August 11, 2020
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Bill No. 1146
Amendment No. 637389
Senate House

1Representative(s) Kottkamp offered the following:
3     Amendment (with title amendment)
4     Remove everything after the enacting clause, and insert:  
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     Section 3.  Section 287.0573, Florida Statutes, is created
35to read:
36     287.0573  Definitions.--For the purposes of this act:
37     (1)  "Center" means the Center for Efficient Government.
38     (2)  "Centralized gate process" means the system of review
39phases for a proposed procurement of contractual services, the
40conclusion of each phase being a "gate" or decision point at
41which the commission determines whether the procurement under
42consideration may proceed to the next phase.
43     (3)  "Commission" means the Commission on Efficient
45     Section 4.  Section 287.0574, Florida Statutes, is created
46to read:
47     287.0574  Criteria for procurement of contractual
49     (1)  The agency must include with its final legislative
50budget request the business cases for procurements for
51contractual services that the agency proposes in the fiscal year
52for which the final legislative budget request is submitted, in
53the manner and form prescribed in the legislative budget request
54instructions pursuant to s. 216.023.
55     (2)  When compared to the cost and quality of service
56performed by state employees, an agency may procure a
57contractual service currently or previously provided by state
58employees only if, upon full implementation of a procurement,
60     (a)  Results in reasonable cost savings while maintaining
61at least the same quality of service;
62     (b)  Reasonably increases the quality of service while not
63exceeding the same level of cost; or
64     (c)  Significantly increases measurable outputs and quality
65while minimally increasing costs, at levels and percentages
66proposed by the procuring agency and approved in writing in
67advance of the procurement by the commission. Only projects with
68an annual cost below $10 million in each fiscal year may meet
69this criterion.
70     Section 5.  Section 287.0575, Florida Statutes, is created
71to read:
72     287.0575  Commission on Efficient Government; membership;
73duties; Center for Efficient Government; duties.--
74     (1)  The Commission on Efficient Government is created
75within the Department of Management Services to oversee the
76Center for Efficient Government and carry out the
77responsibilities specified in this section.
78     (a)  The commission shall consist of seven members
79appointed by the Governor:
80     1.  Four members shall be heads of executive branch
82     2.  Three members shall be from the private sector and,
83collectively, shall have experience with procurement,
84successfully increasing operational efficiency, and implementing
85complex projects in the private sector business environment. No
86private sector member of the commission may at any time during
87his or her appointment to the commission be registered to lobby
88the executive or legislative branch.
89     (b)  By August 1, 2005, the Governor shall appoint two
90private sector members and two agency heads for terms of 3 years
91and one private sector member and two agency heads for terms of
924 years. Thereafter, each member shall serve for a term of 4
93years. The private sector members shall serve without
94compensation but shall be entitled to reimbursement for per diem
95and travel expenses pursuant to s. 112.061.
96     (c)  No member of the commission shall participate in
97commission review of a procurement when his or her agency is
98conducting the procurement or, in the case of a private sector
99member, he or she has a business relationship with an entity
100that is involved or could potentially be involved in the
102     (d)  The members of the commission may not delegate their
103membership to a designee.
104     (e)  A quorum shall consist of at least four members,
105including at least two private-sector members. At least one
106private-sector member must vote on the prevailing side for
107commission action to take effect.
108     (f)  Any vacancy on the commission shall be filled in the
109same manner as the original appointment, and any member
110appointed to fill a vacancy occurring for a reason other than
111the expiration of a term shall serve only for the unexpired term
112of the member's predecessor.
113     (g)  At the first meeting of the commission after August 1,
1142005, the members of the commission shall elect, by majority
115vote of those in attendance, a member to serve as chair of the
116commission. No later than September 1 of each succeeding year,
117the commission shall elect a new chair.
118     (h)  The commission shall:
119     1.  Oversee the Center for Efficient Government.
120     2.  Adopt the centralized gate process.
121     3.  Review, evaluate, and grant approval of, withhold
122approval of, or deny approval of a proposed procurement at each
123gate established within the centralized gate process. The
124commission shall adopt rules regarding the procurements that
125must pass through the centralized gate process. Such
126procurements shall include, at a minimum, those subject to the
127requirements of s. 287.0576(1).
128     4.  Approve templates and guidelines and adopt rules
129prescribing standards and procedures for use by agencies during
130the procurement process which shall, at a minimum, include the
131requirements under ss. 287.0576-287.0577 for procurements of
132contractual services.
133     5.  Implement a plan for providing information and
134documentation to the Legislature and the Governor on behalf of
135agencies and in compliance with the provisions of this chapter.
136The plan shall include, at a minimum, providing copies of
137documents to be reviewed by the commission to the President of
138the Senate, the Speaker of the House of Representatives, the
139Governor, and the chairs of the relevant appropriations and
140substantive legislative committees at least 14 days prior to the
141meeting of the commission at which the proposed procurement will
142be discussed.
143     6.  Review the performance of procurements which have
144advanced through the full centralized gate process.
145     (2)  The Center for Efficient Government is created in the
146department to establish and promote best business practices so
147that the delivery of services to citizens of the state are
148provided in the most effective and cost-efficient manner
149possible. The secretary of the department shall appoint a
150director of the center. The duties and responsibilities of the
151center are:
152     (a)  Recommending and implementing a centralized gate
153process for reviewing and evaluating, and granting, withholding,
154or denying approval of, agency procurements which, at a minimum,
155shall include the requirements contained in s. 287.0576(1) and
156(2) for contractual services procurements.
157     (b)  Providing support and assistance to the commission,
158including, but not limited to, reviewing and validating agency
159business cases, recommending standards, processes, templates,
160and guidelines for use by agencies during the procurement
161process and providing information and documentation as requested
162or required by law.
163     (c)  Assisting agencies directly in the procurement process
164as needed to ensure a high-quality procurement, including, but
165not limited to, developing and updating business cases, drafting
166solicitation and contract documents, participating in contract
167negotiations, identifying performance measures, and advising
168agencies on performance measurement, contract management, and
169change management. The center shall also provide information,
170training, and technical assistance to agencies on the use of the
171standards, processes, templates, and guidelines developed for
172use by agencies during the procurement process.
173     (d)  Collecting data and information from agencies on an
174ongoing basis with regard to the status and results of
175procurements that have advanced completely through the
176centralized gate process, recommending incorporation of any
177lessons learned from such projects into commission standards,
178procedures, templates, and guidelines, as appropriate, and
179identifying and disseminating to agencies information regarding
180best practices in procurement, particularly contractual services
182     (e)  Developing and implementing, in consultation with the
183Agency for Workforce Innovation, guidelines for assisting
184employees whose jobs are eliminated as a result of procurements.
185     (3)  The department shall employ an adequate number of
186highly skilled, credentialed staff who collectively possess
187significant expertise and experience as required to carry out
188the responsibilities of this act.
189     (4)  Agencies shall submit to the center all information,
190documents, or other materials required by commission rule or
191this chapter.
192     Section 6.  Section 287.0576, Florida Statutes, is created
193to read:
194     287.0576  Review and analysis of proposed procurement of
195contractual services; centralized gate process.--
196     (1)  At a minimum, procurements required to undergo review
197and analysis through the centralized gate process adopted by the
198commission are:
199     (a)  Contractual services procurements that have an
200estimated total cost of $10 million or more in any fiscal year.
201     (b)  New contractual services procurements that will
202require adjustments to the agency's budget, in accordance with
203chapter 216, totaling $1 million or more. Amendments to existing
204contracts are excluded.
205     (c)  Contractual services procurements that do not involve
206an outlay of state funds estimated to total $10 million or more
207in any fiscal year because of the provision of services by the
208contractor at a rate significantly below market rate, the
209significant investment of other resources by the agency, or
210other reason, but in which the total value of the services
211performed by the agency and contractor under the contract is
212estimated to total $10 million or more in any fiscal year.
213Examples of such procurements include, but are not limited to,
214free, no-cost, or codevelopment contracts.
215     (d)  Contractual services procurements for which the sum of
216gross revenues or shared savings to be generated for the state
217and contractor over the term of the contract plus the sum of any
218payments to the contractor by the agency over the term of the
219contract, if any, is estimated to total $10 million or more in
220any fiscal year.
221     (e)  Contractual services procurements that do not meet the
222criteria in paragraphs (a)-(d) that the Legislature has directed
223to be subject to the centralized gate process.
224     (2)  Extensions and renewals of contracts resulting from
225procurements in subsection (1) and extensions and renewals of
226contracts meeting the criteria identified in paragraphs (1)(a),
227(c), and (d) which did not pass through the center shall undergo
228review and analysis through the centralized gate process
229implemented by the center, though, notwithstanding any law to
230the contrary, such contracts shall pass only through such gates
231as the commission determines are appropriate based on the
232legislative intent of this act.
234For purposes of determining whether a procurement meets the
235requirements of this section, multiple contractual services
236procurements for substantially similar or related functions or
237responsibilities occurring in a coordinated fashion or in close
238time proximity to one another are considered a single
239contractual services procurement for purposes of meeting the
240thresholds set forth in this section.
241     (3)  The centralized gate process shall require, at a
242minimum, review of the procurement by the commission at each
243gate. At each gate, the commission shall determine by majority
244vote to:
245     (a)  Approve the procurement, if the agency has
246sufficiently met the requirements of the current gate, and
247advance the procurement to the next phase;
248     (b)  Withhold approval of the procurement, if additional
249work must be completed in order to satisfy the requirements of
250the current gate, and retain the procurement in that phase; or
251     (c)  Deny the procurement, if the procurement is not a good
252business decision, and remove the procurement from
255Notwithstanding the provisions of this section, the commission
256may not deny procurements which are required by law. If the
257commission determines that a procurement required by law is not
258a good business decision, the commission shall withhold approval
259and transmit to the President of the Senate, the Speaker of the
260House of Representatives, and the Governor the reasons why the
261procurement should not be completed and any recommendation for
262legislative action. If the President of the Senate or the
263Speaker of the House of Representatives has not responded within
26414 business days of receipt of the communication, the commission
265shall proceed at its discretion consistent with the Legislative
266intent of this act.
268Notwithstanding any law to the contrary, agencies under the
269individual control of the Attorney General, the Chief Financial
270Officer, or the Commissioner of Agriculture are subject to the
271provisions of this act, except that the commission shall not
272grant, withhold, or deny approval of a procurement by such
273agency but instead may only provide recommendations to the
274agency. The respective agency head shall have sole authority to
275grant, withhold, or deny approval of such procurement.
276     (4)  The gates and required documentation comprising the
277centralized gate process shall, at a minimum, consist of:
278     (a)  The proposal identification gate, which shall include
279the business case.
280     (b)  The procurement preparation gate, which shall include
281the updated business case and the solicitation documents prior
282to the issuance of such documents. An agency may not release
283solicitation documents without the commission's approval at this
284gate. The commission must review and approve the written
285determination of the agency required pursuant to s.
286287.057(3)(a) before granting approval for the use of an
287invitation to negotiate, or withhold approval pending submission
288by the agency of an acceptable alternative solicitation method.
289     (c)  The contract development gate, which shall include the
290final business case and the proposed unexecuted contract. An
291agency may not execute the contract without the commission's
292approval at this gate.
293     (d)  The transition management gate, which shall include
294updates to the final business case and, for a procurement of
295contractual services, an analysis of the agency's and
296contractor's readiness for the contractor to perform the
297proposed responsibility or function. An agency may not
298transition to contractor performance without the commission's
299approval at this gate.
300     (e)  The post-implementation gate, which shall include
301updates to the final business case and a report on the adequacy
302of contractor performance.
303     (5)(a)  Any executed contract for a procurement passing
304through the centralized gate process pursuant to this section
305shall be null and void if an agency fails to comply with the
306commission decision at the proposal identification, procurement
307preparation, or contract development gate.
308     (b)  Failure to comply with any other requirements of this
309act or implementing rules shall not affect the validity of the
310competitive solicitation and award process or any contract.
311     (6)  The commission shall take action at each gate within
31260 days of the submission of a procurement by an agency.  If the
313commission does not take action within this timeframe, the
314agency head shall determine whether to grant, withhold, or deny
315approval of the procurement at that gate based on the rules and
316guidelines of the commission for that gate and shall notify the
317Governor, the President of the Senate, the Speaker of the House
318of Representatives, and the commission of such action and the
319circumstances thereof.
320     (7)  During the terms of the contracts, the agency shall
321annually submit with its legislative budget request a status
322report for each procurement that has passed through at least the
323first three gates of the centralized gate process describing the
324progress made to date, actual completion dates in comparison to
325planned completion dates, actual costs incurred in comparison to
326projected costs incurred, current issues requiring resolution,
327planned project milestones, deliverables, and expenditures for
328the next reporting period, and any other information relating to
329the contractual services that may be requested.
330     Section 7.  Section 287.0577, Florida Statutes, is created
331to read:
332     287.0577  Requirements for procurement of certain
333contractual services.--In addition to the other applicable
334requirements of this chapter, an agency shall comply with the
335following requirements for, at a minimum, procurements of
336contractual services estimated to total $1 million or more in
337any fiscal year and those subject to review under s.
338287.0576(1)(b), (c), (d), and (e) and (2):
339     (1)  BUSINESS CASE.--The agency shall develop a business
340case which describes and analyzes the procurement. The business
341case is not subject to challenge or protest pursuant to chapter
342120. The business case shall include, but not be limited to, the
343information in paragraphs (a)-(l).  For procurements not subject
344to commission review, the agency shall provide a copy of the
345business case to the President of the Senate and the Speaker of
346the House at least 14 days prior to releasing a solicitation.
347For procurements subject to commission review, the business case
348shall be in such detail as is appropriate given the current
349phase of the procurement but shall contain sufficient
350information to enable the commission to determine at that gate
351whether the procurement may proceed to the next procurement
353     (a)1.  A detailed description of the function or
354responsibility for which the procurement is proposed;
355     2.  If the agency is currently performing the function or
356responsibility, a description and analysis of the agency's
357current performance, including, but not limited to, baseline
358costs and performance metrics;
359     3.  The goals desired to be achieved through the
360procurement and the rationale for such goals; and
361     4.  A citation of the existing or proposed legal authority
362for contracting for the function or responsibility.
363     (b)1.  A description of available options for achieving the
364goals. If state employees are currently performing the function
365or responsibility, at least one option involving maintaining
366state provision of the function or responsibility shall be
368     2.  A description of the current market for the contractual
369services which are under consideration for procurement.
370     3.  An analysis of the advantages and disadvantages of each
371option, including, at a minimum, potential performance
372improvements and risks.
373     (c)  A cost-benefit analysis documenting the direct and
374indirect specific baseline costs, savings, and qualitative and
375quantitative benefits involved in or resulting from the
376implementation of the recommended option or options. Such
377analysis shall specify the schedule that, at a minimum, must be
378adhered to in order to achieve the estimated savings. All
379elements of cost shall be clearly identified in the cost-benefit
380analysis, described in the business case, and supported by
381applicable records and reports. The agency head shall attest
382that, based on the data and information underlying the business
383case, to the best of his or her knowledge, all projected costs,
384savings, and benefits are valid and achievable. "Cost" means the
385reasonable, relevant, and verifiable cost which may include, but
386not be limited to, elements such as personnel costs, materials
387and supplies, services, equipment, capital depreciation costs,
388rent, maintenance and repairs, utilities, insurance, personnel
389travel, overhead, and interim and final payments. The
390appropriate elements shall depend on the nature of the specific
391initiative. "Savings" means the difference between the direct
392and indirect actual annual baseline costs compared to the
393projected annual cost for the contracted functions or
394responsibilities in any succeeding state fiscal year during the
395term of the contract.
396     (d)  A description of variance among agency policies and
397processes and, as appropriate, a discussion of options for or a
398plan to standardize, consolidate, or revise current policies and
399processes, if any, to reduce the customization of any proposed
400solution that would otherwise be required.
401     (e)  A description of the specific performance standards
402that must, at a minimum, be met to ensure adequate performance.
403     (f)  A statement of the potential impact on federal, state,
404and local revenues and expenditures. The statement shall
405specifically describe the effect on general revenue, trust
406funds, general revenue service charges, and interest on trust
407funds together with the potential direct or indirect effect on
408federal funding and cost allocations.
409     (g)  The projected timeframe for key events, from the
410beginning of the procurement process through the expiration of a
412     (h)  A plan to ensure compliance with public records law
413which must include components that:
414     1.  Provide public access to public records at a cost that
415does not exceed that provided in chapter 119.
416     2.  Ensure the confidentiality of records that are exempt
417or confidential under law.
418     3.  Meet all legal requirements for record retention
419provided by law.
420     4.  Require transfer to the state, at no cost, of all
421public records in possession of the contractor upon termination
422of the contract.
423     (i)  A specific and feasible contingency plan addressing
424contractor nonperformance and a description of the tasks
425involved in and costs required for its implementation.
426     (j)  An agency transition plan for addressing changes in
427the number of agency personnel, affected business processes,
428employee transition issues, and communication with affected
429stakeholders, such as agency clients and the public. The
430transition plan shall contain a reemployment and retraining
431assistance plan for employees who are not retained by the agency
432or employed by the contractor.
433     (k)  A listing of any assets proposed for surplus or use by
434a contractor. For those assets proposed to be used by a
435contractor, the business case shall include a description of the
436proposed requirements for maintaining those assets by the
437contractor or the agency in accordance with chapter 273, a plan
438for the transitioning of the assets upon termination of the
439contract, and a description of how the planned use by a
440contractor is in the best interest of the agency and state.
441     (l)  A plan for ensuring access by persons with
442disabilities in compliance with applicable state and federal
445If a contractual services procurement meets the criteria for
446submission of feasibility study documentation as required by the
447legislative budget request instructions established pursuant to
448s. 216.023, the agency shall submit such documentation.
449     (2)  SOLICITATION REQUIREMENTS.--The solicitation for a
450contractual services procurement shall include, at a minimum:
451     (a)  A detailed description of the function or
452responsibility under consideration for contracting and, if the
453function or responsibility is currently being performed by an
454agency, a description and analysis of the agency's current
456     (b)  Requirements that are achievable, unambiguous,
457measurable, meaningful, and complete.
458     (c)  The criteria that after contract execution will be
459used to assess contractor performance and the minimum acceptable
460contractor performance levels.
461     (3)  CONTRACT.--Each contract must include, but need not be
462limited to:
463     (a)  A detailed scope of work that clearly specifies each
464service or deliverable to be provided, including a description
465of each deliverable or activity that is quantifiable,
466measurable, and verifiable.
467     (b)  All service-level agreements describing all services
468to be provided under the terms of the agreement, the agency's
469service requirements and performance objectives, and specific
470responsibilities of the agency and the contractor.
471     (c)  Associated costs and savings, specific payment terms
472and payment schedule, including incentive and disincentive
473provisions, criteria governing payment, and a clear and specific
474implementation schedule that will be implemented in order to
475complete all required activities needed to transfer the service
476from the agency to the contractor and operate the service
478     (d)  Clear and specific identification of all required
479performance standards, which must include, at a minimum:
480     1.  Detailed measurable acceptance criteria for each
481deliverable and service to be provided to the agency under the
482terms of the contract which document the required performance
484     2.  A method for monitoring and reporting progress in
485achieving specified performance standards and levels.
486     3.  The sanctions or disincentives that shall be assessed
487for nonperformance by the contractor or agency.
488     (e)  A requirement that the contractor maintain adequate
489accounting records that comply with all applicable federal and
490state laws and generally accepted accounting principles.
491     (f)  A requirement authorizing state access to and audit of
492all records related to the contract or any responsibilities or
493functions under the contract for state audit and legislative
494oversight purposes and a requirement for service organization
495audits in accordance with professional auditing standards, if
497     (g)  A requirement describing the timing and substance of
498all plans and status or progress reports that are to be
499provided. All plans and status or progress reports must comply
500with any relevant state and federal standards.
501     (h)  A requirement that the contractor comply with public
502records laws. The contractor must:
503     1.  Keep and maintain the public records that ordinarily
504and necessarily would be required by the state agency in order
505to perform the function or service.
506     2.  Provide the public with access to such public records
507on the same terms and conditions that the state agency would and
508at a cost that does not exceed that provided in chapter 119.
509     3.  Ensure the confidentiality of records that are exempt
510from public disclosure or made confidential under law.
511     4.  Meet all requirements for retaining records and
512transfer to the state, at no cost, all public records in
513possession of the contractor upon termination of the contract
514and destroy any duplicate public records which are exempt and
515confidential. All records stored electronically must be provided
516to the state in a format that is compatible with information
517technology systems of the state.
518     (i)  A requirement that any state funds provided for the
519purchase of or improvements to real property be made contingent
520upon the contractor granting to the state a security interest in
521the property which is at least equal to the amount of the state
522funds provided for the most recent years following the date of
523purchase or the completion of improvements, or as otherwise
524required by law. The contract must include a provision that, if
525the contractor disposes of the property before the agency's
526interest is vacated, the contractor will refund the
527proportionate share of the state's initial investment, as
528adjusted by depreciation.
529     (j)  If a contract involves the development or creation of
530intellectual property, the contract must specify the ownership
531of such intellectual property and any rights of the state to
532use, modify, reproduce, or disseminate the intellectual
534     (k)  A provision that the contractor annually submit and
535verify, pursuant to s. 92.525, all required financial
537     (l)  A requirement that the contractor shall interview and
538consider for employment with the contractor each displaced state
539employee who is interested in such employment.
540     (m)  Provisions requiring that venue for any action
541regarding the contract shall be in Leon County and that the
542contract shall be interpreted according to the laws of this
544     (4)  AMENDMENTS.--An agency may not amend a contract
545without first submitting the proposed contract amendment to the
546Executive Office of the Governor for approval and notifying the
547chairs of the legislative appropriations committees of such
548submission if the effect of the amendment would be to:
549     (a)  Increase the value of the contract by $1 million or
550more for those contracts with a total value of at least $1
551million but less than $10 million; or
552     (b)  Increase the value of the contract by 10 percent or
553more for those contracts with a total value of $10 million or
556An agency shall not divide a contract amendment so as to avoid
557the requirements of this section.
558     (5)  In addition to the requirements of subsections
559287.057(13) and (14), prior to the renewal or extension of a
560contract, an agency shall document whether all specific direct
561and indirect costs, savings, performance standards, and
562qualitative and quantitative benefits identified in the contract
563have been met by the contractor and the agency. If the actual
564performance of the contractor does not meet the required
565performance as identified in the contract, the agency shall
566explain the reasons why and provide justification for the
567extensions or renewal of the contract. This documentation shall
568be included in the official contract file.
569     Section 8.  Section 287.0578, Florida Statutes, is created
570to read:
571     287.0578  Subsequent inconsistent laws.--Subsequent
572inconsistent laws shall supersede this act only to the extent
573they do so by express reference to this section.
574     Section 9.  Paragraph (b) of subsection (17) of section
575287.057, Florida Statutes, is amended to read:
576     287.057  Procurement of commodities or contractual
578     (17)  For a contract in excess of the threshold amount
579provided in s. 287.017 for CATEGORY FOUR, the agency head shall
581     (b)  At least three persons to conduct negotiations during
582a competitive sealed reply procurement who collectively have
583experience and knowledge in negotiating contracts, contract
584procurement, and the program areas and service requirements for
585which commodities or contractual services are sought. When the
586annual value of a contract is in excess of $1 million, at least
587one of the persons conducting negotiations must be certified as
588a contract negotiator based upon rules adopted by the Department
589of Management Services.
590     Section 10.  Section 215.4211, Florida Statutes, is created
591to read:
592     215.4211  Review of contracts for state agencies.--The
593Chief Financial Officer may request, as he or she deems
594necessary, the option to review and provide comments prior to
595the execution of any contract that is required to be in
596compliance with the provisions of s. 287.0577(3).
597     Section 11.  Section 216.1817, Florida Statutes, is created
598to read:
599     216.1817  Placement of positions in reserve;
600reestablishment of positions.--If a procurement of contractual
601services involves the performance of functions or
602responsibilities that are being shifted from state employees to
603a contractor, the agency shall identify within the business case
604prepared pursuant to s. 287.0577 all resources which are
605affected, including full-time equivalent positions. All full-
606time equivalent positions identified in the business case shall
607be placed in reserve by the Executive Office of the Governor
608until the end of the second year of the contract.  However, in
609the business case, the agency may account for any savings from
610the full-time equivalent positions identified and held in
611reserve.  Notwithstanding the provisions of s. 216.262, the
612Executive Office of the Governor shall request authority from
613the Legislative Budget Commission to reestablish full-time
614equivalent positions above the number fixed by the Legislature
615if a contract is terminated and the performance of the functions
616or responsibilities must be returned to the agency.
617     Section 12.  This act shall not apply to administrative,
618examination, licensing, investigative, and prosecutorial
619services for any board, commission, or council created within
620the Department of Business and Professional Regulation pursuant
621to chapter 20, Florida Statutes, as the privatization of such
622services is governed by ss. 455.32 and 471.038, Florida
624     Section 13.  Section 287.074, Florida Statutes, is created
625to read:
626     287.074  Actions reserved to public officers or
628     (1)  Only a public officer or a public employee upon whom
629the public officer has delegated authority shall, consistent
630with law, take actions including, but not limited to:
631     (a)  Selecting state employees;
632     (b)  Approving position descriptions, performance
633standards, or salary adjustments for state employees; and
634     (c)  Hiring, promoting, disciplining, demoting, and
635dismissing a state employee.
636     (2)  Only a public officer shall, consistent with law,
637commission and appoint state officers.
638     Section 14.  A contractor, as defined in chapter 287,
639Florida Statutes, or its employees, agents, or subcontractors,
640may not knowingly participate, through decision, approval,
641disapproval, preparation of any part of a purchase request,
642investigation, or auditing, in the procurement of contractual
643services by an agency from an entity in which the contractor, or
644its employees, agents, or subcontractors has a material
646     Section 15.  The Center for Efficient Government and the
647Commission on Efficient Government shall terminate on July 1,
6482010, unless reenacted by the Legislature prior to that date. It
649is the intent of the Legislature that, beginning July 1, 2010,
650the various state agencies shall perform the review functions
651required under this act for procurements of contractual services
652under their jurisdiction. It is also the intent of the
653Legislature that beginning July 1, 2010, the positions
654authorized by this act shall remain with the Department of
655Management Services, which shall continue providing technical
656assistance as required in this act.
657     Section 16.  Section 287.0572, Florida Statutes, is
658renumbered as section 287.0579, Florida Statutes:
659     287.0579 287.0572  Present-value methodology.--
660     (1)  The cost of bids, proposals, or replies for state
661contracts that include provisions for unequal payment streams or
662unequal time payment periods shall be evaluated using present-
663value methodology. Each agency, as defined in s. 287.012(1),
664shall perform the evaluation using the present-value discount
665rate supplied by the department. The present-value discount rate
666shall be the rate for United States Treasury notes and bonds
667published in the Interest Rates: Money and Capital Markets
668section of the most recent copy of the Federal Reserve Bulletin
669published at the time of issuance of the request for proposals,
670the invitation to negotiate, or the invitation to bid.
671     (2)  The department may adopt rules to administer
672subsection (1).
673     Section 17.  Subsection (3) of section 119.0721, Florida
674Statutes, is amended to read:
675     119.0721  Social security number exemption.--
676     (3)  An agency shall not deny a commercial entity engaged
677in the performance of a commercial activity, which, for purposes
678of this subsection, means an activity that provides a product or
679service that is available from a private source as defined in s.
68014.203 or its agents, employees, or contractors access to social
681security numbers, provided the social security numbers will be
682used only in the normal course of business for legitimate
683business purposes, and provided the commercial entity makes a
684written request for social security numbers, verified as
685provided in s. 92.525, legibly signed by an authorized officer,
686employee, or agent of the commercial entity. The verified
687written request must contain the commercial entity's name,
688business mailing and location addresses, business telephone
689number, and a statement of the specific purposes for which it
690needs the social security numbers and how the social security
691numbers will be used in the normal course of business for
692legitimate business purposes. The aggregate of these requests
693shall serve as the basis for the agency report required in
694subsection (7). An agency may request any other information as
695may be reasonably necessary to verify the identity of the entity
696requesting the social security numbers and the specific purposes
697for which such numbers will be used; however, an agency has no
698duty to inquire beyond the information contained in the verified
699written request. A legitimate business purpose includes
700verification of the accuracy of personal information received by
701a commercial entity in the normal course of its business; use in
702a civil, criminal, or administrative proceeding; use for
703insurance purposes; use in law enforcement and investigation of
704crimes; use in identifying and preventing fraud; use in
705matching, verifying, or retrieving information; and use in
706research activities. A legitimate business purpose does not
707include the display or bulk sale of social security numbers to
708the general public or the distribution of such numbers to any
709customer that is not identifiable by the distributor.
710     Section 18.  Section 14.203, Florida Statutes, is repealed.
711     Section 19.  There is hereby appropriated $1,023,554
712recurring budget authority to the Department of Management
713Services from the General Revenue Fund, and nine full-time
714equivalent positions are authorized, to carry out the activities
715of the Center for Efficient Government and the Commission on
716Efficient Government as provided in this act.
717     Section 20.  This act shall take effect July 1, 2005.
720================= T I T L E  A M E N D M E N T =================
722     Remove the entire title, and insert:  
A bill to be entitled
725An act relating to procurement of contractual services by
726an agency; amending s. 20.22, F.S.; placing the Center for
727Efficient Government in the Department of Management
728Services; creating s. 287.0571, F.S.; providing a popular
729name; providing legislative intent; providing that
730procurements of specified commodities and services are not
731subject to the act; providing specified applicability;
732creating s. 287.0573, F.S.; providing definitions;
733creating s. 287.0574, F.S.; providing criteria for the
734procurement of contractual services by an agency;
735requiring an agency to include with its final legislative
736budget request the business cases for specified
737procurements; creating s. 287.0575, F.S.; creating the
738Commission on Efficient Government within the Department
739of Management Services; providing for purpose, membership,
740and organization of the commission; providing duties and
741responsibilities of the commission; creating the Center
742for Efficient Government; providing purpose and
743organization of the center; providing duties and
744responsibilities of the center; requiring the center to
745recommend and implement a centralized gate process for
746reviewing, evaluating, and approving agency procurements;
747requiring state agencies to submit specified information,
748documents, and other materials required under commission
749rules; creating s. 287.0576, F.S.; specifying procurements
750which must be reviewed and evaluated under the centralized
751gate process; providing minimum requirements for the
752centralized gate process; providing for specified
753determinations by the commission at each gate; providing
754procedure with respect to an unfavorable finding by the
755commission with respect to a procurement required by law;
756providing that agencies under the individual control of
757the Attorney General, Chief Financial Officer, or
758Commissioner of Agriculture are subject to the act, with
759specified exceptions; providing authority of the agency
760head with respect to procurements by such agencies;
761establishing the gates within the centralized gate
762process; requiring agencies to submit specified documents
763for commission review at each gate; providing for
764nullification of executed contracts for procurement under
765specified circumstances; requiring the commission to take
766action at each gate within a specified time period;
767providing procedure if the commission does not take action
768within such time period; requiring the submission of
769annual status reports; creating s. 287.0577, F.S.;
770providing requirements for procurement of certain
771contractual services; requiring an agency to develop a
772business case which describes and analyzes a contractual
773services procurement under consideration; providing that
774the business case is not subject to challenge or protest
775under the Administrative Procedure Act; providing required
776components of a business case; defining "cost" and
777"savings"; providing requirements with respect to the
778solicitation for a contractual services procurement;
779providing contract requirements for a contractual services
780procurement; providing requirements with respect to
781contract amendments; providing that specified contract
782amendments must be submitted to the Executive Office of
783the Governor for approval; requiring notification of such
784submission to the chairs of the legislative appropriations
785committees; prohibiting the division of a contract
786amendment to avoid specified requirements; requiring
787documentation of contractor performance prior to renewal
788or extension of a contract; creating s. 287.0578, F.S.;
789providing for conditional supersession of the act;
790amending s. 287.057, F.S.; providing a requirement with
791respect to the composition of persons chosen to conduct
792negotiations during a specified competitive sealed reply
793procurement; creating s. 215.4211, F.S.; authorizing the
794Chief Financial Officer to review contracts for state
795agencies; creating s. 216.1817, F.S.; requiring the
796placement of full-time equivalent positions in reserve
797under certain conditions; providing for the
798reestablishment of full-time equivalent positions upon
799termination of a contract and reversion of functions and
800responsibilities to the agency; providing nonapplicability
801of the act with respect to the privatization of boards,
802commissions, or councils created within the Department of
803Business and Professional Regulation; creating s. 287.074,
804F.S.; providing that only public officers or employees
805must perform certain functions; providing restrictions on
806contractor involvement in the procurement of contractual
807services; providing for future termination of the Center
808for Efficient Government and the Commission on Efficient
809Government; providing legislative intent with respect to
810the performance of review functions and assistance to
811agencies for procurements of contractual services by state
812agencies after a specified date; providing that positions
813authorized under the act shall remain with the Department
814of Management Services after a specified date; repealing
815s. 14.203, F.S., which creates the State Council on
816Competitive Government and provides duties and authority
817of the council; providing an appropriation; providing
818full-time equivalent positions; amending s. 119.0721,
819F.S.; removing a cross reference; clarifying the meaning
820of "commercial activity" to conform to the removal of the
821reference; providing an effective date.
823     WHEREAS, the private sector can often perform services with
824greater efficiency and effectiveness at a lower cost than the
825state, and
826     WHEREAS, the state has long been a leader in innovative
827practices, in part because of its partnerships with the private
828sector, and
829     WHEREAS, the state desires to reap the benefits of lower
830costs, high quality, and innovation by working closely with the
831private sector, and
832     WHEREAS, the state still maintains responsibility for
833ensuring that the services performed by the private sector on
834behalf of the state are of high quality, cost-effective, and
835appropriate functions for the private sector, and
836     WHEREAS, leading businesses have developed best practices
837to determine what to obtain from the market and how to ensure
838that such services are provided at the desired quality and at
839the appropriate cost, and
840     WHEREAS, the executive branch has made great progress in
841promoting the use of such best practices, and the citizens of
842the state could benefit by the increased adoption across state
843government of such best practices, NOW, THEREFORE,

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