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2000 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 11-41 and 11-55 of the Code of Virginia are amended and reenacted as follows:
§ 11-41. Methods of procurement.
A. All public contracts with nongovernmental contractors for the purchase or lease of goods, or for the purchase of services, insurance, or construction, shall be awarded after competitive sealed bidding, or competitive negotiation as provided in this section, unless otherwise authorized by law.
B. Professional services shall be procured by competitive negotiation.
C. 1. Upon a determination made in advance by the public body and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, goods, services, or insurance may be procured by competitive negotiation. The writing shall document the basis for this determination.
Upon a written determination made in advance by (i) the Governor or his designee in the case of a procurement by the Commonwealth or by a department, agency or institution thereof or (ii) the local governing body in the case of a procurement by a political subdivision of the Commonwealth, that competitive negotiation is either not practicable or not fiscally advantageous, insurance may be procured through a licensed agent or broker selected in the manner provided for the procurement of things other than professional services in subdivision 3 b of the definition of "competitive negotiation" in § 11-37. The basis for this determination shall be documented in writing.
2. Construction may be procured only by competitive sealed bidding, except that competitive negotiation may be used in the following instances upon a determination made in advance by the public body and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, which writing shall document the basis for this determination:
a. By the Commonwealth, its departments, agencies and institutions on a fixed price design-build basis or construction management basis under § 11-41.2;
b. By any public body for the alteration, repair, renovation or demolition of buildings when the contract is not expected to cost more than $500,000;
c. By any public body for the construction of highways and any draining, dredging, excavation, grading or similar work upon real property; or
d. As otherwise provided in § 11-41.2:2.
D. Upon a determination in writing that there is only one source practicably available for that which is to be procured, a contract may be negotiated and awarded to that source without competitive sealed bidding or competitive negotiation. The writing shall document the basis for this determination. The public body shall issue a written notice stating that only one source was determined to be practicably available, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. This notice shall be posted in a designated public area or published in a newspaper of general circulation on the day the public body awards or announces its decision to award the contract, whichever occurs first.
E. In case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. The public body shall issue a written notice stating that the contract is being awarded on an emergency basis, and identifying that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. This notice shall be posted in a designated public area or published in a newspaper of general circulation on the day the public body awards or announces its decision to award the contract, whichever occurs first, or as soon thereafter as is practicable.
F. A public body may establish purchase procedures, if adopted in writing, not
requiring competitive sealed bids or competitive negotiation for single or term
contracts for goods and services other than professional services if the
aggregate or the sum of all phases is not expected to exceed $30,000 $50,000;
however, such small purchase procedures shall provide for competition wherever
practicable. Purchases under this subsection that are expected to exceed
$30,000 shall require the written informal solicitation of a minimum of four
bidders or offerors.
G. A public body may establish purchase procedures, if adopted in writing, not requiring competitive negotiation for single or term contracts for professional services if the aggregate or the sum of all phases is not expected to exceed $30,000; however, such small purchase procedures shall provide for competition wherever practicable.
G. H. Any local school board may authorize any of its public schools or its
school division to enter into contracts providing that caps and gowns, photographs, class rings,
yearbooks and graduation announcements will be available for purchase or rental by students, parents,
faculty or other persons using nonpublic money through the use of competitive
negotiation as provided in this chapter; competitive sealed bidding is not
necessarily required for such contracts. The Superintendent of Public
Instruction may provide assistance to public school systems regarding this
chapter and other related laws.
H. I. Upon a determination made in advance by the local governing body and set
forth in writing that the purchase of goods, products or commodities from a public auction sale is in
the best interests of the public, such items may be purchased at the auction.
The writing shall document the basis for this determination.
I. J. Effective until January 1, 2001, procurement of goods, services, or
construction to address computers, software programs, databases, networks,
information systems, firmware, or any other devices which are not compliant
with the "Year 2000" date change shall be deemed emergency procurements under
subsection E.
§ 11-55. Modification of the contract.
A. A public contract may include provisions for modification of the contract
during performance, but no fixed-price contract may be increased by more than
twenty-five percent of the amount of the contract or $10,000 $50,000, whichever
is greater, without the advance written approval of the Governor or his
designee, in the case of state agencies, or the governing body, in the case of
political subdivisions. In no event may the amount of any contract, without
adequate consideration, be increased for any purpose, including, but not
limited to, relief of an offeror from the consequences of an error in its bid
or offer.
B. Nothing in this section shall prevent any public body from placing greater restrictions on contract modifications.