Governor Signs Florida's New P3 Legislation

Governor Rick Scott signed HB 85 yesterday, creating Florida's new Public/Private Partnership Statute.  Senator Miguel Diaz de la Portilla and Representative Greg Steube, the bill sponsors, deserve great recognition for championing this cause through the difficulties of the legislative session.

However, it was all worth it.  As Representative Steube said, "We must use Florida funds wisely but we must be open to new ideas. My legislation ensures that public benefit comes first. Growth and job creation are important to our state's future. That being said, public and private entities must be accountable for their actions and Floridians will hold projects accountable for the final investment and, more importantly, the results".

The new legislation the responsible public entity to ensure the quality of the private entity's performance and safeguard the most efficient pricing. It addresses the transfer of the private entity's obligations to the investors or public entity if the project agreement, called a comprehensive agreement, is terminated or a material default occurs. Additionally, the public entity must perform an independent analysis of the proposed public-private partnership to ensure the cost-effectiveness and overall public benefit of the job.

Representative Steube said it best when he said, "I want to personally thank the Governor for his support of public-private partnerships in Florida. The signing of this bill will create jobs, encourage economic development and provide infrastructure to taxpayers at little or no taxpayer expense."

Public-Private Partnership Law Creates New Procurement Method

HB 85, passed by the Florida Legislature is expected to be signed into law by the Governor. HB 85 creates a new Florida Statute, Section 287.05712, Public-Private Partnerships. Upon becoming law, Section 287.05712 will usher in a new procurement method in the State of Florida. Namely, the "unsolicited proposal".

Traditionally, public agencies in Florida accept bids by way of an Invitation for Bid, Request for Proposals, or Request for Qualifications. These traditional procurement methods typically define the project for bidders to respond to. In the case of an "unsolicited proposal", it will be up to the bidder to define the project for the public agency's consideration. After the effective date of the new law, public agencies will be authorized to receive and consider unsolicited proposals for a "qualifying project" as defined therein.

Public agencies will be authorized to establish a reasonable application fee which is intended to cover the cost of evaluating the proposal. If the public agency intends to enter into an agreement in relation to an unsolicited proposal, it must provide notice of no less than 21 days and up to 120 days before entering into an agreement in order to allow other bidders to submit a proposal. Thereafter, the new law provides for a more traditional process for the evaluation, ranking and ultimate contract award.

The spirit and intent of the new law has been widely reported on during this past Legislative Session. While the public necessity for the new law is driven by virtue of the need for private funding of much needed public works projects, the codification and authority for public agencies to accept unsolicited proposals is a key component of the process.