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 Governmental Oversight and Accountability
BILL: CS/SB 1428
INTRODUCER: Governmental Oversight and Accountability Committee and Senator Wright
SUBJECT: Procurement Procedures
DATE: March 10, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Candelaria McVaney GO Fav/CS
2. JU
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1428 requires the Department of Management Services (DMS) to develop procedures that
require each current and prospective contractor, as a prerequisite to providing commodities or
contractual services to the state pursuant to a contract executed, extended, renewed, or amended
on or after July 1, 2021, to provide the DMS with a written declaration which discloses whether
the contractor is owned or controlled by a foreign government.
The bill provides that the term “foreign government” has the same meaning as defined in
s. 876.22, F.S. Section 876.22, F.S., defines “foreign government” to mean the government of
any country, nation, or group of nations other than the Government of the United States or one of
the states thereof.
The bill takes effect upon becoming a law.
II. Present Situation:
The Department of Management Services
The Department of Management Services (DMS) is responsible for establishing a system of
procurement policies, procedures, and practices for agencies to use while acquiring commodities
and contractual services.1 As a result, the DMS develops a list of interested vendors and
1
Section 287.042(3), F.S.
BILL: CS/SB 1428 Page 2
contractors by classes of commodities2 or contractual services.3 Section 287.012(7), F.S., defines
a contractor as “a person who contracts to sell commodities or contractual services to an
agency.” The DMS also develops procedures for advertising solicitations, the receipt and
opening of bids, proposals and replies, an agency to decide to contract, an agency in maintaining
a contract file for each contract, an agency to issue solicitations that promote competition, and
agencies to use when procuring information technology commodities and contractual services
that ensure compliance with public records requirements and archiving requirements.4 The DMS
prescribes the methods of securing competitive seals bids, proposals, and replies. These methods
include procedures for identifying vendors and contractors, setting qualifications, conducting
question and answer periods, and ranking and selecting vendors and contractors.
Agency Process for Procurement of Contractual Services
State agencies who wish to procure contractual services in excess of $35,0005 must go through a
competitive solicitation process. All competitive solicitations are required to be made available
simultaneously to all vendors, and must include the time and date for the receipt of bids,
proposals or replies, along with the contractual terms and conditions applicable to the
procurement.6 An agency has three methods of procurement. These include an invitation to bid, a
request for proposals, and an invitation to negotiate.7
Invitation to Bid
Once an agency is capable of defining the scope of work for which is a contractual service is
required, the agency may solicit an invitation to bid (ITB). Each ITB must include a detailed
description of the commodities or contractual services sought and whether the agency
contemplates renewal of the contract.8 If the agency contemplates renewal of the contract, each
bid submitted in response to an ITB must include the price for each year for which the contract
may be renewed.
Request for Proposals
An agency uses a request for proposals (RFP) when the purposes and uses for the contractual
service or commodity being sought can be specifically defined and the agency can identify
deliverables. A vendor may respond with various versions of services or commodities to meet
2
Section 287.012(5), F.S., defines “commodity” to mean the process of requesting and receiving two or more sealed bids,
proposals, or replies submitted by responsive vendors in accordance with the terms of a competitive process, regardless of the
method of procurement.
3
Section 287.012(8), F.S., defines “contractual service” to mean the rendering by a contractor of its time and effort rather
than the furnishing of specific commodities. The term applies only to those services rendered by individuals and firms who
are independent contractors, and such services may include, but are not limited to, evaluations; consultations; maintenance;
accounting; security; management systems; management consulting; educational training programs; research and
development studies or reports on the findings of consultants engaged thereunder; and professional, technical, and social
services. The term does not include a contract for the furnishing of labor or materials for the construction, renovation, repair,
modification, or demolition of a facility, building, portion of building, utility, park, parking lot, or structure or other
improvement to real property entered into pursuant to chapter 255 and rules adopted thereunder.
4
Section 287.042(3)(a-h), F.S.
5
Section 287.017, F.S.
6
Section 287.057(1), F.S.
7
Section 287.057(1)(a-c), F.S.
8
Section 287.057(1)(a), F.S.
BILL: CS/SB 1428 Page 3
the specification of the solicitation document. Each RFP must include a statement describing the
commodities or contractual services sought, the relative importance of price, and whether the
agency contemplates renewal of contract.9 The contract is awarded by written notice to the
responsible and responsive vendor whose proposal is the most advantageous to the state.
Invitation to Negotiate
The invitation to negotiate (ITN) is a solicitation used by an agency intended to determine the
best method for achieving a specific goal or solving a particular problem. The ITN process
identifies one or more responsive vendors with which an agency may negotiate in order to
receive the best value. In order to issue an ITN, the head of the agency must determine in writing
the reasons that procurement by an ITB or an RFP is not practicable. The ITN must include
questions being explored, the facts being sought, and the specific goals of the solicitation. The
agency may select one or more vendors to begin negotiations, and then award the contract to the
responsible and responsive vendor that the agency deems will provide the best value to the
state.10
III. Effect of Proposed Changes:
Section 1 amends s. 287.042, F.S., to require the DMS to develop procedures that require each
current and prospective contractor, as a prerequisite to providing commodities or contractual
services to the state pursuant to a contract executed, extended, renewed, or amended on or after
July 1, 2021, to provide the DMS with a written declaration which discloses whether the
contractor is owned or controlled by a foreign government.
The bill provides that the term “foreign government” has the same meaning as defined in s.
876.22, F.S. Section 876.22, F.S., defines “foreign government” to mean the government of any
country, nation, or group of nations other than the Government of the United States or one of the
states thereof.
Section 2 provides that bill take effect upon becoming a law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. This bill does not require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities.
B. Public Records/Open Meetings Issues:
None.
9
Section 287.057(1)(b), F.S.
10
Section 287.057(1)(c), F.S.
 BILL: CS/SB 1428 Page 4
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The DMS may incur additional workload associated with overseeing that new and
prospective contractors comply with the requirements of the bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 287.042 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Governmental Oversight and Accountability on March 10, 2021:
The CS limits the disclosure by a current or prospective contractor declaring whether
they are owned or controlled by a foreign government to a contract executed, extended,
renewed, or amended on or after July 1, 2021.
BILL: CS/SB 1428 Page 5
The CS provides that the term “foreign government” has the same meaning as s. 876.22,
F.S., - the government of any country, nation, or group of nations other than the
Government of the United States or one of the states thereof.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.