Bill Text: FL S1616 | 2021 | Regular Session | Comm Sub
Bill Title: Agency Contracts for Commodities and Contractual Services
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 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-Comm_Sub.html
Florida Senate - 2021 CS for CS for SB 1616 By the Committees on Appropriations; and Governmental Oversight and Accountability; and Senator Brodeur 576-04423-21 20211616c2 1 A bill to be entitled 2 An act relating to agency contracts for commodities 3 and contractual services; reenacting and amending s. 4 216.1366, F.S.; abrogating the scheduled expiration of 5 provisions relating to certain public agency contracts 6 for services; amending s. 287.042, F.S.; providing 7 that the Department of Management Services may enter 8 into an agreement authorizing an agency to make 9 purchases under certain contracts if the Secretary of 10 Management Services makes a certain determination; 11 amending s. 287.056, F.S.; providing that an agency 12 must issue a request for quote to certain approved 13 vendors when it issues certain requests for quote for 14 contractual services; providing for the 15 disqualification of certain firms or individuals from 16 state term contract eligibility; amending s. 287.057, 17 F.S.; revising the period of time during which an 18 agency must electronically post a description of 19 certain commodities or services in certain 20 circumstances; requiring an agency to periodically 21 report certain actions to the department in a 22 specified manner and form; requiring the department to 23 annually report certain information to the Governor 24 and the Legislature by a specified date; prohibiting 25 an agency from initiating a competitive solicitation 26 in certain circumstances; providing applicability; 27 revising the maximum value of certain contracts that 28 may not be renewed or amended by a state agency before 29 submitting a written report to the Governor and the 30 Legislature; requiring the agency to designate a 31 contract manager to serve as a liaison between the 32 contractor and the agency; prohibiting certain 33 individuals from serving as a contract manager; 34 providing the responsibilities of a contract manager; 35 requiring the Chief Financial Officer to evaluate 36 certain training at certain intervals; requiring that 37 certain contract managers complete training and 38 certification within a specified timeframe; requiring 39 the department to establish and disseminate certain 40 training and certification requirements; requiring the 41 department to evaluate certain training at certain 42 intervals; requiring certain contract managers to 43 possess certain experience in managing contracts; 44 authorizing a contract administrator to also serve as 45 a contract manager in certain circumstances; providing 46 that evaluations of proposals and replies must be 47 conducted independently; providing for specified teams 48 to conduct certain negotiations; requiring a Project 49 Management Professional to provide guidance based on 50 certain qualifications; providing qualification 51 requirements for contract negotiator certification; 52 requiring supervisors of contract administrators or 53 contract and grant managers meeting certain criteria 54 to complete training within a specified period; 55 providing that the department is responsible for 56 establishing and disseminating supervisor training by 57 a certain date; providing for a continuing oversight 58 team in certain circumstances; providing requirements 59 for continuing oversight team members and meetings; 60 requiring a continuing oversight team to provide 61 notice of certain deficiencies and changes in contract 62 scope to certain entities; amending s. 287.058, F.S.; 63 prohibiting a contract document for certain 64 contractual services from containing a certain 65 nondisclosure clause; creating s. 287.1351, F.S.; 66 defining the term “vendor”; prohibiting certain 67 vendors from submitting bids, proposals, or replies 68 to, or entering into or renewing any contract with, an 69 agency; prohibiting an agency from accepting a bid, 70 proposal, or reply from, or entering into a contract 71 with, a suspended vendor until certain conditions are 72 met; requiring an agency to notify the department of, 73 and provide certain information regarding, any such 74 vendors; requiring the department to review any vendor 75 reported by an agency; requiring the department to 76 notify a vendor of any intended removal from the 77 vendor list; specifying administrative remedies and 78 applicable procedures for an affected vendor; 79 requiring the department to place certain vendors on 80 the suspended vendor list; authorizing the removal of 81 a suspended vendor from the suspended vendor list in 82 accordance with specified procedures; specifying 83 requirements and limitations; amending s. 287.136, 84 F.S.; requiring each agency inspector general to 85 complete certain audits of executed contracts at 86 certain intervals; amending ss. 43.16, 215.971, 87 287.0571, 295.187, 394.47865, 402.7305, 408.045, 88 570.07, and 627.351, F.S.; conforming cross 89 references; requiring the Department of Management 90 Services to conduct a study evaluating fleet 91 management options to identify any potential savings; 92 requiring the department to submit a report to the 93 Legislature by a specified date; providing an 94 effective date. 95 96 Be It Enacted by the Legislature of the State of Florida: 97 98 Section 1. Notwithstanding the expiration date in section 99 106 of chapter 2020-114, Laws of Florida, section 216.1366, 100 Florida Statutes, is reenacted and amended to read: 101 216.1366 Contract terms.— 102 (1) In order to preserve the interest of the state in the 103 prudent expenditure of state funds, each public agency contract 104 for services entered into or amended on or after July 1, 2020, 105 shall authorize the public agency to inspect the: 106 (a) Financial records, papers, and documents of the 107 contractor that are directly related to the performance of the 108 contract or the expenditure of state funds. 109 (b) Programmatic records, papers, and documents of the 110 contractor which the public agency determines are necessary to 111 monitor the performance of the contract or to ensure that the 112 terms of the contract are being met. 113 (2) The contract shall require the contractor to provide 114 such records, papers, and documents requested by the public 115 agency within 10 business days after the request is made. 116(3)This section expires July 1, 2021.117 Section 2. Subsection (16) of section 287.042, Florida 118 Statutes, is amended to read: 119 287.042 Powers, duties, and functions.—The department shall 120 have the following powers, duties, and functions: 121 (16) To evaluate contracts let by the Federal Government, 122 another state, or a political subdivision for the provision of 123 commodities and contract services, and, if it is determined by 124 the Secretary of Management Services in writing to be cost 125 effective andinthe best value tointerest ofthe state, to 126 enter into a written agreement authorizing an agency to make 127 purchases under such contract. 128 Section 3. Subsection (2) of section 287.056, Florida 129 Statutes, is amended, and subsection (4) is added to that 130 section, to read: 131 287.056 Purchases from purchasing agreements and state term 132 contracts.— 133 (2) Agencies and eligible users may use a request for quote 134 to obtain written pricing or services information from a state 135 term contract vendor for commodities or contractual services 136 available on state term contract from that vendor. The purpose 137 of a request for quote is to determine whether a price, term, or 138 condition more favorable to the agency or eligible user than 139 that provided in the state term contract is available. If an 140 agency issues a request for quote for contractual services for 141 any contract with 25 vendors or fewer, the agency must issue a 142 request for quote to all vendors approved to provide such 143 contractual services. For any contract with more than 25 144 vendors, the agency must issue a request for quote to a minimum 145 of 25 vendors approved to provide such contractual services. Use 146 of a request for quote does not constitute a decision or 147 intended decision that is subject to protest under s. 120.57(3). 148 (4) A firm or individual placed on the suspended vendor 149 list pursuant to s. 287.1351 or placed on a disqualified vendor 150 list pursuant to s. 287.133 or s. 287.134 is immediately 151 disqualified from state term contract eligibility. 152 Section 4. Present subsections (4) through (16) and (17) 153 through (23) of section 287.057, Florida Statutes, are 154 redesignated as subsections (5) through (17) and (19) through 155 (25), respectively, new subsections (4) and (18) and subsection 156 (26) are added to that section, and paragraph (c) of subsection 157 (3) and present subsections (13) through (16) of that section 158 are amended, to read: 159 287.057 Procurement of commodities or contractual 160 services.— 161 (3) If the purchase price of commodities or contractual 162 services exceeds the threshold amount provided in s. 287.017 for 163 CATEGORY TWO, purchase of commodities or contractual services 164 may not be made without receiving competitive sealed bids, 165 competitive sealed proposals, or competitive sealed replies 166 unless: 167 (c) Commodities or contractual services available only from 168 a single source may be excepted from the competitive 169 solicitation requirements. If an agency believes that 170 commodities or contractual services are available only from a 171 single source, the agency shall electronically post a 172 description of the commodities or contractual services sought 173 for at least 157business days. The description must include a 174 request that prospective vendors provide information regarding 175 their ability to supply the commodities or contractual services 176 described. If it is determined in writing by the agency, after 177 reviewing any information received from prospective vendors that 178 the commodities or contractual services are available only from 179 a single source, the agency shall provide notice of its intended 180 decision to enter a single-source purchase contract in the 181 manner specified in s. 120.57(3). Each agency shall report all 182 such actions to the department on a quarterly basis in a manner 183 and form prescribed by the department, and the department shall 184 report such information to the Governor, the President of the 185 Senate, and the Speaker of the House of Representatives no later 186 than January 1, 2022, and each January 1 thereafter. 187 (4)(a) An agency may not initiate a competitive 188 solicitation for a product or service if the completion of such 189 competitive solicitation would: 190 1. Require a change in law; or 191 2. Require a change to the agency’s original approved 192 budget as defined in s. 216.011, other than a transfer 193 authorized in s. 216.292(2) or (3), unless the initiation of 194 such competitive solicitation is specifically authorized in law, 195 in the General Appropriations Act, or by the Legislative Budget 196 Commission. 197 (b) This subsection does not apply to a competitive 198 solicitation for which the agency head certifies that a valid 199 emergency exists. 200 (14)(13)Contracts for commodities or contractual services 201 may be renewed for a period that may not exceed 3 years or the 202 term of the original contract, whichever is longer. Renewal of a 203 contract for commodities or contractual services must be in 204 writing and is subject to the same terms and conditions set 205 forth in the initial contract and any written amendments signed 206 by the parties. If the commodity or contractual service is 207 purchased as a result of the solicitation of bids, proposals, or 208 replies, the price of the commodity or contractual service to be 209 renewed must be specified in the bid, proposal, or reply, except 210 that an agency may negotiate lower pricing. A renewal contract 211 may not include any compensation for costs associated with the 212 renewal. Renewals are contingent upon satisfactory performance 213 evaluations by the agency and subject to the availability of 214 funds. Exceptional purchase contracts pursuant to paragraphs 215 (3)(a) and (c) may not be renewed. With the exception of 216 subsection (11)(10), if a contract amendment results in a 217 longer contract term or increased payments, a state agency may 218 not renew or amend a contract for the outsourcing of a service 219 or activity that has an original term value exceeding $5$10220 million before submitting a written report concerning contract 221 performance to the Governor, the President of the Senate, and 222 the Speaker of the House of Representatives at least 90 days 223 before execution of the renewal or amendment. 224 (15)(a)(14)For each contractual services contract, the 225 agency shall designate an employee to function as contract 226 manager who is responsible for enforcing performance of the 227 contract terms and conditions and to serve as a liaison between 228withthe contractor and the agency. The contract manager may not 229 be an individual who has been employed within the previous 5 230 years by the vendor awarded the contractual services contract. 231 The primary responsibilities of a contract manager include, but 232 are not limited to: 233 1. Participating in the solicitation development and review 234 of contract documents. 235 2. Monitoring the contractor’s progress and performance to 236 ensure procured products and services conform to the contract 237 requirements and keeping timely records of findings. 238 3. Managing and documenting any changes to the contract 239 through the amendment process authorized by the terms of the 240 contract. 241 4. Monitoring the contract budget to ensure sufficient 242 funds are available throughout the term of the contract. 243 5. Exercising applicable remedies, as appropriate, when a 244 contractor’s performance is deficient. 245 (b)(a)Each contract manager who is responsible for 246 contracts in excess of the threshold amount for CATEGORY TWO 247 must, at a minimum, complete training conducted by the Chief 248 Financial Officer for accountability in contracts and grant 249 management. The Chief Financial Officer shall evaluate such 250 training every 5 years to assess its effectiveness and update 251 the training curriculum. The Chief Financial Officer shall 252 establish and disseminate uniform procedures pursuant to s. 253 17.03(3) to ensure that contractual services have been rendered 254 in accordance with the contract terms before the agency 255 processes the invoice for payment. The procedures must include, 256 but need not be limited to, procedures for monitoring and 257 documenting contractor performance, reviewing and documenting 258 all deliverables for which payment is requested by vendors, and 259 providing written certification by contract managers of the 260 agency’s receipt of goods and services. 261 (c)(b)Each contract manager who is responsible for 262 contracts in excess of $100,000 annually must, in addition to 263 the accountability in contracts and grant management training 264 required in paragraph (b) and within 6 months after being 265 assigned responsibility for such contracts, complete training in 266 contract management and become a certified contract manager. The 267 department is responsible for establishing and disseminating the 268 training and certification requirements for certified contract 269 managers. Training must promote best practices and procedures 270 related to negotiating, managing, and ensuring accountability in 271 agency contracts and grant agreements, which must include the 272 use of case studies based upon previous audits, contracts, and 273 grant agreements. A certified contract manager must complete 274 training every 5 years for certification renewalrequirements275for certification which include completing the training276conducted by the Chief Financial Officer for accountability in277contracts and grant management. Training and certification must 278 be coordinated by the department, and the training must be 279 conducted jointly by the department and the Department of 280 Financial Services. The department shall evaluate such training 281 every 5 years to assess its effectiveness and update the 282 training curriculumTraining must promote best practices and283procedures related to negotiating, managing, and ensuring284accountability in agency contracts and grant agreements, which285must include the use of case studies based upon previous audits,286contracts, and grant agreements. All agency contract managers287must become certified within 24 months after establishment of288the training and certification requirements by the department289and the Department of Financial Services. 290 (d) Each contract manager who is responsible for contracts 291 in excess of $10 million annually must, in addition to the 292 training required in paragraph (b) and the training and 293 certification required in paragraph (c), possess at least 5 294 years of experience managing contracts in excess of $5 million 295 annually. 296 (16)(15)Each agency shall designate at least one employee 297 who shall serve as a contract administrator responsible for 298 maintaining a contract file and financial information on all 299 contractual services contracts and who shall serve as a liaison 300 with the contract managers and the department. For a contract of 301 $500,000 or less annually, the contract administrator may also 302 serve as the contract manager if he or she has completed the 303 required training. For a contract in excess of $500,000 304 annually, the contract administrator may not serve as both the 305 contract administrator and the contract manager. 306 (17)(a)(16)(a)For a contract in excess of the threshold 307 amount provided in s. 287.017 for CATEGORY FOUR, the agency head 308 shall appoint: 309 1. At least three persons to independently evaluate 310 proposals and replies who collectively have experience and 311 knowledge in the program areas and service requirements for the 312 commoditywhich commoditiesor contractual servicesaresought. 313 2. At least three persons to a negotiation team to conduct 314 negotiations during a competitive sealed reply procurement. The 315 negotiation team members mustwhocollectively have experience 316 and knowledge in negotiating contracts, contract procurement, 317 and the program areas and service requirements for the commodity 318which commoditiesor contractual servicesaresought. 319 (b)1. If the value of a contract is in excess of $1 million 320 in any fiscal year, at least one of the persons conducting 321 negotiations must becertified asa certified contract 322 negotiatorbased upon department rules in order to ensure that323certified contract negotiators are knowledgeable about effective324negotiation strategies, capable of successfully implementing325those strategies, and involved appropriately in the procurement326process. At a minimum, the rules must address the qualifications327required for certification, the method of certification, and the328procedure for involving the certified negotiator. 329 2. If the value of a contract is in excess of $10 million 330 in any fiscal year, at least one of the persons conducting 331 negotiations must be a Project Management Professional, as 332 certified by the Project Management Institute. The Project 333 Management Professional shall provide guidance based on his or 334 her experience, education, and competency to lead and direct 335 complex projects. 336 3. The department is responsible for establishing and 337 disseminating the certification and training requirements for 338 certified contract negotiators. Training must ensure that 339 certified contract negotiators are knowledgeable about effective 340 negotiation strategies, capable of successfully implementing 341 those strategies, and involved appropriately in the procurement 342 process. The department shall evaluate such training every 5 343 years in order to assess its effectiveness and update the 344 training curriculum. A certified contract negotiator is required 345 to complete training every 5 years for certification renewal. 346 Qualification requirements for certification must include: 347 a. At least 12 months’ experience as a purchasing agent, 348 contract manager, or contract administrator for an agency or a 349 local governmental entity where at least 50 percent of the 350 designated duties included procuring commodities or contractual 351 services; participating in contract negotiation, contract 352 management, or contract administration; or working as an agency 353 attorney whose duties included providing legal counsel to the 354 agency’s purchasing or contracting staff; and 355 b. Experience during the preceding 5 years in leading at 356 least two federal, state, or local government negotiation teams 357 through a negotiated procurement or participation in at least 358 three federal, state, or local government-negotiated 359 procurements. 360 (18) Any person who supervises contract administrators or 361 contract or grant managers who meet criteria for certification 362 in subsection (15) shall annually complete public procurement 363 training for supervisors within 12 months after appointment to 364 the supervisory position. The department is responsible for 365 establishing and disseminating the training course content 366 required for supervisors, and training shall commence no later 367 than July 1, 2022. 368 (26)(a) For each contractual services contract in excess of 369 $5 million, the agency head shall establish a continuing 370 oversight team after the contract has been awarded. The agency 371 head shall appoint at least four persons, one of whom must be 372 the certified contract manager, to the continuing oversight 373 team. If the value of the contractual services contract is in 374 excess of $10 million, at least one of the persons on the 375 continuing oversight team must possess at least 5 years of 376 experience in managing contracts of a similar scope or size. If 377 the value of the contractual services contract is in excess of 378 $20 million, the continuing oversight team must consist of at 379 least five persons, and at least one of the persons on the 380 continuing oversight team must be from an agency other than the 381 agency or agencies participating in the contract. Members of the 382 continuing oversight team must be agency employees and must 383 collectively have experience and knowledge in contract 384 management, contract administration, contract enforcement, and 385 the program areas and service requirements for the contractual 386 services purchased. 387 (b)1. For contracts in excess of $5 million, each 388 continuing oversight team must meet at least quarterly. 389 2. For contracts in excess of $10 million, each continuing 390 oversight team must meet at least monthly. A representative of 391 the contractor must be made available to members of the 392 continuing oversight team for at least one meeting every 393 calendar quarter to respond to any questions or requests for 394 information from the continuing oversight team concerning 395 contractor performance. 396 (c)1. Within 30 days after the formation of the continuing 397 oversight team, the continuing oversight team must convene an 398 initial meeting with representatives of the contractor to 399 achieve a mutual understanding of the contract requirements, to 400 provide the contractor with an orientation to the contract 401 management process, and to provide an explanation of the role of 402 the continuing oversight team, contract manager, and contract 403 administrator. 404 2. The continuing oversight team must meet to discuss the 405 status of the contract, the pace of deliverables, the quality of 406 deliverables, contractor responsiveness, and contractor 407 performance. The contract administrator must be present at each 408 meeting with the contract file and all applicable financial 409 information. The continuing oversight team may submit written 410 questions to the contractor concerning any items discussed 411 during a continuing oversight team meeting. The contractor must 412 respond to the team’s questions within 10 business days after 413 receiving the written questions. The questions and responses 414 must be included in the contract file. 415 (d) The continuing oversight team must notify, in writing: 416 1. The agency head and the department of any deficiency in 417 a contractor’s performance which substantially affects the pace 418 of deliverables or the likelihood of the successful completion 419 of the contract. 420 2. The agency head, the department, and the Office of 421 Policy and Budget in the Executive Office of the Governor of any 422 significant change in contract scope or any increase in the cost 423 of the contract which is 5 percent of the planned contract cost 424 or greater within the fiscal year for contractual service 425 contracts of at least $5 million. 426 3. The agency head, the department, the Office of Policy 427 and Budget in the Executive Office of the Governor, and the 428 legislative appropriations committees of any significant change 429 in contract scope or any increase in the cost of the contract 430 which is 5 percent of the planned contract cost or greater 431 within the fiscal year for contractual service contracts of $10 432 million or greater. 433 Section 5. Subsection (7) is added to section 287.058, 434 Florida Statutes, to read: 435 287.058 Contract document.— 436 (7) A contract may not contain a nondisclosure clause that 437 prohibits the contractor from disclosing information relevant to 438 the performance of the contract to members or staff of the 439 Senate or the House of Representatives. 440 Section 6. Section 287.1351, Florida Statutes, is created 441 to read: 442 287.1351 Suspended vendors; state contracts.— 443 (1) As used in this section, the term “vendor” means a 444 person or an entity that provides goods or services to an agency 445 under a contract or submits a bid, proposal, or reply to provide 446 goods or services to an agency. 447 (2)(a) A vendor that is in default on any contract with an 448 agency or has otherwise repeatedly demonstrated a recent 449 inability to fulfill the terms and conditions of previous state 450 contracts or to adequately perform its duties under those 451 contracts may not submit a bid, proposal, or reply to an agency 452 or enter into or renew a contract to provide any goods or 453 services to an agency after its placement, pursuant to this 454 section, on the suspended vendor list. 455 (b) An agency may not accept a bid, proposal, or reply 456 from, or enter into or renew any contract with, a vendor on the 457 suspended vendor list until such vendor has been removed from 458 the suspended vendor list and returned to the vendor list 459 maintained by the department pursuant to s. 287.042(1)(a) and 460 (b) and the vendor has reimbursed the agency for any 461 reprocurement costs. 462 (3) An agency shall notify the department of any vendor 463 that has met the grounds for suspension described in paragraph 464 (2)(a). The agency must provide documentation to the department 465 evidencing the vendor’s default or other grounds for suspension. 466 The department shall review the documentation provided and 467 determine whether good cause exists to remove the vendor from 468 the vendor list and to place it on the suspended vendor list. If 469 good cause exists, the department must notify the vendor in 470 writing of its intent to remove the vendor from the vendor list 471 and of the vendor’s right to an administrative hearing and the 472 applicable procedures and time requirements for any such 473 hearing. If the vendor does not request an administrative 474 hearing, the department must enter a final order removing the 475 vendor from the vendor list. A vendor may not be removed from 476 the vendor list without receiving an individual notice of intent 477 from the department. 478 (4) Within 21 days after receipt of the notice of intent, 479 the vendor may file with the department a petition for a formal 480 hearing pursuant to ss. 120.569 and 120.57 to challenge the 481 department’s decision to remove the vendor from the vendor list. 482 A vendor that fails to timely file a petition in accordance with 483 this subsection is deemed to have waived its right to a hearing, 484 and the department’s decision to remove the vendor from the 485 vendor list becomes final agency action. 486 (5)(a) The department shall place any vendor removed from 487 the vendor list pursuant to this section on the suspended vendor 488 list. One year or more after entry of the final order of its 489 suspension, a suspended vendor may file a petition with the 490 department for removal from the suspended vendor list. The 491 proceeding on the petition must be conducted in accordance with 492 chapter 120. The vendor may be removed from the suspended vendor 493 list if the administrative law judge determines that removal 494 from the list would be in the public interest. In determining 495 whether removal from the list would be in the public interest, 496 the administrative law judge may consider, but is not limited 497 to, whether the suspended vendor has prepared a corrective 498 action plan that addresses the original grounds for default or 499 failure to fulfill the terms and conditions of the contract, 500 reimbursed the agency for any reprocurement costs, or provided 501 additional evidence that the vendor has taken other remedial 502 action. 503 (b) If a petition for removal from the suspended vendor 504 list is denied, the vendor may not petition for another hearing 505 on removal for a period of at least 9 months after the date of 506 the denial. The department may petition for the suspended 507 vendor’s removal before the expiration of such period if, in the 508 department’s discretion, the department determines that removal 509 from the suspended vendor list would be in the public interest. 510 Section 7. Section 287.136, Florida Statutes, is amended to 511 read: 512 287.136 Audit of executed contract documents.— 513 (1) After execution of a contract, the Chief Financial 514 Officer shall perform audits of the executed contract document 515 and contract manager’s records to ensure that adequate internal 516 controls are in place for complying with the terms and 517 conditions of the contract and for the validation and receipt of 518 goods and services. 519 (a)(1)At the conclusion of the audit, the Chief Financial 520 Officer’s designee shall discuss the audit and potential 521 findings with the official whose office is subject to audit. The 522 final audit report shall be submitted to the agency head. 523 (b)(2)Within 30 days after receipt of the final audit 524 report, the agency head shall submit to the Chief Financial 525 Officer or designee his or her written statement of explanation 526 or rebuttal concerning findings requiring corrective action, 527 including corrective action to be taken to preclude a 528 recurrence. 529 (2) Beginning October 1, 2021, and every 3 years 530 thereafter, each agency inspector general shall complete a risk 531 based compliance audit of all contracts executed by the agency 532 for the preceding 3 fiscal years. The audit must include an 533 evaluation of and identify any trend in vendor preference. The 534 audit findings must be submitted to the agency head, the 535 secretary of the Department of Management Services, and the 536 Governor. 537 Section 8. Subsection (1) of section 43.16, Florida 538 Statutes, is amended to read: 539 43.16 Justice Administrative Commission; membership, powers 540 and duties.— 541 (1) There is hereby created a Justice Administrative 542 Commission, with headquarters located in the state capital. The 543 necessary office space for use of the commission shall be 544 furnished by the proper state agency in charge of state 545 buildings. For purposes of the fees imposed on agencies pursuant 546 to s. 287.057(24)s. 287.057(22), the Justice Administrative 547 Commission shall be exempt from such fees. 548 Section 9. Paragraph (a) of subsection (2) of section 549 215.971, Florida Statutes, is amended to read: 550 215.971 Agreements funded with federal or state 551 assistance.— 552 (2) For each agreement funded with federal or state 553 financial assistance, the state agency shall designate an 554 employee to function as a grant manager who shall be responsible 555 for enforcing performance of the agreement’s terms and 556 conditions and who shall serve as a liaison with the recipient 557 or subrecipient. 558 (a)1. Each grant manager who is responsible for agreements 559 in excess of the threshold amount for CATEGORY TWO under s. 560 287.017 must, at a minimum, complete training conducted by the 561 Chief Financial Officer for accountability in contracts and 562 grant management. 563 2. Effective December 1, 2014, each grant manager 564 responsible for agreements in excess of $100,000 annually must 565 complete the training and become a certified contract manager as 566 provided under s. 287.057(15)s. 287.057(14). All grant managers 567 must become certified contract managers within 24 months after 568 establishment of the training and certification requirements by 569 the Department of Management Services and the Department of 570 Financial Services. 571 Section 10. Paragraph (a) of subsection (3) of section 572 287.0571, Florida Statutes, is amended to read: 573 287.0571 Business case to outsource; applicability.— 574 (3) This section does not apply to: 575 (a) A procurement of commodities and contractual services 576 listed in s. 287.057(3)(d) and (e) and (23)(21). 577 Section 11. Paragraph (b) of subsection (4) of section 578 295.187, Florida Statutes, is amended to read: 579 295.187 Florida Veteran Business Enterprise Opportunity 580 Act.— 581 (4) VENDOR PREFERENCE.— 582 (b) Notwithstanding s. 287.057(12)s. 287.057(11), if a 583 veteran business enterprise entitled to the vendor preference 584 under this section and one or more businesses entitled to this 585 preference or another vendor preference provided by law submit 586 bids, proposals, or replies for procurement of commodities or 587 contractual services which are equal with respect to all 588 relevant considerations, including price, quality, and service, 589 the state agency shall award the procurement or contract to the 590 business having the smallest net worth. 591 Section 12. Paragraph (a) of subsection (1) of section 592 394.47865, Florida Statutes, is amended to read: 593 394.47865 South Florida State Hospital; privatization.— 594 (1) The Department of Children and Families shall, through 595 a request for proposals, privatize South Florida State Hospital. 596 The department shall plan to begin implementation of this 597 privatization initiative by July 1, 1998. 598 (a) Notwithstanding s. 287.057(14)s. 287.057(13), the 599 department may enter into agreements, not to exceed 20 years, 600 with a private provider, a coalition of providers, or another 601 agency to finance, design, and construct a treatment facility 602 having up to 350 beds and to operate all aspects of daily 603 operations within the facility. The department may subcontract 604 any or all components of this procurement to a statutorily 605 established state governmental entity that has successfully 606 contracted with private companies for designing, financing, 607 acquiring, leasing, constructing, and operating major privatized 608 state facilities. 609 Section 13. Paragraph (b) of subsection (2) and subsection 610 (3) of section 402.7305, Florida Statutes, are amended to read: 611 402.7305 Department of Children and Families; procurement 612 of contractual services; contract management.— 613 (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.— 614 (b) When it is in the best interest of a defined segment of 615 its consumer population, the department may competitively 616 procure and contract for systems of treatment or service that 617 involve multiple providers, rather than procuring and 618 contracting for treatment or services separately from each 619 participating provider. The department must ensure that all 620 providers that participate in the treatment or service system 621 meet all applicable statutory, regulatory, service quality, and 622 cost control requirements. If other governmental entities or 623 units of special purpose government contribute matching funds to 624 the support of a given system of treatment or service, the 625 department shall formally request information from those funding 626 entities in the procurement process and may take the information 627 received into account in the selection process. If a local 628 government contributes matching funds to support the system of 629 treatment or contracted service and if the match constitutes at 630 least 25 percent of the value of the contract, the department 631 shall afford the governmental match contributor an opportunity 632 to name an employee as one of the persons required by s. 633 287.057(17)s. 287.057(16)to evaluate or negotiate certain 634 contracts, unless the department sets forth in writing the 635 reason why the inclusion would be contrary to the best interest 636 of the state. Any employee so named by the governmental match 637 contributor shall qualify as one of the persons required by s. 638 287.057(17)s. 287.057(16). A governmental entity or unit of 639 special purpose government may not name an employee as one of 640 the persons required by s. 287.057(17)s. 287.057(16)if it, or 641 any of its political subdivisions, executive agencies, or 642 special districts, intends to compete for the contract to be 643 awarded. The governmental funding entity or contributor of 644 matching funds must comply with all procurement procedures set 645 forth in s. 287.057 when appropriate and required. 646 (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The 647 Department of Children and Families shall review the time period 648 for which the department executes contracts and shall execute 649 multiyear contracts to make the most efficient use of the 650 resources devoted to contract processing and execution. Whenever 651 the department chooses not to use a multiyear contract, a 652 justification for that decision must be contained in the 653 contract. Notwithstanding s. 287.057(15)s. 287.057(14), the 654 department is responsible for establishing a contract management 655 process that requires a member of the department’s Senior 656 Management or Selected Exempt Service to assign in writing the 657 responsibility of a contract to a contract manager. The 658 department shall maintain a set of procedures describing its 659 contract management process which must minimally include the 660 following requirements: 661 (a) The contract manager shall maintain the official 662 contract file throughout the duration of the contract and for a 663 period not less than 6 years after the termination of the 664 contract. 665 (b) The contract manager shall review all invoices for 666 compliance with the criteria and payment schedule provided for 667 in the contract and shall approve payment of all invoices before 668 their transmission to the Department of Financial Services for 669 payment. 670 (c) The contract manager shall maintain a schedule of 671 payments and total amounts disbursed and shall periodically 672 reconcile the records with the state’s official accounting 673 records. 674 (d) For contracts involving the provision of direct client 675 services, the contract manager shall periodically visit the 676 physical location where the services are delivered and speak 677 directly to clients receiving the services and the staff 678 responsible for delivering the services. 679 (e) The contract manager shall meet at least once a month 680 directly with the contractor’s representative and maintain 681 records of such meetings. 682 (f) The contract manager shall periodically document any 683 differences between the required performance measures and the 684 actual performance measures. If a contractor fails to meet and 685 comply with the performance measures established in the 686 contract, the department may allow a reasonable period for the 687 contractor to correct performance deficiencies. If performance 688 deficiencies are not resolved to the satisfaction of the 689 department within the prescribed time, and if no extenuating 690 circumstances can be documented by the contractor to the 691 department’s satisfaction, the department must terminate the 692 contract. The department may not enter into a new contract with 693 that same contractor for the services for which the contract was 694 previously terminated for a period of at least 24 months after 695 the date of termination. The contract manager shall obtain and 696 enforce corrective action plans, if appropriate, and maintain 697 records regarding the completion or failure to complete 698 corrective action items. 699 (g) The contract manager shall document any contract 700 modifications, which shall include recording any contract 701 amendments as provided for in this section. 702 (h) The contract manager shall be properly trained before 703 being assigned responsibility for any contract. 704 Section 14. Subsection (2) of section 408.045, Florida 705 Statutes, is amended to read: 706 408.045 Certificate of need; competitive sealed proposals.— 707 (2) The agency shall make a decision regarding the issuance 708 of the certificate of need in accordance with the provisions of 709 s. 287.057(17)s. 287.057(16), rules adopted by the agency 710 relating to intermediate care facilities for the developmentally 711 disabled, and the criteria in s. 408.035, as further defined by 712 rule. 713 Section 15. Subsection (42) of section 570.07, Florida 714 Statutes, is amended to read: 715 570.07 Department of Agriculture and Consumer Services; 716 functions, powers, and duties.—The department shall have and 717 exercise the following functions, powers, and duties: 718 (42) Notwithstanding the provisions of s. 287.057(24)s.719287.057(22)that require all agencies to use the online 720 procurement system developed by the Department of Management 721 Services, the department may continue to use its own online 722 system. However, vendors utilizing such system shall be 723 prequalified as meeting mandatory requirements and 724 qualifications and shall remit fees pursuant to s. 287.057(24) 725s. 287.057(22), and any rules implementing s. 287.057. 726 Section 16. Paragraph (e) of subsection (6) of section 727 627.351, Florida Statutes, is amended to read: 728 627.351 Insurance risk apportionment plans.— 729 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 730 (e) The corporation is subject to s. 287.057 for the 731 purchase of commodities and contractual services except as 732 otherwise provided in this paragraph. Services provided by 733 tradepersons or technical experts to assist a licensed adjuster 734 in the evaluation of individual claims are not subject to the 735 procurement requirements of this section. Additionally, the 736 procurement of financial services providers and underwriters 737 must be made pursuant to s. 627.3513. Contracts for goods or 738 services valued at or more than $100,000 are subject to approval 739 by the board. 740 1. The corporation is an agency for purposes of s. 287.057, 741 except that, for purposes of s. 287.057(24)s. 287.057(22), the 742 corporation is an eligible user. 743 a. The authority of the Department of Management Services 744 and the Chief Financial Officer under s. 287.057 extends to the 745 corporation as if the corporation were an agency. 746 b. The executive director of the corporation is the agency 747 head under s. 287.057, except for resolution of bid protests for 748 which the board would serve as the agency head. 749 2. The corporation must provide notice of a decision or 750 intended decision concerning a solicitation, contract award, or 751 exceptional purchase by electronic posting. Such notice must 752 contain the following statement: “Failure to file a protest 753 within the time prescribed in this section constitutes a waiver 754 of proceedings.” 755 a. A person adversely affected by the corporation’s 756 decision or intended decision to award a contract pursuant to s. 757 287.057(1) or (3)(c) who elects to challenge the decision must 758 file a written notice of protest with the executive director of 759 the corporation within 72 hours after the corporation posts a 760 notice of its decision or intended decision. For a protest of 761 the terms, conditions, and specifications contained in a 762 solicitation, including provisions governing the methods for 763 ranking bids, proposals, replies, awarding contracts, reserving 764 rights of further negotiation, or modifying or amending any 765 contract, the notice of protest must be filed in writing within 766 72 hours after posting the solicitation. Saturdays, Sundays, and 767 state holidays are excluded in the computation of the 72-hour 768 time period. 769 b. A formal written protest must be filed within 10 days 770 after the date the notice of protest is filed. The formal 771 written protest must state with particularity the facts and law 772 upon which the protest is based. Upon receipt of a formal 773 written protest that has been timely filed, the corporation must 774 stop the solicitation or contract award process until the 775 subject of the protest is resolved by final board action unless 776 the executive director sets forth in writing particular facts 777 and circumstances that require the continuance of the 778 solicitation or contract award process without delay in order to 779 avoid an immediate and serious danger to the public health, 780 safety, or welfare. 781 (I) The corporation must provide an opportunity to resolve 782 the protest by mutual agreement between the parties within 7 783 business days after receipt of the formal written protest. 784 (II) If the subject of a protest is not resolved by mutual 785 agreement within 7 business days, the corporation’s board must 786 transmit the protest to the Division of Administrative Hearings 787 and contract with the division to conduct a hearing to determine 788 the merits of the protest and to issue a recommended order. The 789 contract must provide for the corporation to reimburse the 790 division for any costs incurred by the division for court 791 reporters, transcript preparation, travel, facility rental, and 792 other customary hearing costs in the manner set forth in s. 793 120.65(9). The division has jurisdiction to determine the facts 794 and law concerning the protest and to issue a recommended order. 795 The division’s rules and procedures apply to these proceedings; 796 the division’s applicable bond requirements do not apply. The 797 protest must be heard by the division at a publicly noticed 798 meeting in accordance with procedures established by the 799 division. 800 c. In a protest of an invitation-to-bid or request-for 801 proposals procurement, submissions made after the bid or 802 proposal opening which amend or supplement the bid or proposal 803 may not be considered. In protesting an invitation-to-negotiate 804 procurement, submissions made after the corporation announces 805 its intent to award a contract, reject all replies, or withdraw 806 the solicitation that amends or supplements the reply may not be 807 considered. Unless otherwise provided by law, the burden of 808 proof rests with the party protesting the corporation’s action. 809 In a competitive-procurement protest, other than a rejection of 810 all bids, proposals, or replies, the administrative law judge 811 must conduct a de novo proceeding to determine whether the 812 corporation’s proposed action is contrary to the corporation’s 813 governing statutes, the corporation’s rules or policies, or the 814 solicitation specifications. The standard of proof for the 815 proceeding is whether the corporation’s action was clearly 816 erroneous, contrary to competition, arbitrary, or capricious. In 817 any bid-protest proceeding contesting an intended corporation 818 action to reject all bids, proposals, or replies, the standard 819 of review by the board is whether the corporation’s intended 820 action is illegal, arbitrary, dishonest, or fraudulent. 821 d. Failure to file a notice of protest or failure to file a 822 formal written protest constitutes a waiver of proceedings. 823 3. The board, acting as agency head, shall consider the 824 recommended order of an administrative law judge in a public 825 meeting and take final action on the protest. Any further legal 826 remedy lies with the First District Court of Appeal. 827 Section 17. The Department of Management Services shall 828 conduct a study evaluating fleet management options to identify 829 potential savings. The results of the study must be provided in 830 a written report to the President of the Senate and the Speaker 831 of the House of Representatives by January 1, 2022. 832 Section 18. This act shall take effect July 1, 2021.