Transformative Public Procurement Laws on the Horizon in Virginia: An Overview of 2024 Legislative Changes

By Chris Smith, MBA, PMP

Date: 03/22/2024

The 2024 legislative session in Virginia introduced a series of significant changes to the Virginia Public Procurement Act (VPPA), aimed at refining and enhancing the procurement landscape within the state. Here's a summary of the potential law changes stemming from this session that could impact how public procurement is conducted in Virginia:

Enhanced Flexibility in Contract Terms Objections (SB 242/HB 242): These companion bills permit public bodies to solicit objections to contract terms during the proposal submission phase. However, these objections cannot influence the scoring for shortlisting purposes. This change aims to encourage more transparent and fair communication between public bodies and vendors from the outset.

Sustainable Building Practices (HB 151): This legislation expands existing statutes to clearly include schools in the mandate for energy-efficient buildings and incorporates provisions for electric vehicle charging stations. This move underscores Virginia's commitment to environmental sustainability in public construction and procurement.

Mandatory Electronic Bidding (HB 311): By January 1, 2025, all public bodies in Virginia will be required to allow electronic submission of bids and proposals, modernizing the procurement process, reducing paper usage, and increasing accessibility for vendors.

Adjustments in Construction Procurement Thresholds:

Job Order Construction (JOC) Limits Increase (HB 1113): This bill raises the JOC limits, providing more leeway for public bodies to expedite smaller construction projects under a streamlined process.

Increased Small Purchase Threshold for Construction (HB 1116): At the request of VAGP, the small purchase threshold for construction projects is raised to $300,000, enabling faster procurement processes for smaller-scale projects and reducing bureaucratic hurdles.

Technology Equipment Trade-In Agreements (HB 728): This provision allows the state and, with state approval, localities to enter agreements with vendors for technology equipment trade-ins, promoting cost-efficiency and technological upgrades.

Revised Criteria for Construction Management and Design-Build Selections (SB 18/HB 1108): These bills ensure that prior experience with construction management (CM) or design-build (DB) contracts cannot be the sole factor for shortlisting firms, aiming to foster a more competitive and diverse bidding environment.

In-State Bidder Preference (SB 260/HB 1361): These laws introduce a preference mechanism enabling Virginia-based low bidders to match the bids of out-of-state competitors, supporting local businesses and potentially boosting the state's economy.

Establishment of the General Services Board (SB 584): This change transitions oversight of General Services from the Governor to a newly established board, aiming for enhanced governance and accountability.

Small Business Procurement Enhancement Board (HB 1404): This board will institutionalize the Governor's executive orders promoting small business participation in state procurement, striving for a more inclusive and diverse vendor pool.

These potential changes to the VPPA reflect a concerted effort to make procurement processes more transparent, efficient, and inclusive, while also embracing sustainability and innovation. Public procurement officials across Virginia will need to stay informed and prepared to adapt to these changes once they are finalized and enacted.

Some Additional Details on the Senate Bills (SB) & House Bills (HB) and their authors and sponsors for each of them is included below for additional context and information.

The Virginia General Assembly has recently passed several pivotal bills that promise to significantly reshape the public procurement landscape within the Commonwealth of Virginia. As these bills await the Governor's signature, public procurement officials and stakeholders across Virginia are poised to adapt to these forthcoming changes. Here's a brief overview of the ten potential new laws related to public procurement and the Virginia Public Procurement Act (VPPA):

·??SB 242 (McPike) & HB 242 (Bulova): These bills introduce a nuanced approach to the proposal submission process, where public bodies can request objections to contract terms during proposal submission but cannot use these objections for scoring or shortlisting purposes. This change aims to foster clearer communication and fairness in the initial stages of procurement.

·???HB 151 (Helmer): This bill emphasizes environmental stewardship by clarifying that requirements around energy-efficient buildings extend to schools and incorporates provisions for electric vehicle charging stations, reflecting Virginia's commitment to sustainability.

·??HB 311 (Hope): With a deadline set for January 1, 2025, this mandate for electronic bid and proposal submissions signifies a shift towards more accessible, efficient, and environmentally friendly procurement processes.

·??HB 1113 (Carr): The elevation of Job Order Construction (JOC) limits will afford public bodies more flexibility and expedience in addressing smaller-scale construction projects, enhancing responsiveness to infrastructure needs.

·??HB 1116 (Carr): Initiated by VAGP, this bill raises the threshold for small purchase construction projects to $300,000, streamlining processes for smaller projects and potentially reducing administrative overhead.

·??HB 728 (Maldanado): This legislation facilitates technological upgrades by enabling the state (and localities with state approval) to engage in buy-back agreements for trading in technology equipment, promoting both fiscal efficiency and technological advancement.

·???SB 18 (Locke) & HB 1108 (Carr): By revising criteria for selecting short-listed firms in Construction Management and Design-Build projects, these bills aim to broaden competition and fairness, ensuring that prior experience alone does not predetermine selection.

·??SB 260 (DeSteph) & HB 1361 (Feggans): These bills introduce a preference mechanism allowing Virginia-based low bidders to match the bids of out-of-state competitors, a strategy intended to bolster local businesses, expiring in 2027 unless re-enacted.

·?SB 584 (Deeds): The establishment of a General Services Board marks a shift from gubernatorial to board oversight in General Services, potentially impacting procurement governance and accountability.

·???HB 1404 (Ward): This bill aims to enhance opportunities for small businesses in state procurement, aligning with the Governor's executive orders to foster a more inclusive and diverse vendor pool.

As these bills transition into law, public procurement officials in Virginia need to stay informed and proactive in understanding and implementing these changes. The modifications will necessitate updates to procurement policies, training programs, and operational practices, underscoring the need for adaptability and continuous learning within the profession. By embracing these changes, Virginia's procurement officials can look forward to a more efficient, equitable, and progressive procurement environment.

Stay tuned to the VAGP blog at https://vagp.us/blog.php for detailed analyses of each bill post the April 17, 2024 veto session, offering procurement professionals the insights they need to navigate these legislative developments effectively.

About the Author: Chris Smith, MBA, PMP, VCA, VCARM

Chris Smith advocates for transformative change and innovation in global public procurement. With his insightful commentary and rigorous analysis, Chris seeks to challenge entrenched norms and foster a procurement ecosystem marked by transparency, ethical practice, and strategic insight. His dedication to enhancing public procurement resonates through his prolific writings and engagements, aiming to inspire and mobilize a community committed to excellence and ethical stewardship.

For those keen to join this dialogue and contribute to shaping future best practices, Chris invites you to connect and collaborate towards a dynamic, forward-looking procurement landscape.

#AgileProcurement #APICS #APPA #BidManagement #CareerAscent #CareerElevation #CategoryManagement #CertifiedProfessionalInSupplyManagement #CertifiedProfessionalPublicBuyer #CertifiedPublicProcurementOfficer #CertifiedSupplyChainProfessional #CharteredInstituteOfProcurementSupply #CIPS #CollaborativeProcurement #Collaboration #Compliance #ContinuousImprovement #ContractManagement #CPPB #CPPO #CPSD #CPSM #CSCP #DigitalProcurement #eProcurement #Efficiency #EliminateFraudWasteandAbuse #EmployeeDevelopment #EmployeeEngagement #EmployeeRetention #EngageWithEnchantment #EthicalProcurement #FCIPS #FellowOfTheCharteredInstituteOfProcurementSupply #FutureOfProcurement #GlobalProcurement #GovernmentContracts #GovernmentProcurement #GreenProcurement #HRStrategies #IACCM #IFPSM #InclusiveProcurement #Innovation #ISM #Leadership #LeadershipAscent #LeadershipLaunchpad #Leadershipmatters #Leadfromthefront #Leadfromwithin #MagicOfProcurement #MCIPS #MaximizeCompetitioninProcurement #MemberOfTheCharteredInstituteOfProcurementSupply #Missionmatters #NAPCP #NASPO #NCMA #NIGP #OrganizationalHealth #peoplematter #Procurement #ProcurementAnalytics #ProcurementAudit #ProcurementBestPractices #ProcurementCompliance #ProcurementData #ProcurementExcellence #ProcurementInnovation #ProcurementInnovationLab #ProcurementIntelligence #ProcurementLeaders #ProcurementMagic #ProcurementNetwork #ProcurementPioneers #ProcurementPolicy #ProcurementProcess #ProcurementProfessionals #ProcurementSavings #ProcurementSoftware #ProcurementStars #ProcurementStrategy #ProcurementTech #ProcurementToPresident #ProcurementTraining #ProcurementTransformation #ProcurementWizards #PublicProcurement #PublicSectorHeroes #PublicSectorInnovation #PublicSectorProcurement #Purchasing #purposedriven #PurposeDrivenWork #Quality #RecruitandAttactVendors #resultsdriven #resultsmatter #resultsoriented #RetentionStrategies #RiskManagement #ROI #Savings #ServantLeadership #SkyrocketSuccess #SmartProcurement #StakeholderEngagement #StrategicLeadership #StrategicSourcing #SupplierDiversity #SupplyChainManagement #SustainableProcurement #TalentManagement #Tendering #TransparentProcurement #ValueBasedProcurement #VAGP #VCA #VCARM #VCM #VCCO #NASPO #UPPCC #CAPA #VCO #VendorManagement #VPPA #VirginiaPublicProcurementAct

VAGP Legislative Committee

A heartfelt thank you and acknowledgment to the VAGP Legislative Committee for their tireless dedication and meticulous review of each proposed law that could influence and modify the Public Procurement process and the Commonwealth of Virginia's VPPA Laws during every Virginia Legislative Session. The committee's commitment to providing insightful procurement leadership, wisdom, and guidance to the legislative branches of government is invaluable. Their expert consultation, advice, and recommendations to our elected officials in the House, Senate, and Governor's office on these critical legislative proposals are instrumental in shaping effective and beneficial public procurement policies.

Source: VAGP Website: https://vagp.us/legislative_committee

The VAGP Legislative Committee is at the forefront of empowering VAGP members with the most recent and forthcoming legislative insights that impact public purchasing in the Commonwealth of Virginia. By diligently monitoring and interpreting legislative developments, the Committee ensures that VAGP members are well-informed and equipped to navigate the evolving landscape of public procurement. Beyond staying abreast of legislative changes, the Committee is also dedicated to forging strategic alliances with various organizations committed to advocating and upholding the principles of responsible government practices. These partnerships enrich the committee's perspective, enhance its influence, and enable it to champion the cause of transparent and ethical public procurement, ensuring that it remains a cornerstone of good governance in Virginia.

Effective public policy and laws that are clear, straightforward, and easy to interpret play a crucial role in fostering compliance, minimizing opportunities for fraud, waste, and abuse, and establishing a foundation of public trust among various stakeholders. When legislation is well-crafted and transparent, it not only simplifies adherence but also enhances the efficiency and integrity of public procurement processes. This, in turn, contributes to a more accountable and trustworthy government framework where all participants—be it vendors, public entities, or the general populace—can engage with confidence. The establishment of such trust is paramount, as it underpins the collaborative efforts necessary to achieve communal objectives and ensures that public resources are utilized effectively and judiciously for the greater good.

Have VAGP Legislative Committee related Questions? Email them at [email protected]

Acknowledgments: VAGP Legislative Committee Report - March 20, 2024 - Led by Chairwoman Patti Innocenti, CPPB, CPPO, CPP. Patricia Innocenti's extensive years of dedication to VAGP and her leadership within this committee greatly benefit our profession. As detailed in the latest meeting report from March 20, 2024, regarding the VAGP Legislative Committee.

2024 VAGP Legislative Committee Members:

Anthony Hinds MBA, CPPB , Suffolk Public Schools @Beth Dooley, Fairfax Water @Colleen Keener, Prince William County Public Schools Harry Smithson , Old Dominion University @Jennifer Stieffenhofer, Stafford Public Schools @Kisha Allen, Upper Occoquan Service Authority Lisa Russell, NIGP-CPP, CPPB, VCO, VCA , Chesterfield County @Melva Kishpaugh, University of Mary Washington Patricia Innocenti , City of Fairfax Wynndell G. Bishop , City of Alexandria

?

???? Let's Rise to the Top Together! ??

I’m like Leo the Lion—strong, bold, and ready to connect with fellow professional leaders who share my passion, energy, and drive for impactful leadership. Together, we can collaborate, dream big, and aim higher than ever—because there’s always room for everyone at the top!

Let’s dream, think bigger, and shoot for Mars or the moon, knowing that even if we miss, we’ll still find ourselves among the stars! ??

Let’s connect! Send me a request, follow me, or drop me a message—I’d love to hear your thoughts and engage with your ideas. Your comments and DMs truly make my day, and I’m excited to build a meaningful professional relationship with you here on LinkedIn.

Connect here -->: https://www.dhirubhai.net/in/chris-smith-mba/

Carpe Diem—Every Diem! Let’s Go! ???? #LetsConnect #Leadership #DreamBig #Collaboration #ShootForTheStars #UnlimitedPotential