<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>72767</law_id><section_number>2.2-4345</section_number><catch_line>Exemptions from competitive sealed bidding and competitive negotiation for certain transactions; limitations</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>32.1-276.4</reference><reference>32.1-325</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 following public bodies may enter into <span class="dictionary">contracts</span> without competitive <span class="dictionary">sealed</span> bidding or competitive negotiation: <a id="paragraph-262078" class="section-permalink" href="https://vacode.org/2.2-4345/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> The Director of the Department of Medical Assistance <span class="dictionary">Services</span> for special <span class="dictionary">services</span> provided for eligible recipients pursuant to subsection H of &#xA7; <a class="law" title="Board to submit plan for medical assistance services to U.S. Secretary of Health and Human Services pursuant to federal law; administration of plan; contracts with health care providers" href="/32.1-325/">32.1-325</a>, provided that the Director has made a determination in advance after reasonable notice to the public and set forth in writing that competitive <span class="dictionary">sealed</span> bidding or competitive negotiation for such <span class="dictionary">services</span> is not fiscally advantageous to the public, or would constitute an imminent threat to the health or welfare of such recipients. The writing shall document the basis for this determination. <a id="paragraph-262079" class="section-permalink" href="https://vacode.org/2.2-4345/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> The State Health Commissioner for the compilation, storage, analysis, evaluation, and publication of certain data submitted by health care providers and for the development of a methodology to measure the efficiency and productivity of health care providers pursuant to Chapter 7.2 (&#xA7; <a class="law" title="Health care data reporting; purpose" href="/32.1-276.2/">32.1-276.2</a> et seq.) of Title 32.1, if the Commissioner has made a determination in advance, after reasonable notice to the public and set forth in writing, that competitive <span class="dictionary">sealed</span> bidding or competitive negotiation for such <span class="dictionary">services</span> is not fiscally advantageous to the public. The writing shall document the basis for this determination. Such agreements and <span class="dictionary">contracts</span> shall be based on competitive principles. <a id="paragraph-262080" class="section-permalink" href="https://vacode.org/2.2-4345/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="A3" class="indent-1"><p><span class="prefix-number">3.</span> The Virginia Code Commission when procuring the <span class="dictionary">services</span> of a publisher, pursuant to &#xA7;&#xA7; <a class="law" title="Publication of Code of Virginia, Administrative Code, and Register of Regulations; authority regarding type and form" href="/30-146/">30-146</a> and <a class="law" title="Codification of session laws" href="/30-148/">30-148</a>, to publish the Code of Virginia or the Virginia Administrative Code. <a id="paragraph-262081" class="section-permalink" href="https://vacode.org/2.2-4345/#A3"><i class="fa fa-link"/></a></p></section>
						<section id="A4" class="indent-1"><p><span class="prefix-number">4.</span> The Virginia Alcoholic Beverage Control Authority for the purchase of alcoholic beverages. <a id="paragraph-262082" class="section-permalink" href="https://vacode.org/2.2-4345/#A4"><i class="fa fa-link"/></a></p></section>
						<section id="A5" class="indent-1"><p><span class="prefix-number">5.</span> The Department for Aging and Rehabilitative <span class="dictionary">Services</span>, for the administration of elder rights programs, with (i) nonprofit Virginia corporations granted tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code with statewide experience in Virginia in conducting a state long-term care ombudsman program or (ii) designated area agencies on aging. <a id="paragraph-262083" class="section-permalink" href="https://vacode.org/2.2-4345/#A5"><i class="fa fa-link"/></a></p></section>
						<section id="A6" class="indent-1"><p><span class="prefix-number">6.</span> The Department of Health for (a) child restraint devices, pursuant to &#xA7; <a class="law" title="Child restraint devices; special fund created" href="/46.2-1097/">46.2-1097</a>; (b) health care <span class="dictionary">services</span> with Virginia corporations granted tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code and operating as clinics for the <span class="dictionary">indigent</span> and uninsured that are organized for the delivery of primary health care <span class="dictionary">services</span> in a community (i) as federally qualified health centers designated by the Health Care Financing Administration or (ii) at a reduced or sliding fee scale or without charge; or (c) <span class="dictionary">contracts</span> with laboratories providing cytology and related <span class="dictionary">services</span> if competitive <span class="dictionary">sealed</span> bidding and competitive negotiations are not fiscally advantageous to the public to provide quality control as prescribed in writing by the Commissioner of Health. <a id="paragraph-262084" class="section-permalink" href="https://vacode.org/2.2-4345/#A6"><i class="fa fa-link"/></a></p></section>
						<section id="A7" class="indent-1"><p><span class="prefix-number">7.</span> Virginia Correctional Enterprises, when procuring <span class="dictionary">materials</span>, supplies, or <span class="dictionary">services</span> for use in and support of its production facilities, provided that the procurement is accomplished using procedures that ensure as efficient use of funds as practicable and, at a minimum, includes obtaining telephone quotations. Such procedures shall require documentation of the basis for awarding <span class="dictionary">contracts</span> under this section. <a id="paragraph-262085" class="section-permalink" href="https://vacode.org/2.2-4345/#A7"><i class="fa fa-link"/></a></p></section>
						<section id="A8" class="indent-1"><p><span class="prefix-number">8.</span> The Virginia Baseball Stadium Authority for the operation of any facilities developed under the provisions of Chapter 58 (&#xA7; <a class="law" title="Definitions; professional baseball games; consent for construction" href="/15.2-5800/">15.2-5800</a> et seq.) of Title 15.2, including <span class="dictionary">contracts</span> or agreements with respect to the sale of food, beverages and souvenirs at such facilities. <a id="paragraph-262086" class="section-permalink" href="https://vacode.org/2.2-4345/#A8"><i class="fa fa-link"/></a></p></section>
						<section id="A9" class="indent-1"><p><span class="prefix-number">9.</span> With the consent of the Governor, the Jamestown-Yorktown Foundation for the promotion of tourism through marketing with private entities provided a demonstrable cost savings, as reviewed by the Secretary of Education, can be realized by the Foundation and such agreements or <span class="dictionary">contracts</span> are based on competitive principles. <a id="paragraph-262087" class="section-permalink" href="https://vacode.org/2.2-4345/#A9"><i class="fa fa-link"/></a></p></section>
						<section id="A10" class="indent-1"><p><span class="prefix-number">10.</span> The Chesapeake Hospital Authority in the exercise of any power conferred under Chapter 271, as amended, of the Acts of Assembly of 1966, provided that it does not discriminate against any person on the basis of race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, or disability in the procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span>. <a id="paragraph-262088" class="section-permalink" href="https://vacode.org/2.2-4345/#A10"><i class="fa fa-link"/></a></p></section>
						<section id="A11" class="indent-1"><p><span class="prefix-number">11.</span> Richmond Eye and Ear Hospital Authority, any authorities created under Chapter 53 (&#xA7; <a class="law" title="Finding and declaration of necessity" href="/15.2-5300/">15.2-5300</a> et seq.) of Title 15.2 and any hospital or health center commission created under Chapter 52 (&#xA7; <a class="law" title="Creation of commission" href="/15.2-5200/">15.2-5200</a> et seq.) of Title 15.2 in the exercise of any power conferred under their respective authorizing legislation, provided that these entities shall not discriminate against any person on the basis of race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, or disability in the procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span>. <a id="paragraph-262089" class="section-permalink" href="https://vacode.org/2.2-4345/#A11"><i class="fa fa-link"/></a></p></section>
						<section id="A12" class="indent-1"><p><span class="prefix-number">12.</span> The Patrick Hospital Authority <span class="dictionary">sealed</span> in the exercise of any power conferred under the Acts of Assembly of 2000, provided that it does not discriminate against any person on the basis of race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, or disability in the procurement of <span class="dictionary">goods</span> and <span class="dictionary">services</span>. <a id="paragraph-262090" class="section-permalink" href="https://vacode.org/2.2-4345/#A12"><i class="fa fa-link"/></a></p></section>
						<section id="A13" class="indent-1"><p><span class="prefix-number">13.</span> Public bodies for insurance or electric utility <span class="dictionary">services</span> if purchased through an association of which it is a member if the association was formed and is maintained for the purpose of promoting the interest and welfare of and developing close relationships with similar public bodies, provided that such association has procured the insurance or electric utility <span class="dictionary">services</span> by use of competitive principles and that the <span class="dictionary">public body</span> has made a determination in advance after reasonable notice to the public and set forth in writing that competitive <span class="dictionary">sealed</span> bidding and competitive negotiation are not fiscally advantageous to the public. The writing shall document the basis for this determination. <a id="paragraph-262091" class="section-permalink" href="https://vacode.org/2.2-4345/#A13"><i class="fa fa-link"/></a></p></section>
						<section id="A14" class="indent-1"><p><span class="prefix-number">14.</span> Public bodies administering public assistance and social services programs as defined in &#xA7; <a class="law" title="Definitions" href="/63.2-100/">63.2-100</a>, <span class="dictionary">community services</span> boards as defined in &#xA7; <a class="law" title="Definitions" href="/37.2-100/">37.2-100</a>, or any <span class="dictionary">public body</span> purchasing services under the Children&#x2019;s Services Act (&#xA7; <a class="law" title="Intent and purpose; definitions" href="/2.2-5200/">2.2-5200</a> et seq.) or the Virginia Juvenile Community <span class="dictionary">Crime</span> Control Act (&#xA7; <a class="law" title="Purpose and intent" href="/16.1-309.2/">16.1-309.2</a> et seq.) for <span class="dictionary">goods</span> or personal services for direct use by the recipients of such programs if the procurement is made for an individual recipient. <span class="dictionary">Contracts</span> for the bulk procurement of <span class="dictionary">goods</span> or services for the use of recipients shall not be exempted from the requirements of &#xA7; <a class="law" title="Methods of procurement" href="/2.2-4303/">2.2-4303</a>. <a id="paragraph-262092" class="section-permalink" href="https://vacode.org/2.2-4345/#A14"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> No <span class="dictionary">contract</span> for the <span class="dictionary">construction</span> of any building or for an addition to or improvement of an existing building by any local government or subdivision of local government for which state funds of not more than $50,000 in the aggregate or for the sum of all phases of a <span class="dictionary">contract</span> or project either by appropriation, grant-in-aid or loan, are used or are to be used for all or part of the cost of <span class="dictionary">construction</span> shall be let except after competitive <span class="dictionary">sealed</span> bidding or after competitive negotiation as provided under subsection D of &#xA7; <a class="law" title="Methods of procurement" href="/2.2-4303/">2.2-4303</a> or Chapter 43.1 (&#xA7; <a class="law" title="Purpose; applicability" href="/2.2-4378/">2.2-4378</a> et seq.). The procedure for the advertising for bids or for proposals and for letting of the <span class="dictionary">contract</span> shall conform, <span class="dictionary">mutatis mutandis</span>, to this chapter. <a id="paragraph-262093" class="section-permalink" href="https://vacode.org/2.2-4345/#B"><i class="fa fa-link"/></a></p></section></text><history>1982, c. 647, &#xA7; 11-45; 1984, c. 764; 1987, cc. 194, 248; 1989, c. 235; 1990, c. 395; 1991, c. 175; 1993, cc. 110, 505, 638, 971; 1996, cc. 145, 897, 902, 950, 1038; 1998, cc. 222, 619, 666, 697, 791; 1999, cc. 160, 194, 1021, 1024; 2000, cc. 242, 696, 927; 2001, c. 844; 2002, cc. 87, 478, 747; 2006, c. 658; 2011, c. 538; 2012, cc. 803, 835; 2015, cc. 38, 366, 730; 2017, cc. 699, 704; 2023, cc. 756, 778.</history><metadata></metadata></law>
