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 Fiscal Policy
BILL: CS/CS/SB 656
INTRODUCER: Appropriations Committee on Agriculture, Environment, and General Government;
Governmental Oversight and Accountability Committee and Senator DiCeglie
SUBJECT: Continuing Contracts
DATE: February 20, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McVaney GO Fav/CS
2. Davis Betta AEG Fav/CS
3. Harmsen Yeatman FP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 656 amends the definition of “continuing contract” under the Consultants’
Competitive Negotiation Act (CCNA) to increase the maximum dollar amount for each
individual project and each individual study under the contract for construction projects. The
maximum dollar amount for each individual project is increased from $4 million to $7.5 million.
Beginning July 1, 2025, and annually thereafter, the Department of Management Services
(DMS) must adjust the maximum amount allowed on the preceding June 30 for each individual
project in a continuing contract based on the June-to-June Consumer Price Index issued by the
United States Department of Labor. The DMS must publish the adjusted amount on its website.
The bill makes similar revisions to s. 255.103(4), F.S., (authorizing local governmental entities
to use the CCNA selection process), increasing the maximum dollar amount for continuing
contracts of local governments from $4 million to $7.5 million. Beginning July 1, 2025, and
annually thereafter, the DMS must adjust the maximum amount allowed on the preceding June
30 for each individual project in a continuing contract based on the June-to-June Consumer Price
Index issued by the United States Department of Labor. The DMS must publish the adjusted
amount on its website.
There is an indeterminate fiscal impact on state and local government expenditures relating to the
administrative costs of competitive procurement and contract costs paid under a continuing
contract. See Section V., Fiscal Impact Statement.
BILL: CS/CS/SB 656 Page 2
The bill takes effect July 1, 2024.
II. Present Situation:
The Department of Management Services (DMS) manages projects throughout the state,
including new construction, renovations, and consulting services for various public works
projects. The Bureau of Building Construction (Bureau), within the DMS, oversees public
building construction statewide. The Bureau is also responsible for managing fixed capital outlay
funds appropriated by the Legislature and for overseeing the repair and renovation of DMS-
managed facilities.1
Generally, state projects must be competitively procured. Part I of ch. 287, F.S., provides “a
system of uniform procedures to be utilized by state agencies in managing and procuring
commodities and contractual services” to protect the public by promoting “fair and open
competition,” thereby reducing the appearance and opportunity for favoritism and misconduct.2
These competitive procurement provisions apply to an agency, defined as “any of the various
state officers, departments, board commissions, divisions, bureaus, and councils and any other
unit of organization, however designated, of the executive boards of state government.3 This
definition does not include municipalities and local governments. Additionally, university and
college boards of trustees, and the state universities and colleges are specifically excluded from
this definition.4
State agencies may use a variety of procurement methods, depending on the cost and
characteristics of the needed good or service, the complexity of the procurement, and the number
of available vendors. These methods include the following:
 Single source contracts,5 used when an agency determines that only one vendor is available
to provide a commodity or service at the time of purchase;
 Invitations to bid,6 used when an agency determines that standard services or goods will meet
needs, wide competition is available and the vendor’s experience will not greatly influence
the agency’s results;
 Requests for proposals,7 used when the procurement requirements allow for consideration of
various solutions and the agency believes more than two or three vendors exist who can
provide the required goods or services; and
 Invitations to negotiate,8 used when negotiations are determined to be necessary to obtain the
best value and involve a request for highly complex, customized, mission-critical services, by
an agency dealing with a limited number of vendors.
1
DMS, Building Construction,
https://www.dms.myflorida.com/business_operations/real_estate_development_and_management/building_construction (last
visited Jan. 29, 2024).
2
Section 287.001, F.S
3
Section 287.012(1), F.S.
4
Id.
5
Section 287.057(3)(c), F.S.
6
Section 287.057(1)(a), F.S.
7
Section 287.057(1)(b), F.S.
8
Section 287.057(1)(c), F.S.
BILL: CS/CS/SB 656 Page 3
For procurement of commodities or contractual services in excess of $35,000, agencies must use
a competitive solicitation process.9 However, specified contractual services and commodities are
not subject to competitive solicitation requirements.10
State contracts for construction projects that are projected to cost in excess of $200,000 must be
competitively bid.11 A county, municipality, special district, or other political subdivision that
seeks to construct or improve a public building must competitively award each project estimated
to cost more than $300,000.12
The Consultants’ Competitive Negotiation Act
In 1973, the Florida Legislature enacted the Consultant’s Competitive Negotiation Act
(CCNA),13 s. 287.055, F.S., which requires state and local government agencies to procure the
professional services of an architect, engineer, landscape architect, or registered surveyor and
mapper using a qualifications-based selection process. The qualifications-based selection
requires the selection of providers on the basis of their competency, qualifications, and
experience, rather than lowest-price.14
The qualifications based selection process of the CCNA contemplates a three-step process:
 Public announcement of the project;
 Competitive selection of the professional firm based on its qualifications; and
 Arms-length competitive negotiations with the most qualified firm or firms.15
During the first phase, the public announcement, state and local agencies16 publicly announce
and describe their need for professional services for one of the following:17
 A project when the basic construction cost of which is estimated by the agency to exceed
$325,000;18 or
 A planning or study activity for professional services that exceeds $35,000.19
The public announcement must provide a general description of the project and describe how the
interested consultant firms may apply for consideration.20
9
Section 287.057(1), F.S.
10
Section 287.057(3)(e), F.S.
11
Section 255.0525, F.S.
12
Section 255.20, F.S.
13
Ch. 73-19, Laws of Fla., codified as s. 287.055, F.S.
14
Section 287.055(3)-(5), F.S.
15
Id.
16
An “agency” under the CCNA is defined as “the state, a state agency, a municipality, a political subdivision, a school
district or a school board.” Section 287.055(2)(b), F.S. See Section 1.01(8), F.S., defining “political subdivision” to include
“counties, cities, towns, villages, special tax school districts, special road and bridge districts, bridge districts, and all other
districts in this state.”
17
Section 287.055(3), F.S.
18
The amount provided in Category Five from the purchasing categories in s. 287.017, F.S.
19
The amount provide in Category Two from the purchasing categories in s. 287.017, F.S.
20
Section 287.055(3)(a)1., F.S.
BILL: CS/CS/SB 656 Page 4
A firm that wishes to provide professional services to an agency must first be certified by the
agency as qualified to provide the needed services pursuant to law and the agency’s
regulations.21 In determining a firm or individual to be qualified, the agency must consider its
capabilities, adequacy of personnel, past record, experience, as well as whether the firm or
individual is a certified minority business enterprise.22
During the second phase, competitive selection, the agency must evaluate the bidders’ current
statements of qualifications and performance data.23 The agency must select and rank at least
three firms it deems to be the most highly qualified to perform the required services, based on the
following:24
 The ability of professional personnel;
 Whether a firm is a certified minority business enterprise;
 Past performance;
 Willingness to meet time and budget requirements;
 Location;
 Recent, current, and projected workloads of the firms; and
 The volume of work previously awarded to each firm by the agency, with the object of
effecting an equitable distribution of contracts among qualified firms, provided such
distribution does not violate the principle of selection of the most highly qualified firms.25
During this qualifications phase, the agency cannot request, accept, or consider proposals for the
firm’s compensation.26 Compensation is “the amount paid by the agency for professional
services regardless of whether stated as compensation or stated as hourly rates, overhead rates, or
other figures or formulas from which compensation can be calculated.”27
During the third phase, competitive negotiation, the agency negotiates compensation to be paid
under the contract with the highest qualified of at least three selected firms.28 Should the agency
be unable to negotiate a satisfactory contract with the top firm at a price the agency determines to
be fair, competitive, and reasonable, the agency may progress to negotiations with the second
most qualified firm, and if this fails,29 with the third.30 If the agency cannot negotiate a
satisfactory contract with any of the ranked firms, it must begin the qualifications-based selection
process again and continue negotiations until an agreement is reached.31
21
Section 287.055(3)(c) F.S.
22
Section 287.055(3)(c)-(d), F.S.
23
Section 287.055(4)(a), F.S.
24
Section 287.055(4)(b), F.S.
25
Id.
26
Id. The CCNS did not prohibit discussion of compensation in the competitive selection phase until 1988, when the
Legislature enacted a provision that allows consideration of compensation only during the competitive negotiation phase. Ch.
88-108, Laws of Fla.
27
Section 287.055(2) (d), F.S.
28
Section 287.055(5)(a), F.S.
29
Section 287.055(5)(b), F.S.
30
Id.
31
Section 287.055(5)(c), F.S.
BILL: CS/CS/SB 656 Page 5
Continuing Contracts Under the CCNA
The CCNA expressly allows agencies to use continuing contracts for professional services.32 A
continuing contract is one for professional services entered into in accordance with the CCNA
between an agency and a firm whereby the firm provides professional services to the agency for
projects that do not exceed specific costs.33
Current law allows an agency to use a continuing contract for: construction projects in which the
estimated construction cost of each individual project under the contract does not exceed $4
million; for study activity, if the fee for professional services for each individual study under the
contract does not exceed $500,000; or for work of a specified nature as outlined in the agency
contract, if the contract is for a fixed term or with a termination clause.34
The maximum per-project and per-study limits were implemented in 198835 at $500,000 and
$25,000, respectively, and subsequently increased three times. In 2002, the limits were increased
to $1 million and $50,000.36 In 2009, the limits were increased to $2 million and $200,000;37 and
in 2020, the limits were increased to $4 million and $500,000.38
Construction and Program Management Entities
A governmental entity39 may choose to use a construction management entity or program
management entity, which it must select using the CCNA’s competitive solicitation process. 40 A
construction management entity is responsible for construction project scheduling and
coordination in both the preconstruction and construction phases, and is generally responsible for
the successful, timely, and economical completion of a construction project.41 A program
management entity is responsible for schedule and cost control, and coordination in the
procurement of planning, design, and construction services.42
The governmental entity may use a continuing contract43 to procure the services of a construction
management or program management entity for work on construction projects.44 However, a
“continuing contract” entered into subject to ch. 255, F.S., is distinct from that in ch. 287, F.S.
Specifically, the governmental entity may only use a continuing contract under ch. 255, F.S., to
32
Section 287.055(4)(d), F.S.
33
Section 287.055(2)(g), F.S.
34
Id. An entity may not use a continuing contract for work of a specified nature to exceed the monetary limits placed on
construction projects and study activities. Op. Fla. Att’y. Gen. 2013-28 (2013).
35
Ch. 88-108, Laws of Fla.
36
Ch. 2002-20, Laws of Fla.
37
Ch. 2009-227, Laws of Fla.
38
Ch. 2020-127, Laws of Fla.
39
Section 255.103(1), F.S. defines the term “governmental entity” to mean “a county, municipality, school district, special
district, special district as defined in chapter 189, or political subdivision of the state.”
40
Section 255.103, F.S.
41
Section 255.103(2), F.S.
42
Section 255.103(3), F.S.
43
Section 255.103(4), F.S., defines a continuing contract as “a contract with a construction management or program
management entity for work during a defined period on construction projects described by type which may or may not be
identified at the time of entering into the contract.”
44
Section 255.103(4), F.S.
BILL: CS/CS/SB 656 Page 6
procure construction management or program management entity services. A continuing contract
under ch. 255, F.S., must also be for a defined period of time (whereas ch. 287, F.S., allows
continuing contracts without a time limitation in certain circumstances).
The governmental entity may also choose to require that the construction management or
program management entity offer a guaranteed maximum price or a guaranteed completion
date.45 If a project includes a grouping of substantially similar construction, rehabilitation, or
renovation activities, the governmental entity may require a separate guaranteed maximum price
and a separate guaranteed completion date for each grouping of substantially similar
construction, rehabilitation, or renovation activities.46
Department of Transportation
Chapter 337, F.S., governs contracts entered into by the Florida Department of Transportation
(FDOT). The FDOT has authority to enter into contracts for the construction and maintenance of
all State Highway or State Park systems’ roads, rest areas, weigh stations, parking areas,
supporting facilities, and any associated building.47 The FDOT must certify as qualified any
bidders for a construction contract, road, bridge, or public construction project that exceeds
$250,000 in cost.48 The certification process ensures that the bidders have professional and
financial competence by evaluating them “with respect to the equipment, past record, experience,
financial resources, and organizational personnel of the applicant necessary to perform the
specific class of work for which the person seeks certification.49
Consumer Price Index and Producer Price Index
The Consumer Price Index for all Urban Consumers (CPI-U) is a measure of the average change
over time in the prices paid by urban consumers for a market basket of consumer goods and