4THE CITY OF Pl.EASANT LIVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
To:
FROM:
DATE:
The Honorable Mayor & Members ofthe City Commission
Steven Alexander, City Manager
January 20, 2015 Agenda Item No.: __ --"''--_
SUBJECT
A Resolution authorizing the City Manager to negotiate and execute an amendment to the
Miami-Dade County Information Technology Department (ITO) contract to increase the scope
to include Re-Design of the City's IP Scheme.
BACKGROUND
Miami-Dade County Information Technology Department (lTD) continues to review the City of
South Miami's network and is making the following IT Service Improvement recommendation
to address an IP deficiency which they have identified.
The City's IP addresses currently in use are not (Request for Comment) RFC 1918 private IP
addresses, they are publicly routable and therefore, security is a concern.
Miami-Dade County is strongly recommending that the City's IP addresses be changed to use
RFC 1918 ranges. This involves changes on several network devices along with; servers,
firewalls, PCs, appliances, printers, etc. The City of South Miami needs to migrate off of the
publicly routable IP addresses configured on the equipment since it overlaps with Internet IP
address space.
RFCs are documents used by the Internet Engineering Task Force (IETF), the standards body for
TCPjlP, to convey changes or innovations to TCPjlP connected systems like the Internet. In an
effort to provide a better understanding of the issue, please find below a detailed explanation
ofthe issue, developed by Miami-Dade County lTD.
There are two types of addresses employed on the Internet, public addresses and
private addresses. The City of South Miami is currently configured to use Publicly
Internet Routable IP addresses inside of its network. The selection of Public IP
addresses might include addresses already assigned to other organizations. These
addresses would be duplicate or conflicting addresses and are known as illegal
addresses. Connectivity from illegal addresses to Internet locations is not possible. The
use of illegal addresses may not be immediately known. To solve this problem, Miami-
Dade County lTD is recommending migrating the City of South Miami onto private IP
addresses. An IP address in the private address space is never assigned as a public
address. Because the public and private address spaces do not overlap, private
addresses never duplicate public addresses. The purpose of this engagement would be
to remove the use of these Publicly Internet Routable IP addresses from the network
and replace them with RFC 1918 private IP addresses.
Miami-Dade County ITO proposes to use the County's Information Technology Network group.
The re-design of the City of South Miami IP scheme project is estimated to take approximately
120-days to complete from the date approved by City Commission. The implementation of the
project will be in phases. Considering the project is extremely time-consuming and outside the
scope of the City's existing agreement, the total estimated cost to complete this project is
$20,200. The City's MIS account, 001-1340-513-3450 specifically budgeted $20,200 for this
project.
Lastly, the work to be conducted to complete the re-design of IP address scheme requires full
access and control of the City of South Miami's IT infrastructure. The project involves accessing
and changing the configuration on network devices along. with; servers, firewalls, PCs,
appliances, printers, etc. It would not be in best practices to have another IT service provider
access to the City of South Miami's IT Infrastructure in order to deploy and configure the new IP
Address Scheme. Miami-Dade County as the IT service provider of record will have to monitor
and shadow the alternate IT service provider to ensure no impact to the operations of the City
of South Miami. Miami-Dade County will have to escort the alternate IT service provider while
they are on premise or accessing via remote connection to the City of South Miami's IT
infrastructure. At the conclusion of the re-design of IP address scheme by the alternate service
provider, Miami-Dade County would have to conduct a complete security reset and password
lockdown of the City of South Miami's IT infrastructure in order to ensure no disclosure or
accidental breach of security access to the City's IT infrastructure.
ACCOUNT & EXPENSE AMOUNT
Expenditure amount of $20,200 from account 001-1340-513-3450, Contract Service -
Infrastructure with a current balance of $167,616
ATTACHMENTS:
Resolution
Management Information System Office FY 15 Adopted Budget
1 RESOLUTION NO: _____ _
2 A Resolution authorizing the City Manager to negotiate and execute an
3 amendment to the Miami-Dade County Information Technology
4 Department (ITO) contract to increase the scope to include Re-Design of
5 the City's IP Scheme.
6 WHEREAS, Miami-Dade County Information Technology Department (ITO)
7 continues to review the City of South Miami's network and is making the following IT
8 Service Improvement recommendation to address the IP deficiency which they have
9 found; and
10 WHEREAS, the City's IP addresses currently in use are not (Request for
11 Comment) RFC 1918 private IP addresses, they are publicly routable; and
12 WHEREAS, to solve this problem, Miami-Dade County ITO is recommending
13 migrating the City of South Miami onto private IP address, an IP address in the private
14 address space is never assigned as a public address; and
15 WHEREAS, Miami-Dade County ITO is suggesting to use the County's Information
16 Technology Network group and the Re-Design of the City of South Miami IP Scheme
17 project is estimated to take approximately 120-days to complete from the date
18 approved by City Commission; and
19 WHEREAS, the use of another vendor to perform the work would require ITO to
20 shadow the work of another vendor and then ITO would need to conduct a complete
21 security reset and password lockdown of the City of South Miami's IT infrastructure in
22 order to ensure no disclosure or accidental breach of security access to the City's IT
23 infrastructure; and
24 WHEREAS, the use of another vendor to perform the work would be more
25 expensive and dangerous to the integrity of the City's IT infrastructure, as well as
26 possibly voiding ITO's warrantee as to its work
27 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
28 THE CITY OF SOUTH MIAMI, FLORIDA;
29 Section 1. The City Manager is authorized to negotiate and execute an
30 amendment to the City's Interlocal agreement with Miami-Dade County Information
31 Technology Department for an amount not to exceed $20,200 for the Re-Design of the
32 City's IP Scheme
33
Page 1 of2
34 Section 2. Severability. If any section, clause, sentence, or phrase of this
35 resolution is for any reason held invalid or unconstitutional by a court of competent
36 jurisdiction, this holding shall not affect the validity of the remaining portions of this
37 resolution.
38 Section 3. Effective Date: This resolution shall take effect immediately upon
39 enactment.
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PASSED AND ADOPTED this _ day of ___ -', 2015.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE, LEGALITY AND EXECUTION
EXECUTION THEREOF
CITY ATTORN EY
Page 2 of2
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Harris:
Commissioner Liebman:
Commissioner Welsh:
Commissioner Edmond:
South Miami
THI' CIlV Of' PLEASANT LIVING
MANAGEMENT INFORMATION SYSTEMS OFFICE
001-1340-5 I 3
MISSION
The mission of the Management Information Systems Office of the City of South Miami is to
provide quality design, implementation, and support of all computer based and related
technologies necessary for the staff to perform their duties as efficiently and expediently as
possible.
MANAGEMENT INFORMATION SYSTEMS FUNCTION
The City's Management Information Systems Office will be recognized among municipalities as a
premier provider of technology infrastructure and services. Our ultimate function is to make
information available anytime and anywhere.
In partnership with City departments, the Management Information Systems Office provides
strategic vision for effective information systems. Accomplishment of this mission will facilitate
knowledge sharing and will result in satisfied customers.
The Management Information Systems Office is responsible for three main initiatives: The City's
Information Technology and Network, Cable Television Services and the City's website.
MANAGEMENT INFORMATION SYSTEMS ACCOMPLISHMENTS FY 2014
On April of 2014 the City was fortunate to enter into an Interlocal Agreement with Miami-Dade
County's Information Technology's Department (lTD). Within FY 2014, lTD was able to provide
an evaluation of the City's existing infrastructure and provide a road map to accomplish the
Office's mission. Within the short time allowed in FY 2014, the Management Information
Systems Office was able to accomplish many important projects that were critical.
• The Laserfiche server was correctly
configured so that City personnel can
now utilize the system and download
documents. Documents that are now
being scanned and imported into the
system are searchable. Citizens will
soon be able, within FY 14, to search and
download City documents currently
within Laserfiche.
•
•
•
MIS has completed a complete map of
the City's existing network system .
MIS completely revamped the AV and
Sound system within the City
Commission Chambers.
MIS will be completing within FY 2014
the federally required dual authentication
project.
CITY OF SOUTH MIAMI BUDGET FY 2014-2015 98
• • laml
THI' CITY OF PLEASANT LIVING
MANAGEMENT INFORMATION SYSTEMS OBJECTIVES FOR FY 2015
•
•
•
Virtualization of the City's current
network environment and eliminating
many of the outdated servers.
The City's IP addresses currently in use
are not RFC 1918 private IP addresses,
they are publicly routable. The City of
South Miami will migrate off of the
publicly routable IP addresses and MIS
will reconfigure all of the affected City
equipment.
Since April 8, 2014, Windows XP is no
longer supported by Microsoft. The City
will migrate off all computers and servers
off of Windows XP and onto Microsoft's
cloud offering of Office 365.
• There are 4 Active Domain controllers
running on different versions of
•
•
Windows. MIS will be upgrading the
domain controllers so that they are all
running on the same operating system to
ensure maximum compatibility and
stability.
Ensure the Domain Controllers are
being backed up. In the event of a
deleted object, corruption, or failed
domain controllers, without a backup the
City's domain(s) objects will have to be
rebuilt from scratch. Depending on the
failure, users would be impacted several
hours to days.
Help in the implementation of the
ONESolution Community Development
Software.
MANAGEMENT INFORMATION SYSTEMS ACTIVITY REPORT
Meeti 156 175 hrs. 156 162 142
0551 Software Issues 192 64 52 41 20
5 2 2 2 8
CITY OF SOUTH MIAMI BUDGET FY 2014-2015 99
0011340
0011340
0011340
0011340
0011340
0011340
TI1I: CITY Of' PLEASANT LIVING
MANAGEMENT INFORMATION SYSTEMS BUDGET FY 2015
001-1340-5 13
5133450 CONTRACT SERV -INFRASTRUCT 198,763 188,552 175,000
5134632 INTERNET SERVICE 67,989 58,454 38,670
5134634 MAINTENANCE -INTERNET SERVICE 22,099 36,145 68,831
5135205 COMPUTER EQUIPMENT 71,755 22,509 32,225
5135210 SUPPLIES 14,997 3,403 3,038
TOTAL OPERATING EXPENSES 375,603 309,063 317,764
5136430 OPERATING EQUIPMENT 9,620 0 0
TOTAL CAPITAL OUTLAY 9,620 0 0
TOTAL MIS 385,223 309,063 317,764
CITY OF SOUTH MIAMI BUDGET FY 2014-2015
204,266 195,200
38,670 50,679
68,831 83,049
32,225 22,950
3,038 3,038
347,030 354,916
0 0
0 0
347,030 354,916
100
THE CITY 01: PLEASANT LIVING
MANAGEMENT INFORMATION SYSTEMS BUDGET HIGHLIGHTS
3450 Contractual Services -The City's contractor with Miami-Dade County Information
Technology Department (lTD) is for an annual amount of $165,500. The City funds an additional
$9,500 for any after-hour emergencies which may occur throughout the year over the lTD
provided 50-hours. Furthermore, the City included an additional $20,200 for the Re-Design of
the City of South Miami's IP Scheme. The City of South Miami needs to migrate off of the
publicly routable IP addresses configured on the equipment since it overlaps with Internet IP
address space. This is a long overdue security need.
4632 Internet -
50 Meg with Managed Router to Internet Increase Band width -FPL
20 Meg with Managed Router to City Hall -FPL
10 Meg with Managed Router to Public Works -FPL
10 Meg with Managed Router to Parks -FPL
ATT Uverse (568.26 Per month) -State of FL.
ATT Router (620 per month)
ATT Procabsl Fibernet (500 per month)
TOTAL
CITY OF SOUTH MIAMI BUDGET FY 2014-2015
5,940
8,280
8,100
8,100
6,819
7,440
6,000
50,679
101
THE CITY OF PLEASANT LIVING
4634 Maintenance Internet Software -
Barracuda WebFilter Energize Updates I year (Yearly subscription for daily updates on files
needed to block sites) -Serial # 138964
Barracuda WebFilter Instant Replacement I year (Yearly payment for instant replacement if box
fails) -Serial # 138964
Barracuda Spam Firewall Energize Updates I year ( Yearly subscription for daily updates on files
needed to block Spam) -Serial # 119859
Barracuda Spam Firewall Instant Replacement I year (Yearly payment for instant replacement if
box fails) -Serial # I 19859
Barracuda Mail Archiver Energize Updates I year (Yearly subscription for daily updates on files
needed to block Viruses) -Serial # 222677
Barracuda Mail Archiver Instant Replacement I year (Yearly subscription for instant replacement
if box fails) -Serial # 222677
Barracuda NG Firewall Energize Updates I year (Yearly subscription for daily updates on files
needed to protect network parameter) -Serial # 43193 I
Barracuda NG Firewall Instant Replacement I year (Yearly subscription for instant replacement if
box fails) -Serial # 431931
Barracuda NG Firewall Energize Updates I year (Yearly subscription for daily updates on files
needed to protect network parameter) -Serial # 296850
Barracuda NG Firewall Instant Replacement I year (Yearly subscription for instant replacement if
box fails) -Serial # 296850
Trend WF Anti-virus up to 250 Users Renewal ( includes Servers and laptops) I year (Required
to protect network from viruses) -(Shi License)
Cisco Smartnet 1841 X 3
Cisco Smartnet 1242 x 2
ASA 5510 smart net 24/7
ASA 5510 smart net 24/7 failover
Navigo Support ( Police)
dotgov.gov domain renewal for southmiamifl.gov ( yearly)
Laserfiche Maintenance and support (Yearly to provide maintenance and support for Laserfiche
Software)
Civic Plus Website Support as per Contract
ERP and Laserfiche Integration with Civic Plus
GoDaddy SSL Certificate for City Email ( Yearly)
IBM Support and Maintenance AS-400 (Hardware)
IBM Support and Maintenance AS-400 (Software)
Sans Support and Maintenance HP (I) (Support needed for SAN device. This device currently
holds 80% of the City's data)
Webpage (GoDaddy)
HD Digital receiver (Chambers) ($40 x 12)
Energize Updates Model 300 & replacement
Cisco Smartnet 1921 -I year
Microsoft 360 (130 users x $155 per user)
ONESolution Implementation & Custom Reports
TOTAL
CITY OF SOUTH MIAMI BUDGET FY 2014-2015
474
426
664
426
1,150
930
474
474
569
569
3,800
320
108
670
635
1,000
125
13,528
4,646
10,000
90
1,632
1,632
900
120
480
997
60
20,150
16,000
83,049
102
THE CITY Of' PLEASANT LlVINC
5205 Computer Equipment -
Recommend 10% contingency to above contract for as of yet unknown projects
Cisco ASA55 10 Police Dept Failover
I laptop and I i Pad for Mayor
TOTAL
5210 Supplies -
ThumbDrives Replacement Parts (5)
DVD Lightscribe Media (DVD's used for meetings/public requests with logo etched on them)
CD Lightscribe Media (CD's used for meetings/public requests with logo etched on them)
Cable Ties
Tape
AS-400 Backup Tapes
LTO Backup Tapes
SC Fiber Rack Patch Panels
8 port POE Switches
Batteries
RJ-45 Cat 5 and 6
Keyboards
Mice
CITY OF SOUTH MIAMI
TOTAL
BUDGET FY 2014-2015
17,500
2,850
2,600
22,950
400
240
108
75
50
375
225
550
425
90
200
175
125
3,038
103
Miami Dade County
Information Technology Department
Scope of Work
PROJECT TITLE: Re-Design City of South Miami IP Scheme
LOCATION: City of South Miami
PROJECT MANAGER: Erick Gomez, Systems Support Manager, (305) 596-8404
PROJECT SPONSER: John Concepcion, Division Director, (305) 596-8368
This work performed in this statement of work will comply with the EIA/TIA standards and Request for
Comments (RFC) 1918 private IP address.
IP addresses currently in use are not RFC 1918 private IP addresses, they are
()
publicly routable. The previous IT service provider did not use RFC 1918 private IP
r: addresses, they used publicly routable. There are two types of addresses employed ., on the Internet, public addresses and private addresses. The City of South Miami is .,
(I) currently configured to use Publicly Internet Routable IP addresses inside of its = r+ network. The selection of Public IP addresses might include addresses already C/)
r+ assigned to other organizations. These addresses would be duplicate or conflicting SI)
r+ addresses and are known as illegal addresses. Connectivity from illegal addresses (I)
to Internet locations is not possible. The use of illegal address may not be an
immediate known.
C The Re-Design of IP Scheme engagement would be to remove the use of these (I)
til Publicly Internet Routable IP addresses from the network and replace them with (')
:::::!. RFC 1918 private IP addresses. IP addresses need to be changed to use RFC
"0 r+ 1918 ranges. This will involve changes on all computer equipment along with, o· servers, firewalls, mobile devices, printers, etc. =
Timeline 90 days to complete the Re-Design City of South Miami IP Scheme from the date
approved by City Commission.
Cost Cost to Re-Design City of South Miami IP Scheme $20,200.
Please Note: In the development of this proposal we have made every attempt to consider Best Practices, regulatory, and other considerations.
However, changes may be necessary which migllt increase the overall estimated project cost. The need for a Change Order could include Client
requested changes, regulatory requirements, hidden conditions requiring destructive inspections, material or contractor overruns, or other
changes to the scope-of-work. If this occurs, you will be notified and requested to provide your approval for the additional costs andlor changes.
All materials and services procured from vendors or contractors are included in the estimate.
ITD(il]YOlJR SERVICE
Title XIX
PUBLIC BUSINESS
The 2014 Florida Statutes
Chapter 287
PROCUREMENT OF PERSONAL PROPERTY AND SERVICES
287.057 Procurement of commodities or contractual services.-
View Entire Chapter
(1) The competitive solicitation processes authorized in this section shall be used for procurement of
commodities or contractual services in excess of the threshold amount provided for CATEGORY TWO in
s. 287.017. Any competitive solicitation shall be made available simultaneously to all vendors, must include
the time and date for the receipt of bids, proposals, or replies and of the public opening, and must include all
contractual terms and conditions applicable to the procurement, including the criteria to be used in
determining acceptability and relative merit of the bid, proposal, or reply.
(a) Invitation to bid. -The invitation to bid shall be used when the agency is capable of specifically
defining the scope of work for which a contractual service is required or when the agency is capable of
establishing precise specifications defining the actual commodity or group of commodities required.
1. All invitations to bid must include:
a. A detailed description of the commodities or contractual services sought; and
b. If the agency contemplates renewal of the contract, a statement to that effect.
2. Bids submitted in response to an invitation to bid in which the agency contemplates renewal of the
contract must include the price for each year for which the contract may be renewed.
3. Evaluation of bids must include consideration of the total cost for each year of the contract, including
renewal years, as submitted by the vendor.
4. The contract shall be awarded to the responsible and responsive vendor who submits the lowest
responsive bid.
(b) Request/or proposa/s.-An agency shall use a request for proposals when the purposes and uses for
which the commodity, group of commodities, or contractual service being sought can be specifically defined
and the agency is capable of identifying necessary deliverables. Various combinations or versions of
commodities or contractual services may be proposed by a responsive vendor to meet the specifications of
the solicitation document.
1. Before issuing a request for proposals, the agency must determine and specify in writing the reasons
that procurement by invitation to bid is not practicable.
2. All requests for proposals must include:
a. A statement describing the commodities or contractual services sought;
b. The relative importance of price and other evaluation criteria; and
c. If the agency contemplates renewal of the contract, a statement to that effect.
3. Criteria that will be used for evaluation of proposals must include, but are not limited to:
a. Price, which must be specified in the proposal;
b. If the agency contemplates renewal of the contract, the price for each year for which the contract may
be renewed;
c. Consideration of the total cost for each year of the contract, including renewal years, as submitted by
the vendor; and
d. Consideration of prior relevant experience of the vendor.
4. The contract shall be awarded by written notice to the responsible and responsive vendor whose
proposal is determined in writing to be the most advantageous to the state, taking into consideration the price
and other criteria set forth in the request for proposals. The contract file shall contain documentation
supporting the basis on which the award is made.
(c) Invitation to negotiate.-The invitation to negotiate is a solicitation used by an agency which is
intended to determine the best method for achieving a specific goal or solving a particular problem and
identifies one or more responsive vendors with which the agency may negotiate in order to receive the best
value.
1. Before issuing an invitation to negotiate, the head of an agency must determine and specify in writing
the reasons that procurement by an invitation to bid or a request for proposal is not practicable.
2. The invitation to negotiate must describe the questions being explored, the facts being sought, and the
specific goals or problems that are the subject of the solicitation.
3. The criteria that will be used for determining the acceptability of the reply and guiding the selection of
the vendors with which the agency will negotiate must be specified. The evaluation criteria must include
consideration of prior relevant experience of the vendor.
4. The agency shall evaluate replies against all evaluation criteria set forth in the invitation to negotiate in
order to establish a competitive range of replies reasonably susceptible of award. The agency may select one
or more vendors within the competitive range with which to commence negotiations. After negotiations are
conducted, the agency shall award the contract to the responsible and responsive vendor that the agency
determines will provide the best value to the state, based on the selection criteria.
5. The contract file for a vendor selected through an invitation to negotiate must contain a short plain
statement that explains the basis for the selection of the vendor and that sets forth the vendor's deliverables
and price, pursuant to the contract, along with an explanation of how these deliverables and price provide the
best value to the state.
(2) Prior to the time for receipt of bids, proposals, or replies, an agency may conduct a conference or
written question and answer period for purposes of assuring the vendor's full understanding of the solicitation
requirements. The vendors shall be accorded fair and equal treatment.
(3) If the purchase price of commodities or contractual services exceeds the threshold amount provided in
s. 287.017 for CATEGORY TWO, purchase of commodities or contractual services may not be made without
receiving competitive sealed bids, competitive sealed proposals, or competitive sealed replies unless:
(a) The agency head determines in writing that an immediate danger to the public health, safety, or
welfare or other substantial loss to the state requires emergency action. After the agency head signs such a
written determination, the agency may proceed with the procurement of commodities or contractual services
necessitated by the immediate danger, without receiving competitive sealed bids, competitive sealed
proposals, or competitive sealed replies. However, the emergency procurement shall be made by obtaining
pricing information from at least two prospective vendors, which must be retained in the contract file, unless
the agency determines in writing that the time required to obtain pricing information will increase the
immediate danger to the public health, safety, or welfare or other substantial loss to the state. The agency
shall furnish copies of all written determinations and any other documents relating to the emergency action to
the department. A copy of the written statement shall be furnished to the Chief Financial Officer with the
voucher authorizing payment. The individual purchase of personal clothing, shelter, or supplies which are
needed on an emergency basis to avoid institutionalization or placement in a more restrictive setting is an
emergency for the purposes of this paragraph, and the filing with the department of such statement is not
required in such circumstances. In the case of the emergency purchase of insurance, the period of coverage of
such insurance may not exceed 30 days, and all such emergency purchases shall be reported to the
department.
(b) The purchase is made by an agency from a state term contract procured, pursuant to this section, by
the department or by an agency, after receiving approval from the department, from a contract procured,
pursuant to subsection (1), by another agency.
(c) Commodities or contractual services available only from a single source may be excepted from the
competitive-solicitation requirements. If an agency believes that commodities or contractual services are
available only from a single source, the agency shall electronically post a description of the commodities or
contractual services sought for at least 7 business days. The description must include a request that
prospective vendors provide information regarding their ability to supply the commodities or contractual
services described. If it is determined in writing by the agency, after reviewing any information received from
prospective vendors that the commodities or contractual services are available only from a single source, the
agency shall provide notice of its intended decision to enter a single-source purchase contract in the manner
specified in s. 120.57(3).
(d) Prescriptive assistive devices for the purpose of medical, developmental, or vocational rehabilitation
of clients are excepted from competitive-solicitation requirements and shall be procured pursuant to an
established fee schedule or by any other method that ensures the best price for the state, taking into
consideration the needs of the client. Prescriptive assistive devices include, but are not limited to, prosthetics,
orthotics, and wheelchairs. For purchases made pursuant to this paragraph, state agencies shall annually file
with the department a description of the purchases and methods of procurement.
l(e) The following contractual services and commodities are not subject to the competitive-solicitation
requirements of this section:
1. Artistic services. As used in this subsection, the term {{artistic services" does not include advertising or
typesetting. As used in this subparagraph, the term {{advertising" means the making of a representation in any
form in connection with a trade, business, craft, or profession in order to promote the supply of commodities
or services by the person promoting the commodities or contractual services.
2. Academic program reviews if the fee for such services does not exceed $50,000.
3. Lectures by individuals.
4. Legal services, including atto~ney, paralegal, expert witness, appraisal, or mediator services.
5. Health services involving examination, diagnosis, treatment, prevention, medical consultation, or
administration. The term also includes, but is not limited to, substance abuse and mental health services
involving examination, diagnosis, treatment, prevention, or medical consultation if such services are offered to
eligible individuals participating in a specific program that qualifies multiple providers and uses a standard
payment methodology. Reimbursement of administrative costs for providers of services purchased in this
manner are also exempt. For purposes of this subparagraph, the term "providers" means health professionals
and health facilities, or organizations that deliver or arrange for the delivery of health services.
6. Services provided to persons with mental or physical disabilities by not-for-profit corporations that
have obtained exemptions under s. 501(c)(3) of the United States Internal Revenue Code or when such
services are governed by Office of Management and Budget Circular A-122. However, in acquiring such
services, the agency shall consider the ability of the vendor, past performance, willingness to meet time
requirements, and price.
7. Medicaid services delivered to an eligible Medicaid recipient unless the agency is directed otherwise in
law.
8. Family placement services.
9. Prevention services related to mental health, including drug abuse prevention programs, child abuse
prevention programs, and shelters for runaways, operated by not-for-profit corporations. However, in
acquiring such services, the agency shall consider the ability of the vendor, past performance, willingness to
meet time requirements, and price.
10. Training and education services provided to injured employees pursuant to s. 440.491(6).
11. Contracts entered into pursuant to s. 337.1l.
12. Services or commodities provided by governmental entities.
13. Statewide public service announcement programs provided by a Florida statewide nonprofit
corporation under s. 501(c)(6) of the Internal Revenue Code which have a guaranteed documented match of
at least $3 to $1.
(f) Continuing education events or programs that are offered to the general public and for which fees
have been collected which pay all expenses associated with the event or program are exempt from
requirements for competitive solicitation.
(4) An agency must document its compliance with s. 216.3475 if the purchase of contractual services
exceeds the threshold amount provided in s. 287.017 for CATEGORY TWO and such services are not
competitively procured.
(5) If less than two responsive bids, proposals, or replies for commodity or contractual services purchases
are received, the department or other agency may negotiate on the best terms and conditions. The
department or other agency shall document the reasons that such action is in the best interest of the state in
lieu of resoliciting competitive sealed bids, proposals, or replies. Each agency shall report all such actions to
the department on a quarterly basis, in a manner and form prescribed by the department.
{6} Upon issuance of any solicitation, an agency shall, upon request by the department, forward to the
department one copy of each solicitation for all commodity and contractual services purchases in excess of the
threshold amount provided in s. 287.017 for CATEGORY TWO. An agency shall also, upon request, furnish a
copy of all competitive-solicitation tabulations. The Office of Supplier Diversity may also request from the
agencies any information submitted to the department pursuant to this subsection.
(7)(a} In order to strive to meet the minority business enterprise procurement goals set forth in
s.287.09451, an agency may reserve any contract for competitive solicitation only among certified minority
business enterprises. AgenCies shall review all their contracts each fiscal year and shall determine which
contracts may be reserved for solicitation only among certified minority business enterprises. This reservation
may only be used when it is determined, by reasonable and objective means, before the solicitation that there
are capable, qualified certified minority business enterprises available to submit a bid, proposal, or reply on a
contract to provide for effective competition. The Office of Supplier Diversity shall consult with any agency in
reaching such determination when deemed appropriate.
{b} Before a contract may be reserved for solicitation only among certified minority business enterprises,
the agency head must find that such a reservation is in the best interests of the state. All determinations shall
be subject to s. 287.09451{5}. Once a decision has been made to reserve a contract, but before sealed bids,
proposals, or replies are requested, the agency shall estimate what it expects the amount of the contract to
be, based on the nature of the services or commodities involved and their value under prevailing market
conditions. If all the sealed bids, proposals, or replies received are over this estimate, the agency may reject
the bids, proposals, or replies and request new ones from certified minority business enterprises, or the
agency may reject the bids, proposals, or replies and reopen the bidding to all eligible vendors.
{c} All agencies shall consider the use of price preferences of up to 10 percent, weighted preference
formulas, or other preferences for vendors as determined appropriate pursuant to guidelines established in
accordance with s. 287.09451{4} to increase the participation of minority business enterprises.
{d} All agencies shall avoid any undue concentration of contracts or purchases in categories of
commodities or contractual services in order to meet the minority business enterprise purchasing goals in
s. 287.09451.
{8} An agency may reserve any contract for competitive solicitation only among vendors who agree to use
certified minority business enterprises as subcontractors or subvendors. The percentage of funds, in terms of
gross contract amount and revenues, which must be expended with the certified minority business enterprise
subcontractors and subvendors shall be determined by the agency before such contracts may be reserved. In
order to bid on a contract so reserved, the vendor shall identify those certified minority business enterprises
which will be utilized as subcontractors or subvendors by sworn statement. At the time of performance or
project completion, the contractor shall report by sworn statement the payments and completion of work for
all certified minority business enterprises used in the contract.
(9) An agency shall not divide the solicitation of commodities or contractual services so as to avoid the
requirements of subsections (1)-(3).
(10) A contract for commodities or contractual services may be awarded without competition if state or
federal law prescribes with whom the agency must contract or if the rate of payment or the recipient of the
funds is established during the appropriations process.
(11) If two equal responses to a solicitation or a request for quote are received and one response is from
a certified minority business enterprise, the agency shall enter into a contract with the certified minority
business enterprise.
(12) Extension of a contract for commodities or contractual services must be in writing for a period not to
exceed 6 months and is subject to the same terms and conditions set forth in the initial contract and any
written amendments signed by the parties. There may be only one extension of a contract unless the failure to
meet the criteria set forth in the contract for completion of the contract is due to events beyond the control of
the contractor.
(13) Contracts for commodities or contractual services may be renewed for a period that may not exceed
3 years or the term of the original contract, whichever is longer. 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. If the commodity or contractual service is
purchased as a result of the solicitation of bids, proposals, or replies, the price of the commodity or
contractual service to be renewed must be specified in the bid, proposal, or reply, except that an agency may
negotiate lower pricing. A renewal contract may not include any compensation for costs associated with the
renewal. Renewals are contingent upon satisfactory performance evaluations by the agency and subject to the
availability of funds. Exceptional purchase contracts pursuant to paragraphs (3)(a) and (c) may not be
renewed. With the exception of subsection (10), if a contract amendment results in a longer contract term or
increased payments, a state agency may not renew or amend a contract for the outsourcing of a service or
activity that has an original term value exceeding $10 million before submitting a written report concerning
contract performance to the Governor, the President of the Senate, and the Speaker of the House of
Representatives at least 90 days before execution of the renewal or amendment.
(14) For each contractual services contract, the agency shall designate an employee to function as
contract manager who is responsible for enforcing performance of the contract terms and conditions and
serve as a liaison with the contractor.
(a) Each contract manager who is responsible for contracts in excess of the threshold amount for
CATEGORY TWO must, at a minimum, complete training conducted by the Chief Financial Officer for
accountability in contracts and grant management. The Chief Financial Officer shall establish and disseminate
uniform procedures pursuant to s. 17.03(3) to ensure that contractual services have been rendered in
accordance with the contract terms before the agency processes the invoice for payment. The procedures
must include, but need not be limited to, procedures for monitoring and documenting contractor
performance, reviewing and documenting all deliverables for which payment is requested by vendors, and
providing written certification by contract managers of the agency's receipt of goods and services.
(b) Each contract manager who is responsible for contracts in excess of $100,000 annually must complete
training in contract management and become a certified contract manager. The department is responsible for
establishing and disseminating the requirements for certification which include completing the training
conducted by the Chief Financial Officer for accountability in contracts and grant management. Training and
certification must be coordinated by the department, and the training must be conducted jointly by the
department and the Department of Financial Services. Training must promote best practices and procedures
related to negotiating, managing, and ensuring accountability in agency contracts and grant agreements,
which must include the use of case studies based upon previous audits, contracts, and grant agreements. All
agency contract managers must become certified within 24 months after establishment of the training and
certification requirements by the department and the Department of Financial Services.
(15) Each agency shall designate at least one employee who shall serve as a contract administrator
responsible for maintaining a contract file and financial information on all contractual services contracts and
who shall serve as a liaison with the contract managers and the department.
(16)(a) For a contract in excess of the threshold amount provided in s. 287.017 for CATEGORY FOUR, the
agency head shall appoint:
1. At least three persons to evaluate proposals and replies who collectively have experience and
knowledge in the program areas and service requirements for which commodities or contractual services are
sought.
2. At least three persons to conduct negotiations during a competitive sealed reply procurement who
collectively have experience and knowledge in negotiating contracts, contract procurement, and the program
areas and service requirements for which commodities or contractual services are sought.
(b) If the value of a contract is in excess of $1 million in any fiscal year, at least one of the persons
conducting negotiations must be certified as a contract negotiator based upon department rules in order to
ensure that certified contract negotiators are knowledgeable about effective negotiation strategies, capable of
successfully implementing those strategies, and involved appropriately in the procurement process. At a
minimum, the rules must address the qualifications required for certification, the method of certification, and
the procedure for involving the certified negotiator. If the value of a contract is in excess of $10 million in any
fiscal year, at least one of the persons conducting negotiations must be a Project Management Professional, as
certified by the Project Management Institute.
(17)(a)1. Each agency must avoid, neutralize, or mitigate significant potential organizational conflicts of
interest before a contract is awarded. If the agency elects to mitigate the significant potential organizational
conflict or conflicts of interest, an adequate mitigation plan, including organizational, physical, and electronic
barriers, shall be developed.
2. If a conflict cannot be avoided or mitigated, an agency may proceed with the contract award if the
agency head certifies that the award is in the best interests of the state. The agency head must specify in
writing the basis for the certification.
(b)l. An agency head may not proceed with a contract award under subparagraph (a)2. if a conflict of
interest is based upon the vendor gaining an unfair competitive advantage.
2. An unfair competitive advantage exists when the vendor competing for the award of a contract
obtained:
a. Access to information that is not available to the public and would assist the vendor in obtaining the
contract; or
b. Source selection information that is relevant to the contract but is not available to all competitors and
that would assist the vendor in obtaining the contract.
(c) A person who receives a contract that has not been procured pursuant to subsections (1)-(3) to
perform a feasibility study of the potential implementation of a subsequent contract, who participates in the
drafting of a solicitation or who develops a program for future implementation, is not eligible to contract with
the agency for any other contracts dealing with that specific subject matter, and any firm in which such person
has any interest is not eligible to receive such contract. However, this prohibition does not prevent a vendor
who responds to a request for information from being eligible to contract with an agency.
(18) Each agency shall establish a review and approval process for all contractual services contracts
costing more than the threshold amount provided for in s. 287.017 for CATEGORY THREE which shall include,
but not be limited to, program, financial, and legal review and approval. Such reviews and approvals shall be
obtained before the contract is executed.
(19) In any procurement that costs more than the threshold amount provided for in s. 287.017 for
CATEGORY TWO and is accomplished without competition, the individuals taking part in the development or
selection of criteria for evaluation, the evaluation process, and the award process shall attest in writing that
they are independent of, and have no conflict of interest in, the entities evaluated and selected.
(20) Nothing in this section shall affect the validity or effect of any contract in existence on October 1,
1990.
(21) An agency may contract for services with any independent, nonprofit college or university which is
located within the state and is accredited by the Southern Association of Colleges and Schools, on the same
basis as it may contract with any state university and college.
(22) The department, in consultation with the Chief Financial Officer and the Agency for State Technology,
shall maintain a program for online procurement of commodities and contractual services. To enable the state
to promote open competition and leverage its buying power, agencies shall participate in the online
procurement program, and eligible users may participate in the program. Only vendors prequalified as
meeting mandatory requirements and qualifications criteria may participate in online procurement.
(a) The department, in consultation with the Agency for State Technology and in compliance with the
standards of the agency, may contract for equipment and services necessary to develop and implement online
procurement.
(b) The department shall adopt rules to administer the program for online procurement. The rules must
include, but not be limited to:
1. Determining the requirements and qualification criteria for prequalifying vendors.
2. Establishing the procedures for conducting online procurement.
3. Establishing the criteria for eligible commodities and contractual services.
4. Establishing the procedures for providing access to online procurement.
5. Determining the criteria warranting any exceptions to participation in the online procurement
program.
(c) The department may impose and shall collect all fees for the use of the online procurement systems.
1. The fees may be imposed on an individual transaction basis or as a fixed percentage of the cost savings
generated. At a minimum, the fees must be set in an amount sufficient to cover the projected costs of the
services, including administrative and project service costs in accordance with the policies of the department.
2. If the department contracts with a provider for online procurement, the department, pursuant to
appropriation, shall compensate the provider from the fees after the department has satisfied all ongoing
costs. The provider shall report transaction data to the department each month so that the department may
determine the amount due and payable to the department from each vendor.
3. All fees that are due and payable to the state on a transactional basis or as a fixed percentage of the
cost savings generated are subject to s. 215.31 and must be remitted within 40 days after receipt of payment
for which the fees are due. For fees that are not remitted within 40 days, the vendor shall pay interest at the
rate established under s. 55.03(1) on the unpaid balance from the expiration of the 40-day period until the
fees are remitted.
4. All fees and surcharges collected under this paragraph shall be deposited in the Operating Trust Fund
as provided by law.
(23) Each solicitation for the procurement of commodities or contractual services shall include the
following provision: "Respondents to this solicitation or persons acting on their behalf may not contact,
between the release of the solicitation and the end of the 72-hour period following the agency posting the
notice of intended award, excluding Saturdays, Sundays, and state holidays, any employee or officer of the
executive or legislative branch concerning any aspect of this solicitation, except in writing to the procurement
officer or as provided in the solicitation documents. Violation of this provision may be grounds for rejecting a
response."
History.-s. 1, ch. 78-4; s. 2, ch. 80-206; s. 4, ch. 80-374; s. 1, ch. 82-121; s. 9, ch. 82-196; s. 3, ch. 83-99; s.
3,ch.83-192;s. 7, ch. 86-204; s. 9, ch. 88-384;s. 1, ch. 89-377; s. 17,ch.90-268;s.8,ch. 91-162;s. 251,ch.92-
279;s. 55,ch. 92-326; s. 7, ch. 93-161;s. 1~ ch. 94-322;s. 869, ch. 95-148; s. 6,ch. 96-236; s. 30, ch. 97-153;s.
82, ch. 98-279; s. 11, ch. 99-4; s. 50, ch. 99-8; s. 45, ch. 99-399; s. 33, ch. 2000-164; s. 11, ch. 2000-286; s. 56,
ch. 2001-61; s. 4, ch. 2001-278; s. 37, ch. 2002-1; s. 15, ch. 2002-207; s. 331, ch. 2003-261; s. 20, ch. 2004-5; ss.
9,58,ch. 2004-269;s. 1, ch. 2005-59;ss. 6, 15,ch. 2005-71;s.6,ch. 2006-2;s.4,ch. 2006-26;s. 19,ch. 2006-
79;s. 25, ch. 2006-195;s. 1, ch. 2006-224;s.8,ch. 2007-6;s. 15,ch. 2007-105;s. 6,ch. 2008-5;s. 13,ch. 2008-
116; s. 5, ch. 2008-153; s. 4, ch. 2009-227; s. 9, ch. 2010-4; s. 19, ch. 2010~151; s. 13, ch. 2012-32; ss. 5, 6, ch.
2013-154;s. ~ch.2014-135;s.25,ch.2014-221.
lNote.-Section 25, ch. 2012-32, provides that:
U(l) The executive director of the Department of Revenue is authorized, and all conditions are deemed
met, to adopt emergency rules under ss. 120.536(1) and 120.54(4), Florida Statutes, for the purpose of
implementing this act.
U(2) Notwithstanding any provision of law, such emergency rules shall remain in effect for 6 months after
the date adopted and may be renewed during the pendency of procedures to adopt permanent rules
addressing the subject of the emergency rules./I