2. At least three persons to a negotiation team to conduct 220 negotiations during a competitive sealed reply procurement. The 221 negotiation team members mustwhocollectively have experience 222 and knowledge in negotiating contracts, contract procurement, 223 and the program areas and service requirements for the commodity 224which commoditiesor contractual servicesaresought. 225 (b)1. If the value of a contract is in excess of $1 million 226 in any fiscal year, at least one of the persons conducting 227 negotiations must becertified asa certified contract 228 negotiatorbased upon department rules in order to ensure that229certified contract negotiators are knowledgeable about effective230negotiation strategies, capable of successfully implementing231those strategies, and involved appropriately in the procurement232process. At a minimum, the rules must address the qualifications233required for certification, the method of certification, and the234procedure for involving the certified negotiator. 235 2. If the value of a contract is in excess of $10 million 236 in any fiscal year, at least one of the persons conducting 237 negotiations must be a Project Management Professional, as 238 certified by the Project Management Institute. The Project 239 Management Professional shall provide guidance based on his or 240 her experience, education, and competency to lead and direct 241 complex projects. 242 3. The department is responsible for establishing and 243 disseminating the certification and training requirements for 244 certified contract negotiators. Training must ensure that 245 certified contract negotiators are knowledgeable about effective 246 negotiation strategies, capable of successfully implementing 247 those strategies, and involved appropriately in the procurement 248 process. The department shall evaluate such training every 5 249 years in order to assess its effectiveness and update the 250 training curriculum. A certified contract negotiator is required 251 to complete training every 5 years for certification renewal. 252 Qualification requirements for certification must include: 253 a. At least 12 months’ experience as a purchasing agent, 254 contract manager, or contract administrator for an agency or a 255 local governmental entity where at least 50 percent of the 256 designated duties included procuring commodities or contractual 257 services; participating in contract negotiation, contract 258 management, or contract administration; or working as an agency 259 attorney whose duties included providing legal counsel to the 260 agency’s purchasing or contracting staff; and 261 b. Experience during the preceding 5 years in leading at 262 least two federal, state, or local government negotiation teams 263 through a negotiated procurement, or participation in at least 264 three federal, state, or local government-negotiated 265 procurements. 266 (18) Any person who supervises contract administrators or 267 contract or grant managers who meet criteria for certification 268 in subsection (15) shall annually complete public procurement 269 training for supervisors within 12 months after appointment to 270 the supervisory position. The department is responsible for 271 establishing and disseminating the training course content 272 required for supervisors, and training shall commence no later 273 than July 1, 2022. 274 (26)(a) For each contractual services contract in excess of 275 $1 million, the agency head shall establish a continuing 276 oversight team after the contract has been awarded. The agency 277 head shall appoint at least four persons, one of whom must be 278 the certified contract manager, to the continuing oversight 279 team. If the value of the contractual services contract is in 280 excess of $5 million, at least one of the persons on the 281 continuing oversight team must possess at least 5 years of 282 experience in managing contracts of a similar scope or size. If 283 the value of the contractual services contract is in excess of 284 $20 million, the continuing oversight team shall consist of at 285 least five persons, at least one of the persons on the 286 continuing oversight team must be from a state agency other than 287 the agency or agencies participating in the contract. Members of 288 the continuing oversight team must be employees of the state and 289 must collectively have experience and knowledge in contract 290 management, contract administration, contract enforcement, and 291 the program areas and service requirements for the contractual 292 services purchased. 293 (b)1. For contracts in excess of $1 million, each 294 continuing oversight team must meet at least quarterly. 295 2. For contracts in excess of $10 million, each continuing 296 oversight team must meet at least monthly. A representative of 297 the contractor must be made available to members of the 298 continuing oversight team for at least one meeting every 299 calendar quarter to respond to any questions or requests for 300 information from the continuing oversight team concerning 301 contractor performance. 302 (c)1. Within 30 days after the formation of the continuing 303 oversight team, the continuing oversight team must convene an 304 initial meeting with representatives of the contractor to 305 achieve a mutual understanding of the contract requirements, to 306 provide the contractor with an orientation to the contract 307 management process, and to provide an explanation of the role of 308 the continuing oversight team, contract manager, and contract 309 administrator. 310 2. The continuing oversight team must meet to discuss the 311 status of the contract, the pace of deliverables, the quality of 312 deliverables, contractor responsiveness, and contractor 313 performance. The contract administrator must be present at each 314 meeting with the contract file and all applicable financial 315 information. The continuing oversight team may submit written 316 questions to the contractor concerning any items discussed 317 during a continuing oversight team meeting. The contractor must 318 respond to the team’s questions within 10 business days after 319 receiving the written questions. The questions and responses 320 must be included in the contract file. 321 (d) The continuing oversight team must notify, in writing: 322 1. The agency head and the department of any deficiency in 323 a contractor’s performance which substantially affects the pace 324 of deliverables or the likelihood of the successful completion 325 of the contract. 326 2. The agency head, the department, and the Office of 327 Policy and Budget in the Executive Office of the Governor of any 328 significant change in contract scope or any increase in the cost 329 of the contract which is 5 percent of the planned contract cost 330 or greater within the fiscal year for contractual service 331 contracts of at least $5 million. 332 3. The agency head, the department, the Office of Policy 333 and Budget in the Executive Office of the Governor, and the 334 legislative appropriations committees of any significant change 335 in contract scope or any increase in the cost of the contract 336 which is 5 percent of the planned contract cost or greater 337 within the fiscal year for contractual service contracts of $10 338 million or greater. 339 Section 5. Subsection (7) is added to section 287.058, 340 Florida Statutes, to read: 341 287.058 Contract document.— 342 (7) A contract may not contain a nondisclosure clause that 343 prohibits the contractor from disclosing information relevant to 344 the performance of the contract to members or staff of the 345 Senate or the House of Representatives. 346 Section 6. Section 287.1351, Florida Statutes, is created 347 to read: 348 287.1351 Suspended vendors; state contracts.— 349 (1) As used in this section, the term “vendor” means a 350 person or an entity that provides goods or services to an agency 351 under a contract or submits a bid, proposal, or reply to provide 352 goods or services to an agency. 353 (2)(a) A vendor that is in default on any contract with an 354 agency or has otherwise repeatedly demonstrated a recent 355 inability to fulfill the terms and conditions of previous state 356 contracts or to adequately perform its duties under those 357 contracts may not submit a bid, proposal, or reply to an agency 358 or enter into or renew a contract to provide any goods or 359 services to an agency after its placement, pursuant to this 360 section, on the suspended vendor list. 361 (b) An agency may not accept a bid, proposal, or reply 362 from, or enter into or renew any contract with, a vendor on the 363 suspended vendor list until such vendor has been removed from 364 the suspended vendor list and returned to the vendor list 365 maintained by the department pursuant to s. 287.042(1)(a) and 366 (b) and the vendor has reimbursed the agency for any 367 reprocurement costs. 368 (3) An agency shall notify the department of any vendor 369 that has met the grounds for suspension described in paragraph 370 (2)(a). The agency must provide documentation to the department 371 evidencing the vendor’s default or other grounds for suspension. 372 The department shall review the documentation provided and 373 determine whether good cause exists to remove the vendor from 374 the vendor list and to place it on the suspended vendor list. If 375 good cause exists, the department must notify the vendor in 376 writing of its intent to remove the vendor from the vendor list 377 and of the vendor’s right to an administrative hearing and the 378 applicable procedures and time requirements for any such 379 hearing. If the vendor does not request an administrative 380 hearing, the department must enter a final order removing the 381 vendor from the vendor list. A vendor may not be removed from 382 the vendor list without receiving an individual notice of intent 383 from the department. 384 (4) Within 21 days after receipt of the notice of intent, 385 the vendor may file with the department a petition for a formal 386 hearing pursuant to ss. 120.569 and 120.57 to challenge the 387 department’s decision to remove the vendor from the vendor list. 388 A vendor that fails to timely file a petition in accordance with 389 this subsection is deemed to have waived its right to a hearing, 390 and the department’s decision to remove the vendor from the 391 vendor list becomes final agency action. 392 (5)(a) The department shall place any vendor removed from 393 the vendor list pursuant to this section on the suspended vendor 394 list. One year or more after entry of the final order of its 395 suspension, a suspended vendor may file a petition with the 396 department for removal from the suspended vendor list. The 397 proceeding on the petition must be conducted in accordance with 398 chapter 120. The vendor may be removed from the suspended vendor 399 list if the administrative law judge determines that removal 400 from the list would be in the public interest. In determining 401 whether removal from the list would be in the public interest, 402 the administrative law judge may consider, but is not limited 403 to, whether the suspended vendor has prepared a corrective 404 action plan that addresses the original grounds for default or 405 failure to fulfill the terms and conditions of the contract, 406 reimbursed the agency for any reprocurement costs, or provided 407 additional evidence that the vendor has taken other remedial 408 action. 409 (b) If a petition for removal from the suspended vendor 410 list is denied, the vendor may not petition for another hearing 411 on removal for a period of at least 9 months after the date of 412 the denial. The department may petition for the suspended 413 vendor’s removal before the expiration of such period if, in the 414 department’s discretion, the department determines that removal 415 from the suspended vendor list would be in the public interest. 416 Section 7. Section 287.136, Florida Statutes, is amended to 417 read: 418 287.136 Audit of executed contract documents.— 419 (1) After execution of a contract, the Chief Financial 420 Officer shall perform audits of the executed contract document 421 and contract manager’s records to ensure that adequate internal 422 controls are in place for complying with the terms and 423 conditions of the contract and for the validation and receipt of 424 goods and services. 425 (a)(1)At the conclusion of the audit, the Chief Financial 426 Officer’s designee shall discuss the audit and potential 427 findings with the official whose office is subject to audit. The 428 final audit report shall be submitted to the agency head. 429 (b)(2)Within 30 days after receipt of the final audit 430 report, the agency head shall submit to the Chief Financial 431 Officer or designee his or her written statement of explanation 432 or rebuttal concerning findings requiring corrective action, 433 including corrective action to be taken to preclude a 434 recurrence. 435 (2) Beginning October 1, 2021, and every 3 years 436 thereafter, each agency inspector general shall complete a risk 437 based compliance audit of all contracts executed by the agency 438 for the preceding 3 fiscal years. The audit must include an 439 evaluation of and identify any trend in vendor preference. The 440 audit findings must be submitted to the agency head, the 441 Secretary of the Department of Management Services, and the 442 Governor. 443 Section 8. Subsection (1) of section 43.16, Florida 444 Statutes, is amended to read: 445 43.16 Justice Administrative Commission; membership, powers 446 and duties.— 447 (1) There is hereby created a Justice Administrative 448 Commission, with headquarters located in the state capital. The 449 necessary office space for use of the commission shall be 450 furnished by the proper state agency in charge of state 451 buildings. For purposes of the fees imposed on agencies pursuant 452 to s. 287.057(24)s. 287.057(22), the Justice Administrative 453 Commission shall be exempt from such fees. 454 Section 9. Paragraph (a) of subsection (2) of section 455 215.971, Florida Statutes, is amended to read: 456 215.971 Agreements funded with federal or state 457 assistance.— 458 (2) For each agreement funded with federal or state 459 financial assistance, the state agency shall designate an 460 employee to function as a grant manager who shall be responsible 461 for enforcing performance of the agreement’s terms and 462 conditions and who shall serve as a liaison with the recipient 463 or subrecipient. 464 (a)1. Each grant manager who is responsible for agreements 465 in excess of the threshold amount for CATEGORY TWO under s. 466 287.017 must, at a minimum, complete training conducted by the 467 Chief Financial Officer for accountability in contracts and 468 grant management. 469 2. Effective December 1, 2014, each grant manager 470 responsible for agreements in excess of $100,000 annually must 471 complete the training and become a certified contract manager as 472 provided under s. 287.057(15)s. 287.057(14). All grant managers 473 must become certified contract managers within 24 months after 474 establishment of the training and certification requirements by 475 the Department of Management Services and the Department of 476 Financial Services. 477 Section 10. Paragraph (a) of subsection (3) of section 478 287.0571, Florida Statutes, is amended to read: 479 287.0571 Business case to outsource; applicability.— 480 (3) This section does not apply to: 481 (a) A procurement of commodities and contractual services 482 listed in s. 287.057(3)(d) and (e) and (23)(21). 483 Section 11. Paragraph (b) of subsection (4) of section 484 295.187, Florida Statutes, is amended to read: 485 295.187 Florida Veteran Business Enterprise Opportunity 486 Act.— 487 (4) VENDOR PREFERENCE.— 488 (b) Notwithstanding s. 287.057(12)s. 287.057(11), if a 489 veteran business enterprise entitled to the vendor preference 490 under this section and one or more businesses entitled to this 491 preference or another vendor preference provided by law submit 492 bids, proposals, or replies for procurement of commodities or 493 contractual services which are equal with respect to all 494 relevant considerations, including price, quality, and service, 495 the state agency shall award the procurement or contract to the 496 business having the smallest net worth. 497 Section 12. Paragraph (a) of subsection (1) of section 498 394.47865, Florida Statutes, is amended to read: 499 394.47865 South Florida State Hospital; privatization.— 500 (1) The Department of Children and Families shall, through 501 a request for proposals, privatize South Florida State Hospital. 502 The department shall plan to begin implementation of this 503 privatization initiative by July 1, 1998. 504 (a) Notwithstanding s. 287.057(14)s. 287.057(13), the 505 department may enter into agreements, not to exceed 20 years, 506 with a private provider, a coalition of providers, or another 507 agency to finance, design, and construct a treatment facility 508 having up to 350 beds and to operate all aspects of daily 509 operations within the facility. The department may subcontract 510 any or all components of this procurement to a statutorily 511 established state governmental entity that has successfully 512 contracted with private companies for designing, financing, 513 acquiring, leasing, constructing, and operating major privatized 514 state facilities. 515 Section 13. Paragraph (b) of subsection (2) and subsection 516 (3) of section 402.7305, Florida Statutes, are amended to read: 517 402.7305 Department of Children and Families; procurement 518 of contractual services; contract management.— 519 (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.— 520 (b) When it is in the best interest of a defined segment of 521 its consumer population, the department may competitively 522 procure and contract for systems of treatment or service that 523 involve multiple providers, rather than procuring and 524 contracting for treatment or services separately from each 525 participating provider. The department must ensure that all 526 providers that participate in the treatment or service system 527 meet all applicable statutory, regulatory, service quality, and 528 cost control requirements. If other governmental entities or 529 units of special purpose government contribute matching funds to 530 the support of a given system of treatment or service, the 531 department shall formally request information from those funding 532 entities in the procurement process and may take the information 533 received into account in the selection process. If a local 534 government contributes matching funds to support the system of 535 treatment or contracted service and if the match constitutes at 536 least 25 percent of the value of the contract, the department 537 shall afford the governmental match contributor an opportunity 538 to name an employee as one of the persons required by s. 539 287.057(17)s. 287.057(16)to evaluate or negotiate certain 540 contracts, unless the department sets forth in writing the 541 reason why the inclusion would be contrary to the best interest 542 of the state. Any employee so named by the governmental match 543 contributor shall qualify as one of the persons required by s. 544 287.057(17)s. 287.057(16). A governmental entity or unit of 545 special purpose government may not name an employee as one of 546 the persons required by s. 287.057(17)s. 287.057(16)if it, or 547 any of its political subdivisions, executive agencies, or 548 special districts, intends to compete for the contract to be 549 awarded. The governmental funding entity or contributor of 550 matching funds must comply with all procurement procedures set 551 forth in s. 287.057 when appropriate and required. 552 (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The 553 Department of Children and Families shall review the time period 554 for which the department executes contracts and shall execute 555 multiyear contracts to make the most efficient use of the 556 resources devoted to contract processing and execution. Whenever 557 the department chooses not to use a multiyear contract, a 558 justification for that decision must be contained in the 559 contract. Notwithstanding s. 287.057(15)s. 287.057(14), the 560 department is responsible for establishing a contract management 561 process that requires a member of the department’s Senior 562 Management or Selected Exempt Service to assign in writing the 563 responsibility of a contract to a contract manager. The 564 department shall maintain a set of procedures describing its 565 contract management process which must minimally include the 566 following requirements: 567 (a) The contract manager shall maintain the official 568 contract file throughout the duration of the contract and for a 569 period not less than 6 years after the termination of the 570 contract. 571 (b) The contract manager shall review all invoices for 572 compliance with the criteria and payment schedule provided for 573 in the contract and shall approve payment of all invoices before 574 their transmission to the Department of Financial Services for 575 payment. 576 (c) The contract manager shall maintain a schedule of 577 payments and total amounts disbursed and shall periodically 578 reconcile the records with the state’s official accounting 579 records. 580 (d) For contracts involving the provision of direct client 581 services, the contract manager shall periodically visit the 582 physical location where the services are delivered and speak 583 directly to clients receiving the services and the staff 584 responsible for delivering the services. 585 (e) The contract manager shall meet at least once a month 586 directly with the contractor’s representative and maintain 587 records of such meetings. 588 (f) The contract manager shall periodically document any 589 differences between the required performance measures and the 590 actual performance measures. If a contractor fails to meet and 591 comply with the performance measures established in the 592 contract, the department may allow a reasonable period for the 593 contractor to correct performance deficiencies. If performance 594 deficiencies are not resolved to the satisfaction of the 595 department within the prescribed time, and if no extenuating 596 circumstances can be documented by the contractor to the 597 department’s satisfaction, the department must terminate the 598 contract. The department may not enter into a new contract with 599 that same contractor for the services for which the contract was 600 previously terminated for a period of at least 24 months after 601 the date of termination. The contract manager shall obtain and 602 enforce corrective action plans, if appropriate, and maintain 603 records regarding the completion or failure to complete 604 corrective action items. 605 (g) The contract manager shall document any contract 606 modifications, which shall include recording any contract 607 amendments as provided for in this section. 608 (h) The contract manager shall be properly trained before 609 being assigned responsibility for any contract. 610 Section 14. Subsection (2) of section 408.045, Florida 611 Statutes, is amended to read: 612 408.045 Certificate of need; competitive sealed proposals.— 613 (2) The agency shall make a decision regarding the issuance 614 of the certificate of need in accordance with the provisions of 615 s. 287.057(17)s. 287.057(16), rules adopted by the agency 616 relating to intermediate care facilities for the developmentally 617 disabled, and the criteria in s. 408.035, as further defined by 618 rule. 619 Section 15. Subsection (42) of section 570.07, Florida 620 Statutes, is amended to read: 621 570.07 Department of Agriculture and Consumer Services; 622 functions, powers, and duties.—The department shall have and 623 exercise the following functions, powers, and duties: 624 (42) Notwithstanding the provisions of s. 287.057(24)s.625287.057(22)that require all agencies to use the online 626 procurement system developed by the Department of Management 627 Services, the department may continue to use its own online 628 system. However, vendors utilizing such system shall be 629 prequalified as meeting mandatory requirements and 630 qualifications and shall remit fees pursuant to s. 287.057(24) 631s. 287.057(22), and any rules implementing s. 287.057. 632 Section 16. Paragraph (e) of subsection (6) of section 633 627.351, Florida Statutes, is amended to read: 634 627.351 Insurance risk apportionment plans.— 635 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 636 (e) The corporation is subject to s. 287.057 for the 637 purchase of commodities and contractual services except as 638 otherwise provided in this paragraph. Services provided by 639 tradepersons or technical experts to assist a licensed adjuster 640 in the evaluation of individual claims are not subject to the 641 procurement requirements of this section. Additionally, the 642 procurement of financial services providers and underwriters 643 must be made pursuant to s. 627.3513. Contracts for goods or 644 services valued at or more than $100,000 are subject to approval 645 by the board. 646 1. The corporation is an agency for purposes of s. 287.057, 647 except that, for purposes of s. 287.057(24)s. 287.057(22), the 648 corporation is an eligible user. 649 a. The authority of the Department of Management Services 650 and the Chief Financial Officer under s. 287.057 extends to the 651 corporation as if the corporation were an agency. 652 b. The executive director of the corporation is the agency 653 head under s. 287.057, except for resolution of bid protests for 654 which the board would serve as the agency head. 655 2. The corporation must provide notice of a decision or 656 intended decision concerning a solicitation, contract award, or 657 exceptional purchase by electronic posting. Such notice must 658 contain the following statement: “Failure to file a protest 659 within the time prescribed in this section constitutes a waiver 660 of proceedings.” 661 a. A person adversely affected by the corporation’s 662 decision or intended decision to award a contract pursuant to s. 663 287.057(1) or (3)(c) who elects to challenge the decision must 664 file a written notice of protest with the executive director of 665 the corporation within 72 hours after the corporation posts a 666 notice of its decision or intended decision. For a protest of 667 the terms, conditions, and specifications contained in a 668 solicitation, including provisions governing the methods for 669 ranking bids, proposals, replies, awarding contracts, reserving 670 rights of further negotiation, or modifying or amending any 671 contract, the notice of protest must be filed in writing within 672 72 hours after posting the solicitation. Saturdays, Sundays, and 673 state holidays are excluded in the computation of the 72-hour 674 time period. 675 b. A formal written protest must be filed within 10 days 676 after the date the notice of protest is filed. The formal 677 written protest must state with particularity the facts and law 678 upon which the protest is based. Upon receipt of a formal 679 written protest that has been timely filed, the corporation must 680 stop the solicitation or contract award process until the 681 subject of the protest is resolved by final board action unless 682 the executive director sets forth in writing particular facts 683 and circumstances that require the continuance of the 684 solicitation or contract award process without delay in order to 685 avoid an immediate and serious danger to the public health, 686 safety, or welfare. 687 (I) The corporation must provide an opportunity to resolve 688 the protest by mutual agreement between the parties within 7 689 business days after receipt of the formal written protest. 690 (II) If the subject of a protest is not resolved by mutual 691 agreement within 7 business days, the corporation’s board must 692 transmit the protest to the Division of Administrative Hearings 693 and contract with the division to conduct a hearing to determine 694 the merits of the protest and to issue a recommended order. The 695 contract must provide for the corporation to reimburse the 696 division for any costs incurred by the division for court 697 reporters, transcript preparation, travel, facility rental, and 698 other customary hearing costs in the manner set forth in s. 699 120.65(9). The division has jurisdiction to determine the facts 700 and law concerning the protest and to issue a recommended order. 701 The division’s rules and procedures apply to these proceedings; 702 the division’s applicable bond requirements do not apply. The 703 protest must be heard by the division at a publicly noticed 704 meeting in accordance with procedures established by the 705 division. 706 c. In a protest of an invitation-to-bid or request-for 707 proposals procurement, submissions made after the bid or 708 proposal opening which amend or supplement the bid or proposal 709 may not be considered. In protesting an invitation-to-negotiate 710 procurement, submissions made after the corporation announces 711 its intent to award a contract, reject all replies, or withdraw 712 the solicitation that amends or supplements the reply may not be 713 considered. Unless otherwise provided by law, the burden of 714 proof rests with the party protesting the corporation’s action. 715 In a competitive-procurement protest, other than a rejection of 716 all bids, proposals, or replies, the administrative law judge 717 must conduct a de novo proceeding to determine whether the 718 corporation’s proposed action is contrary to the corporation’s 719 governing statutes, the corporation’s rules or policies, or the 720 solicitation specifications. The standard of proof for the 721 proceeding is whether the corporation’s action was clearly 722 erroneous, contrary to competition, arbitrary, or capricious. In 723 any bid-protest proceeding contesting an intended corporation 724 action to reject all bids, proposals, or replies, the standard 725 of review by the board is whether the corporation’s intended 726 action is illegal, arbitrary, dishonest, or fraudulent. 727 d. Failure to file a notice of protest or failure to file a 728 formal written protest constitutes a waiver of proceedings. 729 3. The board, acting as agency head, shall consider the 730 recommended order of an administrative law judge in a public 731 meeting and take final action on the protest. Any further legal 732 remedy lies with the First District Court of Appeal. 733 Section 17. This act shall take effect July 1, 2021. 734 735 ================= T I T L E A M E N D M E N T ================ 736 And the title is amended as follows: 737 Delete everything before the enacting clause 738 and insert: 739 A bill to be entitled 740 An act relating to agency contracts for commodities 741 and contractual services; reenacting and amending s. 742 216.1366, F.S.; abrogating the scheduled expiration of 743 provisions relating to certain public agency contracts 744 for services; amending s. 287.042, F.S.; providing 745 that the Department of Management Services may enter 746 into an agreement authorizing an agency to make 747 purchases under certain contracts if the Secretary of 748 Management Services makes a certain determination; 749 amending s. 287.056, F.S.; providing that an agency 750 must issue a request for quote to certain approved 751 vendors when it issues certain requests for quote for 752 contractual services; providing for the 753 disqualification of certain firms or individuals from 754 state term contract eligibility; amending s. 287.057, 755 F.S.; revising the period of time during which an 756 agency must electronically post a description of 757 certain services in certain circumstances; requiring 758 an agency to periodically report certain actions to 759 the department in a specified manner and form; 760 requiring the department to annually report certain 761 information to the Governor and the Legislature by a 762 specified date; prohibiting an agency from initiating 763 a competitive solicitation in certain circumstances; 764 providing applicability; revising the maximum value of 765 certain contracts that may not be renewed or amended 766 by state agency before submitting a written report to 767 the Governor and the Legislature; requiring the agency 768 to designate a contract manager to serve as a liaison 769 between the contractor and the agency; prohibiting 770 certain individuals from serving as a contract 771 manager; providing the responsibilities of a contract 772 manager; requiring the Chief Financial Officer to 773 evaluate certain training at certain intervals; 774 requiring that certain contract managers complete 775 training and certification within a specified 776 timeframe; requiring the department to establish and 777 disseminate certain training and certification 778 requirements; requiring the department to evaluate 779 certain training at certain intervals; requiring 780 certain contract managers to possess certain 781 experience in managing contracts; authorizing a 782 contract administrator to also serve as a contract 783 manager in certain circumstances; providing that 784 evaluations of proposals and replies must be conducted 785 independently; providing for specified teams to 786 conduct certain negotiations; requiring a Project 787 Management Professional to provide guidance based on 788 certain qualifications; providing qualification 789 requirements for contract negotiator certification; 790 requiring supervisors of contract administrators or 791 contract and grant managers meeting certain criteria 792 to complete training within a specified period; 793 providing that the department is responsible for 794 establishing and disseminating supervisor training by 795 a certain date; providing for a continuing oversight 796 team in certain circumstances; providing requirements 797 for continuing oversight team members and meetings; 798 requiring a continuing oversight team to provide 799 notice of certain deficiencies and changes in contract 800 scope to certain entities; amending s. 287.058, F.S.; 801 prohibiting a contract document for certain 802 contractual services from containing a certain 803 nondisclosure clause; creating s. 287.1351, F.S.; 804 defining the term “vendor”; prohibiting certain 805 vendors from submitting bids, proposals, or replies 806 to, or entering into or renewing any contract with, an 807 agency; prohibiting an agency from accepting a bid, 808 proposal, or reply from, or entering into a contract 809 with, a suspended vendor until certain conditions are 810 met; requiring an agency to notify the department of, 811 and provide certain information regarding, any such 812 vendors; requiring the department to review any vendor 813 reported by an agency; requiring the department to 814 notify a vendor of any intended removal from the 815 vendor list; specifying administrative remedies and 816 applicable procedures for an affected vendor; 817 requiring the department to place certain vendors on 818 the suspended vendor list; authorizing the removal of 819 a suspended vendor from the suspended vendor list in 820 accordance with specified procedures; specifying 821 requirements and limitations; amending s. 287.136, 822 F.S.; requiring each agency inspector general to 823 complete certain audits of executed contracts at 824 certain intervals; amending ss. 43.16, 215.971, 825 287.0571, 295.187, 394.47865, 402.7305, 408.045, 826 570.07, and 627.351, F.S.; conforming cross-references 827 to changes made by the act; providing an effective 828 date.