TO:Purchasing Offices

Page 1 of 3

June 27, 2017

MEMORANDUM

TO:Purchasing Offices

Departments, Institutions, Agencies

Commonwealth of Virginia

FROM:Robert E. Gleason

Director, DPS

SUBJECT:Changes to the Virginia Public Procurement Act, Effective July 1, 2017

The 2017 session of the General Assembly made some changes to the Virginia Public Procurement Act (VPPA)that tookeffect July 1, 2017 or later. Attached is an unofficial copy of the VPPA incorporating those changes. Changes are indicated by an arrow () in the margin. After June 30, 2017, the 2016 version of the VPPA issued by the Division is obsolete.

The following is a brief summary of the significant changes made by the 2017 General Assembly, which are reflected in this copy. For judicial or other legal uses, consult the Code of Virginia.

§ 2.2-4301Definitions

Directs to new section of the code where Competitive negotiation and Competitive sealed bidding are defined

§ 2.2-4303Contract Formation and Administration.

Adds that goods, services other than professional services, and insurance may be procured by competitive sealed bidding or competitive negotiation.

§ 2.2-4303.1.Architectural and professional engineering term contracting; limitations.

Adds transportation district commissions to the exception.

§ 2.2-4304. Joint and cooperative procurement.

Adds school division within such locality

Adds the fee for any single project shall not exceed $150,000

§ 2.2-4304. Joint and cooperative procurement

Addsthe Virginia Sheriffs’ Association

§ 2.2-4306- 2.2-4308 Repealed

2.2-4310Discrimination prohibited; participation of small, women-owned, minority-owned, and service disabled veteran-owned business and employment services organizations.

Addsstate agencies to allow for utilization employment services organizations to be credited toward small, women-owned, and minority-owned business contracting and subcontracting goals.

Adds that small businesses have a price preference over noncertified businesses competing for the same contract provided that the bid of the certified small business does not exceed the low bid by more than five percent.

2.2-4336Bid bonds.

Allows for a locality to waive the requirement for prequalification of a bidder with a current Class A contractor license for contracts in excess of $100,000 but less than $300,000, upon written determination made in advance that waiving the requirement is in the best interest of the locality. A locality shall not enter into more than 10 such contracts per year.

§ 2.2-4337Performance and payment bonds.

Allows for a locality to waive the requirement for prequalification of a bidder with a current Class A contractor license for contracts in excess of $100,000 but less than $300,000, upon written determination made in advance that waiving the requirement is in the best interest of the locality. A locality shall not enter into more than 10 such contracts per year.

§ 2.2-4343Exemption from operation of chapter for certain transactions.

Adds the Department of Juvenile Justice in the selection of pre-release and post-incarceration services

§ 2.2-4343Exemption from operation of chapter for certain transactions.

Adds the Virginia Industries for the Blind when procuring components, materials, supplies or services for us in commodities and services furnished to the federal government in connection with its operation as an AbilityOne Program. No public body shall be required to purchase the components, materials, supplies, services or commodities under this exemption.

§ 2.2-4348Exemptions.

Adds payments for services provided under the state plan for medical assistance identified as potentially fraudulent, abusive, or erroneous in accordance with the program established pursuant to § 32.1- 319.1 and delayed until such time as the claim can be validated

§ 2.2-4378-4383New sections that describe the requirements of Construction Management and Design Build contracts