                                 CODE OF VIRGINIA

CONTRACT PRICING ARRANGEMENTS (§ 2.2-4331)

A. Except as prohibited in this section, public contracts may be awarded on a
fixed price or cost reimbursement basis, or on any other basis that is not
prohibited.

B. Except in case of emergency affecting the public health, safety, or welfare,
no public contract shall be awarded on the basis of cost plus a percentage of
cost.

C. The following contract pricing arrangements shall not be prohibited by this
section:

   1. A policy or contract of insurance or prepaid coverage having a premium
   computed on the basis of claims paid or incurred, plus the insurance
   carrier&#8217;s administrative costs and retention stated in whole or part as
   a percentage of such claims; or

   2. A cost plus a percentage of the private investment made by a private entity
   as a basis for the procurement of commercial or financial consulting services
   related to a qualifying transportation facility under the Public-Private
   Transportation Act of 1995 (&#xA7; 33.2-1800 et seq.) or a qualifying project
   under the Public-Private Education Facilities and Infrastructure Act of 2002
   (&#xA7; 56-575.1 et seq.) where the commercial or financial consulting
   services are sought to solicit or to solicit and evaluate proposals for the
   qualifying transportation facility or the qualifying project. As used in this
   section, &#8220;private entity&#8221; and &#8220;qualifying transportation
   facility&#8221; mean the same as those terms are defined in &#xA7; 33.2-1800
   and &#8220;qualifying project&#8221; means the same as that term is defined in
   &#xA7; 56-575.1.

HISTORY: 1982, c. 647, § 11-43; 2001, c. 844; 2013, c. 496.