Bill Text: FL S2036 | 2012 | Regular Session | Comm Sub
Bill Title: Outsourcing or Privatization of Agency Functions
Spectrum: Committee Bill
Status: (Failed) 2012-03-09 - Died in Budget [S2036 Detail]
Download: Florida-2012-S2036-Comm_Sub.html
Florida Senate - 2012 CS for SB 2036 By the Committees on Rules; and Rules 595-02201-12 20122036c1 1 A bill to be entitled 2 An act relating to the outsourcing or privatization of 3 agency functions; amending s. 216.023, F.S.; providing 4 that certain information relating to the outsourcing 5 or privatization of an agency function which is 6 expressly required by law is not required to be 7 included in the agency’s legislative budget request 8 until after the contract for such function is 9 executed; amending s. 287.0571, F.S.; requiring an 10 agency to publicly publish the business case prepared 11 for an outsourcing project on the agency’s website; 12 amending s. 944.105, F.S.; providing that certain 13 requirements that apply to Department of Corrections’ 14 contracts do not apply to contracts for outsourcing or 15 privatizing the operation and maintenance of 16 correctional facilities which are expressly required 17 by law; providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Paragraph (a) of subsection (4) of section 22 216.023, Florida Statutes, is amended to read: 23 216.023 Legislative budget requests to be furnished to 24 Legislature by agencies.— 25 (4)(a) The legislative budget requestmust containfor each 26 program must contain: 27 1. The constitutional or statutory authority for a program, 28 a brief purpose statement, and approved program components. 29 2. Information on expenditures for 3 fiscal years (actual 30 prior-year expenditures, current-year estimated expenditures, 31 and agency budget requested expenditures for the next fiscal 32 year) by appropriation category. 33 3. Details on trust funds and fees. 34 4. The total number of positions (authorized, fixed, and 35 requested). 36 5. An issue narrative describing and justifying changes in 37 amounts and positions requested for current and proposed 38 programs for the next fiscal year. 39 6. Information resource requests. 40 7. Supporting information, including applicable cost 41 benefit analyses, business case analyses, performance 42 contracting procedures, service comparisons, and impacts on 43 performance standards for any agency request to outsource or 44 privatize agency functions. The cost-benefit and business case 45 analyses must include an assessment of the impact on each 46 affected activity from those identified in accordance with 47 paragraph (b). Performance standards must include standards for 48 each affected activity and be expressed in terms of the 49 associated unit of activity. This subparagraph does not apply to 50 the outsourcing or privatization of agency functions expressly 51 required by the General Appropriation Act or any other law until 52 the first legislative budget request submitted by the agency 53 after the contract for the outsourcing and privatization has 54 been executed. 55 8. An evaluation of any major outsourcing and privatization 56 initiatives undertaken during the last 5 fiscal years having 57 aggregate expenditures exceeding $10 million during the term of 58 the contract. The evaluation mustshallinclude an assessment of 59 contractor performance, a comparison of anticipated service 60 levels to actual service levels, and a comparison of estimated 61 savings to actual savings achieved. Consolidated reports issued 62 by the Department of Management Services may be used to satisfy 63 this requirement. This subparagraph does not apply to the 64 outsourcing or privatization of agency functions expressly 65 required by the General Appropriation Act or any other law until 66 the first legislative budget request submitted by the agency 67 after the contract for the outsourcing and privatization has 68 been executed. 69 9. Supporting information for any proposed consolidated 70 financing of deferred-payment commodity contracts including 71 guaranteed energy performance savings contracts. Supporting 72 information must also include narrative describing and 73 justifying the need, baseline for current costs, estimated cost 74 savings, projected equipment purchases, estimated contract 75 costs, and return on investment calculation. 76 10. For projects that are requested by an agency and that 77 exceed $10 million in total cost, the statutory reference of the 78 existing policy or the proposed substantive policy that 79 establishes and defines the project’s governance structure, 80 planned scope, main business objectives that must be achieved, 81 and estimated completion timeframes. Information technology 82 budget requests for the continuance of existing hardware and 83 software maintenance agreements, renewal of existing software 84 licensing agreements, or the replacement of desktop units with 85 new technology that is similar to the technology currently in 86 use are exempt from this requirement. This subparagraph does not 87 apply to the outsourcing or privatization of agency functions 88 expressly required by the General Appropriation Act or any other 89 law until the first legislative budget request submitted by the 90 agency after the contract for the outsourcing and privatization 91 has been executed. 92 Section 2. Subsection (4) of section 287.0571, Florida 93 Statutes, is amended to read: 94 287.0571 Business case to outsource; applicability.— 95 (4) An agency mustshallcomplete a business case for any 96 outsourcing project that has an expected cost in excess of $10 97 million within a single fiscal year. The business case shall be 98 submitted pursuant to s. 216.023. The business case shall be 99 prepared and made publicly available on the agency’s website 100 before the issuanceas partof the solicitation but is not 101 subject to challenge and mustshallincludethe following: 102 (a) A detailed description of the service or activity for 103 which the outsourcing is proposed. 104 (b) A description and analysis of the state agency’s 105 current performance, based on existing performance metrics if 106 the state agency is currently performing the service or 107 activity. 108 (c) The goals desired to be achieved through the proposed 109 outsourcing and the rationale for such goals. 110 (d) A citation to the existing or proposed legal authority 111 for outsourcing the service or activity. 112 (e) A description of available options for achieving the 113 goals. If state employees are currently performing the service 114 or activity, at least one option involving maintaining state 115 provision of the service or activity mustshallbe included. 116 (f) An analysis of the advantages and disadvantages of each 117 option, including, at a minimum, potential performance 118 improvements and risks. 119 (g) A description of the current market for the contractual 120 services that are under consideration for outsourcing. 121 (h) A cost-benefit analysis documenting the direct and 122 indirect specific baseline costs, savings, and qualitative and 123 quantitative benefits involved in or resulting from the 124 implementation of the recommended option or options. Such 125 analysis must specify the schedule that, at a minimum, must be 126 adhered to in order to achieve the estimated savings. All 127 elements of cost must be clearly identified in the cost-benefit 128 analysis, described in the business case, and supported by 129 applicable records and reports. The state agency head shall 130 attest that, based on the data and information underlying the 131 business case, to the best of his or her knowledge, all 132 projected costs, savings, and benefits are valid and achievable. 133 As used in this section, the term “cost” means the reasonable, 134 relevant, and verifiable cost, which may include, but is not 135 limited to, elements such as personnel, materials and supplies, 136 services, equipment, capital depreciation, rent, maintenance and 137 repairs, utilities, insurance, personnel travel, overhead, and 138 interim and final payments. The appropriate elementsshall139 depend on the nature of the specific initiative. As used in this 140 paragraph, the term “savings” means the difference between the 141 direct and indirect actual annual baseline costs compared to the 142 projected annual cost for the contracted functions or 143 responsibilities in any succeeding state fiscal year during the 144 term of the contract. 145 (i) A description of differences among current state agency 146 policies and processes and, as appropriate, a discussion of 147 options for or a plan to standardize, consolidate, or revise 148 current policies and processes, if any, to reduce the 149 customization of any proposed solution that would otherwise be 150 required. 151 (j) A description of the specific performance standards 152 thatmust, at a minimum, must be met to ensure adequate 153 performance. 154 (k) The projected timeframe for key events from the 155 beginning of the procurement process through the expiration of a 156 contract. 157 (l) A plan to ensure compliance with the public records 158 law. 159 (m) A specific and feasible contingency plan addressing 160 contractor nonperformance and a description of the tasks 161 involved in and costs required for its implementation. 162 (n) A state agency’s transition plan for addressing changes 163 in the number of agency personnel, affected business processes, 164 employee transition issues, and communication with affected 165 stakeholders, such as agency clients and the public. The 166 transition plan must contain a reemployment and retraining 167 assistance plan for employees who are not retained by the state 168 agency or employed by the contractor. 169 (o) A plan for ensuring access by persons with disabilities 170 in compliance with applicable state and federal law. 171 Section 3. Subsection (9) is added to section 944.105, 172 Florida Statutes, to read: 173 944.105 Contractual arrangements with private entities for 174 operation and maintenance of correctional facilities and 175 supervision of inmates.— 176 (9) This section does not apply to a contract for the 177 outsourcing or privatization of the operation and maintenance of 178 correctional facilities expressly directed to be outsourced or 179 privatized by the General Appropriation Act or any other law. 180 Section 4. This act shall take effect July 1, 2012.