                                 CODE OF VIRGINIA

IMPLEMENTATION OF CERTAIN CAPITAL OUTLAY PROJECTS (§ 2.2-1519)

A. 1. The Central Capital Planning Fund, the State Agency Capital Account, and
the Public Educational Institution Capital Account established pursuant to §
2.2-1520 shall be used to fund capital outlay projects included in the six-year
capital outlay plan enacted into law.

   2. In addition, public educational institutions and state agencies may request
   authority and appropriation to conduct pre-planning for any such project using
   nongeneral fund sources. Such costs may be reimbursed up to the lesser of
   $250,000 or one percent of the project construction costs.

B. A Virginia-based contractor who does not have the same number of years of
comparable experience under construction management or design-build shall not be
penalized for having less comparable experience in construction management or
design-build projects, provided such contractor does have significant experience
in constructing comparable projects under design-bid-build. The procuring entity
shall consider the experience and quality of work that a contractor has done on
projects comparable to the project being procured, whether under construction
management, design-build, or design-bid-build. These factors shall be considered
by the procuring entity in making its decisions in a pre-qualification or a
contractor selection process.

C. If at any time during the detailed planning phase the total cost of a capital
outlay project is estimated to exceed a threshold amount set forth in the
general appropriation act for the required use of value engineering, then value
engineering shall be utilized for such project. Each agency and public
educational institution shall retain documentation of the value engineering
process conducted for any project, including documentation relating to (i)
recommendations offered to the agency or institution, (ii) recommendations
accepted and rejected by the agency or institution, and (iii) any savings to the
agency or institution resulting from the adoption of each recommendation.

D. For capital outlay projects for which an appropriation is made to the State
Agency Capital Account or the Public Educational Institution Capital Account,
after an agency or public educational institution has received authorization to
move to the construction phase of a project, the Director of the Department of
Planning and Budget shall transfer sufficient appropriation from the State
Agency Capital Account or the Public Educational Institution Capital Account, as
appropriate.

E. 1. Prior to an agency or public educational institution awarding a
construction contract for a project, the Director of the Department of General
Services shall review the lowest bid or best proposal for the project. If the
total amount of such bid or proposal, plus previously expended funds and a
reasonable allowance for contingencies, does not exceed 105 percent of the
general fund-supported resources for the project as determined during the
detailed planning phase, the Director of the Department of General Services and
the Director of the Department of Planning and Budget may approve the contract.
If the total amount of such bid or proposal, plus previously expended funds and
a reasonable allowance for contingencies, exceeds 105 percent of the general
fund-supported resources for the project, the Directors shall not approve the
contract unless funding of that portion of such total project cost in excess of
105 percent of the general fund-supported resources allocated to the project is
from nongeneral fund sources such as private funds, gifts, grants, auxiliary
funds, or federal funds as appropriate.

   2. If an agency or public educational institution is unable to procure funding
   from nongeneral fund sources for that portion of such total project cost in
   excess of 105 percent of the general fund-supported resources allocated to the
   project, then the agency or institution may reduce the size or scope of the
   project as necessary to remain within 105 percent of the general
   fund-supported resources allocated to the project, provided that (i) it has
   completed a value engineering review by or in collaboration with the
   Department of General Services, (ii) it has provided a written, detailed
   analysis of the proposed reduction to the Governor and to the Chairmen of the
   House Appropriations and Senate Finance Committees, and (iii) the project
   after such reduction in size or scope is substantially similar in quality and
   functionality to the original project.

   3. An agency or public educational institution may request a supplemental
   allocation of general fund-supported resources through the budget process only
   if it submits a written certification to the Chairmen of the House
   Appropriations and Senate Finance Committees, the Director of the Department
   of General Services, the Director of the Department of Planning and Budget,
   and, for public institutions of higher education only, the Executive Director
   of the State Council of Higher Education, which certification (i) states that
   additional funding from nongeneral fund sources as described in subdivision 1
   will be insufficient to pay for the full amount of the project cost that is in
   excess of 105 percent of the general fund-supported resources allocated to the
   project and (ii) provides a detailed analysis and description of the project
   as modified for a reduction in size or scope as described in subdivision 2 as
   well as a justification for why such modifications in size or scope cannot be
   achieved.

   4. Nothing in this section shall preclude an agency or public educational
   institution from providing for re-design or additional value engineering of
   projects or re-bidding or re-submitting of proposals.

   5. No construction contract for a capital outlay project included in the
   six-year capital outlay plan enacted into law shall be awarded unless first
   approved by the Director of the Department of General Services and the
   Director of the Department of Planning and Budget.

F. After a project has been approved by the Director of the Department of
General Services and the Director of the Department of Planning and Budget, the
Director of the Department of Planning and Budget shall transfer to the project
the remaining funds needed for construction from the State Agency Capital
Account or the Public Educational Institution Capital Account, as appropriate.

HISTORY: 2008, Sp. Sess. I, cc. 1, 2.