November 18, 2019
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_h5611c1
CS/HB 5611

1
A bill to be entitled
2An act relating to the Department of Management Services;
3amending s. 287.042, F.S.; providing that fees collected
4by the department for the use of its electronic
5information services in excess of the obligations and
6encumbrances to cover the department's costs of providing
7the services shall be calculated annually and transferred
8to the General Revenue Fund; amending s. 287.057, F.S.;
9providing that fees collected by the department for the
10use of the services of its online procurement systems in
11excess of the obligations and encumbrances to cover the
12department's costs of providing the services shall be
13calculated annually and transferred to the General Revenue
14Fund; amending s. 287.05721, F.S.; repealing the
15definition of "council" as it relates to the Council on
16Efficient Government; repealing s. 287.0573, F.S.,
17relating to creation of the Council on Efficient
18Government within the department; amending s. 287.0574,
19F.S.; conforming provisions to the elimination of the
20Council on Efficient Government; requiring that a business
21case be submitted in the form and manner required by the
22budget instructions; providing an effective date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Paragraph (h) of subsection (1) of section
27287.042, Florida Statutes, is amended to read:
28     287.042  Powers, duties, and functions.-The department
29shall have the following powers, duties, and functions:
30     (1)
31     (h)1.  The department may collect fees for the use of its
32electronic information services. The fees may be imposed on an
33individual transaction basis or as a fixed subscription for a
34designated period of time. At a minimum, the fees shall be
35determined in an amount sufficient to cover the department's
36projected costs of the services, including overhead in
37accordance with the policies of the Department of Management
38Services for computing its administrative assessment. All fees
39collected under this paragraph shall be deposited in the
40Operating Trust Fund for disbursement as provided by law.
41     2.  Effective July 1, 2010, any fees collected pursuant to
42subparagraph 1. and remaining in the Operating Trust Fund in
43excess of the obligations and encumbrances to cover the
44department's costs of providing services pursuant to
45subparagraph 1. shall be calculated as of June 5 each year and
46transferred to the General Revenue Fund before June 30 of each
47year.
48     Section 2.  Paragraph (c) of subsection (23) of section
49287.057, Florida Statutes, is amended to read:
50     287.057  Procurement of commodities or contractual
51services.-
52     (23)  The department, in consultation with the Agency for
53Enterprise Information Technology and the Comptroller, shall
54develop a program for online procurement of commodities and
55contractual services. To enable the state to promote open
56competition and to leverage its buying power, agencies shall
57participate in the online procurement program, and eligible
58users may participate in the program. Only vendors prequalified
59as meeting mandatory requirements and qualifications criteria
60may participate in online procurement.
61     (c)  The department may impose and shall collect all fees
62for the use of the online procurement systems.
63     1.  The fees may be imposed on an individual transaction
64basis or as a fixed percentage of the cost savings generated. At
65a minimum, the fees must be set in an amount sufficient to cover
66the projected costs of the services, including administrative
67and project service costs in accordance with the policies of the
68department.
69     2.  If the department contracts with a provider for online
70procurement, the department, pursuant to appropriation, shall
71compensate the provider from the fees after the department has
72satisfied all ongoing costs. The provider shall report
73transaction data to the department each month so that the
74department may determine the amount due and payable to the
75department from each vendor.
76     3.  All fees that are due and payable to the state on a
77transactional basis or as a fixed percentage of the cost savings
78generated are subject to s. 215.31 and must be remitted within
7940 days after receipt of payment for which the fees are due. For
80fees that are not remitted within 40 days, the vendor shall pay
81interest at the rate established under s. 55.03(1) on the unpaid
82balance from the expiration of the 40-day period until the fees
83are remitted.
84     4.  All fees and surcharges collected under this paragraph
85shall be deposited in the Operating Trust Fund for disbursement
86as provided by law.
87     5.  Effective July 1, 2010, any fees collected pursuant to
88subparagraph 1. and remaining in the Operating Trust Fund in
89excess of the obligations and encumbrances to cover the
90department's costs of providing services pursuant to
91subparagraph 1. shall be calculated as of June 5 each year and
92transferred to the General Revenue Fund before June 30 of each
93year.
94     Section 3.  Section 287.05721, Florida Statutes, is amended
95to read:
96     287.05721  Definitions.-As used in ss. 287.0571-287.0574,
97the term:
98     (1)  "Council" means the Council on Efficient Government.
99     (2)  "outsource" means the process of contracting with a
100vendor to provide a service as defined in s. 216.011(1)(f), in
101whole or in part, or an activity as defined in s.
102216.011(1)(rr), while a state agency retains the responsibility
103and accountability for the service or activity and there is a
104transfer of management responsibility for the delivery of
105resources and the performance of those resources.
106     Section 4.  Section 287.0573, Florida Statutes, is
107repealed.
108     Section 5.  Subsections (1) through (4) of section
109287.0574, Florida Statutes, are amended to read:
110     287.0574  Business cases to outsource; review and analysis;
111requirements.-
112     (1)  A business case to outsource having a projected cost
113exceeding $10 million in any fiscal year shall require:
114     (a)  An initial business case analysis conducted by the
115state agency and submitted to the council, the Governor, the
116President of the Senate, and the Speaker of the House of
117Representatives at least 60 days before a solicitation is
118issued. The council shall evaluate the business case analysis
119and submit an advisory report to the state agency, the Governor,
120the President of the Senate, and the Speaker of the House of
121Representatives when the advisory report is completed, but at
122least 30 days before the agency issues the solicitation.
123     (b)  A final business case analysis conducted by the state
124agency and submitted after the conclusion of any negotiations,
125at least 30 days before execution of a contract, to the council,
126the Governor, the President of the Senate, and the Speaker of
127the House of Representatives.
128     (2)  A proposal to outsource having a projected cost that
129ranges from $1 million to $10 million in any fiscal year shall
130require:
131     (a)  An initial business case analysis conducted by the
132state agency and submission of the business case, at least 30
133days before issuing a solicitation, to the council, the
134Governor, the President of the Senate, and the Speaker of the
135House of Representatives.
136     (b)  A final business case analysis conducted by the state
137agency and submitted after the conclusion of any negotiations,
138at least 30 days before execution of a contract, to the council,
139the Governor, the President of the Senate, and the Speaker of
140the House of Representatives.
141     (3)  A business case to outsource having a projected cost
142that is less than $1 million in any fiscal year shall require a
143final business case analysis conducted by the state agency after
144the conclusion of any negotiations and provided at least 30 days
145before execution of a contract to the council. The council shall
146provide such business cases in its annual report to the
147Legislature.
148     (4)  For any proposed outsourcing, the state agency shall
149develop a business case that justifies the proposal to
150outsource. In order to reduce any administrative burden, the
151council may allow a state agency shall to submit the business
152case in the form and manner required by the budget instructions
153issued pursuant to s. 216.023(1), (2), and (4)(a)7., augmented
154with additional information if necessary, to ensure that the
155requirements of this section are met. The business case is not
156subject to challenge or protest pursuant to chapter 120. The
157business case must include, but need not be limited to:
158     (a)  A detailed description of the service or activity for
159which the outsourcing is proposed.
160     (b)  A description and analysis of the state agency's
161current performance, based on existing performance metrics if
162the state agency is currently performing the service or
163activity.
164     (c)  The goals desired to be achieved through the proposed
165outsourcing and the rationale for such goals.
166     (d)  A citation to the existing or proposed legal authority
167for outsourcing the service or activity.
168     (e)  A description of available options for achieving the
169goals. If state employees are currently performing the service
170or activity, at least one option involving maintaining state
171provision of the service or activity shall be included.
172     (f)  An analysis of the advantages and disadvantages of
173each option, including, at a minimum, potential performance
174improvements and risks.
175     (g)  A description of the current market for the
176contractual services that are under consideration for
177outsourcing.
178     (h)  A cost-benefit analysis documenting the direct and
179indirect specific baseline costs, savings, and qualitative and
180quantitative benefits involved in or resulting from the
181implementation of the recommended option or options. Such
182analysis must specify the schedule that, at a minimum, must be
183adhered to in order to achieve the estimated savings. All
184elements of cost must be clearly identified in the cost-benefit
185analysis, described in the business case, and supported by
186applicable records and reports. The state agency head shall
187attest that, based on the data and information underlying the
188business case, to the best of his or her knowledge, all
189projected costs, savings, and benefits are valid and achievable.
190As used in this section, the term "cost" means the reasonable,
191relevant, and verifiable cost, which may include, but is not
192limited to, elements such as personnel, materials and supplies,
193services, equipment, capital depreciation, rent, maintenance and
194repairs, utilities, insurance, personnel travel, overhead, and
195interim and final payments. The appropriate elements shall
196depend on the nature of the specific initiative. As used in this
197section, the term "savings" means the difference between the
198direct and indirect actual annual baseline costs compared to the
199projected annual cost for the contracted functions or
200responsibilities in any succeeding state fiscal year during the
201term of the contract.
202     (i)  A description of differences among current state
203agency policies and processes and, as appropriate, a discussion
204of options for or a plan to standardize, consolidate, or revise
205current policies and processes, if any, to reduce the
206customization of any proposed solution that would otherwise be
207required.
208     (j)  A description of the specific performance standards
209that must, at a minimum, be met to ensure adequate performance.
210     (k)  The projected timeframe for key events from the
211beginning of the procurement process through the expiration of a
212contract.
213     (l)  A plan to ensure compliance with the public records
214law.
215     (m)  A specific and feasible contingency plan addressing
216contractor nonperformance and a description of the tasks
217involved in and costs required for its implementation.
218     (n)  A state agency's transition plan for addressing
219changes in the number of agency personnel, affected business
220processes, employee transition issues, and communication with
221affected stakeholders, such as agency clients and the public.
222The transition plan must contain a reemployment and retraining
223assistance plan for employees who are not retained by the state
224agency or employed by the contractor.
225     (o)  A plan for ensuring access by persons with
226disabilities in compliance with applicable state and federal
227law.
228     (p)  A description of legislative and budgetary actions
229necessary to accomplish the proposed outsourcing.
230     Section 6.  This act shall take effect July 1, 2010.


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