Chapter 30 - High Risk IT Solicitations and Contracts

In 2014 the Joint Legislative Audit and Review Commission (JLARC) directed its staff to review the development and management of state contracts. Interest in this topic was prompted by problems that arose from several high profile contracts. JLARC evaluated whether the state's procurement policies ensure that contracts provide good value to the state while also mitigating the risks to agencies and the public. JLARC found that a majority of public contracts deviated from agency expectations across multiple categories, including cost, schedule, and specifications. The study also found that most public contracts for goods and services did not contain incentives to perform the specifications of the contract, or remedies in the case of continued nonperformance.

As a result of the JLARC study, on July 1, 2019, the General Assembly amended the Virginia Public Procurement Act to define "high risk" solicitations and contracts, and the required review and approval processes for all solicitations and contracts that meet the definition of "high risk."

This chapter defines and explains high risk contracting, the Code mandated review process for high risk solicitations and contracts, and how agencies can ensure their "high risk" solicitation or contract fulfills the requirements set forth in the VPPA.