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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>54190</law_id><section_number>2.2-4343</section_number><catch_line>Exemption from operation of chapter for certain transactions</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>2.2-3109</reference><reference>2.2-4304</reference><reference>2.2-614.4</reference><reference>22.1-212.2:2</reference><reference>24.2-602</reference><reference>3.2-3006</reference><reference>3.2-3013</reference><reference>30-105</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="2.2">Administration of Government</unit><unit label="subtitle" level="2" order_by="1" identifier="II">Administration of State Government</unit><unit label="part" level="3" order_by="1" identifier="B">Transaction of Public Business</unit><unit label="chapter" level="4" order_by="1" identifier="43">Virginia Public Procurement Act</unit><unit label="article" level="5" order_by="1" identifier="3">Exemptions and Limitations</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> The provisions of this chapter shall not apply to: <a id="paragraph-198908" class="section-permalink" href="https://vacode.org/2.2-4343/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> The Virginia Port Authority in the exercise of any of its powers in accordance with Chapter 10 (&#xA7; <a class="law" title="Authority created" href="/62.1-128/">62.1-128</a> et seq.) of Title 62.1, provided that the Authority implements, by policy or regulation adopted by the Board of Commissioners, procedures to ensure fairness and competitiveness in the procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span> and in the administration of its capital outlay program. This exemption shall be applicable only so long as such policies and procedures meeting the requirements remain in effect. <a id="paragraph-198909" class="section-permalink" href="https://vacode.org/2.2-4343/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> The Virginia Retirement System for selection of <span class="dictionary">services</span> related to the management, purchase or sale of authorized investments, actuarial <span class="dictionary">services</span>, and disability determination <span class="dictionary">services</span>. Selection of these <span class="dictionary">services</span> shall be governed by the standard set forth in &#xA7; <a class="law" title="Board as trustee of funds; investments; standard of care; liability for losses" href="/51.1-124.30/">51.1-124.30</a>. <a id="paragraph-198910" class="section-permalink" href="https://vacode.org/2.2-4343/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="A3" class="indent-1"><p><span class="prefix-number">3.</span> The State Treasurer in the selection of investment management <span class="dictionary">services</span> related to the external management of funds shall be governed by the standard set forth in &#xA7; <a class="law" title="Commonwealth and its political subdivisions as trustee of public funds; standard of care in investing such funds" href="/2.2-4514/">2.2-4514</a>, and shall be subject to competitive guidelines and policies that are set by the Commonwealth Treasury Board and approved by the Department of General <span class="dictionary">Services</span>. <a id="paragraph-198911" class="section-permalink" href="https://vacode.org/2.2-4343/#A3"><i class="fa fa-link"/></a></p></section>
						<section id="A4" class="indent-1"><p><span class="prefix-number">4.</span> The Department of Social <span class="dictionary">Services</span> or local departments of social <span class="dictionary">services</span> for the acquisition of motor vehicles for sale or transfer to Temporary Assistance to Needy Families (TANF) recipients. <a id="paragraph-198912" class="section-permalink" href="https://vacode.org/2.2-4343/#A4"><i class="fa fa-link"/></a></p></section>
						<section id="A5" class="indent-1"><p><span class="prefix-number">5.</span> The College of William and Mary in Virginia, Virginia Commonwealth University, the University of Virginia, and Virginia Polytechnic Institute and State University in the selection of <span class="dictionary">services</span> related to the management and investment of their endowment funds, endowment income, gifts, all other nongeneral fund reserves and balances, or local funds of or held by the respective public institution of higher education pursuant to &#xA7; <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2210/">23.1-2210</a>, <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2306/">23.1-2306</a>, <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2604/">23.1-2604</a>, or <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2803/">23.1-2803</a>. However, selection of these <span class="dictionary">services</span> shall be governed by the Uniform Prudent Management of Institutional Funds Act (&#xA7; <a class="law" title="Definitions" href="/64.2-1100/">64.2-1100</a> et seq.) as required by &#xA7;&#xA7; <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2210/">23.1-2210</a>, <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2306/">23.1-2306</a>, <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2604/">23.1-2604</a>, and <a class="law" title="Investment of endowment funds, endowment income, etc" href="/23.1-2803/">23.1-2803</a>. <a id="paragraph-198913" class="section-permalink" href="https://vacode.org/2.2-4343/#A5"><i class="fa fa-link"/></a></p></section>
						<section id="A6" class="indent-1"><p><span class="prefix-number">6.</span> The Board of the Commonwealth Savers Plan for the selection of <span class="dictionary">services</span> related to the operation and administration of the Plan, including, but not limited to, <span class="dictionary">contracts</span> or agreements for the management, purchase, or sale of authorized investments or actuarial, record keeping, or consulting <span class="dictionary">services</span>. However, such selection shall be governed by the standard set forth in &#xA7; <a class="law" title="Standard of care; investment and administration of the Plan" href="/23.1-706/">23.1-706</a>. <a id="paragraph-198914" class="section-permalink" href="https://vacode.org/2.2-4343/#A6"><i class="fa fa-link"/></a></p></section>
						<section id="A7" class="indent-1"><p><span class="prefix-number">7.</span> Public institutions of higher education for the purchase of items for resale at retail bookstores and similar retail outlets operated by such institutions. However, such purchase procedures shall provide for competition where practicable. <a id="paragraph-198915" class="section-permalink" href="https://vacode.org/2.2-4343/#A7"><i class="fa fa-link"/></a></p></section>
						<section id="A8" class="indent-1"><p><span class="prefix-number">8.</span> The purchase of <span class="dictionary">goods</span> and <span class="dictionary">services</span> by agencies of the legislative branch that may be specifically exempted therefrom by the Chairman of the Committee on Rules of either the House of Delegates or the Senate. Nor shall the <span class="dictionary">contract</span> review provisions of &#xA7; <a class="law" title="Additional powers and duties related to the procurement of information technology" href="/2.2-2012/">2.2-2012</a> apply to such procurements. The exemption shall be in writing and kept on file with the agency&#x2019;s disbursement records. <a id="paragraph-198916" class="section-permalink" href="https://vacode.org/2.2-4343/#A8"><i class="fa fa-link"/></a></p></section>
						<section id="A9" class="indent-1"><p><span class="prefix-number">9.</span> Any town with a population of less than 3,500, except as stipulated in the provisions of &#xA7;&#xA7; <a class="law" title="Competitive procurement by localities on state-aid projects" href="/2.2-4305/">2.2-4305</a>, <a class="law" title="Employment discrimination by contractor prohibited; required contract provisions" href="/2.2-4311/">2.2-4311</a>, <a class="law" title="Use of brand names" href="/2.2-4315/">2.2-4315</a>, <a class="law" title="Withdrawal of bid due to error" href="/2.2-4330/">2.2-4330</a>, <a class="law" title="Retainage on construction contracts" href="/2.2-4333/">2.2-4333</a> through <a class="law" title="Alternative forms of security" href="/2.2-4338/">2.2-4338</a>, <a class="law" title="Permitted contracts with certain religious organizations; purpose; limitations" href="/2.2-4343.1/">2.2-4343.1</a>, and <a class="law" title="Purpose" href="/2.2-4367/">2.2-4367</a> through <a class="law" title="Penalty for violation" href="/2.2-4377/">2.2-4377</a> and Chapter 43.1 (&#xA7; <a class="law" title="Purpose; applicability" href="/2.2-4378/">2.2-4378</a> et seq.). <a id="paragraph-198917" class="section-permalink" href="https://vacode.org/2.2-4343/#A9"><i class="fa fa-link"/></a></p></section>
						<section id="A10" class="indent-1"><p><span class="prefix-number">10.</span> Any county, city or town whose governing body has adopted, by <span class="dictionary">ordinance</span> or resolution, alternative policies and procedures which are (i) based on competitive principles and (ii) generally applicable to procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span> by such governing body and its agencies, except as stipulated in subdivision 12.
				This exemption shall be applicable only so long as such policies and procedures, or other policies and procedures meeting the requirements of &#xA7; <a class="law" title="Short title; purpose; declaration of intent" href="/2.2-4300/">2.2-4300</a>, remain in effect in such county, city or town. Such policies and standards may provide for incentive contracting that offers a contractor whose bid is accepted the opportunity to share in any cost savings realized by the locality when project costs are reduced by such contractor, without affecting project quality, during <span class="dictionary">construction</span> of the project. The fee, if any, charged by the project engineer or architect for determining such cost savings shall be paid as a separate cost and shall not be calculated as part of any cost savings. <a id="paragraph-198918" class="section-permalink" href="https://vacode.org/2.2-4343/#A10"><i class="fa fa-link"/></a></p></section>
						<section id="A11" class="indent-1"><p><span class="prefix-number">11.</span> Any school division whose school board has adopted, by policy or regulation, alternative policies and procedures that are (i) based on competitive principles and (ii) generally applicable to procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span> by the school board, except as stipulated in subdivision 12.
				This exemption shall be applicable only so long as such policies and procedures, or other policies or procedures meeting the requirements of &#xA7; <a class="law" title="Short title; purpose; declaration of intent" href="/2.2-4300/">2.2-4300</a>, remain in effect in such school division. This provision shall not exempt any school division from any centralized purchasing <span class="dictionary">ordinance</span> duly adopted by a local governing body. <a id="paragraph-198919" class="section-permalink" href="https://vacode.org/2.2-4343/#A11"><i class="fa fa-link"/></a></p></section>
						<section id="A12" class="indent-1"><p><span class="prefix-number">12.</span> Notwithstanding the exemptions set forth in subdivisions 9 through 11, the provisions of subsections B, C, and D of &#xA7; <a class="law" title="Methods of procurement" href="/2.2-4303/">2.2-4303</a>, &#xA7;&#xA7; <a class="law" title="Competitive procurement by localities on state-aid projects" href="/2.2-4305/">2.2-4305</a>, <a class="law" title="Employment discrimination by contractor prohibited; required contract provisions" href="/2.2-4311/">2.2-4311</a>, <a class="law" title="Use of brand names" href="/2.2-4315/">2.2-4315</a>, <a class="law" title="Prequalification generally; prequalification for construction" href="/2.2-4317/">2.2-4317</a>, <a class="law" title="Withdrawal of bid due to error" href="/2.2-4330/">2.2-4330</a>, <a class="law" title="Retainage on construction contracts" href="/2.2-4333/">2.2-4333</a> through <a class="law" title="Alternative forms of security" href="/2.2-4338/">2.2-4338</a>, <a class="law" title="Public inspection of certain records" href="/2.2-4342/">2.2-4342</a>, <a class="law" title="Permitted contracts with certain religious organizations; purpose; limitations" href="/2.2-4343.1/">2.2-4343.1</a>, and <a class="law" title="Purpose" href="/2.2-4367/">2.2-4367</a> through <a class="law" title="Penalty for violation" href="/2.2-4377/">2.2-4377</a>, Chapter 43.1 (&#xA7; <a class="law" title="Purpose; applicability" href="/2.2-4378/">2.2-4378</a> et seq.), and &#xA7; <a class="law" title="Debarment; civil penalty" href="/58.1-1902/">58.1-1902</a> shall apply to all counties, cities, and school divisions and to all towns having a population greater than 3,500 in the Commonwealth.
				The method for procurement of <span class="dictionary">professional services</span> through competitive negotiation set forth in &#xA7;&#xA7; <a class="law" title="Process for competitive negotiation" href="/2.2-4302.2/">2.2-4302.2</a>, <a class="law" title="Architectural and professional engineering term contracting; limitations" href="/2.2-4303.1/">2.2-4303.1</a>, and <a class="law" title="Job order contracting; limitations" href="/2.2-4303.2/">2.2-4303.2</a> shall also apply to all counties, cities, and school divisions, and to all towns having a population greater than 3,500, where the cost of the professional service is expected to exceed $80,000 in the aggregate or for the sum of all phases of a <span class="dictionary">contract</span> or project. A school board that makes purchases through its public school foundation or purchases educational technology through its educational technology foundation, either as may be established pursuant to &#xA7; <a class="law" title="Educational technology foundations and public school foundations" href="/22.1-212.2_2/">22.1-212.2:2</a> shall be exempt from the provisions of this chapter, except, relative to such purchases, the school board shall comply with the provisions of &#xA7;&#xA7; <a class="law" title="Employment discrimination by contractor prohibited; required contract provisions" href="/2.2-4311/">2.2-4311</a> and <a class="law" title="Purpose" href="/2.2-4367/">2.2-4367</a> through <a class="law" title="Penalty for violation" href="/2.2-4377/">2.2-4377</a>. <a id="paragraph-198920" class="section-permalink" href="https://vacode.org/2.2-4343/#A12"><i class="fa fa-link"/></a></p></section>
						<section id="A13" class="indent-1"><p><span class="prefix-number">13.</span> A <span class="dictionary">public body</span> that is also a utility operator may purchase services through or participate in <span class="dictionary">contracts</span> awarded by one or more utility operators that are not public bodies for utility marking services as required by the Underground Utility Damage Prevention Act (&#xA7; <a class="law" title="Short title" href="/56-265.14/">56-265.14</a> et seq.). A purchase of services under this subdivision may deviate from the procurement procedures set forth in this chapter upon a determination made in advance by the <span class="dictionary">public body</span> and set forth in writing that competitive <span class="dictionary">sealed</span> bidding is either not practicable or not fiscally advantageous to the public, and the <span class="dictionary">contract</span> is awarded based on competitive principles. <a id="paragraph-198921" class="section-permalink" href="https://vacode.org/2.2-4343/#A13"><i class="fa fa-link"/></a></p></section>
						<section id="A14" class="indent-1"><p><span class="prefix-number">14.</span> Procurement of any <span class="dictionary">construction</span> or planning and design services for <span class="dictionary">construction</span> by a Virginia nonprofit corporation or organization not otherwise specifically exempted when (i) the planning, design or <span class="dictionary">construction</span> is funded by state appropriations of $10,000 or less or (ii) the Virginia nonprofit corporation or organization is obligated to conform to procurement procedures that are established by federal <span class="dictionary">statutes</span> or regulations, whether those federal procedures are in conformance with the provisions of this chapter. <a id="paragraph-198922" class="section-permalink" href="https://vacode.org/2.2-4343/#A14"><i class="fa fa-link"/></a></p></section>
						<section id="A15" class="indent-1"><p><span class="prefix-number">15.</span> Purchases, exchanges, gifts or sales by the Citizens&#x2019; Advisory Council on Furnishing and Interpreting the Executive Mansion. <a id="paragraph-198923" class="section-permalink" href="https://vacode.org/2.2-4343/#A15"><i class="fa fa-link"/></a></p></section>
						<section id="A16" class="indent-1"><p><span class="prefix-number">16.</span> The Department of Corrections in the selection of pre-release and post-incarceration services and the Department of Juvenile Justice in the selection of pre-release and post-commitment services. <a id="paragraph-198924" class="section-permalink" href="https://vacode.org/2.2-4343/#A16"><i class="fa fa-link"/></a></p></section>
						<section id="A17" class="indent-1"><p><span class="prefix-number">17.</span> The University of Virginia Medical Center to the extent provided by subdivision A 3 of &#xA7; <a class="law" title="Medical center management; capital projects; leases of property; procurement" href="/23.1-2213/">23.1-2213</a>. <a id="paragraph-198925" class="section-permalink" href="https://vacode.org/2.2-4343/#A17"><i class="fa fa-link"/></a></p></section>
						<section id="A18" class="indent-1"><p><span class="prefix-number">18.</span> The purchase of <span class="dictionary">goods</span> and services by a local governing body or any authority, board, department, instrumentality, institution, agency or other unit of state government when such purchases are made under a remedial plan established by the Governor pursuant to subsection C of &#xA7; <a class="law" title="Discrimination prohibited; participation of small, women-owned, minority-owned, military family-owned, and service disabled veteran-owned businesses and employment services organizations" href="/2.2-4310/">2.2-4310</a> or by a chief administrative officer of a county, city or town pursuant to &#xA7; <a class="law" title="Participation of small, women-owned, and minority-owned businesses" href="/15.2-965.1/">15.2-965.1</a>. <a id="paragraph-198926" class="section-permalink" href="https://vacode.org/2.2-4343/#A18"><i class="fa fa-link"/></a></p></section>
						<section id="A19" class="indent-1"><p><span class="prefix-number">19.</span> The <span class="dictionary">contract</span> by <span class="dictionary">community services</span> boards or behavioral health authorities with an administrator or management body pursuant to a joint agreement authorized by &#xA7; <a class="law" title="Authority to enter into joint agreements" href="/37.2-512/">37.2-512</a> or <a class="law" title="Authority to enter into joint agreements" href="/37.2-615/">37.2-615</a>. <a id="paragraph-198927" class="section-permalink" href="https://vacode.org/2.2-4343/#A19"><i class="fa fa-link"/></a></p></section>
						<section id="A20" class="indent-1"><p><span class="prefix-number">20.</span> The purchase of Virginia-grown food products for use by a <span class="dictionary">public body</span> where the annual cost of the product is not expected to exceed $100,000, provided that the procurement is accomplished by (i) obtaining written informal solicitation of a minimum of three bidders or <span class="dictionary">offerors</span> if practicable and (ii) including a written statement regarding the basis for awarding the <span class="dictionary">contract</span>. <a id="paragraph-198928" class="section-permalink" href="https://vacode.org/2.2-4343/#A20"><i class="fa fa-link"/></a></p></section>
						<section id="A21" class="indent-1"><p><span class="prefix-number">21.</span> The Virginia Industries for the Blind when procuring components, <span class="dictionary">materials</span>, supplies, or services for use in commodities and services furnished to the federal government in connection with its operation as an AbilityOne Program-qualified nonprofit agency for the blind under the Javits-Wagner-O&#x2019;Day Act, 41 U.S.C. &#xA7;&#xA7; 8501-8506, provided that the procurement is accomplished using procedures that ensure that funds are used as efficiently as practicable. Such procedures shall require documentation of the basis for awarding <span class="dictionary">contracts</span>. Notwithstanding the provisions of &#xA7; <a class="law" title="Purchases from Department for the Blind and Vision Impaired; violation" href="/2.2-1117/">2.2-1117</a>, no <span class="dictionary">public body</span> shall be required to purchase such components, <span class="dictionary">materials</span>, supplies, services, or commodities. <a id="paragraph-198929" class="section-permalink" href="https://vacode.org/2.2-4343/#A21"><i class="fa fa-link"/></a></p></section>
						<section id="A22" class="indent-1"><p><span class="prefix-number">22.</span> The purchase of <span class="dictionary">personal protective equipment</span> for private, nongovernmental entities by the Governor pursuant to subdivision (11) of &#xA7; <a class="law" title="Powers and duties of Governor" href="/44-146.17/">44-146.17</a> during a disaster caused by a communicable disease of public health threat for which a state of emergency has been declared. However, such purchase shall provide for competition where practicable and include a written statement regarding the basis for awarding any <span class="dictionary">contract</span>. As used in this subdivision, &#x201C;<span class="dictionary">personal protective equipment</span>&#x201D; means equipment or supplies worn or employed to minimize exposure to hazards that cause serious workplace injuries and illnesses and may include items such as gloves, safety glasses and shoes, earplugs or earmuffs, hard hats, respirators, coveralls, vests, full body suits, hand sanitizer, plastic shields, or testing kits for the communicable disease of public health threat. <a id="paragraph-198930" class="section-permalink" href="https://vacode.org/2.2-4343/#A22"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> Where a procurement transaction involves the expenditure of federal assistance or <span class="dictionary">contract</span> funds, the receipt of which is conditioned upon compliance with mandatory requirements in federal <span class="dictionary">laws</span> or regulations not in conformance with the provisions of this chapter, a <span class="dictionary">public body</span> may comply with such federal requirements, notwithstanding the provisions of this chapter, only upon the written determination of the Governor, in the case of state agencies, or the governing body, in the case of political subdivisions, that acceptance of the grant or <span class="dictionary">contract</span> funds under the applicable conditions is in the public interest. Such determination shall state the specific provision of this chapter in conflict with the conditions of the grant or <span class="dictionary">contract</span>. <a id="paragraph-198931" class="section-permalink" href="https://vacode.org/2.2-4343/#B"><i class="fa fa-link"/></a></p></section></text><history>1982, c. 647, &#xA7;&#xA7; 11-35, 11-39, 11-40; 1983, c. 593; 1984, cc. 159, 330, 764, &#xA7; 11-40.2; 1985, c. 74; 1986, cc. 149, 212, 559; 1987, c. 583; 1991, c. 645; 1994, cc. 661, 918; 1995, c. 18; 1996, cc. 261, 280, 683, 1019; 1997, cc. 85, 488, 785, 861, 863; 1998, cc. 121, 132; 1999, cc. 230, 248, 735, 910, &#xA7; 11-40.4; 2000, cc. 29, 382, 400, 642, 644, 666, 703; 2001, cc. 392, 409, 736, 753, 774, 844; 2002, cc. 87, 478, 491, 582, 595; 2003, cc. 226, 1008; 2004, cc. 145, 865, 891; 2006, c. 656; 2007, cc. 434, 697; 2008, c. 184; 2009, cc. 737, 767; 2010, c. 694; 2011, c. 23; 2012, cc. 803, 805, 835, 836; 2013, cc. 583, 762, 794; 2015, cc. 760, 776; 2016, cc. 296, 465; 2017, cc. 87, 625, 699, 704; 2018, cc. 31, 463; 2019, c. 427; 2020, cc. 681, 682; 2020, Sp. Sess. I, cc. 17, 38; 2023, cc. 756, 778; 2024, c. 217; 2025, c. 518.</history><metadata></metadata></law>
