The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/CS/SB 1616
INTRODUCER: Appropriations Committee (Recommended by Appropriations Subcommittee on
Agriculture, Environment, and General Government); Governmental Oversight and
Accountability Committee; and Senator Brodeur
SUBJECT: Agency Contracts for Commodities and Contractual Services
DATE: April 21, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Ponder McVaney GO Fav/CS
2. Davis Betta AEG Recommend: Fav/CS
3. Davis Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1616 revises several provisions of the part I of chapter 287, Florida Statutes, related
to public procurement. The bill requires the Secretary of Management Services, rather than the
Department of Management Services (DMS), make a written determination finding a contract to
be cost effective and the best value to the state before an agency may be authorized to enter such
contract let by the Federal Government, another state, or a political subdivision.
The bill provides that each agency contract must include authorization for the agency to inspect
certain financial and programmatic records of the contractor relevant to the performance of the
contract.
The bill requires an agency that issues a request for quote for contractual services for any state
term contract with 25 vendors or fewer to issue a request to all approved vendors. For state term
contracts with more than 25 vendors, the agency must issue a request to a minimum of 25
approved vendors.
The bill provides for the immediate disqualification from state term contract eligibility for a firm
or individual who has been removed from the source of supply or placed on the convicted vendor
list or the discriminatory vendor list.
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The bill changes the electronic posting requirement for single source contracting from seven to
15 days and to require agencies report – on a quarterly basis – to the DMS each instance in
which the agency entered into a single source purchase contract. The DMS is required to report
such information to the Governor and the Legislature no later than January 1, 2022, and each
January thereafter.
The bill restricts an agency from initiating a competitive solicitation that would require a change
in law or change to the agency’s original approved budget, unless specifically authorized.
This bill amends the provision governing an agency’s designation of a contract manager to
prohibit a contract manager from having been employed, within the previous five years, by the
vendor awarded the contractual services contract that he or she is assigned. The bill provides for
primary responsibilities of a contract manager.
Current law requires the Chief Financial Officer provide training for accountability in contracts
and grant management for a contract manager responsible for contracts in excess of the threshold
amount for category two ($35,000). The bill requires the Chief Financial Officer to evaluate this
training every five years.
Current law requires a contract manager who is responsible for contracts over $100,000 annually
to complete training in contract management and become a certified contract manager. The bill
requires this training to be completed within six months. The bill provides that in addition to the
training provided under current law, such a contract manager must also complete the
accountability in contracts and grant management training. The DMS is responsible for
disseminating the training and certification requirements for certified contract managers and is
required to evaluate the training every five years.
The bill provides that a contract manager who is responsible for contracts in excess of
$10 million annually, in addition to completing the accountability in contracts and grant
management training and the contract management training and certification requirements, must
possess at least five years of experience managing contracts in excess of $5 million annually.
The bill permits a designated contract administrator to also serve as the contract manager for
contracts less than $500,000 annually, if he or she has completed the required training. For
contracts in excess of $500,000 annually, the contact administrator is prohibited from serving in
both capacities.
The bill specifies that for contracts in excess of $195,000 (category four threshold), the agency
head must appoint at least three persons to independently evaluate proposals and replies who
collectively have experience and knowledge in the program areas and service requirements for
the commodity or contractual services sought. The bill specifies that a negotiation team conduct
negotiations during a competitively sealed reply procurement. For a competitively procured
contract in excess of $1 million in any fiscal year, the negotiation team must include a certified
contract negotiator.
Current law provides that for contracts in excess of $10 million in any fiscal year, at least one
person conducting negotiations must be a Project Management Professional. The bill specifies
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that such Project Management Professional must provide guidance based on his or her
experience, education, and competency to lead and direct complex projects.
The bill requires the DMS to establish and disseminate the training and certification
requirements for certified contract negotiators. The bill provides for certification renewal and
qualification requirements for certification. The DMS must evaluate such training every five
years.
The bill provides that, beginning July 1, 2022, any person who supervises certain contract
administrators or contract or grant managers to annually complete public procurement training
for supervisors within 12 months of appointment to the supervisory position. The DMS is
responsible for establishing and disseminating the training course content required for
supervisors.
The bill requires an agency to establish a four person “continuing oversight team” for each
contractual services contract in excess of $5 million. The bill requires the teams to meet to
discuss the status of the contract, the pace of deliverables, the quality of deliverables, contractor
responsiveness, and contractor performance; and requires the team to provide written notice to
the agency head, the DMS, the Office of Policy and Budget within the Executive Office of the
Governor, and the legislative appropriations committees in certain instances.
The bill provides that a contract may not contain a nondisclosure clause exempting certain
information.
The bill provides that a vendor who is placed on the suspended vendor list is disqualified from
bidding on or renewing a contract with the state and provides a mechanism for a vendor to
petition for removal from the suspended vendor list.
The bill requires each agency inspector general to complete a risk based compliance audit of all
contracts executed by the agency for the preceding three fiscal years and requires the audit to
identify and evaluate any trend in vendor preference.
The bill requires the DMS to conduct a study evaluating fleet management options to identify
potential savings, of which, the results must be provided in a written report to the President of
the Senate and Speaker of the House of Representatives by January 1, 2022.
The bill makes conforming statutory changes.
The bill will have an indeterminate negative fiscal impact. See Part V, Fiscal Impact Statement.
The bill takes effect on July 1, 2021.
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II. Present Situation:
Procurement of Commodities and Services
Chapter 287, F.S., regulates state agency procurement of personal property and services. The
term “agency” is defined broadly to mean any unit of the executive branch of state government. 1
The Department of Management Services (DMS) is responsible for overseeing state purchasing
activity, including professional and contractual services, as well as commodities needed to
support agency activities.2 The agency head of the DMS is the “Secretary of Management
Services” who is appointed by the Governor, subject to confirmation by the Florida Senate, and
serves at the pleasure of the Governor.3
The DMS is authorized to evaluate contracts let by the federal government, another state, or a
political subdivision for the provision of commodities and contract services and, when it is
determined to be cost effective and in the best interest of the state, to enter into written
agreement authorizing a state agency to make purchases under such contract.4 The DMS
negotiates contracts and purchasing agreements that are intended to leverage the state’s buying
power.
Section 287.017, F.S., establishes the following purchasing categories, which are threshold
amounts linked to other requirements in ch. 287, F.S.:
 Category one: $20,000.
 Category two: $35,000.
 Category three: $65,000.
 Category four: $195,000.
 Category five: $325,000.
Written Agreements for Procurements Exceeding $35,000
Every procurement for contractual services in excess of the threshold amount in category two,
$35,000, with certain exceptions5, must be evidenced by a written agreement embodying all
provisions and conditions of the procurement of such services.6 The provisions and conditions
must, where applicable, include, but are not limited to a provision:
 That bills for fees or other compensation for services or expenses are to be submitted in detail
sufficient for a proper preaudit and postaudit thereof.7
1
Section 287.012(1), F.S. The term “agency” is defined as “any of the various state officers, departments, boards,
commissions, divisions, bureaus, and councils and any other unit of organization, however designated, of the executive
branch of state government. “Agency” does not include the university and college boards of trustees or the state universities
and colleges.”
2
See ss. 287.032 and 287.042, F.S.
3
Section 20.22(1), F.S.
4
Section 287.042(16), F.S.
5
Excepting providing of health and mental health services or drugs in the examination, diagnosis, or treatment of sick or
injured state employees or the providing of other benefits as required by the Workers' Compensation Law.
6
Section 287.058(1), F.S.
7
Section 287.058(1)(a), F.S.
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 That bills for travel expenses are to be submitted in accordance with statutory procedures.8
 Allowing unilateral cancellation by the agency for refusal by the contractor to allow public
access to all documents, papers, letters, or other material made or received by the contractor
in conjunction with the contract, unless the records are exempt from provisions governing the
inspection and copying of public records.;9
 Specifying a scope of work that clearly establishes all tasks the contractor is required to
perform.10
 Dividing the contract into quantifiable, measurable, and verifiable units of deliverables that
must be received and accepted in writing by the contract manager before payment; each
deliverable must be directly related to the scope of work and specify a performance measure,
that is, the required minimum acceptable level of service to be performed and criteria for
evaluating the successful completion of each deliverable.11
 Specifying the criteria and the final date by which such criteria must be met for completion
of the contract.12
 Specifying that the contract may be renewed for a period that may not exceed three years or
the term of the original contract, whichever is longer, specifying the renewal price for the
contractual service as set forth in the bid, proposal, or reply; specifying that costs for the
renewal may not be charged; and specifying that renewals are contingent upon satisfactory
performance evaluations by the agency and subject to the availability of funds.13
 Specifying the financial consequences that the agency must apply if the contractor fails to
perform in accordance with the contract.14
 Addressing the property rights of any intellectual property related to the contract and the
specific rights of the State regarding the intellectual property if the contractor fails to provide
the services or is no longer providing services.15
The written agreement must be signed by the agency head or designee and the contractor before
the rendering of any contractual service in excess of $35,000.16,17 Unless otherwise provided in
the General Appropriations Act (GAA) or the substantive bill implementing the GAA, the Chief
Financial Officer (CFO) may waive these requirements for services, which are included in law
for procurement of commodities or contractual services.18 A contract may not prohibit a
contractor from lobbying the executive or legislative branch concerning the scope of services,
8
Section 287.058(1)(b), F.S., referring to s. 112.061, F.S., and providing further that a state agency may establish rates lower
than the maximum provided in that statute.
9
Section 287.058(1)(c), F.S., referring to Art. I, § 24(a), Fla. Const., and s. 119.07(1), F.S.
10
Section 287.058(1)(d), F.S.
11
Section 287.058(1)(e), F.S.
12
Section 287.058(1)(f), F.S.
13
Section 287.058(1)(g), F.S., noting, however, that exceptional purchase contracts pursuant to ss. 287.057(3)(a), and
287.057(3)(c), F.S., may not be renewed. See Florida Dept. of Highway Safety and Motor Vehicles v. National Safety
Com’n, Inc., 75 So. 3d 298 (Fla. 1st DCA 2011) (The purpose of the statute allowing state procurement contracts to include a
renewal provision is to exempt the parties from the competitive bidding process for a limited time if they are mutually
satisfied with the agreement; it does not guarantee any vendor the right to continue to do business with the State beyond the
original term of the contract.).
14
Section 287.058(1)(h), F.S.
15
Section 287.058(1)(i), F.S.
16
There is an exception in the case of a valid emergency as certified by the agency head.
17
Section 287.058(2), F.S.
18
Section 287.058(5), F.S.
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performance, term, or compensation regarding any contract to which the contractor and a state
agency are parties, after contract execution and during the contract term.19
Each public agency contract for services must authorize the public agency to inspect the:
 Financial records, papers, and documents of the contractor that are directly related to the
performance of the contract or the expenditure of state funds.
 Programmatic records, papers, and documents of the contractor that the public agency
determines are necessary to monitor the performance of the contract or to ensure that the
terms of the contract are being met. 20
The contract must require the contractor to provide the records, papers, and documents requested
by the public agency within 10 business days after the request is made.21
Contract Renewals
Current law allows contracts for commodities or contractual services to be renewed for a period
that does not exceed three years or the term of the original contract, whichever is longer.22
Renewal of a contract for commodities or contractual services must be in writing and is subject
to the same terms and conditions set forth in the initial contract and any written amendments
signed by the parties.23 A renewal contract may not include any compensation for costs
associated with the renewal, is contingent upon satisfactory performance evaluations by the
agency, and is subject to the availability of funds.24
If a contract amendment results in a longer contract term or increased payments, an agency may
not renew or amend a contract for the outsourcing of a service or activity that has an original
term val