FAQs - Regarding Changes to Procurement Laws

The 2012 legislative session made no changes that affected VITA‘s policies or the IT Procurement Manual; however, there were legislative changes affecting certain areas of Commonwealth procurement.  

HB 33, same as SB 242 

  • Adds 2.2-4321.2 
  • Requires state agencies to ensure that no bid specifications, project agreements, etc. relating to the operation, construction, maintenance, or repair of any public facility of public works shall (i) require or prohibit bidders, offerors, contractors, or subcontractors to enter into or adhere to agreements with labor organizations, on the same or related projects, or (ii) discriminate against bidders, offerors, contractors, subcontractors, or operators for becoming or refusing to become or remain signatories or otherwise to adhere to agreements with labor organizations, on the same or other related public works projects.   

 HB 945 

  • Raises to $350,000 the contract amount for which performance/payment bonds are required on transportation-related projects. 
  • For projects > $250,000 but < than $350,000, the payment/performance bond can only be waived if the bid shows that the surety company has declined contractor’s application for a bid bond.   
  • Requires establishment of a prequalification program, pursuant to DOT’s DRM’s self-bonding program. 
  • Provides that bidders for transportation-related construction projects that are > $250,000 but < $350,000 who have submitted evidence of a bid bond denial shall participate in the prequalification program.  
  • Requires VDOT to report by 12/1 of each year to the GA (i) the number of companies unable to procure a bid bond, (ii) the number of waivers granted, and (iii) the number of companies that were enrolled in any DOT Division of Risk Management self-bonding program for Department projects.  

SB 523 

  • Provides for DMBE to certify employment service organizations.  
  • Under the bill, "employment services organization" is defined as an organization that provides community-based employment services to individuals with disabilities that is an approved Commission on Accreditation of Rehabilitation Facilities (CARF) accredited vendor of the Department of Rehabilitative Services.  

 SB 539 

  • Authorizes, subject to available appropriation, any public body to use forward pricing mechanisms for budget risk reduction.  
  • Forward pricing mechanisms are contracts that obligate the public body to buy/sell a specified quantity of energy at a future date at a set price or provide the option to buy or sell the contract.  
  • Forward pricing mechanism transactions may be made only if certain requirements are met.    

Budget Language – Higher Education – § 4-9.03 Level II Authority 

  • Level II institutions of higher education shall be allowed to enter into negotiations for additional operational authority for a third and separate functional area provided they have successfully completed at least 3 years of effectiveness and efficiencies operating under such authority granted by an original MOU; and, successfully renewed an additional MOU for a 5-year term for each of the original two areas. 
  • The institutions shall meet all criteria and follow policies for negotiating and establishing a MOU with COVA as provided in § 2.0 (Information Technology), § 3.0 (Procurement), and § 4.0 (Capital Outlay) of Chapter 824 and 829 of the 2008 Acts of Assembly."