Florida Senate - 2024 CS for CS for SB 656 By the Appropriations Committee on Agriculture, Environment, and General Government; the Committee on Governmental Oversight and Accountability; and Senator DiCeglie 601-03254-24 2024656c2 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; requiring the Department of Management 7 Services, beginning on a specified date, to adjust the 8 maximum amount allowed under specified contracts using 9 a specified index, and to publish the adjusted amount 10 on its website; amending s. 287.055, F.S.; revising 11 the definition of the term continuing contract to 12 increase the maximum dollar value of such contract, to 13 require the department, beginning on a specified date 14 and annually thereafter, to adjust the maximum dollar 15 value allowed under such contracts using a specified 16 index, and to publish the new dollar value on its 17 website; making technical changes; providing an 18 effective date. 19 20 Be It Enacted by the Legislature of the State of Florida: 21 22 Section 1.Subsection (4) of section 255.103, Florida 23 Statutes, is amended, and subsections (2) and (3) of that 24 section are republished, to read: 25 255.103Construction management or program management 26 entities. 27 (2)A governmental entity may select a construction 28 management entity, pursuant to the process provided by s. 29 287.055, which is to be responsible for construction project 30 scheduling and coordination in both preconstruction and 31 construction phases and generally responsible for the 32 successful, timely, and economical completion of the 33 construction project. The construction management entity must 34 consist of or contract with licensed or registered professionals 35 for the specific fields or areas of construction to be 36 performed, as required by law. The construction management 37 entity may retain necessary design professionals selected under 38 the process provided in s. 287.055. At the option of the 39 governmental entity, the construction management entity, after 40 having been selected and after competitive negotiations, may be 41 required to offer a guaranteed maximum price and a guaranteed 42 completion date or a lump-sum price and a guaranteed completion 43 date, in which case, the construction management entity must 44 secure an appropriate surety bond pursuant to s. 255.05 and must 45 hold construction subcontracts. If a project, as defined in s. 46 287.055(2)(f), solicited by a governmental entity under the 47 process provided in s. 287.055 includes a grouping of 48 substantially similar construction, rehabilitation, or 49 renovation activities as permitted under s. 287.055(2)(f), the 50 governmental entity, after competitive negotiations, may require 51 the construction management entity to provide for a separate 52 guaranteed maximum price or a separate lump-sum price and a 53 separate guaranteed completion date for each grouping of 54 substantially similar construction, rehabilitation, or 55 renovation activities included within the project. 56 (3)A governmental entity may select a program management 57 entity, pursuant to the process provided by s. 287.055, which is 58 to be responsible for schedule control, cost control, and 59 coordination in providing or procuring planning, design, and 60 construction services. The program management entity must 61 consist of or contract with licensed or registered professionals 62 for the specific areas of design or construction to be performed 63 as required by law. The program management entity may retain 64 necessary design professionals selected under the process 65 provided in s. 287.055. At the option of the governmental 66 entity, the program management entity, after having been 67 selected and after competitive negotiations, may be required to 68 offer a guaranteed maximum price and a guaranteed completion 69 date or a lump-sum price and guaranteed completion date, in 70 which case the program management entity must secure an 71 appropriate surety bond pursuant to s. 255.05 and must hold 72 design and construction subcontracts. If a project, as defined 73 in s. 287.055(2)(f), solicited by a governmental entity under 74 the process provided in s. 287.055 includes a grouping of 75 substantially similar construction, rehabilitation, or 76 renovation activities as permitted under s. 287.055(2)(f), the 77 governmental entity, after competitive negotiations, may require 78 the program management entity to provide for a separate 79 guaranteed maximum price or a lump-sum price and a separate 80 guaranteed completion date for each grouping of substantially 81 similar construction, rehabilitation, or renovation activities 82 included within the project. 83 (4)A governmental entitys authority under subsections (2) 84 and (3) includes entering into a continuing contract for 85 construction projects, pursuant to the process provided in s. 86 287.055, in which the estimated construction cost of each 87 individual project under the contract does not exceed $7.5 $4 88 million. Beginning July 1, 2025, and each July 1 thereafter, the 89 Department of Management Services shall adjust the maximum 90 amount allowed on the preceding June 30 for each individual 91 project in a continuing contract by using the change in the 92 June-to-June Consumer Price Index for All Urban Consumers issued 93 by the Bureau of Labor Statistics of the United States 94 Department of Labor. The Department of Management Services shall 95 publish the adjusted amount on its website. For purposes of this 96 subsection, the term continuing contract means a contract with 97 a construction management or program management entity for work 98 during a defined period on construction projects described by 99 type which may or may not be identified at the time of entering 100 into the contract. 101 Section 2.Paragraph (g) of subsection (2) of section 102 287.055, Florida Statutes, is amended to read: 103 287.055Acquisition of professional architectural, 104 engineering, landscape architectural, or surveying and mapping 105 services; definitions; procedures; contingent fees prohibited; 106 penalties. 107 (2)DEFINITIONS.For purposes of this section: 108 (g)1.A continuing contract is a contract for any of the 109 following: 110 a.Professional services entered into in accordance with 111 all the procedures of this act between an agency and a firm 112 whereby the firm provides professional services to the agency 113 for projects in which the estimated construction cost of each 114 individual project under the contract does not exceed $7.5 $4 115 million. Beginning July 1, 2025, and each July 1 thereafter, the 116 department shall adjust the maximum amount allowed on the 117 preceding June 30 for each individual project in a continuing 118 contract by using the change in the June-to-June Consumer Price 119 Index for All Urban Consumer issued by the Bureau of Labor 120 Statistics of the United States Department of Labor. The 121 department shall publish the adjusted amount on its website;, 122 b.for Study activity if the fee for professional services 123 for each individual study under the contract does not exceed 124 $500,000;, or 125 c.for Work of a specified nature as outlined in the 126 contract required by the agency, with the contract being for a 127 fixed term or with no time limitation except that the contract 128 must provide a termination clause. 129 2.Firms providing professional services under continuing 130 contracts may shall not be required to bid against one another. 131 Section 3.This act shall take effect July 1, 2024.