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Senate Bill 1476

Senate Bill sb1476c1

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    Florida Senate - 2005                           CS for SB 1476

    By the Committee on Children and Families; and Senators
    Campbell and Margolis




    586-1717B-05

  1                      A bill to be entitled

  2         An act relating to the Department of Children

  3         and Family Services; providing legislative

  4         intent with respect to establishing a structure

  5         by which the department shall monitor and

  6         manage contracts with external service

  7         providers; providing definitions; requiring the

  8         department to competitively procure certain

  9         commodities and contractual services; requiring

10         the department to allow all public

11         postsecondary institutions to bid on contracts

12         intended for any public postsecondary

13         institution; authorizing the department to

14         competitively procure and contract for systems

15         of treatment or service that involve multiple

16         providers; providing requirements if other

17         governmental entities contribute matching

18         funds; requiring that an entity providing

19         matching funds must comply with certain

20         procurement procedures; authorizing the

21         department to independently procure and

22         contract for treatment services; requiring that

23         the department develop a validated business

24         case before outsourcing any service or

25         function; providing requirements for the

26         business case; requiring that the validated

27         business case be submitted to the Legislature

28         for approval; requiring that a contractual

29         service that has previously been outsourced be

30         subject to the requirements for a validated

31         business case; requiring that a procurement of

                                  1

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    Florida Senate - 2005                           CS for SB 1476
    586-1717B-05




 1         contractual services equal to or in excess of

 2         the threshold amount for CATEGORY FIVE comply

 3         with specified requirements, including a scope

 4         of work and performance standards; authorizing

 5         the department to adopt incremental penalties

 6         by rule; authorizing the department to include

 7         cost-neutral, performance-based incentives in a

 8         contract; requiring that a contract in excess

 9         of $1 million be negotiated by a contract

10         negotiator who is certified according to

11         standards established by the Department of

12         Management Services; limiting circumstances

13         under which the department may amend a

14         contract; requiring that a proposed contract

15         amendment be submitted to the Executive Office

16         of the Governor for approval; requiring

17         approval of a contract amendment by the

18         Administration Commission under certain

19         circumstances; requiring the department to

20         verify that contractural terms have been

21         satisfied before renewing a contract; requiring

22         certain documentation; requiring the department

23         to develop, in consultation with the Department

24         of Management Services, contract templates and

25         guidelines; requiring that the department

26         establish a contract-management process;

27         specifying the requirements for and components

28         of the contract-management process; providing

29         requirements for resolving performance

30         deficiencies and terminating a contract;

31         requiring a corrective-action plan under

                                  2

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    Florida Senate - 2005                           CS for SB 1476
    586-1717B-05




 1         certain circumstances; requiring the department

 2         to develop standards of conduct and

 3         disciplinary actions; requiring that the

 4         department establish contract-monitoring units

 5         and a contract-monitoring process; requiring

 6         written reports; requiring on-site visits for

 7         contracts involving the provision of direct

 8         client services; requiring the department to

 9         make certain documents available to the

10         Legislature; requiring the department to create

11         an electronic database to store the documents;

12         amending s. 402.73, F.S.; requiring the Agency

13         for Persons with Disabilities to implement

14         systems to ensure quality and fiscal integrity

15         of programs in the developmental services

16         Medicaid waiver system; providing an exemption

17         for health services from competitive bidding

18         requirements; amending s. 409.1671, F.S.;

19         conforming provisions to changes made by the

20         act; requiring that the Office of Program

21         Policy Analysis and Government Accountability

22         conduct two reviews of the contract-management

23         and accountability structures of the department

24         and report to the Legislature and the Auditor

25         General; repealing s. 402.72, F.S., relating to

26         contract-management requirements for the

27         Department of Children and Family Services;

28         providing an effective date.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  

                                  3

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    Florida Senate - 2005                           CS for SB 1476
    586-1717B-05




 1         Section 1.  Department of Children and Family Services;

 2  procurement of contractual services; outsourcing or

 3  privatization; contract management.--

 4         (1)  LEGISLATIVE INTENT.--The Legislature intends that

 5  the Department of Children and Family Services obtain services

 6  in the manner that is most efficient and cost-effective for

 7  the state, that provides the greatest long-term benefits to

 8  the clients receiving services, and that minimizes the

 9  disruption of client services. In order to meet these

10  legislative goals, the department shall comply with

11  legislative policy guidelines that require compliance with

12  uniform procedures for procuring contractual services,

13  prescribe how the department must outsource its programmatic

14  and administrative services to external service providers

15  rather than having them provided by the department or another

16  state agency, and establish a contract-management and

17  contract-monitoring process.

18         (2)  DEFINITIONS.--As used in this section, the term:

19         (a)  "Contract manager" means the department employee

20  who is responsible for enforcing the compliance with

21  administrative and programmatic terms and conditions of a

22  contract. The contract manager is the primary point of contact

23  through which all contracting information flows between the

24  department and the contractor. The contract manager is

25  responsible for day-to-day contract oversight, including

26  approval of contract deliverables and invoices. All actions

27  related to the contract shall be initiated by or coordinated

28  with the contract manager. The contract manager maintains the

29  official contract files.

30         (b)  "Contract monitor" means the department employee

31  who is responsible for observing, recording, and reporting to

                                  4

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    Florida Senate - 2005                           CS for SB 1476
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 1  the contract manager and other designated entities the

 2  information necessary to assist the contract manager and

 3  program management in determining whether the contractor is in

 4  compliance with the administrative and programmatic terms and

 5  conditions of the contract.

 6         (c)  "Department" means the Department of Children and

 7  Family Services.

 8         (d)  "Outsourcing" means the process of contracting

 9  with an external service provider to provide a service, in

10  whole or in part, while the department retains the

11  responsibility and accountability for the service.

12         (e)  "Performance measure" means the quantitative

13  indicators used to assess if the service the external provider

14  is performing is achieving the desired results. Measures of

15  performance include outputs, direct counts of program

16  activities, and outcomes or results of program activities in

17  the lives of the clients served.

18         (f)  "Performance standard" means the quantifiable,

19  specified, and desired level to be achieved for a particular

20  performance measure.

21         (g)  "Privatize" means any process aimed at

22  transferring the responsibility for a service, in whole or in

23  part, from the department to the private sector such that the

24  private sector is solely and fully responsible for the

25  performance of the specific service.

26         (h)  "Service" means all or any portion of a program or

27  program component as defined in section 216.011.

28         (3)  PROCUREMENT OF COMMODITIES AND CONTRACTUAL

29  SERVICES.--

30         (a)  For the purchase of commodities and contractual

31  services in excess of the threshold amount established in

                                  5

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    Florida Senate - 2005                           CS for SB 1476
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 1  section 287.017, Florida Statutes, for CATEGORY TWO, the

 2  department shall comply with the requirements set forth in

 3  section 287.057, Florida Statutes.

 4         (b)  Notwithstanding section 287.057(5)(f)13., Florida

 5  Statutes, whenever the department intends to contract with a

 6  public postsecondary institution to provide a service, the

 7  department must allow all public postsecondary institutions in

 8  this state that are accredited by the Southern Association of

 9  Colleges and Schools to bid on the contract. Thereafter,

10  notwithstanding any other provision to the contrary, if a

11  public postsecondary institution intends to subcontract for

12  any service awarded in the contract, the subcontracted service

13  must be procured by competitive procedures.

14         (c)  When it is in the best interest of a defined

15  segment of its consumer population, the department may

16  competitively procure and contract for systems of treatment or

17  service that involve multiple providers, rather than procuring

18  and contracting for treatment or services separately from each

19  participating provider. The department must ensure that all

20  providers that participate in the treatment or service system

21  meet all applicable statutory, regulatory, service-quality,

22  and cost-control requirements. If other governmental entities

23  or units of special purpose government contribute matching

24  funds to the support of a given system of treatment or

25  service, the department shall formally request information

26  from those funding entities in the procurement process and may

27  take the information received into account in the selection

28  process. If a local government contributes matching funds to

29  support the system of treatment or contracted service and if

30  the match constitutes at least 25 percent of the value of the

31  contract, the department shall afford the governmental match

                                  6

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    Florida Senate - 2005                           CS for SB 1476
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 1  contributor an opportunity to name an employee as one of the

 2  persons required by section 287.057(17), Florida Statutes, to

 3  evaluate or negotiate certain contracts, unless the department

 4  sets forth in writing the reason why the inclusion would be

 5  contrary to the best interest of the state. Any employee so

 6  named by the governmental match contributor shall qualify as

 7  one of the persons required by section 287.057(17), Florida

 8  Statutes. A governmental entity or unit of special purpose

 9  government may not name an employee as one of the persons

10  required by section 287.057(17), Florida Statutes, if it, or

11  any of its political subdivisions, executive agencies, or

12  special districts, intends to compete for the contract to be

13  awarded. The governmental funding entity or contributor of

14  matching funds must comply with all procurement procedures set

15  forth in section 287.057, Florida Statutes, when appropriate

16  and required.

17         (d)  The department may procure and contract for or

18  provide assessment and case-management services independently

19  from treatment services.

20         (4)  SOURCING STANDARDS AND REQUIREMENTS.--If the

21  department proposes to outsource a service, the department

22  must comply with the requirements of this section prior to the

23  procurement process provided for in section 287.057, Florida

24  Statutes.

25         (a)  The department shall develop a business case

26  describing and analyzing the service proposed for outsourcing.

27  A business case is part of the solicitation process and is not

28  a rule subject to challenge pursuant to section 120.54,

29  Florida Statutes. The business case must include, but need not

30  be limited to:

31  

                                  7

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    Florida Senate - 2005                           CS for SB 1476
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 1         1.  A detailed description of the services to be

 2  outsourced, a description and analysis of the department's

 3  current performance of the service, and a rationale

 4  documenting how outsourcing the service would be in the best

 5  interest of the state, the department, and its clients.

 6         2.  A cost-benefit analysis documenting the estimated

 7  specific direct and indirect costs, savings, performance

 8  improvements, risks, and qualitative and quantitative benefits

 9  involved in or resulting from outsourcing the service. The

10  cost-benefit analysis must include a detailed plan and

11  timeline identifying all actions that must be implemented to

12  realize expected benefits. Under section 92.525, Florida

13  Statutes, the Secretary of Children and Family Services shall

14  verify that all costs, savings, and benefits are valid and

15  achievable.

16         3.  A description of the specific performance measures

17  and standards that must be achieved through the outsourcing

18  proposal.

19         4.  A statement of the potential effect on applicable

20  federal, state, and local revenues and expenditures. The

21  statement must specifically describe the effect on general

22  revenue, trust funds, general revenue service charges, and

23  interest on trust funds, together with the potential direct or

24  indirect effect on federal funding and cost allocations.

25         5.  A plan to ensure compliance with public-record

26  laws, which must include components that:

27         a.  Provide public access to public records at a cost

28  that does not exceed that provided in chapter 119, Florida

29  Statutes.

30         b.  Ensure the confidentiality of records that are

31  exempt from disclosure or confidential under law.

                                  8

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    Florida Senate - 2005                           CS for SB 1476
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 1         c.  Meet all legal requirements for record retention.

 2         d.  Allow for transfer to the state, at no cost, all

 3  public records in possession of the external service provider

 4  upon termination of the contract.

 5         6.  A department transition and implementation plan for

 6  addressing changes in the number of agency personnel, affected

 7  business processes, and employee-transition issues. Such a

 8  plan must also specify the mechanism for continuing the

 9  operation of the service if the contractor fails to perform

10  and comply with the performance measures and standards and

11  provisions of the contract. Within this plan, the department

12  shall identify all resources, including full-time equivalent

13  positions, which are subject to outsourcing. All full-time

14  equivalent positions identified in the plan shall be placed in

15  reserve by the Executive Office of the Governor until the end

16  of the second year of the contract. Notwithstanding the

17  provisions of section 216.262, Florida Statutes, the Executive

18  Office of the Governor shall request authority from the

19  Legislative Budget Commission to reestablish full-time

20  positions above the number fixed by the Legislature when a

21  contract is terminated and the outsourced service must be

22  returned to the department.

23         7.  A listing of assets proposed for transfer to or use

24  by the external service provider, a description of the

25  proposed requirements for maintenance of those assets by the

26  external service provider or the department in accordance with

27  chapter 273, Florida Statutes, a plan for their disposition

28  upon termination of the contract, and a description of how the

29  planned asset transfer or use by the contractor is in the best

30  interest of the department and the state.

31  

                                  9

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    Florida Senate - 2005                           CS for SB 1476
    586-1717B-05




 1         (b)1.  If the department proposes to outsource the

 2  service in the next fiscal year, the department shall submit

 3  the business case with the department's final legislative

 4  budget request, in the manner and form prescribed in the

 5  legislative budget request instructions under section 216.023,

 6  Florida Statutes. Upon approval in the General Appropriations

 7  Act, the department may initiate and complete the procurement

 8  process under section 287.057, Florida Statutes, and shall

 9  have the authority to enter into contracts with the external

10  service provider.

11         2.  If a proposed outsourcing initiative would require

12  integration with, or would in any way affect other state

13  information technology systems, the department shall submit

14  the feasibility study documentation required by the

15  legislative budget request instructions under section 216.023,

16  Florida Statutes.

17         (c)  If the department proposes to outsource a service

18  during a fiscal year and the outsourcing provision was not

19  included in the approved operating budget of the department,

20  the department must provide to the Governor, the President of

21  the Senate, the Speaker of the House of Representatives, the

22  chairs of the legislative appropriations committees, and the

23  chairs of the relevant substantive committees the business

24  case that complies with the requirements of paragraph (a) at

25  least 45 days before the release of any solicitation

26  documents, as provided for in section 287.057, Florida

27  Statutes. Any budgetary changes that are inconsistent with the

28  department's approved budget may not be made to existing

29  programs unless the changes are recommended to the Legislative

30  Budget Commission by the Governor and the Legislative Budget

31  Commission expressly approves the program changes.

                                  10

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    Florida Senate - 2005                           CS for SB 1476
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 1         (d)  The department may not privatize a service without

 2  specific authority provided in general law, the General

 3  Appropriations Act, legislation implementing the General

 4  Appropriations Act, or a special appropriations act.

 5         (5)  CONTRACTING AND PERFORMANCE MEASURES.--In addition

 6  to the requirements of section 287.058, Florida Statutes,

 7  every procurement of contractual services by the department

 8  which meets or is in excess of the threshold amount provided

 9  in section 287.017, Florida Statutes, for CATEGORY FIVE, must

10  comply with the requirements of this subsection.

11         (a)  The department shall execute a contract containing

12  all provisions and conditions, which must include, but need

13  not be limited to:

14         1.  A detailed scope of work that clearly specifies

15  each service and deliverable to be provided, including a

16  description of each deliverable or activity that is

17  quantifiable, measurable, and verifiable the department and

18  the contractor.

19         2.  Associated costs and savings, specific payment

20  terms and payment schedules, including incentive and penalty

21  provisions, criteria governing payment, and a clear and

22  specific schedule to complete all required activities needed

23  to transfer the service from the state to the contractor.

24         3.  Clear and specific identification of all required

25  performance measures and standards, which must, at a minimum,

26  include:

27         a.  Acceptance criteria for each deliverable and

28  service to be provided to the department under the terms of

29  the contract which document, to the greatest extent possible,

30  the required performance level. Acceptance criteria must be

31  

                                  11

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    Florida Senate - 2005                           CS for SB 1476
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 1  detailed, clear, and unambiguous and shall be used to measure

 2  deliverables and services to be provided under the contract.

 3         b.  A method for monitoring and reporting progress in

 4  achieving specified performance standards and levels.

 5         c.  The sanctions or penalties that shall be assessed

 6  for contract or state nonperformance. The department may

 7  adopt, by rule, provisions for including in its contracts

 8  incremental penalties to be imposed by its contract managers

 9  on a contractor due to the contractor's failure to comply with

10  a requirement for corrective action. Any financial penalty

11  that is imposed upon a contractor may not be paid from funds

12  being used to provide services to clients, and the contractor

13  may not reduce the amount of services being delivered to

14  clients as a method for offsetting the effect of the penalty.

15  If a financial penalty is imposed upon a contractor that is a

16  corporation, the department shall notify, at a minimum, the

17  board of directors of the corporation. The department may

18  notify any additional parties that the department believes may

19  be helpful in obtaining the corrective action that is being

20  sought. In addition, the rules adopted by the department must

21  include provisions that permit the department to deduct the

22  financial penalties from funds that would otherwise be due to

23  the contractor, not to exceed 10 percent of the amount that

24  otherwise would be due to the contractor for the period of

25  noncompliance. If the department imposes a financial penalty,

26  it shall advise the contractor in writing of the cause for the

27  penalty. A failure to include such deductions in a request for

28  payment constitutes grounds for the department to reject that

29  request for payment. The remedies identified in this paragraph

30  do not limit or restrict the department's application of any

31  other remedy available to it in the contract or under law. The

                                  12

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    Florida Senate - 2005                           CS for SB 1476
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 1  remedies described in this paragraph may be cumulative and may

 2  be assessed upon each separate failure to comply with

 3  instructions from the department to complete corrective

 4  action.

 5         4.  A requirement that the contractor maintain adequate

 6  accounting records that comply with all applicable federal and

 7  state laws and generally accepted accounting principles.

 8         5.  A requirement authorizing the department and state

 9  to have access to and conduct audits of all records related to

10  the contract and outsourced services.

11         6.  A requirement that ownership of any intellectual

12  property developed in the course of, or as a result of, work

13  or services performed under the contract shall transfer to the

14  state if the contractor ceases to provide the outsourced

15  service.

16         7.  A requirement describing the timing and substance

17  of all plans and status or progress reports that are to be

18  provided. All plans and status or progress reports must comply

19  with any relevant state and federal standards for planning,

20  implementation, operations, and oversight.

21         8.  A requirement that the contractor shall comply with

22  public-record laws. The contractor shall:

23         a.  Keep and maintain the public records that

24  ordinarily and necessarily would be required by the department

25  to perform the service.

26         b.  Provide public access to such public records on the

27  same terms and conditions that the department would and at a

28  cost that does not exceed that provided in chapter 119.

29         c.  Ensure the confidentiality of records that are

30  exempt from disclosure or confidential under law.

31  

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    Florida Senate - 2005                           CS for SB 1476
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 1         d.  Meet all legal and auditing requirements for record

 2  retention, and transfer to the state, at no cost to the state,

 3  all public records in possession of the contractor upon

 4  termination of the contract. All records stored electronically

 5  must be provided to the state in the format compatible with

 6  state information technology systems.

 7         9.  A requirement that any state funds provided for the

 8  purchase of or improvements to real property are contingent

 9  upon the contractor granting to the state a security interest

10  in the property which is at least equal to the amount of the

11  state funds provided for at least 5 years following the date

12  of purchase or the completion of the improvements or as

13  further required by law. The contract must include a provision

14  that, as a condition of receipt of state funding for this

15  purpose, the contractor agrees that, if it disposes of the

16  property before the department's interest is vacated, the

17  contractor must refund the proportionate share of the state's

18  initial investment, as adjusted by depreciation.

19         10.  A provision that the contractor annually submit

20  and verify, under section 92.525, Florida Statutes, all

21  required financial statements.

22         11.  A provision that the contractor will be held

23  responsible and accountable for all work covered under the

24  contract including any work performed by subcontractors. The

25  contract must state that the department may monitor the

26  performance of any subcontractor.

27         (b)  A contract may include cost-neutral,

28  performance-based incentives that may vary according to the

29  extent a contractor achieves or surpasses the performance

30  standards set forth in the contract. The incentives may be

31  weighted proportionally to reflect the extent to which the

                                  14

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 1  contractor has demonstrated that it has consistently met or

 2  exceeded the contractual requirements and the performance

 3  standards.

 4         (c)  The department shall review the time period for

 5  which it executes contracts and, to the greatest extent

 6  practicable, shall execute multiyear contracts to make the

 7  most efficient use of the resources devoted to contract

 8  processing and execution.

 9         (d)  When the annualized value of a contract is in

10  excess of $1 million, at least one of the persons conducting

11  negotiations must be certified as a contract negotiator based

12  upon standards established by the Department of Management

13  Services.

14         (e)  The department may not amend a contract without

15  first submitting the proposed contract amendment to the

16  Executive Office of the Governor for approval if the effect of

17  the amendment would be to increase:

18         1.  The value of the contract by $250,000; or

19         2.  The term of the contract by 1 year or more.

20  

21  When the department proposes any contract amendment that meets

22  the criteria described in this paragraph, it shall submit the

23  proposed contract amendment to the Executive Office of the

24  Governor for approval and shall immediately notify the chairs

25  of the legislative appropriations committees. The Executive

26  Office of the Governor may not approve the proposed contract

27  amendment until 14 days following receipt of the notification

28  to the legislative appropriations chairs. If either chair of

29  the legislative appropriations committees objects in writing

30  to a proposed contract amendment within 14 days following

31  notification and specifies the reasons for the objection, the

                                  15

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 1  Executive Office of the Governor shall disapprove the proposed

 2  contract amendment or shall submit the proposed contract

 3  amendment to the Administration Commission. The proposed

 4  contract amendment may be approved by the Administration

 5  Commission by a two-thirds vote of the members present with

 6  the Governor voting in the affirmative. In the absence of

 7  approval by the commission, the proposed contract amendment

 8  shall be automatically disapproved. Otherwise, upon approval

 9  by the Governor or Administration Commission, the department

10  may execute the contract amendment.

11         (e)  An amendment that is issued under legislative

12  direction, including funding adjustments annually provided for

13  in the General Appropriations Act or the federal

14  appropriations acts, need not be submitted for approval in

15  accordance with paragraph (d).

16         (f)  In addition to the requirements of section

17  287.057(14), Florida Statutes, the department shall verify

18  that all specific direct and indirect costs, savings,

19  performance measures and standards, and qualitative and

20  quantitative benefits identified in the original contract have

21  been satisfied by a contractor or the department before the

22  contract is renewed. The documentation must include an

23  explanation of any differences between the required

24  performance as identified in the contract and the actual

25  performance of the contractor. The documentation must be

26  included in the official contract file.

27         (g)  The department shall, in consultation with the

28  Department of Management Services, develop contract templates

29  and guidelines that define the mandatory contract provisions

30  and other requirements identified in this subsection and that

31  must be used for all contractual service contracts meeting the

                                  16

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 1  requirements of this subsection. All contract templates and

 2  guidelines shall be developed by September 30, 2005.

 3         (6)  CONTRACT-MANAGEMENT REQUIREMENTS AND

 4  PROCESS.--Notwithstanding section 287.057(15), Florida

 5  Statutes, the department is responsible for establishing a

 6  contract-management process that requires a member of the

 7  department's Senior Management Service to assign in writing

 8  the responsibility of a contract to a contract manager. The

 9  department shall maintain a set of procedures describing its

10  contract-management process which must minimally include the

11  following requirements:

12         (a)  The contract manager shall maintain the official

13  contract file throughout the duration of the contract and for

14  a period not less than 6 years after the termination of the

15  contract.

16         (b)  The contract manager shall review all invoices for

17  compliance with the criteria and payment schedule provided for

18  in the contract and shall approve payment of all invoices

19  before their transmission to the Department of Financial

20  Services for payment. Only the contract manager shall approve

21  the invoices for a specific contract, unless the contract

22  manager is temporarily unavailable to review an invoice. The

23  contract file must contain an explanation for any periods of

24  temporary unavailability of the assigned contract manager. For

25  any individual invoice in excess of $500,000, a member of the

26  Selected Exempt Service or Senior Management Service shall

27  also sign payment approval of the invoice. For any individual

28  invoice in excess of $1 million, a member of the Senior

29  Management Service shall also sign payment approval of the

30  invoice.

31  

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 1         (c)  The contract manager shall maintain a schedule of

 2  payments and total amounts disbursed and shall periodically

 3  reconcile the records with the state's official accounting

 4  records.

 5         (d)  For contracts involving the provision of direct

 6  client services, the contract manager shall periodically visit

 7  the physical location where the services are delivered and

 8  speak directly to clients receiving the services and the staff

 9  responsible for delivering the services.

10         (e)  For contracts for which the contractor is a

11  corporation, the contract manager shall attend at least one

12  board meeting semiannually, if held and if within 100 miles of

13  the contract manager's official headquarters.

14         (f)  The contract manager shall meet at least once a

15  month directly with the contractor's representative and

16  maintain records of such meetings.

17         (g)  The contract manager shall periodically document

18  any differences between the required performance measures and

19  the actual performance measures. If a contractor fails to meet

20  and comply with the performance measures established in the

21  contract, the department may allow a reasonable period for the

22  contractor to correct performance deficiencies. If performance

23  deficiencies are not resolved to the satisfaction of the

24  department within the prescribed time, and if no extenuating

25  circumstances can be documented by the contractor to the

26  department's satisfaction, the department must terminate the

27  contract. The department may not enter into a new contract

28  with that same contractor for the services for which the

29  contract was previously terminated for a period of at least 24

30  months after the date of termination. The contract manager

31  shall obtain and enforce corrective-action plans, if

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 1  appropriate, and maintain records regarding the completion or

 2  failure to complete corrective-action items.

 3         (h)  The contract manager shall document any contract

 4  modifications, which shall include recording any contract

 5  amendments as provided for in this section.

 6         (i)  The contract manager shall be properly trained

 7  before being assigned responsibility for any contract.

 8  

 9  The department shall develop standards of conduct and a range

10  of disciplinary actions for its employees which are

11  specifically related to carrying out contract-management

12  responsibilities.

13         (7)  CONTRACT-MONITORING REQUIREMENTS AND PROCESS.--The

14  department shall establish contract-monitoring units staffed

15  by full-time career service employees who report to a member

16  of the Select Exempt Service or Senior Management Service and

17  who have been properly trained to perform contract monitoring.

18  A member of the Senior Management Service shall assign in

19  writing a specific contract to a contract-monitoring unit,

20  with at least one member of the contract-monitoring unit

21  possessing specific knowledge and experience in the contract's

22  program area. The department shall establish a

23  contract-monitoring process that must include, but need not be

24  limited to, the following requirements:

25         (a)  Performing a risk assessment at the start of each

26  fiscal year and preparing an annual contract-monitoring

27  schedule that includes consideration for the level of risk

28  assigned. The department may monitor any contract at any time

29  regardless of whether such monitoring was originally included

30  in the annual contract-monitoring schedule.

31  

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 1         (b)  Preparing a contract-monitoring plan, including

 2  sampling procedures, before performing on-site monitoring at

 3  external locations of a service provider. The plan must

 4  include a description of the programmatic, fiscal, and

 5  administrative components that will be monitored on-site. If

 6  appropriate, clinical and therapeutic components may be

 7  included.

 8         (c)  Conducting analyses of the performance and

 9  compliance of an external service provider by means of desk

10  reviews if the external service provider will not be monitored

11  on-site during a fiscal year.

12         (d)  Unless the department sets forth in writing the

13  need for an extension, providing a written report presenting

14  the results of the monitoring within 30 days after the

15  completion of the on-site monitoring or desk review. Report

16  extensions may not exceed 30 days after the original

17  completion date. The department shall develop and use a

18  standard contract-monitoring report format and shall provide

19  access to the reports by means of a website that is available

20  to the Legislature.

21         (e)  For contracts involving the provision of direct

22  client services, requiring the contract monitor to visit the

23  physical location where the services are being delivered and

24  to speak directly to the clients receiving the services and

25  with the staff responsible for delivering the services.

26         (f)  Developing and maintaining a set of procedures

27  describing the contract-monitoring process.

28  

29  The department shall develop standards of conduct and a range

30  of disciplinary actions for its employees which are

31  

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 1  specifically related to carrying out contract-monitoring

 2  responsibilities.

 3         (8)  REPORTS TO THE LEGISLATURE.--Beginning October 1,

 4  2005, the department shall make available to the Legislature

 5  electronically all documents associated with the procurement

 6  and contracting functions of the department. The documents in

 7  the database must include, but are not limited to, all:

 8         (a)  Business cases;

 9         (b)  Procurement documents;

10         (c)  Contracts and any related files, attachments, or

11  amendments;

12         (d)  Contract monitoring reports;

13         (e)  Corrective action plans and reports of corrective

14  actions taken when contractor performance deficiencies are

15  identified; and

16         (f)  Status reports on all outsourcing initiatives

17  describing the progress by the department towards achieving

18  the business objectives, costs, savings, and quantifiable

19  benefits identified in the business case.

20         Section 2.  Section 402.73, Florida Statutes, is

21  amended to read:

22         402.73  Contracting and performance standards.--

23         (1)  The Department of Children and Family Services

24  shall establish performance standards for all contracted

25  client services. Notwithstanding s. 287.057(5)(f), the

26  department must competitively procure any contract for client

27  services when any of the following occurs:

28         (a)  The provider fails to meet appropriate performance

29  standards established by the department after the provider has

30  been given a reasonable opportunity to achieve the established

31  standards.

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 1         (b)  A new program or service has been authorized and

 2  funded by the Legislature and the annual value of the contract

 3  for such program or service is $300,000 or more.

 4         (c)  The department has concluded, after reviewing

 5  market prices and available treatment options, that there is

 6  evidence that the department can improve the performance

 7  outcomes produced by its contract resources. At a minimum, the

 8  department shall review market prices and available treatment

 9  options biennially. The department shall compile the results

10  of the biennial review and include the results in its annual

11  performance report to the Legislature pursuant to chapter

12  94-249, Laws of Florida. The department shall provide notice

13  and an opportunity for public comment on its review of market

14  prices and available treatment options.

15         (2)  The competitive requirements of subsection (1)

16  must be initiated for each contract that meets the criteria of

17  this subsection, unless the secretary makes a written

18  determination that particular facts and circumstances require

19  deferral of the competitive process. Facts and circumstances

20  must be specifically described for each individual contract

21  proposed for deferral and must include one or more of the

22  following:

23         (a)  An immediate threat to the health, safety, or

24  welfare of the department's clients.

25         (b)  A threat to appropriate use or disposition of

26  facilities that have been financed in whole, or in substantial

27  part, through contracts or agreements with a state agency.

28         (c)  A threat to the service infrastructure of a

29  community which could endanger the well-being of the

30  department's clients.

31  

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 1  Competitive procurement of client services contracts that meet

 2  the criteria in subsection (1) may not be deferred for longer

 3  than 1 year.

 4         (3)  The Legislature intends that the department obtain

 5  services in the manner that is most cost-effective for the

 6  state, that provides the greatest long-term benefits to the

 7  clients receiving services, and that minimizes the disruption

 8  of client services. In order to meet these legislative goals,

 9  the department may adopt rules providing procedures for the

10  competitive procurement of contracted client services which

11  represent an alternative to the request-for-proposal or

12  invitation-to-bid process. The alternative competitive

13  procedures shall permit the department to solicit professional

14  qualifications from prospective providers and to evaluate such

15  statements of qualification before requesting service

16  proposals. The department may limit the firms invited to

17  submit service proposals to only those firms that have

18  demonstrated the highest level of professional capability to

19  provide the services under consideration, but may not invite

20  fewer than three firms to submit service proposals, unless

21  fewer than three firms submitted satisfactory statements of

22  qualification. The alternative procedures must, at a minimum,

23  allow the department to evaluate competing proposals and

24  select the proposal that provides the greatest benefit to the

25  state while considering the quality of the services,

26  dependability, and integrity of the provider, the

27  dependability of the provider's services, the experience of

28  the provider in serving target populations or client groups

29  substantially identical to members of the target population

30  for the contract in question, and the ability of the provider

31  to secure local funds to support the delivery of services,

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 1  including, but not limited to, funds derived from local

 2  governments. These alternative procedures need not conform to

 3  the requirements of s. 287.042 or s. 287.057(1) or (2).

 4         (4)  The department shall review the period for which

 5  it executes contracts and, to the greatest extent practicable,

 6  shall execute multiyear contracts to make the most efficient

 7  use of the resources devoted to contract processing and

 8  execution.

 9         (5)  When it is in the best interest of a defined

10  segment of its consumer population, the department may

11  competitively procure and contract for systems of treatment or

12  service that involve multiple providers, rather than procuring

13  and contracting for treatment or services separately from each

14  participating provider. The department must ensure that all

15  providers that participate in the treatment or service system

16  meet all applicable statutory, regulatory, service-quality,

17  and cost-control requirements. If other governmental entities

18  or units of special purpose government contribute matching

19  funds to the support of a given system of treatment or

20  service, the department shall formally request information

21  from those funding entities in the procurement process and may

22  take the information received into account in the selection

23  process. If a local government contributes match to support

24  the system of treatment or contracted service and if the match

25  constitutes at least 25 percent of the value of the contract,

26  the department shall afford the governmental match contributor

27  an opportunity to name an employee as one of the persons

28  required by s. 287.057(17) to evaluate or negotiate certain

29  contracts, unless the department sets forth in writing the

30  reason why such inclusion would be contrary to the best

31  interest of the state. Any employee so named by the

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 1  governmental match contributor shall qualify as one of the

 2  persons required by s. 287.057(17). No governmental entity or

 3  unit of special purpose government may name an employee as one

 4  of the persons required by s. 287.057(17) if it, or any of its

 5  political subdivisions, executive agencies, or special

 6  districts, intends to compete for the contract to be awarded.

 7  The governmental funding entity or match contributor shall

 8  comply with any deadlines and procurement procedures

 9  established by the department. The department may also involve

10  nongovernmental funding entities in the procurement process

11  when appropriate.

12         (6)  The department may contract for or provide

13  assessment and case management services independently from

14  treatment services.

15         (7)  The department shall adopt, by rule, provisions

16  for including in its contracts incremental penalties to be

17  imposed by its contract managers on a service provider due to

18  the provider's failure to comply with a requirement for

19  corrective action. Any financial penalty that is imposed upon

20  a provider may not be paid from funds being used to provide

21  services to clients, and the provider may not reduce the

22  amount of services being delivered to clients as a method for

23  offsetting the impact of the penalty. If a financial penalty

24  is imposed upon a provider that is a corporation, the

25  department shall notify, at a minimum, the board of directors

26  of the corporation. The department may notify, at its

27  discretion, any additional parties that the department

28  believes may be helpful in obtaining the corrective action

29  that is being sought. Further, the rules adopted by the

30  department must include provisions that permit the department

31  to deduct the financial penalties from funds that would

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 1  otherwise be due to the provider, not to exceed 10 percent of

 2  the amount that otherwise would be due to the provider for the

 3  period of noncompliance. If the department imposes a financial

 4  penalty, it shall advise the provider in writing of the cause

 5  for the penalty. A failure to include such deductions in a

 6  request for payment constitutes a ground for the department to

 7  reject that request for payment. The remedies identified in

 8  this subsection do not limit or restrict the department's

 9  application of any other remedy available to it in the

10  contract or under law. The remedies described in this

11  subsection may be cumulative and may be assessed upon each

12  separate failure to comply with instructions from the

13  department to complete corrective action.

14         (8)  The department shall develop standards of conduct

15  and a range of disciplinary actions for its employees which

16  are specifically related to carrying out contracting

17  responsibilities.

18         (1)(9)  The Agency for Persons with Disabilities

19  department must implement systems and controls to ensure

20  financial integrity and service provision quality in the

21  developmental services Medicaid waiver service system.

22         (10)  If a provider fails to meet the performance

23  standards established in the contract, the department may

24  allow a reasonable period for the provider to correct

25  performance deficiencies. If performance deficiencies are not

26  resolved to the satisfaction of the department within the

27  prescribed time, and if no extenuating circumstances can be

28  documented by the provider to the department's satisfaction,

29  the department must cancel the contract with the provider. The

30  department may not enter into a new contract with that same

31  provider for the services for which the contract was

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 1  previously canceled for a period of at least 24 months after

 2  the date of cancellation. If an adult substance abuse services

 3  provider fails to meet the performance standards established

 4  in the contract, the department may allow a reasonable period,

 5  not to exceed 6 months, for the provider to correct

 6  performance deficiencies. If the performance deficiencies are

 7  not resolved to the satisfaction of the department within 6

 8  months, the department must cancel the contract with the adult

 9  substance abuse provider, unless there is no other qualified

10  provider in the service district.

11         (11)  The department shall include in its standard

12  contract document a requirement that any state funds provided

13  for the purchase of or improvements to real property are

14  contingent upon the contractor or political subdivision

15  granting to the state a security interest in the property at

16  least to the amount of the state funds provided for at least 5

17  years from the date of purchase or the completion of the

18  improvements or as further required by law. The contract must

19  include a provision that, as a condition of receipt of state

20  funding for this purpose, the provider agrees that, if it

21  disposes of the property before the department's interest is

22  vacated, the provider will refund the proportionate share of

23  the state's initial investment, as adjusted by depreciation.

24         (12)  The department shall develop and refine

25  contracting and accountability methods that are

26  administratively efficient and that provide for optimal

27  provider performance.

28         (13)  The department may competitively procure any

29  contract when it deems it is in the best interest of the state

30  to do so. The requirements described in subsection (1) do not,

31  and may not be construed to, limit in any way the department's

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 1  ability to competitively procure any contract it executes, and

 2  the absence of any or all of the criteria described in

 3  subsection (1) may not be used as the basis for an

 4  administrative or judicial protest of the department's

 5  determination to conduct competition, make an award, or

 6  execute any contract.

 7         (14)  A contract may include cost-neutral,

 8  performance-based incentives that may vary according to the

 9  extent a provider achieves or surpasses the performance

10  standards set forth in the contract. Such incentives may be

11  weighted proportionally to reflect the extent to which the

12  provider has demonstrated that it has consistently met or

13  exceeded the contractual requirements and the department's

14  performance standards.

15         (2)(15)  Nothing contained in chapter 287 shall require

16  competitive bids for health services involving examination,

17  diagnosis, or treatment.

18         Section 3.  Paragraphs (a), (b), (e), (f), and (g) of

19  subsection (1), paragraph (b) of subsection (2), paragraph (a)

20  of subsection (4), and subsections (6) and (9) of section

21  409.1671, Florida Statutes, are amended to read:

22         409.1671  Foster care and related services;

23  privatization.--

24         (1)(a)  It is the intent of the Legislature that the

25  Department of Children and Family Services shall outsource

26  privatize the provision of foster care and related services

27  statewide. It is further the Legislature's intent to encourage

28  communities and other stakeholders in the well-being of

29  children to participate in assuring that children are safe and

30  well-nurtured. However, while recognizing that some local

31  governments are presently funding portions of certain foster

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 1  care and related services programs and may choose to expand

 2  such funding in the future, the Legislature does not intend by

 3  its outsourcing privatization of foster care and related

 4  services that any county, municipality, or special district be

 5  required to assist in funding programs that previously have

 6  been funded by the state. Counties that provide children and

 7  family services with at least 40 licensed residential group

 8  care beds by July 1, 2003, and provide at least $2 million

 9  annually in county general revenue funds to supplement foster

10  and family care services shall continue to contract directly

11  with the state and shall be exempt from the provisions of this

12  section. Nothing in this paragraph prohibits any county,

13  municipality, or special district from future voluntary

14  funding participation in foster care and related services. As

15  used in this section, the term "outsource" "privatize" means

16  to contract with competent, community-based agencies. The

17  department shall submit a plan to accomplish outsourcing

18  privatization statewide, through a competitive process, phased

19  in over a 3-year period beginning January 1, 2000. This plan

20  must be developed with local community participation,

21  including, but not limited to, input from community-based

22  providers that are currently under contract with the

23  department to furnish community-based foster care and related

24  services, and must include a methodology for determining and

25  transferring all available funds, including federal funds that

26  the provider is eligible for and agrees to earn and that

27  portion of general revenue funds which is currently associated

28  with the services that are being furnished under contract. The

29  methodology must provide for the transfer of funds

30  appropriated and budgeted for all services and programs that

31  have been incorporated into the project, including all

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 1  management, capital (including current furniture and

 2  equipment), and administrative funds to accomplish the

 3  transfer of these programs. This methodology must address

 4  expected workload and at least the 3 previous years'

 5  experience in expenses and workload. With respect to any

 6  district or portion of a district in which outsourcing

 7  privatization cannot be accomplished within the 3-year

 8  timeframe, the department must clearly state in its plan the

 9  reasons the timeframe cannot be met and the efforts that

10  should be made to remediate the obstacles, which may include

11  alternatives to total outsourcing privatization, such as

12  public-private partnerships. As used in this section, the term

13  "related services" includes, but is not limited to, family

14  preservation, independent living, emergency shelter,

15  residential group care, foster care, therapeutic foster care,

16  intensive residential treatment, foster care supervision, case

17  management, postplacement supervision, permanent foster care,

18  and family reunification. Unless otherwise provided for, the

19  state attorney shall provide child welfare legal services,

20  pursuant to chapter 39 and other relevant provisions, in

21  Pinellas and Pasco Counties. When a private nonprofit agency

22  has received case management responsibilities, transferred

23  from the state under this section, for a child who is

24  sheltered or found to be dependent and who is assigned to the

25  care of the outsourcing privatization project, the agency may

26  act as the child's guardian for the purpose of registering the

27  child in school if a parent or guardian of the child is

28  unavailable and his or her whereabouts cannot reasonably be

29  ascertained. The private nonprofit agency may also seek

30  emergency medical attention for such a child, but only if a

31  parent or guardian of the child is unavailable, his or her

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 1  whereabouts cannot reasonably be ascertained, and a court

 2  order for such emergency medical services cannot be obtained

 3  because of the severity of the emergency or because it is

 4  after normal working hours. However, the provider may not

 5  consent to sterilization, abortion, or termination of life

 6  support. If a child's parents' rights have been terminated,

 7  the nonprofit agency shall act as guardian of the child in all

 8  circumstances.

 9         (b)  It is the intent of the Legislature that the

10  department will continue to work towards full outsourcing

11  privatization in a manner that assures the viability of the

12  community-based system of care and best provides for the

13  safety of children in the child protection system. To this

14  end, the department is directed to continue the process of

15  outsourcing privatizing services in those counties in which

16  signed startup contracts have been executed. The department

17  may also continue to enter into startup contracts with

18  additional counties. However, no services shall be transferred

19  to a community-based care lead agency until the department, in

20  consultation with the local community alliance, has determined

21  and certified in writing to the Governor and the Legislature

22  that the district is prepared to transition the provision of

23  services to the lead agency and that the lead agency is ready

24  to deliver and be accountable for such service provision. In

25  making this determination, the department shall conduct a

26  readiness assessment of the district and the lead agency.

27         1.  The assessment shall evaluate the operational

28  readiness of the district and the lead agency based on:

29         a.  A set of uniform criteria, developed in

30  consultation with currently operating community-based care

31  lead agencies and reflecting national accreditation standards,

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 1  that evaluate programmatic, financial, technical assistance,

 2  training and organizational competencies; and

 3         b.  Local criteria reflective of the local

 4  community-based care design and the community alliance

 5  priorities.

 6         2.  The readiness assessment shall be conducted by a

 7  joint team of district and lead agency staff with direct

 8  experience with the start up and operation of a

 9  community-based care service program and representatives from

10  the appropriate community alliance. Within resources available

11  for this purpose, the department may secure outside audit

12  expertise when necessary to assist a readiness assessment

13  team.

14         3.  Upon completion of a readiness assessment, the

15  assessment team shall conduct an exit conference with the

16  district and lead agency staff responsible for the transition.

17         4.  Within 30 days following the exit conference with

18  staff of each district and lead agency, the secretary shall

19  certify in writing to the Governor and the Legislature that

20  both the district and the lead agency are prepared to begin

21  the transition of service provision based on the results of

22  the readiness assessment and the exit conference. The document

23  of certification must include specific evidence of readiness

24  on each element of the readiness instrument utilized by the

25  assessment team as well as a description of each element of

26  readiness needing improvement and strategies being implemented

27  to address each one.

28         (e)  As used in this section, the term "eligible lead

29  community-based provider" means a single agency with which the

30  department shall contract for the provision of child

31  protective services in a community that is no smaller than a

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 1  county. The secretary of the department may authorize more

 2  than one eligible lead community-based provider within a

 3  single county when to do so will result in more effective

 4  delivery of foster care and related services. To compete for

 5  an outsourcing a privatization project, such agency must have:

 6         1.  The ability to coordinate, integrate, and manage

 7  all child protective services in the designated community in

 8  cooperation with child protective investigations.

 9         2.  The ability to ensure continuity of care from entry

10  to exit for all children referred from the protective

11  investigation and court systems.

12         3.  The ability to provide directly, or contract for

13  through a local network of providers, all necessary child

14  protective services. Such agencies should directly provide no

15  more than 35 percent of all child protective services

16  provided.

17         4.  The willingness to accept accountability for

18  meeting the outcomes and performance standards related to

19  child protective services established by the Legislature and

20  the Federal Government.

21         5.  The capability and the willingness to serve all

22  children referred to it from the protective investigation and

23  court systems, regardless of the level of funding allocated to

24  the community by the state, provided all related funding is

25  transferred.

26         6.  The willingness to ensure that each individual who

27  provides child protective services completes the training

28  required of child protective service workers by the Department

29  of Children and Family Services.

30         7.  The ability to maintain eligibility to receive all

31  federal child welfare funds, including Title IV-E and IV-A

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 1  funds, currently being used by the Department of Children and

 2  Family Services.

 3         8.  Written agreements with Healthy Families Florida

 4  lead entities in their community, pursuant to s. 409.153, to

 5  promote cooperative planning for the provision of prevention

 6  and intervention services.

 7         9.  A board of directors, of which at least 51 percent

 8  of the membership is comprised of persons residing in this

 9  state. Of the state residents, at least 51 percent must also

10  reside within the service area of the lead community-based

11  provider.

12         (f)1.  The Legislature finds that the state has

13  traditionally provided foster care services to children who

14  have been the responsibility of the state. As such, foster

15  children have not had the right to recover for injuries beyond

16  the limitations specified in s. 768.28. The Legislature has

17  determined that foster care and related services need to be

18  outsourced privatized pursuant to this section and that the

19  provision of such services is of paramount importance to the

20  state. The purpose for such outsourcing privatization is to

21  increase the level of safety, security, and stability of

22  children who are or become the responsibility of the state.

23  One of the components necessary to secure a safe and stable

24  environment for such children is that private providers

25  maintain liability insurance. As such, insurance needs to be

26  available and remain available to nongovernmental foster care

27  and related services providers without the resources of such

28  providers being significantly reduced by the cost of

29  maintaining such insurance.

30         2.  The Legislature further finds that, by requiring

31  the following minimum levels of insurance, children in

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 1  outsourced privatized foster care and related services will

 2  gain increased protection and rights of recovery in the event

 3  of injury than provided for in s. 768.28.

 4         (g)  In any county in which a service contract has not

 5  been executed by December 31, 2004, the department shall

 6  ensure access to a model comprehensive residential services

 7  program as described in s. 409.1677 which, without imposing

 8  undue financial, geographic, or other barriers, ensures

 9  reasonable and appropriate participation by the family in the

10  child's program.

11         1.  In order to ensure that the program is operational

12  by December 31, 2004, the department must, by December 31,

13  2003, begin the process of establishing access to a program in

14  any county in which the department has not either entered into

15  a transition contract or approved a community plan, as

16  described in paragraph (d), which ensures full outsourcing

17  privatization by the statutory deadline.

18         2.  The program must be procured through a competitive

19  process.

20         3.  The Legislature does not intend for the provisions

21  of this paragraph to substitute for the requirement that full

22  conversion to community-based care be accomplished.

23         (2)

24         (b)  Persons employed by the department in the

25  provision of foster care and related services whose positions

26  are being outsourced under privatized pursuant to this statute

27  shall be given hiring preference by the provider, if provider

28  qualifications are met.

29         (4)(a)  The department, in consultation with the

30  community-based agencies that are undertaking the outsourced

31  privatized projects, shall establish a quality assurance

                                  35

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    Florida Senate - 2005                           CS for SB 1476
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 1  program for privatized services. The quality assurance program

 2  shall be based on standards established by the Adoption and

 3  Safe Families Act as well as by a national accrediting

 4  organization such as the Council on Accreditation of Services

 5  for Families and Children, Inc. (COA) or CARF--the

 6  Rehabilitation Accreditation Commission. Each program operated

 7  under contract with a community-based agency must be evaluated

 8  annually by the department. The department shall, to the

 9  extent possible, use independent financial audits provided by

10  the community-based care agency to eliminate or reduce the

11  ongoing contract and administrative reviews conducted by the

12  department. The department may suggest additional items to be

13  included in such independent financial audits to meet the

14  department's needs. Should the department determine that such

15  independent financial audits are inadequate, then other

16  audits, as necessary, may be conducted by the department.

17  Nothing herein shall abrogate the requirements of s. 215.97.

18  The department shall submit an annual report regarding quality

19  performance, outcome measure attainment, and cost efficiency

20  to the President of the Senate, the Speaker of the House of

21  Representatives, the minority leader of each house of the

22  Legislature, and the Governor no later than January 31 of each

23  year for each project in operation during the preceding fiscal

24  year.

25         (6)  Beginning January 1, 1999, and continuing at least

26  through June 30, 2000, the Department of Children and Family

27  Services shall outsource privatize all foster care and related

28  services in district 5 while continuing to contract with the

29  current model programs in districts 1, 4, and 13, and in

30  subdistrict 8A, and shall expand the subdistrict 8A pilot

31  program to incorporate Manatee County. Planning for the

                                  36

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    Florida Senate - 2005                           CS for SB 1476
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 1  district 5 outsourcing privatization shall be done by

 2  providers that are currently under contract with the

 3  department for foster care and related services and shall be

 4  done in consultation with the department.  A lead provider of

 5  the district 5 program shall be competitively selected, must

 6  demonstrate the ability to provide necessary comprehensive

 7  services through a local network of providers, and must meet

 8  criteria established in this section. Contracts with

 9  organizations responsible for the model programs must include

10  the management and administration of all outsourced privatized

11  services specified in subsection (1). However, the department

12  may use funds for contract management only after obtaining

13  written approval from the Executive Office of the Governor.

14  The request for such approval must include, but is not limited

15  to, a statement of the proposed amount of such funds and a

16  description of the manner in which such funds will be used. If

17  the community-based organization selected for a model program

18  under this subsection is not a Medicaid provider, the

19  organization shall be issued a Medicaid provider number

20  pursuant to s. 409.907 for the provision of services currently

21  authorized under the state Medicaid plan to those children

22  encompassed in this model and in a manner not to exceed the

23  current level of state expenditure.

24         (9)  Each district and subdistrict that participates in

25  the model program effort or any future outsourcing

26  privatization effort as described in this section must

27  thoroughly analyze and report the complete direct and indirect

28  costs of delivering these services through the department and

29  the full cost of outsourcing privatization, including the cost

30  of monitoring and evaluating the contracted services.

31  

                                  37

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    Florida Senate - 2005                           CS for SB 1476
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 1         Section 4.  The Office of Program Policy Analysis and

 2  Government Accountability shall conduct two reviews of the

 3  contract-management and accountability structures of the

 4  Department of Children and Family Services, including, but not

 5  limited to, whether the department is adequately monitoring

 6  and managing its outsourced or privatized functions and

 7  services. The office shall report its findings and

 8  recommendations to the President of the Senate, the Speaker of

 9  the House of Representatives, and the Auditor General by

10  February 1 of 2006 and 2007, respectively.

11         Section 5.  Section 402.72, Florida Statutes, is

12  repealed.

13         Section 6.  This act shall take effect July 1, 2005.

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

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    Florida Senate - 2005                           CS for SB 1476
    586-1717B-05




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1476

 3                                 

 4  Clarifies the definitions of "contract manager," "contract
    monitor,""outsourcing,""performance measure," and "privatize,"
 5  and adds a definition for "performance standard."

 6  Requires the Department of Children and Families (DCF) to
    provide an opportunity for competition among postsecondary
 7  institutions when DCF procures from those institutions and
    limits the ability of the postsecondary institution to
 8  subcontract a DCF contract.

 9  Clarifies that DCF may privatize a service only after
    receiving a specific legislative authority.
10  
    Provides direction to DCF regarding the renewal of a contract.
11  
    Removes the requirement that DCF provide reports to the
12  Legislature, replacing that provision with a requirement that
    DCF make available electronically to the Legislature all
13  documents associated with DCF's procurement and contracting
    functions.
14  
    Amends s. 409.1671, F.S., to conform definitions.
15  
    Corrects the date of the first required report from the Office
16  of Program Policy Analysis and Government Accountability.

17  Preserves the requirement that systems and controls be
    implemented to ensure financial integrity and service
18  provision quality in the Medicaid waiver service system,
    amending s. 402.73, F.S., to change the name of the agency
19  responsible for meeting that requirement from DCF to the
    Agency for Persons with Disabilities.
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21  

22  

23  

24  

25  

26  

27  

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31  

                                  39

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