September 26, 2020
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HB 1835CS

CHAMBER ACTION




1The State Administration Appropriations Committee recommends the
2following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
7
A bill to be entitled
8An act relating to procurement of contractual services by
9an agency; amending s. 20.22, F.S.; placing the Center for
10Efficient Government in the Department of Management
11Services; creating s. 287.0571, F.S.; providing that
12procurements of specified commodities and services are not
13subject to the act; creating s. 287.0573, F.S.; providing
14definitions; creating s. 287.0574, F.S.; providing
15criteria for the procurement of contractual services by an
16agency; creating s. 287.0575, F.S.; creating the
17Commission on Efficient Government within the Department
18of Management Services; providing for purpose, membership,
19and organization of the commission; providing duties and
20responsibilities of the commission; creating the Center
21for Efficient Government; providing purpose and
22organization of the center; providing duties and
23responsibilities of the center; requiring the center to
24create a centralized gate process for reviewing,
25evaluating, and approving agency procurements; providing
26that the commission, the center, and activities related to
27the implementation of the centralized gate process are not
28subject to the rulemaking requirements of ch. 120, F.S.;
29requiring state agencies to submit specified information,
30documents, and other materials required under policies of
31the commission or the center; creating s. 287.0576, F.S.;
32specifying procurements which must be reviewed and
33evaluated under the centralized gate process; providing
34minimum requirements for the centralized gate process;
35providing for specified determinations by the commission
36at each gate; providing procedure with respect to a
37recommendation by the commission of denial of a
38procurement required by law; providing that agencies under
39the individual control of the Attorney General, Chief
40Financial Officer, or Commissioner of Agriculture are
41subject to the act, with specified exceptions; providing
42authority of the agency head with respect to procurements
43by such agencies; establishing the gates within the
44centralized gate process; requiring agencies to submit
45specified documents for commission review; providing for
46nullification of executed contracts for procurement under
47specified circumstances; providing for legislative review
48of an agency's appropriations upon a determination that
49the agency has violated the provisions of the act;
50creating s. 287.0577, F.S.; providing requirements for
51procurement of certain contractual services; requiring an
52agency to develop a business case which describes and
53analyzes a contractual services procurement under
54consideration; providing required components of a business
55case; defining "cost" and "savings"; providing
56requirements with respect to the solicitation for a
57contractual services procurement; providing contract
58requirements for a contractual services procurement;
59requiring the submission of specified annual reports;
60creating s. 216.1817, F.S.; permitting budgetary changes
61for a contractual services procurement only under
62specified conditions; requiring the placement of full-time
63equivalent positions in reserve under certain conditions;
64providing for the reestablishment of full-time equivalent
65positions upon termination of a contract and reversion of
66functions and responsibilities to the agency; providing
67for future termination of the Center for Efficient
68Government and the Commission on Efficient Government;
69providing legislative intent with respect to the
70performance of review functions and assistance to agencies
71for procurements of contractual services by state agencies
72after a specified date; providing that positions
73authorized under the act shall remain with the Department
74of Management Services after a specified date; repealing
75s. 14.203, F.S., which creates the State Council on
76Competitive Government and provides duties and authority
77of the council; providing an appropriation; providing
78full-time equivalent positions; amending s. 119.0721,
79F.S.; removing a cross reference; clarifying the meaning
80of "commercial activity" to conform to the removal of the
81reference; providing an effective date.
82
83     WHEREAS, the private sector can often perform services with
84greater efficiency and effectiveness at a lower cost than the
85state, and
86     WHEREAS, the state has long been a leader in innovative
87practices, in part because of its partnerships with the private
88sector, and
89     WHEREAS, the state desires to reap the benefits of lower
90costs, high quality, and innovation by working closely with the
91private sector, and
92     WHEREAS, the state still maintains responsibility for
93ensuring that the services performed by the private sector on
94behalf of the state are of high quality, provided cost-
95effectively, and appropriate for private provision, and
96     WHEREAS, leading businesses have developed best practices
97to determine what to obtain from the market and how to ensure
98that such services are provided at the desired quality and at
99the appropriate cost, and
100     WHEREAS, the executive branch has made great progress in
101promoting the use of such best practices, and the citizens of
102the state could benefit by the increased adoption across state
103government of such best practices, NOW, THEREFORE,
104
105Be It Enacted by the Legislature of the State of Florida:
106
107     Section 1.  Paragraph (i) is added to subsection (2) of
108section 20.22, Florida Statutes, to read:
109     20.22  Department of Management Services.--There is created
110a Department of Management Services.
111     (2)  The following divisions and programs within the
112Department of Management Services are established:
113     (i)  Center for Efficient Government.
114     Section 2.  Section 287.0571, Florida Statutes, is created
115to read:
116     287.0571  Applicability of ss. 287.0571-287.0577.--
117Procurements of commodities and contractual services listed in
118s. 287.057(5)(e), (f), and (g) shall not be subject to ss.
119287.0571-287.0577.
120     Section 3.  Section 287.0573, Florida Statutes, is created
121to read:
122     287.0573  Definitions.--For the purposes of ss. 287.0571-
123287.0571-287.0577:
124     (1)  "Center" means the Center for Efficient Government
125established under s. 287.0575(2).
126     (2)  "Centralized gate process" means the system of review
127phases established under s. 287.0576 for a proposed procurement
128of contractual services, the conclusion of each phase being a
129"gate" or decision point at which the commission determines
130whether the procurement under consideration may proceed to the
131next phase.
132     (3)  "Commission" means the Commission on Efficient
133Government established under s. 287.0575(1).
134     (4)  "Inherently governmental function or responsibility"
135means a function or responsibility which entails the exercise of
136sovereign power and is therefore so intimately related to the
137public interest that it mandates performance by a public officer
138or a public employee upon whom the public officer has delegated
139authority for the performance of such acts. Inherently
140governmental functions or responsibilities include those
141activities which require either the exercise of discretion in
142applying governmental authority or the use of value judgment in
143making decisions for the government. Inherently governmental
144functions or responsibilities are categorized as follows:
145     (a)  The act of governing or discretionary exercise of
146governmental authority which includes, but is not limited to,
147such activities as criminal investigations, prosecutions, and
148other judicial functions; management of government programs
149requiring value judgments; selection of program priorities;
150regulation of natural resources; regulation of industry and
151commerce; determination of agency policy, including, but not
152limited to, determining the content and application of
153regulations; binding the state by contract, policy, regulation,
154authorization, order, or otherwise; commissioning, appointing,
155directing, selecting, or controlling state officers or
156employees; approval of position descriptions and performance
157standards for state employees; exertion of ultimate control over
158the acquisition, use, or disposition of the real, personal,
159tangible, or intangible property of the state, including the
160collection, control, or disbursement of state funds; awarding,
161administering, and terminating contracts; determining whether
162contract costs are reasonable, allocable, and allowable;
163approval of contractual documents; approval of state licensing
164actions and inspections; determination of budget policy,
165guidance, and strategy.
166     (b)  Monetary transactions and entitlements which include,
167but are not limited to, tax collection and revenue
168disbursements; control of state funds; and the administration of
169public trusts.
170
171Inherently governmental functions or responsibilities do not
172include gathering information for or providing advice, opinions,
173recommendations, or ideas to state officials. They do not
174include functions that are primarily ministerial and internal in
175nature, such as building security, mail operations, operation of
176cafeterias, housekeeping, facilities operations and maintenance,
177warehouse operations, motor vehicle fleet management operations,
178or other routine electrical or mechanical services.
179     Section 4.  Section 287.0574, Florida Statutes, is created
180to read:
181     287.0574  Criteria for procurement of contractual
182services.--An agency may procure a contractual service only if:
183     (1)  The procurement does not involve the performance by a
184contractor of an inherently governmental function or
185responsibility; and
186     (2)  Upon full implementation of a procurement in which the
187performance of functions or responsibilities are shifted from
188state employees to a contractor, the implementation results in
189reasonable cost savings while maintaining at least the same
190quality of service or reasonably increases the quality of
191service while not exceeding the same level of cost.
192     Section 5.  Section 287.0575, Florida Statutes, is created
193to read:
194     287.0575  Commission on Efficient Government; membership;
195duties; Center for Efficient Government; duties.--
196     (1)  The Commission on Efficient Government is created
197within the Department of Management Services to oversee the
198Center for Efficient Government and carry out the
199responsibilities specified in this section.
200     (a)  The commission shall consist of seven members
201appointed by the Governor:
202     1.  Three members shall be heads of executive branch
203agencies.
204     2.  Four members shall be from the private sector and have
205significant relevant business experience but shall not be
206employed by or have a business relationship with any entity that
207seeks to contract with or has a contract with the state during
208the member's term on the commission. If feasible, the four
209private-sector members shall collectively have experience with
210procurement, successfully increasing operational efficiency, and
211implementing complex projects.
212     (b)  By August 1, 2005, the Governor shall appoint two
213private-sector members and two agency heads for terms of 3 years
214and two private-sector members and one agency head for terms of
2154 years. Thereafter, each member shall serve for a term of 4
216years. The private-sector members shall serve without
217compensation but shall be entitled to reimbursement for per diem
218and travel expenses pursuant to s. 112.061.
219     (c)  No member of the commission who is the head of an
220executive branch agency shall be disqualified from participating
221in commission review of a procurement because his or her agency
222is involved in the procurement.
223     (d)  The members of the commission may not delegate their
224membership to a designee.
225     (e)  A quorum shall consist of at least four members,
226including at least one member who is an agency head.
227     (f)  Any vacancy on the commission shall be filled in the
228same manner as the original appointment, and any member
229appointed to fill a vacancy occurring for a reason other than
230the expiration of a term shall serve only for the unexpired term
231of the member's predecessor.
232     (g)  At the first meeting of the commission after August 1,
2332005, the members of the commission shall elect, by majority
234vote of those in attendance, a member to serve as chair of the
235commission. No later than September 1 of each succeeding year,
236the commission shall elect a new chair.
237     (h)  The commission shall:
238     1.  Oversee the Center for Efficient Government.
239     2.  Review and approve the centralized gate process created
240by the center under subsection (2).
241     3.  Review, evaluate, and grant approval of, withhold
242approval of, or deny approval of a proposed procurement at the
243gates established within the centralized gate process. The
244commission shall determine the criteria regarding which
245procurements must pass through the centralized gate process.
246Such procurements shall include, at a minimum, those subject to
247the requirements of s. 287.0576.
248     4.  Approve standards, processes, templates, and guidelines
249for use by agencies during the procurement process which shall,
250at a minimum, include the requirements under s. 287.0577 for
251procurements of contractual services.
252     5.  Implement a plan for providing information and
253documentation to the Legislature and the Governor on behalf of
254agencies and in compliance with the provisions of this chapter.
255The system shall include, at a minimum, providing copies of
256documents to be reviewed by the commission to the President of
257the Senate, the Speaker of the House of Representatives, the
258Governor, and the chairs of the relevant appropriations and
259substantive legislative committees at least 14 days prior to the
260meeting of the commission at which the proposed procurement will
261be discussed.
262     6.  Review the performance of procurements which have
263advanced through the full centralized gate process.
2647.  Beginning October 15, 2005, submit to the Executive
265Office of the Governor, the President of the Senate, the Speaker
266of the House of Representatives, and the chairs of the
267legislative appropriations committees a quarterly report
268describing the activities of the center and the actions taken by
269the commission during the previous quarter.
270     (2)  The Center for Efficient Government is created in the
271department to establish and promote best business practices so
272that the delivery of services to citizens of the state may be
273provided in the most effective and cost-efficient manner
274possible. The secretary of the department shall appoint a
275director of the center. The center shall have the following
276duties and responsibilities:
277     (a)  Create a centralized gate process for reviewing,
278evaluating, and approving agency procurements which, at a
279minimum, shall include the requirements contained in s. 287.0576
280for contractual services procurements.
281     (b)  Provide information, training, and technical
282assistance to agencies on the use of the standards, processes,
283templates, and guidelines developed for use by agencies during
284the procurement process.
285     (c)  Provide support and assistance to the commission,
286including, but not limited to, reviewing and validating agency
287business cases, developing standards, processes, templates, and
288guidelines for use by agencies during the procurement process
289and providing information and documentation as requested or
290required by law.
291     (d)  Assist agencies directly in the procurement process as
292needed to ensure a high-quality procurement, including, but not
293limited to, developing and updating business cases, drafting
294solicitation and contract documents, participating in contract
295negotiations, identifying performance measures, and advising
296agencies on performance measurement, contract management, and
297change management. To carry out this responsibility, the
298department shall employ an adequate number of highly skilled,
299credentialed staff who collectively possess significant
300expertise and experience in these areas.
301     (e)  Collect data and information from agencies on an
302ongoing basis with regard to the status and results of
303procurements which have advanced completely through the
304centralized gate process and recommend incorporation of any
305lessons learned from such projects into center standards,
306processes, templates, and guidelines, as appropriate, and
307identify and disseminate to agencies information regarding best
308practices in procurement, particularly contractual services
309procurements.
310     (f)  Develop and implement, in consultation with the Agency
311for Workforce Innovation, guidelines for assisting employees
312whose jobs are eliminated as a result of procurements.
313     (3)  The center and commission and the activities conducted
314by the department pursuant to this act to implement the
315centralized gate process and provide assistance and information
316shall not be subject to the rulemaking requirements of chapter
317120.
318     (4)  Agencies shall submit to the center all information,
319documents, or other materials required by center or commission
320policy or this chapter.
321     Section 6.  Section 287.0576, Florida Statutes, is created
322to read:
323     287.0576  Review and analysis of proposed procurement of
324contractual services; centralized gate process.--
325     (1)  At a minimum, the following procurements shall be
326required to undergo review and analysis through the centralized
327gate process established by the Center for Efficient Government:
328     (a)  Contractual services procurements which have a total
329cost of $10 million or more annually.
330     (b)  New contractual services procurements that will
331require adjustments to the agency's budget in accordance with
332chapter 216. Amendments to existing contracts are excluded.
333     (c)  Contractual services procurements that do not involve
334an outlay of state funds totaling $10 million or more annually
335because of the provision of services by the contractor at a rate
336significantly below market rate, the significant investment of
337other resources by the agency, or other reason, but in which the
338total value of the services performed by the agency and
339contractor under the contract is estimated to total $10 million
340or more annually. Examples of such procurements include, but are
341not limited to, free, no-cost, or codevelopment contracts.
342     (d)  Contractual services procurements for which the sum of
343gross revenues or shared savings to be generated for the state
344and contractor over the term of the contract plus the sum of any
345payments to the contractor by the agency over the term of the
346contract, if any, totals $10 million or more annually.
347     (e)  Contractual services procurements which the
348Legislature has directed to advance through the centralized gate
349process.
350     (2)  Extensions and renewals of procurements in paragraphs
351(1)(a)-(e) shall be required to undergo review and analysis
352through the centralized gate process established by the Center
353for Efficient Government though, notwithstanding any law to the
354contrary, such procurements shall only be required to pass
355through such gates as the commission determines are appropriate.
356
357For purposes of determining whether a procurement meets the
358requirements of this subsection, multiple contractual services
359procurements for substantially similar or related functions or
360responsibilities occurring in a coordinated fashion or in close
361time proximity to one another shall be considered a single
362contractual services procurement for purposes of meeting the
363thresholds for this section.
364     (3)  If the volume of projects required to pass through the
365centralized gate process pursuant to subsection (1) exceeds the
366capacity of the commission and center to process them, the
367commission shall prioritize the projects for commission review
368and center assistance based upon criteria it shall determine,
369which shall, at a minimum, include consideration of the
370estimated contract cost, impact on the public, impact on state
371employees, complexity, and potential risk of the procurement.
372For projects required to pass through the centralized gate
373process that the commission does not prioritize for review, the
374agency shall instead conduct its own review based upon the
375standards, processes, templates, and guidelines of the
376commission and shall provide information to the Legislature at
377least 14 days prior to agency approval at each gate in
378accordance with s. 287.0575(1)(h)5. The commission shall report
379to the President of the Senate, the Speaker of the House of
380Representatives, and the Governor if it is required to
381prioritize projects pursuant to this subsection.
382     (4)  The centralized gate process shall require, at a
383minimum, review of the procurement by the commission at the
384conclusion of important stages, or gates, in the procurement
385process, as specified in subsection (5), for those procurements
386subject to review under this act. At each gate, the commission
387shall determine by unanimous vote whether:
388     (a)  The agency has sufficiently met the requirements of
389the current phase such that the procurement may advance through
390the gate, at which point the commission shall grant approval and
391the procurement shall advance to the next phase;
392     (b)  Additional work must be completed in order to satisfy
393the requirements of the center for the phase under consideration
394before the procurement may advance through the gate to the next
395phase, at which point the commission shall withhold approval and
396the procurement shall not advance; or
397     (c)  The procurement is not a good business decision and
398should not be made, at which point the commission shall deny the
399procurement and the procurement shall be removed from
400consideration.
401
402Notwithstanding the provisions of this section, the commission
403may not deny procurements which are required by law. If the
404commission believes that a denial would be appropriate for such
405a procurement, the commission shall withhold approval and
406transmit to the President of the Senate, the Speaker of the
407House of Representatives, and the Governor the reasons why the
408procurement should not be completed and any recommendation for
409legislative action. If the President of the Senate or the
410Speaker of the House of Representatives has not responded in 14
411days, the commission shall proceed at its discretion.
412
413Notwithstanding any law to the contrary, agencies under the
414individual control of the Attorney General, the Chief Financial
415Officer, or the Commissioner of Agriculture are subject to the
416provisions of ss. 287.0571-287.0577, except that the commission
417shall not grant, withhold, or deny approval of a procurement by
418such agency but instead may only provide recommendations to the
419agency, and the approval of the commission shall not be required
420for the agency to take any action in regard to the procurement.
421The respective agency head shall have sole authority to grant,
422withhold, or deny approval of such procurement.
423     (5)  The gates comprising the centralized gate process
424shall be established and designated as provided in paragraphs
425(a)-(e) and shall require, at a minimum, submission by the
426agency and review by the commission of the following documents:
427     (a)  The proposal identification gate, which shall include
428the business case.
429     (b)  The procurement preparation gate, which shall include
430the updated business case and the solicitation documents prior
431to the issuance of such documents. An agency may not release
432solicitation documents without the commission's approval at this
433gate.
434     (c)  The contract development gate, which shall include the
435updated business case and the proposed unexecuted contract. An
436agency may not execute the contract without the commission's
437approval at this gate.
438     (d)  The transition management gate, which shall include
439the updated business case and, for a procurement of contractual
440services, an analysis of the agency's and contractor's readiness
441for the contractor to perform the proposed responsibility or
442function.  An agency may not transition to contractor
443performance without the commission's approval at this gate.
444     (e)  The post-implementation gate, which shall include the
445updated business case and a report on the adequacy of contractor
446performance.
447     (6)  If the commission withholds approval of a proposed
448procurement, the agency may request that the review of the
449procurement be repeated at a future commission meeting.
450     (7)  Any executed contract for a procurement required to
451pass through the centralized gate process pursuant to this
452section shall be null and void if:
453     (a)  The procurement does not pass through the centralized
454gate process; or
455     (b)  The agency executes a contract without the
456commission's approval at the contract development gate.
457
458This subsection does not apply to procurements which the
459commission does not prioritize for review pursuant to subsection
460(3).
461     (8)  Unless otherwise exempted from the provisions of this
462act, any agency that violates the provisions of this act shall
463be subject to a review by the Auditor General of actions taken
464by the agency.  The Auditor General shall provide a report of
465findings to the Speaker of the House, the President of the
466Senate, the chairs of the legislative appropriations committees,
467and the Executive Office of the Governor.  If the Auditor
468General finds that the agency has violated the recommendations
469of the commission or the provisions of this act, the Legislature
470shall conduct an immediate review of the agency's appropriations
471to determine the appropriate actions to be taken for placing the
472agency's funds in mandatory reserve.
473     Section 7.  Section 287.0577, Florida Statutes, is created
474to read:
475     287.0577  Requirements for procurement of certain
476contractual services.--In addition to the other applicable
477requirements of this chapter, an agency shall comply with the
478requirements of subsections (1)-(4) for a procurement of
479contractual services subject to review under s. 287.0576:
480     (1)  BUSINESS CASE.--The agency shall develop a business
481case which describes and analyzes the procurement. The business
482case is not subject to challenge or protest pursuant to ch. 120.
483The business case shall include, but not be limited to, the
484following information:
485     (a)1.  A detailed description of the function or
486responsibility for which the procurement is proposed, including
487the reasons why the function or responsibility is not inherently
488governmental;
489     2.  If the agency is currently performing the function or
490responsibility, a description and analysis of the agency's
491current performance, including, but not limited to, baseline
492costs and performance metrics;
493     3.  The goals desired to be achieved through the
494procurement and the rationale for such goals; and
495     4.  A citation of the existing or proposed legal authority
496for contracting for the function or responsibility.
497     (b)1.  A description of available options for achieving the
498goals. If state employees are currently performing the function
499or responsibility, an option involving maintaining state
500provision of the function or responsibility shall be included.
501     2.  For options involving procurement of a contractual
502service, a description of the current market for such service.
503     3.  An analysis of the advantages and disadvantages of each
504option, including, at a minimum, potential performance
505improvements and risks.
506     (c)  A cost-benefit analysis documenting the direct and
507indirect specific baseline costs, savings, and qualitative and
508quantitative benefits involved in or resulting from the
509implementation of the recommended option or options. Such
510analysis shall specify the schedule that, at a minimum, must be
511adhered to in order to achieve the estimated savings. All
512elements of cost shall be clearly identified in the cost-benefit
513analysis, described in the business case, and supported by
514applicable records and reports. The agency head shall certify
515that all projected costs, savings, and benefits are valid and
516achievable. "Cost" means the reasonable, relevant, and
517verifiable cost which may include, but not be limited to,
518elements such as personnel costs, materials and supplies,
519services, equipment, capital depreciation costs, rent,
520maintenance and repairs, utilities, insurance, personnel travel,
521overhead, and interim and final payments. The appropriate
522elements shall depend on the nature of the specific initiative.
523"Savings" means the difference between the direct and indirect
524actual annual baseline costs compared to the projected annual
525cost for the contracted functions or responsibilities in any
526succeeding state fiscal year during the term of the contract.
527     (d)  A description of variance among agency policies and
528processes and a plan to standardize, consolidate, or revise
529current policies and processes, if any, to reduce the
530customization of any proposed solution that would otherwise be
531required.
532     (e)  A description of the specific performance standards
533that must, at a minimum, be met to ensure adequate performance.
534     (f)  A statement of the potential impact on state revenues
535and expenditures for the period beginning with the execution of
536a contract and extending for 5 years after full implementation
537of the contract or for the term of the contract, whichever is
538longer. The statement shall specifically describe the effect on
539general revenue, trust funds, general revenue service charges,
540and interest on trust funds together with the potential direct
541or indirect effect on federal funding and cost allocations.
542     (g)  The projected timeframe for key events, from the
543beginning of the procurement process through the expiration of a
544contract.
545     (h)  A plan to ensure compliance with public records law
546which must include components that:
547     1.  Provide public access to public records at a cost that
548does not exceed that provided in chapter 119.
549     2.  Ensure the confidentiality of records that are exempt
550or confidential under law.
551     3.  Meet all legal requirements for record retention
552provided by law.
553     4.  Require transfer to the state, at no cost, of all
554public records in possession of the contractor upon termination
555of the contract.
556     (i)  A specific and feasible contingency plan addressing
557contractor nonperformance and a description of the tasks
558involved in and costs required for its implementation.
559     (j)  An agency transition plan for addressing changes in
560organizational structure, affected business processes, employee
561transition issues, and communication with affected stakeholders,
562such as agency clients and the public. The transition plan shall
563contain a reemployment and retraining assistance plan for
564employees who are not retained by the agency or employed by the
565contractor.
566     (k)  A listing of any assets proposed for surplus.
567     (l)  A plan for ensuring access by persons with
568disabilities in compliance with applicable state and federal
569law.
570
571If a contractual services procurement would require integration
572with or would in any way impact other state information
573technology systems, the agency shall submit the feasibility
574study documentation as required by the legislative budget
575request instructions established pursuant to s. 216.023.
576     (2)  SOLICITATION REQUIREMENTS.--The solicitation for a
577contractual services procurement shall include, at a minimum:
578     (a)  A detailed description of the function or
579responsibility under consideration for contracting and, if the
580function or responsibility is currently being performed by an
581agency, a description and analysis of the agency's current
582performance.
583     (b)  Requirements that are achievable, unambiguous,
584measurable, meaningful, and complete.
585     (c)  The criteria that after contract execution will be
586used to assess contractor performance and the minimum acceptable
587contractor performance levels.
588     (3)  CONTRACT REQUIREMENTS.--At a minimum, the written
589contract shall include:
590     (a)  Specific terms and conditions providing a clearly
591defined scope of work that is directly related to the goals and
592objectives of the procurement. The terms must include:
593     1.  A detailed scope of work that clearly specifies each
594service and deliverable to be provided.
595     2.  All service-level agreements describing all necessary
596performance requirements and responsibilities of the state and
597the contractor.
598     3.  Associated costs and savings, specific payment terms,
599including incentive, disincentive, and penalty provisions,
600criteria governing payment, and a clear and specific project
601schedule.
602     (b)  Specific identification of all required performance
603measures and levels that shall include, but not be limited to:
604     1.  Acceptance criteria for each deliverable and service to
605be provided to the state under the terms of the contract, which
606document to the greatest extent possible the required
607performance level. Acceptance criteria must be detailed, clear,
608and unambiguous and shall be used to measure deliverables and
609services under the contract. Payment shall be tied to successful
610production of deliverables.
611     2.  A method for monitoring and reporting progress in
612achieving specified performance outcomes and associated
613performance incentives.
614     3.  The sanctions or penalties that shall be assessed for
615nonperformance by the contractor.
616     (c)  A description of deliverables, activities, or events
617that are directly related to the scope of work which must be
618quantifiable, measurable, and verifiable.
619     (d)  A management plan for organizational change that
620clearly identifies any changes in organizational structure,
621including staffing and personnel changes in all affected
622agencies. Such plan must specify a feasible mechanism for
623continuing the operation of the service if the contractor fails
624to comply with the performance standards in the contract.
625     (e)  A requirement that the contractor maintain adequate
626accounting records that comply with all applicable federal and
627state laws and generally accepted accounting principles.
628     (f)  A requirement authorizing state access to and audit of
629all records related to the contract or any responsibilities or
630functions under the contract for state audit and legislative
631oversight purposes and a requirement for service organization
632audits in accordance with professional auditing standards, if
633appropriate.
634     (g)  A requirement that ownership of any intellectual
635property critical for the assumption of the contracted function
636or responsibility by the state or another contractor shall
637revert to the state in the event the contractor ceases to
638provide the contracted function or responsibility.
639     (h)  A requirement describing the timing and substance of
640all status or progress reports that are to be provided under the
641contract. All such reports must comply with any relevant state
642and federal standards for planning, implementation, operations,
643and oversight.
644     (i)  A requirement that the contractor comply with the
645public records law. The contractor shall:
646     1.  Keep and maintain the public records that an agency
647would ordinarily and necessarily be required to keep and
648maintain in the performance of the function or responsibility.
649     2.  Provide public access to such public records on the
650same terms and conditions required of an agency at a cost that
651does not exceed that provided in chapter 119.
652     3.  Ensure the confidentiality of records which are exempt
653or confidential under law.
654     4.  Meet all legal requirements for record retention.
655     5.  Transfer to the state, at no cost to the state, all
656public records in the possession of the contractor upon
657termination of the contract and destroy at a minimum any
658duplicate public records which are exempt and confidential. All
659records that are stored electronically must be provided to the
660state in a format compatible with state information technology
661systems.
662     (j)  A requirement that the contractor shall interview and
663consider for employment with the contractor each impacted state
664employee who is interested in such employment.
665     (k)  Provisions requiring that venue for any action
666regarding the contract shall be in Leon County and that the
667contract shall be interpreted according to the laws of this
668state.
669     (4)  REPORTS.--During the term of the contract, the agency
670shall annually submit with its legislative budget request a
671project status report for each procurement which has passed
672through at least the first three gates of the centralized gate
673process, describing the progress made to date, actual completion
674dates in comparison to planned completion dates, actual costs
675incurred in comparison to projected costs incurred, current
676issues requiring resolution, planned project milestones,
677deliverables, and expenditures for the next reporting period and
678any other information relating to the contractual services that
679may be requested.
680     Section 8.  Section 216.1817, Florida Statutes, is created
681to read:
682     216.1817  Limitation on budgetary changes for contractual
683services procurement; placement of positions in reserve; re-
684establishment of positions.--
685     (1)  Any budgetary changes for a contractual services
686procurement that are inconsistent with the agency's approved
687budget may not be made to existing programs unless such changes
688are recommended to the Legislative Budget Commission by the
689Governor, and the Legislative Budget Commission expressly
690approves such program changes.
691     (2)  If a procurement of contractual services involves the
692performance of functions or responsibilities that are being
693shifted from state employees to a contractor, the agency shall
694identify within the business case prepared pursuant to s.
695287.0577 all resources which are affected, including full-time
696equivalent positions. All full-time equivalent positions
697identified in the business case shall be placed in reserve by
698the Executive Office of the Governor until the end of the second
699year of the contract. Notwithstanding the provisions of s.
700216.262, the Executive Office of the Governor shall request
701authority from the Legislative Budget Commission to reestablish
702full-time equivalent positions above the number fixed by the
703Legislature when a contract is terminated and the performance of
704the functions or responsibilities must be returned to the
705agency.
706     Section 9.  The Center for Efficient Government and the
707Commission on Efficient Government shall terminate on July 1,
7082010, unless reenacted by the Legislature prior to that date. It
709is the intent of the Legislature that, beginning July 1, 2010,
710the various state agencies shall perform the review functions
711required under this act for procurements of contractual services
712under their jurisdiction. It is also the intent of the
713Legislature that beginning July 1, 2010, the positions
714authorized by this act shall remain with the Department of
715Management Services, which shall continue providing technical
716assistance as required in this act.
717     Section 10.  Section 14.203, Florida Statutes, is repealed.
718     Section 11.  There is hereby appropriated $1,023,554
719recurring budget authority to the Department of Management
720Services from the General Revenue Fund, and 9 full-time
721equivalent positions are authorized, to carry out the activities
722of the Center for Efficient Government and the Commission on
723Efficient Government as provided in this act.
724     Section 12.  Section 287.0572, Florida Statutes, is
725renumbered as section 287.0579, Florida Statutes:
726     287.0579 287.0572  Present-value methodology.--
727     (1)  The cost of bids, proposals, or replies for state
728contracts that include provisions for unequal payment streams or
729unequal time payment periods shall be evaluated using present-
730value methodology. Each agency, as defined in s. 287.012(1),
731shall perform the evaluation using the present-value discount
732rate supplied by the department. The present-value discount rate
733shall be the rate for United States Treasury notes and bonds
734published in the Interest Rates: Money and Capital Markets
735section of the most recent copy of the Federal Reserve Bulletin
736published at the time of issuance of the request for proposals,
737the invitation to negotiate, or the invitation to bid.
738     (2)  The department may adopt rules to administer
739subsection (1).
740     Section 13.  Subsection (3) of section 119.0721, Florida
741Statutes, is amended to read:
742     119.0721  Social security number exemption.--
743     (3)  An agency shall not deny a commercial entity engaged
744in the performance of a commercial activity, which for purposes
745of this subsection means an activity that provides a product or
746service that is available from a private source, as defined in
747s. 14.203 or its agents, employees, or contractors access to
748social security numbers, provided the social security numbers
749will be used only in the normal course of business for
750legitimate business purposes, and provided the commercial entity
751makes a written request for social security numbers, verified as
752provided in s. 92.525, legibly signed by an authorized officer,
753employee, or agent of the commercial entity. The verified
754written request must contain the commercial entity's name,
755business mailing and location addresses, business telephone
756number, and a statement of the specific purposes for which it
757needs the social security numbers and how the social security
758numbers will be used in the normal course of business for
759legitimate business purposes. The aggregate of these requests
760shall serve as the basis for the agency report required in
761subsection (7). An agency may request any other information as
762may be reasonably necessary to verify the identity of the entity
763requesting the social security numbers and the specific purposes
764for which such numbers will be used; however, an agency has no
765duty to inquire beyond the information contained in the verified
766written request. A legitimate business purpose includes
767verification of the accuracy of personal information received by
768a commercial entity in the normal course of its business; use in
769a civil, criminal, or administrative proceeding; use for
770insurance purposes; use in law enforcement and investigation of
771crimes; use in identifying and preventing fraud; use in
772matching, verifying, or retrieving information; and use in
773research activities. A legitimate business purpose does not
774include the display or bulk sale of social security numbers to
775the general public or the distribution of such numbers to any
776customer that is not identifiable by the distributor.
777     Section 14.  This act shall take effect July 1, 2005.


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