                                 CODE OF VIRGINIA

EXEMPTIONS FROM COMPETITIVE SEALED BIDDING AND COMPETITIVE NEGOTIATION FOR
CERTAIN TRANSACTIONS; LIMITATIONS (§ 2.2-4345)

A. The following public bodies may enter into contracts without competitive
sealed bidding or competitive negotiation:

   1. The Director of the Department of Medical Assistance Services for special
   services provided for eligible recipients pursuant to subsection H of &#xA7;
   32.1-325, provided that the Director has made a determination in advance after
   reasonable notice to the public and set forth in writing that competitive
   sealed bidding or competitive negotiation for such services 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.

   2. 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;
   32.1-276.2 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 sealed bidding or competitive negotiation for
   such services is not fiscally advantageous to the public. The writing shall
   document the basis for this determination. Such agreements and contracts shall
   be based on competitive principles.

   3. The Virginia Code Commission when procuring the services of a publisher,
   pursuant to &#xA7;&#xA7; 30-146 and 30-148, to publish the Code of Virginia or
   the Virginia Administrative Code.

   4. The Virginia Alcoholic Beverage Control Authority for the purchase of
   alcoholic beverages.

   5. The Department for Aging and Rehabilitative Services, 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.

   6. The Department of Health for (a) child restraint devices, pursuant to
   &#xA7; 46.2-1097; (b) health care services with Virginia corporations granted
   tax-exempt status under &#xA7; 501(c)(3) of the Internal Revenue Code and
   operating as clinics for the indigent and uninsured that are organized for the
   delivery of primary health care services 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) contracts with laboratories providing cytology and related services if
   competitive sealed bidding and competitive negotiations are not fiscally
   advantageous to the public to provide quality control as prescribed in writing
   by the Commissioner of Health.

   7. Virginia Correctional Enterprises, when procuring materials, supplies, or
   services 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 contracts under this section.

   8. The Virginia Baseball Stadium Authority for the operation of any facilities
   developed under the provisions of Chapter 58 (&#xA7; 15.2-5800 et seq.) of
   Title 15.2, including contracts or agreements with respect to the sale of
   food, beverages and souvenirs at such facilities.

   9. 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 contracts are based on
   competitive principles.

   10. 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 goods and
   services.

   11. Richmond Eye and Ear Hospital Authority, any authorities created under
   Chapter 53 (&#xA7; 15.2-5300 et seq.) of Title 15.2 and any hospital or health
   center commission created under Chapter 52 (&#xA7; 15.2-5200 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 goods and services.

   12. The Patrick Hospital Authority sealed 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 goods and services.

   13. Public bodies for insurance or electric utility services 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 services by use of
   competitive principles and that the public body has made a determination in
   advance after reasonable notice to the public and set forth in writing that
   competitive sealed bidding and competitive negotiation are not fiscally
   advantageous to the public. The writing shall document the basis for this
   determination.

   14. Public bodies administering public assistance and social services programs
   as defined in &#xA7; 63.2-100, community services boards as defined in &#xA7;
   37.2-100, or any public body purchasing services under the Children&#8217;s
   Services Act (&#xA7; 2.2-5200 et seq.) or the Virginia Juvenile Community
   Crime Control Act (&#xA7; 16.1-309.2 et seq.) for goods or personal services
   for direct use by the recipients of such programs if the procurement is made
   for an individual recipient. Contracts for the bulk procurement of goods or
   services for the use of recipients shall not be exempted from the requirements
   of &#xA7; 2.2-4303.

B. No contract for the construction 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 contract 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
construction shall be let except after competitive sealed bidding or after
competitive negotiation as provided under subsection D of &#xA7; 2.2-4303 or
Chapter 43.1 (&#xA7; 2.2-4378 et seq.). The procedure for the advertising for
bids or for proposals and for letting of the contract shall conform, mutatis
mutandis, to this chapter.

HISTORY: 1982, c. 647, § 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.