Florida Senate - 2021 SB 1616 By Senator Brodeur 9-01566-21 20211616__ Page 1 of 12 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to agency contracts for commodities 2 and contractual services; amending s. 287.042, F.S.; 3 providing that the Department of Management Services 4 may enter into an agreement authorizing an agency to 5 make purchases under certain contracts if the 6 Secretary of Management Services makes a certain 7 determination; amending s. 287.056, F.S.; providing 8 that an agency must issue a request for quote to 9 certain approved vendors when it issues a request for 10 quote for commodities or contractual services; 11 providing for the disqualification of certain firms or 12 individuals from state term contract eligibility; 13 amending s. 287.057, F.S.; revising the timeframe 14 during which an agency must electronically post a 15 description of certain services in certain 16 circumstances; requiring an agency to report certain 17 actions to the department in a specified manner and 18 form; requiring an agency to submit a report 19 concerning contract performance before certain 20 contract renewals or amendments are executed; 21 providing that a designated contract manager serves as 22 a liaison between the contractor and the agency; 23 prohibiting certain individuals from serving as a 24 contract manager; providing the responsibilities of a 25 contract manager; requiring the Chief Financial 26 Officer to evaluate certain training at certain 27 intervals; requiring that certain contract managers 28 complete training and certification within a specified 29

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 2 of 12 CODING: Words stricken are deletions; words underlined are additions. timeframe; requiring the department to establish and 30 disseminate certain training and certification 31 requirements; requiring the department to evaluate 32 certain training at certain intervals; requiring 33 certain contract managers to be certified Project 34 Management Professionals; authorizing a contract 35 administrator to also serve as a contract manager in 36 certain circumstances; providing for specified teams 37 to make certain evaluations and conduct certain 38 negotiations; requiring a Project Management 39 Professional to provide guidance based on certain 40 qualifications; providing qualification requirements 41 for contract negotiator certification; providing for a 42 continuing oversight team in certain circumstances; 43 providing requirements for continuing oversight team 44 members and meetings; requiring a continuing oversight 45 team to provide notice of certain changes in contract 46 scope to certain entities; amending s. 287.136, F.S.; 47 requiring each agency inspector general to complete 48 certain audits of executed contracts at certain 49 intervals; requiring the audits be submitted to 50 certain persons; providing an effective date. 51 52 Be It Enacted by the Legislature of the State of Florida: 53 54

Section 1. Subsection (16) of

section 287.042, Florida 55 Statutes, is amended to read: 56 287.042 Powers, duties, and functions.—The department shall 57 have the following powers, duties, and functions: 58

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 3 of 12 CODING: Words stricken are deletions; words underlined are additions.

(16) To evaluate contracts let by the Federal Government, 59 another state, or a political subdivision for the provision of 60 commodities and contract services, and, if it is determined by 61 the Secretary of Management Services in writing to be cost-62 effective and in the best value to interest of the state, to 63 enter into a written agreement authorizing an agency to make 64 purchases under such contract. 65

Section 2. Subsection (2) of

section 287.056, Florida 66 Statutes, is amended, and subsection (4) is added to that 67 section, to read: 68 287.056 Purchases from purchasing agreements and state term 69 contracts.— 70

(2) Agencies and eligible users may use a request for quote 71 to obtain written pricing or services information from a state 72 term contract vendor for commodities or contractual services 73 available on state term contract from that vendor. The purpose 74 of a request for quote is to determine whether a price, term, or 75 condition more favorable to the agency or eligible user than 76 that provided in the state term contract is available.

If an 77 agency issues a request for quote for commodities or contractual 78 services, the agency must issue a request for quote to all 79 vendors approved to provide such commodity or contractual 80 services. Use of a request for quote does not constitute a 81 decision or intended decision that is subject to protest under 82 s. 120.57(3). 83

(4) A firm or individual removed from the source of supply 84 pursuant to s. 287.042(1)(

b) or placed on a disqualified vendor 85 list pursuant to s. 287.133 or s. 287.134 is immediately 86 disqualified from state term contract eligibility. 87

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Section 3. Paragraph (

c) of subsection (3) and subsections 88 (13) through (16) of

section 287.057, Florida Statutes, are 89 amended, and subsection (24) is added to that section, to read: 90 287.057 Procurement of commodities or contractual 91 services.— 92

(3) If the purchase price of commodities or contractual 93 services exceeds the threshold amount provided in s. 287.017 for 94 CATEGORY TWO, purchase of commodities or contractual services 95 may not be made without receiving competitive sealed bids, 96 competitive sealed proposals, or competitive sealed replies 97 unless: 98 (

c) Commodities or contractual services available only from 99 a single source may be excepted from the competitive-100 solicitation requirements. If an agency believes that 101 commodities or contractual services are available only from a 102 single source, the agency shall electronically post a 103 description of the commodities or contractual services sought 104 for at least 15 7 business days. The description must include a 105 request that prospective vendors provide information regarding 106 their ability to supply the commodities or contractual services 107 described.

If it is determined in writing by the agency, after 108 reviewing any information received from prospective vendors that 109 the commodities or contractual services are available only from 110 a single source, the agency shall provide notice of its intended 111 decision to enter a single-source purchase contract in the 112 manner specified in s. 120.57(3). Each agency shall report all 113 such actions to the department on a quarterly basis in a manner 114 and form prescribed by the department. 115

(13) Contracts for commodities or contractual services may 116

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 5 of 12 CODING: Words stricken are deletions; words underlined are additions. be renewed for a period that may not exceed 3 years or the term 117 of the original contract, whichever is longer. Renewal of a 118 contract for commodities or contractual services must be in 119 writing and is subject to the same terms and conditions set 120 forth in the initial contract and any written amendments signed 121 by the parties.

If the commodity or contractual service is 122 purchased as a result of the solicitation of bids, proposals, or 123 replies, the price of the commodity or contractual service to be 124 renewed must be specified in the bid, proposal, or reply, except 125 that an agency may negotiate lower pricing. A renewal contract 126 may not include any compensation for costs associated with the 127 renewal. Renewals are contingent upon satisfactory performance 128 evaluations by the agency and subject to the availability of 129 funds. Exceptional purchase contracts pursuant to paragraphs 130 (3)(

a) and (

c) may not be renewed. With the exception of 131 subsection (10), if a contract amendment results in a longer 132 contract term or increased payments, a state agency may not 133 renew or amend a contract for the outsourcing of a service or 134 activity that has an original term value exceeding $5 $10 135 million before submitting a written report concerning contract 136 performance to the Governor, the President of the Senate, and 137 the Speaker of the House of Representatives at least 90 days 138 before execution of the renewal or amendment. 139 (14)(

a) For each contractual services contract, the agency 140 shall designate an employee to function as contract manager who 141 is responsible for enforcing performance of the contract terms 142 and conditions and serve as a liaison between with the 143 contractor and the agency. The contract manager may not be an 144 individual who has been employed, within the previous 5 years, 145

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 6 of 12 CODING: Words stricken are deletions; words underlined are additions. by the vendor awarded the contractual services contract. The 146 primary responsibilities of a contract manager include: 147 1. Participating in the solicitation development and review 148 of contract documents. 149 2. Monitoring the contractor’s progress and performance to 150 ensure procured products and services conform to the contract 151 requirements and to keep timely records of findings. 152 3.

Managing and documenting any changes to the contract 153 through the amendment process authorized by the terms of the 154 contract. 155 4. Monitoring the contract budget to ensure sufficient 156 funds are available throughout the term of the contract. 157 5. Exercising applicable remedies, as appropriate, when a 158 contractor’s performance is deficient. 159 (b)(

a) Each contract manager who is responsible for 160 contracts in excess of the threshold amount for CATEGORY TWO 161 must, at a minimum, complete training conducted by the Chief 162 Financial Officer for accountability in contracts and grant 163 management. The Chief Financial Officer shall evaluate such 164 training every 5 years to assess its effectiveness and update 165 the training curriculum.

The Chief Financial Officer shall 166 establish and disseminate uniform procedures pursuant to s. 167 17.03(3) to ensure that contractual services have been rendered 168 in accordance with the contract terms before the agency 169 processes the invoice for payment. The procedures must include, 170 but need not be limited to, procedures for monitoring and 171 documenting contractor performance, reviewing and documenting 172 all deliverables for which payment is requested by vendors, and 173 providing written certification by contract managers of the 174

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 7 of 12 CODING: Words stricken are deletions; words underlined are additions. agency’s receipt of goods and services. 175 (c)(

b) Each contract manager who is responsible for 176 contracts in excess of $100,000 annually must, in addition to 177 the accountability in contracts and grant management training 178 required in paragraph (

b) and within 6 months after being 179 assigned responsibility for such contracts, complete training in 180 contract management and become a certified contract manager. The 181 department is responsible for establishing and disseminating the 182 training and certification requirements for certified contract 183 managers. Training must promote best practices and procedures 184 related to negotiating, managing, and ensuring accountability in 185 agency contracts and grant agreements, which must include the 186 use of case studies based upon previous audits, contracts, and 187 grant agreements.

A certified contract manager must complete 188 training every 5 years for certification renewal requirements 189 for certification which include completing the training 190 conducted by the Chief Financial Officer for accountability in 191 contracts and grant management. Training and certification must 192 be coordinated by the department, and the training must be 193 conducted jointly by the department and the Department of 194 Financial Services.

The department shall evaluate such training 195 every 5 years to assess its effectiveness and update the 196 training curriculum Training must promote best practices and 197 procedures related to negotiating, managing, and ensuring 198 accountability in agency contracts and grant agreements, which 199 must include the use of case studies based upon previous audits, 200 contracts, and grant agreements. All agency contract managers 201 must become certified within 24 months after establishment of 202 the training and certification requirements by the department 203

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 8 of 12 CODING: Words stricken are deletions; words underlined are additions. and the Department of Financial Services. 204 (

d) Each contract manager who is responsible for contracts 205 in excess of $10 million annually must, in addition to the 206 training required in paragraph (

b) and the training and 207 certification required in paragraph (c), be a Project Management 208 Professional, as certified by the Project Management Institute. 209

(15) Each agency shall designate at least one employee who 210 shall serve as a contract administrator responsible for 211 maintaining a contract file and financial information on all 212 contractual services contracts and who shall serve as a liaison 213 with the contract managers and the department. For a contract of 214 $250,000 or less annually, the contract administrator may also 215 serve as the contract manager if he or she has completed the 216 required training. For a contract in excess of $250,000 217 annually, the contract administrator may not serve as both the 218 contract administrator and the contract manager. 219 (16)(

a) For a contract in excess of the threshold amount 220 provided in s. 287.017 for CATEGORY FOUR, the agency head shall 221 appoint: 222 1. At least three persons to an evaluation team to evaluate 223 proposals and replies. The members of the evaluation team must 224 who collectively have experience and knowledge in the program 225 areas and service requirements for the commodity which 226 commodities or contractual services are sought. 227 2. At least three persons to a negotiation team to conduct 228 negotiations during a competitive sealed reply procurement.

The 229 negotiation team members must who collectively have experience 230 and knowledge in negotiating contracts, contract procurement, 231 and the program areas and service requirements for the commodity 232

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 9 of 12 CODING: Words stricken are deletions; words underlined are additions. which commodities or contractual services are sought. 233 (b)1.

If the value of a contract is in excess of $1 million 234 in any fiscal year, at least one of the persons conducting 235 negotiations must be certified as a certified contract 236 negotiator based upon department rules in order to ensure that 237 certified contract negotiators are knowledgeable about effective 238 negotiation strategies, capable of successfully implementing 239 those strategies, and involved appropriately in the procurement 240 process.

At a minimum, the rules must address the qualifications 241 required for certification, the method of certification, and the 242 procedure for involving the certified negotiator. 243 2. If the value of a contract is in excess of $10 million 244 in any fiscal year, at least one of the persons conducting 245 negotiations must be a Project Management Professional, as 246 certified by the Project Management Institute. The Project 247 Management Professional shall provide guidance based on his or 248 her experience, education, and competency to lead and direct 249 complex projects. 250 3.

The department is responsible for establishing and 251 disseminating the certification and training requirements for 252 certified contract negotiators. Training must ensure that 253 certified contract negotiators are knowledgeable about effective 254 negotiation strategies, capable of successfully implementing 255 those strategies, and appropriately involved in the procurement 256 process. The department shall evaluate such training every 5 257 years in order to assess its effectiveness and update the 258 training curriculum.

A certified contract negotiator is required 259 to complete training every 5 years for certification renewal. 260 Qualification requirements for certification must include: 261

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 10 of 12 CODING: Words stricken are deletions; words underlined are additions. a.

At least 12 months’ experience as a purchasing agent, 262 contract manager, or contract administrator for an agency or 263 local governmental entity where at least 50 percent of the 264 designated duties included procuring commodities or contractual 265 services, participating in contract negotiation, contract 266 management, or contract administration, or working as an agency 267 attorney whose duties included providing legal counsel to the 268 agency’s purchasing or contracting staff. 269 b.

Experience during the preceding 5 years in leading at 270 least three federal, state, or local government negotiation 271 teams through a negotiated procurement, or participation in at 272 least five federal, state, or local government negotiated 273 procurements. 274 (24)(

a) For each contractual services contract in excess of 275 $1 million, the agency head shall establish a continuing 276 oversight team after the contract has been awarded. The agency 277 head shall appoint at least four persons, one of whom must be 278 the contract manager, to the continuing oversight team. If the 279 value of the contractual services contract is in excess of $5 280 million, at least one of the persons on the continuing oversight 281 team must be a Project Management Professional, as certified by 282 the Project Management Institute.

Members of the continuing 283 oversight team must collectively have experience and knowledge 284 in contract management, contract administration, contract 285 enforcement, and the program areas and service requirements for 286 the contractual services purchased. 287 (

b) Continuing oversight teams must meet at least quarterly 288 to discuss the status of the contract, the pace of deliverables, 289 and contractor performance. The contract administrator must be 290

Florida Senate - 2021 SB 1616 9-01566-21 20211616__ Page 12 of 12 CODING: Words stricken are deletions; words underlined are additions. findings with the official whose office is subject to audit. The 320 final audit report shall be submitted to the agency head. 321 (b)

(2) Within 30 days after receipt of the final audit 322 report, the agency head shall submit to the Chief Financial 323 Officer or designee his or her written statement of explanation 324 or rebuttal concerning findings requiring corrective action, 325 including corrective action to be taken to preclude a 326 recurrence. 327

(2) Beginning October 1, 2021, and every 3 years 328 thereafter, each agency inspector general shall complete a 329 compliance audit of all contract documents executed by the 330 agency for the preceding 3 fiscal years. The audit must include 331 an evaluation of and identify any trend in vendor preference. 332 The audit findings must be submitted to the agency head, the 333 Secretary of the Department of Management Services, and the 334 Governor. 335

Section 5. This act shall take effect July 1, 2021. 336