Florida HB 1159: Contractual Services Contract Liability Limits

Bill Text

CS/CS/HB 1159 2023

CODING: Words stricken are deletions; words underlined are additions.
hb1159-02-c2
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

A bill to be entitled 1
An act relating to contractual services contract 2
liability limits; amending s. 287.058, F.S.; requiring 3
certain contract documents to include a specified 4
provision that provides certain liability limits; 5
reenacting ss. 287.0571(5) and 1002.84(13), F.S., 6
relating to contract requirements for proposed 7
outsourcing and procurement contract requirements for 8
early learning coalitions, respectively, to 9
incorporate the amendment made to s. 287.058, F.S., in 10
references thereto; providing an effective date. 11
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Be It Enacted by the Legislature of the State of Florida: 13
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Section 1. Subsection (8) is added to section 287.058, 15
Florida Statutes, to read: 16
287.058 Contract document.— 17
(8) In addition to any other provision required to be 18
included, the written agreement for a procurement of contractual 19
services in excess of the threshold amount provided in s. 20
287.017 for CATEGORY TWO must include the following provision: 21
22
For all claims against the Contractor under any 23
contract or purchase order, and regardless of the 24
basis on which the claim is made, the Contractor's 25

CS/CS/HB 1159 2023

CODING: Words stricken are deletions; words underlined are additions.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

liability for direct damages under a contract or 26
purchase order shall be limited to the greater of 27
$100,000, the dollar amount of the contract or 28
purchase order, or two times the charges rendered by 29
the Contractor under the purchase order. This 30
limitation shall not apply to claims arising under the 31
Indemnity paragraph contained in this agreement. 32
Unless otherwise specifically enumerated in the 33
Contract or in the purchase order, no party shall be 34
liable to another for special, indirect, punitive, or 35
consequential damages, including lost data or records 36
(unless the contract or purchase order requires the 37
Contractor to back-up data or records), even if the 38
party has been advised that such damages are possible. 39
No party shall be liable for lost profits, lost 40
revenue, or lost institutional operating savings. The 41
State and Customer may, in addition to other remedies 42
available to them at law or equity and upon notice to 43
the Contractor, retain such monies from amounts due 44
Contractor as may be necessary to satisfy any claim 45
for damages, penalties, costs and the like asserted by 46
or against them. The State may set off any liability 47
or other obligation of the Contractor or its 48
affiliates to the State against any payments due the 49
Contractor under any contract with the State. 50

CS/CS/HB 1159 2023

CODING: Words stricken are deletions; words underlined are additions.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

Section 2. For the purpose of incorporating the amendment 51
made by this act to section 287.058, Florida Statutes, in a 52
reference thereto, subsection (5) of section 287.0571, Florida 53
Statutes, is reenacted to read: 54
287.0571 Business case to outsource; applicability.— 55
(5) In addition to the contract requirements provided in 56
s. 287.058, each contract for a proposed outsourcing, pursuant 57
to this section, must include, but need not be limited to, the 58
following contractual provisions: 59
(a) A scope-of-work provision that clearly specifies each 60
service or deliverable to be provided, including a description 61
of each deliverable or activity that is quantifiable, 62
measurable, and verifiable. This provision must include a clause 63
that states if a particular service or deliverable is 64
inadvertently omitted or not clearly specified but determined to 65
be operationally necessary and verified to have been performed 66
by the agency within the 12 months before the execution of the 67
contract, such service or deliverable will be provided by the 68
contractor through the identified contract-amendment process. 69
(b) A service-level-agreement provision describing all 70
services to be provided under the terms of the agreement, the 71
state agency's service requirements and performance objectives, 72
specific responsibilities of the state agency and the 73
contractor, and the process for amending any portion of the 74
service-level agreement. Each service-level agreement must 75

CS/CS/HB 1159 2023

CODING: Words stricken are deletions; words underlined are additions.
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contain an exclusivity clause that allows the state agency to 76
retain the right to perform the service or activity, directly or 77
with another contractor, if service levels are not being 78
achieved. 79
(c) A provision that identifies all associated costs, 80
specific pa