Florida Senate - 2024 CS for SB 656 By the Committee on Governmental Oversight and Accountability; and Senator DiCeglie 585-02587-24 2024656c1 1 A bill to be entitled 2 An act relating to continuing contracts; amending s. 3 255.103, F.S.; revising the maximum estimated 4 construction cost of construction projects for which a 5 governmental entity may enter into a continuing 6 contract; amending s. 287.055, F.S.; revising the 7 definition of the term continuing contract to 8 increase the maximum dollar value of such contract, to 9 require the Department of Management Services, 10 beginning on a specified date and annually thereafter, 11 to adjust the maximum dollar value allowed under such 12 contracts using a specified index, and to publish the 13 new dollar value on its website; making technical 14 changes; providing an effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1.Subsection (4) of section 255.103, Florida 19 Statutes, is amended, and subsections (2) and (3) of that 20 section are republished, to read: 21 255.103Construction management or program management 22 entities. 23 (2)A governmental entity may select a construction 24 management entity, pursuant to the process provided by s. 25 287.055, which is to be responsible for construction project 26 scheduling and coordination in both preconstruction and 27 construction phases and generally responsible for the 28 successful, timely, and economical completion of the 29 construction project. The construction management entity must 30 consist of or contract with licensed or registered professionals 31 for the specific fields or areas of construction to be 32 performed, as required by law. The construction management 33 entity may retain necessary design professionals selected under 34 the process provided in s. 287.055. At the option of the 35 governmental entity, the construction management entity, after 36 having been selected and after competitive negotiations, may be 37 required to offer a guaranteed maximum price and a guaranteed 38 completion date or a lump-sum price and a guaranteed completion 39 date, in which case, the construction management entity must 40 secure an appropriate surety bond pursuant to s. 255.05 and must 41 hold construction subcontracts. If a project, as defined in s. 42 287.055(2)(f), solicited by a governmental entity under the 43 process provided in s. 287.055 includes a grouping of 44 substantially similar construction, rehabilitation, or 45 renovation activities as permitted under s. 287.055(2)(f), the 46 governmental entity, after competitive negotiations, may require 47 the construction management entity to provide for a separate 48 guaranteed maximum price or a separate lump-sum price and a 49 separate guaranteed completion date for each grouping of 50 substantially similar construction, rehabilitation, or 51 renovation activities included within the project. 52 (3)A governmental entity may select a program management 53 entity, pursuant to the process provided by s. 287.055, which is 54 to be responsible for schedule control, cost control, and 55 coordination in providing or procuring planning, design, and 56 construction services. The program management entity must 57 consist of or contract with licensed or registered professionals 58 for the specific areas of design or construction to be performed 59 as required by law. The program management entity may retain 60 necessary design professionals selected under the process 61 provided in s. 287.055. At the option of the governmental 62 entity, the program management entity, after having been 63 selected and after competitive negotiations, may be required to 64 offer a guaranteed maximum price and a guaranteed completion 65 date or a lump-sum price and guaranteed completion date, in 66 which case the program management entity must secure an 67 appropriate surety bond pursuant to s. 255.05 and must hold 68 design and construction subcontracts. If a project, as defined 69 in s. 287.055(2)(f), solicited by a governmental entity under 70 the process provided in s. 287.055 includes a grouping of 71 substantially similar construction, rehabilitation, or 72 renovation activities as permitted under s. 287.055(2)(f), the 73 governmental entity, after competitive negotiations, may require 74 the program management entity to provide for a separate 75 guaranteed maximum price or a lump-sum price and a separate 76 guaranteed completion date for each grouping of substantially 77 similar construction, rehabilitation, or renovation activities 78 included within the project. 79 (4)A governmental entitys authority under subsections (2) 80 and (3) includes entering into a continuing contract for 81 construction projects, pursuant to the process provided in s. 82 287.055, in which the estimated construction cost of each 83 individual project under the contract does not exceed $7.5 $4 84 million. For purposes of this subsection, the term continuing 85 contract means a contract with a construction management or 86 program management entity for work during a defined period on 87 construction projects described by type which may or may not be 88 identified at the time of entering into the contract. 89 Section 2.Paragraph (g) of subsection (2) of section 90 287.055, Florida Statutes, is amended to read: 91 287.055Acquisition of professional architectural, 92 engineering, landscape architectural, or surveying and mapping 93 services; definitions; procedures; contingent fees prohibited; 94 penalties. 95 (2)DEFINITIONS.For purposes of this section: 96 (g)1.A continuing contract is a contract for any of the 97 following: 98 a.Professional services entered into in accordance with 99 all the procedures of this act between an agency and a firm 100 whereby the firm provides professional services to the agency 101 for projects in which the estimated construction cost of each 102 individual project under the contract does not exceed $7.5 $4 103 million. Beginning July 1, 2025, and each July 1 thereafter, the 104 department shall adjust the maximum amount allowed on the 105 preceding June 30 for each individual project in a continuing 106 contract by using the change in the June-to-June Consumer Price 107 Index for All Urban Consumer issued by the Bureau of Labor 108 Statistics of the United States Department of Labor. The 109 department shall publish the adjusted amount on its website;, 110 b.for Study activity if the fee for professional services 111 for each individual study under the contract does not exceed 112 $500,000;, or 113 c.for Work of a specified nature as outlined in the 114 contract required by the agency, with the contract being for a 115 fixed term or with no time limitation except that the contract 116 must provide a termination clause. 117 2.Firms providing professional services under continuing 118 contracts may shall not be required to bid against one another. 119 Section 3.This act shall take effect July 1, 2024.