August 07, 2020
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HB 1835

A bill to be entitled
2An act relating to procurement of contractual services by
3an agency; amending s. 20.22, F.S.; placing the Center for
4Efficient Government in the Department of Management
5Services; creating s. 287.0571, F.S.; providing that
6procurements of specified commodities and services are not
7subject to the act; creating s. 287.0573, F.S.; providing
8definitions; creating s. 287.0574, F.S.; providing
9criteria for the procurement of contractual services by an
10agency; creating s. 287.0575, F.S.; creating the
11Commission on Efficient Government within the Department
12of Management Services; providing for purpose, membership,
13and organization of the commission; providing duties and
14responsibilities of the commission; creating the Center
15for Efficient Government; providing purpose and
16organization of the center; providing duties and
17responsibilities of the center; requiring the center to
18create a centralized gate process for reviewing,
19evaluating, and approving agency procurements; providing
20that the commission, the center, and activities related to
21the implementation of the centralized gate process are not
22subject to the rulemaking requirements of ch. 120, F.S.;
23requiring state agencies to submit specified information,
24documents, and other materials required under policies of
25the commission or the center; creating s. 287.0576, F.S.;
26specifying procurements which must be reviewed and
27evaluated under the centralized gate process; providing
28minimum requirements for the centralized gate process;
29providing for specified determinations by the commission
30at each gate; providing procedure with respect to a
31recommendation by the commission of denial of a
32procurement required by law; providing that agencies under
33the individual control of the Attorney General, Chief
34Financial Officer, or Commissioner of Agriculture are
35subject to the act, with specified exceptions; providing
36authority of the agency head with respect to procurements
37by such agencies; establishing the gates within the
38centralized gate process; requiring agencies to submit
39specified documents for commission review; providing for
40nullification of executed contracts for procurement under
41specified circumstances; creating s. 287.0577, F.S.;
42providing requirements for procurement of certain
43contractual services; requiring an agency to develop a
44business case which describes and analyzes a contractual
45services procurement under consideration; providing
46required components of a business case; defining "cost"
47and "savings"; providing requirements with respect to the
48solicitation for a contractual services procurement;
49providing contract requirements for a contractual services
50procurement; requiring the submission of specified annual
51reports; creating s. 216.1817, F.S.; permitting budgetary
52changes for a contractual services procurement only under
53specified conditions; requiring the placement of full-time
54equivalent positions in reserve under certain conditions;
55providing for the reestablishment of full-time equivalent
56positions upon termination of a contract and reversion of
57functions and responsibilities to the agency; providing
58for future termination of the Center for Efficient
59Government and the Commission on Efficient Government;
60providing legislative intent with respect to the
61performance of review functions and assistance to agencies
62for procurements of contractual services by state agencies
63after a specified date; providing that positions
64authorized under the act shall remain with the Department
65of Management Services after a specified date; repealing
66s. 14.203, F.S., which creates the State Council on
67Competitive Government and provides duties and authority
68of the council; providing an appropriation; providing
69full-time equivalent positions; amending s. 119.0721,
70F.S.; removing a cross reference; clarifying the meaning
71of "commercial activity" to conform to the removal of the
72reference; providing an effective date.
74     WHEREAS, the private sector can often perform services with
75greater efficiency and effectiveness at a lower cost than the
76state, and
77     WHEREAS, the state has long been a leader in innovative
78practices, in part because of its partnerships with the private
79sector, and
80     WHEREAS, the state desires to continue to reap the benefits
81of lower costs, high quality, and innovation by working closely
82with the private sector, and
83     WHEREAS, the state still maintains responsibility for
84ensuring that the services performed by the private sector on
85behalf of the state are of high quality, provided cost-
86effectively, and appropriate for private provision, and
87     WHEREAS, leading businesses have developed best practices
88to determine what to obtain from the market and how to ensure
89that such services are provided at the desired quality and at
90the appropriate cost, and
91     WHEREAS, the executive branch has made great progress in
92promoting the use of such best practices, and the citizens of
93the state could benefit by the increased adoption across state
94government of such best practices, NOW, THEREFORE,
96Be It Enacted by the Legislature of the State of Florida:
98     Section 1.  Paragraph (i) is added to subsection (2) of
99section 20.22, Florida Statutes, to read:
100     20.22  Department of Management Services.--There is created
101a Department of Management Services.
102     (2)  The following divisions and programs within the
103Department of Management Services are established:
104     (i)  Center for Efficient Government.
105     Section 2.  Section 287.0571, Florida Statutes, is created
106to read:
107     287.0571  Applicability of ss. 287.0571-287.0577.--
108Procurements of commodities and contractual services listed in
109s. 287.057(5)(e), (f), and (g) shall not be subject to ss.
111     Section 3.  Section 287.0573, Florida Statutes, is created
112to read:
113     287.0573  Definitions.--For the purposes of ss. 287.0571-
115     (1)  "Center" means the Center for Efficient Government
116established under s. 287.0575(2).
117     (2)  "Centralized gate process" means the system of review
118phases established under s. 287.0576 for a proposed procurement
119of contractual services, the conclusion of each phase being a
120"gate" or decision point at which the commission determines
121whether the procurement under consideration may proceed to the
122next phase.
123     (3)  "Commission" means the Commission on Efficient
124Government established under s. 287.0575(1).
125     (4)  "Inherently governmental function or responsibility"
126means a function or responsibility which entails the exercise of
127sovereign power and is therefore so intimately related to the
128public interest that it mandates performance by a public officer
129or a public employee upon whom the public officer has delegated
130authority for the performance of such acts. Inherently
131governmental functions or responsibilities include those
132activities which require either the exercise of discretion in
133applying governmental authority or the use of value judgment in
134making decisions for the government. Inherently governmental
135functions or responsibilities are categorized as follows:
136     (a)  The act of governing or discretionary exercise of
137governmental authority which includes, but is not limited to,
138such activities as criminal investigations, prosecutions, and
139other judicial functions; management of government programs
140requiring value judgments; selection of program priorities;
141regulation of natural resources; regulation of industry and
142commerce; determination of agency policy, including, but not
143limited to, determining the content and application of
144regulations; binding the state by contract, policy, regulation,
145authorization, order, or otherwise; commissioning, appointing,
146directing, selecting, or controlling state officers or
147employees; approval of position descriptions and performance
148standards for state employees; exertion of ultimate control over
149the acquisition, use, or disposition of the real, personal,
150tangible, or intangible property of the state, including the
151collection, control, or disbursement of state funds; awarding,
152administering, and terminating contracts; determining whether
153contract costs are reasonable, allocable, and allowable;
154approval of contractual documents; approval of state licensing
155actions and inspections; determination of budget policy,
156guidance, and strategy.
157     (b)  Monetary transactions and entitlements which include,
158but are not limited to, tax collection and revenue
159disbursements; control of state funds; and the administration of
160public trusts.
162Inherently governmental functions or responsibilities do not
163include gathering information for or providing advice, opinions,
164recommendations, or ideas to state officials. They do not
165include functions that are primarily ministerial and internal in
166nature, such as building security, mail operations, operation of
167cafeterias, housekeeping, facilities operations and maintenance,
168warehouse operations, motor vehicle fleet management operations,
169or other routine electrical or mechanical services.
170     Section 4.  Section 287.0574, Florida Statutes, is created
171to read:
172     287.0574  Criteria for procurement of contractual
173services.--An agency may procure a contractual service only if:
174     (1)  The procurement does not involve the performance by a
175contractor of an inherently governmental function or
176responsibility; and
177     (2)  Upon full implementation of a procurement in which the
178performance of functions or responsibilities are shifted from
179state employees to a contractor, the implementation results in
180reasonable cost savings while maintaining at least the same
181quality of service or reasonably increases the quality of
182service while not exceeding the same level of cost.
183     Section 5.  Section 287.0575, Florida Statutes, is created
184to read:
185     287.0575  Commission on Efficient Government; membership;
186duties; Center for Efficient Government; duties.--
187     (1)  The Commission on Efficient Government is created
188within the Department of Management Services to oversee the
189Center for Efficient Government and carry out the
190responsibilities specified in this section.
191     (a)  The commission shall consist of seven members
192appointed by the Governor:
193     1.  Four members shall be heads of executive branch
195     2.  Three members shall be from the private sector and have
196significant relevant business experience but shall not be
197employed by or have a business relationship with any entity that
198seeks to contract with or has a contract with the state during
199the member's term on the commission. If feasible, the three
200private-sector members shall collectively have experience with
201procurement, successfully increasing operational efficiency, and
202implementing complex projects.
203     (b)  By August 1, 2005, the Governor shall appoint two
204private sector members and two agency heads for terms of 3 years
205and one private sector member and two agency heads for terms of
2064 years. Thereafter, each member shall serve for a term of 4
207years. The private sector members shall serve without
208compensation but shall be entitled to reimbursement for per diem
209and travel expenses pursuant to s. 112.061.
210     (c)  No member of the commission who is the head of an
211executive branch agency shall be disqualified from participating
212in commission review of a procurement because his or her agency
213is involved in the procurement.
214     (d)  The members of the commission may not delegate their
215membership to a designee.
216     (e)  A quorum shall consist of at least four members,
217including at least one private-sector member. At least one
218private-sector member must vote on the prevailing side.
219     (f)  Any vacancy on the commission shall be filled in the
220same manner as the original appointment, and any member
221appointed to fill a vacancy occurring for a reason other than
222the expiration of a term shall serve only for the unexpired term
223of the member's predecessor.
224     (g)  At the first meeting of the commission after August 1,
2252005, the members of the commission shall elect, by majority
226vote of those in attendance, a member to serve as chair of the
227commission. No later than September 1 of each succeeding year,
228the commission shall elect a new chair.
229     (h)  The commission shall:
230     1.  Oversee the Center for Efficient Government.
231     2.  Review and approve the centralized gate process created
232by the center under subsection (2).
233     3.  Review, evaluate, and grant approval of, withhold
234approval of, or deny approval of a proposed procurement at the
235gates established within the centralized gate process. The
236commission shall determine the criteria regarding which
237procurements must pass through the centralized gate process.
238Such procurements shall include, at a minimum, those subject to
239the requirements of s. 287.0576.
240     4.  Approve standards, processes, templates, and guidelines
241for use by agencies during the procurement process which shall,
242at a minimum, include the requirements under s. 287.0577 for
243procurements of contractual services.
244     5.  Implement a plan for providing information and
245documentation to the Legislature and the Governor on behalf of
246agencies and in compliance with the provisions of this chapter.
247The system shall include, at a minimum, providing copies of
248documents to be reviewed by the commission to the President of
249the Senate, the Speaker of the House of Representatives, the
250Governor, and the chairs of the relevant appropriations and
251substantive legislative committees at least 14 days prior to the
252meeting of the commission at which the proposed procurement will
253be discussed.
254     6.  Review the performance of procurements which have
255advanced through the full centralized gate process.
256     (2)  The Center for Efficient Government is created in the
257department to establish and promote best business practices so
258that the delivery of services to citizens of the state may be
259provided in the most effective and cost-efficient manner
260possible. The secretary of the department shall appoint a
261director of the center. The center shall have the following
262duties and responsibilities:
263     (a)  Create a centralized gate process for reviewing,
264evaluating, and approving agency procurements which, at a
265minimum, shall include the requirements contained in s. 287.0576
266for contractual services procurements.
267     (b)  Provide information, training, and technical
268assistance to agencies on the use of the standards, processes,
269templates, and guidelines developed for use by agencies during
270the procurement process.
271     (c)  Provide support and assistance to the commission,
272including, but not limited to, reviewing and validating agency
273business cases, developing standards, processes, templates, and
274guidelines for use by agencies during the procurement process
275and providing information and documentation as requested or
276required by law.
277     (d)  Assist agencies directly in the procurement process as
278needed to ensure a high-quality procurement, including, but not
279limited to, developing and updating business cases, drafting
280solicitation and contract documents, participating in contract
281negotiations, identifying performance measures, and advising
282agencies on performance measurement, contract management, and
283change management. To carry out this responsibility, the
284department shall employ an adequate number of highly skilled,
285credentialed staff who collectively possess significant
286expertise and experience in these areas.
287     (e)  Collect data and information from agencies on an
288ongoing basis with regard to the status and results of
289procurements which have advanced completely through the
290centralized gate process and recommend incorporation of any
291lessons learned from such projects into center standards,
292processes, templates, and guidelines, as appropriate, and
293identify and disseminate to agencies information regarding best
294practices in procurement, particularly contractual services
296     (f)  Develop and implement, in consultation with the Agency
297for Workforce Innovation, guidelines for assisting employees
298whose jobs are eliminated as a result of procurements.
299     (3)  The center and commission and the activities conducted
300by the department pursuant to this act to implement the
301centralized gate process and provide assistance and information
302shall not be subject to the rulemaking requirements of chapter
304     (4)  Agencies shall submit to the center all information,
305documents, or other materials required by center or commission
306policy or this chapter.
307     Section 6.  Section 287.0576, Florida Statutes, is created
308to read:
309     287.0576  Review and analysis of proposed procurement of
310contractual services; centralized gate process.--
311     (1)  At a minimum, the following procurements shall be
312required to undergo review and analysis through the centralized
313gate process established by the Center for Efficient Government:
314     (a)  Contractual services procurements which have a total
315cost of $10 million or more.
316     (b)  New contractual services procurements that will
317require adjustments to the agency's budget in accordance with
318chapter 216. Amendments to existing contracts are excluded.
319     (c)  Contractual services procurements that do not involve
320an outlay of state funds totaling $10 million or more because of
321the provision of services by the contractor at a rate
322significantly below market rate, the significant investment of
323other resources by the agency, or other reason, but in which the
324total value of the services performed by the agency and
325contractor under the contract is estimated to total $10 million
326or more. Examples of such procurements include, but are not
327limited to, free, no-cost, or codevelopment contracts.
328     (d)  Contractual services procurements for which the sum of
329gross revenues or shared savings to be generated for the state
330and contractor over the term of the contract plus the sum of any
331payments to the contractor by the agency over the term of the
332contract, if any, totals $10 million or more.
333     (e)  Contractual services procurements which the
334Legislature has directed to advance through the centralized gate
336     (2)  Extensions and renewals of procurements in paragraphs
337(1)(a)-(e) shall be required to undergo review and analysis
338through the centralized gate process established by the Center
339for Efficient Government though, notwithstanding any law to the
340contrary, such procurements shall only be required to pass
341through such gates as the commission determines are appropriate.
343For purposes of determining whether a procurement meets the
344requirements of this subsection, multiple contractual services
345procurements for substantially similar or related functions or
346responsibilities occurring in a coordinated fashion or in close
347time proximity to one another shall be considered a single
348contractual services procurement for purposes of meeting the
349thresholds for this section.
350     (3)  If the volume of projects required to pass through the
351centralized gate process pursuant to subsection (1) exceeds the
352capacity of the commission and center to process them, the
353commission shall prioritize the projects for commission review
354and center assistance based upon criteria it shall determine,
355which shall, at a minimum, include consideration of the
356estimated contract cost, impact on the public, impact on state
357employees, complexity, and potential risk of the procurement.
358For projects required to pass through the centralized gate
359process that the commission does not prioritize for review, the
360agency shall instead conduct its own review based upon the
361standards, processes, templates, and guidelines of the
362commission and shall provide information to the Legislature at
363least 14 days prior to agency approval at each gate in
364accordance with s. 287.0575(1)(h)5. The commission shall report
365to the President of the Senate, the Speaker of the House of
366Representatives, and the Governor if it is required to
367prioritize projects pursuant to this subsection.
368     (4)  The centralized gate process shall require, at a
369minimum, review of the procurement by the commission at the
370conclusion of important stages, or gates, in the procurement
371process, as specified in subsection (5), for those procurements
372subject to review under this act. At each gate, the commission
373shall determine by majority vote whether:
374     (a)  The agency has sufficiently met the requirements of
375the current phase such that the procurement may advance through
376the gate, at which point the commission shall grant approval and
377the procurement shall advance to the next phase;
378     (b)  Additional work must be completed in order to satisfy
379the requirements of the center for the phase under consideration
380before the procurement may advance through the gate to the next
381phase, at which point the commission shall withhold approval and
382the procurement shall not advance; or
383     (c)  The procurement is not a good business decision and
384should not be made, at which point the commission shall deny the
385procurement and the procurement shall be removed from
388Notwithstanding the provisions of this section, the commission
389may not deny procurements which are required by law. If the
390commission believes that a denial would be appropriate for such
391a procurement, the commission shall withhold approval and
392transmit to the President of the Senate, the Speaker of the
393House of Representatives, and the Governor the reasons why the
394procurement should not be completed and any recommendation for
395legislative action. If the President of the Senate or the
396Speaker of the House of Representatives has not responded in 14
397days, the commission shall proceed at its discretion.
399Notwithstanding any law to the contrary, agencies under the
400individual control of the Attorney General, the Chief Financial
401Officer, or the Commissioner of Agriculture are subject to the
402provisions of ss. 287.0571-287.0577, except that the commission
403shall not grant, withhold, or deny approval of a procurement by
404such agency but instead may only provide recommendations to the
405agency, and the approval of the commission shall not be required
406for the agency to take any action in regard to the procurement.
407The respective agency head shall have sole authority to grant,
408withhold, or deny approval of such procurement.
409     (5)  The gates comprising the centralized gate process
410shall be established and designated as provided in paragraphs
411(a)-(e) and shall require, at a minimum, submission by the
412agency and review by the commission of the following documents:
413     (a)  The proposal identification gate, which shall include
414the business case.
415     (b)  The procurement preparation gate, which shall include
416the updated business case and the solicitation documents prior
417to the issuance of such documents. An agency may not release
418solicitation documents without the commission's approval at this
420     (c)  The contract development gate, which shall include the
421updated business case and the proposed unexecuted contract. An
422agency may not execute the contract without the commission's
423approval at this gate.
424     (d)  The transition management gate, which shall include
425the updated business case and, for a procurement of contractual
426services, an analysis of the agency's and contractor's readiness
427for the contractor to perform the proposed responsibility or
428function.  An agency may not transition to contractor
429performance without the commission's approval at this gate.
430     (e)  The post-implementation gate, which shall include the
431updated business case and a report on the adequacy of contractor
433     (6)  If the commission withholds approval of a proposed
434procurement, the agency may request that the review of the
435procurement be repeated at a future commission meeting.
436     (7)  Any executed contract for a procurement required to
437pass through the centralized gate process pursuant to this
438section shall be null and void if:
439     (a)  The procurement does not pass through the centralized
440gate process; or
441     (b)  The agency executes a contract without the
442commission's approval at the contract development gate.
444This subsection does not apply to procurements which the
445commission does not prioritize for review pursuant to subsection
447     Section 7.  Section 287.0577, Florida Statutes, is created
448to read:
449     287.0577  Requirements for procurement of certain
450contractual services.--In addition to the other applicable
451requirements of this chapter, an agency shall comply with the
452requirements of subsections (1)-(4) for a procurement of
453contractual services subject to review under s. 287.0576:
454     (1)  BUSINESS CASE.--The agency shall develop a business
455case which describes and analyzes the procurement. The business
456case is not subject to challenge or protest pursuant to ch. 120.
457The business case shall include, but not be limited to, the
458following information:
459     (a)1.  A detailed description of the function or
460responsibility for which the procurement is proposed, including
461the reasons why the function or responsibility is not inherently
463     2.  If the agency is currently performing the function or
464responsibility, a description and analysis of the agency's
465current performance, including, but not limited to, baseline
466costs and performance metrics;
467     3.  The goals desired to be achieved through the
468procurement and the rationale for such goals; and
469     4.  A citation of the existing or proposed legal authority
470for contracting for the function or responsibility.
471     (b)1.  A description of available options for achieving the
472goals. If state employees are currently performing the function
473or responsibility, an option involving maintaining state
474provision of the function or responsibility shall be included.
475     2.  For options involving procurement of a contractual
476service, a description of the current market for such service.
477     3.  An analysis of the advantages and disadvantages of each
478option, including, at a minimum, potential performance
479improvements and risks.
480     (c)  A cost-benefit analysis documenting the direct and
481indirect specific baseline costs, savings, and qualitative and
482quantitative benefits involved in or resulting from the
483implementation of the recommended option or options. Such
484analysis shall specify the schedule that, at a minimum, must be
485adhered to in order to achieve the estimated savings. All
486elements of cost shall be clearly identified in the cost-benefit
487analysis, described in the business case, and supported by
488applicable records and reports. The agency head shall certify
489that all projected costs, savings, and benefits are valid and
490achievable. "Cost" means the reasonable, relevant, and
491verifiable cost which may include, but not be limited to,
492elements such as personnel costs, materials and supplies,
493services, equipment, capital depreciation costs, rent,
494maintenance and repairs, utilities, insurance, personnel travel,
495overhead, and interim and final payments. The appropriate
496elements shall depend on the nature of the specific initiative.
497"Savings" means the difference between the direct and indirect
498actual annual baseline costs compared to the projected annual
499cost for the contracted functions or responsibilities in any
500succeeding state fiscal year during the term of the contract.
501     (d)  A description of variance among agency policies and
502processes and a plan to standardize, consolidate, or revise
503current policies and processes, if any, to reduce the
504customization of any proposed solution that would otherwise be
506     (e)  A description of the specific performance standards
507that must, at a minimum, be met to ensure adequate performance.
508     (f)  A statement of the potential impact on state revenues
509and expenditures for the period beginning with the execution of
510a contract and extending for 5 years after full implementation
511of the contract or for the term of the contract, whichever is
512longer. The statement shall specifically describe the effect on
513general revenue, trust funds, general revenue service charges,
514and interest on trust funds together with the potential direct
515or indirect effect on federal funding and cost allocations.
516     (g)  The projected timeframe for key events, from the
517beginning of the procurement process through the expiration of a
519     (h)  A plan to ensure compliance with public records law
520which must include components that:
521     1.  Provide public access to public records at a cost that
522does not exceed that provided in chapter 119.
523     2.  Ensure the confidentiality of records that are exempt
524or confidential under law.
525     3.  Meet all legal requirements for record retention
526provided by law.
527     4.  Require transfer to the state, at no cost, of all
528public records in possession of the contractor upon termination
529of the contract.
530     (i)  A specific and feasible contingency plan addressing
531contractor nonperformance and a description of the tasks
532involved in and costs required for its implementation.
533     (j)  An agency transition plan for addressing changes in
534organizational structure, affected business processes, employee
535transition issues, and communication with affected stakeholders,
536such as agency clients and the public. The transition plan shall
537contain a reemployment and retraining assistance plan for
538employees who are not retained by the agency or employed by the
540     (k)  A listing of any assets proposed for surplus.
541     (l)  A plan for ensuring access by persons with
542disabilities in compliance with applicable state and federal
545If a contractual services procurement would require integration
546with or would in any way impact other state information
547technology systems, the agency shall submit the feasibility
548study documentation as required by the legislative budget
549request instructions established pursuant to s. 216.023.
550     (2)  SOLICITATION REQUIREMENTS.--The solicitation for a
551contractual services procurement shall include, at a minimum:
552     (a)  A detailed description of the function or
553responsibility under consideration for contracting and, if the
554function or responsibility is currently being performed by an
555agency, a description and analysis of the agency's current
557     (b)  Requirements that are achievable, unambiguous,
558measurable, meaningful, and complete.
559     (c)  The criteria that after contract execution will be
560used to assess contractor performance and the minimum acceptable
561contractor performance levels.
562     (3)  CONTRACT REQUIREMENTS.-- At a minimum, the written
563contract shall include:
564     (a)  Specific terms and conditions providing a clearly
565defined scope of work that is directly related to the goals and
566objectives of the procurement. The terms must include:
567     1.  A detailed scope of work that clearly specifies each
568service and deliverable to be provided.
569     2.  All service-level agreements describing all necessary
570performance requirements and responsibilities of the state and
571the contractor.
572     3.  Associated costs and savings, specific payment terms,
573including incentive, disincentive, and penalty provisions,
574criteria governing payment, and a clear and specific project
576     (b)  Specific identification of all required performance
577measures and levels that shall include, but not be limited to:
578     1.  Acceptance criteria for each deliverable and service to
579be provided to the state under the terms of the contract, which
580document to the greatest extent possible the required
581performance level. Acceptance criteria must be detailed, clear,
582and unambiguous and shall be used to measure deliverables and
583services under the contract. Payment shall be tied to successful
584production of deliverables.
585     2.  A method for monitoring and reporting progress in
586achieving specified performance outcomes and associated
587performance incentives.
588     3.  The sanctions or penalties that shall be assessed for
589nonperformance by the contractor.
590     (c)  A description of deliverables, activities, or events
591that are directly related to the scope of work which must be
592quantifiable, measurable, and verifiable.
593     (d)  A management plan for organizational change that
594clearly identifies any changes in organizational structure,
595including staffing and personnel changes in all affected
596agencies. Such plan must specify a feasible mechanism for
597continuing the operation of the service if the contractor fails
598to comply with the performance standards in the contract.
599     (e)  A requirement that the contractor maintain adequate
600accounting records that comply with all applicable federal and
601state laws and generally accepted accounting principles.
602     (f)  A requirement authorizing state access to and audit of
603all records related to the contract or any responsibilities or
604functions under the contract for state audit and legislative
605oversight purposes and a requirement for service organization
606audits in accordance with professional auditing standards, if
608     (g)  A requirement that ownership of any intellectual
609property critical for the assumption of the contracted function
610or responsibility by the state or another contractor shall
611revert to the state in the event the contractor ceases to
612provide the contracted function or responsibility.
613     (h)  A requirement describing the timing and substance of
614all status or progress reports that are to be provided under the
615contract. All such reports must comply with any relevant state
616and federal standards for planning, implementation, operations,
617and oversight.
618     (i)  A requirement that the contractor comply with the
619public records law. The contractor shall:
620     1.  Keep and maintain the public records that an agency
621would ordinarily and necessarily be required to keep and
622maintain in the performance of the function or responsibility.
623     2.  Provide public access to such public records on the
624same terms and conditions required of an agency at a cost that
625does not exceed that provided in chapter 119.
626     3.  Ensure the confidentiality of records which are exempt
627or confidential under law.
628     4.  Meet all legal requirements for record retention.
629     5.  Transfer to the state, at no cost to the state, all
630public records in the possession of the contractor upon
631termination of the contract and destroy at a minimum any
632duplicate public records which are exempt and confidential. All
633records that are stored electronically must be provided to the
634state in a format compatible with state information technology
636     (j)  A requirement that the contractor shall interview and
637consider for employment with the contractor each impacted state
638employee who is interested in such employment.
639     (k)  Provisions requiring that venue for any action
640regarding the contract shall be in Leon County and that the
641contract shall be interpreted according to the laws of this
643     (4)  REPORTS.--During the term of the contract, the agency
644shall annually submit with its legislative budget request a
645project status report for each procurement which has passed
646through at least the first three gates of the centralized gate
647process, describing the progress made to date, actual completion
648dates in comparison to planned completion dates, actual costs
649incurred in comparison to projected costs incurred, current
650issues requiring resolution, planned project milestones,
651deliverables, and expenditures for the next reporting period and
652any other information relating to the contractual services that
653may be requested.
654     Section 8.  Section 216.1817, Florida Statutes, is created
655to read:
656     216.1817  Limitation on budgetary changes for contractual
657services procurement; placement of positions in reserve; re-
658establishment of positions.--
659     (1)  Any budgetary changes for a contractual services
660procurement that are inconsistent with the agency's approved
661budget may not be made to existing programs unless such changes
662are recommended to the Legislative Budget Commission by the
663Governor, and the Legislative Budget Commission expressly
664approves such program changes.
665     (2)  If a procurement of contractual services involves the
666performance of functions or responsibilities that are being
667shifted from state employees to a contractor, the agency shall
668identify within the business case prepared pursuant to s.
669287.0577 all resources which are affected, including full-time
670equivalent positions. All full-time equivalent positions
671identified in the business case shall be placed in reserve by
672the Executive Office of the Governor until the end of the second
673year of the contract. Notwithstanding the provisions of s.
674216.262, the Executive Office of the Governor shall request
675authority from the Legislative Budget Commission to reestablish
676full-time equivalent positions above the number fixed by the
677Legislature when a contract is terminated and the performance of
678the functions or responsibilities must be returned to the
680     Section 9.  The Center for Efficient Government and the
681Commission on Efficient Government shall terminate on July 1,
6822010, unless reenacted by the Legislature prior to that date. It
683is the intent of the Legislature that, beginning July 1, 2010,
684the various state agencies shall perform the review functions
685required under this act for procurements of contractual services
686under their jurisdiction. It is also the intent of the
687Legislature that beginning July 1, 2010, the positions
688authorized by this act shall remain with the Department of
689Management Services, which shall continue providing technical
690assistance as required in this act.
691     Section 10.  Section 14.203, Florida Statutes, is repealed.
692     Section 11.  There is hereby appropriated $2 million
693recurring budget authority to the Department of Management
694Services from the General Revenue Fund, and 16 full-time
695equivalent positions are authorized, to carry out the activities
696of the Center for Efficient Government and the Commission on
697Efficient Government as provided in this act.
698     Section 12.  Section 287.0572, Florida Statutes, is
699renumbered as section 287.0579, Florida Statutes:
700     287.0579 287.0572  Present-value methodology.--
701     (1)  The cost of bids, proposals, or replies for state
702contracts that include provisions for unequal payment streams or
703unequal time payment periods shall be evaluated using present-
704value methodology. Each agency, as defined in s. 287.012(1),
705shall perform the evaluation using the present-value discount
706rate supplied by the department. The present-value discount rate
707shall be the rate for United States Treasury notes and bonds
708published in the Interest Rates: Money and Capital Markets
709section of the most recent copy of the Federal Reserve Bulletin
710published at the time of issuance of the request for proposals,
711the invitation to negotiate, or the invitation to bid.
712     (2)  The department may adopt rules to administer
713subsection (1).
714     Section 13.  Subsection (3) of section 119.0721, Florida
715Statutes, is amended to read:
716     119.0721  Social security number exemption.--
717     (3)  An agency shall not deny a commercial entity engaged
718in the performance of a commercial activity, which for purposes
719of this subsection means an activity that provides a product or
720service that is available from a private source, as defined in
721s. 14.203 or its agents, employees, or contractors access to
722social security numbers, provided the social security numbers
723will be used only in the normal course of business for
724legitimate business purposes, and provided the commercial entity
725makes a written request for social security numbers, verified as
726provided in s. 92.525, legibly signed by an authorized officer,
727employee, or agent of the commercial entity. The verified
728written request must contain the commercial entity's name,
729business mailing and location addresses, business telephone
730number, and a statement of the specific purposes for which it
731needs the social security numbers and how the social security
732numbers will be used in the normal course of business for
733legitimate business purposes. The aggregate of these requests
734shall serve as the basis for the agency report required in
735subsection (7). An agency may request any other information as
736may be reasonably necessary to verify the identity of the entity
737requesting the social security numbers and the specific purposes
738for which such numbers will be used; however, an agency has no
739duty to inquire beyond the information contained in the verified
740written request. A legitimate business purpose includes
741verification of the accuracy of personal information received by
742a commercial entity in the normal course of its business; use in
743a civil, criminal, or administrative proceeding; use for
744insurance purposes; use in law enforcement and investigation of
745crimes; use in identifying and preventing fraud; use in
746matching, verifying, or retrieving information; and use in
747research activities. A legitimate business purpose does not
748include the display or bulk sale of social security numbers to
749the general public or the distribution of such numbers to any
750customer that is not identifiable by the distributor.
751     Section 14.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.
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