August 11, 2020
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414319
  Amendment
Bill No. 1146
Amendment No. 414319
CHAMBER ACTION
Senate House
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1Representative(s) Kottkamp offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause, and insert:  
5
6     Section 1.  Paragraph (i) is added to subsection (2) of
7section 20.22, Florida Statutes, to read:
8     20.22  Department of Management Services.--There is created
9a Department of Management Services.
10     (2)  The following divisions and programs within the
11Department of Management Services are established:
12     (i)  Center for Efficient Government.
13     Section 2.  Section 287.0571, Florida Statutes, is created
14to read:
15     287.0571  Applicability of ss. 287.0571-287.0578.--
16     (1)  Sections 287.0571-287.0578 shall be known as the
17"Center for Efficient Government Act".
18     (2)  It is the intent of the Legislature that state
19agencies focus on their core missions and deliver services
20effectively and efficiently by leveraging resources and
21contracting with the private sector for services that can be
22more effectively provided by the private sector and that reduce
23the cost of government for all citizens of the state.
24     (3)  The provisions of this act shall not be required to
25apply to procurements of commodities and contractual services
26listed in s. 287.057(5)(e), (f), and (g) and (22).
27     (4)  The provisions of this act shall not apply to:
28     (a)  Procurements of commodities and contractual services
29subject to s. 287.055.
30     (b)  Contracts in support of the planning, development,
31implementation, operation, or maintenance of the road, bridge,
32and public transportation construction program of the Department
33of Transportation.
34     (5)  Only the provisions of ss. 287.0571?287.0576,
35287.0578, and section 13 of this act shall apply to procurements
36governed by the provisions of HB 1827 or SB 1476, 2005 Regular
37Session of the Legislature, or similar legislation, if adopted
38in the same legislative session or an extension thereof and
39enacted into law.
40     Section 3.  Section 287.0573, Florida Statutes, is created
41to read:
42     287.0573  Definitions.--For the purposes of this act:
43     (1)  "Center" means the Center for Efficient Government.
44     (2)  "Centralized gate process" means the system of review
45phases for a proposed procurement of contractual services, the
46conclusion of each phase being a "gate" or decision point at
47which the commission determines whether the procurement under
48consideration may proceed to the next phase.
49     (3)  "Commission" means the Commission on Efficient
50Government.
51     Section 4.  Section 287.0574, Florida Statutes, is created
52to read:
53     287.0574  Criteria for procurement of contractual
54services.--
55     (1)  The agency must include with its final legislative
56budget request the business cases for procurements for
57contractual services that the agency proposes in the fiscal year
58for which the final legislative budget request is submitted, in
59the manner and form prescribed in the legislative budget request
60instructions pursuant to s. 216.023.
61     (2)  When compared to the cost and quality of service
62performed by state employees, an agency may procure a
63contractual service currently or previously provided by state
64employees only if, upon full implementation of a procurement,
65it:
66     (a)  Results in reasonable cost savings while maintaining
67at least the same quality of service;
68     (b)  Reasonably increases the quality of service while not
69exceeding the same level of cost; or
70     (c)  Significantly increases measurable outputs and quality
71while minimally increasing costs, at levels and percentages
72proposed by the procuring agency and approved in writing in
73advance of the procurement by the commission. Only projects with
74an annual cost below $10 million in each fiscal year may meet
75this criterion.
76     Section 5.  Section 287.0575, Florida Statutes, is created
77to read:
78     287.0575  Commission on Efficient Government; membership;
79duties; Center for Efficient Government; duties.--
80     (1)  The Commission on Efficient Government is created
81within the Department of Management Services to oversee the
82Center for Efficient Government and carry out the
83responsibilities specified in this section.
84     (a)  The commission shall consist of seven members
85appointed by the Governor:
86     1.  Four members shall be heads of executive branch
87agencies.
88     2.  Three members shall be from the private sector and,
89collectively, shall have experience with procurement,
90successfully increasing operational efficiency, and implementing
91complex projects in the private sector business environment. No
92private sector member of the commission may at any time during
93his or her appointment to the commission be registered to lobby
94the executive or legislative branch.
95     (b)  By August 1, 2005, the Governor shall appoint two
96private sector members and two agency heads for terms of 3 years
97and one private sector member and two agency heads for terms of
984 years. Thereafter, each member shall serve for a term of 4
99years. The private sector members shall serve without
100compensation but shall be entitled to reimbursement for per diem
101and travel expenses pursuant to s. 112.061.
102     (c)  No member of the commission shall participate in
103commission review of a procurement when his or her agency is
104conducting the procurement or, in the case of a private sector
105member, he or she has a business relationship with an entity
106that is involved or could potentially be involved in the
107procurement.
108     (d)  The members of the commission may not delegate their
109membership to a designee.
110     (e)  A quorum shall consist of at least four members,
111including at least two private-sector members. At least one
112private-sector member must vote on the prevailing side for
113commission action to take effect.
114     (f)  Any vacancy on the commission shall be filled in the
115same manner as the original appointment, and any member
116appointed to fill a vacancy occurring for a reason other than
117the expiration of a term shall serve only for the unexpired term
118of the member's predecessor.
119     (g)  At the first meeting of the commission after August 1,
1202005, the members of the commission shall elect, by majority
121vote of those in attendance, a member to serve as chair of the
122commission. No later than September 1 of each succeeding year,
123the commission shall elect a new chair.
124     (h)  The commission shall:
125     1.  Oversee the Center for Efficient Government.
126     2.  Adopt the centralized gate process.
127     3.  Review, evaluate, and grant approval of, withhold
128approval of, or deny approval of a proposed procurement at each
129gate established within the centralized gate process. The
130commission shall adopt rules regarding the procurements that
131must pass through the centralized gate process. Such
132procurements shall include, at a minimum, those subject to the
133requirements of s. 287.0576(1).
134     4.  Approve templates and guidelines and adopt rules
135prescribing standards and procedures for use by agencies during
136the procurement process which shall, at a minimum, include the
137requirements under ss. 287.0576-287.0577 for procurements of
138contractual services.
139     5.  Implement a plan for providing information and
140documentation to the Legislature and the Governor on behalf of
141agencies and in compliance with the provisions of this chapter.
142The plan shall include, at a minimum, providing copies of
143documents to be reviewed by the commission to the President of
144the Senate, the Speaker of the House of Representatives, the
145Governor, and the chairs of the relevant appropriations and
146substantive legislative committees at least 14 days prior to the
147meeting of the commission at which the proposed procurement will
148be discussed.
149     6.  Review the performance of procurements which have
150advanced through the full centralized gate process.
151     (2)  The Center for Efficient Government is created in the
152department to establish and promote best business practices so
153that the delivery of services to citizens of the state are
154provided in the most effective and cost-efficient manner
155possible. The secretary of the department shall appoint a
156director of the center. The duties and responsibilities of the
157center are:
158     (a)  Recommending and implementing a centralized gate
159process for reviewing and evaluating, and granting, withholding,
160or denying approval of, agency procurements which, at a minimum,
161shall include the requirements contained in s. 287.0576(1) and
162(2) for contractual services procurements.
163     (b)  Providing support and assistance to the commission,
164including, but not limited to, reviewing and validating agency
165business cases, recommending standards, processes, templates,
166and guidelines for use by agencies during the procurement
167process and providing information and documentation as requested
168or required by law.
169     (c)  Assisting agencies directly in the procurement process
170as needed to ensure a high-quality procurement, including, but
171not limited to, developing and updating business cases, drafting
172solicitation and contract documents, participating in contract
173negotiations, identifying performance measures, and advising
174agencies on performance measurement, contract management, and
175change management. The center shall also provide information,
176training, and technical assistance to agencies on the use of the
177standards, processes, templates, and guidelines developed for
178use by agencies during the procurement process.
179     (d)  Collecting data and information from agencies on an
180ongoing basis with regard to the status and results of
181procurements that have advanced completely through the
182centralized gate process, recommending incorporation of any
183lessons learned from such projects into commission standards,
184procedures, templates, and guidelines, as appropriate, and
185identifying and disseminating to agencies information regarding
186best practices in procurement, particularly contractual services
187procurements.
188     (e)  Developing and implementing, in consultation with the
189Agency for Workforce Innovation, guidelines for assisting
190employees whose jobs are eliminated as a result of procurements.
191     (3)  The department shall employ an adequate number of
192highly skilled, credentialed staff who collectively possess
193significant expertise and experience as required to carry out
194the responsibilities of this act.
195     (4)  Agencies shall submit to the center all information,
196documents, or other materials required by commission rule or
197this chapter.
198     Section 6.  Section 287.0576, Florida Statutes, is created
199to read:
200     287.0576  Review and analysis of proposed procurement of
201contractual services; centralized gate process.--
202     (1)  At a minimum, procurements required to undergo review
203and analysis through the centralized gate process adopted by the
204commission are:
205     (a)  Contractual services procurements that have an
206estimated total cost of $10 million or more in any fiscal year.
207     (b)  New contractual services procurements that will
208require adjustments to the agency's budget, in accordance with
209chapter 216, totaling $1 million or more. Amendments to existing
210contracts are excluded.
211     (c)  Contractual services procurements that do not involve
212an outlay of state funds estimated to total $10 million or more
213in any fiscal year because of the provision of services by the
214contractor at a rate significantly below market rate, the
215significant investment of other resources by the agency, or
216other reason, but in which the total value of the services
217performed by the agency and contractor under the contract is
218estimated to total $10 million or more in any fiscal year.
219Examples of such procurements include, but are not limited to,
220free, no-cost, or codevelopment contracts.
221     (d)  Contractual services procurements for which the sum of
222gross revenues or shared savings to be generated for the state
223and contractor over the term of the contract plus the sum of any
224payments to the contractor by the agency over the term of the
225contract, if any, is estimated to total $10 million or more in
226any fiscal year.
227     (e)  Contractual services procurements that do not meet the
228criteria in paragraphs (a)-(d) that the Legislature has directed
229to be subject to the centralized gate process.
230     (2)  Extensions and renewals of contracts resulting from
231procurements in subsection (1) and extensions and renewals of
232contracts meeting the criteria identified in paragraphs (1)(a),
233(c), and (d) which did not pass through the center shall undergo
234review and analysis through the centralized gate process
235implemented by the center, though, notwithstanding any law to
236the contrary, such contracts shall pass only through such gates
237as the commission determines are appropriate based on the
238legislative intent of this act.
239
240For purposes of determining whether a procurement meets the
241requirements of this section, multiple contractual services
242procurements for substantially similar or related functions or
243responsibilities occurring in a coordinated fashion or in close
244time proximity to one another are considered a single
245contractual services procurement for purposes of meeting the
246thresholds set forth in this section.
247     (3)  The centralized gate process shall require, at a
248minimum, review of the procurement by the commission at each
249gate. At each gate, the commission shall determine by majority
250vote to:
251     (a)  Approve the procurement, if the agency has
252sufficiently met the requirements of the current gate, and
253advance the procurement to the next phase;
254     (b)  Withhold approval of the procurement, if additional
255work must be completed in order to satisfy the requirements of
256the current gate, and retain the procurement in that phase; or
257     (c)  Deny the procurement, if the procurement is not a good
258business decision, and remove the procurement from
259consideration.
260
261Notwithstanding the provisions of this section, the commission
262may not deny procurements which are required by law. If the
263commission determines that a procurement required by law is not
264a good business decision, the commission shall withhold approval
265and transmit to the President of the Senate, the Speaker of the
266House of Representatives, and the Governor the reasons why the
267procurement should not be completed and any recommendation for
268legislative action. If the President of the Senate or the
269Speaker of the House of Representatives has not responded within
27014 business days of receipt of the communication, the commission
271shall proceed at its discretion consistent with the Legislative
272intent of this act.
273
274Notwithstanding any law to the contrary, agencies under the
275individual control of the Attorney General, the Chief Financial
276Officer, or the Commissioner of Agriculture are subject to the
277provisions of this act, except that the commission shall not
278grant, withhold, or deny approval of a procurement by such
279agency but instead may only provide recommendations to the
280agency. The respective agency head shall have sole authority to
281grant, withhold, or deny approval of such procurement.
282     (4)  The gates and required documentation comprising the
283centralized gate process shall, at a minimum, consist of:
284     (a)  The proposal identification gate, which shall include
285the business case.
286     (b)  The procurement preparation gate, which shall include
287the updated business case and the solicitation documents prior
288to the issuance of such documents. An agency may not release
289solicitation documents without the commission's approval at this
290gate. The commission must review and approve the written
291determination of the agency required pursuant to s.
292287.057(3)(a) before granting approval for the use of an
293invitation to negotiate, or withhold approval pending submission
294by the agency of an acceptable alternative solicitation method.
295     (c)  The contract development gate, which shall include the
296final business case and the proposed unexecuted contract. An
297agency may not execute the contract without the commission's
298approval at this gate.
299     (d)  The transition management gate, which shall include
300updates to the final business case and, for a procurement of
301contractual services, an analysis of the agency's and
302contractor's readiness for the contractor to perform the
303proposed responsibility or function. An agency may not
304transition to contractor performance without the commission's
305approval at this gate.
306     (e)  The post-implementation gate, which shall include
307updates to the final business case and a report on the adequacy
308of contractor performance.
309     (5)(a)  Any executed contract for a procurement passing
310through the centralized gate process pursuant to this section
311shall be null and void if an agency fails to comply with the
312commission decision at the proposal identification, procurement
313preparation, or contract development gate.
314     (b)  Failure to comply with any other requirements of this
315act or implementing rules shall not affect the validity of the
316competitive solicitation and award process or any contract.
317     (6)  The commission shall take action at each gate within
31860 days of the submission of a procurement by an agency.  If the
319commission does not take action within this timeframe, the
320agency head shall determine whether to grant, withhold, or deny
321approval of the procurement at that gate based on the rules and
322guidelines of the commission for that gate and shall notify the
323Governor, the President of the Senate, the Speaker of the House
324of Representatives, and the commission of such action and the
325circumstances thereof.
326     (7)  During the terms of the contracts, the agency shall
327annually submit with its legislative budget request a status
328report for each procurement that has passed through at least the
329first three gates of the centralized gate process describing the
330progress made to date, actual completion dates in comparison to
331planned completion dates, actual costs incurred in comparison to
332projected costs incurred, current issues requiring resolution,
333planned project milestones, deliverables, and expenditures for
334the next reporting period, and any other information relating to
335the contractual services that may be requested.
336     Section 7.  Section 287.0577, Florida Statutes, is created
337to read:
338     287.0577  Requirements for procurement of certain
339contractual services.--In addition to the other applicable
340requirements of this chapter, an agency shall comply with the
341following requirements for, at a minimum, procurements of
342contractual services estimated to total $1 million or more in
343any fiscal year and those subject to review under s.
344287.0576(1)(b), (c), (d), and (e) and (2):
345     (1)  BUSINESS CASE.--The agency shall develop a business
346case which describes and analyzes the procurement. The business
347case is not subject to challenge or protest pursuant to chapter
348120. The business case shall include, but not be limited to, the
349information in paragraphs (a)-(l).  For procurements not subject
350to commission review, the agency shall provide a copy of the
351business case to the President of the Senate and the Speaker of
352the House at least 14 days prior to releasing a solicitation.
353For procurements subject to commission review, the business case
354shall be in such detail as is appropriate given the current
355phase of the procurement but shall contain sufficient
356information to enable the commission to determine at that gate
357whether the procurement may proceed to the next procurement
358phase:
359     (a)1.  A detailed description of the function or
360responsibility for which the procurement is proposed;
361     2.  If the agency is currently performing the function or
362responsibility, a description and analysis of the agency's
363current performance, including, but not limited to, baseline
364costs and performance metrics;
365     3.  The goals desired to be achieved through the
366procurement and the rationale for such goals; and
367     4.  A citation of the existing or proposed legal authority
368for contracting for the function or responsibility.
369     (b)1.  A description of available options for achieving the
370goals. If state employees are currently performing the function
371or responsibility, at least one option involving maintaining
372state provision of the function or responsibility shall be
373included.
374     2.  A description of the current market for the contractual
375services which are under consideration for procurement.
376     3.  An analysis of the advantages and disadvantages of each
377option, including, at a minimum, potential performance
378improvements and risks.
379     (c)  A cost-benefit analysis documenting the direct and
380indirect specific baseline costs, savings, and qualitative and
381quantitative benefits involved in or resulting from the
382implementation of the recommended option or options. Such
383analysis shall specify the schedule that, at a minimum, must be
384adhered to in order to achieve the estimated savings. All
385elements of cost shall be clearly identified in the cost-benefit
386analysis, described in the business case, and supported by
387applicable records and reports. The agency head shall attest
388that, based on the data and information underlying the business
389case, to the best of his or her knowledge, all projected costs,
390savings, and benefits are valid and achievable. "Cost" means the
391reasonable, relevant, and verifiable cost which may include, but
392not be limited to, elements such as personnel costs, materials
393and supplies, services, equipment, capital depreciation costs,
394rent, maintenance and repairs, utilities, insurance, personnel
395travel, overhead, and interim and final payments. The
396appropriate elements shall depend on the nature of the specific
397initiative. "Savings" means the difference between the direct
398and indirect actual annual baseline costs compared to the
399projected annual cost for the contracted functions or
400responsibilities in any succeeding state fiscal year during the
401term of the contract.
402     (d)  A description of variance among agency policies and
403processes and, as appropriate, a discussion of options for or a
404plan to standardize, consolidate, or revise current policies and
405processes, if any, to reduce the customization of any proposed
406solution that would otherwise be required.
407     (e)  A description of the specific performance standards
408that must, at a minimum, be met to ensure adequate performance.
409     (f)  A statement of the potential impact on federal, state,
410and local revenues and expenditures. The statement shall
411specifically describe the effect on general revenue, trust
412funds, general revenue service charges, and interest on trust
413funds together with the potential direct or indirect effect on
414federal funding and cost allocations.
415     (g)  The projected timeframe for key events, from the
416beginning of the procurement process through the expiration of a
417contract.
418     (h)  A plan to ensure compliance with public records law
419which must include components that:
420     1.  Provide public access to public records at a cost that
421does not exceed that provided in chapter 119.
422     2.  Ensure the confidentiality of records that are exempt
423or confidential under law.
424     3.  Meet all legal requirements for record retention
425provided by law.
426     4.  Require transfer to the state, at no cost, of all
427public records in possession of the contractor upon termination
428of the contract.
429     (i)  A specific and feasible contingency plan addressing
430contractor nonperformance and a description of the tasks
431involved in and costs required for its implementation.
432     (j)  An agency transition plan for addressing changes in
433the number of agency personnel, affected business processes,
434employee transition issues, and communication with affected
435stakeholders, such as agency clients and the public. The
436transition plan shall contain a reemployment and retraining
437assistance plan for employees who are not retained by the agency
438or employed by the contractor.
439     (k)  A listing of any assets proposed for surplus or use by
440a contractor. For those assets proposed to be used by a
441contractor, the business case shall include a description of the
442proposed requirements for maintaining those assets by the
443contractor or the agency in accordance with chapter 273, a plan
444for the transitioning of the assets upon termination of the
445contract, and a description of how the planned use by a
446contractor is in the best interest of the agency and state.
447     (l)  A plan for ensuring access by persons with
448disabilities in compliance with applicable state and federal
449law.
450
451If a contractual services procurement meets the criteria for
452submission of feasibility study documentation as required by the
453legislative budget request instructions established pursuant to
454s. 216.023, the agency shall submit such documentation.
455     (2)  SOLICITATION REQUIREMENTS.--The solicitation for a
456contractual services procurement shall include, at a minimum:
457     (a)  A detailed description of the function or
458responsibility under consideration for contracting and, if the
459function or responsibility is currently being performed by an
460agency, a description and analysis of the agency's current
461performance.
462     (b)  Requirements that are achievable, unambiguous,
463measurable, meaningful, and complete.
464     (c)  The criteria that after contract execution will be
465used to assess contractor performance and the minimum acceptable
466contractor performance levels.
467     (3)  CONTRACT.--Each contract must include, but need not be
468limited to:
469     (a)  A detailed scope of work that clearly specifies each
470service or deliverable to be provided, including a description
471of each deliverable or activity that is quantifiable,
472measurable, and verifiable.
473     (b)  All service-level agreements describing all services
474to be provided under the terms of the agreement, the agency's
475service requirements and performance objectives, and specific
476responsibilities of the agency and the contractor.
477     (c)  Associated costs and savings, specific payment terms
478and payment schedule, including incentive and disincentive
479provisions, criteria governing payment, and a clear and specific
480implementation schedule that will be implemented in order to
481complete all required activities needed to transfer the service
482from the agency to the contractor and operate the service
483successfully.
484     (d)  Clear and specific identification of all required
485performance standards, which must include, at a minimum:
486     1.  Detailed measurable acceptance criteria for each
487deliverable and service to be provided to the agency under the
488terms of the contract which document the required performance
489level.
490     2.  A method for monitoring and reporting progress in
491achieving specified performance standards and levels.
492     3.  The sanctions or disincentives that shall be assessed
493for nonperformance by the contractor or agency.
494     (e)  A requirement that the contractor maintain adequate
495accounting records that comply with all applicable federal and
496state laws and generally accepted accounting principles.
497     (f)  A requirement authorizing state access to and audit of
498all records related to the contract or any responsibilities or
499functions under the contract for state audit and legislative
500oversight purposes and a requirement for service organization
501audits in accordance with professional auditing standards, if
502appropriate.
503     (g)  A requirement describing the timing and substance of
504all plans and status or progress reports that are to be
505provided. All plans and status or progress reports must comply
506with any relevant state and federal standards.
507     (h)  A requirement that the contractor comply with public
508records laws. The contractor must:
509     1.  Keep and maintain the public records that ordinarily
510and necessarily would be required by the state agency in order
511to perform the function or service.
512     2.  Provide the public with access to such public records
513on the same terms and conditions that the state agency would and
514at a cost that does not exceed that provided in chapter 119.
515     3.  Ensure the confidentiality of records that are exempt
516from public disclosure or made confidential under law.
517     4.  Meet all requirements for retaining records and
518transfer to the state, at no cost, all public records in
519possession of the contractor upon termination of the contract
520and destroy any duplicate public records which are exempt and
521confidential. All records stored electronically must be provided
522to the state in a format that is compatible with information
523technology systems of the state.
524     (i)  A requirement that any state funds provided for the
525purchase of or improvements to real property be made contingent
526upon the contractor granting to the state a security interest in
527the property which is at least equal to the amount of the state
528funds provided for the most recent years following the date of
529purchase or the completion of improvements, or as otherwise
530required by law. The contract must include a provision that, if
531the contractor disposes of the property before the agency's
532interest is vacated, the contractor will refund the
533proportionate share of the state's initial investment, as
534adjusted by depreciation.
535     (j)  If a contract involves the development or creation of
536intellectual property, the contract must specify the ownership
537of such intellectual property and any rights of the state to
538use, modify, reproduce, or disseminate the intellectual
539property.
540     (k)  A provision that the contractor annually submit and
541verify, pursuant to s. 92.525, all required financial
542statements.
543     (l)  A requirement that the contractor shall interview and
544consider for employment with the contractor each displaced state
545employee who is interested in such employment.
546     (m)  Provisions requiring that venue for any action
547regarding the contract shall be in Leon County and that the
548contract shall be interpreted according to the laws of this
549state.
550     (4)  AMENDMENTS.--An agency may not amend a contract
551without first submitting the proposed contract amendment to the
552Executive Office of the Governor for approval and notifying the
553chairs of the legislative appropriations committees of such
554submission if the effect of the amendment would be to:
555     (a)  Increase the value of the contract by $1 million or
556more for those contracts with a total value of at least $1
557million but less than $10 million; or
558     (b)  Increase the value of the contract by 10 percent or
559more for those contracts with a total value of $10 million or
560more.
561
562An agency shall not divide a contract amendment so as to avoid
563the requirements of this section.
564     (5)  In addition to the requirements of subsections
565287.057(13) and (14), prior to the renewal or extension of a
566contract, an agency shall document whether all specific direct
567and indirect costs, savings, performance standards, and
568qualitative and quantitative benefits identified in the contract
569have been met by the contractor and the agency. If the actual
570performance of the contractor does not meet the required
571performance as identified in the contract, the agency shall
572explain the reasons why and provide justification for the
573extensions or renewal of the contract. This documentation shall
574be included in the official contract file.
575     Section 8.  Section 287.0578, Florida Statutes, is created
576to read:
577     287.0578  Subsequent inconsistent laws.--Subsequent
578inconsistent laws shall supersede this act only to the extent
579they do so by express reference to this section.
580     Section 9.  Paragraph (b) of subsection (17) of section
581287.057, Florida Statutes, is amended to read:
582     287.057  Procurement of commodities or contractual
583services.--
584     (17)  For a contract in excess of the threshold amount
585provided in s. 287.017 for CATEGORY FOUR, the agency head shall
586appoint:
587     (b)  At least three persons to conduct negotiations during
588a competitive sealed reply procurement who collectively have
589experience and knowledge in negotiating contracts, contract
590procurement, and the program areas and service requirements for
591which commodities or contractual services are sought. When the
592annual value of a contract is in excess of $1 million, at least
593one of the persons conducting negotiations must be certified as
594a contract negotiator based upon rules adopted by the Department
595of Management Services.
596     Section 10.  Section 215.4211, Florida Statutes, is created
597to read:
598     215.4211  Review of contracts for state agencies.--The
599Chief Financial Officer may request, as he or she deems
600necessary, the option to review and provide comments prior to
601the execution of any contract that is required to be in
602compliance with the provisions of s. 287.0577(3).
603     Section 11.  Section 216.1817, Florida Statutes, is created
604to read:
605     216.1817  Placement of positions in reserve;
606reestablishment of positions.--If a procurement of contractual
607services involves the performance of functions or
608responsibilities that are being shifted from state employees to
609a contractor, the agency shall identify within the business case
610prepared pursuant to s. 287.0577 all resources which are
611affected, including full-time equivalent positions. All full-
612time equivalent positions identified in the business case shall
613be placed in reserve by the Executive Office of the Governor
614until the end of the second year of the contract.  However, in
615the business case, the agency may account for any savings from
616the full-time equivalent positions identified and held in
617reserve.  Notwithstanding the provisions of s. 216.262, the
618Executive Office of the Governor shall request authority from
619the Legislative Budget Commission to reestablish full-time
620equivalent positions above the number fixed by the Legislature
621if a contract is terminated and the performance of the functions
622or responsibilities must be returned to the agency.
623     Section 12.  Section 287.074, Florida Statutes, is created
624to read:
625     287.074  Actions reserved to public officers or
626employees.--
627     (1)  Only a public officer or a public employee upon whom
628the public officer has delegated authority shall, consistent
629with law, take actions including, but not limited to:
630     (a)  Selecting state employees;
631     (b)  Approving position descriptions, performance
632standards, or salary adjustments for state employees; and
633     (c)  Hiring, promoting, disciplining, demoting, and
634dismissing a state employee.
635     (2)  Only a public officer shall, consistent with law,
636commission and appoint state officers.
637     Section 13.  A contractor, as defined in chapter 287,
638Florida Statutes, or its employees, agents, or subcontractors,
639may not knowingly participate, through decision, approval,
640disapproval, preparation of any part of a purchase request,
641investigation, or auditing, in the procurement of contractual
642services by an agency from an entity in which the contractor, or
643its employees, agents, or subcontractors has a material
644interest.
645     Section 14.  The Center for Efficient Government and the
646Commission on Efficient Government shall terminate on July 1,
6472010, unless reenacted by the Legislature prior to that date. It
648is the intent of the Legislature that, beginning July 1, 2010,
649the various state agencies shall perform the review functions
650required under this act for procurements of contractual services
651under their jurisdiction. It is also the intent of the
652Legislature that beginning July 1, 2010, the positions
653authorized by this act shall remain with the Department of
654Management Services, which shall continue providing technical
655assistance as required in this act.
656     Section 15.  Section 287.0572, Florida Statutes, is
657renumbered as section 287.0579, Florida Statutes:
658     287.0579 287.0572  Present-value methodology.--
659     (1)  The cost of bids, proposals, or replies for state
660contracts that include provisions for unequal payment streams or
661unequal time payment periods shall be evaluated using present-
662value methodology. Each agency, as defined in s. 287.012(1),
663shall perform the evaluation using the present-value discount
664rate supplied by the department. The present-value discount rate
665shall be the rate for United States Treasury notes and bonds
666published in the Interest Rates: Money and Capital Markets
667section of the most recent copy of the Federal Reserve Bulletin
668published at the time of issuance of the request for proposals,
669the invitation to negotiate, or the invitation to bid.
670     (2)  The department may adopt rules to administer
671subsection (1).
672     Section 16.  Subsection (3) of section 119.0721, Florida
673Statutes, is amended to read:
674     119.0721  Social security number exemption.--
675     (3)  An agency shall not deny a commercial entity engaged
676in the performance of a commercial activity, which, for purposes
677of this subsection, means an activity that provides a product or
678service that is available from a private source as defined in s.
67914.203 or its agents, employees, or contractors access to social
680security numbers, provided the social security numbers will be
681used only in the normal course of business for legitimate
682business purposes, and provided the commercial entity makes a
683written request for social security numbers, verified as
684provided in s. 92.525, legibly signed by an authorized officer,
685employee, or agent of the commercial entity. The verified
686written request must contain the commercial entity's name,
687business mailing and location addresses, business telephone
688number, and a statement of the specific purposes for which it
689needs the social security numbers and how the social security
690numbers will be used in the normal course of business for
691legitimate business purposes. The aggregate of these requests
692shall serve as the basis for the agency report required in
693subsection (7). An agency may request any other information as
694may be reasonably necessary to verify the identity of the entity
695requesting the social security numbers and the specific purposes
696for which such numbers will be used; however, an agency has no
697duty to inquire beyond the information contained in the verified
698written request. A legitimate business purpose includes
699verification of the accuracy of personal information received by
700a commercial entity in the normal course of its business; use in
701a civil, criminal, or administrative proceeding; use for
702insurance purposes; use in law enforcement and investigation of
703crimes; use in identifying and preventing fraud; use in
704matching, verifying, or retrieving information; and use in
705research activities. A legitimate business purpose does not
706include the display or bulk sale of social security numbers to
707the general public or the distribution of such numbers to any
708customer that is not identifiable by the distributor.
709     Section 17.  Section 14.203, Florida Statutes, is repealed.
710     Section 18.  There is hereby appropriated $1,023,554
711recurring budget authority to the Department of Management
712Services from the General Revenue Fund, and nine full-time
713equivalent positions are authorized, to carry out the activities
714of the Center for Efficient Government and the Commission on
715Efficient Government as provided in this act.
716     Section 19.  This act shall take effect July 1, 2005.
717
718
719================= T I T L E  A M E N D M E N T =================
720
721     Remove the entire title, and insert:  
722
723
A bill to be entitled
724An act relating to procurement of contractual services by
725an agency; amending s. 20.22, F.S.; placing the Center for
726Efficient Government in the Department of Management
727Services; creating s. 287.0571, F.S.; providing a popular
728name; providing legislative intent; providing that
729procurements of specified commodities and services are not
730subject to the act; providing specified applicability;
731creating s. 287.0573, F.S.; providing definitions;
732creating s. 287.0574, F.S.; providing criteria for the
733procurement of contractual services by an agency;
734requiring an agency to include with its final legislative
735budget request the business cases for specified
736procurements; creating s. 287.0575, F.S.; creating the
737Commission on Efficient Government within the Department
738of Management Services; providing for purpose, membership,
739and organization of the commission; providing duties and
740responsibilities of the commission; creating the Center
741for Efficient Government; providing purpose and
742organization of the center; providing duties and
743responsibilities of the center; requiring the center to
744recommend and implement a centralized gate process for
745reviewing, evaluating, and approving agency procurements;
746requiring state agencies to submit specified information,
747documents, and other materials required under commission
748rules; creating s. 287.0576, F.S.; specifying procurements
749which must be reviewed and evaluated under the centralized
750gate process; providing minimum requirements for the
751centralized gate process; providing for specified
752determinations by the commission at each gate; providing
753procedure with respect to an unfavorable finding by the
754commission with respect to a procurement required by law;
755providing that agencies under the individual control of
756the Attorney General, Chief Financial Officer, or
757Commissioner of Agriculture are subject to the act, with
758specified exceptions; providing authority of the agency
759head with respect to procurements by such agencies;
760establishing the gates within the centralized gate
761process; requiring agencies to submit specified documents
762for commission review at each gate; providing for
763nullification of executed contracts for procurement under
764specified circumstances; requiring the commission to take
765action at each gate within a specified time period;
766providing procedure if the commission does not take action
767within such time period; requiring the submission of
768annual status reports; creating s. 287.0577, F.S.;
769providing requirements for procurement of certain
770contractual services; requiring an agency to develop a
771business case which describes and analyzes a contractual
772services procurement under consideration; providing that
773the business case is not subject to challenge or protest
774under the Administrative Procedure Act; providing required
775components of a business case; defining "cost" and
776"savings"; providing requirements with respect to the
777solicitation for a contractual services procurement;
778providing contract requirements for a contractual services
779procurement; providing requirements with respect to
780contract amendments; providing that specified contract
781amendments must be submitted to the Executive Office of
782the Governor for approval; requiring notification of such
783submission to the chairs of the legislative appropriations
784committees; prohibiting the division of a contract
785amendment to avoid specified requirements; requiring
786documentation of contractor performance prior to renewal
787or extension of a contract; creating s. 287.0578, F.S.;
788providing for conditional supersession of the act;
789amending s. 287.057, F.S.; providing a requirement with
790respect to the composition of persons chosen to conduct
791negotiations during a specified competitive sealed reply
792procurement; creating s. 215.4211, F.S.; authorizing the
793Chief Financial Officer to review contracts for state
794agencies; creating s. 216.1817, F.S.; requiring the
795placement of full-time equivalent positions in reserve
796under certain conditions; providing for the
797reestablishment of full-time equivalent positions upon
798termination of a contract and reversion of functions and
799responsibilities to the agency; creating s. 287.074, F.S.;
800providing that only public officers or employees must
801perform certain functions; providing restrictions on
802contractor involvement in the procurement of contractual
803services; providing for future termination of the Center
804for Efficient Government and the Commission on Efficient
805Government; providing legislative intent with respect to
806the performance of review functions and assistance to
807agencies for procurements of contractual services by state
808agencies after a specified date; providing that positions
809authorized under the act shall remain with the Department
810of Management Services after a specified date; repealing
811s. 14.203, F.S., which creates the State Council on
812Competitive Government and provides duties and authority
813of the council; providing an appropriation; providing
814full-time equivalent positions; amending s. 119.0721,
815F.S.; removing a cross reference; clarifying the meaning
816of "commercial activity" to conform to the removal of the
817reference; providing an effective date.
818
819     WHEREAS, the private sector can often perform services with
820greater efficiency and effectiveness at a lower cost than the
821state, and
822     WHEREAS, the state has long been a leader in innovative
823practices, in part because of its partnerships with the private
824sector, and
825     WHEREAS, the state desires to reap the benefits of lower
826costs, high quality, and innovation by working closely with the
827private sector, and
828     WHEREAS, the state still maintains responsibility for
829ensuring that the services performed by the private sector on
830behalf of the state are of high quality, cost-effective, and
831appropriate functions for the private sector, and
832     WHEREAS, leading businesses have developed best practices
833to determine what to obtain from the market and how to ensure
834that such services are provided at the desired quality and at
835the appropriate cost, and
836     WHEREAS, the executive branch has made great progress in
837promoting the use of such best practices, and the citizens of
838the state could benefit by the increased adoption across state
839government of such best practices, NOW, THEREFORE,


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