Section: Major Maintenance and Repair Reserve Fund

DEPARTMENT OF MANAGEMENT SERVICES ADMINISTRATIVE POLICY TITLE: Major Maintenance and Repair Reserve Fund Management EFFECTIVE: July 16, 2008 REVISED: February 19, 2018 POLICY NUMBER 08-101 Bureau of Private Prison Monitoring PURPOSE This procedure creates guidelines for processing approvals for reimbursements for major maintenance and repairs and payment of all expenses associated with the Contractor s obligation under the contract for facility maintenance. SCOPE This procedure applies to private correctional facilities and their employees under contract with the Department of Management Services Bureau of Private Prison Monitoring. AUTHORITY State/federal statutes: Contract references: Chapter 957 Correctional Privatization Chapter 286 Public Business: Miscellaneous Provisions Chapter 287 Procurement of Personal Property and Services Section: Maintenance RESPONSIBLE OFFICE Private Prison Monitoring Section: Major Maintenance and Repair Reserve Fund Page 1 of 8 DMS Policy No. Private Prison Monitoring 08-101

DISTRIBUTION The Following Individuals Should Be Notified of This Policy Bureau of Private Prison Monitoring Method of Notification Email and/or interoffice memo Meeting Contractors Email and/or interoffice memo Meeting DEFINITIONS Bureau of Private Prison Monitoring (bureau): The Department of Management Services Bureau of Private Prison Monitoring. Bureau Chief (chief): The Chief of the Bureau of Private Prison Monitoring. Contract manager: The bureau employee who is primarily responsible for management and oversight of the contract and evaluation of the contractor's performance of its duties and obligations pursuant to the terms of the contract. Contractor: The vendor or vendors under contract with the Florida Department of Management Services Bureau of Private Prison Monitoring to operate and manage a private correctional facility. FDC: The Florida Department of Corrections. DMS or department: The Florida Department of Management Services. Emergency request: The request to repair or replace equipment or systems in an expedited manner in order to protect the immediate health, life, or safety of staff, inmates, or the public. Emergency designation shall serve only to expedite the approval process by limiting the required number of quotes and review time. All other requirements of this procedure apply. Facility maintenance monitor (FMM): The employee(s) of the bureau who monitors the maintenance and upkeep of the facility and physical plant for contract, code, rule, and policy compliance and coordinates actions and communications between FDC, the department, and the contractor. The FMM is designated by the bureau. The FMM is the official liaison between the bureau and the contractor on all construction, maintenance, and repair matters pertaining to the facility. Insurable event: Any event or action causing damage or failure to any portion of the physical plant that will result in the need for repair or replacement that would typically be covered under an insurance claim. Page 2 of 8 DMS Policy No. Private Prison Monitoring 08-101

Leased furnishings and equipment: Personal property items, as described in the Inventory section of contract, to be financed or refinanced by disbursements from the project account and leased to the bureau according to the terms of the lease agreement. Major Maintenance and Repair Reserve Fund (fund): On the first day of the month, the bureau deducts a set amount from the contractor s monthly per diem based payment and transfers it to the Operating Trust Fund. Requests for reimbursement for maintenance, replacement, or repair costs in excess of the amount indicated in contract section Major Maintenance and Repair Reserve Fund should be submitted to the bureau chief. Management review specialist (MRS): The employee(s) of the bureau who oversees the functions and responsibilities of the OCM. Management Services Agreement or contract: The operation and management services contract, including all attachments, exhibits, amendments, and modifications, between the department and the contractor. Onsite contract monitor (OCM): The employee(s) of the bureau who monitors the daily operations of the facility for contract compliance and coordinates actions and communications between FDC, the department, and the contractor. The OCM is designated by the bureau. The OCM is the official liaison between the bureau and the contractor on all onsite matters pertaining to the operation and management services of the facility. Per item, per occurrence: In a single occurrence, the equipment, including any modifications, attachments, accessories, or auxiliary apparatus, necessary to make it usable for its acquired purpose. Price: The cost of a furnishing, fixture, or piece of equipment. REDM: Real Estate Development and Management, a division within DMS with building construction, leasing, operations, and maintenance bureaus. PROCEDURE The contractor shall maintain, preserve, and keep the facility and leased furnishings and equipment in good repair and working order and condition, subject to normal wear and tear. The contractor shall promptly make, or cause to be made, all necessary and proper repairs, including those identified by self-monitoring and the bureau s inspections, and must maintain the physical structure of the facility in accordance with the contract, Florida Statutes, and all applicable American Correctional Association standards and FDC s policies and procedures. The contractor shall adhere to all applicable manufacturers warranties, including preventative and routine maintenance schedules. All replaced items will be disposed of in compliance with the Property Asset Page 3 of 8 DMS Policy No. Private Prison Monitoring 08-101

Management Policy and Procedure established by the department. Forms and further information can be found at http://dms.myflorida.com/pam. The bureau may not commit to reimbursing funds in excess of the spending authority granted to the department by the Legislature. Interest in the fund continues to accrue and be used in accordance with spending authority granted by the Legislature. All deposits, withdrawals, and revenue will be tracked by bureau staff and reported to the bureau chief in a timely manner. Preventative and routine maintenance of the facility is the sole responsibility of the contractor. The contractor shall develop and maintain a preventative and routine maintenance plan for all equipment, adhering to manufacturers recommended preventative maintenance schedule, and shall keep all inspection and maintenance records. Failure to perform all required preventative and routine maintenance may result in a rejection of an MMRRF request. The contractor shall be responsible for properly installing and maintaining all necessary equipment. The fund shall not be used to reimburse insurable events or costs related to repair or replacement of contractor property as defined in contract section Possession of the Facility and Inventory; Contractor Property. 1. Steps by contractor to request reimbursement for a major maintenance repair or replacement 1.1. Prior to commencement of any repairs, in formal correspondence to the bureau, contractor shall include the following information: 1.1.1. MMRRF Summary and Checklist form. 1.1.2. Statement of need documenting the item to be repaired or replaced. 1.1.3. Detailed itemized breakdown for all costs associated with the repair or replacement. 1.1.4. Detailed bid specifications put forth to all service contractors for the items to be repaired or replaced. 1.1.5. Minimum of three quotes from separate and unrelated service contractors. Bureau chief may determine the necessity for clarified or additional quotes. 1.1.6. Requests for repairs of proprietary equipment shall include sole source documentation from the manufacturer. In such a case, a single quote for repair may be acceptable. 1.1.7. Any details for appropriately disposing of equipment related to the repair or replacement. 1.1.8. Anticipated timeline for repair replacement of item. 1.1.9. Documentation from vendors indicating licensing and liability insurance status. 1.1.10. Documentation from insurance provider (if applicable) denying repair or replacement of item. Page 4 of 8 DMS Policy No. Private Prison Monitoring 08-101

1.1.11. Documentation of item to be repaired or replaced showing three years of preventative maintenance adhering to the manufacturers recommended maintenance schedule. This documentation should show that that item was appropriately maintained. 1.1.12. Emergency requests shall be submitted in writing, immediately upon knowledge of the need, to the OCM, MRS, FMM, and bureau chief and shall include the following: 1.1.12.1. Statement of need outlining the failure, cause of failure (if known), and the impact of the failure on health, life, or safety. 1.1.12.2. Written quote from at least one vendor indicating either a fixed price or a not to exceed cost. NTE quotes shall be billed at a time and material rate. 1.2. Additional steps as outlined in the Requirements section of this policy. 2. Steps by the department to process contractor requests 2.1. All requests are added to the tracking log by the budget operations and management consultant and forwarded to the bureau chief for review and final determination within 30 days of the department s receipt. 2.2. Bureau chief will meet within 30 days of the department s receipt of reimbursement request to determine approval/denial. Review and determination will be based on the following criteria: 2.2.1. Feasibility of proposed or completed repair or replacement of item: Does the proposed work in the statement of need from the contractor take into consideration that work may be completed within a secure correctional facility? 2.2.2. Necessity of proposed repair or replacement of item: Is the proposed work in the statement of need from the contractor required by the contract, Florida law, American Correctional Association, or FDC standards to run a secure correctional facility? 2.2.3. Compliance with the terms of the contract: Does the proposed or repair or replacement of item conform to the per item, per occurrence and applicable monetary caps entitling the contractor to reimbursement from the fund? 2.2.4. Amount available in the fund: Is the funding available to cover the costs of the proposed or repair or replacement of the item in question? 2.2.5. Feedback from the DMS REDM s maintenance and engineering staff to the bureau chief detailing the scope of work and reimbursement costs for the item being reviewed is appropriate and reasonable. The department may also solicit feedback from sources outside DMS to make this determination. 2.3. Bureau chief will meet within two business days of the department s Page 5 of 8 DMS Policy No. Private Prison Monitoring 08-101

receipt of an emergency request to determine approval/denial. Review and determination will be based on the following criteria: 2.3.1. Criteria outlined in section 2.2. 2.3.2. Justification of emergency designation. Is the request necessary to protect the immediate health, life, or safety of staff or inmates? 2.3.3. Feasibility of soliciting additional quotes. Can measures be taken to safely allow time to solicit the required number of quotes? 2.3.4. Emergency approval shall be at the sole discretion of the bureau chief. 2.4. The department will communicate in formal correspondence to the contractor the approval or denial of contractor s request and provide any additional recommendations based upon the department s review. 2.4.1. If the contractor feels the proposed repair, maintenance, or replacement of item was unfairly denied, the contractor may revise the proposed statement of need and resubmit the request to the bureau chief. The department will within 30 days from receipt review the revised request and tender a determination to the contractor. 2.5. The department s determination is contingent upon spending authority granted by the Legislature. 2.6. The department reserves the right to issue partial payments for requests for reimbursement depending on determination of feasibility, need, compliance, and funds available. The partial payment will be submitted with detailed explanation to the contractor within 30 days of the department s receipt of the request. 2.7. Upon bureau approval, where applicable, the contractor shall procure and complete the proposed repair or replacement of approved item within 30 days. 2.7.1. All work requiring more than 30 days shall be documented in the statement of need and reviewed, approved, or disapproved by the department in the determination letter. 3. Coordination with REDM. The bureau chief may also request REDM to manage a specific repair or replacement request pursuant to REDM s policies and procedures. 3.1. A client agency agreement (CAA) is prepared and executed, allowing REDM to manage a project for the bureau. The project amount is to be stated in the CAA. REDM will not exceed this amount without mutual agreement and an amendment to the CAA between REDM and the bureau. 3.2. REDM will be responsible for the following: 3.2.1. Administration and oversight of the of the designated project 3.2.2. Drafting, management, and negotiation of contracts with architect/engineers (A/E) and construction managers (CM). Page 6 of 8 DMS Policy No. Private Prison Monitoring 08-101

3.2.3. Review of invoices from the A/E and CM to verify services prior to submitting to the bureau for payment 3.2.4. REDM will finalize and close out the project 3.2.5. REDM will receive a management fee for its services. 4. Completion of the approved repair and reimbursement 4.1. Upon contractor s notification of completion of the approved repair, maintenance, or replacement, the facility s OCM will inspect the work to determine whether the work was completed as documented in the statement of need. The OCM will within 15 days to verify to the department that the repair has been completed. 4.2. To receive reimbursement of approved repair or replacement, the contractor shall submit to the department copies of the following: 4.2.1. Paid invoice; 4.2.2. Proof of payment; 4.2.3. New as-built design blueprints (if applicable); 4.2.4. Any department-required deliverables set forth in the formal approval letter; and 4.2.5. The approved statement of work. 4.3. The bureau will within 30 days, review documentation and submit reimbursement invoice to DMS Division of Finance and Accounting. 5. Anticipated repairs 5.1. Anticipated repairs shall be identified and forwarded onto the bureau pursuant to section 1 of this procedure. RESPONSIBILITIES Individual or Responsibilities Group Bureau of Maintain Trust Fund records, including deposits and payments Private Prison and interest accrued. Monitoring, Deduct appropriate amount from man day billings and deposit Budget into the fund. Contractor Maintain, preserve, and keep facility in good working condition. Make, or cause to be made, all necessary and proper repairs. Adhere to all warranties. Dispose of replaced items in compliance with the DMS Property Asset Management procedure. Submit reimbursement request to bureau chief within 30 days of determination of need. If the required quotes cannot be obtained within the 30 days, contractor shall notify the OCM and FMM so that additional time can be granted. Requests received after the 30-day requirement, without approval of additional Page 7 of 8 DMS Policy No. Private Prison Monitoring 08-101

Facility Maintenance Monitor Onsite Contract Monitor Operations and Management Consultant time, shall be subject to denial. Requests shall include the MMRRF Request Summary and Checklist, completed and signed as required. Repairs commenced or completed prior to notifying the department shall be subject to denial of reimbursement request. Request documentation shall follow a chain of custody as follows: maintenance (initiating) staff; warden (or designated representative); corporate reviewer (if applicable); bureau (to include OCM, FMM, and business manager); bureau dhief. Procure and complete, or cause to be completed, repairs, maintenance, and/or replacement of items. Notify OCM of completion of work. Submit paid invoices, proof of payment, and approved statement of work to department for reimbursement. Track all MMRRF requests in a log. Review requests for validity, value, inclusiveness, and correctness of all required documentation. Recommend approval or denial of requests to bureau chief. Forward bureau s official response to contractor. Consult with contractor to offer subject matter expertise regarding maintenance and repair. Conduct physical inspection of work. Document whether work was completed as documented in the statement of need. Send documentation to department. Request department meetings and ensure timelines are met for responses. Receive and review invoices and supporting documentation. Make requests to departments of Corrections and Financial Services for payment of reimbursements. ASSOCIATED FORMS MMRRF Request Summary and Checklist Page 8 of 8 DMS Policy No. Private Prison Monitoring 08-101