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Senate approves tight controls on state contracts

By JONI JAMES
Published April 8, 2005

TALLAHASSEE - Reacting to reports Gov. Jeb Bush's push to privatize government services has faltered, the Florida Senate unanimously approved three bills Thursday aimed at exerting more legislative control over private contracts.

The most sweeping proposal demands that state agencies inform lawmakers of any major plans to award contracts for state services before signing them. It also requires agencies to develop contingency plans in case a company fails.

The bill also requires agencies to notify legislative leaders before signing any contract amendment, extension or renewal; requires training for any state employee negotiating contracts; and allows the state chief financial officer to review any contract before it is signed.

The poster child for the changes is the problem-riddled implementation of a privatized payroll system operated by Convergys Corp. that has resulted in thousands of paycheck and benefit errors for state employees since it came online last year. While error rates are down, state agencies continue to complain that the service is not as user-friendly as the state-operated systems it replaced.

"This bill cleans up the system," bill sponsor Sen. Nancy Argenziano, R-Dunnellon, said during debate. "It remedies many of the problems we've had in the past couple of years."

The bill (SB 1146) prohibits employees of private companies from supervising state employees or being involved in negotiating contracts the company might bid on, a reaction to a criminal investigation last month.

BearingPoint of McLean, Va., might have been aided by insider knowledge in landing a $126-million contact to run the state's computer services, the Florida Department of Law Enforcement found.

A similar bill in the House requires less legislative input. And Bush, who has acknowledged his administration failed to thoroughly vet some contracts before signing them, has said he will veto any measure that strips the executive branch of its autonomy.

Other privatization-related measures the Senate approved:

SB 1476, sponsored by Sen. Walter "Skip" Campbell, D-Tamarac, would require the Department of Children and Families to more closely adhere to general state contracting laws. It also would prohibit state universities from subcontracting no-bid work to other entities, a reaction to a scandal involving former DCF Secretary Jerry Regier and two staffers.

SB 1494, which would shift oversight for technology purchases from the State Technology Office to individual agencies.

Joni James can be reached at 850 224-7263 or jjames@sptimes.com

[Last modified April 8, 2005, 00:32:07]


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