30.1 High Risk Contracts, Defined
30.1.1 Determining “Cost” VS. “Spend”
2.2-4303.01(A) specifies that the dollar threshold for determining whether a solicitation or contract meets the definition of “high-risk” is based on the projected total cost of the procurement. A solicitation or contract is considered “high-risk” if it has an anticipated cost of over $10 million dollars, or over $5 million dollars and meets one of the criteria outlined in § 2.2-4303.01(A).
Pre-solicitation market research and input from industry subject matter experts can help estimate possible “cost.” This should be the total cost of ownership. Total cost should be calculated to include the total value of the acquisition. This includes the purchase price, installation, maintenance for all of the expected years of the contract, and so on. High-risk review requirements will be triggered if the “cost” exceeds the high-risk dollar threshold. IT solicitations and contracts that meet the definition of “high-risk” will need to be reviewed by VITA and the OAG.
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