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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>74516</law_id><section_number>23.1-1017</section_number><catch_line>Covered institutions; operational authority; procurement</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>23.1-1018</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="23.1">Institutions of Higher Education; Other Educational and Cultural Institutions</unit><unit label="subtitle" level="2" order_by="1" identifier="III">Management and Financing</unit><unit label="chapter" level="3" order_by="1" identifier="10">Restructured Higher Education Financial and Administrative Operations Act</unit><unit label="article" level="4" order_by="1" identifier="4">Restructured Financial and Administrative Authority; Covered Institutions; Management Agreements</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> Subject to the express provisions of the <span class="dictionary">management agreement</span>, each <span class="dictionary">covered institution</span> may be exempt from the provisions of the Virginia Public Procurement Act (&#xA7; <a class="law" title="Short title; purpose; declaration of intent" href="/2.2-4300/">2.2-4300</a> et seq.), except for &#xA7;&#xA7; <a class="law" title="Action on performance bond" href="/2.2-4340/">2.2-4340</a>, <a class="law" title="Statute of limitations on construction contracts" href="/2.2-4340.1/">2.2-4340.1</a>, <a class="law" title="Statute of limitations on architectural and engineering contracts" href="/2.2-4340.2/">2.2-4340.2</a>, <a class="law" title="Public inspection of certain records" href="/2.2-4342/">2.2-4342</a>, and <a class="law" title="(Effective until July 1, 2027) Disclosure of contributions and gifts during procurement process; civil penalty" href="/2.2-4376.2/">2.2-4376.2</a>, which shall not be construed to require compliance with the prequalification application procedures of subsection B of &#xA7; <a class="law" title="Prequalification generally; prequalification for construction" href="/2.2-4317/">2.2-4317</a>, provided, however, that (i) any deviations from the Virginia Public Procurement Act in the <span class="dictionary">management agreement</span> shall be uniform across all <span class="dictionary">covered institutions</span> and (ii) the <span class="dictionary">governing board</span> of the <span class="dictionary">covered institution</span> shall adopt, and the <span class="dictionary">covered institution</span> shall comply with, policies for the procurement of goods and services, including professional services, that shall (a) be based upon competitive principles; (b) in each instance seek competition to the maximum practical degree; (c) implement a <span class="dictionary">system</span> of competitive negotiation for professional services pursuant to &#xA7;&#xA7; <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="Process for competitive negotiation" href="/2.2-4302.2/">2.2-4302.2</a>; (d) prohibit discrimination in the solicitation and award of <span class="dictionary">contracts</span> on the basis of the bidder&#x2019;s or offeror&#x2019;s race, religion, color, sex, sexual orientation, gender identity, national origin, age, or disability or on any other basis prohibited by state or federal <span class="dictionary">law</span>; (e) incorporate the prompt payment principles of &#xA7;&#xA7; <a class="law" title="Prompt payment of bills by state agencies" href="/2.2-4350/">2.2-4350</a> and <a class="law" title="Payment clauses to be included in contracts" href="/2.2-4354/">2.2-4354</a>; (f) consider the impact on correctional enterprises under &#xA7; <a class="law" title="Purchases by agencies, localities, and certain nonprofit organizations" href="/53.1-47/">53.1-47</a>; and (g) provide that whenever solicitations are made seeking competitive procurement of goods or services, it shall be a priority of the institution to provide for fair and reasonable consideration of small, women-owned, and minority-owned businesses and to promote and encourage a diversity of suppliers. <a id="paragraph-267805" class="section-permalink" href="https://vacode.org/23.1-1017/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> Such policies may (i) provide for consideration of the dollar amount of the intended procurement, the term of the anticipated <span class="dictionary">contract</span>, and the likely extent of competition; (ii) implement a prequalification procedure for contractors or products; and (iii) include provisions for cooperative arrangements with other <span class="dictionary">covered institutions</span>, other public or private educational institutions, or other public or private organizations or entities, including public-private partnerships, public bodies, charitable organizations, health care provider alliances or purchasing organizations or entities, state agencies or institutions of the Commonwealth or the other states, the District of Columbia, the territories, or the United States, and any combination of such organizations and entities. <a id="paragraph-267806" class="section-permalink" href="https://vacode.org/23.1-1017/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> Nothing in this section shall preclude a <span class="dictionary">covered institution</span> from requesting and utilizing the assistance of the Virginia Information Technologies Agency for information technology procurements and <span class="dictionary">covered institutions</span> are encouraged to utilize such assistance. <a id="paragraph-267807" class="section-permalink" href="https://vacode.org/23.1-1017/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> Each <span class="dictionary">covered institution</span> shall post on the Department of General Services&#x2019; central electronic procurement website all Invitations to Bid, Requests for Proposal, sole source award notices, and emergency award notices to ensure visibility and access to the Commonwealth&#x2019;s procurement opportunities on one website. <a id="paragraph-267808" class="section-permalink" href="https://vacode.org/23.1-1017/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> As part of any procurement provisions of the <span class="dictionary">management agreement</span>, the <span class="dictionary">governing board</span> of a <span class="dictionary">covered institution</span> shall identify the public, educational, and operational interests served by any procurement rule that deviates from procurement rules in the Virginia Public Procurement Act (&#xA7; <a class="law" title="Short title; purpose; declaration of intent" href="/2.2-4300/">2.2-4300</a> et seq.). <a id="paragraph-267809" class="section-permalink" href="https://vacode.org/23.1-1017/#E"><i class="fa fa-link"/></a></p></section></text><history>2005, cc. 933, 945, &#xA7; 23-38.110; 2011, c. 332; 2013, c. 583; 2015, cc. 760, 776; 2016, c. 588; 2020, cc. 496, 497, 1137; 2022, cc. 96, 97.</history><metadata></metadata></law>
