Compliance Analysis Overview

DEPARTMENT OF GENERAL SERVICES DIRFCTIVE NO. 16 {Amended June 29, 2016)

BANNING OPEN CARRYING OF FIREARMS

Purpose

Applicability

Policy

To imptement Executive Order 50 and to disseminate information on open-carry firearms guidance in premises owned, leased or controlled by executive branch agencies.

This Directive applies to all “State Offices,” meaning buildings owned, leased or controlled by or for an executive branch agency, including supporting buildings. “Executive branch agency” includes any administrative unit of State government in the executive branch, including any department, institution, commission, board, council, authority or other body, however designated.

This prohibition does not apply to law enforcement officers {including retired law enforcement officers certified pursuant to Va. Code § 18.2- 308.016), authorized security personnel, or military personnel, when such individuals are authorized to carry a firearm in accordance with their duties, and when they are carrying the firearm within that authority. !t also does not apply to State employees where the employee's position requires carrying a firearm.

This prohibition also does not apply to hunters who are in compliance with Department of Game and inland Fisheries’ Hunting and Trapping Regulations regarding allowable firearms, public hunting lands, and hunting license requirements, lodges and cabins owned by the Commonwealth and used solely by the public for recreational Facilities; any buildings which serve as living quarters for Commonwealth employees; ov any buildings at a rest area on an interstate highway.

In accordance with EOSO, the open carrying of firearms in or on State Offices is prohibited. Entry upon a State Office in violation of this prohibition is expressly forbidden.

In leased State Offices with space open to others, this prohibition shall apply when that space is used exclusively for functions or activities sponsored by the Executive branch agency's tenants while such functions are taking place.

This policy is intended to be consistent with Virginia Department of Human Resource Management Policy 1.80 - Workplace Violence, which Prohibits State employees from possessing, brandishing, or using a weapon that is not required by the employee's position while on State premises or engaged in State business.

Required Lease Term All leases entered into where an Executive branch agency is the lessor shall contain a prohibition on open-carry firearms consistent with this directive. All leases entered into for the benefit of an Executive branch agency shall contain this prohibition to indicate the jessor’s acknowledgment.

Signs Signs shall be posted in all State Offices as may be required. Signs shall be of a design and size approved by the Department of General Services. Agencies shall be responsible for obtaining signage design from the Department and for posting of the signs.

Enforcement Agencies shall be responsible for enforcing this directive within the State Offices assigned to the agency.

Exemptions This Directive does not apply a State institution of higher education if the institution has implemented its own policies or regulations governing firearms.

The Governor or his designee may otherwise grant exemptions from the requirements of this Directive. To qualify for an exemption, the applying executive branch agency must show that an alternative policy, consistent with the Commonweatth’s policy against firearms in State Offices, is appropriate.

Effective Date November 15, 2015

Amended Date June 29, 2016

Authority EQ 50 (McAuliffe 2015); Va. Code § 2.2-1100{B), Va. Code § 2.2-

1Q2(A)(1)

Approved:

• 03-aNe Christopher Beschler Date Oirector, Pepartment of General Services

DEPARTMENT OF GENERAL SERVICES DIRFCTIVE NO. 16 {Amended June 29, 2016)

BANNING OPEN CARRYING OF FIREARMS

Purpose

Applicability

Policy

To implement Executive Order 50 and disseminate open-carry firearms guidance in premises owned, leased, or controlled by executive branch agencies.

This Directive applies to all “State Offices,” meaning buildings owned, leased or controlled by or for an executive branch agency, including supporting buildings. “Executive branch agency” includes any administrative unit of State government in the executive branch, including any department, institution, commission, board, council, authority or other body, however designated.

This prohibition does not apply to law enforcement officers {including retired law enforcement officers certified pursuant to Va. Code § 18.2- 308.016), authorized security personnel, or military personnel, when such individuals are authorized to carry a firearm in accordance with their duties, and when they are carrying the firearm within that authority. !t also does not apply to State employees where the employee's position requires carrying a firearm.

This prohibition does not apply to hunters complying with Department of Game and Inland Fisheries’ regulations on firearms, public hunting lands, licenses, lodges, cabins used solely for recreation, employee living quarters, or buildings at interstate rest areas.

In accordance with EOSO, open carrying of firearms in or on State Offices is prohibited. Entry in violation of this prohibition is expressly forbidden.

In leased State Offices with space open to others, this prohibition shall apply when that space is used exclusively for functions or activities sponsored by the Executive branch agency's tenants while such functions are taking place.

This policy is intended to be consistent with Virginia Department of Human Resource Management Policy 1.80 - Workplace Violence, which Prohibits State employees from possessing, brandishing, or using a weapon that is not required by the employee's position while on State premises or engaged in State business.

Required Lease Term: All leases where an Executive branch agency is lessor shall include a prohibition on open-carry firearms consistent with this directive. Leases for the benefit of an agency shall include this prohibition to acknowledge the jessor’s acknowledgment.

Signs shall be posted in all State Offices as required, of a design and size approved by the Department of General Services. Agencies are responsible for obtaining designs and posting signs.

Enforcement agencies are responsible for enforcing this directive within their assigned State Offices.

Exemptions: This Directive does not apply to State higher education institutions that have their own firearm policies or regulations.

The Governor or designee may grant exemptions if the agency demonstrates an alternative policy consistent with the Commonwealth’s policy against firearms in State Offices.

Effective Date November 15, 2015

Amended Date June 29, 2016

Authority: EQ 50 (McAuliffe 2015); Va. Code §§ 2.2-1100(B), 2.2-

1Q2(A)(1)

Approved:

• 03-aNe Christopher Beschler Date Oirector, Pepartment of General Services

Smoking Ban in State Offices and Vehicles

In accordance with Executive Order (EO) 41 Banning Smoking in State Offices and Vehicles, with the exception of correctional facilities and mental health facilities delineated in EO 41, following are the guidelines for smoking in facilities occupied or operated by executive branch agencies and institutions effective January 1, 2007 (amended July 22, 2008). EO 41 authorizes agency heads and heads of state institutions, including institutions of higher education, to set additional, appropriate guidelines for smoking outside on state-owned property, including appropriate signage.

Having consulted with the Commissioner of Health, with the exception of those facilities delineated in EO 41, the following guidance shall be used by agency heads and heads of state institutions, including institutions of higher education, to establish non-smoking guidelines for those properties included within EO 41:

• Smoking is banned in all state facilities occupied or operated by executive branch agencies and institutions, including institutions of higher education.
• These smoking guidelines apply to all persons in state facilities occupied or operated by executive branch agencies and institutions, including institutions of higher education.
• Smoking is banned inside all state facilities including parking garages, covered walkways, temporary enclosed structures, trailers, and tents as well as structures placed on state-owned property by contractors or vendors.

The owner and/or property manager of each affected facility shall post no-smoking signs in each facility and at parking garage entrances, vestibules and lobbies, loading docks and similar entryways where persons enter and exit a facility.

Smoking is permitted outdoors on state property grounds, plazas, sidewalks, malls and similar open pedestrian-ways provided smokers are 25 feet or more in distance away from an entrance or exit of any facility, including parking garages. Health care facilities may prohibit smoking outdoors beyond the 25-foot limit.

Smoking outdoors shall be in accordance with published guidelines established by the agency head or head of state institution, including institutions of higher education, of the facility or agency within the facility. Such guidelines shall include at a minimum that:

• The owner and/or property manager of each affected facility shall provide an ash urn at outside locations (25 feet or more from entry/exit ways) to aid smokers in disposing of smoking materials.
• Smokers shall use ash urns to dispose of their smoking material waste and shall not litter state-owned property with smoking material waste.
• Smoking is banned inside all state-owned vehicles and rental vehicles obtained from the Department of General Services’ rental car contract.

Employee violations of EO 41 or smoking restrictions imposed pursuant thereto shall be addressed by their agency in accordance with the Department of Human Resource Management Policy 1.60, Standards of Conduct and the violation shall be considered in the employee performance evaluation.

Smoking Ban in State Offices and Vehicles

Under EO 41, smoking is banned in state offices and vehicles, except correctional and mental health facilities. Effective January 1, 2007 (amended July 22, 2008), agency heads may set additional outdoor smoking guidelines, including signage.

Consulting with the Commissioner of Health, agency heads and institution leaders shall establish non-smoking guidelines for EO 41 facilities, excluding those specified in EO 41.

• Smoking is banned in all state facilities operated or occupied by executive agencies and institutions, including higher education.
• These guidelines apply to all persons in state facilities operated or occupied by executive agencies and institutions, including higher education.
• Smoking is banned inside all state facilities, including parking garages, covered walkways, temporary structures, trailers, tents, and vendor structures on state property.

Owners or property managers shall post no-smoking signs at entrances, parking garages, vestibules, lobbies, loading docks, and similar entry points.

Smoking is permitted outdoors on state property grounds, plazas, sidewalks, malls and similar open pedestrian-ways provided smokers are 25 feet or more in distance away from an entrance or exit of any facility, including parking garages. Health care facilities may prohibit smoking outdoors beyond the 25-foot limit.

Outdoor smoking shall follow published guidelines by the agency or institution head, including at minimum that:

• Owners or property managers shall provide ash urns outside (25+ feet from entries/exits) for disposal of smoking materials.
• Smokers shall use ash urns for disposal and not litter state property with smoking waste.
• Smoking is banned inside all state-owned and rental vehicles from DGS rental contracts.

Employee violations of EO 41 or restrictions shall be handled per DHRM Policy 1.60 and considered in performance evaluations.

PROCEDURES FOR USING THE TCO CALCULATOR AND

REQUESTING EXEMPTIONS TO THE REQUIREMENT TO

PURCHASE ELECTRIC VEHICLES

Effective January 1, 2023

Department of General Services Office of Fleet Management Services (OFMS)A. Background Chapter 789 of the 2022 Acts of Assembly requires that, with certain exceptions, all agencies of the Commonwealth use a total cost of ownership (TCO) calculator prior to purchasing or leasing a light-duty vehicle beginning January 1, 2023. The required TCO calculator is located on the DGS/Office of Fleet Management Services’ (OFMS) website (https://dgs.virginia.gov/fleet/) under the Resources tab. For the purpose of this requirement, a light-duty vehicle is defined as a vehicle with a curb weight of less than 14,000 pounds.

The TCO calculator compares the total cost to purchase, own, lease, and operate a light-duty internal combustion-engine (ICE) vehicle versus a comparable electric vehicle (EV). Agencies are required to purchase the less expensive of the two vehicles unless they are granted an exemption from DGS.

B. TCO Calculator Factors The TCO calculator has populated data fields such as the year, make, model and base price of vehicles that are available on state contract and included fillable data fields for vehicles that are not available on state contract. Users are required to enter the anticipated annual number of miles that the vehicle will be driven based on historical rental vehicle mileage data or personal reimbursement mileage data.

The TCO calculator calculates the total cost of ownership of both vehicles using the following factors:

• Depreciation is 60% of the purchase price per industry leaders such as Kelley Blue Book and Edmunds;
• Insurance costs are based on the Department of Treasury/Division of Risk Management CarCare program. Cost is $1 per $100 value;
• Maintenance expenditures are based on OFMS’ last four years of actual costs per ICE vehicle classification. Until the same amount of EV maintenance data is incurred, the EV maintenance cost is 32% of the ICE expenditures, based on guidance from AAA;
• Fuel costs are based on the Commonwealth’s fuel card contract, using the average cost per gallon for ICE vehicles and non-peak average cost of 18 cents per kWh for EVs, multiplied by the annual miles entered by the user;
• Resale proceeds are the remaining 40% of vehicle value after depreciation;
• Ownership is based on seven years for the following reasons: o OFMS capital leases are spread over 84 months o To obtain the highest resale value, OFMS surpluses vehicles at 85,000 miles and prior to the 10-year anniversary and EV battery warranty expiration o 85,000 miles is achieved in seven years at 12,000 annually; and
• Electric Vehicle Supply Equipment (EVSE) – Charger cost is, at a minimum, $6,000* for installation of a networked charger. End users are encouraged to seek a quote from their utility provider for a more accurate cost of installation at their facility;

This TCO calculator may not fully account for all costs of EV ownership. Other factors or costs agencies should consider include:

• Battery Disposal;
• Added expense of on-the-road charging during work hours;
• Expanding the electric or other infrastructure to accommodate multiple electric vehicles;
• Lack of supporting infrastructure in the geographical area where the vehicle will be operated; and
• Charging station redundancy.

If the calculator yields a TCO number for an EV that is lower than that for an ICE vehicle, the overall cost of the EV may still be higher depending on the total cost for these additional factors. If this is the case, agencies should contact DGS to make sure they are fully accounting for all costs associated with an EV.

C. Procedures for Requesting an Exemption

1. For emergency vehicles as defined in Va. Code § 46.2-920 or other vehicles that an agency intends to use in law-enforcement, incident response, or other emergency response vehicles: a. An agency is not required to use the TCO calculator prior to purchasing or leasing such vehicle. However, the agency is required to submit the OFMS-1 form to OFMS prior to purchase or lease.

1. For all other types of vehicles: a. Once an agency has determined a need for a vehicle, the agency’s Agency Transportation Officer (ATO) must use the TCO calculator to compare an ICE vehicle and EV of like kind. b. If the TCO calculator indicates that the EV will have a lower total cost of ownership and the agency would like to seek an exemption from the requirement to buy the EV, the ATO shall select the appropriate exemption(s) from the following list on the TCO calculator and then print and include the TCO form along with the OFMS-1 form that the agency is required to submit to OFMS. Note: The TCO printout is a part of the OFMS-1 form package and the process for the submission of the OFMS-1 form is outlined in the OFMS Fleet Manual.

The exemptions are as follows:

• The EV manufacturing/delivery date is 90 days longer than the ICE vehicle delivery date;
• An EV equivalent to the needed/desired ICE vehicle does not exist or is not available;
• EV and EVSE installation costs exceed budgeted funds;
• The vehicle will be used at least 75 percent of a 24-hour day and thus cannot be charged sufficiently each day;
• The agency lacks permission from the property owner to install the charging station/infrastructure;
• EVSE installation is not conducive to the facility site;
• The vehicle’s anticipated daily driving range exceeds EV capability and/or there is inadequate infrastructure in the geographical area where the vehicle will be operated; or
• The vehicle purchase is paid with grant funds but the cost of the EVSE is not. c. Upon submission of the OFMS-1 form (including the TCO printout and the exemption request form) to OFMS, OFMS will review and approve or deny the exemption request within five business days. * $6,000 minimum costs are based on information published by: Future Energy, Watt Logic and CyberSwitching

PROCEDURES FOR USING THE TCO CALCULATOR AND

REQUESTING EXEMPTIONS TO THE REQUIREMENT TO

PURCHASE ELECTRIC VEHICLES

Effective January 1, 2023

Department of General Services Office of Fleet Management Services (OFMS)A. Background Chapter 789 of the 2022 Acts of Assembly requires that, with certain exceptions, all agencies of the Commonwealth use a total cost of ownership (TCO) calculator prior to purchasing or leasing a light-duty vehicle beginning January 1, 2023. The required TCO calculator is located on the DGS/Office of Fleet Management Services’ (OFMS) website (https://dgs.virginia.gov/fleet/) under the Resources tab. For the purpose of this requirement, a light-duty vehicle is defined as a vehicle with a curb weight of less than 14,000 pounds.

The TCO calculator compares the total cost to purchase, own, lease, and operate a light-duty internal combustion-engine (ICE) vehicle versus a comparable electric vehicle (EV). Agencies are required to purchase the less expensive of the two vehicles unless they are granted an exemption from DGS.

B. TCO Factors: The calculator includes vehicle details and requires users to input anticipated annual miles based on historical rental or reimbursement data.

The calculator computes total ownership costs for both vehicles using specified factors:

• Depreciation is 60% of purchase price per Kelley Blue Book and Edmunds;
• Insurance costs are $1 per $100 value, based on Treasury/Division of Risk Management CarCare;
• Maintenance costs are based on OFMS’ last four years of ICE data; EV maintenance is estimated at 32% of ICE costs until sufficient EV data is available, per AAA.
• Fuel costs are based on the Commonwealth’s fuel card contract: average per gallon for ICE and 18¢/kWh for EVs, multiplied by annual miles entered.
• Resale proceeds are 40% of vehicle value after depreciation;
• Ownership is seven years due to OFMS leasing over 84 months, vehicle surplusing at 85,000 miles or before 10 years, and EV battery warranty expiration; 85,000 miles occurs in seven years at 12,000 annually.
• Electric Vehicle Supply Equipment (EVSE) – Charger cost is, at a minimum, $6,000* for installation of a networked charger. End users are encouraged to seek a quote from their utility provider for a more accurate cost of installation at their facility;

The calculator may omit some EV ownership costs; agencies should consider additional factors:

• Battery Disposal;
• Added expense of on-the-road charging during work hours;
• Expanding infrastructure for multiple EVs;
• Lack of infrastructure in the vehicle’s operating area; and
• Charging station redundancy.

Even if EV TCO is lower, total costs may be higher due to additional factors; agencies should consult DGS to confirm all costs are included.

C. Exemption Request Procedures

1. For emergency vehicles per Va. Code § 46.2-920, agencies are exempt from using the TCO calculator but must submit OFMS-1 before purchase or lease.

1. For other vehicles, the ATO must use the TCO calculator to compare ICE and EV; if EV is cheaper and an exemption is sought, select exemption(s), print TCO, and submit with OFMS-1 as outlined in the Fleet Manual.

Exemptions include:

• EV delivery is 90 days longer than ICE;
• No available EV equivalent for the desired ICE vehicle;
• EV and EVSE costs exceed budget;
• Vehicle used ≥75% of 24 hours, limiting daily charging;
• The agency lacks property owner permission to install the charging station/infrastructure;
• EVSE installation is not conducive to the facility site;
• The vehicle’s expected daily range exceeds EV capacity and/or infrastructure is inadequate in the operation area;
• The vehicle purchase is paid with grant funds but the cost of the EVSE is not. c. Upon submission of the OFMS-1 form (including the TCO printout and the exemption request form) to OFMS, OFMS will review and approve or deny the exemption request within five business days. * $6,000 minimum costs are based on information published by: Future Energy, Watt Logic and CyberSwitching

Office of Fleet Management Services Policies and Procedures Manual

Department of General Services Helping Government Get Down to Business

January 2020Vehicle Management Control Center (VMCC) 1-866-857-6866 Table of Contents Definitions .................................................................................................................. 1 Introduction ................................................................................................................ 2 A. Authority: .............................................................................................................................. 2 B. Applicability of Policies and Procedures: ............................................................................. 2 C. Responsibilities: .................................................................................................................... 2 Section 1: Vehicle Deployment and Disposal ........................................................... 3 I. Assignment ............................................................................................................. 3 A. Assignment: .......................................................................................................................... 3 B. Assignment Criteria: ............................................................................................................. 3 C. Request for Assignment: ....................................................................................................... 4 D. Request for Confidential Plates............................................................................................. 4 E. Agency Assignment - Informational Updates: ...................................................................... 5 F. Term of Assignment: ............................................................................................................. 5 II. OFMS Leased Fleet Vehicle Utilization ............................................................... 5 A. Request for Exemption to Minimum Mileage Criteria: ........................................................ 5 B. Basis for Exemption to the Minimum Mileage Criteria for OFMS Leased Fleet Vehicle Assignment: ................................................................................................................................ 6 C. Recall of OFMS Leased Fleet Vehicles Due to Underutilization: ........................................ 6 D. Annual Reporting Requirements:.......................................................................................... 6 III. Disposal ................................................................................................................ 7 A. Removal or Recall of OFMS Leased Fleet Vehicles from Agency: ..................................... 7 B. Disposal Criteria for OFMS Leased Fleet Vehicles .............................................................. 7 C. Disposal Process for OFMS Leased Fleet Vehicles .............................................................. 7 Section 2: Safety Program ......................................................................................... 8 I. Driver Eligibility ..................................................................................................... 8 A. Driver's License: ................................................................................................................... 8 B. Monitoring Driver Status: ..................................................................................................... 8 C. Moving Violation Reporting: ................................................................................................ 8 II. Vehicle Use ........................................................................................................... 8 A. General Operation: ................................................................................................................ 8 B. Official Use Only: ................................................................................................................. 8 C. Relatives: ............................................................................................................................... 8 D. Hourly and Part-Time State Employees and Non-State Employees: .................................... 9 E. Hitchhikers and Pets: ............................................................................................................. 9 F. Cellular Phones or Handheld Devices ................................................................................... 9 G. Eating .................................................................................................................................... 9 H. Compliance with Motor Vehicle Laws: ................................................................................ 9 I. Alcoholic Beverages and Drugs: ........................................................................................... 9 J. Use of Personal Vehicles:....................................................................................................... 9 K. Parking and Storage of OFMS Leased Fleet Vehicles: ........................................................ 10 Office of Fleet Management Services - Policies & Procedures Manual Department of General Services – Helping Government Get Down to Business Vehicle Management Control Center (VMCC) 1-866-857-6866 L. Toll Charges: ....................................................................................................................... 10 M. Out-of-State Travel: ............................................................................................................ 10 N. Firearms ............................................................................................................................... 10 O. Driving Under Adverse Weather Conditions: ..................................................................... 10 P. Responsibility for Loss or Damage of Personal or Agency-Owned Property: .................... 11 Q. Loss of OFMS leased fleet vehicle Keys: ........................................................................... 11 R. Seatbelts: ............................................................................................................................. 11 III. OFMS Fleet Vehicle Accidents .........................................................................11 A. Notification of State Police: ................................................................................................ 11 C. Completion of Accident Reports: ........................................................................................ 11 D. Uniform Accident Prevention Committee: ......................................................................... 12 E. Accident Repairs and Cost Responsibility: ......................................................................... 12 IV. Agency Owned Vehicle Accidents ....................................................................13

A.

Notification of State Police ............................................................................................ 13

B.

Accident Notification, Towing, Repair and Cost Responsibility ................................... 13 Section 3: Travel and Commuting ..........................................................................13 I. Commuting ...........................................................................................................13 A. Request for Use of State-Owned Vehicles for Commuting: ............................................... 13 B. Reporting of Vehicles for Commuting: ............................................................................... 14 C. Reimbursement from Commuters: ...................................................................................... 14 D. Types of Home-to-Official Work Station Travel Excluded From These Regulations: ...... 14 E. Vehicle Travel Logs: ........................................................................................................... 14 II. Travel Planning ...................................................................................................15 A. Policies for Virginia’s Short-Term Trip Vehicles ................................................................ 15 B. Reserving a Short-Term Trip Vehicle – Step-By-Step Instructions: ................................... 16 C. Enterprise Rent-A-Car Web Page Instructions: ................................................................... 17 D. Short-Term Trip Vehicles Fuel Cards: (Vehicles owned by Enterprise Rent-A-Car) ......... 17 Section 4: Maintenance and Care of Vehicles .........................................................18 A. General: ............................................................................................................................... 18 B. Routine Maintenance: ......................................................................................................... 18 C. OFMS Leased Fleet Vehicle Servicing: .............................................................................. 18 D. OFMS Leased Fleet Vehicle Repairs: ................................................................................. 18 E. OFMS Leased Fleet Vehicle Up-fit, Modification and Signage: ........................................ 19 F. Responsibility for Cost of Repairs, Maintenance and Fuel: (OFMS leased fleet vehicles) 19 Section 5: Fuel Program ...........................................................................................19 A. Agency Fuel Card Management Policies & Procedures ...................................................... 20 B. Fuel Card Custodian ............................................................................................................. 20 C. Fuel Card Account Custodian .............................................................................................. 20 Section 6: Mileage ..................................................................................................22 Section 7: Payment of Bills .....................................................................................22 Office of Fleet Management Services - Policies & Procedures Manual Department of General Services – Helping Government Get Down to Business Vehicle Management Control Center (VMCC) 1-866-857-6866 Office of Fleet Management Services The Office of Fleet Management Services (OFMS) is an organizational unit within the Director’s Office of the Department of General Services. It establishes fleet management policies and procedures for all vehicles owned by the Commonwealth, to ensure safe, reliable, and cost efficient use. The vehicles are available to state employees and other OFMS customers who conduct the Commonwealth's business.

Definitions Agency Transportation Officer (ATO) – Designated individual(s) in each state agency, college, or institution (hereinafter referred to collectively as “agency”) that oversee vehicle management and reporting, and serve as the link for that agency with

OFMS.

Agency Owned Vehicle - Any state owned vehicle with a title held by the operating agency, that includes but is not limited to sedans, station wagons, minivans, pickup trucks, sport utility vehicles, or vans used primarily for the transportation of the driver and no more than 15 passengers.

Centralized Fleet - Vehicles purchased by the Department of General Services' Office of Fleet Management Services available for use by state agencies on a lease.

Commuting - Use of a state-owned vehicle by an employee for travel between home and official work station, while not in "travel status." DGS Director - The director of the Department of General Services.

Employee - Any individual authorized to operate a state-owned vehicle on behalf of the Commonwealth of Virginia, e.g., part-time, hourly, full-time employees, and any individual under contract to perform services.

Law Enforcement Officer - Defined in Section 9.1-101 of the Code of Virginia and/or in accordance with opinions issued by the Attorney General.

Lease - A contract for the use of a motor vehicle from OFMS for a term of more than 30 days.

Office - The facility/official work station where the employee routinely reports for duty.

Office-In-Home - The employee's home is the official location from which he/she begins and ends work duties and the employee does not report on any routine frequency to an official state facility prior to beginning work or at the conclusion of work. The location of the employee's home must be within the geographic confines of the employee's assigned work area.

OFMS Leased Fleet Vehicle - Any state owned vehicle leased by the Department of General Services to a CoVA agency that includes but is not limited to sedans, station wagons, minivans, pickup trucks, sport utility vehicles, or vans used primarily for the transportation of the driver and no more than 15 passengers.

State Fleet Administrator - The Director of the Office of Fleet Management Services.

Vehicle – Any state-owned passenger-type vehicle registered with the Department of Motor Vehicles that includes but is not limited to sedans, station wagons, minivans, pickup trucks, sport utility vehicles, or vans used primarily for the transportation of the driver and no more than 15 passengers.

Vehicle Management Control Center (VMCC) – Located at the Office of Fleet Management Services. The call center (1-866-857-6866) manages the maintenance activities of all OFMS vehicles and certain agency owned vehicles.

Office of Fleet Management Services - Policies & Procedures Manual 1 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

Introduction

A. Authority: The director of DGS has been given authority and responsibilities by Chapter 11, Title 2.2 1180 of the Code of Virginia:

The Director may promulgate regulations for the purchase, use, storage, maintenance, repair and disposal of all passenger-type vehicles owned by the Commonwealth and assigned to the centralized fleet. By executive order of the Governor, such regulations may extend to all motor vehicles of any type owned by the Commonwealth, or such of them as the Governor may designate.

By Executive Order 89, this authority and responsibility has been extended to all passenger-type vehicles owned by the Commonwealth. The director of DGS has delegated the responsibilities for implementing approved policies and procedures to the State Fleet Administrator.

B. Applicability of Policies and Procedures: These policies and procedures apply to all passenger-type vehicles, owned by the Commonwealth of Virginia.

The Governor may, by Executive Order, extend these policies and procedures to all motor vehicles of any type owned or leased by the Commonwealth, or as the Governor designates.

C. Responsibilities:

1. Department of General Services (DGS) is responsible for developing policies and procedures for purchase, use, storage, maintenance and repair, and disposal of state-owned vehicles.

1. Office of Fleet Management Services (OFMS) is responsible for the management of the centralized fleet and for developing, administering, monitoring, and enforcing all policies and procedures concerning vehicle assignment, utilization, maintenance, repair, and replacement. Also, OFMS oversees accident reporting and citizen inquiries.

1. Agency heads are responsible for monitoring and enforcing, within their agency, all OFMS policies and procedures governing the assignment, use, maintenance and repair of OFMS vehicles. They ensure the timely submission of various OFMS reports and the prompt payment of OFMS bills. Each agency head shall also designate an agency transportation officer to serve as a liaison between their agency and OFMS.

1. Agency Transportation Officers (ATO) are responsible for carrying out the duties and responsibilities as assigned by their Agency Head to comply with the OFMS policies and procedures regarding the management and operation of state-owned vehicles. Such duties may include, but are not limited to, the following:

a. Establishing internal agency procedures to assure vehicles are maintained and operated in accordance with OFMS policies and procedures. Agencies may develop internal policies and procedures to

Office of Fleet Management Services - Policies & Procedures Manual 2 Department of General Services - Serving Government. Serving Virginians. Vehicle Management Control Center (VMCC) 1-866-857-6866

supplement and strengthen OFMS policies and procedures. However, agencies internal policies and procedures may not supersede or change the policies and procedures set forth in this document. b. Orienting employees to assure vehicle drivers are aware of OFMS policies and procedures, and of their individual responsibilities concerning the use of a vehicle; c. Establishing internal agency procedures to assure vehicle drivers possess a valid driver's license and acceptable driving record; d. Keeping OFMS advised of any changes pertaining to vehicle assignment and/or location (applies to OFMS vehicles only); e. Monitoring vehicle utilization to assure optimum use and efficiency; f. Reporting any commuter use of vehicles to OFMS; g. Submitting any requests for exemption to the minimum mileage criteria as set forth in Chapter 11, Section 2.2-1178 of the Code of Virginia and Section III herein, and h. Submitting vehicle reports to OFMS, as requested or required.

5) Vehicle drivers are responsible for reviewing and conforming to all policies and procedures pertaining to the use, maintenance and operation of a vehicle.

Section 1: Vehicle Deployment and Disposal

I. Assignment

A. Assignment: To insure full and proper utilization of vehicles, OFMS leased fleet vehicles are assigned to an agency and managed by the Agency Transportation Officer in coordination with the agency head. While the needs of a specific employee may be used as justification for an additional assignment of a vehicle, the assigned vehicle is to be under the control of the ATO for use throughout the agency.

B. Assignment Criteria: Assignments will be approved only on the basis of one of the following:

1. The vehicle should be driven not less than the annual business mileage (total miles minus commute miles), which is determined in accordance with Chapter 11, Section 2.2-1178 B.1 of the Code of Virginia;

1. A law enforcement officer as defined in Section 9-1-101 of the Code of Virginia;

1. An employee whose job duties require the constant use or continuous availability of specialized equipment which cannot feasibly or economically be either transferred between OFMS leased fleet vehicles or carried in personal vehicles. Such equipment may include medical supplies, a monitoring or testing apparatus or other supplies, equipment or material necessary to perform the agency's mission or function;

1. An employee, on 24-hour call, who must respond to emergencies on a regular or continuing basis where the emergency response is normally to a location other than the employee's official work station;

Office of Fleet Management Services - Policies & Procedures Manual 3 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866

1. The vehicle is used for essential travel related to the transportation of clients or wards of the Commonwealth on a routine basis, or for essential administrative functions of the agency for which the use of a temporary assignment or personal mileage reimbursement is neither feasible nor economical.

C. Request for Assignment: Requests by agencies for assignments are to be submitted to OFMS on the Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle." Complete the form and have it signed by the Agency Transportation Officer (ATO), and the agency head. The form should be submitted at least 90 days prior to the need for the vehicle, when feasible.

D. Request for Confidential Plates 1st time request for confidential plates

1. State agencies with law enforcement authority, ones having units with law enforcement authority, and those who otherwise meet the requirements of §46.2-750 and §46.2-750.1, will send a request for confidential plates to the State Fleet Administrator, requesting confidential tags for these vehicles.
2. A Letter of Authorization from the requesting agency will be addressed to Deputy Director, Law Enforcement Services (LES), Department of Motor Vehicles, on agency letterhead, signed by the current Agency Head, Administrator, Director, etc. This Letter of Authorization establishes the Director OFMS as the person authorized to request confidential tags on behalf of the agency for state agency pool vehicles when these vehicles are to be used for purposes authorized by statute or state policy.

1. For vehicles that qualify under §46.2-750 (A), OFMS will complete the DMV LES LE-11 form and submit to the Law Enforcement Information Services (LEIS) in LES for review and approval.

1. For all other requests, OFMS will provide the agency with the DMV LES LE-15 form for completion.

Form is to be completed, signed by a sworn law enforcement authority and returned to OFMS.

OFMS will submit the form to LEIS for review and approval.

Renewal of current confidential plates

1. All agencies will have previously provided the requested information through the above process.

1. Renewal notices are mailed to the State Fleet Administrator for current confidentially registered Vehicles (pool vehicles) 30 days prior to the registration expiring.
2. A newly completed request form authorized by the State Fleet Administrator is attached to license plate application and is forward to the Law Enforcement Information Services in Law Enforcement Services. Decals are returned to the State Fleet Administrator for distribution.
3. Any changes in vehicle status or changed information will require a documented request prior to any changes being made.

Office of Fleet Management Services - Policies & Procedures Manual 4 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

1. No fee is attached for this process.

E. Agency Assignment - Informational Updates: Agencies are to keep OFMS advised of any changes regarding vehicle assignment, including changes in vehicle principal assignee, location of vehicle, vehicle exemption, commuting, or any factors which may effect vehicle utilization. The Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle" is to be used to advise OFMS of any changes.

F. Term of Assignment: Chapter 11, Section 2.2-1178 limits the assignment of a vehicle to a maximum of two years, except upon review by the State Fleet Administrator as to the continued need for the assignment. Any vehicle failing to achieve the minimum mileage criteria will be reviewed for possible recall. Any changes regarding vehicle use are to be submitted to the fleet administrator in accordance with Section II, D, herein. Vehicle assignments will terminate upon notification by the State Fleet Administrator, unless the agency head determines that the vehicle is no longer needed prior to such notification.

II. OFMS Leased Fleet Vehicle Utilization Chapter 11, Section 2.2-1178 specifies the criteria used in determining the minimum mileage and other conditions necessary for the assignment of an OFMS leased fleet vehicle. The following represent the current annual minimum mileage standards for OFMS leased vehicles: Class Mileage Compact 8,000 Mid-Size 8,500 Full Size 9,000 Mini-Van 11,000 SUV – Small 10,000 SUV – Large 13,000 Pickup – Compact 4x2 8,000 Pickup – Compact 4x4 9,000 Pickup – Full-Size 4x4 10,000 Pickup – Full-Size 4x4 11,000 If mileage or conditions are not demonstrated when requesting a vehicle, the assignment will be denied. If mileage or conditions are not met following an assignment, the vehicle may be recalled at the discretion of the State Fleet Administrator.

A. Request for Exemption to Minimum Mileage Criteria: Exemptions to the minimum mileage specified for assignment or retention of an OFMS leased fleet vehicle may be justified if the principal driver of the vehicle has duty assignments routinely related to public safety and/or response to life threatening situations, or if the vehicle's functional use can be classified as a "special need".

Requests for exemptions should be submitted to the State Fleet Administrator on the Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle." The State Fleet Administrator will advise the Office of Fleet Management Services - Policies & Procedures Manual 5 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 Agency Transportation Officer (ATO) in writing as to the approval/disapproval of the request with a copy to the appropriate agency head. The agency head, if dissatisfied with the decision, may submit a formal appeal to the Director of DGS.

B. Basis for Exemption to the Minimum Mileage Criteria for OFMS Leased Fleet Vehicle Assignment:

1. Exemption based on public safety and response to life-threatening situations: a. Vehicles assigned to law enforcement officers as defined in Section 9.1-101 of the Code of Virginia; state employees who have investigative, enforcement and arrest powers pertaining to criminal laws. b. Vehicles assigned to state employees whose job duties require the constant use or continuous availability of specialized equipment directly related to their routine functions. c. An employee who is on 24-hour call for response to emergencies on a regular or continuing basis, where the emergency response is normally to a location other than the employee's official work station.

1. Exemptions based on "special need" classification: a. Vehicles used for essential travel related to the transportation of clients or wards of the Commonwealth on a routine basis. b. Vehicles used for essential administrative functions of an agency for which it is demonstrated the use of a rental vehicle or personal mileage reimbursement is neither feasible nor economical.

C. Recall of OFMS Leased Fleet Vehicles Due to Underutilization: The State Fleet Administrator will inform the Agency Transportation Officer about the vehicles that failed to meet the minimum mileage criteria. Any vehicles failing to meet the annual minimum mileage criteria may be recalled at the end of the fiscal year.

The agency will have 30 days to submit a response justifying retention for any vehicle recalled as a result of underutilization. The State Fleet Administrator reviews the agency response to the recall notice and advises the agency in writing of a decision.

The agency, in writing to the Director of DGS, may appeal the State Fleet Administrator's decision. Failure by the agency to either return the recalled vehicle or submit justification, within 30 days, as to why the vehicle should not be recalled will result in the initiation of administrative sanctions by OFMS.

D. Annual Reporting Requirements: Each Agency, with the exception of institutions of higher education, will be responsible for submitting an annual report on each non-pool vehicle to the State Fleet Administrator before September 1.

Pursuant to the Virginia Acts of Assembly, Item 4-5.05 paragraph c.2, institutions of higher education “shall be required to report their entire inventory of purchased and leased vehicles including the cost of such to the Director of the Department of General Services by June 30 of each year." Office of Fleet Management Services - Policies & Procedures Manual 6 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

OFMS will annually provide reporting instructions requirements to state agencies and institutions of higher education. State agencies and institutions of higher education are to report to OFMS the requested information.

III. Disposal

A. Removal or Recall of OFMS Leased Fleet Vehicles from Agency: OFMS leased fleet vehicles may be recalled if any of the following occur:

1. The vehicle is not driven and is not exempt from the minimum mileage requirement;
2. Vehicle abuse occurs, which includes but is not limited to, the improper care and maintenance of the vehicle such as excess or the extended filth of vehicle, operating the vehicle without servicing at the specified frequency, and damage to the vehicle caused by willful disregard or improper use.
3. If agency billings are not regularly paid within 45 days of receipt.
4. If the driver of an OFMS leased OFMS leased fleet vehicle is delinquent in the payment of parking tickets, fine or citations on more than two occasions in a six-month period.

B. Disposal Criteria for OFMS Leased Fleet Vehicles OFMS leased fleet vehicles will not be considered for disposal until they qualify for at least one of the following criteria:

1. Vehicle has over 85,000 miles.
2. Vehicle is more than 9 years old.
3. Vehicle has damage or needs repair that is greater than 60% of the NADA value.
4. Director has determined that the overall condition of the vehicle has deteriorated to an “un-repairable” state.
5. Agency has determined that vehicle is no longer needed and is in excess of their needs.

These represent minimum criteria only. Actual replacement mileages may vary at the discretion of OFMS.

C. Disposal Process for OFMS Leased Fleet Vehicles Once a vehicle has met the minimum disposal requirements and the OFMS has notified the agency, the following steps should be followed.

1. All seals, decals, and equipment should be removed from the vehicle.
2. The vehicle should be returned to the Office of Fleet Management Services 2400 West Leigh Street, Richmond VA 23220.
3. If the vehicle is not drivable, the driver should contact the VMCC. The VMCC will make arrangements for the vehicle to be transported.

Office of Fleet Management Services - Policies & Procedures Manual 7 Department of General Services - Serving Government. Serving Virginians. Vehicle Management Control Center (VMCC) 1-866-857-6866

Section 2: Safety Program

I. Driver Eligibility

A. Driver's License: Anyone driving a state-owned vehicle must have a valid driver's license. Vehicle drivers must show the license prior to obtaining any vehicle from OFMS. Agencies must have policies and procedures in place to verify individuals authorized to drive any state-owned vehicle possess a valid driver's license for the vehicle they will be operating.

B. Monitoring Driver Status: A vehicle driver must have a valid driver's license to drive any state-owned vehicle. For temporary assignments or rental vehicle use, an employee must show the transportation officer or supervisor a driver's license before using the vehicle.

All state agencies with long-term vehicle assignments should use the automated voluntary driving record program offered free to public organizations through DMV. This service monitors employee driving records and notifies the employer if the employee receives a DUI or reckless driving conviction or if driving privileges are suspended, revoked or disqualified. This will ensure agencies are aware of serious driving violations for employees that use state-owned vehicles and can help reduce the risk of accidents and liability for the Commonwealth.

C. Moving Violation Reporting: Each employee is required to report any moving violation that occurs in a state-owned vehicle to their supervisor within 3 business days. Failure to do so may result in disciplinary action by their agency and may lose their privilege to operate a state-owned vehicle.

II. Vehicle Use

A. General Operation: Drivers should practice defensive driving by anticipating and observing the actions of other drivers and controlling the vehicle in a manner so as to avoid accidents. When operating the vehicle be aware that averting your eyes from the road may cause an accident. Use ‘best judgment’ when changing climate control settings, using the radio, or accessing other settings on the vehicle’s dashboard. All state drivers should perform a walk around visual inspection of a state vehicle prior to moving. Smoking, to include vaporizers and electronic cigarettes, and the use of other tobacco products are prohibited in any state-owned vehicle.

B. Official Use Only: Drivers shall use state-owned vehicles for official state business only. Drivers guilty of misuse are subject to disciplinary action by their agency and may lose their privilege to operate state-owned vehicle. Vehicles are to be operated in a manner which avoids even the appearance of impropriety.

C. Relatives: Family members of state employees are prohibited to ride in state-owned vehicles unless the family member’s travel is directly related to official state business.

Office of Fleet Management Services - Policies & Procedures Manual 8 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 D. Hourly and Part-Time State Employees and Non-State Employees: An agency may permit students, part-time or hourly employees, and volunteers to state service, to operate or ride in state-owned vehicles if on official business for the agency.

Individuals not employed by the state may accompany state employees operating state-owned vehicles when they have an interest in the purpose of the trip and their presence is directly related to official state business.

Non-state employees may be authorized to operate a state-owned vehicle if they are performing a contracted function for the state and if such contract specifies that the state will provide such vehicle. Non-state employees, when authorized by the agency to operate a state-owned vehicle, are subject to the same rules and regulations as state employees concerning the use and maintenance of the vehicle.

E. Hitchhikers and Pets: Hitchhikers and pets are not allowed to ride in any state-owned vehicle. Service dogs are allowed.

F. Cellular Phones or Handheld Devices Cell phones, blackberries, smart-phones, GPS, or other electrical devices must be operated via a hands-free device or while the vehicle is in park. Any other use such as text messaging or emailing is prohibited while the vehicle is in drive and/or in motion. Use of two-way radios and related mission essential equipment for emergency response vehicles will be governed by agency policy.

G. Eating Eating food is prohibited while driving a state-owned vehicle.

H. Compliance with Motor Vehicle Laws: It is the responsibility of each individual driver to observe all motor vehicle laws of Virginia. Drivers must not knowingly operate vehicles that do not comply with legal requirements.

It is the responsibility of each agency and institution to guarantee employees possess a valid driver's license prior to authorizing use of a state-owned vehicle.

All violations and fines, including parking citations, are the responsibility of the assigned driver at the time of such violation. Abuse of motor vehicle laws by a driver may result in the loss of the privilege of a state-owned vehicle.

I. Alcoholic Beverages and Drugs: Under no circumstances may a state employee operate a vehicle while under the influence of intoxicating beverages, drugs or other substances. Conviction of such offenses will result in the loss of the privilege of a state-owned vehicle. No state vehicle may be used to transport alcoholic beverages unless it is operated by an employee of the Alcoholic Beverage Control Board or other law enforcement personnel in the performance of their official duties.

J. Use of Personal Vehicles: Office of Fleet Management Services - Policies & Procedures Manual 9 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 When authorized by the agency, employees may use personal automobiles in the discharge of official duties within the continental limits of the United States with reimbursement at the rate prescribed by the Travel Regulation.

Agencies should monitor, on an annual basis, the personal mileage reimbursement paid to each employee. Such information may reflect the need for additional OFMS leased fleet vehicle assignments. Agency Transportation Officers should be consulted for agency-specific policies concerning the use of personal vehicles.

K. Parking and Storage of OFMS Leased Fleet Vehicles: Individuals and agencies are responsible for secure and safe storage and parking of vehicles. OFMS leased fleet vehicles shall not be left on residential streets or highways overnight unless it is necessary due to mechanical failure or emergency or if you have received approval from the State Fleet Administrator. When an OFMS leased fleet vehicle is parked on a municipal street it shall be the responsibility of the driver's agency to ensure payment of all parking fees and any parking fines assessed against the vehicle. The vehicle may be parked in a commercial or municipal parking facility provided the driver or the driver's agency pays parking fees. The assigned driver shall be responsible for towing fees resulting from improper parking.

L. Toll Charges: Toll charges incurred during travel in an OFMS leased fleet vehicle are the responsibility of the driver and/or agency. If OFMS receives a toll invoice, it will be added to the appropriate agency’s billing.

M. Out-of-State Travel: Use of state-owned vehicles outside of the Commonwealth of Virginia must be coordinated in advance of the travel with the Agency Transportation Officer. ATO's should take into consideration the mileage and age of the vehicle prior to approving out of state travel. In the event that OFMS has to recover a state-owned vehicle from outside the Commonwealth, the agency assigned the vehicle will be charged for the recovery costs irrespective of fault.

The commercial credit card provided with each OFMS leased fleet vehicle is normally accepted nationwide for the procurement of fuel. Verify credit card acceptance with the commercial establishment prior to authorizing purchasing fuel.

Any vehicle which is routinely domiciled outside of the Commonwealth must be approved by the State Fleet Administrator.

N. Firearms In accordance with Department of Human Resource Management Policy 1.80, no person should possess, brandish or use a weapon that is not required by the individual’s position in a state vehicle.

O. Driving Under Adverse Weather Conditions: Drivers who drive a state-owned vehicle during adverse weather conditions are cautioned to take extreme care to ensure the safety of driver and passengers. Repairs for any damage to the vehicles resulting from their operation during adverse weather conditions will be charged to the using agency if it is found damage was caused by the driver’s negligence.

Office of Fleet Management Services - Policies & Procedures Manual 10 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 P. Responsibility for Loss or Damage of Personal or Agency-Owned Property: OFMS is not responsible or liable for loss or damage to any personal or agency-owned property or belongings transported or left in an OFMS leased fleet vehicle. Waiver of liability includes, but is not limited to water damage of contents caused by misalignment of trunks, doors or faulty weather-stripping resulting in interior exposure to the elements. It is the responsibility of each driver to report defects to the VMCC for correction.

Q. Loss of OFMS Leased Fleet Vehicle Keys: OFMS is not responsible for any costs associated with keys being lost, stolen or locked-in an OFMS leased fleet vehicle. Any costs for duplicate keys, locksmith services, or damage to vehicle resulting from forced entry by a state employee shall be the responsibility of the agency assigned the vehicle. If locked out of the vehicle, contact the VMCC.

R. Seatbelts: Seatbelts must be used by all occupants in accordance with state law.

III. OFMS Fleet Vehicle Accidents A. Notification of State Police: The driver MUST contact the VMCC immediately if involved in an accident/incident. The VMCC will then make arrangements to contact the State Police.

1. Whenever a traffic crash occurs involving a state-owned vehicle, and while the vehicle is at the scene, the VMCC, vehicle operator or a representative of the agency owning or using the vehicle shall immediately report the crash to the Department of State Police, or to the police department of any state college, university or community college. If the crash occurs on state parking facilities, or adjacent highways under the jurisdiction of the Virginia Capitol Police, the crash shall be reported to that agency. All traffic crashes involving licensed state-owned vehicles and crashes involving non-licensed state-owned vehicles where a licensed vehicle is also involved shall be investigated by the Department of State Police, the police department of any state college, university or community college, or by the Virginia Capitol Police, except: a. Crashes in which the vehicle have been removed from the scene unless the crash was the result of a hit and run or personal injury was involved. This does not include moving the vehicle from the highway as a safety precaution. b. Damage to a vehicle is discovered after the fact, other than damage resulting from a hit and run crash.

B. Towing: The VMCC will make arrangements for towing and for the transportation of the driver and any passengers to a safe location.

C. Completion of Accident Reports: The driver is required to complete an "Automobile Incident Report" form on any accident/incident regardless of the amount of property damage or personal injury within 10 business days of the accident. The forms may be Office of Fleet Management Services - Policies & Procedures Manual 11 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 obtained from your Agency Transportation Officer. The original of the "Automobile Incident Report" form should be forwarded directly to the VMCC, vmcc@dgs.virginia.gov, VMCC, 2400 W. Leigh Street, Richmond, Virginia 23220 or fax to 804-545-5020. The VMCC will notify DRM. It is also recommended that the driver send a copy electronically to DRMClaims@trs.virginia.gov.

Drivers are cautioned against accepting responsibility for an accident/incident or discussing it with anyone other than their supervisors, law enforcement officers, or a representative from Treasury/Division of Risk Management.

D. Uniform Accident Prevention Committee: The Uniform Accident Prevention Committee, chaired by a representative of the Virginia State Police, is comprised of representatives from 12 state agencies. This committee reviews, evaluates, and classifies all accidents/incidents involving OFMS leased fleet vehicles.

The State Fleet Administrator will advise the driver's Agency Transportation Officer of the committee's decision regarding responsibility for the accident. The accident will be classified as either preventable or non-preventable by the driver, or as an incident. The decision of the Uniform Accident Prevention Committee is to assist the agency in determining whether they need to take any action against their driver.

The driver, if dissatisfied with the committee's decision, may initiate an appeal. An appeal may take the form of a request to appear before the committee or to be submitted in writing to the State Fleet Administrator for submission to the committee for reconsideration. The committee will consider the additional facts or documentation and will advise the driver's Agency Transportation Officer of their final decision.

If the driver is still dissatisfied with the appeal ruling the next and final step is for the agency head of the agency employing the driver to write to the Superintendent of State Police requesting an appeal before a State Police panel.

E. Accident Repairs and Cost Responsibility: The vehicle should be taken to a shop specified by the VMCC for the securing of estimates and/or repair. Shop personnel will secure the necessary estimates and provide copies to the VMCC.

In those cases where police have identified a third party to the accident and determined the third party to be at fault for the accident, OFMS will assume the costs for the vehicle repairs or loss collection.

In all other cases, including incidents, the leasing agency will be responsible for the costs of repairs/loss.

For 2009 model year vehicles and newer, vehicles which are declared a total loss will be assessed charges in the following manner. The leasing agency will be assessed an amount not to exceed the remaining Capital Charges for the 84 month amortization period. When the wrecked vehicle is sold, OFMS will refund to the leasing agency the residual value of the wreck vehicle. For example, if a vehicle is wrecked after 48 payments have been made, the agency will be assessed an amount equal to 36 months capital charge not the operational charge.

Once the wrecked vehicle is sold the net proceeds to OFMS will be refunded to the agency.

Office of Fleet Management Services - Policies & Procedures Manual 12 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

The agency head, if dissatisfied with the decision of the State Fleet Administrator, may submit a written appeal to the director of DGS. The director will review the appeal and advise the agency head and the State Fleet Administrator of the decision.

Prior to moving a vehicle all state drivers must perform a walk around visual inspection of the state vehicle, if damage is noticed call the VMCC immediately.

IV. Agency Owned Vehicle Accidents

A. Notification of State Police Whenever a traffic crash occurs involving a state-owned vehicle, and while the vehicle is at the scene, the operator or a representative of the agency owning or using the vehicle shall immediately report the crash to the Department of State Police, or to the police department of any state college, university or community college. If the crash occurs on state parking facilities, or adjacent highways under the jurisdiction of the Virginia Capitol Police, the crash shall be reported to that agency. If the crash occurs on Port of Virginia terminal property, the crash may be reported to that agency. All traffic crashes involving licensed state-owned vehicles and crashes involving non-licensed state-owned vehicles where a licensed vehicle is also involved shall be investigated by the Department of State Police, the police department of any state college, university or community college, the Virginia Port Authority or by the Capitol Police, except:

 Crashes in which the vehicle have been removed from the scene unless the crash was the result of a hit and run or personal injury was involved. This does not include moving the vehicle from the highway as a safety precaution.

 Damage to a vehicle is discovered after the fact, other than damage resulting from a hit and run crash.

B. Accident Notification, Towing, Repair and Cost Responsibility In those cases where an accident involves an Agency owned vehicle, refer to agency procedures. In the meantime, the driver is required to complete an "Automobile Loss Notice" form on any accident/incident regardless of the amount of property damage or personal injury within 10 business days of the accident. Submit the notice electronically to DRMClaims@trs.virginia.gov.

Section 3: Travel and Commuting

I. Commuting

A. Request for Use of State-Owned Vehicles for Commuting: As specified in the Code of Virginia, Chapter 11, Section 2.2-1179, state-owned vehicles may not be used for commuting unless such use is required with respect to the duties of the employee and approved by the appropriate agency head and, in the case of OFMS leased fleet vehicles, the State Fleet Administrator. Requests

Office of Fleet Management Services - Policies & Procedures Manual 13 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 for the use of an OFMS leased fleet vehicle for commuting are to be submitted to the Fleet Administrator by the agency on Form OFMS -1.

B. Reporting of Vehicles for Commuting: Each agency, with the exception of institutions of higher education, must report all state-owned vehicles used for commuting to OFMS annually or as requested by the State Fleet Administrator.

C. Reimbursement from Commuters: All employees authorized to use a state-owned vehicle for commuting shall reimburse the state for mileage unless they are law enforcement officers or employees who do not report to an official work station and whose office is in their home. Reimbursement shall be by payroll deduction only. The fee for commuting is to be the rate per mile used by the Department of Accounts (DOA) for personal reimbursement when a government vehicle is not available or other rate as approved by DOA.

In accordance with Code of Virginia, Chapter 11, Section 2.2-1179 and Executive Order 89, Special Directive 3 the Secretary of Public Safety may establish a consistent reimbursement rate for those authorized under stated authority.

The payroll deduction amount will remain constant throughout the year unless:

1. The personal reimbursement rate changes.
2. The employee changes the location of his/her residence or office.
3. Unusual circumstances prevail (extended illnesses, etc.)

Procedures for deducting these moneys from employee pay are established by the state comptroller and contained in the Commonwealth Accounting Policies and Procedures Manual.

D. Types of Home-to-Official Work Station Travel Excluded From These Regulations: The following are the types of home-to-official work station travel which do not require a request for approval to commute:

1. Employees who only travel between home and official work station when in "travel status" as defined in the "state travel regulations";

1. Employees who only travel between home and official work station the evening preceding a trip or the morning following a trip.

E. Vehicle Travel Logs: A vehicle travel log will be required if the agency elects to use "actual days commute'' in lieu of the standard 220 days per year. The log will show the dates and mileage of all home-to-office and office-to-home travel while in commute status and list the vehicle pool number, the driver's name and driver’s license number.

The log shall be summarized on a quarterly basis by the driver and submitted to the Agency Transportation Officer for review. For each vehicle used to commute, the agency shall, on an annual basis, submit to the State Fleet Administrator the one-way commute mileage, the total commute mileage, the number of one-way commute trips and the total payroll deduction.

Office of Fleet Management Services - Policies & Procedures Manual 14 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 II. Travel Planning A. Policies for Virginia’s Short-Term Trip Vehicles The Department of General Services, Office of Fleet Management Services (OFMS) has contracted with Enterprise Rent-A-Car to provide vehicles for state employees to use when conducting state business.

The vehicles owned by Enterprise Rent-A-Car, but available to Virginia state employees are now referred to as Short-Term Trip Vehicles.

1. These automobiles are owned by Enterprise Rent-A-Car, but when state employees operate one of these vehicles under this contract to conduct state business the driver and the vehicle are subject to OFMS Policies and Procedures.

1. Advance reservations should be made with Enterprise Rent-A-Car for the use of Short-Term Trip Vehicles.

1. Arrangements should be made for the pick-up and drop-off of Short-Term Trip Vehicles. If a reservation must be canceled, call the branch the reservation was made for or log on to http://www.enterprise.com to notify Enterprise Rent-A-Car.

1. Liability insurance and Loss Damage Waiver Fee is included in all Virginia agency rental rates. If you have questions regarding your agency’s coverage, please contact DRM.

DRM basic coverage is liability insurance only for additional coverage contract DRM for the details regarding their “LeaseCare” program.

1. To reserve a Short-Term Trip Vehicle state employees must use an Enterprise web-reservation system to reserve a vehicle for pick-up from one of over 200 locations across the Commonwealth.

1. Upon return from your trip, travelers MUST return Short-Term Trip Vehicles with the same amount of fuel as when it was rented to an Enterprise Rent-A-Car location.

1. Damage or breakdowns should be reported to the rental agency immediately. Do not call the VMCC for service to a short term rental vehicle.

Office of Fleet Management Services - Policies & Procedures Manual 15 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 B. Reserving a Short-Term Trip Vehicle – Step-By-Step Instructions: These automobiles are owned by Enterprise Rent-A-Car. When state employees operate one of these vehicles under this contract to conduct state business, the driver and the vehicle are subject to OFMS Policies and Procedures

1. Open your web browser, such as Internet Explorer and type in the following address: http://fleet.dgs.virginia.gov/

1. Scroll down the page and on the left side of this window click on ’Travel Planning’

1. ‘Travel Planning’ is a web page with instructions on how to use the ‘Trip Calculator’ and links located at the bottom of the web page for ‘Trip Calculator’, ‘Frequently Asked Questions’, and ‘Trip Documents’.

PLEASE NOTE: Click on the link entitled ‘Trip Documents’ and print a copy of these forms. These forms will be necessary in the event you are in an accident.

1. Once you have read the ‘Frequently Asked Questions’ and have your ‘Trip documents’ printed.

Click on the link ’Trip Calculator.’

1. Follow the instructions on how to use the ‘Trip Calculator.’ A. When the calculator opens, if the computer displays a box to enable macros, click "Enable Macros".

B. In the calculator enter the:

• traveler's name
• agency
• destination
• estimated number of miles for the trip
• number of days of the trip C. The calculator will automatically compare the cost of obtaining a Short-Term Trip Vehicle versus the personal reimbursement of using your personal vehicle. The calculator also factors in the cost of fuel.

D. If personal reimbursement is the least expensive method, click on the "Print Form" button and print a copy of the calculation. You will need this calculation in order to be reimbursed at the current full rate

E. If the trip calculator determines a Short-Term Trip Vehicle is the least expensive method then click on the "Go to Enterprise" link at the bottom of the calculator and you will be taken to the Enterprise Rent-A-Car web site. Enterprise Rent-A-Car operates the Commonwealth’s Short-Term Trip Vehicles through a contract with the Department of General Services.

Office of Fleet Management Services - Policies & Procedures Manual 16 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 C. Enterprise Rent-A-Car Web Page Instructions: Section 1: When the Enterprise web page opens, there is a listing of agencies that have established accounts with Enterprise Rent-A-Car.

If your agency has finalized an account to use the Short-Term Trip Vehicles then the agency’s name will appear in the agency list. The agencies are listed alphabetically and there is a link for each letter of the alphabet.

If your agency DOES NOT HAVE AN ACCOUNT, go to Section 2 below.

1. Select your agency’s name from the list
2. Select a pick-up location
3. Select start and end dates/times of rental and click on search
4. Select the branch from where you want to get the car.
5. Select the type of car you want to rent.
6. Type in the renters identification information
7. Verify that your reservation is correct and submit the reservation

Section 2: If your agency or office is located in the Richmond area and the agency DOES NOT have an account established with Enterprise Rent-A-Car visit the OFMS website: http://fleet.dgs.virginia.gov/to get information on how to set up an account for your agency.

D. Short-Term Trip Vehicles Fuel Cards: (Vehicles owned by Enterprise Rent-A-Car)

1. To get a fuel card for use with Short-Term Trip Vehicles your agency must set-up an account directly with Mansfield Oil.

1. To set up your Mansfield/Voyager fuel card account contact Scarlett Skinner at Mansfield Oil Government Services, 800-255-6699 or direct 678-450-2074 or Email: sskinner@mansfieldoil.com In the e-mail include:

• Statement of Purpose
• Contact and Agency information Example: I need to set-up an account for a fuel card for the Commonwealth’s Short-Term Trip Vehicles that are owned by Enterprise Rent-A-Car. My name is Sally Jones, Administrative Assistant at the Department of General Services. My contact information is…………

If you have questions which need to be addressed by OFMS about the fuel card program, call 804-367-6935.

1. If your account is already set up, you only need to order cards to support your anticipated rental needs. You should be able to do this through your web access to Mansfield Oil or you may call 800-255-6699.

Office of Fleet Management Services - Policies & Procedures Manual 17 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 Section 4: Maintenance and Care of Vehicles A. General: Vehicle maintenance is the responsibility of the agency that owns or is assigned a vehicle from OFMS. Each agency should assign a specific individual(s), an Agency Transportation Officer, to be responsible for monitoring and controlling the routine maintenance and repair of vehicles.

For OFMS leased fleet vehicles, agencies must advise their drivers to contact the OFMS Vehicle Management Control Center (VMCC) for all servicing, repairs, breakdowns, and accidents. When an OFMS leased fleet vehicle is inoperable, the driver shall call the VMCC to arrange for towing or on-site repairs, or for the transportation of the driver and any passengers to a safe location.

Agency owned vehicles should be maintained in accordance with agency policies and procedures and vehicle specific preventive maintenance schedules. Agencies may contact OFMS for assistance in developing agency specific policies and procedures.

B. Routine Maintenance: Drivers of state-owned vehicles or an individual designated by the agency shall routinely check their vehicles to insure proper oil level, water and antifreeze for radiators, wear on belts and proper inflation of tires. This service should be performed at least weekly and/or at time of fueling.

The exterior of the vehicles shall be washed, the interior vacuumed and the windows cleaned as often as needed, consistent with prudent financial management policy developed by the Agency ATO. The lowest cost option will be used unless authorized by the Agency ATO. The OFMS facility and many VDOT shops have the capability to wash vehicles and commercial car washes perform this service.

C. OFMS Leased Fleet Vehicle Servicing: It is the responsibility of the agency to ensure OFMS leased fleet vehicles are serviced at least once each 6,000 miles or six months, whichever comes first. This service frequency should be more often if the vehicle is routinely operated in dusty or dirty environments. The driver or the designee shall communicate with and follow the instructions from the VMCC for vehicle services. Such servicing is to include an oil and oil filter change, an inspection of the air filter, chassis lubrication and a visual inspection of the belts, hoses and tires.

D. OFMS Leased Fleet Vehicle Repairs: Mechanical trouble or deficiencies concerning an OFMS leased fleet vehicle shall be brought to the attention of the VMCC, the Agency Transportation Officer, and the person responsible for vehicles at the agency, institution or work location.

All needed repairs or vehicle component replacements are to be managed by the VMCC. Drivers will notify the VMCC when emergency repairs are needed, and follow instructions provided by the VMCC. The VMCC should be contacted for authorization prior to having any repairs performed by commercial establishments.

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Vehicle Management Control Center (VMCC) 1-866-857-6866

E. OFMS Leased Fleet Vehicle Up-fit, Modification and Signage: Agencies may modify and up-fit an OFMS leased fleet vehicle in accordance with their agency mission. All costs are to be borne by the agency and should be performed by a qualified technician. Signage should be related to official state business only. Vehicles should be returned back to its original condition, at the agencies expense, prior to being returned to OFMS.

F. Responsibility for Cost of Repairs, Maintenance and Fuel: (OFMS leased fleet vehicles) OFMS will assume the cost of keeping OFMS leased fleet vehicles in good running order, making repairs and replacing all vehicle components necessary due to normal wear and operation. Drivers should be advised not to enter into negotiations with the vender performing repairs as this will be performed by either the VMCC or OFMS. The drivers will not be responsible to pay the vender upon completion of repairs.

Repairs necessary due to improper maintenance, negligence, carelessness or abuse may be charged to the agency to which the vehicle is assigned or issued.

All decisions by the State Fleet Administrator regarding cost responsibility for repairs, excluding vehicle accidents or incidents, are subject to an appeal by the agency in writing to the Director of DGS.

Section 5: Fuel Program

Fuel for OFMS leased fleet vehicles is to be obtained from the OFMS facility, a VDOT facility, or a Voyager card accepting commercial station A directory of Voyager locations can be found at https://www.fleetcommanderonline.com/app/public/merchantLocator.do

Use only unleaded regular fuel in gasoline powered state-owned vehicles. Mid-grade or premium blends are only to be used when regular is not available or the manufacturer requires the use of high octane fuel in the vehicle. E85 fuel is to be used in Flex-Fuel vehicles where available. A list of E85 locations and approved vehicles can be found at http://www.afdc.energy.gov/afdc/progs/ind_state.php/VA/E85 Drivers are expected to use self-service pumps at commercial stations, since this service is normally more economical. A fuel card is provided for such purchases.

Drivers MUST enter correct odometer readings, no tenths, into the card readers at all VDOT, DGS, and commercial self-service fueling sites. OFMS will run daily fueling reports and will contact all Agency Transportation Officers and drivers that consistently fail to enter correct odometer readings. Correct odometer readings are critical to the fleet management system, and this requirement will be strictly enforced.

Agency Transportation Officers will be notified by OFMS of unusual fuel transactions and will have 15 days to investigate and respond to the State Fleet Administrator.

Office of Fleet Management Services - Policies & Procedures Manual 19 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 A. Agency Fuel Card Management Policies & Procedures Listed below are the responsibilities of the DGS Contract Administrator and the Agencies that use the DGS Statewide Fuel Card Program or Alternative Fuel Program: This card program shall be managed in a manner consistent with all applicable State accounting policies and procedures related to the use of charge card programs. Agencies assume ultimate responsibility for employees’ use of the card, as well as the accountability for the physical security of the fuel cards. Agencies shall designate Fuel Card Custodians to maintain the rental vehicle fuel cards, to monitor fuel cards assigned to specific vehicles and manage their daily use. Agencies shall also designate Fuel Card Account Custodians to perform the fiscal and administrative functions required to appropriately manage the fuel card program for the agency. Rental fuel cards used in conjunction with the Enterprise rental car contract shall only be used at commercial retail fuel stations.

B. Fuel Card Custodian The Fuel Card Custodian assumes responsibility for the physical security of a Commonwealth of Virginia Fuel Card (Mansfield/Voyager Card, Blossman Gas Card, and Clean Energy Card) and its PIN (Personal Identification Number). The Fuel Card Custodian may delegate use of the card, but assumes responsibility for card transactions.

The Fuel Card Custodian shall perform duties that include, but are not limited to:  Ensure physical security of Fuel Cards (for example, in a locked desk drawer). The card may not be left in the custody of a vendor.  Maintain a written record of all persons who have physical access to the Fuel Card (for example, a sign-out sheet for the card, or a list of persons who have keys to the locked desk drawer).  Ensure that the card is used only for appropriate purchases (described below), and in conjunction with State business.  Remind all rental card users to use commercial retail sites only.  Ensure users of rental vehicles, and rental vehicle fuel cards turn in receipts of purchases from commercial retail fuel sites.  Ensure all documentation of card use is forwarded to the Fuel Card Account Custodian.  Inform DGS Office of Fleet Management Services of any change in the Fuel Card Custodian’s contact information.

C. Fuel Card Account Custodian The Account Custodian assumes responsibility for reviewing card activity to ensure appropriate use. In addition, the Account Custodian should not be a card user.

The Account Custodian shall perform duties that include but are not limited to:  Review the monthly Statement of Charges for appropriateness of card usage.  Reconcile all charges and process payment to card vendor.

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Vehicle Management Control Center (VMCC) 1-866-857-6866  Report infractions to the agency management.  Maintain records of all card usage, sign out sheets, receipts, or other applicable documents  Ensure that the card is used only for appropriate purchases (described below), and in conjunction with State business.  Inform DGS Office of Fleet Management Services of any change in the Account Custodian’s contact information.

A Fuel Card assigned to an OFMS leased fleet vehicle can be used to purchase:  Fuel, either regular unleaded gasoline or E85 if the vehicle is capable of using E85.  Compressed Natural Gas or Propane if the vehicle is equipped.  Car washes  In out-of-area emergencies only: parts and labor for towing, road service, and mechanical repairs, if approved at the time of the occurrence. If the vehicle is an Enterprise Rental, you must follow the procedures outlined in the Enterprise rental packet. Enterprise is responsible for any costs associated with those vehicles during roadside emergencies not the Commonwealth. If the vehicle is a permanently assigned vehicle from OFMS, then you must call the VMCC at 1-866-857-6866 for any roadside emergency. Failure to do so will result in your agency being responsible for any charges on the fuel card. For agency owned vehicles, please follow the guidelines prescribed by your Agency Transportation Officer.

A Fuel Card assigned to an OFMS leased fleet vehicle should not be used to purchase:  Food or beverages.  Parts and labor for towing, road service, and mechanical repairs.  Other goods or services.

A Fuel Card assigned to an agency owned vehicle may be used to purchase the following provided the agency establishes authorization with Mansfield:  Fuel, either regular unleaded gasoline, E85 if the vehicle is capable of using E85 or diesel fuel.  Compressed Natural Gas or Propane if the vehicle is equipped.  Car washes  Parts and labor for towing, road service, and mechanical repairs.

Responsibilities of DGS Fuel Card Contract Administrator:  Monitor agency card usage activity for:  Delinquent payments  Inactive cards  Inappropriate purchases  Ensure agency Fuel Card and Account Custodians receive appropriate training and support from the fuel card vendor.

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Vehicle Management Control Center (VMCC) 1-866-857-6866 The DGS Contract Administrator will electronically monitor all fuel card accounts in the program. If an agency has questions regarding the Commonwealth of Virginia Fuel Card Program, please contact:

The Office of Fleet Management Services (804) 367-6525 Section 6: Mileage Mileage for OFMS leased fleet vehicles is collected and reported to OFMS through the fuel card readers at VDOT, OFMS and commercial fueling sites. Drivers MUST enter correct odometer readings, no tenths, into the card readers at all VDOT, OFMS and commercial self-service fueling sites. Agencies that have OFMS leased fleet vehicles that do not fuel at VDOT, OFMS or a commercial fueling site must submit a monthly mileage report on Form CP-6 or an Excel spreadsheet. Form CP-6 can be found on the OFMS website at http://fleet.dgs.virginia.gov/Section 7: Payment of Bills OFMS will bill the user agencies monthly. Agencies are expected to process their bills for payment within 30 days of receipt of bill from OFMS. Bills delinquent by more than 45 days will be turned over to the comptroller for appropriate action. Continuous late submission of mileage reports or late payment of bills by an agency may result in the recall of vehicles, or a prohibition on new assignment requests, and replacements Office of Fleet Management Services - Policies & Procedures Manual 22 Department of General Services - Serving Government. Serving Virginians.

Office of Fleet Management Services Policies and Procedures Manual

Department of General Services Helping Government Get Down to Business

January 2020VMCC 1-866-857-6866 Table of Contents Definitions .................................................................................................................. 1 Introduction ................................................................................................................ 2 A. Authority: .............................................................................................................................. 2 B. Applicability of Policies and Procedures: ............................................................................. 2 C. Responsibilities: .................................................................................................................... 2 Section 1: Vehicle Deployment and Disposal ........................................................... 3 I. Assignment ............................................................................................................. 3 A. Assignment: .......................................................................................................................... 3 B. Assignment Criteria: ............................................................................................................. 3 C. Request for Assignment: ....................................................................................................... 4 D. Request for Confidential Plates............................................................................................. 4 E. Agency Assignment - Informational Updates: ...................................................................... 5 F. Term of Assignment: ............................................................................................................. 5 II. OFMS Leased Fleet Vehicle Utilization ............................................................... 5 A. Request for Exemption to Minimum Mileage Criteria: ........................................................ 5 B. Basis for Exemption to the Minimum Mileage Criteria for OFMS Leased Fleet Vehicle Assignment: ................................................................................................................................ 6 C. Recall of OFMS Leased Fleet Vehicles Due to Underutilization: ........................................ 6 D. Annual Reporting Requirements:.......................................................................................... 6 III. Disposal ................................................................................................................ 7 A. Removal or Recall of OFMS Leased Fleet Vehicles from Agency: ..................................... 7 B. Disposal Criteria for OFMS Leased Fleet Vehicles .............................................................. 7 C. Disposal Process for OFMS Leased Fleet Vehicles .............................................................. 7 Section 2: Safety Program ......................................................................................... 8 I. Driver Eligibility ..................................................................................................... 8 A. Driver's License: ................................................................................................................... 8 B. Monitoring Driver Status: ..................................................................................................... 8 C. Moving Violation Reporting: ................................................................................................ 8 II. Vehicle Use ........................................................................................................... 8 A. General Operation: ................................................................................................................ 8 B. Official Use Only: ................................................................................................................. 8 C. Relatives: ............................................................................................................................... 8 D. Hourly and Part-Time State Employees and Non-State Employees: .................................... 9 E. Hitchhikers and Pets: ............................................................................................................. 9 F. Cellular Phones or Handheld Devices ................................................................................... 9 G. Eating .................................................................................................................................... 9 H. Compliance with Motor Vehicle Laws: ................................................................................ 9 I. Alcoholic Beverages and Drugs: ........................................................................................... 9 J. Use of Personal Vehicles:....................................................................................................... 9 K. Parking and Storage of OFMS Leased Fleet Vehicles: ........................................................ 10 Office of Fleet Management Services - Policies & Procedures Manual Department of General Services – Helping Government Get Down to Business Vehicle Management Control Center (VMCC) 1-866-857-6866 L. Toll Charges: ....................................................................................................................... 10 M. Out-of-State Travel: ............................................................................................................ 10 N. Firearms ............................................................................................................................... 10 O. Driving Under Adverse Weather Conditions: ..................................................................... 10 P. Responsibility for Loss or Damage of Personal or Agency-Owned Property: .................... 11 Q. Loss of OFMS leased fleet vehicle Keys: ........................................................................... 11 R. Seatbelts: ............................................................................................................................. 11 III. OFMS Fleet Vehicle Accidents .........................................................................11 A. Notification of State Police: ................................................................................................ 11 C. Completion of Accident Reports: ........................................................................................ 11 D. Uniform Accident Prevention Committee: ......................................................................... 12 E. Accident Repairs and Cost Responsibility: ......................................................................... 12 IV. Agency Owned Vehicle Accidents ....................................................................13

A.

Notification of State Police ............................................................................................ 13

B.

Accident Notification, Towing, Repair and Cost Responsibility ................................... 13 Section 3: Travel and Commuting ..........................................................................13 I. Commuting ...........................................................................................................13 A. Request for Use of State-Owned Vehicles for Commuting: ............................................... 13 B. Reporting of Vehicles for Commuting: ............................................................................... 14 C. Reimbursement from Commuters: ...................................................................................... 14 D. Types of Home-to-Official Work Station Travel Excluded From These Regulations: ...... 14 E. Vehicle Travel Logs: ........................................................................................................... 14 II. Travel Planning ...................................................................................................15 A. Policies for Virginia’s Short-Term Trip Vehicles ................................................................ 15 B. Reserving a Short-Term Trip Vehicle – Step-By-Step Instructions: ................................... 16 C. Enterprise Rent-A-Car Web Page Instructions: ................................................................... 17 D. Short-Term Trip Vehicles Fuel Cards: (Vehicles owned by Enterprise Rent-A-Car) ......... 17 Section 4: Maintenance and Care of Vehicles .........................................................18 A. General: ............................................................................................................................... 18 B. Routine Maintenance: ......................................................................................................... 18 C. OFMS Leased Fleet Vehicle Servicing: .............................................................................. 18 D. OFMS Leased Fleet Vehicle Repairs: ................................................................................. 18 E. OFMS Leased Fleet Vehicle Up-fit, Modification and Signage: ........................................ 19 F. Responsibility for Cost of Repairs, Maintenance and Fuel: (OFMS leased fleet vehicles) 19 Section 5: Fuel Program ...........................................................................................19 A. Agency Fuel Card Management Policies & Procedures ...................................................... 20 B. Fuel Card Custodian ............................................................................................................. 20 C. Fuel Card Account Custodian .............................................................................................. 20 Section 6: Mileage ..................................................................................................22 Section 7: Payment of Bills .....................................................................................22 Office of Fleet Management Services - Policies & Procedures Manual Department of General Services – Helping Government Get Down to Business Vehicle Management Control Center (VMCC) 1-866-857-6866 Office of Fleet Management Services The Office of Fleet Management Services (OFMS) is an organizational unit within the Director’s Office of the Department of General Services. It establishes fleet management policies and procedures for all vehicles owned by the Commonwealth, to ensure safe, reliable, and cost efficient use. The vehicles are available to state employees and other OFMS customers who conduct the Commonwealth's business.

Definitions Agency Transportation Officer (ATO) – Designated individuals in each agency overseeing vehicle management, reporting, and serving as the agency link with

OFMS.

Agency Owned Vehicle - Any state owned vehicle with a title held by the operating agency, that includes but is not limited to sedans, station wagons, minivans, pickup trucks, sport utility vehicles, or vans used primarily for the transportation of the driver and no more than 15 passengers.

Centralized Fleet - Vehicles purchased by the Department of General Services' Office of Fleet Management Services available for use by state agencies on a lease.

Commuting - Use of a state vehicle by an employee between home and work, not in "travel status." DGS Director - The head of the Department of General Services.

Employee - Any individual authorized to operate a state vehicle for Virginia, including part-time, hourly, full-time, or contracted persons.

Law Enforcement Officer - Defined in Section 9.1-101 of the Virginia Code and/or by Attorney General opinions.

Lease - A contract with OFMS for vehicle use exceeding 30 days.

Office - The employee's routine work location or station.

Office-In-Home - The employee's home is the official location from which he/she begins and ends work duties and the employee does not report on any routine frequency to an official state facility prior to beginning work or at the conclusion of work. The location of the employee's home must be within the geographic confines of the employee's assigned work area.

OFMS Leased Fleet Vehicle - State-owned vehicle leased by DGS to a CoVA agency, including sedans, wagons, minivans, pickups, SUVs, or vans for the driver and up to 15 passengers.

State Fleet Administrator - Director of OFMS.

Vehicle – Any DMV-registered state passenger vehicle, including sedans, wagons, minivans, pickups, SUVs, or vans for the driver and up to 15 passengers.

Vehicle Management Control Center (VMCC) – Located at the Office of Fleet Management Services. The call center (1-866-857-6866) manages the maintenance activities of all OFMS vehicles and certain agency owned vehicles.

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Vehicle Management Control Center (VMCC) 1-866-857-6866

Introduction

A. Authority: The DGS director has authority and responsibilities per Chapter 11, Title 2.2 1180 of the Virginia Code:

The Director may issue regulations for purchasing, using, storing, maintaining, repairing, and disposing of all passenger vehicles owned by the Commonwealth and in the centralized fleet. By Governor's order, these may extend to all Commonwealth motor vehicles or as designated.

By Executive Order 89, authority extends to all Commonwealth passenger vehicles. DGS director delegated policy implementation to the State Fleet Administrator.

B. Applicability: These policies apply to all passenger vehicles owned by Virginia.

The Governor may extend these policies to all Commonwealth-owned or leased motor vehicles by Executive Order.

C. Responsibilities:

1. DGS develops policies for purchase, use, storage, maintenance, repair, and disposal of state vehicles.

1. OFMS manages the centralized fleet, policies on assignment, use, maintenance, repair, replacement, and oversees accident reporting and inquiries.

1. Agency heads must enforce OFMS policies, ensure timely reports and payments, and designate a transportation officer as liaison.

1. ATO duties, assigned by Agency Head, include managing and operating state vehicles per OFMS policies.

a. Establish internal procedures to ensure vehicles are maintained and operated per OFMS policies. Agencies may develop internal policies to

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supplement and strengthen OFMS policies and procedures. However, agencies internal policies and procedures may not supersede or change the policies and procedures set forth in this document. b. Orienting employees to assure vehicle drivers are aware of OFMS policies and procedures, and of their individual responsibilities concerning the use of a vehicle; c. Establishing internal agency procedures to assure vehicle drivers possess a valid driver's license and acceptable driving record; d. Keeping OFMS advised of any changes pertaining to vehicle assignment and/or location (applies to OFMS vehicles only); e. Monitoring vehicle utilization to assure optimum use and efficiency; f. Reporting any commuter use of vehicles to OFMS; g. Submitting any requests for exemption to the minimum mileage criteria as set forth in Chapter 11, Section 2.2-1178 of the Code of Virginia and Section III herein, and h. Submitting vehicle reports to OFMS, as requested or required.

5) Vehicle drivers must review and comply with all policies and procedures for vehicle use, maintenance, and operation.

Section 1: Vehicle Deployment and Disposal

I. Assignment

A. Assignment: OFMS leased fleet vehicles are assigned to an agency and managed by the Agency Transportation Officer (ATO) in coordination with the agency head. The vehicle is under the ATO's control for agency-wide use, even if justified by employee needs.

B. Assignment Criteria: Approvals are based on one of the following:

1. Vehicles must be driven at least the annual business mileage per Virginia Code § 2.2-1178 B.1;

1. A law enforcement officer as defined in Virginia Code § 9-1-101;

1. Employees requiring constant use or availability of specialized equipment (e.g., medical supplies, testing apparatus) necessary for their duties;

1. Employees on 24-hour call responding to emergencies outside their official work station;

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1. Vehicle used for routine client/ward transport or essential agency functions where temporary assignment or reimbursement isn't feasible;

C. Request for Assignment: Requests by agencies for assignments are to be submitted to OFMS on the Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle." Complete the form and have it signed by the Agency Transportation Officer (ATO), and the agency head. The form should be submitted at least 90 days prior to the need for the vehicle, when feasible.

D. Request for Confidential Plates 1st time request for confidential plates

1. Agencies with law enforcement authority meeting §46.2-750 will request confidential plates from the State Fleet Administrator.
2. Agency submits a signed Letter of Authorization to DMV LES, designating OFMS Director to request confidential tags for authorized vehicles;

1. OFMS completes DMV LES LE-11 form for §46.2-750 (A) vehicles and submits for review.

1. OFMS provides DMV LES LE-15 form for other requests.

Form is to be completed, signed by a sworn law enforcement authority and returned to OFMS.

OFMS will submit the form to LEIS for review and approval.

Renewal of current confidential plates

1. All agencies must have previously provided requested information.

1. Renewal notices are mailed 30 days before registration expiry to the State Fleet Administrator.
2. Completed request form, authorized by the Fleet Administrator, is attached to the license plate application and forwarded; decals are returned for distribution.
3. Changes in vehicle status require a documented request before updates.

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Vehicle Management Control Center (VMCC) 1-866-857-6866

1. No fee is attached for this process.

E. Agency Assignment - Informational Updates: Agencies are to keep OFMS advised of any changes regarding vehicle assignment, including changes in vehicle principal assignee, location of vehicle, vehicle exemption, commuting, or any factors which may effect vehicle utilization. The Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle" is to be used to advise OFMS of any changes.

F. Term of Assignment: Chapter 11, Section 2.2-1178 limits the assignment of a vehicle to a maximum of two years, except upon review by the State Fleet Administrator as to the continued need for the assignment. Any vehicle failing to achieve the minimum mileage criteria will be reviewed for possible recall. Any changes regarding vehicle use are to be submitted to the fleet administrator in accordance with Section II, D, herein. Vehicle assignments will terminate upon notification by the State Fleet Administrator, unless the agency head determines that the vehicle is no longer needed prior to such notification.

II. OFMS Leased Vehicle Utilization: Chapter 11, Section 2.2-1178 sets minimum annual mileage standards: Compact 8,000; Mid-Size 8,500; Full Size 9,000; Mini-Van 11,000; Small SUV 10,000; Large SUV 13,000; Pickup 4x2 8,000; 4x4 9,000; Full-Size 10,000; 4x4 11,000. Requests or assignments not meeting these criteria may be denied or recalled at the discretion of the State Fleet Administrator.

A. Request for Exemption to Minimum Mileage Criteria: Exemptions to the minimum mileage specified for assignment or retention of an OFMS leased fleet vehicle may be justified if the principal driver of the vehicle has duty assignments routinely related to public safety and/or response to life threatening situations, or if the vehicle's functional use can be classified as a "special need".

Requests for exemptions should be submitted to the State Fleet Administrator on the Form OFMS-1, "Application for Assignment/Purchase/Lease of State Vehicle." The State Fleet Administrator will advise the Office of Fleet Management Services - Policies & Procedures Manual 5 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 Agency Transportation Officer (ATO) in writing as to the approval/disapproval of the request with a copy to the appropriate agency head. The agency head, if dissatisfied with the decision, may submit a formal appeal to the Director of DGS.

B. Basis for Exemption to the Minimum Mileage Criteria for OFMS Leased Fleet Vehicle Assignment:

1. Exemptions for public safety: law enforcement vehicles, employees with constant specialized equipment use, and 24-hour emergency responders.

1. Special need exemptions: routine client/ward transport and essential admin functions where rentals or reimbursements are unfeasible.

C. Recall of OFMS Leased Fleet Vehicles Due to Underutilization: The State Fleet Administrator will inform the Agency Transportation Officer about the vehicles that failed to meet the minimum mileage criteria. Any vehicles failing to meet the annual minimum mileage criteria may be recalled at the end of the fiscal year.

The agency has 30 days to justify retention; the Fleet Administrator reviews and responds in writing.

The agency may appeal the decision in writing; failure to respond or return vehicle within 30 days may result in sanctions.

D. Annual Reporting Requirements: Each Agency, with the exception of institutions of higher education, will be responsible for submitting an annual report on each non-pool vehicle to the State Fleet Administrator before September 1.

Pursuant to the Virginia Acts of Assembly, Item 4-5.05 paragraph c.2, institutions of higher education “shall be required to report their entire inventory of purchased and leased vehicles including the cost of such to the Director of the Department of General Services by June 30 of each year." Office of Fleet Management Services - Policies & Procedures Manual 6 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

OFMS will provide annual reporting instructions; agencies and higher education must submit requested information.

III. Disposal

A. Removal or Recall: OFMS leased vehicles may be recalled if certain conditions occur:

1. Vehicle not driven and not exempt from minimum mileage;
2. Vehicle abuse includes improper care, excessive filth, neglecting servicing, or willful damage.
3. Agency billings unpaid after 45 days.
4. Driver delinquent in parking tickets more than twice in six months.

B. Disposal Criteria: OFMS vehicles will not be disposed until meeting at least one criterion:

1. Vehicle has over 85,000 miles.
2. Vehicle older than 9 years.
3. Vehicle damage or repair exceeds 60% of NADA value.
4. The Director has determined the vehicle's condition is “un-repairable”.
5. Agency has determined the vehicle is no longer needed and excess.

These are minimum criteria; actual replacement mileages may vary at OFMS discretion.

C. Disposal Process: After meeting minimum requirements and notification, the following steps are to be followed.

1. All seals, decals, and equipment should be removed from the vehicle.
2. Return the vehicle to the Office of Fleet Management Services, 2400 West Leigh Street, Richmond VA 23220.
3. If undrivable, the driver must contact VMCC for transport arrangements.

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Section 2: Safety Program

I. Driver Eligibility

A. Driver's License: Anyone driving a state-owned vehicle must have a valid driver's license and show it before obtaining a vehicle from OFMS. Agencies must verify drivers possess valid licenses for their vehicles.

B. Monitoring Driver Status: Drivers must have a valid license to operate state vehicles. For temporary or rental use, employees must show their license to the supervisor before use.

All agencies with long-term vehicle assignments should use DMV's free automated driving record program to monitor employee violations, DUIs, or license suspensions, reducing risks and liabilities.

C. Moving Violation Reporting: Employees must report any moving violation in a state vehicle to their supervisor within 3 business days; failure may lead to discipline or loss of driving privileges.

II. Vehicle Use

A. General Operation: Drivers must practice defensive driving, perform a walk-around inspection before moving, and avoid smoking or tobacco use in state vehicles.

B. Official Use Only: Vehicles are for official state business only; misuse may lead to discipline or loss of driving privileges. Vehicles must avoid even the appearance of impropriety.

C. Relatives: Family members cannot ride in state vehicles unless traveling for official state business.

Office of Fleet Management Services - Policies & Procedures Manual 8 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 D. Hourly and Part-Time State Employees and Non-State Employees: An agency may permit students, part-time or hourly employees, and volunteers to state service, to operate or ride in state-owned vehicles if on official business for the agency.

Individuals not employed by the state may accompany employees in state vehicles if their presence relates to official state business and they have an interest in the trip.

Non-state employees may operate a state vehicle if performing a contracted function with vehicle provision, and are subject to the same rules as state employees.

E. Hitchhikers and Pets: Hitchhikers and pets are not allowed to ride in any state-owned vehicle. Service dogs are allowed.

F. Cellular Phones or Handheld Devices Cell phones, blackberries, smart-phones, GPS, or other electrical devices must be operated via a hands-free device or while the vehicle is in park. Any other use such as text messaging or emailing is prohibited while the vehicle is in drive and/or in motion. Use of two-way radios and related mission essential equipment for emergency response vehicles will be governed by agency policy.

G. Eating Eating food is prohibited while driving a state-owned vehicle.

H. Compliance with Motor Vehicle Laws: It is the responsibility of each individual driver to observe all motor vehicle laws of Virginia. Drivers must not knowingly operate vehicles that do not comply with legal requirements.

It is the responsibility of each agency and institution to guarantee employees possess a valid driver's license prior to authorizing use of a state-owned vehicle.

All violations and fines, including parking citations, are the responsibility of the assigned driver at the time of such violation. Abuse of motor vehicle laws by a driver may result in the loss of the privilege of a state-owned vehicle.

I. Alcoholic Beverages and Drugs: Under no circumstances may a state employee operate a vehicle while under the influence of intoxicating beverages, drugs or other substances. Conviction of such offenses will result in the loss of the privilege of a state-owned vehicle. No state vehicle may be used to transport alcoholic beverages unless it is operated by an employee of the Alcoholic Beverage Control Board or other law enforcement personnel in the performance of their official duties.

J. Use of Personal Vehicles: Office of Fleet Management Services - Policies & Procedures Manual 9 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 When authorized by the agency, employees may use personal automobiles in the discharge of official duties within the continental limits of the United States with reimbursement at the rate prescribed by the Travel Regulation.

Agencies should monitor, on an annual basis, the personal mileage reimbursement paid to each employee. Such information may reflect the need for additional OFMS leased fleet vehicle assignments. Agency Transportation Officers should be consulted for agency-specific policies concerning the use of personal vehicles.

K. Parking and Storage of OFMS Leased Fleet Vehicles: Individuals and agencies are responsible for secure and safe storage and parking of vehicles. OFMS leased fleet vehicles shall not be left on residential streets or highways overnight unless it is necessary due to mechanical failure or emergency or if you have received approval from the State Fleet Administrator. When an OFMS leased fleet vehicle is parked on a municipal street it shall be the responsibility of the driver's agency to ensure payment of all parking fees and any parking fines assessed against the vehicle. The vehicle may be parked in a commercial or municipal parking facility provided the driver or the driver's agency pays parking fees. The assigned driver shall be responsible for towing fees resulting from improper parking.

L. Toll Charges: Toll charges incurred during travel in an OFMS leased fleet vehicle are the responsibility of the driver and/or agency. If OFMS receives a toll invoice, it will be added to the appropriate agency’s billing.

M. Out-of-State Travel: Use of state-owned vehicles outside of the Commonwealth of Virginia must be coordinated in advance of the travel with the Agency Transportation Officer. ATO's should take into consideration the mileage and age of the vehicle prior to approving out of state travel. In the event that OFMS has to recover a state-owned vehicle from outside the Commonwealth, the agency assigned the vehicle will be charged for the recovery costs irrespective of fault.

The fleet vehicle credit card is accepted nationwide for fuel; verify acceptance before purchase.

Vehicles domiciled outside Virginia require approval by the State Fleet Administrator.

N. Firearms: No one should possess or use weapons not required by their position in a state vehicle, per DHRM Policy 1.80.

O. Driving Under Adverse Weather Conditions: Drivers who drive a state-owned vehicle during adverse weather conditions are cautioned to take extreme care to ensure the safety of driver and passengers. Repairs for any damage to the vehicles resulting from their operation during adverse weather conditions will be charged to the using agency if it is found damage was caused by the driver’s negligence.

Office of Fleet Management Services - Policies & Procedures Manual 10 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 P. Responsibility for Loss or Damage of Personal or Agency-Owned Property: OFMS is not responsible or liable for loss or damage to any personal or agency-owned property or belongings transported or left in an OFMS leased fleet vehicle. Waiver of liability includes, but is not limited to water damage of contents caused by misalignment of trunks, doors or faulty weather-stripping resulting in interior exposure to the elements. It is the responsibility of each driver to report defects to the VMCC for correction.

Q. Loss of OFMS Leased Fleet Vehicle Keys: OFMS is not responsible for any costs associated with keys being lost, stolen or locked-in an OFMS leased fleet vehicle. Any costs for duplicate keys, locksmith services, or damage to vehicle resulting from forced entry by a state employee shall be the responsibility of the agency assigned the vehicle. If locked out of the vehicle, contact the VMCC.

R. Seatbelts: Seatbelts must be used by all occupants in accordance with state law.

III. OFMS Fleet Vehicle Accidents A. Notification of State Police: The driver MUST contact the VMCC immediately if involved in an accident/incident. The VMCC will then make arrangements to contact the State Police.

1. Whenever a traffic crash occurs involving a state-owned vehicle, and while the vehicle is at the scene, the VMCC, vehicle operator or a representative of the agency owning or using the vehicle shall immediately report the crash to the Department of State Police, or to the police department of any state college, university or community college. If the crash occurs on state parking facilities, or adjacent highways under the jurisdiction of the Virginia Capitol Police, the crash shall be reported to that agency. All traffic crashes involving licensed state-owned vehicles and crashes involving non-licensed state-owned vehicles where a licensed vehicle is also involved shall be investigated by the Department of State Police, the police department of any state college, university or community college, or by the Virginia Capitol Police, except: a. Crashes in which the vehicle have been removed from the scene unless the crash was the result of a hit and run or personal injury was involved. This does not include moving the vehicle from the highway as a safety precaution. b. Damage to a vehicle is discovered after the fact, other than damage resulting from a hit and run crash.

B. Towing: The VMCC will make arrangements for towing and for the transportation of the driver and any passengers to a safe location.

C. Completion of Accident Reports: The driver is required to complete an "Automobile Incident Report" form on any accident/incident regardless of the amount of property damage or personal injury within 10 business days of the accident. The forms may be Office of Fleet Management Services - Policies & Procedures Manual 11 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 obtained from your Agency Transportation Officer. The original of the "Automobile Incident Report" form should be forwarded directly to the VMCC, vmcc@dgs.virginia.gov, VMCC, 2400 W. Leigh Street, Richmond, Virginia 23220 or fax to 804-545-5020. The VMCC will notify DRM. It is also recommended that the driver send a copy electronically to DRMClaims@trs.virginia.gov.

Drivers must not accept responsibility or discuss accidents with anyone except supervisors, law enforcement, or Treasury/Division of Risk Management representatives.

D. Uniform Accident Prevention Committee: The Uniform Accident Prevention Committee, chaired by a representative of the Virginia State Police, is comprised of representatives from 12 state agencies. This committee reviews, evaluates, and classifies all accidents/incidents involving OFMS leased fleet vehicles.

The State Fleet Administrator will advise the driver's Agency Transportation Officer of the committee's decision regarding responsibility for the accident. The accident will be classified as either preventable or non-preventable by the driver, or as an incident. The decision of the Uniform Accident Prevention Committee is to assist the agency in determining whether they need to take any action against their driver.

The driver, if dissatisfied with the committee's decision, may initiate an appeal. An appeal may take the form of a request to appear before the committee or to be submitted in writing to the State Fleet Administrator for submission to the committee for reconsideration. The committee will consider the additional facts or documentation and will advise the driver's Agency Transportation Officer of their final decision.

If still dissatisfied, the agency head may request an appeal before a State Police panel by writing to the Superintendent of State Police.

E. Accident Repairs and Cost Responsibility: The vehicle should be taken to a shop specified by the VMCC for the securing of estimates and/or repair. Shop personnel will secure the necessary estimates and provide copies to the VMCC.

If police identify a third party at fault, OFMS will cover repair or loss costs.

In all other cases, the leasing agency bears repair and loss costs.

For 2009 model year vehicles and newer, vehicles which are declared a total loss will be assessed charges in the following manner. The leasing agency will be assessed an amount not to exceed the remaining Capital Charges for the 84 month amortization period. When the wrecked vehicle is sold, OFMS will refund to the leasing agency the residual value of the wreck vehicle. For example, if a vehicle is wrecked after 48 payments have been made, the agency will be assessed an amount equal to 36 months capital charge not the operational charge.

Net proceeds from sale will be refunded to the agency.

Office of Fleet Management Services - Policies & Procedures Manual 12 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

Dissatisfied agency head may appeal in writing to DGS director, who will review and advise both parties.

Before moving, drivers must inspect the vehicle; report damage to VMCC immediately if found.

IV. Agency Owned Vehicle Accidents

A. Notification of State Police Whenever a traffic crash occurs involving a state-owned vehicle, and while the vehicle is at the scene, the operator or a representative of the agency owning or using the vehicle shall immediately report the crash to the Department of State Police, or to the police department of any state college, university or community college. If the crash occurs on state parking facilities, or adjacent highways under the jurisdiction of the Virginia Capitol Police, the crash shall be reported to that agency. If the crash occurs on Port of Virginia terminal property, the crash may be reported to that agency. All traffic crashes involving licensed state-owned vehicles and crashes involving non-licensed state-owned vehicles where a licensed vehicle is also involved shall be investigated by the Department of State Police, the police department of any state college, university or community college, the Virginia Port Authority or by the Capitol Police, except:

 Crashes in which the vehicle have been removed from the scene unless the crash was the result of a hit and run or personal injury was involved. This does not include moving the vehicle from the highway as a safety precaution.

 Damage to a vehicle is discovered after the fact, other than damage resulting from a hit and run crash.

B. Accident Notification, Towing, Repair and Cost Responsibility In those cases where an accident involves an Agency owned vehicle, refer to agency procedures. In the meantime, the driver is required to complete an "Automobile Loss Notice" form on any accident/incident regardless of the amount of property damage or personal injury within 10 business days of the accident. Submit the notice electronically to DRMClaims@trs.virginia.gov.

Section 3: Travel and Commuting

I. Commuting

A. Use of State-Owned Vehicles for Commuting: Under Virginia law, vehicles may not be used for commuting unless required by duties and approved by the agency head and, for OFMS leased vehicles, the State Fleet Administrator. Requests

Office of Fleet Management Services - Policies & Procedures Manual 13 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 for the use of an OFMS leased fleet vehicle for commuting are to be submitted to the Fleet Administrator by the agency on Form OFMS -1.

B. Reporting of Vehicles for Commuting: Each agency, with the exception of institutions of higher education, must report all state-owned vehicles used for commuting to OFMS annually or as requested by the State Fleet Administrator.

C. Reimbursement from Commuters: All employees authorized to use a state-owned vehicle for commuting shall reimburse the state for mileage unless they are law enforcement officers or employees who do not report to an official work station and whose office is in their home. Reimbursement shall be by payroll deduction only. The fee for commuting is to be the rate per mile used by the Department of Accounts (DOA) for personal reimbursement when a government vehicle is not available or other rate as approved by DOA.

In accordance with Code of Virginia, Chapter 11, Section 2.2-1179 and Executive Order 89, Special Directive 3, the Secretary of Public Safety may establish a reimbursement rate for authorized individuals.

The payroll deduction amount remains constant unless:

1. The personal reimbursement rate changes.
2. The employee changes residence or office location.
3. Unusual circumstances prevail (extended illnesses, etc.)

Procedures for deducting these moneys from employee pay are established by the state comptroller and contained in the Commonwealth Accounting Policies and Procedures Manual.

D. Types of Home-to-Official Work Station Travel Excluded From These Regulations: The following are the types of home-to-official work station travel which do not require a request for approval to commute:

1. Employees traveling only between home and official work station in "travel status" as defined in "state travel regulations";

1. Employees traveling only between home and work station the evening before or after a trip.

E. Vehicle Travel Logs: A vehicle travel log will be required if the agency elects to use "actual days commute'' in lieu of the standard 220 days per year. The log will show the dates and mileage of all home-to-office and office-to-home travel while in commute status and list the vehicle pool number, the driver's name and driver’s license number.

The driver shall summarize the log quarterly and submit it to the Agency Transportation Officer. Annually, agencies must report one-way mileage, total mileage, trips, and payroll deduction to the State Fleet Administrator.

Office of Fleet Management Services - Policies & Procedures Manual 14 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 II. Travel Planning A. Policies for Virginia’s Short-Term Trip Vehicles: OFMS contracts with Enterprise Rent-A-Car to provide vehicles for state employees conducting state business.

Vehicles owned by Enterprise Rent-A-Car and available to Virginia state employees are called Short-Term Trip Vehicles.

1. Owned by Enterprise Rent-A-Car, these vehicles operated by state employees for state business are subject to OFMS Policies and Procedures.

1. Reserve Short-Term Trip Vehicles in advance with Enterprise Rent-A-Car.

1. Arrangements should be made for the pick-up and drop-off of Short-Term Trip Vehicles. If a reservation must be canceled, call the branch the reservation was made for or log on to http://www.enterprise.com to notify Enterprise Rent-A-Car.

1. Liability insurance and Loss Damage Waiver are included in all Virginia agency rates. Contact DRM for coverage questions.

DRM basic coverage is liability insurance only; for additional coverage, see DRM’s "LeaseCare" program details.

1. State employees must use the Enterprise web system to reserve a Short-Term Trip Vehicle from over 200 locations.

1. Return Short-Term Trip Vehicles with same fuel level as at rental, to an Enterprise location.

1. Damage or breakdowns should be reported to the rental agency immediately. Do not call the VMCC for service to a short term rental vehicle.

Office of Fleet Management Services - Policies & Procedures Manual 15 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 B. Reserving a Short-Term Trip Vehicle – Step-By-Step Instructions: These automobiles are owned by Enterprise Rent-A-Car. When state employees operate one of these vehicles under this contract to conduct state business, the driver and the vehicle are subject to OFMS Policies and Procedures

1. Open browser and go to http://fleet.dgs.virginia.gov/

1. Scroll down and click ‘Travel Planning’ on the left side.

1. ‘Travel Planning’ page has instructions for ‘Trip Calculator’, FAQs, and ‘Trip Documents’ links.

PLEASE NOTE: Click on the link entitled ‘Trip Documents’ and print a copy of these forms. These forms will be necessary in the event you are in an accident.

1. After reading FAQs and printing ‘Trip Documents’.

Click on the link ’Trip Calculator.’

1. Follow the instructions on how to use the ‘Trip Calculator.’ A. When the calculator opens, if the computer displays a box to enable macros, click "Enable Macros".

B. In the calculator enter the:

• traveler's name
• agency
• destination
• Estimated miles for trip
• Trip duration (days) C. The calculator will automatically compare the cost of obtaining a Short-Term Trip Vehicle versus the personal reimbursement of using your personal vehicle. The calculator also factors in the cost of fuel.

D. If personal reimbursement is the least expensive method, click on the "Print Form" button and print a copy of the calculation. You will need this calculation in order to be reimbursed at the current full rate

E. If the trip calculator determines a Short-Term Trip Vehicle is the least expensive method then click on the "Go to Enterprise" link at the bottom of the calculator and you will be taken to the Enterprise Rent-A-Car web site. Enterprise Rent-A-Car operates the Commonwealth’s Short-Term Trip Vehicles through a contract with the Department of General Services.

Office of Fleet Management Services - Policies & Procedures Manual 16 Department of General Services - Serving Government. Serving Virginians.

VMCC 1-866-857-6866 C. Enterprise Web Page Instructions: Section 1: The page lists agencies with established accounts with Enterprise Rent-A-Car.

If your agency has finalized an account to use the Short-Term Trip Vehicles then the agency’s name will appear in the agency list. The agencies are listed alphabetically and there is a link for each letter of the alphabet.

If your agency DOES NOT HAVE AN ACCOUNT, go to Section 2 below.

1. Select your agency’s name from the list
2. Select a pick-up location
3. Select rental start and end dates/times and click search
4. Select the branch for pickup.
5. Select the car type to rent.
6. Enter renter's identification information
7. Verify and submit your reservation

Section 2: If your agency or office is located in the Richmond area and the agency DOES NOT have an account established with Enterprise Rent-A-Car visit the OFMS website: http://fleet.dgs.virginia.gov/to get information on how to set up an account for your agency.

D. Short-Term Trip Vehicles Fuel Cards: (Vehicles owned by Enterprise Rent-A-Car)

1. To obtain a fuel card for Short-Term Trip Vehicles, your agency must set up an account with Mansfield Oil.

1. To set up your Mansfield/Voyager fuel card account contact Scarlett Skinner at Mansfield Oil Government Services, 800-255-6699 or direct 678-450-2074 or Email: sskinner@mansfieldoil.com In the e-mail include:

• Statement of Purpose
• Contact and Agency information Example: I need to set-up an account for a fuel card for the Commonwealth’s Short-Term Trip Vehicles that are owned by Enterprise Rent-A-Car. My name is Sally Jones, Administrative Assistant at the Department of General Services. My contact information is…………

If you have questions which need to be addressed by OFMS about the fuel card program, call 804-367-6935.

1. If your account is already set up, you only need to order cards to support your anticipated rental needs. You should be able to do this through your web access to Mansfield Oil or you may call 800-255-6699.

Office of Fleet Management Services - Policies & Procedures Manual 17 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 Section 4: Maintenance and Care of Vehicles A. General: Vehicle maintenance is the responsibility of the agency that owns or is assigned a vehicle from OFMS. Each agency should assign a specific individual(s), an Agency Transportation Officer, to be responsible for monitoring and controlling the routine maintenance and repair of vehicles.

For OFMS leased fleet vehicles, agencies must advise their drivers to contact the OFMS Vehicle Management Control Center (VMCC) for all servicing, repairs, breakdowns, and accidents. When an OFMS leased fleet vehicle is inoperable, the driver shall call the VMCC to arrange for towing or on-site repairs, or for the transportation of the driver and any passengers to a safe location.

Agency owned vehicles should be maintained in accordance with agency policies and procedures and vehicle specific preventive maintenance schedules. Agencies may contact OFMS for assistance in developing agency specific policies and procedures.

B. Routine Maintenance: Drivers of state-owned vehicles or an individual designated by the agency shall routinely check their vehicles to insure proper oil level, water and antifreeze for radiators, wear on belts and proper inflation of tires. This service should be performed at least weekly and/or at time of fueling.

Vehicles should be washed, interior vacuumed, and windows cleaned as needed, using the lowest cost option unless authorized. OFMS, VDOT shops, and commercial washes can perform this.

C. OFMS Leased Fleet Vehicle Servicing: It is the responsibility of the agency to ensure OFMS leased fleet vehicles are serviced at least once each 6,000 miles or six months, whichever comes first. This service frequency should be more often if the vehicle is routinely operated in dusty or dirty environments. The driver or the designee shall communicate with and follow the instructions from the VMCC for vehicle services. Such servicing is to include an oil and oil filter change, an inspection of the air filter, chassis lubrication and a visual inspection of the belts, hoses and tires.

D. OFMS Leased Fleet Vehicle Repairs: Mechanical trouble or deficiencies concerning an OFMS leased fleet vehicle shall be brought to the attention of the VMCC, the Agency Transportation Officer, and the person responsible for vehicles at the agency, institution or work location.

Repairs or component replacements are managed by VMCC. Drivers notify VMCC for emergencies and follow instructions. Authorization from VMCC is required before commercial repairs.

Office of Fleet Management Services - Policies & Procedures Manual 18 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866

E. OFMS Leased Fleet Up-fit, Modification, Signage: Agencies may modify and up-fit leased vehicles per their mission. Costs are agency responsibility. Signage must relate to official business. Vehicles must be restored to original condition before return at agency expense.

F. Cost Responsibility: OFMS covers repairs, maintenance, and normal wear components. Drivers must not negotiate with vendors; payment is handled by VMCC or OFMS, not drivers.

Repairs due to improper maintenance, negligence, or abuse may be charged to the assigned agency.

Decisions by the State Fleet Administrator on repair costs, excluding accidents, may be appealed in writing to the DGS Director.

Section 5: Fuel Program

Fuel for OFMS leased vehicles must be obtained from OFMS, VDOT, or Voyager cards. Voyager locations are listed at https://www.fleetcommanderonline.com/app/public/merchantLocator.do

Use only unleaded regular fuel in gasoline vehicles; use mid-grade or premium if necessary or per manufacturer. E85 in Flex-Fuel vehicles. Use self-service pumps; fuel cards are provided.

Drivers MUST enter correct odometer readings (no tenths) at all fueling sites. OFMS will monitor reports and contact those with errors. Enforcement is strict.

OFMS will notify Agency Transportation Officers of unusual fuel transactions, who have 15 days to investigate and respond.

Office of Fleet Management Services - Policies & Procedures Manual 19 Department of General Services - Serving Government. Serving Virginians.Vehicle Management Control Center (VMCC) 1-866-857-6866 A. Agency Fuel Card Management Policies & Procedures Listed below are the responsibilities of the DGS Contract Administrator and the Agencies that use the DGS Statewide Fuel Card Program or Alternative Fuel Program: This card program shall be managed in a manner consistent with all applicable State accounting policies and procedures related to the use of charge card programs. Agencies assume ultimate responsibility for employees’ use of the card, as well as the accountability for the physical security of the fuel cards. Agencies shall designate Fuel Card Custodians to maintain the rental vehicle fuel cards, to monitor fuel cards assigned to specific vehicles and manage their daily use. Agencies shall also designate Fuel Card Account Custodians to perform the fiscal and administrative functions required to appropriately manage the fuel card program for the agency. Rental fuel cards used in conjunction with the Enterprise rental car contract shall only be used at commercial retail fuel stations.

B. Fuel Card Custodian The Fuel Card Custodian assumes responsibility for the physical security of a Commonwealth of Virginia Fuel Card (Mansfield/Voyager Card, Blossman Gas Card, and Clean Energy Card) and its PIN (Personal Identification Number). The Fuel Card Custodian may delegate use of the card, but assumes responsibility for card transactions.

The Fuel Card Custodian shall perform duties that include, but are not limited to:  Ensure physical security of Fuel Cards (for example, in a locked desk drawer). The card may not be left in the custody of a vendor.  Maintain a written record of all persons who have physical access to the Fuel Card (for example, a sign-out sheet for the card, or a list of persons who have keys to the locked desk drawer).  Ensure that the card is used only for appropriate purchases (described below), and in conjunction with State business.  Remind all rental card users to use commercial retail sites only.  Ensure users of rental vehicles, and rental vehicle fuel cards turn in receipts of purchases from commercial retail fuel sites.  Ensure all documentation of card use is forwarded to the Fuel Card Account Custodian.  Inform DGS Office of Fleet Management Services of any change in the Fuel Card Custodian’s contact information.

C. Fuel Card Account Custodian The Account Custodian assumes responsibility for reviewing card activity to ensure appropriate use. In addition, the Account Custodian should not be a card user.

Account Custodian duties include reviewing monthly statements for appropriateness, reconciling charges, and processing payments.

Office of Fleet Management Services - Policies & Procedures Manual 20 Department of General Services - Serving Government. Serving Virginians.

VMCC 1-866-857-6866: Report infractions, maintain usage records, ensure proper use, and update contact info with DGS.

A Fuel Card assigned to an OFMS leased fleet vehicle can be used to purchase:  Fuel, either regular unleaded gasoline or E85 if the vehicle is capable of using E85.  Compressed Natural Gas or Propane if the vehicle is equipped.  Car washes  In out-of-area emergencies only: parts and labor for towing, road service, and mechanical repairs, if approved at the time of the occurrence. If the vehicle is an Enterprise Rental, you must follow the procedures outlined in the Enterprise rental packet. Enterprise is responsible for any costs associated with those vehicles during roadside emergencies not the Commonwealth. If the vehicle is a permanently assigned vehicle from OFMS, then you must call the VMCC at 1-866-857-6866 for any roadside emergency. Failure to do so will result in your agency being responsible for any charges on the fuel card. For agency owned vehicles, please follow the guidelines prescribed by your Agency Transportation Officer.

Fuel cards for leased OFMS vehicles cannot be used for food, beverages, towing, repairs, or other goods/services.

Agency-owned vehicle fuel cards may purchase fuel (gas, E85, diesel), CNG/Propane, car washes, and repairs if authorized by Mansfield.

DGS Contract Administrator monitors agency card activity for delinquencies, inactivity, and misuse; ensures training and support from vendor.

Office of Fleet Management Services - Policies & Procedures Manual 21 Department of General Services - Serving Government. Serving Virginians.

Vehicle Management Control Center (VMCC) 1-866-857-6866 The DGS Contract Administrator will electronically monitor all fuel card accounts in the program. If an agency has questions regarding the Commonwealth of Virginia Fuel Card Program, please contact:

The Office of Fleet Management Services (804) 367-6525 Section 6: Mileage Mileage for OFMS leased fleet vehicles is collected and reported to OFMS through the fuel card readers at VDOT, OFMS and commercial fueling sites. Drivers MUST enter correct odometer readings, no tenths, into the card readers at all VDOT, OFMS and commercial self-service fueling sites. Agencies that have OFMS leased fleet vehicles that do not fuel at VDOT, OFMS or a commercial fueling site must submit a monthly mileage report on Form CP-6 or an Excel spreadsheet. Form CP-6 can be found on the OFMS website at http://fleet.dgs.virginia.gov/Section 7: Payment of Bills OFMS will bill the user agencies monthly. Agencies are expected to process their bills for payment within 30 days of receipt of bill from OFMS. Bills delinquent by more than 45 days will be turned over to the comptroller for appropriate action. Continuous late submission of mileage reports or late payment of bills by an agency may result in the recall of vehicles, or a prohibition on new assignment requests, and replacements Office of Fleet Management Services - Policies & Procedures Manual 22 Department of General Services - Serving Government. Serving Virginians.

2

TABLE OF CONTENTS

PART DESCRIPTION

PAGE

PART I

AUTHORITY................................................................................................. 3

OPINION OF THE ATTORNEY GENERAL................................................... 4

PART II

DESIGNATION OF STATE AGENCY .......................................................... 6

PART III

INVENTORY CONTROL AND ACCOUNTING SYSTEM............................. 7

PART IV

RETURN OF DONATED PROPERTY ......................................................... 9

PART V

FINANCING AND SERVICE CHARGES.................................................... 10

PART VI

TERMS AND CONDITIONS ON DONABLE PROPERTY.......................... 13

PART VII

NONUTILIZED DONABLE PROPERTY..................................................... 17

PART VIII FAIR AND EQUITABLE DISTRIBUTION ................................................... 18

PART IX

ELIGIBILITY ............................................................................................... 20

PART X

COMPLIANCE AND UTILIZATION ............................................................ 23

PART XI

CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND PRIVATE GROUPS .. 26

PART XII

AUDIT......................................................................................................... 27

PART XIII COOPERATIVE AGREEMENTS................................................................ 28

PART XIV LIQUIDATION............................................................................................. 29

PART XV RECORDS ................................................................................................. 30

PART XVI FORMS ...................................................................................................... 31

Exhibit 1 – Distribution Document and Invoice ........................................... 32

Exhibit 2 – Surplus Property Transfer Document (Standard Form 123) ..... 34

Exhibit 3 – Combat-Type Aircraft Conditional Transfer Document ............. 37

Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document...... 42

Exhibit 5 – Vessel Conditional Transfer Document (50 feet or more)......... 47

Exhibit 6 – Nondiscrimination Assurance ................................................... 52

Exhibit 7 – Organization of the Virginia State Government......................... 53 3

PART I

AUTHORITY CHAPTER 746 ACTS OF ASSEMBLY OF 1984 §2.2-1123. Acquisition of surplus materials from the United States government.

The Division is designated as the agency of state government responsible for acquiring surplus personal property, including but not limited to materials, supplies, and equipment, by purchase, gift, or otherwise, from the United States government or any of its agencies for distribution to departments, agencies, institutions and political subdivisions of the Commonwealth and to eligible, nonprofit, nongovernmental organizations for use in such organizations’ activities within the Commonwealth. The acquisitions shall be made, when in the judgment of the Division, it shall be advantageous to the Commonwealth to do so. The property may be acquired for storage and subsequent distribution or for immediate distribution. The Division may collect the purchase price of any such property, if applicable, and service charges sufficient to defray the costs of carrying out this program from entities to which it distributes the property. The Division shall publish a plan, or plans, which meet the requirements of the Federal Property and Administrative Services Act of 1949, as it may be amended from time to time, and any similar federal statutes requiring such plan.

The Division may, by general rule or special order, delegate to any using department, agency, institution, political subdivision, or eligible, nonprofit, nongovernmental organization the authority to acquire such property directly from the federal government rather than through the Division, whenever it shall appear to the satisfaction of the Division that it is advantageous to do so. The Division may prescribe regulations for the acquisition of such property by entities to which it delegates its authority. (1984, c. 746, § 2.1-445.1; 2001, c. 844.) Source: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-1123 4

OPINION OF THE ATTORNEY GENERAL5 6

PART II

DESIGNATION OF STATE AGENCY

The Code of Virginia §2.2-1123, effective 2001, designated the Department of General Services (“DGS”), as the official agency of the Commonwealth of Virginia to administer the State Plan of Operation, hereinafter referred to as the Plan, throughout the Commonwealth pursuant to the provisions of the Title 40 of the USC, Subtitle 1, Chapter 5, Section 549; FMR 102-37, 102.37.350, as amended, GSA regulations, and this Plan.

The activity to administer the State Plan of Operation in DGS is the Virginia Federal Property Agency, hereinafter referred to as the State Agency. The State Agency will administer all phases of the operation including acquiring, storing, and distributing Federal property to eligible public and nonprofit agencies (“donees”), establish regulations and procedures, assess service charges, maintain property accounting systems, and as required, execute certifications and agreements pertaining to this Act with eligible agencies, institutions, and organizations of the Commonwealth, other States, and agencies of the Federal government. Financial accounting is maintained by the Bureau of Fiscal Services of the Department of General Services.

Under the general administration of the Director, State Surplus Property, the State Agency is directed and supervised by the Manager who is responsible for all phases of the operation. The manager has assigned staff including clerical, screeners, distribution centers, and driver personnel. In addition, the Manager cooperates with the State surplus property activity. The State Agency is a special fund activity paying all expenses from service charge revenues.

Virginia operates two distribution center facilities. The Richmond center is State-owned and includes a 55,000 square foot warehouse within a fenced storage area on a 10-Acre site located at 1910 Darbytown Road, Richmond, Virginia. The second distribution center services the Southwest Virginia region and is located in a rented 45,000 square foot retail facility at 800 East Main Street, Wytheville, Virginia. Both distribution centers are co-located with State Surplus property offices and facility costs are equitably shared.

The managers of Federal and State surplus property activities operate under the Director, State Surplus Property as the Administrator, with the Director, DGS Procurement Services as the next higher authority. 7

PART III

INVENTORY CONTROL AND ACCOUNTING SYSTEM

A.

Property Accountability

Accountability records will be maintained on an automated inventory system for all Federal Property transferred to the state agency, e.g. recording receipts, issues, inventory balances, dates of receipts and issues, 123 document numbers, Federal stock numbers, warehouse locations of property, returns to stock, and transfers to other agencies.

Special attention and accountability will be given to all single items received with an original acquisition cost of $5,000.00 or more including motor vehicles. Each recorded item with an acquisition cost of $5,000.00 or more will be designated a compliance item, which incurs an eighteen month compliance period. Items received into inventory with an original acquisition of $500.00 or less may be converted to lots, or group units of issues, where such conversions would increase donation potential.

Property acquired by donation to the SASP for its own use will be handled as any other donation to an agency of state government.

B.

Receiving and Verifying Property

When property is received, a physical inspection and count is made and checked against the approved Federal Form SF-123 and/or available shipping documents. Receiving notations will be made on the document.

When differences in counts are discovered, an overage and shortage report will be prepared and submitted to the GSA allocation office and GSA regional office under the provisions FMR 102.37.70, 102-37.350. In cases of overages where a line item acquisition cost is $500 or over, a separate 123 document will be submitted to GSA allocation office for donation approval.

Property items received and issued are posted to the inventory system.

Posted transactions show date, document number, receipts, issues, and balance.

It refers to the identified receiving and issue document and therefore provides the item history.

A verification of property on hand will be accomplished each year with a physical inventory or automated cycle count system. A written list or inventory count tags identifying the items is prepared and checked with the inventory system. Inventory differences which cannot be accounted for by the distribution center supervisor will be reported to the State Agency Manager and adjustments may be made only with the Manager’s written approval. All reasonable efforts to reconcile the differences will be made before adjustments are approved. A 8 verification of items with an acquisition cost of $5,000 or more and passenger motor vehicles will be made at least two times each year.

All property distributed by the distribution center is issued on the form “Distribution Document and Invoice” Exhibit 1. Property picked up directly from a holding agency by a donee is issued on the form, “Direct Transfer Document” Exhibit 2.

C.

Fiscal Accounting System

The State Agency will accept payment for services only in the form of checks, credit cards, or Interdepartmental Transfer Invoices, drawn or issued by, and in the name of, the approved donee. All receipts are deposited with the Treasurer of Virginia to the account of the Special Fund. All disbursements are made by the Treasurer from the account, on receipt of invoices properly certified, to the State Comptroller.

The fiscal accounting system is acceptable to the Department of General Services, and approved by the State Comptroller, along with other DGS fiscal systems. The system is composed of a chart of accounts, a donee jacket type account receivable subsidiary ledger, receipts ledger which accounts for all cash received, and a general ledger which accounts for all assets, liabilities, and expenses. An accrual statement of profit and loss and a balance sheet is prepared at the close of each month.

The fiscal accounting records are maintained as a separate Special Fund by the Department’s Bureau of Fiscal Services accounting for all revenues, disbursements, assets, and liabilities. 9

PART IV RETURN OF DONATED PROPERTY

A. Conditions and Donee Reporting Procedure

Property that is still usable as determined by the State Agency but not placed in use within one year from date of acquisition or ceases to be used during the 12 or 18 month use restriction period thereafter shall be reported to the State Agency for disposition instructions. The report in writing shall give item identifying data, condition, reasons for non-utilization, and recommended action.

B. Disposition Instructions

The State Agency will review the donee report and if it is determined the donee has not conformed to the terms and conditions as stated on the donation document, Exhibits 1 or 2, it will authorize in writing and in accordance with General Services Administration regulations, a procedure deemed appropriate for the best utilization or disposal of the item. The authorization may include:

1. Return the item to the State Agency distribution center at donee expense and with no reimbursement of service charges.

1. Transfer item to another donee, SASP, or Federal agency.

1. Authorize sale, coordinated with GSA, if there are no other requirements.

1. Authorize cannibalization or secondary utilization.

1. Authorize scrapping, in coordination with GSA.

1. Amend, modify, or grant releases on terms and conditions in conformance with GSA Regulations.10

PART V

FINANCING AND SERVICE CHARGES

A.

Policy Statement The Virginia State Agency is classified as an Internal Service Fund activity and the Agency Manager is responsible for the management of the fund. There are no appropriations and service charges are the principle source of revenue to cover the costs of operation. Sales/compliance proceeds, transportation services, and gifts may produce additional revenue. Service charges are assessed for all property transactions and services. It is the policy of the Agency that service charges shall be fair, equitable, and minimal, but established to maintain a financially sound agency. All operating costs are included in this Internal Service Fund activity including, but not limited to, all employee costs, screening, transportation, maintenance, utilities, administration and accounting, supplies, equipment, packing and handling, compliance and utilization, insurance, fund operation, capital maintenance and outlay.

B.

Factors in Establishing Charges Charges and fees for service will be assessed at a level that the state Agency estimates will be sufficient to recover its expenses, including reasonable indirect costs of administering the Surplus Property Program. In determining charges and fees, consideration will be given including but not limited to:

Expenses of operations as set out in part V, A.

Original government acquisition cost or estimated fair market value of the property.

Type and nature of the property, which would indicate its usefulness.

Condition or quantity of the property.

Intended use of the property.

Special processing or handling or transportation or services.

C.

Method of Establishing Charges

Funds accumulated from charges and fees, as well from other sources such as sales, compliance actions, gifts, grants appropriations, etc. will be used to cover direct and indirect costs of the State Agency’s operation, to accumulate and maintain a working capital reserve, to purchase necessary equipment, to rehabilitate and purchase replacement parts for donable surplus property, to provide, maintain, or make improvements to State Agency offices and distribution center facilities, to purchase necessary equipment and supplies and any other such purchases deemed necessary 11 to carry out the State Agency’s operations.

General Guide for Item Service Charges Charge Percentage of Acquisition Cost Acquisition Cost

0-35

$0-5,000

0-30

$5,001-10,000

0-25

Over $10,000

D.

Reduced Charges for Surplus Items

Where the State Agency provides minimal services in connection with the acquisition of property, fees and charges will be fair and equitable, commensurate to operational expenses, with consideration given to the services provided and determined in accordance with guidelines set out in part V, B above.

The State Agency will provide property at a minimal cost to nonprofit providers of assistance to homeless and impoverished individuals. It may also waive charges and fees to said providers of assistance to homeless and impoverished individuals, providing it is done in a manner that is fair and equitable to all donees.

E.

Reduced Charges for Direct Pickup When property is screened and/or picked up directly from a holding agency by a donee, the service charge will be reduced on a pro-rata basis for the specific services not rendered by the State Agency such as screening, transportation, and warehousing costs. The charges will be reduced 10-25 per cent of the normal or usual service charges when the donee performs part of the overall services. In general, the remaining factors will apply in establishing service charges because such transactions must also bear a part of the total operating costs.

F.

Use of Funds Revenue derived from service charges as well as from other sources such as sales, compliance action, gifts, and appropriations may be used to cover all direct and indirect costs of the agency including personnel, capital purchases and improvements for office and distribution center facilities, property rehabilitation, equipment purchases and maintenance. The current State Budget major classifications cover Personal Services, Contractual Services, Supplies and Materials, Transfer Payments, Continuous Charges, Property and Improvements, Equipment, Plant and Improvements. The Classifications may be changed, added, or deleted. Capital Outlay plans and expenditures must receive approvals in accordance with Commonwealth of Virginia requirements. The integrity of the special fund is assured in that the funds are to be used only in the operation of the State Agency and the promotion of the program. 12

G.

Working Capital Reserve Fund

A financial reserve fund may be accumulated and maintained in an amount not to exceed the total expenses of the State Agency for the prior two years, plus an inflation factor, and current activity cost pace. Funds in excess of the above may be accumulated provided the State Agency has written plans for increased needs such as maintenance costs, capital outlay for new facilities, expansion, repairs or remodeling, new programs, equipment purchases, and personnel costs. If funds should accumulate in excess of that described above, then service charges will be reduced to lower the special fund to the authorized level. Proceeds from any facility sale will be deposited to the fund and subject to the provisions of this paragraph.

H.

Deposits and Investments All funds derived from service charges or other sources are deposited with the Treasurer of Virginia. The State Agency is not authorized to invest funds. 13

PART VI

TERMS AND CONDITIONS ON DONABLE PROPERTY

A.

Certification by Donee on all Donated Property The authorized representative of the donee certifies and agrees to all the terms, conditions, reservations, and restrictions included on the issue documents shown as exhibits Part XV.

Exhibit 1 – Distribution Document and Invoice.

Exhibit 2 – Direct Transfer Document.

B.

Additional Certification by Donee for Donation of Aircraft and Vessels

Exhibit 3 – Combat-Type Aircraft Conditional Transfer Document.

Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document.

Exhibit 5 – Vessel Conditional Transfer Document.

C.

Amendment and Release of Terms and Conditions

1. The State Agency may amend, modify, or grant releases of any term, condition, or restriction it has imposed on donated items in accordance with the standards prescribed in Exhibit 3, Part XV in this plan provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State Agency and made a matter of record.
2. Pursuant to FPMR 101-44.208(h) the State Agency may grant approval to the donee to cannibalize or accomplish secondary utilization of an item which is subject to the terms, conditions, reservations, or restrictions as listed on the Distribution Document and Invoice, Exhibit 1. The State Agency may issue an item for the purposes of cannibalization or secondary utilization with approval for such action marked on the Distribution Document and Invoice. If a donee finds that it cannot use the donated item for the purposes for which acquired, and therefore wishes to cannibalize it or accomplish secondary utilization, a written request for an approval must be submitted to the State Agency. The request shall give item identification, condition, and proposed use. The State Agency will respond in writing and may grant approval when it is determined that such action appears to be the best utilization of the item.

1. Standards to amend or grant releases In accordance with Part VI of the plan of operation, the State Agency may amend or grant releases during the period of restriction from the terms, conditions, 14 reservations or restrictions it has imposed on donated property; in accordance with the following standards provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State Agency, and have been made a matter of record: (a) Secondary utilization or cannibalization. Secondary utilization or cannibalization may be accomplished provided that: (1) Disassembly of the item for use of its component parts for secondary use or repair and maintenance of a similar item has greater potential benefit than utilization of the item in its existing form; (2) Items approved for disassembly or cannibalization will remain under the period of restriction imposed by the transfer document pending completion of the proposed secondary use or cannibalization; and (3) A written report of such action is made by the donee to the State Agency, including a list of all components resulting from the secondary utilization or cannibalization which have a single item acquisition cost of $5000 or more.

These components will remain under the restrictions imposed by the transfer document. Components with a single item acquisition cost of less than $5000 will be released from the restrictions imposed by the transfer document.

However, these components will continue to be used or be otherwise disposed of in accordance with applicable law and regulations. (b) Trade-in of an item on a similar replacement. Written approval is required from the General Services Administration for property under Federal restriction.

An item of donated personal property may be traded in or used as whole or part payment for another like item of property provided: (1) The item being traded in is not, when the request is made, in compliance status for violation of the terms, conditions, reservations or restrictions placed on it; (2) The item being traded in has been used by the donee for eligible purposes for at least 6 months from the date of being placed in use, and it has been demonstrated that the trade-in will result in increased utilization value to the donee; (3) The trade-in is on a one-for-one basis only, i.e., one donated item being traded for one like item having similar use potential, (4) The item being acquired has an estimated market value at least equal to the estimated market value of the item being traded in; and 15 (5) The item acquired is made subject to the period of restriction remaining on the item traded in. (c) Abrogation. Except in cases involving the failure to use or the misuse of donated property, abrogation to restrictions imposed by the State Agency in the transfer instrument (reference 41 CFR 102-37.465) may be authorized upon payment to the State Agency of an amount representing the fair market value at the time of donation less a credit for the time the property was used for the purpose for which donated, during the period of restriction, and provided that the State Agency determines that such action will not result in a windfall revenue to the donee, and provided further that the property has been used for at least 12 months from the date of being placed in use or otherwise under Federal restriction. (d) Revision of the acquisition cost. The acquisition cost of an item may be revised provided that the request therefore is made in writing by the donee, and it is determined by the State Agency that the listed acquisition cost is unrealistic in view of its research and development costs, its incompleteness due to missing parts, or its generally deteriorated condition. (e) Destruction and abandonment. A donated item of personal property may be destroyed or abandoned by a donee when it is determined that the item has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The determination shall be based on a finding made in writing by the State Agency and the State Agency shall prescribe the means and methods whereby the property shall be destroyed or abandoned. (f) Enforcement of compliance. The enforcement of the terms and conditions, reservations and restrictions imposed by the State Agency of donated property, or the remedy of breaches of such terms and conditions, may be satisfied: (1) When payment is made to the State Agency of any and all fair rental values due and payable for any unauthorized use of donated property; (2) When payment is made to the State Agency of either the fair market value or gross proceeds of sale, whichever is in the best interest of the State, for the unauthorized disposal or destruction of donated property; or (3) When donated property is recovered by the State Agency accountability and distribution of such property is the responsibility of the State Agency. (g) Reduction in the period of restriction. Provided an item of donated property is not in compliance status, a reduction in the period of restriction may be authorized when a revised standard covering the period of restriction is promulgated by the State Agency. 16

(h) Limitations. These provisions are not applicable to:

(1) Donated military-type aircraft, or other items of property on which GSA has imposed special handling condition or use limitations.

(2) Property which was not placed in use for the purposes for which acquired within one year from the date the property was placed in use, and continued in use for one year from the date the property was placed in use, except with respect to secondary use or cannibalization as provided in FMR 102-37.290 through 102-37.320.

(3) The following conditions are applicable to items with a unit acquisition cost of $5,000 or more and passenger motor vehicles:

(i) The property shall be used only for purpose(s) for which acquired and for no other purpose(s).

(ii) There shall be a period of restriction which expires after the property had been used for the purpose(s) for which acquired, for a period of 18 months, from the date the property is placed in use, except for such items of major equipment listed hereon, on which the State agency designates a further period of restriction.

D. Agency Imposition of Terms

The State Agency may impose reasonable terms, conditions, reservations and restrictions on the use of donable property items other than those with a unit acquisition cost of $5,000 or more, and passenger vehicles.17

PART VII

NONUTILIZED DONABLE PROPERTY

A.

State Agency Policy The State Agency will dispose of property in its possession which cannot be utilized by donees in the State, and the property will be disposed of in accordance with the provisions of FMR 102-37.290 through 102-37.320.

B.

Transfers to Other State Agencies

Property will be offered to other State Agencies by circulating a property list or verbal notification. Visits by representatives of other state agencies to inspect and select unneeded property are encouraged. Transfers of property will be accomplished by processing SF123 by the requesting state submitted through the GSA office subject to disapproval within 30 days.

C Report Unneeded Usable Property

The State Agency may report at anytime unneeded usable property, which is not required for transfer to another state, to the GSA regional office for redistribution or other disposal. The property shall be identified, marked as to Federal utilization potential, and reimbursement claims.

D.

Disposition

GSA will notify the State Agency of the Disposition to be taken and generally this will be a reutilization transfer or report for sale. With approval of the regional office, property to be sold may be turned in to the GSA Sales Center or a designated DOD Property Disposal Office. Generally scrap metal will be sold on State Agency site.

Reimbursement may be claimed in accordance with GSA Regulations.

E.

Destruction or Abandonment When the State Agency finds that it has property in its possession that is unusable by donees in the State or other States and otherwise is determined to have no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale, the State Agency will proceed promptly with the destruction or abandonment of such property subject to the disapproval of GSA within 30 days of notice to it by the State Agency. 18

PART VIII

FAIR AND EQUITABLE DISTRIBUTION

A.

Policy

The State Agency is responsible for the fair and equitable distribution of allocated surplus property to all eligible donees in Virginia. The distribution plan is based on needs and an evaluation of the relative needs, resources, and utilization ability of all the eligible agencies and institutions. Due consideration and assistance will be offered the more needy recipients.

B.

Determination Relative needs, resources, and utilization abilities will be determined by reviewing donee property requests and justifications, emergency status, program and project priorities as given by responsible authorities, and consulting with advisory persons and bodies such as public and private institutions, Office of Emergency Services, State Departments of Planning and Budget, Commerce, Education, Health, Social Services, and Employment Commission. When the Governor declares a state of emergency, the State Office of Emergency Services may direct priorities of property issues. A general ranking or index number obtained from the Department of Planning and Budget will be used as a factor to determine the relative needs and resources of the cities and counties. To determine relative needs and resources of the nonprofit health and education institutions the State Agency will seek aid from bodies such as the Council of Independent Colleges in Virginia, Virginia Hospital Association, and Virginia Association for Retarded Children. Key individuals such as purchasing officials and local administrators of eligible donees will be consulted.

C Application In general, the need, resources, and utilization abilities, determination will apply to major items and special categories of equipment and material. Examples may be: vehicles, construction equipment, materials handling equipment, machine tools, generators, ADP equipment, complicated scientific equipment, vessels, and aircraft.

D.

Requests by donees Authorized representatives of donee institutions are invited to submit a listing of all needed items in the categories, but not limited to, as provided in paragraph C. Virginia Agency screeners will be guided in their search and selection of property according to the known want lists.

Authorized donee representatives may also submit to the State Agency requests for specific identified items located anywhere in the United States. Donee representatives may meet with Agency screeners at Federal installations to inspect specific items to determine if suitable for their needs. Property selected and approved for donation may be picked up directly by the donee if so requested. 19

E.

Property Assignments to Donees

Assignments of equipment as it becomes available will be made by the State Agency as provided in paragraph B and C.

The State Agency will submit applications to GSA for specific identified property requested by donees and arrange for direct pickup by the donee from the holding agency when so requested and/or practicable. Direct pickup may also be arranged, when economical, for needed items but not specifically identified.

The majority of miscellaneous items, including many major items, will be screened and selected by Virginia Agency screeners on both the Internet and at Federal installations for application and shipment to the State Agency distribution centers. Major items as described in paragraph C will be offered to donees conforming to paragraph B.

Miscellaneous items, not including major items, will be available at the State Agency distribution center on a supermarket plan, first-come, first-served basis. Major items located at the center, offered to donees according to requests, but not picked up, will be available to any other eligible donee on the first-come, first-served basis. Appointments to visit the distribution centers are not required, and authorized representatives of donees may make such visits to inspect and select property on any State work day. 20

PART IX

ELIGIBILITY

A.

General

1. Public Agencies Surplus personal property may be donated through the State Agency to any public agency in the Commonwealth of Virginia, or political subdivision thereof, including any unit of local government or economic development district; or any department, agency, instrumentality thereof, including instrumentalities created by compact or other agreement between States or political subdivisions, multi-jurisdictional sub-state districts established by or pursuant to State law, or any Indian tribe, band, group, pueblo, or community located on a State reservation. Surplus property acquired must be used by the public agency to carry out or to promote for the residents of a given political area one or more public purposes such as conservation, economic development, education, parks and recreation, public health, public safety, and emergency services.
2. Nonprofit Educational or Public Health Institutions, Programs that

Provide Services to the Homeless Surplus personal property may also be donated to nonprofit educational or public health institutions as determined under Section 501 of the Internal Revenue Code of 1986 such as: medical institutions, hospitals, clinics, health centers, nursing homes, schools, colleges, universities, schools for the mentally disabled and physically handicapped, child care centers, educational radio and television stations, museums, libraries, and programs for Older Americans as described in FMR 102-37.380 through 102-37.430 and 102-37.445. An eligible nonprofit educational or public health institution or organization that acquires surplus personal property must use it for the primary function(s) for which it was received and not for any unrelated or commercial purpose or program.

B Determination of Eligibility The State Agency is responsible for the determination that an applicant is eligible as a public agency or a nonprofit educational or public health institution or organization to participate in the program and receive donations of surplus personal property.

Approvals shall be granted only when an applicant meets the provisions and criteria for approval as stated in the Law and FPMR 101-44.207. The eligibility files for skilled nursing homes, intermediate care facilities, alcohol and drug abuse centers, programs for older individuals and other programs that are certified, approved and/or licensed annually, must be updated every three years.

C.

Eligibility Procedures 21

1. An agency, institution, or organization interested in receiving Federal Surplus Property must establish eligibility by requesting an eligibility application form, complete the requested information, and mail the entire application material to the State Agency.
2. The State Agency will review the application and notify the applicant of

approval, disapproval, or the need of additional required information.

D.

Information to be Included in the Application for Eligibility

1. Legal name, address, telephone and fax number, email address
2. Status of applicant (a) Public Agency: to designate the type such as state agency, city, county, town, multi-jurisdictional authority, college, university, school, school systems, hospital, clinic, health center, Indian reservation, or aging center. (b) Nonprofit educational institution: to designate type such as college, university, kindergarten, elementary, high school, vocational, technical, special, mentally retarded or physically handicapped, rehabilitation, child care, aging, museum, and library and providers of services to the homeless. (c) Nonprofit health institutions designate type such as medical institution, hospitals, clinics, health centers, skilled nursing homes.
3. Prepare a public or nonprofit agency application. If nonprofit, include as evidence, a copy of the tax exemption under Section 501 of the Internal Revenue Code of 1986.
4. Concise description of the applicant’s public program such as naming departments, services or activities, plants, facilities, and staff. If a nonprofit health or educational institution provide concise descriptions of the specific offerings, services, plants, facilities, and staff so State Agency can determine eligibility qualifications and definitions of eligible entities.
5. Evidence of approval, accreditation, or licensing. If such evidence is lacking, a letter of evaluation from appropriate program authority such as: county, city, state department, college or university, or school system, may be submitted in lieu of such evidence.
6. The Nondiscrimination Assurance, Exhibit 6, is executed by the donee authorized representative as a requirement for approval of the eligibility application, and prior to acquiring surplus property. 22 Assurance of Compliance with GSA Regulations under Title VI of the Civil Rights Act of 1964, Section 606 of Title VI of the Federal Property and Administrative Services Act of 1949, as amended, Section 504 of the Rehabilitation Act of 1973, as amended, Title IX of the Education Amendments of 1972, as amended, and Section 303 of the Age Discrimination Act of 1975 and Civil Rights Restoration Act of 1987.
7. Application to be signed by the administrative head or other responsible official of the applicant who has authority to act for the applicant in all matters pertaining to Federal surplus property including the eligibility application, acquisition of Federal surplus property, obligation of necessary funds, execute documents, certification to terms, conditions and restrictions, use, and disposal of the property.
8. Supplementary information may be requested as to relative needs, resources, and utilization abilities, to aid the State Agency in the fair and equitable distribution of available property.
9. When an eligibility approval is granted a donee, the administrative head or other responsible official, will be requested to designate a person to handle and be responsible for all affairs pertaining to Federal surplus property. This person may authorize one or more additional persons who may select and sign for property for the eligible recipient. Signatures of all authorized persons will be on file in the State Agency.

E.

Conditional Eligibility In certain cases newly organized activities may not have commenced operations or completed construction of their facilities, or may not yet have been approved, accredited, or licensed as may be required to qualify as eligible donees. In other cases there may be no specific authority which can approve, accredit, or license the applicant as required for qualification. In these cases the State Agency may accept letters from public authorities, either local or State, which the State Agency deems competent such as the board of health or a board of education that the applicant otherwise meets the standards prescribed for approved, accredited or licensed institutions and organizations.

In the case of educational activities, letters from accredited or approved institutions that students from the applicant institution have been and are being accepted may be deemed sufficient by the State Agency. 23

PART X

COMPLIANCE AND UTILIZATION

A.

Donated Items Subject to Compliance and Utilization Reviews on Terms and Conditions Part VI

1. Items with a unit acquisition cost of $5000 or more and any passenger motor vehicle.
2. Items which require special handling conditions or use limitations as

imposed by GSA per FMR 102.-37 Subpart E.

1. Statutory requirement that all items of donated property acquired by the donee be placed into use within one year of acquisition and thereafter used for twelve (12) months, or eighteen (18) months if the acquisition cost was $5000 or more or a passenger motor vehicle.
2. Items with a unit acquisition cost of less than $5000 that may be subject to stock piling as determined by the State Agency.
3. Any property where there is alleged fraud, theft, misuse, or un-authorized disposal.

B.

Reviews

1. The State Agency will conduct compliance and utilization reviews at least once during the period of use restriction for items as described, paragraph A. l. and 2.
2. The review may be accomplished by a questionnaire letter or by a visit to observe the property utilization. Staff members of the State Agency will visit donees to the extent of capabilities in time and costs. In addition to merely surveying compliance and utilization, visits will be constructive and helpful to the donees.

Information will be offered on terms and restrictions; item utilization potential, procedures and special opportunities in acquiring property, and invitation for comments on program improvement.

1. Reports of the review will be a part of the donee item file. The mail questionnaire form will serve as a report. Persons making a review through visitations will also make an item report on utilization, condition, and transfer or disposal recommendation.

C.

Compliance Actions

1. When the utilization survey shows, an item is in eligible use, the report will be so noted and no further action plan is required. 24
2. Deficiencies in utilization may include but are not limited to nonuse or misuse, ineligible use such as loan, rental, or gift, unauthorized cannibalization, disposal or sale, failure to use property in the prescribed time frame, fraud or theft.
3. When deficiencies are discovered, the State Agency will move to remedy the specific case. This will include action to place the item(s) into use for the prescribed time frame, transfer to another donee or state agency, return to the State Agency, approve destruction, abandonment, cannibalization, or report to GSA for reutilization or sale.
4. The State Agency will initiate an appropriate investigation of any alleged fraud in the acquisition of donable property and the GSA will be immediately notified of the allegations and the status of the investigation. The State Agency investigator will prepare a report of the circumstances and findings of the case and it shall be available to all authorized persons.
5. Alleged or reported thefts of surplus property in the custody of the State Agency will be immediately investigated and the details and circumstances reported to the local law enforcement officials and the Regional GSA office.
6. The State Agency will initiate an appropriate investigation of all alleged misuse of donated property and notify GSA of the allegations immediately.
7. The State Agency will take necessary actions to investigate cases of alleged fraud, misuse, or theft and assist GSA or other responsible Federal or State agencies in investigating such cases upon request.
8. The State Agency may enforce compliance action during the period of restriction by requiring payment from the donee under the circumstances and terms listed below: a.

Recover the fair value of the property if it has been disposed of improperly. b.

Recover the fair rental value if the property was used in an unauthorized manner. c.

In enforcing compliance with the terms and conditions imposed on donated property, the State Agency shall coordinate with GSA prior to undertaking the sale of, or making demand for payment of the fair value or fair rental value of donated property subject to any special handling condition or use limitation imposed by GSA, or of donated property which had not been placed into use by the donee within 1 year for the purposes for which acquired or used by the donees for those purposes for 1 year thereafter. Funds derived by the State Agency in the enforcement of compliance will be remitted to GSA involving 25 a breach of restrictions imposed by GSA. The State Agency may retain the funds for the breach of restrictions imposed by the State Agency.

D.

Suspension of Donations The State Agency may suspend donations of property to a donee for non-compliance cases or nonpayment of service charges. 26

PART XI

CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND

PRIVATE GROUPS

A.

General Policy The State Agency will consult advisory bodies and public and private groups, as a matter of general policy as well as in special circumstances, to assist in determining fair and equitable distribution of property based on relative needs, resources, utilization abilities, stated needs, and emergency status of donees.

Reference is made to Part VIII Fair and Equitable Distribution.

B.

Implementation The State Agency will be in contact with advisory bodies and groups such as Departments of the State Government, Virginia Municipal League, Virginia Association of Counties, Virginia Foundation for Independent Colleges, Association of Virginia Colleges and Universities, Virginia Hospital Association, Catholic Diocese Department of Schools, purchasing groups, and political subdivision administrators. Contacts will be person-to-person such as telephone, visits, or correspondence; attendance at meetings and conferences, and general distribution of information with flyers. Expressions of need, and general and specific requirements, will be solicited from the above groups on behalf of all eligible public and private agencies. When expressions of need and interest are received, GSA will be advised of such requirements, including requirements for specific items of property. 27

PART XII

AUDIT

A.

State Agency At the close of each month a Profit and Loss Statement and Balance Sheet is prepared. Expenditures, receipts, and cash balances are verified each month with the State Comptroller by DGS Bureau of Fiscal Services.

B.

Internal Audit The State Agency will be periodically included in internal audits of the Department of General Services. The internal audit will include a review of the financial affairs and operations of the State Agency.

C.

External Audit The State Auditor of Public Accounts will audit the State Agency at least every two years. The audit will include a review of the conformance of the State Agency with the provisions of the State Plan of Operation and the requirements FMR 102-37.345 through 102-37.355. The State Agency will submit a copy of the audit report to the GSA regional office and will report all corrective actions taken with respect to any exceptions or violations indicated in the audit report. The State Auditor of Public Accounts operates under the authority of the Legislative Branch of Government. The State Agency operates under the Executive Branch of Government, Secretary of Administration and Finance, Department of General Services. Refer to Exhibit 7, Organization of the Virginia State Government.

D.

Additional Audits and Reviews

GSA representatives may visit the State Agency to coordinate program activities and review the State Agency operations.

GSA may, for appropriate reasons, conduct its own audit of the State Agency following due notice to the Governor of the Commonwealth of the reasons for such audit.

All records of the State Agency, including financial, will be available for inspection by GSA, GAO, or other authorized Federal activities. 28

PART XIII

COOPERATIVE AGREEMENTS

A.

The State Agency will enter into or review, or revise cooperative agreements with GSA or other Federal agencies pursuant to the provisions Virginia Code §2.2-11.23, Section 203(n) of the Federal Property and Administrative Services Act of 1949, as amended, and FMR 102-37.325. The agreements may include but not limited to:

Use of donable property by the State Agency

Overseas property

Use of Federal facilities and services

Inter-State

B.

Cooperative agreements entered into between GSA and the State Agency may

be terminated by either party upon 60 days written notice to the other party.

Termination of an agreement between a Federal agency designated by GSA and

a State agency, and interstate cooperative distribution agreements, shall be

mutually agreed to by the parties.

C.

The State Agency may enter into such other cooperative agreements with eligible

agencies in the State as may be deemed necessary or advisable. 29

PART XIV

LIQUIDATION

The State Agency will submit a liquidation plan to GSA prior to the actual termination of State Agency activities in accordance with the specific requirements of FMR 102-37.365 through 102-37.370.

The plan will include:

1. Reasons for the liquidation;

1. A schedule for liquidating the agency and the estimated date of termination;

1. Method of disposing of property on hand under the requirements of this part;

1. Method of disposing of the agency’s physical and financial assets;

1. Retention of all available records of the SASP for a 2-year period following liquidation; and

1. Designation of another governmental entity to serve as the agency’s successor in function until continuing obligations on property donated prior to the closing of the agency are fulfilled. 30

PART XV RECORDS All official records of the State Agency will be retained for not less than 3 years, except:

Records involving property subject to restrictions for more than 2 years

will be kept for 1 year beyond the specific period of restriction.

Records involving property in compliance status at the end of the period of

restriction will be kept for at least 1 year after the case is closed. 31

PART XVI FORMS The basic forms with requirements and standards for use by the State Agency are listed below and included as exhibits.

Exhibit 1.

Distribution Document and Invoice Exhibit 2.

Surplus Property Transfer Document (Standard Form 123) Exhibit 3.

Combat-Type Aircraft Conditional Transfer Document Exhibit 4.

Non-Combat-Type Aircraft Conditional Transfer Document Exhibit 5.

Vessel Conditional Transfer Document (50 feet or more in length) Exhibit 6.

Nondiscrimination Assurance Exhibit 7.

Chart: Organization of the Virginia State Government Federal forms may also be accessed from the following link: http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=10977&noc=T Additional forms may also be used to serve State Agency operations. The forms may be added, deleted, or changed, but will conform to department, state, and federal requirements. 3232

Exhibit 1 – Distribution Document and Invoice

DGS-43-008DGS-43-008 COMMONWEALTHCOMMONWEALTH OFOF VIRGINIAVIRGINIA DEPARTMENTDEPARTMENT OFOF GENERALGENERAL SERVICESSERVICES

FEDERALFEDERAL SURPLUSSURPLUS PROPERTYPROPERTY 19101910 DARBYTOWNDARBYTOWN ROADROAD TelephoneTelephone (804)(804) 236-2781236-2781 RICHMOND,RICHMOND, VAVA 2323123231 FaxFax (804)(804) 236-3663236-3663

DISTRIBUTIONDISTRIBUTION DOCUMENTDOCUMENT ANDAND INVOICEINVOICE

DATEDATE INVOICEINVOICE ##

CUSTOMERCUSTOMER (DONEE)(DONEE)

AGENCYAGENCY CODECODE BILLINGBILLING

##CUSTOMERCUSTOMER ##

PHONEPHONE NUMBERNUMBER

(( ))ADDRESSADDRESS

LICENSELICENSE NUMBER:NUMBER: PROPERTYPROPERTY

PARTIALPARTIAL PICKPICK UPUP TAKENTAKEN YESYES NONO

FEDFED SURPSURP DATEDATE

COMPLIANCECOMPLIANCE ITEMITEM CARDCARD ISSUEDISSUED

MAKEMAKE CHECKSCHECKS PAYABLEPAYABLE TO:TO: MAILMAIL CHECKSCHECKS TO:TO:

TRESURERTRESURER OFOF VIRGINIAVIRGINIA DGS/FISCALDGS/FISCAL SERVICESSERVICES

PAYMENTPAYMENT ISIS DUEDUE WITHINWITHIN 3030 PLEASEPLEASE ENCLOSEENCLOSE AA COPYCOPY OFOF POPO BOXBOX 267267

DAYSDAYS OFOF THISTHIS INVOICEINVOICE THISTHIS INVOICEINVOICE WITHWITH PAYMENTPAYMENT RICHMOND,RICHMOND, VAVA 23218-026723218-0267

SS UNITUNIT TOTALTOTAL QTY.QTY. UNITUNIT TOTALTOTAL TRANSFERTRANSFER CC ACQ.ACQ. ACQ.ACQ. && SERVICESERVICE SERVICESERVICE

L.I.#L.I.# ORDERORDER ## ITEMITEM DESCRIPTIONDESCRIPTION RR COSTCOST COSTCOST UNITUNIT CHARGECHARGE CHARGECHARGE

SUBSUB TOTALTOTAL FROMFROM CONTINUATIONCONTINUATION SHEETSHEET TOTALTOTAL

TheThe propertyproperty listedlisted isis “as“as is,is, wherewhere is”is” withwith nono expressedexpressed oror impliedimplied warrantieswarranties given.given. TheThe propertyproperty listedlisted isis forfor officialofficial useuse ofof agencyagency listed,listed, andand notnot forfor personalpersonal use.use. NOTICE:NOTICE: PleasePlease readread additionaladditional TermsTerms andand RestrictionsRestrictions listedlisted onon back.back. AsAs thethe dulyduly authorizedauthorized agentagent ofof thethe aboveabove donee,donee, II acceptaccept propertyproperty listedlisted hereonhereon andand commitcommit thethe doneedonee toto thethe certificationscertifications andand agreementsagreements printedprinted onon thethe reverse.reverse.

AuthorizedAuthorized SignatureSignature

PropertyProperty IssuedIssued ByBy 3333

CERTIFICATIONSCERTIFICATIONS ANDAND AGREEMENTSAGREEMENTS

(a)(a) THETHE DONEEDONEE CERTIFIESCERTIFIES THAT:THAT: (1)(1) ItIt isis aa publicpublic agency;agency; oror aa nonprofitnonprofit educationaleducational oror publicpublic healthhealth institutioninstitution oror organization,organization, exemptexempt fromfrom taxationtaxation underunder SectionSection 501501 ofof thethe InternalInternal RevenueRevenue CodeCode ofof 1954;1954; withinwithin thethe meaningmeaning ofof sectionsection 203(j)203(j) ofof thethe FederalFederal PropertyProperty andand AdministrativeAdministrative ServicesServices ActAct ofof 1949,1949, asas amendedamended andand thethe regulationsregulations ofof thethe AdministratorAdministrator ofof GeneralGeneral Services.Services. (2)(2) IfIf aa publicpublic agency,agency, thethe propertyproperty isis neededneeded andand willwill bebe usedused byby thethe recipientrecipient forfor carryingcarrying outout oror promotingpromoting forfor thethe residentsresidents ofof aa givengiven politicalpolitical areaarea oneone oror moremore publicpublic purposes,purposes, or,or, ifif aa nonprofitnonprofit tax-exempttax-exempt institutioninstitution oror organization,organization, thethe propertyproperty isis neededneeded andand willwill bebe usedused byby thethe recipientrecipient forfor educationaleducational oro r publicpublic healthhealth purposes,purposes, andand includingincluding researchresearch forfor suchsuch purpose.purpose. TheThe propertyproperty isis notnot beingbeing acquiredacquired forfor anyany otherother useuse oror purpose,purpose, oror forfor salesale oror otheotherr distribution;distribution; oror forfor permanentpermanent useuse outsideoutside thethe State,State, exceptexcept withwith priorprior approvalapproval ofof thethe StateState agency.agency. (3)(3) FundsFunds areare availableavailable toto paypay allall costscosts andand chargescharges incidentincident toto donation.donation. (4)(4) ThisThis transactiontransaction shallshall bebe subjectsubject toto thethe nondiscriminationnondiscrimination regulationsregulations governinggoverning thethe donationdonation ofof surplussurplus personalpersonal propertyproperty issuedissued underunder TitleTitle VIVI oo ff thethe CivilCivil RightsRights ActAct ofof 19641964 andand TitleTitle VIVI SectionSection 606606 ofof thethe FederalFederal PropertyProperty andand AdministrativeAdministrative ServicesServices ActAct ofof 1949,1949, asas amended,amended, andand SectionSection 504504 ofof thethe RehabilitationRehabilitation ActAct ofof 1973,1973, asas amended.amended. AlsoAlso includeinclude TitleTitle IXIX ofof thethe EducationEducation AmendmentsAmendments ofof 1972,1972, asas amended,amended, andand SectionSection 303303 ofof thethe AgeAge DiscriminatioDiscriminationn ActAct ofof 1975.1975.

(b)(b) THETHE DONEEDONEE AGREESAGREES TOTO THETHE FOLLOWINGFOLLOWING FEDERALFEDERAL CONDITIONSCONDITIONS (1)(1) AllAll itemsitems ofof propertyproperty shallshall bebe placedplaced inin useuse forfor thethe purpose(s)purpose(s) forfor whichwhich acquiredacquired withinwithin oneone yearyear ofof receiptreceipt andand shallshall bebe continuedcontinued inin useuse forfor sucsuchh purpose(s)purpose(s) forfor oneone yearyear fromfrom thethe datedate thethe propertyproperty waswas placedplaced inin use.use. InIn thethe eventevent thethe propertyproperty isis notnot soso placedplaced inin use,use, oror continuedcontinued inin use,use, thethe doneedonee shallshall immediatelyimmediately notifynotify thethe StateState agency,agency, andand atat thethe donee’sdonee’s expense,expense, returnreturn suchsuch propertyproperty toto thethe StateState agency,agency, oror otherwiseotherwise makemake thethe propertyproperty availableavailable forfor transfertransfer oror otherother disposaldisposal byby thethe StateState agency,agency, providedprovided thethe propertyproperty isis stillstill usableusable asas determineddetermined byby thethe StateState agency.agency. (2)(2) SuchSuch specialspecial handlinghandling oror useuse limitationslimitations asas areare imposedimposed byby GeneralGeneral ServicesServices AdministrationAdministration (GSA)(GSA) onon anyany items(s)items(s) ofof propertyproperty listedlisted hereon.hereon. (3)(3) InIn thethe eventevent thethe propertyproperty isis notnot soso usedused oror handledhandled asas requiredrequired byby (b)(b) (1)(1) andand (2),(2), titletitle andand rightright toto thethe possessionpossession ofof suchsuch propertyproperty shallshall atat thethe optionoption ofof GSAGSA revertrevert toto thethe UnitedUnited StatesStates ofof AmericaAmerica andand uponupon demanddemand thethe doneedonee shallshall releaserelease suchsuch propertyproperty toto suchsuch personperson asas GSAGSA shallshall direct.direct.

(c)(c) THETHE DONEEDONEE AGREESAGREES TOTO THETHE FOLLOWINGFOLLOWING CONDITIONSCONDITIONS IMPOSEDIMPOSED BYBY THETHE STATESTATE AGENCY,AGENCY, APPLICABLEAPPLICABLE TOTO ITEMSITEMS WITHWITH AA

UNITUNIT ACQUISITIONACQUISITION COSTCOST OFOF $5,000$5,000 OROR MOREMORE ANDAND PASSENGERPASSENGER MOTORMOTOR VEHICLES,VEHICLES, REGARDLESSREGARDLESS OFOF ACQUISITIONACQUISITION COST,COST,

EXCEPTEXCEPT VESSELSVESSELS 5050 FEETFEET OROR MOREMORE ININ LENGTHLENGTH ANDAND AIRCRAFT.AIRCRAFT.

(1)(1) TheThe propertyproperty shallshall bebe usedused onlyonly forfor thethe purposes(s)purposes(s) forfor whichwhich acquiredacquired andand forfor nono otherother purposes(s).purposes(s). (2)(2) ThereThere shallshall bebe aa periodperiod ofof restrictionrestriction whichwhich willwill expireexpire afterafter suchsuch propertyproperty hashas beenbeen usedused forfor thethe purposes(s)purposes(s) forfor whichwhich acquiredacquired forfor aa periodperiod ofof 1818 monthsmonths fromfrom thethe datedate thethe propertyproperty isis placedplaced inin use,use, exceptexcept forfor suchsuch itemsitems ofof majormajor equipment,equipment, listedlisted hereon,hereon, onon whichwhich thethe StateState agencyagency designatesdesignates aa furthefurtherr periodp eriod ofof restriction.restriction. (3)(3) InIn thethe eventevent thethe propertyproperty isis notnot soso usedused asas requiredrequired byby (c)(1)and(c)(1)and (2)(2) andand FederalFederal restrictionsrestrictions (b)(1)(b)(1) andand (2)(2) havehave expiredexpired thenthen titletitle andand rightright toto thethe possessionp ossession ofof suchsuch propertyproperty shallshall atat thethe optionoption ofof thethe StateState agencyagency revertrevert toto thethe StateState ofof VirginiaVirginia andand thethe doneedonee shallshall releaserelease propertyproperty toto suchsuch personperson asas thethe StateState agencyagency shallshall direct.direct.

(d)(d) THETHE DONEEDONEE AGREESAGREES TOTO THETHE FOLLOWINGFOLLOWING TERMS,TERMS, RESERVATIONSRESERVATIONS ANDAND RESTRICTIONS:RESTRICTIONS:

(1)(1) FromFrom thethe datedate itit receivesreceives thethe propertyproperty listedlisted hereonhereon andand throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) aboveabove remainremain iinn effect,effect, thethe doneedonee shallshall notnot sell,sell, trade,trade, lease,lease, lend,lend, bail,bail, cannibalize,cannibalize, encumberencumber oror otherwiseotherwise disposedispose ofof suchsuch property,property, oror removeremove itit permanently,permanently, forfor useuse outsideoutside thethe State,State, withoutwithout priorprior approvalapproval fromfrom GSAGSA underunder (b)(b) oror thethe StateState agencyagency underunder (c).(c). TheThe proceedsproceeds fromfrom anyany sale,sale, trade,trade, lease,lease, loan,loan, bailment,bailment, encumbranceencumbrance oror otherother disposaldisposal ofof thethe property,property, whenwhen suchsuch actionaction isis authorizedauthorized byby GSAGSA oror byby thethe StateState agency,agency, shallshall bebe remittedremitted promptlypromptly byby thethe doneedonee toto GSAGSA oror thethe StateState agency,agency, asas thethe casecase maymay be.be. (2)(2) InIn thethe eventevent anyany ofof thethe propertyproperty listedlisted hereonhereon isis sold,sold, traded,traded, leased,leased, loaned,loaned, bailed,bailed, cannibalized,cannibalized, encumbered,encumbered, oror thethe otherwiseotherwise disposeddisposed ofof byby thethe doneedonee fromfrom thethe datedate itit receivedreceived thethe propertyproperty throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) remainremain inin effect,effect, withoutwithout thethe priorprior approvalapproval ooff GSAGSA oror thethe StateState agency,agency, thethe donee,donee, atat thethe optionoption ofof GSAGSA oror thethe StateState agencyagency shallshall paypay toto GSAGSA oror thethe StateState agency,agency, asas thethe casecase maymay be,be, thethe proceedsproceeds ofof thethe disposaldisposal ofof thethe fairfair marketmarket valuevalue oror thethe fairfair rentalrental valuevalue ofof thethe propertyproperty atat thethe timetime ofof suchsuch disposal,disposal, asas determineddetermined byby GSAGSA oror thethe StateState agency.agency. (3)(3) IfIf atat anyany time,time, fromfrom thethe datedate itit receivedreceived thethe propertyproperty throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) remainremain inin effect,effect, anyany ooff thethe propertyproperty listedlisted hereonhereon isis nono longerlonger suitable,suitable, usable,usable, oror furtherfurther neededneeded byby thethe doneedonee forfor thethe purpose(s)purpose(s) forfor whichwhich acquired,acquired, thethe doneedonee shallshall promptlypromptly notifynotify thethe StateState agency,agency, andand shall,shall, asas directeddirected byby thethe StateState agency,agency, returnreturn thethe propertyproperty toto thethe StateState agency,agency, releaserelease thethe propertyproperty toto anotheranother doneedonee oror anotheranother StateState agency,agency, aa departmentdepartment oror agencyagency ofof thethe UnitedUnited States,States, sellsell oror otherwiseotherwise disposedispose ofof thethe property.property. TheThe proceedsproceeds fromfrom anyany salesale shallshall bebe remittedremitted promptlypromptly byby thethe doneedonee toto thethe StateState agency.agency. (4)(4) TheThe doneedonee shallshall makemake reportsreports toto thethe StateState agencyagency onon thethe use,use, condition,condition, andand locationlocation ofof thethe propertyproperty listedlisted hereonhereon andand onon otherother pertinentpertinent mattersmatters asas maymay bebe requiredrequired fromfrom timetime toto timetime byby thethe StateState agency.agency. (5)(5) AtAt thethe optionoption ofof thethe StateState agency,agency, thethe doneedonee maymay abrogateabrogate thethe conditionsconditions setset forthforth inin (c)(c) andand thethe terms,terms, reservationsreservations andand restrictionsrestrictions pertinenpertinentt theretothereto inin (d)(d) byby paymentpayment ofof anan amountamount asas determineddetermined byby thethe StateState agency.agency.

(e)(e) THETHE DONEEDONEE AGREESAGREES TOTO THETHE FOLLOWINGFOLLOWING CONDITIONS,CONDITIONS, APPLICABLEAPPLICABLE TOTO ALLALL ITEMSITEMS OROR PROPERTYPROPERTY LISTEDLISTED HEREON:HEREON:

(1)(1) TheThe propertyproperty acquiredacquired byby thethe doneedonee isis onon anan “As“As is,is, WhereWhere is”is” basis,basis, withoutwithout warrantywarranty ofof anyany kind.kind. (2)(2) WhereWhere aa doneedonee carriescarries insuranceinsurance againstagainst damagesdamages toto oror lossloss ofof propertyproperty duedue toto firefire oror otherother hazardshazards andand wherewhere lossloss ofof oror damagedamage toto donatedonatedd propertyp roperty withwith unexpiredunexpired terms,terms, conditions,conditions, reservationsreservations oror restrictions,restrictions, occurs,occurs, thethe StateState agencyagency willwill bebe entitledentitled toto reimbursementreimbursement fromfrom thethe doneedonee outout ofof thethe insuranceinsurance proceeds,proceeds, ofof anan amountamount equalequal toto thethe unamortizedunamortized portionportion ofof thethe fairfair valuevalue ofof thethe damageddamaged oror destroyeddestroyed donateddonated items.items.

(f)(f) TERMSTERMS ANDAND CONDITIONSCONDITIONS APPLICABLEAPPLICABLE TOTO THETHE DONATIONDONATION OFOF AIRCRAFTAIRCRAFT ANDAND VESSELSVESSELS (50(50 FEETFEET OROR MOREMORE ININ LENGTH)LENGTH)

HAVINGHAVING ANAN ACQUISITIONACQUISITION COSTCOST OFOF $5,000$5,000 OROR MORE,MORE, REGARDLESSREGARDLESS OFOF THETHE PURPOSEPURPOSE FORFOR WHICHWHICH ACQUIRED:ACQUIRED:

TheThe donationdonation shallshall bebe subjectsubject toto thethe terms,terms, conditions,conditions, reservations,reservations, andand restrictionsrestrictions setset forthforth inin thethe ConditionalConditional TransferTransfer DocumentDocument executedexecuted byby thethe authorizedauthorized doneedonee rere pp resentative.resentative. 34

Exhibit 2 – Surplus Property Transfer Document (Standard Form 123) (GSA Document Link)3536 Transfer Order Surplus Personal Property (Standard Form 123) (Continuation Sheet) 37 Exhibit 3 – Combat-Type Aircraft Conditional Transfer Document (GSA Document Link)

The Conditional Transfer Documents below are from FSS P 4025.5, Donation of Surplus Personal Property. The year has been updated to read “20__” in lieu of “19__.”

Conditional Transfer Documents

Some property, because of its special or sensitive nature, requires special handling and may require additional terms and conditions in the documentation by which it is distributed. In addition to the State Agency distribution document, the donation of such property shall be accomplished by the use of a conditional transfer document which contains the additional terms and conditions applicable to the property. For example, vessels (50 feet or more in length) and aircraft with a unit acquisition cost of $5,000 or more, including all combat-type aircraft, are donated by the State Agency, subject to special handling and use limitations imposed on the donee by GSA pursuant to the requirements of Ch. 1-13, as well as such further terms, conditions, reservations, and restrictions as are imposed on the donee by the State agency in accordance with the Combat-type aircraft conditional transfer document (see fig. 2-9.4 below):

Figure 2-9.4. Combat-type aircraft conditional transfer document COMBAT-TYPE AIRCRAFT CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s): in accordance with the proposed program and plan as set forth in the Donee's "letter of Intent" dated ______________, as amended ______________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all of its rights, title, and interest in and to the following described combat-type aircraft, aircraft engines, and propellers, together with all engines, appurtenances, and accessories attached thereto or installed therein (all of which are hereinafter referred to as the Property), which has been determined by GSA to have a fair market value of $_______, unto the Donee to have and to hold the Property, all singular forever, this donation being made on an "as is, 38 where is" basis without warranty of any kind, and delivery made at present location of the Property regardless of where the same may be situated or the condition thereof: SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee agrees that the aircraft shall not be used for flight purposes.
2. The Property shall be placed in use by the Donee for the purpose stated above no later than 12 months after acquisition thereof and shall be used thereafter for such purpose in perpetuity.
3. In the event the aircraft is not placed in use by the donee within 12 months of receipt and used thereafter in perpetuity, within 30 days after the Property has ceased to be used, the Donee shall provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP or otherwise dispose of the Property through the SASP, as may be directed by GSA.
4. In the event the Property is not so used or handled as required by (1), (2), and (3), above, title and right to the possession of the Property shall at the option of GSA revert to the United States Government. Upon demand the Donee shall, as directed by GSA through the SASP, release the Property to such person or agency as may be designated, sell the Property with the proceeds remitted promptly by the Donee to GSA, or otherwise dispose of the Property. Any sale shall be for the benefit and account of the United States Government.
5. During the period of restriction prescribed in (2) and (3), above, the Donee shall make reports to the SASP on the use, condition, and location of the Property and on other pertinent matters as may be required from time to time by the SASP or GSA.
6. During the periods of restriction prescribed in (2) and (3) above , the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of the Property, or remove it permanently for use outside the State, without the prior written approval of GSA. The proceeds from any sale, trade, lease, loan, bailment, encumbrance, cannibalization, or other disposal of the Property during the periods of restriction set forth in (2) and (3), above, when such action is authorized by GSA, shall be for the benefit and account of the United States Government.
7. If at any time, from the date the Donee receives the Property through the periods of restriction prescribed in (2) and (3), above, the Property is no longer suitable, usable, or further needed by the Donee for the purpose for which acquired, the Donee shall promptly notify the SASP and shall as directed by GSA through the SASP: (a) Release the Property to another donee or State Agency; 39 (b) Release the Property to a department or agency of the United States; (c) Release the Property to such other institution or agency as may be determined to have need therefore; (d) Sell the Property for the benefit and account of the United States of America with the proceeds remitted promptly from the Donee to GSA; (e) Render the Property completely unfit and useless for any purpose except for the recovery of its basic material content, the same to be performed in a manner satisfactory to GSA and the material content to be disposed of in accordance with instructions of GSA; or (f) Otherwise dispose of the Property as directed by GSA.
8. In the event, during the periods of restriction prescribed in (2) and (3), above, the Property is sold, traded, leased, loaned, bailed, encumbered, or otherwise disposed of without prior written approval of GSA, the Donee, at the option of GSA, shall be liable for the proceeds of the disposal, the fair market value, or the fair rental value of the Property at the time of the unauthorized transaction or use, as determined by GSA.
9. In the event of a breach by the Donee, or its successor in function, of any of the above conditions, whether caused by the legal inability of the Donee or its successor in function, interest in and to the Property shall, at the option of GSA, forthwith revert to and become the property of the United States Government, and the Donee, or its successors or assigns, shall forfeit all of its or their rights, title, and interest in and to the Property.

10. The SASP shall not grant waivers, amendments, releases, or terminate any of the terms and conditions enumerated in (1) through (9), above, concerning the use or disposal of the Property, or issue disposal instructions to the Donee for the Property without the prior written concurrence of GSA or its successor in function. 11. The Donee agrees to hold harmless and indemnify the SASP or the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed upon, exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

IN WITNESS WHEREOF, the Donor and the Donee have duly executed this instrument this _________day of ____________, 20__.

United States of America Acting by and through the Virginia State Agency for Surplus Property. 40 By ___________________ Title __________________

DONEE:

By ___________________ Title __________________ Institution or Organization _______________________

CITY of __________________ COUNTY of__________________ STATE of __________________

On this ______day of _________ 20___, before me appeared ________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument and that such instrument was executed under duly delegated authority on behalf of the Virginia State Agency for Surplus Property, and acknowledged the foregoing instrument to be the free act and deed of the Commonwealth of Virginia.

Given under my hand and official seal the day and year above written.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of _______________ STATE of _________________

(SEAL)

My Commission Expires: _____________________________

CITY of __________________) COUNTY of __________________) STATE of __________________)

On this ____ day of _______, 20___, before me appeared ___________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument on behalf of said __________________, and acknowledges to me that he/she was duly authorized to execute the foregoing instrument and that he/she executed the same as a free act and deed of said ______________________.

Given under my hand and official seal of the day and year above written. 41 ___________________________ Notary Public in and for the CITY of ____________________ COUNTY of_________________ STATE of __________________

(SEAL)

My Commission Expires: _______________________________ 42 Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document (GSA Document Link)

The Conditional Transfer Documents below are from FSS P 4025.5, Donation of Surplus Personal Property. The year has been updated to read “20__” in lieu of “19__.”

Conditional Transfer Documents

Some property, because of its special or sensitive nature, requires special handling and may require additional terms and conditions in the documentation by which it is distributed. In addition to the State agency distribution document, the donation of such property shall be accomplished by the use of a conditional transfer document which contains the additional terms and conditions applicable to the property. For example, vessels (50 feet or more in length) and aircraft with a unit acquisition cost of $5,000 or more, including all combat-type aircraft, are donated by the State agency, subject to special handling and use limitations imposed on the donee by GSA pursuant to the requirements of Ch. 1-13, as well as such further terms, conditions, reservations, and restrictions as are imposed on the donee by the State agency in accordance with the Non-combat-type aircraft conditional transfer document (see fig. 2-9.3 below):

Figure 2-9.3. Non-combat-type aircraft conditional transfer document NON-COMBAT-TYPE AIRCRAFT CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant to the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereinafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s):

in accordance with the proposed program and plan as set forth in the Donee's "Letter of Intent" dated ______________, as amended ______________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all of its rights, title, and interest in and to the following described non-combat-type aircraft, aircraft engines, and propellers, together with all engines, appurtenances, and accessories attached thereto or installed therein (all of which are hereinafter referred to as the Property), which has been determined by GSA to have a fair market value of $_______ , unto the Donee to have and to hold the Property, all singular forever, this donation being made on an "as is, where is" basis 43 without warranty of any kind, and delivery made at present location of the Property regardless of where the same may be situated or the condition thereof.

SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee agrees to apply to the Federal Aviation Administration (FAA) for registration of the Property which is intended for flight purposes within 30 days of the receipt of a fully executed copy of this instrument. The Donee's application for registration shall include a fully executed copy of this instrument.

1. The Property shall be placed in use for the purpose stated above no later than 12 months after acquisition thereof, and used for that same purpose for a 12-month period thereafter.

1. There shall be a further period of restriction beginning on the date the Property has been used for the period prescribed in (2), above. This additional period will expire after the Property has been used for the purpose stated for an additional period of 48 months. During this additional period of restriction, the Property shall be used only for the purpose(s) stated above.

1. In the event the Donee does not apply to the FAA for registration of the Property which is intended for flight operations (or other uses, unless registration is waived by GSA) or in the event the aircraft is not placed in use within 12 months of receipt, and used for a 12-month period thereafter, within 30 days after the Property has ceased to be used, the Donee shall provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP or otherwise dispose of the Property, through the SASP, as may be directed by GSA.

1. In the event the Property is not so used or handled as required by (1), (2), (3), and (4), above, title and right to the possession of the Property shall at the option of GSA revert to the United States Government. Upon demand the Donee shall, as directed by GSA through the SASP, release the Property to such person or agency as may be designated, sell the Property, or otherwise dispose of the Property. Any sale shall be for the benefit and account of the United States Government.

1. During the periods of restriction prescribed in (2) and (3), above, the Donee shall make reports to the SASP on the use, condition, and location of the Property and on other pertinent matters as may be required from time to time by the SASP or GSA.

1. At the expiration of the period of restriction prescribed in (3), above, a release document shall be executed by the SASP and forwarded to the Donee.

1. During the periods of restriction prescribed in (2) and (3), above, the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of the Property, or remove it permanently for use outside the State, without the prior written 44 approval of GSA. The proceeds from any sale, trade, lease, loan, bailment, encumbrance, or other disposal of the Property during the period of restriction set forth in (2) and (3), above, when such action is authorized by GSA, shall be for the benefit and account of the United States Government.

1. In the event, during the periods of restriction prescribed in (2) and (3), above, the Property is sold, traded, leased, loaned, bailed, encumbered, or otherwise disposed of without prior written approval of GSA, the Donee, at the option of GSA, shall be liable for the proceeds of the disposal, the fair market value, or the fair rental value of the Property at the time of such unauthorized transaction or use, as determined by GSA.

10. If at any time, from the date the Donee receives the Property through the periods of restriction prescribed in (2) and (3), above, the Property is no longer suitable, usable, or further needed by the Donee for the purpose for which acquired, the Donee shall promptly notify the SASP and shall as directed by GSA through the SASP:

(a) Release the Property to another donee or State agency;

(b) Release the Property to a department or agency of the United States;

(c) Release the Property to such other institution or agency as may be determined to have need therefore;

(d) Sell the Property for the benefit and account of the United States of America with the proceeds remitted promptly from the Donee to GSA;

(e) Render the Property completely unfit and useless for any purpose except for the recovery of its basic material content, the same to be performed in a manner satisfactory to GSA and the material content to be disposed of in accordance with instructions of GSA; or

(f) Otherwise dispose of the Property as directed by GSA.

11. At the option of GSA, the Donee may obtain abrogation of the terms and conditions set forth in (3) and (6) through (10), above, by payment of an amount determined by

GSA.

12. GSA may waive any or may terminate all of the terms and conditions set forth in (3) and (6) through (10), above, and give unrestricted title to the Property in favor of the Donee whenever such action is determined in writing by GSA to be appropriate.

13. The Donee agrees to hold harmless and indemnify the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed upon, 45 exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

IN WITNESS WHEREOF, the Donor and the Donee have duly executed this instrument this _________day of ____________, 20__.

United States of America Acting by and through the Virginia State Agency for Surplus Property.

By ___________________ Title __________________

DONEE:

By ___________________ Title __________________ Institution or Organization _______________________

CITY of __________________) COUNTY of__________________) STATE of __________________)

On this ______day of _________ 20___, before me appeared ________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument and that such instrument was executed under duly delegated authority on behalf of the Virginia State Agency for Surplus Property, and acknowledged the foregoing instrument to be the free act and deed of the Commonwealth of Virginia.

Given under my hand and official seal the day and year above written.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of _______________ STATE of _________________

(SEAL)

My Commission Expires: _____________________________

CITY of __________________) COUNTY of __________________) 46 STATE of __________________)

On this ____ day of _______, 20___, before me appeared ___________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument on behalf of said __________________, and acknowledges to me that he/she was duly authorized to execute the foregoing instrument and that he/she executed the same as a free act and deed of said ______________________.

Given under my hand and official seal of the day and year above written.

___________________________ Notary Public in and for the CITY of ____________________ COUNTY of_________________ STATE of __________________

(SEAL)

My Commission Expires: _______________________________ 47 Exhibit 5 – Vessel Conditional Transfer Document (50 feet or more in length) (GSA Document Link)

The Conditional Transfer Document below is from FSS P 4025.5, Donation of Surplus Personal Property. The year has been updated to read “20__” in lieu of “19__.”

Conditional Transfer Documents

Some property, because of its special or sensitive nature, requires special handling and may require additional terms and conditions in the documentation by which it is distributed. In addition to the State Agency distribution document, the donation of such property shall be accomplished by the use of a conditional transfer document which contains the additional terms and conditions applicable to the property. For example, vessels (50 feet or more in length) and aircraft with a unit acquisition cost of $5,000 or more, including all combat-type aircraft, are donated by the State Agency, subject to special handling and use limitations imposed on the donee by GSA pursuant to the requirements of Ch. 1-13, as well as such further terms, conditions, reservations, and restrictions as are imposed on the donee by the State agency in accordance with the Vessel conditional transfer document (see fig. 2-9.2 below):

Figure 2-9.2. Vessel conditional transfer document VESSEL CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s): in accordance with the proposed program and plan as set forth in the Donee's "Letter of Intent" dated _______________, as amended __________________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all rights, title, and interest in and to the following described vessel:

together with all engines, appurtenances, and accessories attached thereto or installed therein (all of which are hereinafter referred to as the Property), which has been 48 determined by GSA to have a fair market value of $_________, unto the Donee to have and to hold the said Property, all and singular forever, this donation being made on an "as is, where is" basis without warranty of any kind and delivery is made at the present location of the Property regardless of where the same may be situated or the condition thereof:

SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee agrees to obtain documentation of the vessel under the applicable laws of the United States and regulations promulgated thereunder and the applicable laws of the several States governing the documentation of said Property and at all times to maintain such documentation. Upon written request and sufficient evidence to justify such action, GSA may waive the requirement for documentation in the case of donated vessels which are to be permanently moored on land and never to be used again on the waterways.

1. The Donee agrees to record this Vessel Conditional Transfer Document with the Coast Guard Documentation Officer at the port of documentation of the Property within 30 days after the receipt of the fully executed Vessel Conditional Transfer Document. If documentation is waived under (1), above, the requirement for registration may also be waived.

1. The Property shall be placed in use for the purpose stated above no later than 12 months after acquisition thereof and used for that same purpose for a 12-month period thereafter.

1. There shall be a further period of restriction beginning on the date the Property has been used for the period prescribed in (3), above. This period will expire after the Property has been used for the purpose stated above for an additional period of 48 months. During this additional period of restriction, the Property shall be used only for the purpose(s) stated above.

1. In the event the Donee does not record this Vessel Conditional Transfer Document with the Coast Guard Documentation Officer at the port of documentation of the Property within 30 days after the date of receipt of the fully executed Vessel Conditional Transfer Document, or in the event the Property is not placed in use within 12 months of receipt and used for a 12-month period thereafter, the Donee shall within 30 days after the date on which the instrument should have been recorded, or within 30 days after the Property has ceased to be used, provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP, or otherwise dispose of the Property, through the SASP, as may be directed by GSA.

1. In the event the Property is not so used or handled as required by (1), (2), (3), (4), and (5), above, title and right to the possession of the Property shall, at the option of 49 GSA, revert to the United States Government. Upon demand the Donee shall, as directed by GSA through the SASP, release the Property to such person or agency as may be designated, sell the Property, or otherwise dispose of the Property. Any sale shall be for the benefit and account of the United States Government.

1. During the periods of restrictions prescribed in (3) and (4), above, the Donee shall make reports to the SASP on the use, condition, and location of the Property and on other pertinent matters as may be required from time to time by the SASP or GSA.

1. During the periods of restriction prescribed in (3) and (4), above, the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of the Property, or remove it permanently for use outside the Commonwealth of Virginia, without the prior written approval of GSA. The proceeds from any sale, trade, lease, loan, bailment, encumbrance, or other disposal of the Property during the period of restriction set forth in (3) and (4), above, when such action is authorized in writing by GSA, shall be for the account of the United States Government.

1. In the event, during the periods of restriction prescribed in (3) and (4), above, the Property is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of without prior written approval of GSA, or is used for a purpose other than the purpose(s) stated, the Donee, at the option of GSA, shall be liable for the proceeds of the disposal, the fair market value, or the fair rental value of the Property at the time of such unauthorized transaction or use, as determined by GSA.

10. If at any time, from the date the Donee receives the Property through the periods of restriction prescribed in (3) and (4), above, the Property is no longer suitable, usable, or required by the Donee for the purpose for which required, the Donee shall promptly notify the SASP, and shall, as directed by GSA through the SASP, return the Property to the SASP, transfer the Property to another Donee or another State Agency or to a department or agency of the United States, sell the Property for the account and benefit of the United States with the proceeds remitted promptly to GSA from the Donee, or otherwise dispose of the Property as directed by GSA.

11. At the option of GSA, the Donee may obtain abrogation of the terms and conditions set forth in (4) and (6) through (10), above, by payment of an amount determined by and with the written concurrence of GSA.

12. GSA may waive any or may terminate all of the terms and conditions set forth in (4) and (6) through (10), above, and give unrestricted title to the Property in favor of the Donee whenever such action is determined in writing by GSA to be appropriate. 13. The Donee agrees to hold harmless and indemnify the SASP or the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed 50 upon, exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

IN WITNESS WHEREOF, the Donor and Donee have duly executed this instrument this _____ day of _____________, 20___.

United States of America, Acting by and through the Virginia State Agency for Surplus Property.

By ______________________ Title _____________________

DONEE:

By _______________________ Title ______________________ Institution or Organization __________________________

CITY of __________________ COUNTY of __________________ STATE of ____________________ On this ______day of _________ 20___, before me appeared __________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument and that such instrument was executed under duly delegated authority on behalf of the Virginia State Agency for Surplus Property, and acknowledged the foregoing instrument to be the free act and deed of the Commonwealth of Virginia.

Given under my hand and official seal the day and year above written.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of ________________ STATE of __________________

(SEAL)

My Commission Expires: ____________________________________

CITY of __________________) STATE of __________________) COUNTY of __________________) 51 On this ____ day of ___________, 20___, before me appeared __________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the forgoing instrument on behalf of the ___________ and acknowledged to me that he/she was duly authorized to execute the foregoing instrument and that he/she executed the same as a free act and deed of said ______________________.

Given under my hand and official seal the day and year above written. __________________________ Notary Public in and for the CITY of ____________________ COUNTY of ________________ STATE of __________________

(SEAL)

My Commission Expires: ___________________________________ 52

Exhibit 6 – Nondiscrimination Assurance

The following certification statement is required by donees of the Virginia State Agency for Surplus Property to assure that a donee will comply with GSA’s regulations on nondiscrimination.

NON-DISCRIMINATION CERTIFICATION

The donee hereby agrees that the program for or in connection with which any property is donated will be conducted in compliance with, and the donee will comply with and will require any other person (any legal entity) who, through contractual or other arrangements with the donee is authorized to provide services or benefits under said program to comply with, all requirements imposed by or pursuant to the regulation of the General Services Administration (41 CFR 101-6.2 entitled “Nondiscrimination in Programs Receiving Federal Financial Assistance”) issued under the provisions of Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, as amended, Title IX of the Education Amendments of 1972, as amended, and Section 303 of the Age Discrimination Act of 1975, and Civil Rights Restoration Act of 1987, to the end that no person in the United States shall, on the ground of race, color, natural origin, sex or age, or the no otherwise qualified handicapped person shall solely be reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity for which the donee received Federal assistance from the General Services Administration and hereby gives assurance that it will immediately take any measures necessary to effectuate this agreement.

The donee further agrees that this agreement shall be subject in all respects to the provisions of said regulations, that this agreement shall obligate the donee for the period during which it retains ownership or possession of any such property, that the United States shall have the right to seek judicial enforcement of this agreement, and this agreement shall be binding upon any successor in interest of the donee and the word “donee” as used herein includes any such successor in interest.

__________________________________________ ________________ Signature of Chief Executive Officer/Agency Head Date

__________________________________________ _________________ Type/Print Name Title53 Exhibit 7 – Organization of the Virginia State Government 54

2

TABLE OF CONTENTS

PART DESCRIPTION

PAGE

PART I

AUTHORITY................................................................................................. 3

OPINION OF THE ATTORNEY GENERAL................................................... 4

PART II

DESIGNATION OF STATE AGENCY .......................................................... 6

PART III

INVENTORY CONTROL AND ACCOUNTING SYSTEM............................. 7

PART IV

RETURN OF DONATED PROPERTY ......................................................... 9

PART V

FINANCING AND SERVICE CHARGES.................................................... 10

PART VI

TERMS AND CONDITIONS ON DONABLE PROPERTY.......................... 13

PART VII

NONUTILIZED DONABLE PROPERTY..................................................... 17

PART VIII FAIR AND EQUITABLE DISTRIBUTION ................................................... 18

PART IX

ELIGIBILITY ............................................................................................... 20

PART X

COMPLIANCE AND UTILIZATION ............................................................ 23

PART XI

CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND PRIVATE GROUPS .. 26

PART XII

AUDIT......................................................................................................... 27

PART XIII COOPERATIVE AGREEMENTS................................................................ 28

PART XIV LIQUIDATION............................................................................................. 29

PART XV RECORDS ................................................................................................. 30

PART XVI FORMS ...................................................................................................... 31

Exhibit 1 – Distribution Document and Invoice ........................................... 32

Exhibit 2 – Surplus Property Transfer Document (Standard Form 123) ..... 34

Exhibit 3 – Combat-Type Aircraft Conditional Transfer Document ............. 37

Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document...... 42

Exhibit 5 – Vessel Conditional Transfer Document (50 feet or more)......... 47

Exhibit 6 – Nondiscrimination Assurance ................................................... 52

Exhibit 7 – Organization of the Virginia State Government......................... 53 3

PART I

AUTHORITY CHAPTER 746 ACTS OF ASSEMBLY OF 1984 §2.2-1123. Acquisition of surplus materials from the United States government.

The Division is responsible for acquiring surplus personal property, including materials, supplies, and equipment, from the U.S. government for distribution to Commonwealth departments, agencies, institutions, political subdivisions, and eligible nonprofits. Acquisitions are made when advantageous, for storage or immediate distribution. The Division may collect purchase prices and service charges to cover costs and shall publish plans complying with the Federal Property and Administrative Services Act of 1949 and similar statutes.

The Division may delegate authority to acquire property directly from the federal government to departments, agencies, institutions, political subdivisions, or eligible nonprofits when advantageous, and prescribe regulations for such acquisitions. (1984, c. 746, § 2.1-445.1; 2001, c. 844). Source: http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+2.2-1123 4

OPINION OF THE ATTORNEY GENERAL5 6

PART II

DESIGNATION OF STATE AGENCY

Effective 2001, Virginia Code §2.2-1123 designates the Department of General Services (DGS) as the official agency to administer the State Plan of Operation throughout Virginia, per Title 40 USC, Subtitle 1, Chapter 5, Section 549; FMR 102-37, 102.37.350, GSA regulations, and this Plan.

The Virginia Federal Property Agency, or State Agency, administers all phases of the State Plan, including acquiring, storing, distributing federal property to eligible public and nonprofit agencies, establishing regulations, assessing service charges, maintaining property records, and executing certifications and agreements. Financial accounting is handled by the Bureau of Fiscal Services, DGS.

Under the general administration of the Director, State Surplus Property, the State Agency is directed and supervised by the Manager who is responsible for all phases of the operation. The manager has assigned staff including clerical, screeners, distribution centers, and driver personnel. In addition, the Manager cooperates with the State surplus property activity. The State Agency is a special fund activity paying all expenses from service charge revenues.

Virginia operates two distribution center facilities. The Richmond center is State-owned and includes a 55,000 square foot warehouse within a fenced storage area on a 10-Acre site located at 1910 Darbytown Road, Richmond, Virginia. The second distribution center services the Southwest Virginia region and is located in a rented 45,000 square foot retail facility at 800 East Main Street, Wytheville, Virginia. Both distribution centers are co-located with State Surplus property offices and facility costs are equitably shared.

Federal and State surplus managers operate under the Director, State Surplus Property, with the Director of DGS Procurement Services as higher authority.

PART III

INVENTORY CONTROL AND ACCOUNTING SYSTEM

A.

Property Accountability

Accountability records for all federal property transferred to the agency will be maintained on an automated system, recording receipts, issues, balances, dates, document numbers, stock numbers, locations, returns, and transfers.

Special attention and accountability will be given to all single items received with an original acquisition cost of $5,000.00 or more including motor vehicles. Each recorded item with an acquisition cost of $5,000.00 or more will be designated a compliance item, which incurs an eighteen month compliance period. Items received into inventory with an original acquisition of $500.00 or less may be converted to lots, or group units of issues, where such conversions would increase donation potential.

Donated property to SASP for its use will be handled like other donations to state agencies.

B.

Receiving and Verifying Property

Upon receipt, a physical inspection and count are made and checked against Federal Form SF-123 or shipping documents, with notations made on the document.

When differences in counts are discovered, an overage and shortage report will be prepared and submitted to the GSA allocation office and GSA regional office under the provisions FMR 102.37.70, 102-37.350. In cases of overages where a line item acquisition cost is $500 or over, a separate 123 document will be submitted to GSA allocation office for donation approval.

Property items received and issued are posted to the inventory system.

Posted transactions show date, document number, receipts, issues, and balance.

It references the receiving and issue documents, providing item history.

A verification of property on hand will be accomplished each year with a physical inventory or automated cycle count system. A written list or inventory count tags identifying the items is prepared and checked with the inventory system. Inventory differences which cannot be accounted for by the distribution center supervisor will be reported to the State Agency Manager and adjustments may be made only with the Manager’s written approval. All reasonable efforts to reconcile the differences will be made before adjustments are approved. A 8 verification of items with an acquisition cost of $5,000 or more and passenger motor vehicles will be made at least two times each year.

All property distributed by the distribution center is issued on the form “Distribution Document and Invoice” Exhibit 1. Property picked up directly from a holding agency by a donee is issued on the form, “Direct Transfer Document” Exhibit 2.

C.

Fiscal Accounting System

Payments for services are accepted via checks, credit cards, or Interdepartmental Transfer Invoices from approved donees. All receipts are deposited with the Treasurer of Virginia into the Special Fund, and disbursements are made from this account upon certified invoices to the State Comptroller.

The fiscal accounting system is acceptable to the Department of General Services, and approved by the State Comptroller, along with other DGS fiscal systems. The system is composed of a chart of accounts, a donee jacket type account receivable subsidiary ledger, receipts ledger which accounts for all cash received, and a general ledger which accounts for all assets, liabilities, and expenses. An accrual statement of profit and loss and a balance sheet is prepared at the close of each month.

The Department’s Bureau of Fiscal Services maintains fiscal records as a separate Special Fund for all revenues, disbursements, assets, and liabilities.

PART IV RETURN OF DONATED PROPERTY

A. Conditions and Donee Reporting Procedure

Usable property not used within one year of acquisition or after 12 or 18 months of use restriction must be reported to the State Agency with identifying data, condition, reasons for non-use, and recommended action.

B. Disposition Instructions

The State Agency will review the donee report and, if non-conforming to donation terms (Exhibits 1 or 2), will authorize in writing, per GSA regulations, a suitable utilization or disposal procedure. The authorization may include:

1. Return the item to the State Agency distribution center at donee expense and with no reimbursement of service charges.

1. Transfer item to another donee, SASP, or Federal agency.

1. Authorize sale, coordinated with GSA, if there are no other requirements.

1. Authorize cannibalization or secondary utilization.

1. Authorize scrapping, in coordination with GSA.

1. Amend, modify, or grant releases per GSA Regulations.10

PART V

FINANCING AND SERVICE CHARGES

A.

The Virginia State Agency, classified as an Internal Service Fund, is managed by the Agency Manager. It has no appropriations; service charges fund operations, with additional revenue from sales, transportation, and gifts. Charges are fair, equitable, minimal, and cover all costs, including employee, screening, transportation, maintenance, utilities, administration, supplies, equipment, packing, handling, compliance, insurance, fund operation, capital maintenance, and outlay.

B.

Charges and fees will be set to recover expenses, including indirect costs of the Surplus Property Program. Considerations include but are not limited to:

Expenses as outlined in part V, A.

Original acquisition cost or estimated fair market value.

Type and nature of the property indicating usefulness.

Condition or quantity of the property.

Intended use of the property.

Special processing, handling, transportation, or services.

C.

Method of Establishing Charges

Funds accumulated from charges and fees, as well from other sources such as sales, compliance actions, gifts, grants appropriations, etc. will be used to cover direct and indirect costs of the State Agency’s operation, to accumulate and maintain a working capital reserve, to purchase necessary equipment, to rehabilitate and purchase replacement parts for donable surplus property, to provide, maintain, or make improvements to State Agency offices and distribution center facilities, to purchase necessary equipment and supplies and any other such purchases deemed necessary 11 to carry out the State Agency’s operations.

Guide for Item Service Charges: Charge Percentage of Acquisition Cost

0-35

$0-5,000

0-30

$5,001-10,000

0-25

Over $10,000

D.

Reduced Charges for Surplus Items

When minimal services are provided, fees will be fair, equitable, and proportional to expenses, per guidelines in part V, B.

The Agency will offer property at minimal cost and may waive charges for nonprofits aiding homeless and impoverished individuals, ensuring fairness to all donees.

E.

For direct pickup, service charges will be reduced 10-25% proportionally when donees perform some services; remaining factors for charges still apply to cover costs.

F.

Funds from charges, sales, gifts, and appropriations cover all costs, including personnel, capital, property rehab, equipment, and maintenance. Budget classifications may change; expenditures require approval. Funds are strictly for agency operations and program promotion.

G.

Working Capital Reserve Fund

The reserve fund may reach up to two years of prior expenses plus inflation and current costs. Excess funds require written plans for needs; surplus funds will reduce service charges. Sale proceeds go to the fund.

H.

All funds from service charges or sources are deposited with the Treasurer of Virginia. The State Agency is not authorized to invest funds. 13

PART VI

TERMS AND CONDITIONS ON DONABLE PROPERTY

A.

The donee's authorized representative certifies and agrees to all terms, conditions, reservations, and restrictions on issue documents in Part XV.

Exhibit 1 – Distribution Document and Invoice.

Exhibit 2 – Direct Transfer Document.

B.

Additional Certification by Donee for Donation of Aircraft and Vessels

Exhibit 3 – Combat-Type Aircraft Conditional Transfer Document.

Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document.

Exhibit 5 – Vessel Conditional Transfer Document.

C.

Amendment and Release of Terms and Conditions

1. The State Agency may amend or grant releases of any term, condition, or restriction on donated items per standards in Exhibit 3, Part XV, if conditions are demonstrated to its satisfaction and recorded.
2. Under FPMR 101-44.208(h), the State Agency may approve cannibalization or secondary use of an item listed on the Distribution Document and Invoice, with approval marked accordingly. If a donee cannot use the item as acquired, a written request with item ID, condition, and proposed use must be submitted. The Agency will respond in writing and may approve if it deems the action the best utilization.

1. Under Part VI, the State Agency may amend or release restrictions on donated property if conditions are demonstrated and recorded. For secondary use or cannibalization: (1) Disassembly must offer greater benefit than use in original form; (2) Items remain under restriction until secondary use is complete; (3) A written report, including components costing $5,000 or more, must be submitted.

Components remain under transfer restrictions; those costing less than $5000 will be released from restrictions.

However, these components will continue to be used or be otherwise disposed of in accordance with applicable law and regulations. (b) Trade-in of an item on a similar replacement. Written approval is required from the General Services Administration for property under Federal restriction.

Donated property may be traded in or used as payment for similar items if: (1) Not in violation of restrictions; (2) Used for at least 6 months, demonstrating increased value; (3) One-for-one trade; (4) New item has equal or higher market value; (5) Remaining restriction period applies. Abrogation may be authorized upon payment of fair market value minus used value, if property is misused or not used. Acquisition cost can be revised if deemed unrealistic. Items with no commercial value or high care costs may be destroyed or abandoned with written approval. Enforcement includes payment for unauthorized use, disposal, or recovery. Restrictions may be reduced if standards change.

(h) Limitations. These provisions are not applicable to:

Donated military aircraft or items with GSA handling or use restrictions.

(2) Property which was not placed in use for the purposes for which acquired within one year from the date the property was placed in use, and continued in use for one year from the date the property was placed in use, except with respect to secondary use or cannibalization as provided in FMR 102-37.290 through 102-37.320.

Conditions for items costing $5,000+ and passenger vehicles:

(i) The property shall be used only for purpose(s) for which acquired and for no other purpose(s).

(ii) There shall be a period of restriction which expires after the property had been used for the purpose(s) for which acquired, for a period of 18 months, from the date the property is placed in use, except for such items of major equipment listed hereon, on which the State agency designates a further period of restriction.

D. Agency Imposition of Terms

The State Agency may impose reasonable terms, conditions, reservations and restrictions on the use of donable property items other than those with a unit acquisition cost of $5,000 or more, and passenger vehicles.17

PART VII

NONUTILIZED DONABLE PROPERTY

A.

The State Agency will dispose of unneeded property per FMR 102-37.290–320.

B.

Transfers to Other State Agencies

Property will be offered via list or verbal notice; inspections encouraged. Transfers processed by SF123 through GSA, subject to 30-day disapproval.

C Report Unneeded Usable Property

The State Agency may report unneeded property to GSA for redistribution or disposal, marking it for federal use and reimbursement.

D.

Disposition

GSA will notify the State Agency of disposition, usually via transfer or sale report. Property for sale may be turned in to GSA or DOD; scrap metal sold on-site.

Reimbursement may be claimed per GSA Regulations.

E.

When property is unusable, valueless, or costs exceed sale proceeds, the State Agency will destroy or abandon it, pending GSA disapproval within 30 days.

PART VIII

FAIR AND EQUITABLE DISTRIBUTION

A.

Policy

The State Agency will fairly distribute surplus property based on needs, resources, and utilization, prioritizing the most needy recipients.

B.

Determination of relative needs, resources, and utilization abilities will be based on reviews of donee requests, emergency status, priorities from responsible authorities, and consultations with advisory bodies, including public/private institutions, Office of Emergency Services, State Departments, and key individuals. When the Governor declares a state of emergency, the State Office of Emergency Services may set property priorities. A ranking from the Department of Planning and Budget will help assess needs/resources of cities/counties. For nonprofit health and education institutions, aid will be sought from bodies like the Council of Independent Colleges, Virginia Hospital Association, and Virginia Association for Retarded Children.

C Application: The need, resources, and utilization determination applies to major items and special categories such as vehicles, construction and handling equipment, machine tools, generators, ADP, scientific equipment, vessels, and aircraft.

D.

Requests by donees: Authorized representatives may submit a list of needed items in categories, guided by known want lists, for screening and selection by Virginia Agency screeners.

Donee representatives may request specific items nationwide, meet with Agency screeners at Federal sites to inspect suitability, and pick up approved property directly if requested.

E.

Property Assignments

The State Agency will assign equipment as it becomes available per paragraphs B and C.

The State Agency will apply to GSA for specific property requested by donees and arrange direct pickup from the holding agency when feasible. Unspecified items may also be picked up if economical.

Most miscellaneous and major items will be screened and selected by Virginia Agency screeners via Internet and Federal sites for shipment to distribution centers. Major items will be offered to donees per paragraph B.

Non-major items will be available at the distribution center on a first-come, first-served basis. Unclaimed major items will also be available to other eligible donees. Visits are not required; representatives may inspect and select on any workday.

PART IX

ELIGIBILITY

A.

General

1. Surplus property may be donated via the State Agency to Virginia public agencies, subdivisions, instrumentalities, multi-jurisdictional districts, or Indian tribes, for public purposes like conservation, development, education, parks, health, safety, and emergency services.
2. Nonprofit Educational or Public Health Institutions, Programs that

Surplus property may be donated to nonprofit educational or public health institutions under Section 501, including medical, health, educational, and cultural organizations, which must use it primarily for its intended purpose and not commercially.

B Determination of Eligibility: The State Agency will determine if an applicant qualifies as a public agency or nonprofit educational/public health organization for program participation and donations.

Approvals require meeting criteria in law and FPMR 101-44.207. Eligibility files for certified or licensed programs, including nursing homes and care centers, must be updated every three years.

C.

Eligibility Procedures 21

1. Organizations interested in receiving Federal Surplus Property must request, complete, and mail an eligibility application to the State Agency.
2. The State Agency will review the application and notify the applicant of

approval, disapproval, or need for additional information.

D.

Information to be Included in the Application for Eligibility

1. Legal name, address, telephone, fax, and email
2. Applicant status: (a) Public Agency: specify type (e.g., state agency, city, county, college, hospital). (b) Nonprofit educational: specify type (e.g., school, rehab, library). (c) Nonprofit health: specify type (e.g., hospital, clinic).
3. Prepare an application; if nonprofit, include tax exemption proof under Section 501 of the IRC 1986.
4. Provide a concise description of the applicant’s program, including departments, services, facilities, and staff to determine eligibility.
5. Provide approval, accreditation, or licensing evidence; if unavailable, submit evaluation letter from relevant authority.
6. Donee’s authorized representative must execute the Nondiscrimination Assurance (Exhibit 6) before approval and surplus property acquisition, affirming compliance with applicable civil rights laws.
7. Application must be signed by the authorized official responsible for all matters related to Federal surplus property, including acquisition, funding, and disposal.
8. Additional info on needs, resources, and utilization may be requested to assist fair distribution.
9. Once approved, the official must designate a person responsible for surplus property; authorized persons' signatures will be on file.

E.

Conditional Eligibility: Newly organized activities not yet operational, approved, or licensed may qualify if the State Agency accepts letters from competent public authorities confirming they meet standards.

For educational activities, letters from accredited or approved institutions accepting students from the applicant may suffice, as deemed by the State Agency.

PART X

COMPLIANCE AND UTILIZATION

A.

Donated Items Subject to Compliance and Utilization Reviews on Terms and Conditions Part VI

1. Items costing $5000+ and all passenger vehicles.
2. Items requiring special handling or use limitations.

imposed by GSA per FMR 102.-37 Subpart E.

1. Statutory requirement that all items of donated property acquired by the donee be placed into use within one year of acquisition and thereafter used for twelve (12) months, or eighteen (18) months if the acquisition cost was $5000 or more or a passenger motor vehicle.
2. Items under $5000 may be stockpiled as determined by the State Agency.
3. Property involved in alleged fraud, theft, misuse, or unauthorized disposal.

B.

Reviews

1. The State Agency will conduct compliance and utilization reviews at least once during the period of use restriction for items as described, paragraph A. l. and 2.
2. The review may be accomplished by a questionnaire letter or by a visit to observe the property utilization. Staff members of the State Agency will visit donees to the extent of capabilities in time and costs. In addition to merely surveying compliance and utilization, visits will be constructive and helpful to the donees.

Information will be offered on terms and restrictions; item utilization potential, procedures and special opportunities in acquiring property, and invitation for comments on program improvement.

1. Review reports will be in the donee file; questionnaires or visit reports will document utilization, condition, and disposal recommendations.

C.

Compliance Actions

1. If an item is in eligible use, the report will note this; no further action needed.
2. Utilization deficiencies include nonuse, misuse, ineligible use (loan, gift), unauthorized cannibalization, disposal, sale, or failure to use timely, fraud, theft.
3. Upon deficiencies, the Agency will remedy by reusing, transferring, returning, destroying, abandoning, cannibalizing, or reporting to GSA for sale or reutilization.
4. The Agency will investigate alleged fraud, notify GSA, and prepare a report for authorized persons.
5. Theft reports will be investigated; details reported to law enforcement and GSA.
6. The Agency will investigate misuse allegations and notify GSA promptly.
7. The Agency will investigate fraud, misuse, theft, and assist GSA or others upon request.
8. During restrictions, the Agency may enforce compliance by requiring payment under specified circumstances.

Recover fair value if property has been improperly disposed of.

Recover fair rental value if used unlawfully.

The State Agency will coordinate with GSA before selling or demanding payment for donated property, especially if restrictions or non-use within 1 year. Funds from enforcement will be remitted to GSA for GSA-imposed restrictions; the Agency may retain funds for its restrictions.

D.

The State Agency may suspend donations for non-compliance or unpaid charges.

PART XI

CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND

PRIVATE GROUPS

A.

The State Agency will consult advisory and public/private groups to ensure fair distribution based on needs, resources, utilization, and emergency status.

Reference is made to Part VIII Fair and Equitable Distribution.

B.

The State Agency will contact advisory bodies and groups (e.g., Departments, leagues, associations, hospitals, dioceses, purchasing groups, administrators) via calls, visits, correspondence, meetings, and flyers. Needs and requirements will be solicited and shared with GSA for specific or general property needs.

PART XII

AUDIT

A.

State Agency prepares monthly Profit and Loss Statement and Balance Sheet. Expenditures, receipts, and cash balances are verified monthly with the State Comptroller by DGS Bureau of Fiscal Services.

B.

Internal Audit The State Agency will be periodically included in internal audits of the Department of General Services. The internal audit will include a review of the financial affairs and operations of the State Agency.

C.

External Audit The State Auditor of Public Accounts will audit the State Agency at least every two years. The audit will include a review of the conformance of the State Agency with the provisions of the State Plan of Operation and the requirements FMR 102-37.345 through 102-37.355. The State Agency will submit a copy of the audit report to the GSA regional office and will report all corrective actions taken with respect to any exceptions or violations indicated in the audit report. The State Auditor of Public Accounts operates under the authority of the Legislative Branch of Government. The State Agency operates under the Executive Branch of Government, Secretary of Administration and Finance, Department of General Services. Refer to Exhibit 7, Organization of the Virginia State Government.

D.

Additional Audits and Reviews

GSA representatives may visit the State Agency to coordinate activities and review operations.

GSA may conduct its own audit of the State Agency with prior notice to the Governor, for appropriate reasons.

All State Agency records, including financial, will be available for inspection by GSA, GAO, or other authorized Federal entities.

PART XIII

COOPERATIVE AGREEMENTS

A.

The State Agency will enter, review, or revise cooperative agreements with GSA or other Federal agencies under Virginia Code §2.2-11.23, Section 203(n) of the Federal Property and Administrative Services Act, and FMR 102-37.325. The agreements may include:

Use of donable property by the State Agency

Overseas property

Use of Federal facilities and services

Inter-State

B.

Cooperative agreements entered into between GSA and the State Agency may

be terminated by either party with 60 days' written notice.

Termination of an agreement between a Federal agency designated by GSA and

a State agency, and interstate cooperative distribution agreements, shall be

mutually agreed to by the parties.

C.

The State Agency may enter into such other cooperative agreements with eligible

agencies in the State as deemed necessary or advisable.

PART XIV

LIQUIDATION

The State Agency will submit a liquidation plan to GSA before terminating activities, per FMR 102-37.365–370.

The plan will include:

1. Reasons for the liquidation;

1. Liquidation schedule and estimated termination date;

1. Disposal methods for property under this part;

1. Disposal methods for agency assets;

1. Retain all SASP records for 2 years post-liquidation.

1. Designation of another governmental entity to serve as the agency’s successor in function until continuing obligations on property donated prior to the closing of the agency are fulfilled. 30

PART XV RECORDS All official records will be retained for at least 3 years, except:

Records involving property with restrictions over 2 years

will be kept 1 year beyond the restriction period.

Records involving property in compliance status at the end of the period of

will be kept at least 1 year after case closure.

PART XVI FORMS The required basic forms for the State Agency are listed below and included as exhibits.

Exhibit 1.

Distribution Document and Invoice Exhibit 2.

Surplus Property Transfer Document (Standard Form 123) Exhibit 3.

Combat-Type Aircraft Conditional Transfer Document Exhibit 4.

Non-Combat-Type Aircraft Conditional Transfer Document Exhibit 5.

Vessel Conditional Transfer Document (50 feet or more in length) Exhibit 6.

Nondiscrimination Assurance Exhibit 7.

Chart: Organization of the Virginia State Government Federal forms may also be accessed from the following link: http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=10977&noc=T Additional forms may also be used to serve State Agency operations. The forms may be added, deleted, or changed, but will conform to department, state, and federal requirements. 3232

Exhibit 1 – Distribution Document and Invoice

DGS-43-008DGS-43-008 COMMONWEALTHCOMMONWEALTH OFOF VIRGINIAVIRGINIA DEPARTMENTDEPARTMENT OFOF GENERALGENERAL SERVICESSERVICES

FEDERALFEDERAL SURPLUSSURPLUS PROPERTYPROPERTY 19101910 DARBYTOWNDARBYTOWN ROADROAD TelephoneTelephone (804)(804) 236-2781236-2781 RICHMOND,RICHMOND, VAVA 2323123231 FaxFax (804)(804) 236-3663236-3663

DISTRIBUTIONDISTRIBUTION DOCUMENTDOCUMENT ANDAND INVOICEINVOICE

DATEDATE INVOICEINVOICE ##

CUSTOMERCUSTOMER (DONEE)(DONEE)

AGENCYAGENCY CODECODE BILLINGBILLING

##CUSTOMERCUSTOMER ##

PHONEPHONE NUMBERNUMBER

(( ))ADDRESSADDRESS

LICENSELICENSE NUMBER:NUMBER: PROPERTYPROPERTY

PARTIALPARTIAL PICKPICK UPUP TAKENTAKEN YESYES NONO

FEDFED SURPSURP DATEDATE

COMPLIANCECOMPLIANCE ITEMITEM CARDCARD ISSUEDISSUED

MAKEMAKE CHECKSCHECKS PAYABLEPAYABLE TO:TO: MAILMAIL CHECKSCHECKS TO:TO:

TRESURERTRESURER OFOF VIRGINIAVIRGINIA DGS/FISCALDGS/FISCAL SERVICESSERVICES

PAYMENTPAYMENT ISIS DUEDUE WITHINWITHIN 3030 PLEASEPLEASE ENCLOSEENCLOSE AA COPYCOPY OFOF POPO BOXBOX 267267

DAYSDAYS OFOF THISTHIS INVOICEINVOICE THISTHIS INVOICEINVOICE WITHWITH PAYMENTPAYMENT RICHMOND,RICHMOND, VAVA 23218-026723218-0267

SS UNITUNIT TOTALTOTAL QTY.QTY. UNITUNIT TOTALTOTAL TRANSFERTRANSFER CC ACQ.ACQ. ACQ.ACQ. && SERVICESERVICE SERVICESERVICE

L.I.#L.I.# ORDERORDER ## ITEMITEM DESCRIPTIONDESCRIPTION RR COSTCOST COSTCOST UNITUNIT CHARGECHARGE CHARGECHARGE

SUBSUB TOTALTOTAL FROMFROM CONTINUATIONCONTINUATION SHEETSHEET TOTALTOTAL

The property listed is 'as is, where is' with no warranties. It is for official use only, not personal. Read additional terms on back. As authorized agent, I accept and commit to certifications and agreements on reverse.

AuthorizedAuthorized SignatureSignature

PropertyProperty IssuedIssued ByBy 3333

CERTIFICATIONSCERTIFICATIONS ANDAND AGREEMENTSAGREEMENTS

(a)(a) THETHE DONEEDONEE CERTIFIESCERTIFIES THAT:THAT: (1)(1) ItIt isis aa publicpublic agency;agency; oror aa nonprofitnonprofit educationaleducational oror publicpublic healthhealth institutioninstitution oror organization,organization, exemptexempt fromfrom taxationtaxation underunder SectionSection 501501 ofof thethe InternalInternal RevenueRevenue CodeCode ofof 1954;1954; withinwithin thethe meaningmeaning ofof sectionsection 203(j)203(j) ofof thethe FederalFederal PropertyProperty andand AdministrativeAdministrative ServicesServices ActAct ofof 1949,1949, asas amendedamended andand thethe regulationsregulations ofof thethe AdministratorAdministrator ofof GeneralGeneral Services.Services. (2)(2) IfIf aa publicpublic agency,agency, thethe propertyproperty isis neededneeded andand willwill bebe usedused byby thethe recipientrecipient forfor carryingcarrying outout oror promotingpromoting forfor thethe residentsresidents ofof aa givengiven politicalpolitical areaarea oneone oror moremore publicpublic purposes,purposes, or,or, ifif aa nonprofitnonprofit tax-exempttax-exempt institutioninstitution oror organization,organization, thethe propertyproperty isis neededneeded andand willwill bebe usedused byby thethe recipientrecipient forfor educationaleducational oro r publicpublic healthhealth purposes,purposes, andand includingincluding researchresearch forfor suchsuch purpose.purpose. TheThe propertyproperty isis notnot beingbeing acquiredacquired forfor anyany otherother useuse oror purpose,purpose, oror forfor salesale oror otheotherr distribution;distribution; oror forfor permanentpermanent useuse outsideoutside thethe State,State, exceptexcept withwith priorprior approvalapproval ofof thethe StateState agency.agency. (3)(3) FundsFunds areare availableavailable toto paypay allall costscosts andand chargescharges incidentincident toto donation.donation. (4)(4) ThisThis transactiontransaction shallshall bebe subjectsubject toto thethe nondiscriminationnondiscrimination regulationsregulations governinggoverning thethe donationdonation ofof surplussurplus personalpersonal propertyproperty issuedissued underunder TitleTitle VIVI oo ff thethe CivilCivil RightsRights ActAct ofof 19641964 andand TitleTitle VIVI SectionSection 606606 ofof thethe FederalFederal PropertyProperty andand AdministrativeAdministrative ServicesServices ActAct ofof 1949,1949, asas amended,amended, andand SectionSection 504504 ofof thethe RehabilitationRehabilitation ActAct ofof 1973,1973, asas amended.amended. AlsoAlso includeinclude TitleTitle IXIX ofof thethe EducationEducation AmendmentsAmendments ofof 1972,1972, asas amended,amended, andand SectionSection 303303 ofof thethe AgeAge DiscriminatioDiscriminationn ActAct ofof 1975.1975.

(b)(b) THETHE DONEEDONEE AGREESAGREES TOTO THETHE FOLLOWINGFOLLOWING FEDERALFEDERAL CONDITIONSCONDITIONS (1)(1) AllAll itemsitems ofof propertyproperty shallshall bebe placedplaced inin useuse forfor thethe purpose(s)purpose(s) forfor whichwhich acquiredacquired withinwithin oneone yearyear ofof receiptreceipt andand shallshall bebe continuedcontinued inin useuse forfor sucsuchh purpose(s)purpose(s) forfor oneone yearyear fromfrom thethe datedate thethe propertyproperty waswas placedplaced inin use.use. InIn thethe eventevent thethe propertyproperty isis notnot soso placedplaced inin use,use, oror continuedcontinued inin use,use, thethe doneedonee shallshall immediatelyimmediately notifynotify thethe StateState agency,agency, andand atat thethe donee’sdonee’s expense,expense, returnreturn suchsuch propertyproperty toto thethe StateState agency,agency, oror otherwiseotherwise makemake thethe propertyproperty availableavailable forfor transfertransfer oror otherother disposaldisposal byby thethe StateState agency,agency, providedprovided thethe propertyproperty isis stillstill usableusable asas determineddetermined byby thethe StateState agency.agency. (2)(2) SuchSuch specialspecial handlinghandling oror useuse limitationslimitations asas areare imposedimposed byby GeneralGeneral ServicesServices AdministrationAdministration (GSA)(GSA) onon anyany items(s)items(s) ofof propertyproperty listedlisted hereon.hereon. (3)(3) InIn thethe eventevent thethe propertyproperty isis notnot soso usedused oror handledhandled asas requiredrequired byby (b)(b) (1)(1) andand (2),(2), titletitle andand rightright toto thethe possessionpossession ofof suchsuch propertyproperty shallshall atat thethe optionoption ofof GSAGSA revertrevert toto thethe UnitedUnited StatesStates ofof AmericaAmerica andand uponupon demanddemand thethe doneedonee shallshall releaserelease suchsuch propertyproperty toto suchsuch personperson asas GSAGSA shallshall direct.direct.

The donee agrees to conditions imposed by the State agency applicable to items with

UNITUNIT ACQUISITIONACQUISITION COSTCOST OFOF $5,000$5,000 OROR MOREMORE ANDAND PASSENGERPASSENGER MOTORMOTOR VEHICLES,VEHICLES, REGARDLESSREGARDLESS OFOF ACQUISITIONACQUISITION COST,COST,

EXCEPTEXCEPT VESSELSVESSELS 5050 FEETFEET OROR MOREMORE ININ LENGTHLENGTH ANDAND AIRCRAFT.AIRCRAFT.

(1)(1) TheThe propertyproperty shallshall bebe usedused onlyonly forfor thethe purposes(s)purposes(s) forfor whichwhich acquiredacquired andand forfor nono otherother purposes(s).purposes(s). (2)(2) ThereThere shallshall bebe aa periodperiod ofof restrictionrestriction whichwhich willwill expireexpire afterafter suchsuch propertyproperty hashas beenbeen usedused forfor thethe purposes(s)purposes(s) forfor whichwhich acquiredacquired forfor aa periodperiod ofof 1818 monthsmonths fromfrom thethe datedate thethe propertyproperty isis placedplaced inin use,use, exceptexcept forfor suchsuch itemsitems ofof majormajor equipment,equipment, listedlisted hereon,hereon, onon whichwhich thethe StateState agencyagency designatesdesignates aa furthefurtherr periodp eriod ofof restriction.restriction. (3)(3) InIn thethe eventevent thethe propertyproperty isis notnot soso usedused asas requiredrequired byby (c)(1)and(c)(1)and (2)(2) andand FederalFederal restrictionsrestrictions (b)(1)(b)(1) andand (2)(2) havehave expiredexpired thenthen titletitle andand rightright toto thethe possessionp ossession ofof suchsuch propertyproperty shallshall atat thethe optionoption ofof thethe StateState agencyagency revertrevert toto thethe StateState ofof VirginiaVirginia andand thethe doneedonee shallshall releaserelease propertyproperty toto suchsuch personperson asas thethe StateState agencyagency shallshall direct.direct.

The donee agrees to terms, reservations, and restrictions:

(1)(1) FromFrom thethe datedate itit receivesreceives thethe propertyproperty listedlisted hereonhereon andand throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) aboveabove remainremain iinn effect,effect, thethe doneedonee shallshall notnot sell,sell, trade,trade, lease,lease, lend,lend, bail,bail, cannibalize,cannibalize, encumberencumber oror otherwiseotherwise disposedispose ofof suchsuch property,property, oror removeremove itit permanently,permanently, forfor useuse outsideoutside thethe State,State, withoutwithout priorprior approvalapproval fromfrom GSAGSA underunder (b)(b) oror thethe StateState agencyagency underunder (c).(c). TheThe proceedsproceeds fromfrom anyany sale,sale, trade,trade, lease,lease, loan,loan, bailment,bailment, encumbranceencumbrance oror otherother disposaldisposal ofof thethe property,property, whenwhen suchsuch actionaction isis authorizedauthorized byby GSAGSA oror byby thethe StateState agency,agency, shallshall bebe remittedremitted promptlypromptly byby thethe doneedonee toto GSAGSA oror thethe StateState agency,agency, asas thethe casecase maymay be.be. (2)(2) InIn thethe eventevent anyany ofof thethe propertyproperty listedlisted hereonhereon isis sold,sold, traded,traded, leased,leased, loaned,loaned, bailed,bailed, cannibalized,cannibalized, encumbered,encumbered, oror thethe otherwiseotherwise disposeddisposed ofof byby thethe doneedonee fromfrom thethe datedate itit receivedreceived thethe propertyproperty throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) remainremain inin effect,effect, withoutwithout thethe priorprior approvalapproval ooff GSAGSA oror thethe StateState agency,agency, thethe donee,donee, atat thethe optionoption ofof GSAGSA oror thethe StateState agencyagency shallshall paypay toto GSAGSA oror thethe StateState agency,agency, asas thethe casecase maymay be,be, thethe proceedsproceeds ofof thethe disposaldisposal ofof thethe fairfair marketmarket valuevalue oror thethe fairfair rentalrental valuevalue ofof thethe propertyproperty atat thethe timetime ofof suchsuch disposal,disposal, asas determineddetermined byby GSAGSA oror thethe StateState agency.agency. (3)(3) IfIf atat anyany time,time, fromfrom thethe datedate itit receivedreceived thethe propertyproperty throughthrough thethe period(s)period(s) ofof timetime thethe conditionsconditions imposedimposed byby (b)(b) andand (c)(c) remainremain inin effect,effect, anyany ooff thethe propertyproperty listedlisted hereonhereon isis nono longerlonger suitable,suitable, usable,usable, oror furtherfurther neededneeded byby thethe doneedonee forfor thethe purpose(s)purpose(s) forfor whichwhich acquired,acquired, thethe doneedonee shallshall promptlypromptly notifynotify thethe StateState agency,agency, andand shall,shall, asas directeddirected byby thethe StateState agency,agency, returnreturn thethe propertyproperty toto thethe StateState agency,agency, releaserelease thethe propertyproperty toto anotheranother doneedonee oror anotheranother StateState agency,agency, aa departmentdepartment oror agencyagency ofof thethe UnitedUnited States,States, sellsell oror otherwiseotherwise disposedispose ofof thethe property.property. TheThe proceedsproceeds fromfrom anyany salesale shallshall bebe remittedremitted promptlypromptly byby thethe doneedonee toto thethe StateState agency.agency. (4)(4) TheThe doneedonee shallshall makemake reportsreports toto thethe StateState agencyagency onon thethe use,use, condition,condition, andand locationlocation ofof thethe propertyproperty listedlisted hereonhereon andand onon otherother pertinentpertinent mattersmatters asas maymay bebe requiredrequired fromfrom timetime toto timetime byby thethe StateState agency.agency. (5)(5) AtAt thethe optionoption ofof thethe StateState agency,agency, thethe doneedonee maymay abrogateabrogate thethe conditionsconditions setset forthforth inin (c)(c) andand thethe terms,terms, reservationsreservations andand restrictionsrestrictions pertinenpertinentt theretothereto inin (d)(d) byby paymentpayment ofof anan amountamount asas determineddetermined byby thethe StateState agency.agency.

The donee agrees to conditions applicable to all items listed hereon:

(1)(1) TheThe propertyproperty acquiredacquired byby thethe doneedonee isis onon anan “As“As is,is, WhereWhere is”is” basis,basis, withoutwithout warrantywarranty ofof anyany kind.kind. (2)(2) WhereWhere aa doneedonee carriescarries insuranceinsurance againstagainst damagesdamages toto oror lossloss ofof propertyproperty duedue toto firefire oror otherother hazardshazards andand wherewhere lossloss ofof oror damagedamage toto donatedonatedd propertyp roperty withwith unexpiredunexpired terms,terms, conditions,conditions, reservationsreservations oror restrictions,restrictions, occurs,occurs, thethe StateState agencyagency willwill bebe entitledentitled toto reimbursementreimbursement fromfrom thethe doneedonee outout ofof thethe insuranceinsurance proceeds,proceeds, ofof anan amountamount equalequal toto thethe unamortizedunamortized portionportion ofof thethe fairfair valuevalue ofof thethe damageddamaged oror destroyeddestroyed donateddonated items.items.

Terms and conditions applicable to donation of aircraft and vessels (50 feet or more in length).

HAVING AN ACQUISITION COST OF $5,000 OR MORE, REGARDLESS OF PURPOSE:

TheThe donationdonation shallshall bebe subjectsubject toto thethe terms,terms, conditions,conditions, reservations,reservations, andand restrictionsrestrictions setset forthforth inin thethe ConditionalConditional TransferTransfer DocumentDocument executedexecuted byby thethe authorizedauthorized doneedonee rere pp resentative.resentative. 34

Exhibit 2 – Surplus Property Transfer (Standard Form 123), and Exhibit 3 – Combat-Type Aircraft Conditional Transfer (GSA Link).

The transfer documents are from FSS P 4025.5, Donation of Surplus Personal Property, with the year updated to 20__.

Conditional Transfer Documents

Sensitive property requires special handling and additional terms in transfer documents, such as vessels (50+ ft) and aircraft ($5,000+), including GSA-imposed use limitations and conditions per the combat aircraft transfer document.

Figure 2-9.4. Combat-type aircraft conditional transfer document COMBAT-TYPE AIRCRAFT CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s): in accordance with the proposed program and plan as set forth in the Donee's "letter of Intent" dated ______________, as amended ______________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all of its rights, title, and interest in and to the following described combat-type aircraft, aircraft engines, and propellers, together with all engines, appurtenances, and accessories attached thereto or installed therein (all of which are hereinafter referred to as the Property), which has been determined by GSA to have a fair market value of $_______, unto the Donee to have and to hold the Property, all singular forever, this donation being made on an "as is, 38 where is" basis without warranty of any kind, and delivery made at present location of the Property regardless of where the same may be situated or the condition thereof: SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee agrees the aircraft shall not be used for flight.
2. The Donee shall place the Property in use for the stated purpose within 12 months of acquisition and use it thereafter in perpetuity.
3. In the event the aircraft is not placed in use by the donee within 12 months of receipt and used thereafter in perpetuity, within 30 days after the Property has ceased to be used, the Donee shall provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP or otherwise dispose of the Property through the SASP, as may be directed by GSA.
4. If the Property isn't used or handled as required, GSA may revert title to the U.S. Government. Donee shall, upon GSA's demand, release, sell, or dispose of it, with proceeds for the U.S. Government.
5. During restrictions in (2) and (3), the Donee shall report to SASP on Property use, condition, location, and other matters as required by SASP or GSA.
6. During the periods of restriction prescribed in (2) and (3) above , the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of the Property, or remove it permanently for use outside the State, without the prior written approval of GSA. The proceeds from any sale, trade, lease, loan, bailment, encumbrance, cannibalization, or other disposal of the Property during the periods of restriction set forth in (2) and (3), above, when such action is authorized by GSA, shall be for the benefit and account of the United States Government.
7. If at any time, from the date the Donee receives the Property through the periods of restriction prescribed in (2) and (3), above, the Property is no longer suitable, usable, or further needed by the Donee for the purpose for which acquired, the Donee shall promptly notify the SASP and shall as directed by GSA through the SASP: (a) Release the Property to another donee or State Agency; 39 (b) Release to a U.S. department or agency; (c) Release to an institution or agency with need; (d) Sell the Property for the U.S. with proceeds remitted to GSA; (e) Render the Property unfit for use, for material recovery, as GSA directs; (f) Dispose as GSA directs.
8. If Property is disposed of without GSA approval during restrictions, GSA may hold the Donee liable for proceeds, fair market value, or rental value at GSA's discretion.
9. In the event of a breach by the Donee, or its successor in function, of any of the above conditions, whether caused by the legal inability of the Donee or its successor in function, interest in and to the Property shall, at the option of GSA, forthwith revert to and become the property of the United States Government, and the Donee, or its successors or assigns, shall forfeit all of its or their rights, title, and interest in and to the Property.

10. The SASP shall not grant waivers, amendments, releases, or terminate any of the terms and conditions enumerated in (1) through (9), above, concerning the use or disposal of the Property, or issue disposal instructions to the Donee for the Property without the prior written concurrence of GSA or its successor in function. 11. The Donee agrees to hold harmless and indemnify the SASP or the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed upon, exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

The Donor and Donee execute this instrument on _________, ____________, 20__.

United States of America, via Virginia State Agency for Surplus Property. 40 By ___________________ Title __________________

DONEE:

By ________________, Title ________________, Institution/Organization ________________.

City ________________, County ________________, State ________________.

On this ______day of _________ 20___, before me appeared ________________, personally known, sworn, who executed the instrument under delegated authority for the Virginia State Agency for Surplus Property, acknowledging it as the free act of Virginia.

Given under my hand and seal the day and year above.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of _______________ STATE of _________________

(SEAL)

My Commission Expires: _____________________________

CITY of __________________) COUNTY of __________________) STATE of __________________)

On this ____ day of _______, 20___, before me appeared ___________________, personally known, sworn, who executed the instrument on behalf of __________________, authorized, as a free act and deed.

Given under my hand and seal of the day and year above. 41 ___________________________ Notary Public in and for the CITY of ____________________ COUNTY of_________________ STATE of __________________

(SEAL)

My Commission Expires: _______________________________ 42 Exhibit 4 – Non-Combat-Type Aircraft Conditional Transfer Document (GSA Document Link)

The Conditional Transfer Documents below are from FSS P 4025.5, Donation of Surplus Personal Property. The year has been updated to read “20__” in lieu of “19__.”

Conditional Transfer Documents

Some property, due to its sensitive nature, requires special handling and additional terms in distribution. Donation is via a conditional transfer document with applicable terms, e.g., vessels (50+ ft) and aircraft costing $5,000+ including combat-type aircraft, subject to GSA and State agency restrictions (see fig. 2-9.3).

Figure 2-9.3. Non-combat-type aircraft conditional transfer document NON-COMBAT-TYPE AIRCRAFT CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant to the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereinafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s):

in accordance with the proposed program and plan as set forth in the Donee's "Letter of Intent" dated ______________, as amended ______________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all of its rights, title, and interest in and to the following described non-combat-type aircraft, aircraft engines, and propellers, together with all engines, appurtenances, and accessories attached thereto or installed therein (all of which are hereinafter referred to as the Property), which has been determined by GSA to have a fair market value of $_______ , unto the Donee to have and to hold the Property, all singular forever, this donation being made on an "as is, where is" basis 43 without warranty of any kind, and delivery made at present location of the Property regardless of where the same may be situated or the condition thereof.

SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee agrees to apply to the Federal Aviation Administration (FAA) for registration of the Property which is intended for flight purposes within 30 days of the receipt of a fully executed copy of this instrument. The Donee's application for registration shall include a fully executed copy of this instrument.

1. The Property shall be used for the stated purpose within 12 months of acquisition and for a 12-month period thereafter.

1. A further restriction begins after use in (2), lasting 48 months, during which the Property shall only be used for the stated purpose(s).

1. In the event the Donee does not apply to the FAA for registration of the Property which is intended for flight operations (or other uses, unless registration is waived by GSA) or in the event the aircraft is not placed in use within 12 months of receipt, and used for a 12-month period thereafter, within 30 days after the Property has ceased to be used, the Donee shall provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP or otherwise dispose of the Property, through the SASP, as may be directed by GSA.

1. If the Property isn't used or handled as required, GSA may revert title to the U.S. Government. Donee shall, upon GSA's demand, release, sell, or dispose of it, with proceeds for the U.S. Government.

1. During restrictions in (2) and (3), the Donee shall report to SASP on Property use, condition, location, and other matters as required.

1. After restriction in (3), SASP shall execute and send a release to the Donee.

1. During the periods of restriction prescribed in (2) and (3), above, the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of the Property, or remove it permanently for use outside the State, without the prior written 44 approval of GSA. The proceeds from any sale, trade, lease, loan, bailment, encumbrance, or other disposal of the Property during the period of restriction set forth in (2) and (3), above, when such action is authorized by GSA, shall be for the benefit and account of the United States Government.

1. In the event, during the periods of restriction prescribed in (2) and (3), above, the Property is sold, traded, leased, loaned, bailed, encumbered, or otherwise disposed of without prior written approval of GSA, the Donee, at the option of GSA, shall be liable for the proceeds of the disposal, the fair market value, or the fair rental value of the Property at the time of such unauthorized transaction or use, as determined by GSA.

10. If, from receipt through the restriction periods in (2) and (3), the Property becomes unsuitable, unusable, or no longer needed, the Donee shall promptly notify SASP and follow GSA’s directions:

(a) Release to another donee or State agency;

(b) Release to a U.S. department or agency;

(c) Release to an institution or agency with need;

(d) Sell the Property for the U.S. with proceeds remitted to GSA;

(e) Render the Property unfit for use, for material recovery, as GSA directs;

(f) Dispose as GSA directs.

11. GSA may, at its option, abrogate terms in (3) and (6)-(10) upon payment of a determined amount.

GSA.

12. GSA may waive or terminate terms in (3) and (6)-(10), granting unrestricted title when deemed appropriate in writing.

13. The Donee agrees to hold harmless and indemnify the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed upon, 45 exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

IN WITNESS WHEREOF, the Donor and the Donee have duly executed this instrument this _________day of ____________, 20__.

United States of America Acting by and through the Virginia State Agency for Surplus Property.

By ___________________ Title __________________

DONEE:

By ___________________ Title __________________ Institution or Organization _______________________

CITY of __________________) COUNTY of__________________) STATE of __________________)

On this ______day of _________ 20___, before me appeared ________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument and that such instrument was executed under duly delegated authority on behalf of the Virginia State Agency for Surplus Property, and acknowledged the foregoing instrument to be the free act and deed of the Commonwealth of Virginia.

Given under my hand and official seal the day and year above written.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of _______________ STATE of _________________

(SEAL)

My Commission Expires: _____________________________

CITY of __________________) COUNTY of __________________) 46 STATE of __________________)

On this ____ day of _______, 20___, before me appeared ___________________, to me personally known, who, being by me duly sworn, says that he/she is the person who executed the foregoing instrument on behalf of said __________________, and acknowledges to me that he/she was duly authorized to execute the foregoing instrument and that he/she executed the same as a free act and deed of said ______________________.

Given under my hand and seal of the day and year above.

___________________________ Notary Public in and for the CITY of ____________________ COUNTY of_________________ STATE of __________________

(SEAL)

My Commission Expires: _______________________________ 47 Exhibit 5 – Vessel Conditional Transfer Document (50+ ft) (GSA Link)

The Conditional Transfer Document below is from FSS P 4025.5, Donation of Surplus Personal Property. The year has been updated to read “20__” in lieu of “19__.”

Conditional Transfer Documents

Certain property, due to its sensitive nature, requires special handling and additional terms in donation. Vessels (50+ ft) and aircraft ($5,000+) are donated via a conditional transfer, subject to GSA and State restrictions (see fig. 2-9.2).

Figure 2-9.2. Vessel conditional transfer document VESSEL CONDITIONAL TRANSFER DOCUMENT KNOW ALL MEN BY THESE PRESENTS: That the United States of America, hereinafter called the “General Services Administration” or “GSA,” acting by and through the Commonwealth of Virginia, State Agency for Surplus Property, hereinafter called the “SASP,” pursuant the powers and authority contained in the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), as amended, for and in consideration of and in reliance upon the representations of ___________________ whose address is __________________________________, hereinafter called the “Donee,” that the Property hereafter described is required in the furtherance of the Donee's program and that such Property will be used solely in connection with such programs and more specifically for all the following purpose(s): in accordance with the proposed program and plan as set forth in the Donee's "Letter of Intent" dated _______________, as amended __________________, which Expression of Interest is hereby incorporated herein and made a part thereof, and for no other purpose, does hereby deliver, sell, assign, and transfer all rights, title, and interest in and to the following described vessel:

together with all engines, appurtenances, and accessories attached or installed (the Property), which GSA has valued at $_________, is hereby donated to the Donee to hold forever, on an "as is, where is" basis without warranty, delivered at the current location regardless of condition or site.

SUBJECT, HOWEVER, to the following conditions and restrictions:

1. The Donee shall obtain and maintain vessel documentation as required by U.S. and State laws. GSA may waive documentation for permanently moored vessels upon request.

1. The Donee shall record this Vessel Transfer with the Coast Guard within 30 days of receipt; if waived, registration is also waived.

1. The Property shall be used for the stated purpose within 12 months of acquisition and for 12 months thereafter.

1. A further restriction begins after use in (3), lasting 48 months, during which the Property shall only be used for the stated purpose(s).

1. In the event the Donee does not record this Vessel Conditional Transfer Document with the Coast Guard Documentation Officer at the port of documentation of the Property within 30 days after the date of receipt of the fully executed Vessel Conditional Transfer Document, or in the event the Property is not placed in use within 12 months of receipt and used for a 12-month period thereafter, the Donee shall within 30 days after the date on which the instrument should have been recorded, or within 30 days after the Property has ceased to be used, provide notice thereof in writing to the SASP, and at the Donee's expense, return such Property to the SASP or otherwise make the Property available for transfer, provided the Property is still usable as determined by the SASP, or otherwise dispose of the Property, through the SASP, as may be directed by GSA.

1. If the Property isn't used or handled as required, GSA may revert title to the U.S. Government. Donee shall, upon GSA's demand, release, sell, or dispose of it, with proceeds for the U.S. Government.

1. During the periods of restrictions prescribed in (3) and (4), above, the Donee shall make reports to the SASP on the use, condition, and location of the Property and on other pertinent matters as may be required from time to time by the SASP or GSA.

1. During restrictions in (3) and (4), the Donee shall not dispose of or remove the Property outside Virginia without GSA's prior approval. Proceeds from authorized actions benefit the U.S. Government.

1. In the event, during the periods of restriction prescribed in (3) and (4), above, the Property is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of without prior written approval of GSA, or is used for a purpose other than the purpose(s) stated, the Donee, at the option of GSA, shall be liable for the proceeds of the disposal, the fair market value, or the fair rental value of the Property at the time of such unauthorized transaction or use, as determined by GSA.

10. If, at any time from receipt through the restriction periods, the Property is no longer suitable, usable, or needed, the Donee shall promptly notify SASP and, as directed by GSA, return, transfer, sell for the U.S., or dispose of the Property accordingly.

11. GSA may, at its option, allow the Donee to abrogate terms in (4) and (6)–(10) by paying an amount determined and concurred by GSA in writing.

12. GSA may waive any or may terminate all of the terms and conditions set forth in (4) and (6) through (10), above, and give unrestricted title to the Property in favor of the Donee whenever such action is determined in writing by GSA to be appropriate. 13. The Donee agrees to hold harmless and indemnify the SASP or the United States Government for any and all costs, judgment, action, debt, liability costs and attorney's fees or any other request for monies of any type of relief arising from or incident to the transfer, donation, use processing, disposition, or any subsequent operation performed 50 upon, exposure to or contact with any component, part, constituent or ingredient of the item, material or substance, whether intentional or accidental.

IN WITNESS WHEREOF, the Donor and Donee have duly executed this instrument this _____ day of _____________, 20___.

United States of America, acting through the Virginia State Agency for Surplus Property.

By ______________________ Title _____________________

DONEE:

By _______________________ Title ______________________ Institution or Organization __________________________

CITY of __________________ COUNTY of __________________ STATE of ____________________ On this ______day of _________ 20___, before me appeared __________________, known to me, sworn, says he/she executed the instrument under authority for the Virginia State Agency for Surplus Property, acknowledging it as the free act of Virginia.

Given under my hand and official seal the day and year above written.

__________________________ Notary Public in and for the CITY of ___________________ COUNTY of ________________ STATE of __________________

(SEAL)

My Commission Expires: ____________________________________

CITY of __________________, STATE of __________________, COUNTY of __________________, on this ____ day of ___________, 20___, before me appeared __________________, known to me, sworn, says he/she executed the instrument on behalf of the ___________, authorized, and acknowledged it as the free act of ______________________.

Given under my hand and seal the day and year above. __________________________ Notary Public in and for the CITY of ____________________, COUNTY of ________________, STATE of __________________

(SEAL)

My Commission Expires: ___________________________________ 52

Exhibit 6 – Nondiscrimination Assurance

The certification required by donees of the Virginia State Agency for Surplus Property to ensure compliance with GSA’s nondiscrimination regulations.

NON-DISCRIMINATION CERTIFICATION

The donee hereby agrees that the program for or in connection with which any property is donated will be conducted in compliance with, and the donee will comply with and will require any other person (any legal entity) who, through contractual or other arrangements with the donee is authorized to provide services or benefits under said program to comply with, all requirements imposed by or pursuant to the regulation of the General Services Administration (41 CFR 101-6.2 entitled “Nondiscrimination in Programs Receiving Federal Financial Assistance”) issued under the provisions of Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, as amended, Title IX of the Education Amendments of 1972, as amended, and Section 303 of the Age Discrimination Act of 1975, and Civil Rights Restoration Act of 1987, to the end that no person in the United States shall, on the ground of race, color, natural origin, sex or age, or the no otherwise qualified handicapped person shall solely be reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity for which the donee received Federal assistance from the General Services Administration and hereby gives assurance that it will immediately take any measures necessary to effectuate this agreement.

The donee further agrees that this agreement shall be subject in all respects to the provisions of said regulations, that this agreement shall obligate the donee for the period during which it retains ownership or possession of any such property, that the United States shall have the right to seek judicial enforcement of this agreement, and this agreement shall be binding upon any successor in interest of the donee and the word “donee” as used herein includes any such successor in interest.

__________________________________________ ________________ Signature of Chief Executive Officer/Agency Head Date

__________________________________________ _________________ Type/Print Name Title53 Exhibit 7 – Organization of the Virginia State Government 54

July 2021 version Commonwealth of Virginia

VENDORS MANUAL

A Vendor's Guide on How to do Business with the Commonwealth of Virginia

Revised December 1998

Department of General Services Division of Purchases and Supply 1111 East Broad Street Richmond, VA 23219 July 2021 version

VENDORS MANUAL

DECEMBER 1998 EDITION

INTRODUCTION

The Vendors Manual is published under the authority of 2.2-1111 of the Code of Virginia. Its purpose is to set forth rules and regulations applicable to the purchase of nontechnology goods and nonprofessional services by the Commonwealth.

The 1998 edition incorporates changes legislated by the General Assembly and also includes a number of editorial changes to improve readability and understanding of the manual. This edition of the Vendors Manual is effective December 1, 1998. It supersedes all previous editions. A complete Vendors Manual containing all changes and a listing of changes made since publication of this edition may be obtained from the Department of General Services (DGS), Division of Purchases and Supply (DPS) and on the eVA Internet Home Page. The direct link to the Vendors Manual is https://dgs.virginia.gov/globalassets/business-units/dps/documents/vendorsmanual/vendors-manual_as-of-070118.pdf .

Any vendor providing nontechnology goods or nonprofessional services to the Commonwealth should be familiar with the contents of this manual. It generally applies to all state procurements except capital outlay construction (which is subject to the procedures of the Construction and Professional Services Manual) and the procurement of professional services as defined by the Virginia Public Procurement Act (VPPA). Reference made throughout the Vendors Manual to the Department of Information Technology (DIT) or the Department of Technology Planning (DTP) is no longer valid, effective 7/1/03. Guidance for information technology procurements is issued by the Virginia Information Technologies Agency (VITA).

Your comments and suggestions for the improvement of state purchasing or this manual are always welcome. Comments should be addressed to:

Policy, Consulting and Review DGS/DPS P. O. Box 1199 Richmond, VA 23218-1199 Telephone: 804-786-0324 Fax: 804-786-5712

Donald C. Williams D.B. Smit Director, DGS Deputy Director, DGS July 2021 version

Table of Contents

AUTHORITY AND RESPONSIBILITYOne

1. 0 General
2. 1 Authority and Responsibility
3. 2 Statutory Exemptions
4. 3 Administrative Exceptions
5. 4 Agency Purchasing Function
6. 5 Purchases for Local Governments
7. 6 Purchases from Term Contracts (Mandatory Source)
8. 7 Purchases from State Agencies or Nonprofit Vendors
9. 8 Preferences
10. 9 Open Records
11. 10 Cooperative Procurement

PROCUREMENT METHODSTwo

1. 1 Policy
2. 2 Exceptions from Competitive Bidding
3. 3 Small Purchase Procedures
4. 4 Sealed or Formal Bids
5. 5 Two-Step Sealed Bidding
6. 6 Competitive Negotiation
7. 7 Deleted
8. 8 Emergency Procurement
9. 9 Sole Source Procurement
10. 10 Public Auction Sale
11. 11 Reverse Auction
12. 12 Prequalification

Three GENERAL REQUIREMENTS OF VENDORS

1. 1 Application and Registration
2. 2 Changes in Registration
3. 3 Visits by Vendors
4. 4 Vendor Assistance to State Agencies
5. 5 Personal Interest and Gifts
6. 6 Prohibited Participation
7. 7 Responsible Bidder or Offeror
8. 8 Responsive Bidder July 2021 version Three - continued

1. 9 Copyright
2. 10 Ownership of Artwork, Negatives and Other Submitted Information, etc.
3. 11 Deleted
4. 12 Prohibited Contracts
5. 13 Subsequent/Additional Bid/Proposal for the Same Procurement
6. 14 Virus-free and Accessible Submittals
7. 15 Authorization to Transact Business in the Commonwealth
8. 16 E-Verify Program

SOLICITATIONSFour

1. 1 Selection of Bidders/Offerors
2. 2 Response Time
3. 3 Prebid or Pre-Proposal Conference
4. 4 Receipt of Sealed Bids or Proposals
5. 5 Receipt of Unsealed Proposals
6. 6 Canceling or Amending a Solicitation
7. 7 Combining Responses to Separate Solicitations is Prohibited
8. 8 Postage
9. 9 Facsimile Bids or Proposals
10. 10 Late Bids or Proposals
11. 11 Bonds
12. 12 Insurance
13. 13 Specifications, Questions, and Comments
14. 14 Brand Names
15. 15 Contractor Registration (License)
16. 16 Notice of Pending Procurements

Five SOLICITATION RESPONSES

1. 1 Solicitation Forms
2. 2 Vendor Name and Address
3. 3 Signature on Bid or Proposal
4. 4 Terms and Conditions
5. 5 Pricing and Discounts
6. 6 Samples
7. 7 Alternate Bids
8. 8 Taxes
9. 9 Time of Performance
10. 10 Questions Concerning Solicitations
11. 11 Amending or Withdrawing Bids or Proposals by Vendors July 2021 version Five - continued

1. 12 Alterations to Bids or Proposals
2. 13 Mistakes in Bids
3. 14 Withdrawal of Bids
4. 15 Denial of Withdrawal of Bid Six EVALUATION AND AWARD

1. 0 General
2. 1 Evaluation of Bid and Proposals
3. 2 Acceptance Period
4. 3 Notice of Intent to Award and Notice of Award
5. 4 Multiple Awards and Split Awards
6. 5 Tie Bids
7. 6 Deleted
8. 7 Negotiation with the Lowest Responsible Bidder

PERFORMANCESeven

1. 1 Purchase Order, Authority or Shipment
2. 2 New/Used/Altered
3. 3 Packaging
4. 4 Substitutions
5. 5 Loss or Damage in Transit
6. 6 Freight
7. 7 Delivery
8. 8 Receipt of Shipments
9. 9 Overshipments/Overruns
10. 10 Inspection
11. 11 Assignment of Contract
12. 12 Contract Renewal or Extension
13. 13 Complaints
14. 14 Termination for Default
15. 15 Cancellation of Purchase Orders and Contracts
16. 16 Purchase Order Changes
17. 17 Contract Modification Restriction
18. 18 Termination for Convenience of the Commonwealth
19. 19 Claims
20. 20 Debarment
21. 21 Ineligibility or Disqualification of Manufacturer
22. 22 Debarment Period
23. 23 Debarment Notification and Appeal Procedure July 2021 version Seven - continued

1. 24 Suspension

CHARGES AND COLLECTIONSEight

1. 1 Separate Agency Records
2. 2 Charge Cards for Small Purchases
3. 3 Billings and Invoices
4. 4 Partial Payments
5. 5 Contractor Payment Assistance
6. 6 Prompt Payment of Bills
7. 7 Payment Requirements: All Contracts
8. 8 Payment by Electronic Funds Transfer Nine PROTESTS AND APPEALS

1. 0 General
2. 1 Deleted
3. 2 Deleted
4. 3 Appeal of Ineligibility or Disqualification Determination or Debarment
5. 4 Appeal of a Denial of Bid Withdrawal
6. 5 Appeal of Nonresponsibility Determination
7. 6 Protest of Award or Decision to Award
8. 7 Deleted
9. 8 Exhaustion of Administrative Procedures.
10. 9 Effect of Appeal on Procurement Proceedings
11. 10 Time and Place of Hearings
12. 11 Deleted
13. 12 Hearing Procedures
14. 13 Deleted
15. 14 Administrative Support
16. 15 Board's Decision
17. 16 Judicial Review
18. 17 Alternative Dispute Resolution Appendices DEFINITIONS

Appendix A Pages A-1 through A-9 Definitions Appendix B Pages B-1 & B-2 Terms and Conditions & Instructions to Vendors Pages B-3 through B-10 Required General Terms and Conditions IndexJuly 2021 version July 2021 version

CHAPTER 1

AUTHORITY AND RESPONSIBILITY

In this Chapter look for . . .

1. General
2. 1 Authority and Responsibility
3. 2 Statutory Exemptions
4. 3 Administrative Exceptions
5. 4 Agency Purchasing Function
6. 5 Purchases for Local Governments
7. 6 Purchases from Term Contracts (Mandatory Source)
8. 7 Purchases from State Agencies or Nonprofit Vendors
9. 8 Preferences
10. 9 Open Records
11. 10 Cooperative Procurement

1. General. Public purchasing embraces a fundamental obligation to the general public to ensure that procurements are accomplished in accordance with the intent of the laws enacted by the appropriate legislative body. The intent of the Virginia General Assembly is set forth in the Virginia Public Procurement Act (VPPA).

“To the end that public bodies in the Commonwealth obtain high quality goods and services at reasonable cost, that all procurement procedures be conducted in a fair and impartial manner with avoidance of any impropriety or appearance of impropriety, that all qualified vendors have access to public business, and that no offeror be arbitrarily or capriciously excluded, it is the intent of the General Assembly that competition be sought to the maximum feasible degree, that procurement procedures involve openness and administrative efficiency, that individual public bodies enjoy broad flexibility in fashioning details of such competition, that the rules governing contract awards by made clear in advance of the competition, that specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor, and that the purchaser and vendor freely exchange information concerning what is sought to be procured and what is offered. Public bodies may consider best value concepts when procuring goods and nonprofessional services, but not construction or professional services. The criteria factors, and basis for consideration of best value and the process for the consideration of best value shall be as stated in the procurement solicitation.” (Code of Virginia, § 2.2-4300C).

This statement of intent by the General Assembly highlights the use of competition to the maximum feasible degree. Competitive procurement requires time and administrative effort; it does not guarantee that an agency's preferred brand or vendor will be selected. Conducted properly, competitive procurement responds to user needs, results in public confidence in the integrity of public purchasing, and generally brings the most favorable prices. July 2021 version

The VPPA applies generally to every “public body” in the Commonwealth which § 2.2-4301 of the Code of Virginia defines to include “any legislative, executive, or judicial body, agency, office, department, authority, post, commission, committee, institution, board or political subdivision created by law to exercise some sovereign power or to perform some governmental duty . . . .”

If there is to be a contract between a state agency and nongovernmental vendor, the VPPA and the regulations set forth by the Division of Purchases and Supply, to include this Vendors Manual, apply regardless of the source of funds by which the contract is to be paid or which may or may not result in monetary consideration for either party. These documents also apply whether the consideration is monetary or nonmonetary and regardless of whether the public body, the contractor, or some third party is providing the consideration.

1. 1 Authority and Responsibility.

a. The Department of General Services, Division of Purchases and Supply (DGS/DPS). DGS/DPS is the centralized purchasing agency for materials, supplies, equipment, printing and nonprofessional services required by any state agency or institution. All such purchases made by any department, division, officer, or agency of the Commonwealth shall be made in accordance with the Code of Virginia, Chapter 43, Title 2.2, and such rules and regulations as DGS/DPS may prescribe. DGS/DPS has the authority to make, alter, amend, or repeal regulations relating to the purchase of materials, supplies, equipment, nonprofessional services, and printing, and may specifically exempt particular agency purchases below a stated amount, or specific materials, equipment, nonprofessional services, supplies or printing (Code of Virginia, § 2.2-1111C). DGS/DPS has responsibility for the standardization of materials, equipment, and supplies purchased by or for any agency of the state (Code of Virginia, § 2.2-1112). DGS/DPS also has authority to establish criteria and procedures to obtain economical operation of all state-owned printing facilities (Code of Virginia, § 2.2-1113A).

Agency heads have the ultimate responsibility to ensure that the acquisition of goods and services does not violate nor circumvent state law, executive orders, appropriations, regulations, or the provisions of this manual.

b. eVA Internet Home Page. The Commonwealth’s electronic procurement system is eVA. The eVA home page address is www.eva.virginia.gov. It is organized into vendor, “I SELL TO VIRGINIA” and agency, “I BUY FOR VIRGINIA” and “WHAT VIRGINIA BUYS” user areas with separate links for “Business Opportunities”, “Transparency”, “Statewide Contracts” and “Resources.” The link, “I SELL TO VIRGINIA” is geared toward the vendor community and includes the “Purchasing Rules – the Vendor’s Manual” as well as “eVA Vendor Training.” “I BUY FOR VIRGINIA” is geared toward the Commonwealth of Virginia public body buyer community. It includes procurement law (the Virginia Public Procurement Act, VPPA) and policy (the Agency Procurement and Surplus Property Manual, APSPM), which sets forth the policies and procedures to be followed by state agencies and institutions in the purchase of non-technology goods and nonprofessional services. There are links to the Virginia Distribution Center (VDC), the Department of General Services and the Division of Purchases and Supply websites as well as links to related websites. The DPS Statewide Contract list is updated as soon as contracts are awarded. Vendors are encouraged to periodically check the eVA and DGS/DPS website for changes and other information. July 2021 version

1. 2 Statutory Exemptions. Purchasing through DGS/DPS is not mandatory in the following cases; (Code of Virginia, § 2.2-1119):

a. Materials, equipment and supplies as are incident to the performance of a contract for labor or for labor and materials;

b. Manuscripts, maps, audiovisual materials, books, pamphlets and periodicals purchased for the use of The Library of Virginia or any other library in the Commonwealth supported in whole or in part by state appropriations;

c. Perishable articles, provided that no article except fresh fruit and vegetables, fresh fish, fresh meat, fresh fruit, fresh eggs and fresh milk shall be considered perishable within the meaning of this clause, unless so classified by DGS/DPS; however, the purchase of perishable articles identified above that are Virginia-Grown and not expected to exceed $100,000 may be exempt from the VPPA and the APSPM provided the procurement is accomplished in accordance with §2.2-4343-22;

d. Materials, equipment, and supplies needed by the Commonwealth Transportation Board; however, this exception may include office stationery and supplies, office equipment, janitorial equipment and supplies, coal and fuel oil for heating purposes only when authorized in writing by DGS/DPS;

e. Materials, equipment, and supplies needed by the Virginia Alcoholic Beverage Control Board; however, this exception may include office stationery and supplies, office equipment, janitorial equipment and supplies, coal and fuel oil for heating purposes only when authorized in writing by

DGS/DPS;

f. Binding and rebinding of the books and other literary materials of libraries operated by the Commonwealth or under its authority;

g. Printing of the records of the Supreme Court;

h. Financial services, including without limitation, underwriters, financial advisors, investment advisors and banking services; and

i. VCE purchases for supplies, materials, and services for use in and support of its production facilities up to any dollar amount. This exemption does not include purchases of equipment, software, hardware and printing.

1. 3 Administrative Exceptions. DGS/DPS may delegate purchasing authority or authorize exceptions from its rules and regulations for particular agencies or for specified nontechnology goods, nonprofessional services, and printing. The following general exceptions have been granted:

a. Purchases under Delegated Authority. State agencies may purchase within the dollar limits and categories delegated by DGS/DPS without requisitioning through DGS/DPS.

b. Acquisition of Information Technology and Telecommunications Equipment, Goods, and Services. Virginia Information Technologies Agency (VITA) has oversight and procurement July 2021 version

responsibility for the purchase of information technology goods and services, including telecommunications equipment. Further information on IT goods and services can be found at http://www.vita.virginia.gov.

1. 4 Agency Purchasing Function. State agencies are authorized to make direct purchases of non-technology goods and printing within the limits delegated by DGS/DPS. Other requirements must be processed through DGS/DPS as applicable. Agencies are authorized to contract for services up to any dollar amount subject to applicable laws, regulations, this manual, and fiscal restraints. Exceptions to this provision are covered in paragraphs 1.6 and 1.7 of this manual. Agency personnel having “official responsibility” for procurement must comply with the VPPA and the policies and procedures set forth in the Agency Procurement and Surplus Property Manual (APSPM) and this manual.

1. 5 Purchases for Local Governments. Upon request, DGS/DPS and VDOT may procure nontechnology material, equipment, supplies or services for local governments. Nonprofit educational television entities may also purchase through DGS/DPS. Direct sales may be also be made to organizations as established in §2.2-1122, of the Code of Virginia, to include emergency medical services agencies and fire departments established pursuant to Code of Virginia, §15.2-955 Fire company as defined in §27-6.01 or volunteer emergency medical services agency as defined in §32.1-111.1 that is recognized by an ordinance to be part of the safety program of a county, city or town;

1. 6 Purchases from Term Contracts - (Mandatory Source)

a. A state agency may issue an agency purchase order in any amount, except for limitations imposed on specific contracts, for any item or service available on a term contract authorized for use by that agency, which DPS has established. Local governments may purchase from statewide contracts unless the contract is specifically limited to state agencies. If an item is available on a DGS/DPS mandatory contract or from the Virginia Distribution Center, an agency or institution may not establish a contract for the same or similar goods or services or use its local purchasing authority to purchase from another source unless the purchase does not meet the contract minimum order requirement. In an emergency, the use of contract sources may be waived by the applicable purchasing office responsible for administering the term contract. The sale or attempted sale by a vendor to a state agency of goods or services which are required to be ordered from a term contract or from a mandatory source (see paragraph 1.7), may subject a vendor to removal from the Vendors List if that vendor knowingly sells to a state agency goods or services which must be purchased under a term contract or from a mandatory source.

b. VITA establishes contracts for the purchase of information technology goods and services to include computers, software, telecommunications equipment and services for the use of state agencies and institutions.

c. Term Contracts for goods or services are for the sole benefit of the Commonwealth of Virginia, its agencies and institutions and, in some cases, its political subdivisions. The contracts do not apply to government employees or other individuals, and ordering of goods from these contracts by individuals for personal use is prohibited. July 2021 version

1. 7 Purchases from State Agencies or Employment Services Organization Vendors

a. The Code of Virginia requires that certain goods or services be procured, where available, from designated state agencies or employment services organization vendors. These include:

(1) Department of Corrections (Code of Virginia, §§ 2.2-1116, 53.1-47, 53.1-48, 53.1-49)

(2) Department for the Blind and Vision Impaired (Code of Virginia, §§ 2.2-1117 and 2.2-4344 A1 (a)

b. Goods or services may be procured without competition from employment services organizations (Code of Virginia, §§ 2.2-1118 and 2.2-4344 A1 (b).

1. 8 Preferences

a. Virginia Vendors. Preference is given to materials, equipment and supplies produced in Virginia, goods, or services or construction provided by Virginia persons, firms or corporations in the event of a tie bid (see 6.5). Whenever the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a percentage preference, a like preference shall be allowed to the lowest responsible bidder who is a resident of Virginia and is the next lowest bidder. If the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a price-matching preference, a like preference shall be allowed to bidders who are residents of Virginia (Code of Virginia, § 2.2-4324B). If the lowest responsive and responsible Virginia bidder is unable to match the price, the preference shall be given to other Virginia bidders in ascending price order. If the lowest bidder is a resident contractor of another state with an absolute preference, the bid shall not be considered.

DGS/DPS will post and maintain a listing of preference laws provided by other states on the eVA website. (Absolute preference defined, see Appendix A.) See www.eva.virginia.gov for a listing of state preference laws.

b. Recycled Paper and Paper Products. Agencies are encouraged to promote the use of recycled products. In determining the award of any contract for paper and paper products to be purchased for use by agencies of the Commonwealth, the Department of General Services, or agencies under their delegated purchasing authority, shall procure using competitive sealed bidding and shall award to the lowest responsible bidder offering recycled paper and paper products of a quality suitable for the purpose intended, so long as the bid price is not more than ten percent greater than the bid price of the low responsive and responsible bidder offering a product that does not meet the EPA Recommended Content Standards (Code of Virginia, § 2.2-4326).

c. Petitioning for Less Toxic Goods or Products. Any person who manufactures, sells, or supplies goods or products may petition agency purchasing offices to include less toxic goods and products in its procurement process. The petitioner shall submit, prior to or during the procurement process, documentation which establishes that the goods or products meet the performance standards set forth in the applicable specifications. If an agency determines that the documentation establishes that the less toxic goods or products meet the performance standards set forth in the applicable specifications, it shall incorporate such goods or products into its procurement process. Agencies have been July 2021 version

instructed to revise their procedures and specifications on a continuing basis to encourage the use of these products; however, they are not required to purchase, test, or evaluate any particular good or product other than those that would be purchased under regular purchasing procedures (Code of Virginia, § 2.2-4314).

d. Coal. There is a preference for Virginia mined coal used in state facilities. In determining the award of any contract for coal to be purchased for use in state facilities with state funds, DPS shall procure using competitive sealed bidding and shall award to the lowest responsive and responsible bidder offering coal mined in Virginia, so long as its bid price is not more than four percent greater than the bid price of the low responsive and responsible bidder offering coal mined elsewhere (Code of Virginia, § 2.2-4325).

e. Recycled Oil and Recycled Antifreeze Preference. The preference applies to lubricating oils containing re-refined oil or reprocessed oil, including engine lubricating oils, hydraulic fluids, and gear oils, excluding marine and aviation oils and reclaimed engine coolants, excluding coolants used in non-vehicular applications. It also applies to recycled antifreeze and other lubricants such as transmission, hydraulic and specialty oils, brake fluid and greases. Recycled oils shall meet American Petroleum Institute (API) and original equipment manufacturers (OEM) standards and shall be API or equivalently certified. Recycled antifreeze (ethanol glycol) shall meet OEM standards and shall meet the cooling, freeze protection and corrosion resistance requirements of gasoline, diesel, propane, and natural gas engines with or without aluminum blocks.

Preference shall be given to products containing recycled oil and/or antifreeze, so long as the price is not more than 10% greater than the price of a non-recycled oil and/or antifreeze meeting specification and certification requirements.

f. Use of Recycled Goods or Products. Any person who believes that particular goods or products with recycled content are functionally equivalent to the same goods or products produced from virgin materials may petition the procuring agency or institution to include the recycled goods or products in its procurement process. The petitioner shall submit documentation which establishes that the goods or products (i) contain recycled content and (ii) can meet the performance standards set forth in the applicable specifications prior to bid/proposal due date. If the procuring agency or institution which receives the petition request determines that the documentation demonstrates that the goods or products with recycled content will meet the performance standards set forth in the applicable specifications, it shall incorporate such goods or products into its procurement process. (See Code of Virginia § 2.2-4313.)

g. Enhancement or Remedial Measures: Measures authorized by the Governor pursuant to § 2.2-4310 relating to Small Business Enhancement Programs that allow for small businesses certified by the DSBSD or a subcategory of small businesses established as a part of the enhancement program to have a price preference over noncertified businesses competing for the same contract award, provided that the certified small business or the business in such subcategory of small businesses does not exceed the low bid by more than five percent.

h. Energy-Efficient and Water-Efficient Goods. If a Commonwealth agency or institution receives two or more bids for products that are Energy Star certified, meet the Federal Energy Management Program (FEMP) July 2021 version

designated efficiency requirements, appear on FEMP’s Low Standby power Product List, or are WaterSense certified, the agency or institution shall only select among those bids. These classifications may be found on Energy Star’s website at: https://www.energy.gov/eere/femp/federal-energy-management-program.

1. 9 Open Records. Procurement proceedings, records, contracts, and orders are public records, open to the inspection of any citizen or any interested person, firm or corporation, in accordance with the Virginia Freedom of Information Act (Code of Virginia, § 2.2-3700 et seq.). Cost estimates relating to a proposed procurement transaction prepared by or for a state agency shall not be open to public inspection (Code of Virginia, § 2.2-4342B). Bid and proposal records are not available to the public for inspection until after the award except that any bidder, upon request, shall be afforded the opportunity to inspect bid records within a reasonable time after the opening and evaluation of all bids but prior to award, except in the event that the public body decides not to accept any of the bids and to rebid.

Any competitive negotiation offeror, upon request, shall be afforded the opportunity to inspect proposal records within a reasonable time after the evaluation and negotiation of proposals are completed but prior to award, except in the event that the public body decides not to accept any of the proposals and to resolicit.

Despite the preceding restrictions as to when bidders, offerors, and the general public may inspect bid and proposal records, once bids have been publicly opened and their prices announced, the names of the bidders and their bid prices may be disclosed to anyone. Likewise, the identity of offerors submitting proposals in the competitive negotiation process may be disclosed.

Unsealed bid and unsealed proposal records shall be open to the inspection of any citizen, or any interested person, firm or corporation in accordance with the Virginia Freedom of Information Act only after award of the contract.

Any inspection of records shall be subject to reasonable restrictions to ensure the security and integrity of the records (Code of Virginia, § 2.2-4342E).

A procuring agency may make reasonable charges for the copying, search time and computer time expended in the supplying of procurement records in response to a public request. The charge shall not exceed the actual cost to the procuring agency of supplying such records. Upon request the procuring agency will furnish in advance an estimate of the charges for supplying procurement records (Code of Virginia, § 2.2-3704F).

Trade secrets or proprietary information submitted by a bidder, offeror, or contractor in connection with a procurement transaction shall not be subject to public disclosure under the Virginia Freedom of Information Act; however, the bidder or offeror must invoke the protections of the Code of Virginia, §

1. 2-4342F, prior to or upon submission of the data or other materials, and must identify the data or other materials to be protected and state the reason why protection is necessary. The proprietary or trade secret material submitted must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire bid or proposal document, line item prices and/or total bid or proposal prices as proprietary or trade secrets is not acceptable. If, after being given reasonable time, the bidder or offeror refuses to withdraw an entire classification designation, the bid or proposal will be rejected. July 2021 version

1. 10 Cooperative Procurement.

a. The Code of Virginia, § 2.2-4304 authorizes public bodies to participate in, sponsor, conduct, or administer joint procurements to satisfy requirements for goods and non-professional services. Any authority, department, division, institution, officer, agency, and other unit of state government, hereinafter called the agency, must comply with the following requirements, and all such purchases shall be made through eVA. In addition, joint contracts or arrangements under which any fees, incentives or financial terms, direct or indirect, may be rebated, paid, or credited to Commonwealth using agencies require the approval of DGS/DPS before any order or commitment can be made by the using agency.

b. Use of Commonwealth Cooperative Contracts: Agencies desiring to purchase from cooperative contracts for non-telecommunications and non-technology goods and nonprofessional services as set forth in §2.2-4304 may do so without regard to their delegated purchasing authority when all the following conditions are met: (1) no DGS/DPS contract exists for the same or similar goods and services; (2) the contracts were awarded by Commonwealth agencies or institutions; (3) the agency participated in the request for proposal or invitation to bid or the contract original solicitation specified that the procurement was being conducted on behalf of other public bodies; (4) the contracts are posted on the eVA State Contracts listing to assure public visibility of the full terms and pricing of such contracts and any amendments; and (5) the contractors are registered in eVA and agree to the Commonwealth's General Terms and Conditions, any other terms and conditions, and any other considerations for doing business with the Commonwealth.

c. Use of Non-Commonwealth Cooperative Contracts, including National Cooperatives awarded by other than Commonwealth agencies and institutions: These cooperatives are not authorized unless approved in writing by DGS/DPS. Authorized cooperative contracts awarded by other than Commonwealth agencies are posted on the eVA State Contracts listing to assure public visibility of the full terms and pricing of such contracts after DGS/DPS determines that the contracts comply with §2.2-4304; that prices are fair and reasonable; that Virginia businesses have been afforded access to participate; that the contractors are registered in eVA; and that contractors agree to the Commonwealth's General Terms and Conditions, any other terms and conditions, and any other considerations for doing business with the Commonwealth.

d. General Services Administration (GSA) or other U.S. Government Contracts: As authorized by the United States Congress and consistent with applicable federal regulations, and provided the terms of the contract permit such purchases, § 2.2-4304 of the Code of Virginia permits any authority, department, agency, or institution of the Commonwealth to purchase goods and nonprofessional services, other than telecommunications and information technology, from a U.S. General Services Administration contract or a contract awarded by any other agency of the U.S. government, upon approval of the Director of the Division of Purchases and Supply of the Department of General Services for non-technology purchases and the Commonwealth’s Chief Information Officer for technology purchases. For non-IT general purchases only one GSA Schedule has been approved for use by Congress, Schedule 84. Certain law enforcement, drug interdiction, and emergency operations programs have been granted authority by Congress to use any GSA Schedule subject to GSA guidelines as to when they may be used.July 2021 version July 2021 version

CHAPTER 2

PROCUREMENT METHODS

In this Chapter look for . . .

1. 1 Policy
2. 2 Exceptions from Competitive Bidding
3. 3 Small Purchase Procedures
4. 4 Sealed or Formal Bids
5. 5 Two-Step Sealed Bidding
6. 6 Competitive Negotiation
7. 7 Deleted
8. 8 Emergency Procurement
9. 9 Sole Source Procurement
10. 10 Public Auction Sale
11. 11 Reverse Auction
12. 12 Prequalification

1. 1 Policy.

a. Contracts with nongovernmental sources for the purchase, lease or rental of goods, printing, insurance, nonprofessional services, and construction, shall be awarded after competitive sealed bidding, or competitive negotiation as provided in this manual, unless otherwise authorized by law. Competition shall be sought to the maximum feasible extent. A sufficient number of sources must be solicited for the procurement of goods or services consistent with the method of procurement used. In the solicitation, awarding or administration of contracts, no agency shall discriminate against a bidder, offeror, or contractor because of the race, religion, color, sex, age, disability, national origin, sexual orientation, gender identity, political affiliation, or veteran status, or any other basis prohibited by state law relating to discrimination in employment (Code of Virginia, § 2.2-4310A; Executive Order 1 (2014)).

To implement the policy of Executive Order 61 (2017) that Executive Branch agencies will only contract with those who abide by the non-discrimination policies in Executive Order 1 (2014), all Executive Branch entities shall include in their solicitations where the estimated value is greater than $10,000 General Term and Condition C - ANTI-DISCRIMINATION subparagraph 1.f, unless the state agency, department or institution issuing the solicitation has made a written determination not to include subparagraph 1.fin General Term and Condition C. This written determination may be made upon good cause shown by a request from a faith-based organization, based upon consideration of other applicable laws or regulations, and must be made prior to the close date. The written determination and any request for the written determination shall be maintained in the procurement file. All Invitations to Bid and Request for Proposals should also explicitly state that faith-based July 2021 version

organizations, otherwise qualified to respond to the Initiation to Bid or Request for Proposal, may request that the agency not include subparagraph 1.f. in General Terms and Condition C. Such a request should be in writing and explain why an exception should be made in that Invitation to Bid or Request for Proposal. For the purposes of this provision, a “faith-based organization” is (1) an entity organized for the purposes of engaging in religious practice or (2) a charitable or educational organization affiliated with such an entity.”

The decision not to include subparagraph 1.f. in General Terms and Condition C does not indicate that any contractor or subcontractor is permitted to engage in discrimination in the provision of goods and services on behalf of the Commonwealth such that no person is excluded from participation in, denied the benefits of, or subjected to discrimination in the administration of public programs and services based on non-merit factors such race, sex, color, national origin, religion, sexual orientation, gender identity, age, political affiliation, disability, or veteran status. Such discrimination would itself constitute a violation of any contract or subcontract to provide goods and services to the public on behalf of the Commonwealth.

In addition it is the policy of the Commonwealth of Virginia to contribute to the establishment, preservation, and strengthening of small businesses and businesses owned by women and minorities and to encourage their participation in state procurement activities. Towards that end, the Commonwealth encourages firms to provide for the participation of such businesses through partnerships, joint ventures, subcontracts, and other contractual opportunities. In addition, all Commonwealth employees with purchasing responsibility who are involved in procurement decisions for goods and services are expected to notify and give every consideration to using qualified small business including micro business suppliers of procurement opportunities in a manner that is consistent with state and federal laws and regulations and with the provisions set forth in this manual. Whenever the agency or institution engages in a solicitation or request for quotes, it will include businesses selected from the list made available by the Department of Small Business and Supplier Diversity (DSBSD) and eVA web sites, www.sbsd.virginia.gov and www.eva.virginia.gov.

This shall include DSBSD-certified women, minority, and service disabled veteran owned businesses when they also hold a DSBSD certification as a small business.

b. Certified Vendors. For purposes of any particular procurement a vendor shall be considered a Micro Business or Small Business if and only if the vendor holds a certification, as such by the DSBSD by the due date for receipt of bids or proposals for the procurement in question. DSBSD-certified women, minority, and service disabled veteran owned businesses shall also be considered micro or small businesses for a particular procurement if they hold a DSBSD micro or small business certification on the due date for receipt of bids or proposals for that procurement. The eVA vendor certification data is provided by DSBSD.

c. Small Business Subcontracting Plan. In accordance with the Commonwealth’s policy of facilitating and maximizing the participation of small businesses, which includes businesses owned by women, minorities, and service disabled veterans when their businesses have also received DSBSD small business certification, in its purchasing programs, an evaluation criterion for all procurements in excess of $100,000 shall be a Small Business Subcontracting Plan. This requirement is to ensure July 2021 version

DSBSD-certified small business participation, which will assist efforts toward achieving the statewide goal of 42% of the Commonwealth’s discretionary spending in combined prime and subcontracts for DSBSD-certified small businesses.

d. Set-Aside for Award Priority. The goal of the Commonwealth is that more than 42% of its purchases be made from small businesses. "Small businesses" are those which have received certification from DSBSD by the due date for receipt of bids or proposals, including those small businesses (including micro) that are also DSBSD certified as women, minority and/or service disabled veteran owned businesses.

Award of a contract shall be made in order of the Small Business Enhancement Award Priority as follows:

Small Business Enhancement Award Priority

Awards under $10,000: For competitive purchases under $10,000, the award of a contract shall be made to the lowest priced or highest ranked DSBSD-certified micro business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such micro business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder. If there are no reasonably priced bids/offers meeting the above criteria received from certified micro businesses, an award shall be made to the lowest priced or highest ranked DSBSD-certified small business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such small business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder If there are no reasonably priced bids or offers meeting the above criteria received from certified micro or small businesses, an award may be made to the lowest priced bidder or highest ranked offeror of any size that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if the price is fair and reasonable. If the agency or Institution determines and documents that no bid/offered price is fair and reasonable then the procurement may be cancelled and re-solicited removing the set-aside award priority.

Awards over $10,000 up to and including $100,000: For purchases over $10,000 up to and including $100,000, an award shall be made to the lowest priced or highest ranked DSBSD-certified small business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such small business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder. If there are no reasonably priced bids/offers meeting the above criteria received from certified micro or small businesses, an award may be made to the lowest priced bidder or highest ranked offeror of any size that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if the price is fair and reasonable. If the agency or Institution determines and documents that no bid/offered price is fair and reasonable then the procurement may be cancelled and re-solicited removing the set-aside award priority. July 2021 version

Set-aside Award Priority: Micro Business Set-Aside Award Priority Up to and including $10,000.00 1) Micro Business 2) Small Business 3) Open to all Small Business Set-Aside Award Priority Over $10,000 up to and including $100,000 1) Small Business (including micro businesses) 2) Open to all

When setting aside procurements, there must be adequate competition to ensure the Commonwealth continues to obtain fair and reasonable prices and the orders must be placed through eVA. Set-asides do not apply to mandatory sources or non-mandatory sources such as the Virginia Industries for the Blind, Virginia Correctional Enterprises, Employment Services Organizations, as well as purchases made from existing mandatory or optional state contracts, nor does it apply to classifications of goods/services specifically exempted from competitive requirements by DPS.

Bidders and subcontractors must have received their DSBSD certification as a small business by the solicitation due date in order to be considered responsive.

1. 2 Exceptions from Competitive Requirements. DGS/DPS has determined that competition is normally not practicable or available for the following circumstances:

a. Purchases up to and including $10,000.

b. The following selected categories of goods and services up to and including $100,000:

(1) Books, pre-printed materials, reprints and subscriptions (e.g., print or electronic), pre-recorded audio and video cassettes, compact discs, slide presentations, etc., when only available from the publisher/producer.

(2) Academic/research consulting services.

(3) Purchases of used equipment including used equipment purchased at a public or online auction.

(4) Honoraria, entertainment (speakers, lecturers, musicians, performing artists).

(5) Deleted.

(6) Royalties and film rentals when only available from the producer or protected distributors.

(7) Professional Organizational Membership dues.

(8) Writers. July 2021 version

(9) Artists (does not include graphic artists); original works of art; and original, or authentic antique period art frames (does not include newly created replacement or reproduction frames).

(10) Photographers other than for graduations and yearbooks, e.g., for official photographs/portraits.

(11) Contributions and donations made by a university.

(12) Advertisements such as in newspapers, magazines, journals, radio, television, etc.

(13) Utility charges.

(14) Conference facilities (to include conference support and related lodging and meals) only when the use of a specific facility is directed by an outside donor, sponsor, or organization.

(15) Accreditation fees and academic testing services.

(16) Exhibition Rental Fees for exhibitions of historical artifacts or original works of art. (The rental fee may include charges other than the rental of the exhibition, such as transportation costs.)

(17) Rare and historic manuscript, printed and photographic materials (e.g. books, ephemera, maps, manuscripts, photographs, and prints) that are one of a kind or exist in very limited supply.

(18) Purchases for testing or evaluation (limited to a one-time purchase of quantities considered necessary for complete and adequate testing).

c. Purchases from the federal government, other states and their agencies or institutions, and public bodies.

d. Purchase of Virginia-grown food products for use by a public body where the annual cost of the product is up to and including $100,000. (Does not include catering services)

1. 3 Small Purchase Procedures

a. Single Quotation (up to and including $10,000). Where the agencies’ or institutions’ estimated cost of goods or nonprofessional services is up to and including $10,000, unless exempted, purchases shall be made upon receipt of a minimum of one (1) written or telephone (oral) quotation or Quick Quote may be used, from a DSBSD-certified micro business, if available. An e-Mall catalog (non-contract) price from a DSBSD-certified micro business, if available, can be considered a quote, provided the agency determines the price to be fair and reasonable. Additional small business sources may also be solicited. If more than one quote is solicited, the award will be made to the lowest responsive and responsible DSBSD-certified micro business bidder, provided the agency determines the price to be fair and reasonable.

b. Informal Solicitations (over $10,000 up to and including $100,000). July 2021 version

1. Unsealed Bidding. Quick Quote is the preferred sourcing tool and shall be used to solicit bids or quotes for goods and nonprofessional services over $10,000 up to and including $100,000.

Vendors must be registered in eVA in order to respond to Quick Quotes in eVA. Quick Quote responses must be submitted in one of the following ways to be considered responsive: electronic submission through eVA or printed Quick Quote paper response form submitted in person, by fax, mailed, or as an attachment to an email received prior to the bid due date and time.

Unsealed bidding may be used in lieu of Quick Quote for complex procurements. If Quick Quote is not used, agencies shall utilize the funictionality in eVA to publically post the solicitation.

Bidders shall provide their DSBSD-certified small business (including micro) number on set-aside solicitations. eVA VBO public posting is required if the solicitation exceeds $10,000.

Procurements under $10,000 shall be set-aside exclusively for award to DSBSD-certified micro businesses if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority (3.10g). The solicitation shall designate in the title of the solicitation that the procurement is set-aside for micro businesses.

Procurements over $10,000 and up to and including $100,000 shall be set-aside exclusively for award to DSBSD-certified small businesses (including micro) if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority (3.10g). The solicitation shall designate in the title of the solicitation that the procurement is set-aside for small businesses.

Award should be made to the lowest responsive and responsible bidder in accordance with the Small Business Enhancement Award Priority

1. Unsealed Request for Proposals. Agencies and institutions may obtain required goods or nonprofessional services using the Unsealed Request for Proposal process up to and including $100,000. Offerors shall provide their DSBSD-certified small business (including micro) number on set-aside solicitations. eVA VBO advertising is required. A written determination for the use of competitive negotiation is not required for Unsealed Request for Proposals.

Procurements under $10,000 shall be set-aside exclusively for award to DSBSD-certified micro businesses if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority. The solicitation shall designate in the title of the solicitation that the procurement is set-aside for micro businesses.

Procurements over $10,000 and up to and including $100,000 shall be set-aside exclusively for award to DSBSD-certified small businesses (including micro) if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an July 2021 version

award may be made in accordance with the Small Business Enhancement Award Priority. The solicitation shall designate in the title of the solicitation that the procurement is set-aside for small businesses.

In lieu of an evaluation committee, the buyer or end user may solely evaluate and rank offers.

Upon completion of the evaluation, negotiations shall be conducted with the offerors selected.

Award should be made to the highest ranking offeror in accordance with the Small Business Enhancement Award Priority.

1. 4 Sealed (Formal) Bids. Written sealed bids are required for goods or nonprofessional services when the estimated cost is over $100,000. The solicitation will be publicly posted on the DGS/DPS eVA website (www.eva.virginia.gov) at least ten days prior to the date set for receipt of bids. This also applies to two-step sealed bidding. Written sealed bids received are held, unopened, until the date and time set in the solicitation, at which time they are publicly opened and the following information is read aloud:

• bidders’ names;

• unit prices, lot prices, or total prices, as applicable;

• discount terms offered, if discount terms are to be considered in making the award; and

• brand names and model numbers if requested by the attendees.

Bids will be evaluated and awarded based upon the requirements set forth in the solicitation.

1. 5 Two-Step Sealed Bidding. Two-step bidding is a method of procurement designed to expand the use and obtain the benefits of competitive sealed bidding where the lack of adequate specifications or rapid changes in the state of the art or technology make it more advantageous to the Commonwealth to first request unpriced technical proposals. . In such instances an IFB is issued requesting the submission of unpriced technical proposals, to be followed by an IFB for a price, limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation. There is no negotiation in the two-step competitive bid process; however, the agency at its option may request information from bidders to clarify material contained in their technical proposals. The process consists of two steps, as follows:

a.Step One: An Invitation for Bids (IFB) is issued requesting the submission of unpriced offers. The solicitation describes the agency’s requirement in general terms and asks for a technical proposal describing how the bidder intends to meet the agency’s requirements and what goods, equipment, and service, as applicable, will be furnished. Specify any mandatory technical data and information to be submitted in the proposal and any optional information desired. The cover sheet should explain the two-step procedure and emphasize that the technical proposal is not to include the bid price. The agency then evaluates and selects those proposals which will meet its needs, based on the mandatory criteria specified in the solicitation. The evaluators may request written or oral discussions from bidders to clarify or amplify the material in the proposal. The contents of the technical proposal are not subject to negotiation and must be evaluated as submitted. They are not ranked but are determined to be acceptable or not acceptable for meeting the agency’s needs. July 2021 version

b. Step Two. An IFB is then prepared and distributed to only those bidders whose offers have been qualified in the first solicitation. The IFB includes a pricing schedule, reference to the request for a technical proposal title and number, and a specific date and time is set for receipt of sealed bids. Sealed bids must be held unopened in a secure area until the date and time established for opening in the solicitation. A public opening is held. Bids are evaluated and the contract is awarded to the lowest responsive and responsible bidder. There is no negotiation in the two-step competitive bid process; however, the Commonwealth at its option may request information from a bidder to clarify material contained in the technical proposal.

Combined Two-Step. The two steps can be combined to require the submission of the technical proposal and price at the same time in separate sealed envelopes. Each envelope must be identified showing “Technical Proposal” or “Bid Price” as appropriate, the bidder's name and address, and the bid reference number. In this procedure, the technical proposals are opened and evaluated as described in 2.5.a, then, only the price envelopes for those technical proposals selected as acceptable are opened. The award is made to the lowest responsive and responsible bidder. The award document will incorporate by reference the terms and conditions of the solicitation and include the contractor’s technical proposal and the bid price. For late sealed bids the envelope shall be date and time stamped, marked “late” and retained unopened in the procurement file.

1. 6 Competitive Negotiation (Applies to sealed solicitations for other than Professional Services).

Competitive negotiation may be used for procurement of goods, services, or insurance (Code of Virginia, § 2.2-4302.2). In competitive negotiation, a written Request For Proposal (RFP) is issued that describes in general terms what is to be procured, the criteria to be used in evaluating the proposal, an indication of whether a numerical scoring system will be used in the evaluation of proposals, the applicable contractual terms and conditions, including any unique capabilities or qualifications required of the contractor. The weights assigned to the evaluation criteria shall also be posted in the location used for public posting of procurement notices prior to the due date and time if the weights were not included in the RFP. A breakout of subcomponent weights need not be listed. If competitive negotiation is used for a purchase expected to be $100,000 or less, it shall be Set-aside in accordance with the Small Business Enhancement Award Priority, unless exempted.

A notice of the RFP will be publicly posted on the DGS/DPS eVA website (www.eva.virginia.gov) at least ten days prior to the due date and time and the notice may be published in a newspaper of general circulation in the area in which the contract is to be performed.

Written sealed proposals received are held, unopened, until the date and time set in the solicitation. Public openings are not required.

Selection shall be made of two or more offerors deemed to be fully qualified and best suited among those submitting proposals, on the basis of the criteria involved in the Request for Proposal, including price if so stated in the Request for Proposal. Negotiations shall then be conducted with each of the offerors so selected. Price shall be considered, but need not be the sole determining factor. After negotiations have been conducted with each offeror so selected, the public body shall select the offeror which, in its opinion, has made the best proposal, and shall award the contract to that offeror. Should the public body determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly July 2021 version

more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror.

1. 7 Deleted

1. 8 Emergency Procurement. In case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances. The writing shall document the basis for this determination. All emergency procurement award notices shall be posted on eVA (Code of Virginia, § 2.2-4303) and at a minimum state that the procurement has been declared an emergency and must also state that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. Public award notices may be posted at locations in addition to posting on eVA, at the discretion of the entity (public posting notice board, entity website, newspaper, etc.) on the day the decision to award is announced or the award is made, whichever occurred first, or as soon thereafter as is practicable.

1. 9 Sole Source Procurement.

a. Upon a determination in writing that there is only one source practicably available for that which is to be procured, a contract may be negotiated and awarded to that source without competitive sealed bidding or competitive negotiation. The writing shall document the basis for this determination. All sole source procurement award notices shall be posted on eVA (Code of Virginia, § 2.2-4303) and at a minimum state that only one source was determined to be practicably available and must also state that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. Public award notices may be posted at other locations in addition to posting on eVA VBO, at the discretion of the entity (public posting notice board, entity website, newspaper, etc.) on the day the decision to award is announced or the award is made, whichever occurred first.

b. Deleted

1. 10 Public Auction Sale.

1. Public Auction Sale: Upon a determination made in advance by a public body and set forth in writing that the purchase of non-technology goods, products or commodities from a public auction sale is in the best interests of the public; such items may be purchased at the auction. The writing shall document the basis for this determination. (Code of Virginia, § 2.2-4303.H).

a. Public auction sale (non-electronic) may be used up to the Agency’s delegated authority.

b. Participation in online public auctions is not permitted.

c. Set-aside for DSBSD-certified small businesses unless exempted.

1. 11 Reverse Auction: The purchase of non-technology goods or nonprofessional services, may be made by utilizing the Reverse Auctioning tool available in eVA. However, construction, professional services, or the bulk purchases of commodities used in road and highway construction in July 2021 version

maintenance, and aggregates shall not be made by reverse auctioning (Code of Virginia, § 2.2-

4303.I.).

a. Agencies are authorized to conduct reverse auctions up to the agency’s delegated authority using Reverse Auctioning tools in eVA.

b. eVA VBO advertising is required over $10,000.

c. Quick Quote Reverse Auctioning:

i. The reverse auction shall be open for the period of time stated but must be open for at least three (3) business days (24 business hours). ii. Procurements up to and including $100,000 shall be Set-aside in accordance with the Small Business Enhancement Award Priority, unless exempted. iii. The closing time may not be extended. iv. The maximum number of line items allowed for reverse auctioning is six (6). A bid is required for each line. $0.00 is an acceptable line item bid and shall not be deemed to constitute a “no bid” but the bidder will be expected to provide that line item at no cost. v. Awards shall only be made on grand total basis. vi. Receipt of Bids – Only eVA registered vendors can participate. Paper responses are not allowed. A bidder must participate electronically.

1. 12 Prequalification. It is sometimes necessary to qualify potential contractors or test products in advance of any procurement to determine if they meet the state's requirements. The criteria for prequalification will be made public to allow potential suppliers or contractors a fair opportunity to qualify for future recurring requirements. The state will be the sole judge of when prequalification of contractors or products is required. A state public body shall deny prequalification to contractors failing to register and participate in E-Verify. Any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program to verify information and work authorization of its newly hired employees performing work pursuant to such public contract. (Code of Virginia, § 2.2-4317) (Code of Virginia, § 2.2-4308.2).

When a service is involved, the capabilities, personal qualifications, equipment, and past performance of potential contractors are examined and evaluated against the established criteria. Those contractors that successfully meet or exceed the criteria are placed on a Qualified Contractors List (QCL) for the type of service involved.

When a Qualified Products List (QPL) is established, interested suppliers are urged to submit their products for qualification. The products are examined and tested for compliance with state requirements.

Products that successfully meet the qualification procedure are placed on a QPL for that product.

Whenever qualified products or services are to be procured only bids or proposals offering products or services that have been prequalified and are listed on a QCL or QPL at the time of the bid or proposal opening can be considered. July 2021 version

The listing of a service or product on a QCL or QPL does not mean endorsement by the state or that the state in any way recommends the service or product offered. Also, the listing of a service or product does not release the contractor or supplier from compliance with contract specifications and requirements for the service or product being purchased. Statutory guidance on prequalification of prospective contractors for construction is contained in Code of Virginia, § 2.2-4317. July 2021 version

CHAPTER 3

GENERAL REQUIREMENTS OF VENDORS

In this Chapter look for . . .

1. 1 Application and Registration
2. 2 Changes in Registration
3. 3 Visits by Vendors
4. 4 Vendor Assistance to State Agencies
5. 5 Personal Interest and Gifts
6. 6 Prohibited Participation
7. 7 Responsible Bidder or Offeror
8. 8 Responsive Bidder
9. 9 Copyright
10. 10 Ownership of Artwork, Negatives and Other Submitted Information, etc.
11. 11 Deleted
12. 12 Prohibited Contracts
13. 13 Subsequent/Additional Bid/Proposal for the Same Procurement
14. 14 Virus-free and Accessible Submittals
15. 15 Authorization to Transact Business in the Commonwealth
16. 16 E-Verify Program

1. 1 Application and Registration. Vendors wishing to register as a regular bidder or offeror to do business with agencies and institutions of the Commonwealth must register in eVA. eVA is the electronic procurement system used by state agencies and institutions. To learn about eVA or register in eVA, vendors may go to www.eva.virginia.gov and click on ”I Sell to Virginia” then “Tools”, “eVA Vendor Training” and “How to Register with eVA.” The direct link is https://eva.virginia.gov/eva-vendor-training.html. A registration fee will not apply, however other fees may be applicable. Vendors registered in eVA for the particular commodity or service will receive an e-mail “push” notification of requirements solicited by state agencies and institutions. In addition, many political subdivisions use eVA as their electronic order and delivery system.

The information submitted on the registration will be used in determining the types of materials, equipment, supplies, or services for which the vendor will receive solicitations. Each purchasing office reserves the right to verify the vendor's capability prior to making an award. It is the responsibility of each vendor to maintain a current and accurate registration account in eVA. Vendors not registered with DGS/DPS who wish to respond to any of the Commonwealth’s solicitations submitting an online electronic bid or proposal using eVA must first register in eVA. Applicants must allow sufficient time for the application to be processed. To be considered for an award, vendors must register in eVA prior to award. A paper registration package can be obtained by calling 1-866-289-7367. All purchase transactions, regardless of funding source, governed by the VPPA shall be processed through eVA to eVA registered vendors unless otherwise excluded in 14.9 b of the APSPM. Any purchases processed outside eVA will continue to be governed by applicable law and by July 2021 version

the non-eVA policies and procedures contained in this manual and the Agency Procurement and Surplus Property Manual (APSPM) in effect at the time of the transaction.

1. 2 Changes in Registration. It is the vendor's responsibility to keep current the registration information.

Any changes in company name or FEIN number can only be made by an authorized eVA customer care representative. Requests should be emailed to evacustomercare@dgs.virginia.gov. All other changes to a vendor’s registration account should be made by an authorized company representative.

1. 3 Visits by Vendors. Visits by vendors or their representatives to purchasing offices are welcomed and encouraged. In order that the staff and vendors may schedule their time productively, an appointment is suggested. Appointments with DPS Statewide Sourcing and Contracting Officers, Lead Statewide Sourcing and Contracting Officers or Deputy Directors of Sourcing and Contracting may be scheduled Monday through Friday on official business days from 9:00 a.m. to 4:00 p.m. (phone 804-786-3842).

Other state agencies establish their own hours.

1. 4 Vendor Assistance to State Agencies. Vendor sales efforts of a consultative or advisory nature are encouraged. They assist agencies in keeping current with the latest state of the art technology and materials and are a valuable source of information. The furnishing of product or service information by a vendor is considered to be normal sales effort and does not entitle the vendor to preferential treatment in the awarding of contracts (see 3.6b). A vendor may offer, without compensation, assistance to agency personnel in developing specifications for a requirement and compete on that requirement. A purchasing office may provide the specifications to competing vendors for comment before issuing the solicitation (see 3.6b).

1. 5 Personal Interest, Donations, and Gifts. No vendor shall offer any gift, gratuity, favor, or advantage to any state employee who exercises official procurement responsibility, develops procurement requirements, or otherwise influences procurement decisions. State employees may attend vendor-sponsored seminars or trade shows where the buying staffs will benefit from receiving product information and learning of new techniques and trends. If an employee’s attendance at such an event is approved by the employee’s agency, food, drinks, and give-away items offered to all participants at such functions are considered to be provided to the agency rather than to the employee and may be accepted by state employees attending.

No state agency shall solicit or accept any donation, gift, grant, or contract without the written approval of the Governor except under written guidelines issued by the Governor which provide for the solicitation and acceptance of nongeneral funds. Monetary or non-monetary sponsorships exceeding nominal value by vendors in support of conferences and other events are considered donations and must comply with the Appropriation Act.

Vendors and employees of the Commonwealth are prohibited from exchanging anything exceeding nominal value at Expo events, which includes distributions by vendors at exhibit booths where the vendors are educating buyers about their products.

Political Contributions Prohibited During Procurement Process.

a. Pursuant to Code of Virginia § 2.2-3104.01, neither the Governor, his political action committee, or the Governor's Secretaries, if the Secretary is responsible to the Governor for an agency with July 2021 version

jurisdiction over the matters at issue, shall knowingly solicit or accept a contribution, gift, or other item with a value greater than $50 from any bidder, offeror, or private entity, or from an officer or director of such bidder, offeror, or private entity, who has submitted a bid or proposal pursuant to the Virginia Public Procurement Act (Code of Virginia § 2.2-4300 et seq.) during the period between the submission of the bid/proposal and the award of the contract.

b. Pursuant to Code of Virginia § 2.2-3104.01, the provisions of this section shall apply only where the stated or expected value of the contract is $5 million or more. The provisions of this section shall not apply to contracts awarded as the result of competitive sealed bidding as defined in Code of Virginia § 2.2-4301.

c. Pursuant to Code of Virginia § 2.2-4376.1, no bidder or offeror who has submitted a bid or proposal to a state agency for the award of a public contract pursuant to the Virginia Public Procurement Act (Code of Virginia § 2.2-4300 et seq.), and no individual who is an officer or director of such a bidder or offeror, shall knowingly provide a contribution, gift, or other item with a value greater than $50 or make an express or implied promise to make such a contribution or gift to the Governor, his political action committee, or the Governor's Secretaries, if the Secretary is responsible to the Governor for an agency with jurisdiction over the matters at issue, during the period between the submission of the bid and the award of the public contract pursuant to the Virginia Public Procurement Act (Code of Virginia § 2.2-4300 et seq.) The provisions of this section shall apply only for public contracts where the stated or expected value of the contract is $5 million or more. The provisions of this section shall not apply to contracts awarded as the result of competitive sealed bidding.

d. Pursuant to Code of Virginia § 2.2-3104.01 and § 2.2-4376.1 respectively, any person who violates the aforementioned code sections shall be subject to a civil penalty of $500 or up to two times the amount of the contribution or gift, whichever is greater. The attorney for the Commonwealth shall initiate civil proceedings to enforce the civil penalties. Any civil penalties collected shall be payable to the State Treasurer for deposit to the general fund.

e. Agencies shall include the form contained in APSPM Annex 3-J, “Certification of Compliance with Prohibition of Political Contributions and Gifts During the Procurement Process” in solicitations/contracts where the stated or expected value of the contract is $5 million or more except those awarded as the result of competitive sealed bidding.

1. 6 Prohibited Transactions.

a. From Architect or Engineer.

(1) No building materials, supplies, or equipment for any building or structure constructed by or for a public body shall be sold by or purchased from any person employed as an independent contractor by the public to furnish architectural or engineering services, but not construction, for such building or structure; or from any partnership, association, or corporation in which such architect or engineer has a personal interest as defined in Code of Virginia, § 2.2-3101 and § 2.2-4374A. July 2021 version

(2) No building materials, supplies, or equipment for any building or structure constructed by or for a public body shall be sold by or purchased from any person which has provided or is currently providing design services specifying a sole source for such materials, supplies, or equipment to be used in such building or structure to the independent contractor employed by the public body to furnish architectural or engineering services in which such person has a personal interest as defined in Code of Virginia, § 2.2-3101 and § 2.2-4374B.

(3) The provisions of (1) and (2) above shall not apply in cases of emergency or for transportation-related projects conducted by the Department of Transportation.

(4) These provisions do not apply to persons supplying architectural or engineering services under design/build contracts (Code of Virginia, § 2.2-4306).

b. Other Contractors. An independent contractor employed or otherwise paid by a state agency to design a project, develop a scope of work, write specifications, or otherwise define contract requirements is not eligible to compete for or receive the resulting contract, except in cases of emergency, when only one source is practicably available for both the defining of contract requirements and the performance of those requirements or when the public body determines in writing that the exclusion of such vendor would limit the number of potential qualified bidders or offerors in a manner contrary to the best interests of the public body. In addition the contractor may not be a subcontractor or supplier for the entity which is awarded the contract or any of that entity’s subcontractors, however far removed. A vendor may offer, without consideration, assistance to agency personnel in developing specifications for a requirement and compete on that requirement; however, it is incumbent upon the agency buying staff to assure vendor provided specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor (Code of Virginia, § 2.2-4373).

c. Goods and Services. Subsequent/Additional Bid/Proposal for the Same Procurement. Submission of a subsequent bid/proposal, unless specifically identified as an amendment to a previously submitted bid/proposal, shall constitute an additional bid/proposal submitted by the same bidder or offeror on the same IFB/RFP. For information on amending or withdrawing bids/proposals, see Section 5.11.

The latest date/time stamped bid/proposal will be the only accepted bid/proposal for the solicitation.

d. All agencies, and institutions of higher education shall follow the requirements of Executive Order Seventy-Seven (2021), Virginia Leading by Example to Reduce Plastic Pollution and Solid Waste using the guidance issued by the Department of Environmental Quality (DEQ). The EO is broken into 3 parts: (1) ceasing the usage of specific items identified unless qualifying for an extension or exemption; (2) phasing out other single-use plastic and polystyrene objects over a period of 4 years to objects that are reusable, recyclable or compostable; and (3) reducing waste.

Additionally, agencies shall develop and submit plastic pollution reduction plans to DEQ. For specific information, visit the DEQ website https://www.deq.virginia.gov/get-involved/pollution-prevention/greening-the-government/waste-reduction. July 2021 version

1. 7 Responsible Bidder or Offeror. In determining a responsible bidder or offeror, a number of factors including, but not limited to, the following are considered. The vendor should:

a. be a regular dealer, supplier and/or an authorized dealer of the goods or services offered;

b. have the ability to comply with the required delivery or performance schedule, taking into consideration other business commitments;

c. have a satisfactory record of performance, however, conduct described in 7.20 (Causes for Debarment) ordinarily indicates nonresponsiblity. In considering the continued relevance of past conduct, the passage of time (or expiration of a related debarment) by itself should not be relied upon in most cases, but evidence of appropriate remedial actions of proven effectiveness taken subsequent to the conduct should be considered;

d. have a satisfactory record of integrity; and,

e. have the necessary facilities, organization, experience, technical skills, and financial resources to fulfill the terms of the purchase order or contract (See 9.5).

1. 8 Responsive Bidder. A responsive bidder means a person who has submitted a bid which conforms in all material respects to the Invitation for Bids. Examples of nonresponsiveness include, but are not limited to, failure to sign a bid, failure to return the required bid documents, substitution of terms, deletion of terms and conditions stated in the Invitation for Bids, and failure to offer a product or service that meets the requirements of the Invitation for Bids. A bidder who fails to provide prices for all categories of labor in the pricing schedule of a time and materials service contract is considered non-responsive. This is true whether the price was left blank or the bidder entered a figure of $0. Bidders who provide multiple prices for goods and services where a single price was solicited are also non-responsive.

1. 9 Copyright. No vendor may copyright any work contracted for by the Commonwealth and produced for the Commonwealth without the prior written consent of the agency or DPS.

1. 10 Ownership of Artwork, Negatives, and Other Submitted Information

a. All artwork, negatives, dies, overlays, or similar materials used to print a job shall be the property of the Commonwealth and must be returned to the requisitioning agency upon completion.

b. Ownership of all data, materials, and documentation originated and prepared for the state pursuant to a solicitation shall belong exclusively to the state and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Information on protecting trade secrets or proprietary information is found in 1.9.

1. 11 Deleted

1. 12 Prohibited Contracts. a. No state agency except for institutions of higher education as defined by §2.2-4321.1 H. shall contract for goods or services with a nongovernmental source if the source, or any affiliate of the source, is July 2021 version

subject to the provisions of (i)§ 58.1-612 and fails or refuses to collect and remit the tax on its sales delivered by any means to locations within the Commonwealth or (ii) Article 2 (§ 58.1-320 et seq.) or Article 10 (§58.1-400 et seq.) of Chapter 3 of Title 58.1 and fails or refuses to remit income tax due thereunder. The provisions of clause (ii) shall not apply to any person that has (a) entered into a payment agreement with the Department of Taxation to pay the tax and is not delinquent under the terms of the agreement or (b) appealed the assessment of the tax in accordance with law and such appeal is pending.

b. A state agency may contract for goods or services with a source prohibited under subsection A in the event of an emergency or where the nongovernmental source is the sole source of such goods or services.

c. The determination of whether a source is a prohibited source shall be made by the Department of Taxation after providing the prohibited source with notice and an opportunity to respond to the proposed determination. The Department of Taxation shall notify the Department of General Services of its determination.

d. The Department of General Services shall post public notice of all prohibited sources on its public internet procurement website and on other appropriate websites.

e. The remedies provided in Article 5 (§ 2.2-4357 et seq.) shall not apply to any determination made pursuant to this section and the sole remedy for any adverse determination shall be as provided in subsection F.

f. Any source aggrieved by a determination of the Department of Taxation made under this section may apply to the Tax Commissioner for correction of the determination. The Tax Commissioner shall respond within 30 days of receipt of the application for corrective action. Within 10 days after receipt of the Tax Commissioner's response, the aggrieved source may appeal to the Circuit Court for the City of Richmond. If it is determined that the determination of the Department of Taxation was arbitrary, capricious, or not in accordance with law, the sole relief shall be restoration of the source's eligibility to contract with state agencies. No claim for damages or attorney's fees shall be awarded.

g. Subsequent/Additional Bid/Proposal for Same Procurement. Submission of a subsequent bid/proposal, unless specifically identified as an amendment to a previously submitted bid/proposal, shall constitute an additional bid/proposal submitted by the same bidder or offeror on the same solicitation. (See 5.11 through 5.15 for information on amending or withdrawing bids and Code of Virginia, § 2.2-4330 C. for Withdrawal of bid due to error.) The latest date/time stamped bid/proposal will be the only accepted bid/proposal for the solicitation

1. 13 Deleted

1. 14 Virus-free and Accessible Submittals. It is the responsibility of the vendor to ensure that any electronic submission transmitted to an agency or institution is virus-free and in a format (e.g. Microsoft Word or Excel, Adobe Acrobat, etc.) that is accessible by that agency or institution. Documents not accessible by the purchasing agency may be cause to determine the bid nonresponsive. July 2021 version

1. 15 Authorization to Transact Business in the Commonwealth.

a. In accordance with the Code of Virginia § 2.2-4311.2, every written contract shall include a provision that a contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 or as otherwise required by law.

b. The Code of Virginia § 2.2-4311.2 subsection B requires that “Pursuant to competitive sealed bidding or competitive negotiation, all public bodies shall include in the solicitation a provision that requires a bidder or offeror organized or authorized to transact business in the Commonwealth pursuant to Title 13.1 or Title 50 to include in its bid or proposal the identification number issued to it by the State Corporation Commission. Any bidder or offeror that is not required to be authorized to transact business in the Commonwealth as a foreign business entity under Title 13.1 or Title 50 or as otherwise required by law shall include in its bid or proposal a statement describing why the bidder or offeror is not required to be so authorized.”

c. Should a bidder/offeror omit including the SCC number or a statement describing why the bidder/offeror is not required to be so authorized on its bid/proposal, the agency, at its sole option, may allow the bidder/offeror additional time to provide the SCC Identification Number or a statement describing why the bidder/offeror is not required to be so authorized and continue the evaluation. An agency shall not award a contract to a bidder/offeror that fails to comply with § 2.2-4311.2 unless a waiver is granted by the Director of the Department of General Services or his designee.

d. For purposes of compliance with this section, agencies may rely on the accuracy of the bidder’s/offeror’s statement provided on the SCC Form describing why the bidder/offeror is not required to be so authorized per exclusions listed in Title 13.1 or Title 50 and are not required to validate. Any falsification or misrepresentation contained in the statement submitted by the bidder/offeror pursuant to Title 13.1 or Title 50 may be cause for debarment.

e. Any bidder or offeror described in Code of Virginia § 2.2-4311.2 subsection B that fails to provide the required information shall not receive an award unless a waiver is granted by the Director of the Department of General Services or his designee in accordance with Code of Virginia § 2.2-4311.2.

1. 16 E-VERIFY PROGRAM: Pursuant to Code of Virginia, §2.2-4308.2, any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program to verify information and work authorization of its newly hired employees performing work pursuant to such public contract. Any such employer who fails to comply with these provisions shall be debarred from contracting with any agency of the Commonwealth for a period up to one year. Such debarment shall cease upon the employer’s registration and participation in the E-Verify program. If requested, the employer shall present a copy of their Maintain Company page from E-Verify to prove that they are enrolled in E-Verify. July 2021 version

CHAPTER 4

SOLICITATIONS

In this Chapter look for . . .

1. 1 Selection of Bidders/Offerors
2. 2 Response Time
3. 3 Prebid or Preproposal Conference
4. 4 Receipt of Sealed Bids or Proposals
5. 5 Receipt of Unsealed Proposals
6. 6 Canceling or Amending a Solicitation
7. 7 Combining Responses to Separate Solicitations is Prohibited
8. 8 Postage
9. 9 Facsimile Bids or Proposals
10. 10 Late Bids or Proposals
11. 11 Bonds
12. 12 Insurance
13. 13 Specifications, Questions, and Comments
14. 14 Brand Names
15. 15 Contractor Registration (License)
16. 16 Notice of Pending Procurements

1. 1 Selection of Bidders/Offerors. All qualified vendors have access to state business. Vendors registered in eVA for the particular commodity or service will automatically receive an e-mail notification of the solicitation. Selection of additional vendors will be at the discretion of the state agency or institution. All Invitations for Bids, Requests for Proposals, sole source award notices, emergency award notices, and conceptual proposals received under a PPEA or PPTA shall be posted on the DGS central electronic procurement system, commonly known as eVA VBO. (Code of Virginia, § 2.2-1110). Addenda are also required to be posted. Any vendor not solicited may request a copy of the solicitation. When a Qualified Products List (QPL) or Qualified Contractors' List (QCL) has been established only those vendors whose products or services have been approved prior to bid or proposal opening will be considered for award.

On occasion, a competitive procurement may be restricted to manufacturers. When this is done, it will be explicitly stated in the solicitation that only bids or proposals bidding or offering that manufacturer’s product will be considered.

1. 2 Response Time. Normally, the time set for return of sealed bids is fourteen (14) to seventeen (17) calendar days after publication of the IFB. The minimum time for receipt of a sealed bid or proposal will not be less than ten calendar days from the date issued. In addition, mandatory conferences or site visits will not be scheduled less than ten calendar days from the date the solicitation is issued and public notice requirements are completed. Vendors should check each solicitation to ascertain its due date. July 2021 version

1. 3 Prebid or Preproposal Conference. On complex, critical or high value procurements, a solicitation may contain a requirement to attend a prebid or preproposal conference. Attendance at conferences or site visits may be either optional or mandatory. The issuing agency may permit attendance through teleconferencing or videoconferencing. When mandatory attendance is stipulated in the solicitation, evidence of those in attendance must be maintained by the agency and only bids or proposals from those firms represented at the conference or visiting the site will be accepted. Vendors are cautioned that agencies are authorized to establish a cutoff time for late arrivals, after which no one will be permitted access to the conference.

Conferences scheduled during a period of suspended state business operations will be rescheduled by the purchasing agency to a date and time which will permit proper notification to all potentially interested participants.

1. 4 Receipt of Sealed Bids or Proposals.

a. General. The solicitation will state that written sealed bids or proposals are to be received by the issuing purchase office prior to the date and hour specified in the solicitation. Bid or proposal receipt deadlines and public openings scheduled during a period of suspended state business operations will be deemed rescheduled for processing at the appropriate times on the next regular business day. A special envelope or label may be furnished with the solicitation. It is imperative that the bid or offer be returned in this envelope. If return in the special envelope is not possible, the signed bid or proposal should be returned in a separate envelope or package, sealed and identified as follows:

From:

_____________________ ___________ _________ Name of Bidder/Offeror Due Date Time

_______________________ ________________________ Street or Box Number IFB or RFP No.

_______________________ ________________________ City, State, Zip Code IFB or RFP Title

Name of Contract/Purchase Officer/Buyer:

___________________________________________________

The envelope should be addressed as directed in the solicitation.

If the special envelope or label is not used and a bid or proposal is mailed, the bidder or offeror takes the risk that the envelope, even if marked as described above, may be inadvertently opened and the information compromised which may cause the bid or proposal to be disqualified. Bids or proposals may be hand delivered to the designated location in the office issuing the solicitation. No other correspondence or other bids or proposals should be placed in the envelope.

Bidders should be careful when electing to use private courier services to deliver their bids or proposals to the contracting agencies. Many agencies have different addresses for hand delivery July 2021 version

versus the point of delivery established for postal delivery. It is solely the responsibility of the bidders/offerors to ensure that bids or proposals reach the designated address by the specified date and time shown on the solicitation.

b. Receipt of Bids for Highway and Construction Maintenance Programs. In procurement solicitations by the Department of Transportation by competitive sealed bidding for highway construction and maintenance contracts, the Department may accept bids in response to an Invitation to Bid at the Department’s central office or at district offices or other satellite locations designated in the Invitation to Bid, in accordance with specifications adopted by the Department. An Invitation to Bid may authorize agents of the Department to accept from bidders, on a voluntary basis, a supplemental submission referencing the total bid amount on a form prescribed by the Department.

Information contained in any supplemental submission may be made available to the public by the Department after the time for receiving bids has expired and before the public opening and announcement of all sealed bids (Code of Virginia, § 2.2-4322).

1. 5 Receipt of Unsealed Proposals. The RFP for written unsealed proposals will state that they must be received by a date and time specified. Proposal receipt deadlines scheduled during a period of suspended state business operations will be deemed rescheduled for the appropriate times on the next regular business day. Special envelopes generally are not furnished. These proposals may also be hand delivered to the office issuing the solicitation. Unsealed proposal solicitations and responses may be electronic. Unsealed responses shall be received until the time and date specified in the solicitation.

1. 6 Canceling or Amending a Solicitation. An Invitation to Bid, a Request for Proposal, any other solicitation, or any and all bids or proposals, may be canceled or rejected. The reasons for cancellation or rejection will be made part of the contract file. A public body will not cancel or reject an Invitation to Bid, a Request for Proposal, any other solicitation, bid or proposal pursuant to this section solely to avoid awarding a contract to a particular responsive and responsible bidder or offeror (Code of Virginia, § 2.2-4319).

Amendments may be made by the issuance of an addendum prior to the time set for receipt of responses.

When an addendum for a sealed solicitation is issued, there must be a minimum of 10 days from the date of the addendum to the due date set for the receipt of bids, or the due date shall be extended.

Acknowledgment of receipt of an addendum must be returned prior to the time set for receipt of bids or proposals, or accompany the bid or proposal. Failure to acknowledge receipt of an addendum may be cause for rejection of the bid or proposal.

1. 7 Combining Responses to Separate Solicitations is Prohibited. A vendor shall not combine responses to separate IFBs or RFPs into one bid or proposal.

1. 8 Postage. All bids or proposals should be weighed and the postage verified before mailing. The U.S.

Postal Service does not deliver unstamped mail. Postage due mail may be delivered, but the state will not assume the responsibility for paying the amount due and may return or refuse the mail.

1. 9 Facsimile or Electronic Bids or Proposals. Bids or proposals sent via facsimile or electronically, must meet the requirements for unsealed or sealed responses described below. The timing device used to July 2021 version

document the receipt of bids or proposals will be designated by the purchasing agency. The time printed on the top of the facsimile copy will not govern the time of receipt.

a. Unsealed Proposals. Facsimile or electronic proposals must be completely received in the office that issued the solicitation prior to the time and date designated for submission. The original copy of the facsimile or electronic transmission may be requested. If requested it must be received within five (5) working days.

b. Sealed Bids/Sealed Proposals. Facsimile bids or proposals will be accepted from a third party or an agent of the bidder or offeror for sealed programs provided that the bids or proposals are submitted in sealed envelopes to the purchasing agency. The bidder/offeror is responsible for arranging the third party involvement in sealed bid/proposal programs and for faxing the complete bid/proposal to the third party, not just a summary or the cover sheet. The original bid or proposal and addenda may be requested and, if requested, must be received within five (5) business days. See 5.3 for signature requirements.

1. 10 Late Bids or Proposals. To be considered, all bids or proposals must be received at the specific office location stipulated by the procuring activity on or before the date and hour designated on the solicitation.

Vendors should pay particular attention to ensure that the bid or proposal is properly addressed. The state is not responsible if the bid or proposal does not reach the specific destination by the appointed time. Bids or proposals received after the date and hour designated are automatically excluded from further consideration. For late sealed bids or proposals the envelope shall be date and time stamped, marked “late” and retained unopened in the procurement file. The official time used in the receipt of responses is that time on the clock or automatic time stamp machine in the procuring activity.

1. 11 Bonds.

a. Bid Bonds. Except in cases of emergency, all bids or proposals for nontransportation-related construction contracts in excess of $500,000 or transportation-related projects authorized under § 33.1-12 that are in excess of $250,000 and partially or wholly funded by the Commonwealth shall be accompanied by a bid bond from a surety company selected by the bidder that is legally authorized to do business in Virginia, as a guarantee that if the contract is awarded to such bidder, that bidder will enter into the contract for the work specified in the bid. The amount of the bid bond shall not exceed five percent of the amount bid (Code of Virginia, § 2.2-4336).

(1) No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for which the bond was written and the next low bid, or (ii) the face amount of the bid bond.

(2) Nothing in this section shall preclude the state from requiring bid bonds to accompany bids or proposals for construction contracts anticipated to be less than $500,000 for non transportation-related projects or $250,000 for transportation-related projects authorized under § 33.1-12 and partially or wholly funded by the Commonwealth. July 2021 version

(3) For nontransportation-related construction contracts in excess of $100,000 but less than $500,000, where bond requirements are waived, prospective contractors must be prequalified for each individual project in accordance with Code of Virginia, § 2.2-4317.

b. Performance and Payment Bonds.

(1) Unless otherwise authorized in this section, upon the award of any (i) public construction contract exceeding $500,000 awarded to any prime contractor, (ii) construction contracts exceeding $500,000 awarded to any prime contractor requiring the performance of labor or the furnishing of materials for buildings, structures or other improvements to real property owned by a public body; or (iii) transportation-related projects exceeding $350,000 that are partially or wholly funded by the Commonwealth, the contractor shall furnish to the public body the following bonds (Code of Virginia, § 2.2-4337):

(a) A performance bond in the sum of the contract amount conditioned upon the faithful performance of the contract in strict conformity with the plans, specifications, and conditions of the contract. For transportation-related projects authorized under § 33.1-12, such bond shall be in a form and amount satisfactory to the public body.

(b) A payment bond in the sum of the contract amount. The bond shall be for the protection of claimants who have and fulfill contracts to supply labor or materials to the prime contractor to whom the contract was awarded, or to any subcontractors, in the furtherance of the work.

For transportation-related projects authorized under § 33.1-12 and partially or wholly funded by the Commonwealth, such bond shall be in a form and amount satisfactory to the public body. “Labor or materials” shall include public utility services and reasonable rentals of equipment, but only for periods when the equipment rented is actually used at the site.

(2) Each of the bonds shall be executed by one or more surety companies selected by the contractor that are authorized to do business in Virginia and filed with the purchasing office that awarded the contract or a designated official thereof within 10 days after receipt of the purchase order or notice of award. See 3.3f on bond documentation review and Annex 3-E for guidance on processing and verifying the bonds validity.

(3) Nothing in this section shall preclude the state from requiring payment or performance bonds for construction contracts up to $500,000 for non transportation-related projects or $350,000 for transportation-related projects authorized under Code of Virginia, § 33.1-12 and partially or wholly funded by the Commonwealth.

(4) Nothing in this section shall preclude the contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts which are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract (Code of Virginia, § 2.2-4337). July 2021 version

(5) For nontransportation-related construction contracts in excess of $100,000 up to $500,000, where bond requirements are waived, prospective contractors must be prequalified for each individual project in accordance with Code of Virginia, § 2.2-4317.

(6) The performance and payment bond requirements for transportation-related projects that are valued in excess of $250,000 but less than $350,000 may only be waived by a public body if the bidder provides evidence, satisfactory to the public body, that a surety company has declined an application from the contractor for a performance or payment bond (Code of Virginia, § 2.2-4337).

c. Bonds on Construction Contracts. Upon award of a non-transportation-related construction contract exceeding $500,000, the contractor shall furnish a Performance Bond and a Payment Bond, each in the sum of the contract. (Code of Virginia, § 2.2-4337). Each bond shall be executed by one or more surety companies that are legally authorized to do business in Virginia. Form CO-10 Commonwealth of Virginia Standard Performance Bond, Form #DGS-30-084, and Form CO-10.1 Commonwealth of Virginia Standard Labor and Material Payment Bond, Form #DGS-30-088, shall be used. (Forms may be downloaded from the DGS/Division of Engineering & Buildings website, http://deb.dgs.virginia.gov).

1. 12 Insurance. Whenever work is to be performed on state-owned or leased property or facilities, the contractor shall be required to have Workers’ Compensation, Employer’s Liability, Commercial General Liability and Automobile Liability, and in certain types of programs Professional Liability/Errors and Omissions insurance coverage. The Commonwealth of Virginia shall be added as an additional insured to the policy by an endorsement when requiring a Contractor to obtain Commercial General Liability coverage. In some cases, Workers’ Compensation Insurance and Employer’s Liability Insurance may not be required. Workers’ Compensation insurance is required when the contractor has three (3) or more employees. If work is performed by a sole proprietor, the person does not need Workers’ Compensation insurance, as they do not have employees. Employer’s Liability is required if an employer has employees who are paid a wage or salary. Employer’s Liability is not required for persons in business together, e.g., husband and wife, siblings or parents and children, as these persons would be considered owners not employees. For construction contracts, if any subcontractors are involved, subcontractors shall also be required to have workers’ compensation insurance in accordance with Code of Virginia, § 2.2-4332 and 65.2-800 et seq. Stipulated insurance must be obtained prior to commencing work and be maintained during the entire term of the contract. At a minimum, the contractor must certify to the agency that they possess the appropriate insurance coverage. The agency must verify and document the contractor’s insurance coverage and include it in the procurement file. The procuring office may require a certificate of insurance to be furnished prior to commencement of work and at any time during contract performance.

1. 13 Specifications, Questions, and Comments. It is the intent of the purchasing office to use specifications that encourage competition. Vendors are requested to inform the responsible purchasing office whenever they have comments or questions concerning specifications or solicitation requirements (Code of Virginia, § 2.2-4316). Suggestions concerning new products or improvements to specifications are encouraged and will be considered. This information should be provided to the issuing purchase office as early as possible but at least five (5) working days prior to bid or proposal due date to provide time to amend or cancel the solicitation before the scheduled receipt date. July 2021 version

1. 14 Brand Names. When it is determined to be impractical to develop a generic specification, a brand name may be used to convey the general style, type, character and quality of the article desired. Unless otherwise provided in the solicitation, the name of a certain brand, make, or manufacturer does not restrict bidders or offerors to the specific brand, make, or manufacturer named. Any article which the public body, in its sole discretion, determines to be the equivalent of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended shall be accepted (Code of Virginia, § 2.2-4315). The bidder or offeror is responsible to clearly and specifically indicate the product being offered and to provide sufficient descriptive literature, catalog cuts and technical detail to enable the Commonwealth to determine if the product offered meets the requirements of the solicitation. This is required, even if offering the exact brand, make, or manufacturer specified. Normally, in competitive sealed bidding, only the information furnished with the bid will be considered in the evaluation. Failure to furnish adequate data for evaluation purposes may result in declaring a bid nonresponsive. Unless the bidder or offeror clearly indicates in its bid/proposal that the product offered is an “equivalent” product, such bid/proposal will be considered to offer the brand name product referenced in the solicitation.

1. 15 Contractor Registration (License). State statutes and regulatory agencies require that some contractors be properly registered and licensed, or hold a permit, prior to performing specific types of services. It is the contractor's responsibility to comply with the rules and regulations issued by state regulatory agencies.

An unlicensed vendor submitting a bid or proposal where such license is required is in violation of state law and the bid or proposal will be rejected. A vendor bidding on construction, demolition, repair, or improvements to facilities must be a registered contractor with the Department of Professional and Occupational Regulation in accordance with Code of Virginia, Title 54.1, Chapter 11, as follows:

If a procurement of $1,000 or more involves construction, removal, repair, or improvement of any building or structure permanently annexed to real property or any other improvement to such real property, the contractor must possess one of the following licenses issued by the State Board for Contractors for the type of work involved prior to submitting a bid or proposal (Code of Virginia, §§ 54.1-1103 and 54.1-1115):

• Contractor License A - If the contract is $120,000 or more or if the contractor does $750,000 or more business within a 12-month period.

• Contractor License B - $10,000 or more, but less than $120,000 or if the contractor does $150,000 or more, but less than $750,000 in business within a 12-month period.

• Contractor License C - Over $1,000, but less than $10,000 or if the contractor does less than $150,000 in business within a 12-month period. NOTE: The Board shall require a master tradesmen license as a condition of licensure for electrical, plumbing and heating, ventilation and air conditioning contractors.

Work undertaken by a person providing construction, remodeling, repair, improvement, removal, or demolition valued at $2,500 or less per project on behalf of a properly licensed contractor, provided that such contractor holds a valid license in the residential or commercial building contractor classification shall be exempt for licensure. However, any construction services that require an July 2021 version

individual license or certification shall be rendered only by an individual licensed or certified in accordance with Chapter 11 of Title 54.1 of the Code of Virginia.

Further, any contractor that directly employs or otherwise contracts with a person who is not credentialed by the State Board for Contractors for work requiring a credential under Chapter 11 of Title 54.1 of the Code of Virginia, shall be solely responsible for any monetary penalty or other sanction resulting from the act of employing or contracting with a person who lacks the proper credential based upon such person’s failure to obtain or maintain the required credential.

In addition, all nonresident contractors and subcontractors submitting bids on the above work who are not registered with the Department of Professional and Occupational Regulation shall register with the Department of Labor and Industry under the provisions of Code of Virginia, § 40.1-30.

Private Security Services. All solicitations for the installation, service, maintenance, or design of security equipment, security officer service, central station alarm condition monitoring service, and/or private investigator service require that the successful bidder, offeror or approved subcontractor have a Private Security Services Business License issued by the Department of Criminal Justice Services (see Code of Virginia, § 9.1-139). This applies regardless of the dollar value of the resulting contract.

Assistance may be obtained from the Department of Criminal Justice Services at 804-786-0460.

1. 16 Notice of Pending Procurements. DGS/DPS publishes the Virginia Business Opportunities (VBO) on the Internet (www.eva.virginia.gov) to post all IFBs, RFPs, addenda, and notices of award with state and some local government agencies. The intent of this policy is to broaden vendor participation and help Virginia companies, particularly micro, small, women, minority, and service disabled veteran-owned businesses, to know what bidding opportunities are available in state government. It also carries out the provision of § 2.2-4300C of the Code of Virginia, “that all qualified vendors have access to state business and no offeror be arbitrarily or capriciously excluded.” Agencies are authorized to waive publication of procurements from mandatory sources and purchases of items exempted by law from competitive procurement. The publication lists pertinent information such as the type of purchase, required location, response date, and point of contact. Public notice of pending procurements may also be published on other appropriate websites or posted at the agency. July 2021 version

CHAPTER 5

SOLICITATION RESPONSES

In this Chapter look for . . .

1. 1 Solicitation Forms
2. 2 Vendor Name and Address
3. 3 Signature on Bid or Proposal
4. 4 Terms and Conditions
5. 5 Pricing and Discounts
6. 6 Samples
7. 7 Alternate Bids
8. 8 Taxes
9. 9 Time of Performance
10. 10 Questions Concerning Solicitations
11. 11 Amending or Withdrawing Bids or Proposals by Vendors
12. 12 Alterations to Bids or Proposals
13. 13 Mistakes in Bids
14. 14 Withdrawal of Bids
15. 15 Denial of Withdrawal of Bid

1. 1 Solicitation Forms. All vendors receiving an Invitation for Bid (IFB) or Request for Proposal (RFP) are expected to return the bid or proposal response in paper form or via electronic submission to the purchasing office that issued the solicitation. If the vendor does not wish to submit a bid or proposal, a “No Bid” or a similar statement should be returned to the issuing office.

1. 2 Vendor Name and Address. Purchase orders or contracts will be issued only to the firm’s name appearing on the bid or proposal form. If orders or payments are to be mailed to an address or addresses other than that shown on the face of the form, the bidder or offeror must so indicate and list the post office box, or street name and number, city, state, and zip code for the addressee as an update to their Vendor Master Profile to reflect this information It is the Vendor’s responsibility to ensure all Vendor Master Profile information is accurate and current.

1. 3 Signature on Bid or Proposal. Facsimile bids or proposals on sealed programs will be accepted from a third party or an agent of the bidder or offeror provided that the bids or offerors are submitted in sealed envelopes (see 4.9). For sealed bid or sealed proposal programs, the bid or proposal, and all addenda returned by the bidder or offeror by facsimile must be signed. The original bid or proposal must be signed in ink or submitted electronically through eVA (Code of Virginia, § 1-257 and § 59.1-485). The person signing the bid or proposal must be a person authorized by the bidder or offeror to sign bids or proposals.

The person signing must include his or her title, and if requested, must verify his or her authority to bind his or her company in contract. Failure to sign the face of the bid/proposal in the space provided will result July 2021 version

in rejection of the bid/proposal except if the unsigned bid/proposal is accompanied by other signed documents indicating the bidder's/offeror's intent to be bound [see 5.13c(1)(b)].

1. 4 Terms and Conditions. Terms and Conditions and Instructions to Vendors incorporated by reference in the eVA purchase order are shown in Appendix B, Section I. Solicitations contain general terms and conditions which incorporate the procedures and provisions of this manual as well as all applicable statutory provisions such as the Virginia Fair Employment Contracting Act (Code of Virginia, §§ 2.2-4200 through 2.2-4201). The General Terms and Conditions that are typically used in agency contracts are found in Appendix B, Section II. These provisions apply to all written solicitations issued by state agencies for procurements that are subject to the DGS/DPS Agency Procurement and Surplus Property Manual (APSPM) unless changed, deleted, or revised by the legal advisor to the agency or institution.

Special conditions may change or rescind the procedures and provisions of this manual, and the solicitation should be read with care prior to submission of a bid or proposal. A bidder or offeror is not permitted to challenge the validity of the terms or conditions of the Invitation for Bids or Request for Proposal (Code of Virginia, § 2.2-4360). Modification of, or additions to, the General Terms and Conditions of an IFB or RFP may be cause for rejection of the bid or proposal. No modification of or addition to any provisions of a contract shall be effective unless reduced to writing and signed by the parties to the contract.

1. 5 Pricing and Discounts. Solicitations normally request net price FOB destination. The net price is the list price less trade or volume discounts offered. Unit prices, extensions, and/or gross total must be shown as requested in the pricing schedule. Prompt payment discounts offered must be clearly shown in the space provided and will be taken if payment is made within the specified time frame, e.g., 2% 20 days.

Such discounts will not be a factor in award unless specified in the solicitation. Correct pricing is extremely important, and price should be double checked before submitting a bid or proposal. In the case of errors in the extension of prices, the unit price shall govern.

1. 6 Samples. Samples of materials or equipment for testing, evaluation, or demonstration purposes, when requested in a solicitation must be furnished at no cost. Each individual sample must be labeled with the bidder's or offeror's name, manufacturer's brand name and number, requisition number or contract program, and item referenced. Samples submitted by the successful bidder or offeror may be held for comparison with goods received. All samples submitted may be subjected to tests and evaluation by either a qualified laboratory or test panel, and the results will be a factor in making the award. Samples not destroyed in testing will be returned, if requested, to the bidder or offeror at his or her expense. Requests for return of samples will be honored upon the completion of testing and evaluation. Samples will be disposed of if not claimed within 60 days after pick-up notification has been given.

1. 7 Alternate Bids. An alternate bid is a bid submitted in knowing variance from the specifications and must be clearly distinguished as an alternate by the bidder. Frequently, alternate bids incorporate the latest in technology and can result in substantial savings, not only in monetary terms but also in system-wide operational efficiencies. Vendors should contact buying offices with suggested revisions to specifications as soon as possible in the procurement process. An award cannot be made on an alternate bid; however, all bids may be rejected and the requirement resolicited with a revised specification using the features of the alternate. July 2021 version

1. 8 Taxes.

a. Excise. The Commonwealth of Virginia generally is exempt from paying federal excise taxes, except it must pay excise taxes for air transportation, the cost of which is generally defined as any amount paid within the United States for transportation of any person by air. Certain vaccines require that an excise tax be paid by the purchasing activity.

b. State Sales. The Commonwealth of Virginia is generally exempt from paying Virginia's sales taxes on purchases of tangible personal property for its use or consumption. Sales tax, however, is paid by the Commonwealth on materials and supplies that are installed and become a part of real property, e.g., glued-down carpet. Contractors are not exempt from paying taxes on these categories, as they are considered to be a cost of doing business and should be considered in pricing when preparing a bid on a state contract. (Virginia Retail Sales and Use Tax Regulations, §§ 630-10-27 and 630-10-45. Also see §§ 58.1-603 and 58.1-604). If further interpretive assistance is required, contact the Department of Taxation, Office of Customer Services, 804-367-8037.

c. Sales and Use Tax - State Government and Political Subdivisions. Virginia's Sales and Use tax does not apply to sales of tangible personal property to the Commonwealth of Virginia or to its political subdivisions, for their use or consumption, if the purchases are pursuant to required official purchase orders to be paid for out of public funds. The tax applies when such sales are made without the required purchase orders and are not paid for out of public funds. No exemption is provided for state or local government employee purchases of meals or lodging whether purchases are pursuant to required official purchase orders or not.

d. Sales and use Tax - Contractors. Persons who contract with the Commonwealth or its political subdivisions to perform a service, and in conjunction therewith, furnish some tangible personal property, are deemed to be the consumers of all such property and are not entitled to exemption on the grounds that a governmental entity is a party to the contract. This is true even though title to the property provided may pass to the government and/or the contractor may be fully and directly reimbursed by the government. This same principle applies to persons who enter into contracts with a governmental entity to perform real property construction or repair.

1. 9 Time of Performance. A specific date or number of calendar days required for delivery or performance after receipt of order may be stated in the terms and conditions of a solicitation. Otherwise, the date or number of days must be entered by the bidder in the space provided on the solicitation form (see 7.7).

1. 10 Questions Concerning Solicitations. Questions concerning a solicitation should be directed to the person and phone number listed on the document. Always refer to the identification number and the opening date on the IFB or RFP. Bid tabulations are a matter of public record and are open for inspection to bidders and offerors after evaluations are complete but prior to award (see 1.9).

1. 11 Amending or Withdrawing Bids or Proposals by Vendors. A bid/proposal may be amended and/or withdrawn by a bidder or offeror if the office issuing the solicitation receives such a request in writing before the due date and hour. The request must be signed by a person authorized to represent the person or firm that submitted the bid/proposal. July 2021 version

1. 12 Alterations To Bids or Proposals. Prior to submission of a bid or proposal, alterations may be made, but they must be initialed by the person signing the bid or proposal. The proper procedure is to draw a single line through the information to be changed and insert the desired information and initial the change.

Erasures, strikeovers, or the use of opaque fluid on bid or proposal forms that affect unit price, quantity, quality, or delivery may result in the rejection of the line item or items involved in the bid or proposal.

1. 13 Mistakes in Bids.

a. Correction. Except as herein provided, no plea or claim of mistake shall be available to a bidder for recovery of any deposit or security required to be paid or posted or as a defense in any legal proceeding for the failure, neglect or refusal of the bidder to (1) execute a contract that has been awarded by the Commonwealth, (2) accept a purchase order issued by the Commonwealth to a bidder in response to a bid submitted by such bidder, or (3) perform in accordance with the terms, specifications and conditions of a contract.

b. Mistakes Discovered Before Opening. A bidder may correct mistakes discovered before the time and date set for receipt of bids by withdrawing and replacing or by correcting the bid (see 5.11 and

1. 12).

c. Mistakes Discovered After Opening But Before Award

(1) Informality. An informality is a minor defect or variation of a bid or proposal from the exact requirements of the Invitation for Bids, or the Request for Proposal, which does not affect the price, quality, quantity, or delivery schedule for the goods, services, or construction being procured (Code of Virginia, § 2.2-4301). The procuring agency may, in its sole discretion, waive such informalities or permit the bidder/offeror to correct them, whichever procedure is in the best interest of the Commonwealth. Examples include the failure of a bidder/offeror to:

(a) Return the number of signed bids/proposals required by the solicitation.

(b) Sign the face of the bid/proposal in the space provided, but only if the unsigned bid/proposal is accompanied by other signed documents indicating the bidder's/ offeror's intent to be bound.

(c) Acknowledge receipt of an addendum to the solicitation, but only if it is clear from the bid/proposal that the bidder/offeror received the addendum and intended to be bound by its terms, or the addendum involved had a negligible effect on price, quantity, quality, or delivery.

(2) Judgment Errors. Bids may not be withdrawn if the mistakes are attributable to errors in judgment, nor may such mistakes be waived or corrected.

(3) Nonjudgmental Mistakes

(a) Mistakes Where the Intended Correct Bid is Evident. If the mistake and the intended correct bid are clearly evident in the bid document, the bid shall be corrected to the intended correct July 2021 version

bid and may not be withdrawn. Examples of mistakes that may be clearly evident in the bid document are typographical errors, errors in extending unit prices, transposition errors, and arithmetical errors.

(b) Mistakes Where the Intended Correct Bid is Not Evident. A bidder may be permitted to withdraw a low bid if a mistake is clearly evident from the bid documents submitted by the bidder and/or a comparison with other bids.

d. Mistakes Discovered After Award. Bids containing mistakes shall not be corrected or withdrawn after award of a contract or issuance of a purchase order. No plea or claim of mistake in a bid or resulting contract shall be available as a defense in any legal proceeding brought upon a contract or purchase order awarded to a bidder as a result of the breach or nonperformance of such contract or purchase order (see 7.14).

e. Construction. A bidder for a public construction contract, other than a contract for construction or maintenance of public highways, may withdraw his or her bid from consideration if the bid price was substantially lower than the other bids due solely to a mistake therein, provided the bid was submitted in good faith, and the mistake was a clerical mistake as opposed to a judgmental mistake, and was actually because of an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid, which unintentional arithmetic error or unintentional omission can be clearly shown by objective evidence drawn from inspection of original work papers, documents, and materials used in the preparation of the bid sought to be withdrawn. The bidder shall submit to the public body or designated official his or her original work papers, documents, and materials used in the preparation of the bid within one day after the date fixed for submission of bids. The work papers shall be delivered by the bidder in person or by registered mail at or prior to the time fixed for the opening of bids. Such work papers, documents and materials may be considered as trade secrets or proprietary information subject to the conditions of the Code of Virginia, § 2.2-4342F. The bids shall be opened one day following the time fixed by the public body for the submission of bids. Thereafter, the bidder shall have two hours after the opening of bids within which to claim in writing any mistake as defined herein and withdraw his or her bid. The contract shall not be awarded by the public body until the two-hour period has elapsed. Such mistake shall be proved only from the original work papers, documents and materials delivered as required herein [(Code of Virginia, § 2.2-4330A (ii)].

1. 14 Withdrawal of Bids. If the lowest apparent responsive bid is 25% or more lower than the next low bid, the buyer may contact the bidder to confirm the bid price. If the bidder is able to verify, to the satisfaction of the purchasing office, that it was a nonjudgmental mistake, the bid may be withdrawn.

a. If a bid is withdrawn, the lowest remaining bid shall be deemed to be the apparent low bid.

b. No bidder who is permitted to withdraw a bid shall, for compensation, supply any material or labor to or perform any subcontract or other work agreement for the person or firm to whom the contract is awarded or otherwise benefit, directly or indirectly, from the performance of the project for which the withdrawn bid was submitted. July 2021 version

c. If the public body denies the request for withdrawal of a bid under the provisions of this section, it shall notify the bidder in writing stating the reasons for its decision and award the contract to such bidder at the bid price, provided such bidder is a responsive and responsible bidder.

d. No bid may be withdrawn when the result would be the awarding of the contract on another bid of the same bidder or of another bidder in which the ownership of the withdrawing bidder is more than five percent.

1. 15 Denial of Withdrawal of Bid. If the state denies the withdrawal of a bid under the provisions of paragraph
2. 14, it shall notify the bidder in writing stating the reasons for its decision and award the contract to such bidder at the bid price, provided such bidder is a responsible and responsive bidder (Code of Virginia, §
3. 2-4330 F). The decision denying withdrawal of a bid shall be final and conclusive unless the bidder appeals the decision within ten days after receipt of the decision by invoking the appeals procedure in Chapter 9 or by instituting legal action as provided in the Code of Virginia, § 2.2-4364. July 2021 version

CHAPTER 6

EVALUATION AND AWARD

In this Chapter look for . . .

1. General
2. 1 Evaluation of Bids and Proposals
3. 2 Acceptance Period
4. 3 Notice of Intent to Award and Notice of Award
5. 4 Multiple Awards and Split Awards
6. 5 Tie Bids
7. 6 Deleted
8. 7 Negotiation with the Lowest Responsible Bidder

1. General. Factors other than price are considered in selecting the successful bidder/offeror. A determination must be made by the purchasing office as to whether the bidder/offeror is responsive to the requirements of the solicitation and whether or not they are a responsible bidder or offeror capable of furnishing the goods or services solicited (see sections 3.7 and 3.8). Any bidder who, despite being the apparent low bidder, is determined not to be a responsible bidder shall be notified in writing in accordance with section 9.5 of this manual. The state reserves the right to request samples of materials or equipment or further information prior to award even if not specifically required in the terms and conditions. Failure to provide requested material or information in a timely manner may be considered valid justification for rejection of the bid.

1. 1 Evaluation of Bids or Proposals

a. Evaluation of Bids. Bids are evaluated and an award should be made to the lowest responsive and responsible bidder in accordance with the Small Business Enhancement Award Priority. The state reserves the right to reject any and all bids in whole or in part and to waive any informality in the bid.

In the case of errors in the extension of prices, the unit price will govern (see 5.5).

b. Evaluation of Proposals - Goods and Nonprofessional Services. Proposals are evaluated by the buyer, contracting officer, or an evaluation team, on the basis of the criteria set forth in the RFP. Proposals deemed to be fully qualified and best suited are selected on the basis of the factors stated in the RFP.

As an option, evaluators may request presentations or discussions with offerors, as necessary, to clarify material in the offerors’ proposals, to help determine those fully qualified and best suited.

Offerors who fail to submit required documentation or meet mandatory requirements, in such time, for evaluation purposes may be eliminated from further consideration. Negotiations are then conducted with two or more of the selected offerors. Price is considered, but need not be the sole determining factor. After negotiations have been completed, the purchasing office shall select the offeror (or offerors, if multiple awards are provided for in the RFP), which in its opinion has made the best proposal, and an award should be made to the highest ranking offeror in accordance with the July 2021 version

Small Business Enhancement Award Priority. Offerors and subcontractors must have received their DSBSD certification as a small business by the closing date of the RFP in order to receive points for the solicitation’s evaluation criteria. If so provided in the RFP, after negotiations have been held, offerors are given the opportunity to submit best and final offers. The state is not required to furnish a statement of the reasons why a particular proposal was not deemed the most advantageous (Code of Virginia, § 2.2-4359D). Should the purchasing office determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified than others under consideration, a contract may be negotiated and awarded to that offeror.

c. The Commonwealth in its sole discretion may choose not to make an award to a bidder or offeror who is in litigation with the Commonwealth at the time of bid/proposal evaluation.

1. 2 Acceptance Period. Bids are valid for a minimum of thirty (30) days unless a longer period of time is specified in the solicitation or in the bid response. If an award decision has not been made at the end of the stipulated days, the bid may be withdrawn at the written request of the bidder. If the bid is not withdrawn at that time, it remains in effect until an award is made or the bids are rejected.

1. 3 Notice of Intent to Award and Notice of Award. When the evaluation is complete, the office that issued the solicitation will announce its decision by posting either a Notice of Intent to Award or Notice of Award on the DGS/DPS eVA web site. Notices may also be posted in their public notice posting area or other designated location as stated in the solicitation document. A copy of the notice will be mailed to any bidder submitting a self-addressed, stamped envelope for this purpose with the bid/proposal. A low bidder determined not to be a responsible bidder will be notified in writing (see 9.5). A Notice of Award will be posted for 10 days if a Notice of Intent to Award is not issued.

1. 4 Multiple Awards and Split Awards. When the terms and conditions of multiple awards are so provided in the Invitation for Bids or Request for Proposal awards may be made to more than one bidder or offeror.

Unless otherwise specified in the solicitation, purchasing offices may award a multi-line item procurement in whole or in part or on an individual line item basis. In determining whether to make separate line item awards on a multi-line item solicitation, consideration will be given to the agency’s administrative costs for processing individual purchase documents, and separate invoices and checks.

1. 5 Tie Bids

a. Virginia Products or Firms. A tie bid exists when two or more bidders offer products or services that meet all specifications, terms and conditions at identical prices. In the case of a tie bid, preference shall be given to goods produced in Virginia, goods or services or construction provided by Virginia persons, firms or corporations, if such a choice is available; otherwise, the tie shall be decided by lot, (Code of Virginia, § 2.2-4324). At the option of the office issuing the IFB, all bids may be rejected and the program rebid. Tie bids are reported to the Antitrust Unit of the Virginia Attorney General's Office (see also 1.8). Whenever any bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a preference, a like preference may be allowed to the lowest responsible bidder who is a resident of Virginia. July 2021 version

b. Recycled Content. In the case of a tie bid in instances where goods are being offered and existing price preferences have already been taken into account, preference then shall be given to the bidder whose goods contain the greatest amount of recycled content.

1. 6 Deleted.

1. 7 Negotiation with the Lowest Responsible Bidder. Unless canceled or rejected, a responsive bid from the lowest responsible bidder shall be accepted as submitted except that if the bid exceeds available funds, the state may negotiate with the apparent low bidder to obtain a contract price within available funds; however, such negotiation may be undertaken only under conditions and procedures described in writing and approved by the public body prior to issuance of the Invitation to Bid and summarized therein (Code of Virginia, § 2.2-4318). July 2021 version

CHAPTER 7

PERFORMANCE

In this Chapter look for . . .

1. 1 Purchase Order, Authority and Shipment
2. 2 New/Used/Altered
3. 3 Packaging
4. 4 Substitutions
5. 5 Loss or Damage in Transit
6. 6 Freight
7. 7 Delivery
8. 8 Receipt of Shipments
9. 9 Overshipments/Overruns
10. 10 Inspection
11. 11 Assignment of Contract
12. 12 Contract Renewal or Extension
13. 13 Complaints
14. 14 Termination for Default
15. 15 Cancellation of Purchase Orders and Contracts
16. 16 Purchase Order Changes
17. 17 Contract/Purchase Order Modification Restrictions
18. 18 Termination for Convenience of the Commonwealth
19. 19 Claims
20. 20 Debarment
21. 21 Ineligibility or Disqualification of Manufacturer
22. 22 Debarment Period
23. 23 Debarment Notification and Appeal Procedure
24. 24 Suspension

1. 1 Purchase Order, Authority and Shipment. A purchase order is a document used by a state agency or institution to execute a purchase transaction with a vendor. The order number should be shown on all bills of lading, packing slips, back orders, invoices, etc. The receipt of a purchase order authorizes shipment (for requirements-type contracts, the receipt of a notice of award establishing a contract does not authorize shipment). Contractors who accept and deliver an order without a written purchase order or other properly executed Commonwealth contract form do so at their own risk.

1. 2 New/Used/Altered. All supplies and equipment furnished must be new and in first class condition unless the solicitation and contract award specified used items. Demonstration, previously rented or reconditioned items are not considered new. No equipment is acceptable if serial numbers or any other manufacturers' identifying labels or marks have been removed, obliterated, or changed. July 2021 version

1. 3 Packaging. Unless otherwise specified in the solicitation, new standard commercial packing and shipping containers shall be used. Shipping containers should be legibly marked or labeled on the outside with the commodity description and number, size, quantity, contract number, and agency purchase order number or purchase order number. A packing slip or invoice should accompany all shipments and should reference the purchase order number. Failure to do so may result in delayed payment processing.

1. 4 Substitutions. Substitution is defined as delivery of an item that does not conform to the specifications of the purchase order or contract. Substitutions on purchase orders require the prior approval of the purchasing office issuing the award. Any item delivered not meeting specifications may be returned to the contractor at the contractor's expense. When an item is returned, the contractor must make immediate replacement with acceptable merchandise or be considered in default.

1. 5 Loss or Damage in Transit. Delivery by a contractor to a common carrier does not constitute delivery to state agencies or political subdivisions. Any claim for loss or damage incurred during delivery shall be between the contractor and the carrier. The state accepts title only when goods are received regardless of the F.O.B. point. The receiving agency will note all apparent damages in transit on the freight bill and notify the contractor. Discovery of concealed damage or loss will be reported by the receiving agency to the carrier and the contractor within seven days of receipt and prior to removal from the point of delivery if possible. The contractor shall make immediate replacement of the damaged or lost merchandise or be in default of the contract. It shall be the contractor's responsibility to file a claim against the carrier. If damage is to a small quantity, with the approval of the agency, the contractor may deduct the amount of damage or loss from his or her invoice to the agency in lieu of replacement.

1. 6 Freight. By signing an IFB the bidder certifies that the bid price(s) offered for F.O.B. destination include only the actual freight charges at the lowest and best rate and is based upon the actual weight of the goods to be shipped. Freight charges are, therefore, established for each individual purchase. If a requirement is bid F.O.B. origin, the contractor shall prepay the charges and add the amount to the invoice. A copy of the freight bill should be attached to all invoices that include freight charges. In a solicitation specifying F.O.B. origin the state will consider freight cost in the evaluation of bids.

1. 7 Delivery. Delivery must be made by the date or period specified in the purchase order or contract or the contractor will be in default. The receiving sections of most state agencies are open during normal working hours, Monday through Friday, except on official holidays. If a contractor cannot make delivery as specified under an existing purchase order or contract, the contractor must immediately notify the ordering agency. The contractor may offer a new delivery date; however, if it is not acceptable to the agency and delivery cannot be made as originally specified, the contractor will be in default (see 7.14).

1. 8 Receipt of Shipments.

a. General. Shipments will be checked against the agency's copy of the ordering document to assure quantities, units, etc., match. Overshipments may be rejected and returned at the contractor's expense.

Required grading certificates, USDA stamps, or any other proofs of quality must precede or accompany the shipment. Contractors should ensure that they have been given a specific delivery location and obtain a signed receipt for goods delivered. July 2021 version

b. Printing Overruns, Underruns. The State is not required to accept overruns provided “no overruns” is specified in the solicitation. However, an agency may, at its discretion, accept up to a ten percent overrun. The additional overrun price quoted shall not exceed the base lot price quoted for the equivalent incremental quantity. Whichever price is less will prevail. An agency may at its discretion accept an underrun, provided that credit is allowed the agency at the full base price per unit for the quantity of the underrun.

1. 9 Overshipments. An agency should not accept goods in excess of those specified on the purchase order or contract unless it is recognized as a custom of that industry (e.g. printing, cable, fabric), is so stated in the bid, and is accepted by the buyer. Increases or decreases exceeding $500 shall be provided for by a change order and shall be provided whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate. Change orders for increases or decreases up to $500 shall be prepared if requested by the supplier (see 8.9). In the event that an overshipment is not recognized until after receipt and not provided for in the award, the agency must notify the contractor that the overshipment will not be accepted and, unless the overshipment is picked up by the contractor, it will be returned at the contractor's expense.

1. 10 Inspection. All materials, equipment, supplies, and services are subject to inspection and testing. Items or services that do not meet specifications may be rejected. Failure to reject upon receipt, however, does not relieve the contractor of liability for latent or hidden defects subsequently revealed when goods are put to use or tested. If latent defects are found, the contractor is responsible for replacing the defective goods within the delivery time originally stated in the solicitation and is liable for any resulting expenses incurred by the state.

1. 11 Assignment of Contract. A contract shall not be assignable by the vendor in whole or in part without the written consent of the state purchasing office issuing the contract.

1. 12 Contract Renewal or Extension. A term contract may contain a renewal clause describing the conditions under which it may be renewed. All renewals must be fully executed in writing prior to the expiration of the current contract term. Term contracts for goods or nonprofessional services may not be renewed without a renewal clause, except that in exceptional or extenuating circumstances a contract may be extended by mutual consent for a limited period of time, not to exceed six (6) months. This action shall be in writing prior to the expiration of the current contract. The state may extend the term of an existing contract for services to allow completion of any work undertaken but not completed during the specified term of the contract.

1. 13 Complaints.

a. Contracts. The following chart lists the agency that will handle certain types of procurement complaints:

Type of Complaint Agency Goods and Non-professional Services DGS/Division of Purchasing and Supply Technology (IT) Virginia Information Technologies Agency (VITA) Purchasing July 2021 version

Construction awarded under Division of Engineering and DGS/Division of Engineering & Buildings and certain professional services Buildings

b. Solicitation. Any issues concerning solicitations or non-contractual issues should be addressed with the issuing agency.

c. Existing Contracts. Any differences between the provisions of the contract and subsequent performance will be reported by the ordering agency to the contractor on a Procurement Complaint Form (PCF). Vendors are required to respond to the agency within 10 calendar days. A copy of the complaint form should be sent to DGS/DPS via email (procurementcomplaint@dgs.virginia.gov). A vendor’s failure to respond may affect future business with the Commonwealth.

Vendors may also use this form to communicate any non-compliance issues with the contract or ordering agency. The PCF is available to vendors at www.eva.virginia.gov by clicking on “I Sell to Virginia.” Agencies are required to respond to the vendor within 10 calendar days and to send a copy to DGS/DPS (procurmentcomplaint@dgs.virginia.gov).

1. 14 Termination for Default. In case of default by a contractor for failure to deliver or perform in accordance with the contract specifications or terms and conditions, the state may procure the articles or services from other sources and hold the defaulting contractor responsible for any resulting additional purchase and administrative costs. The state will normally repurchase from the next low bidder or purchase competitively by resolicitation. If the repurchase results in increased costs to the Commonwealth, a letter will be sent to the defaulted contractor requiring payment within a specified time frame for additional costs. If repayment has not been made by the end of the specified period of time, subsequent collection action shall be taken in accordance with the Office of Attorney General’s Collection Procedure Guidelines and , debar proceedings may be instigated (see 7.20p).

Contractors shall not be liable for any excess cost if the failure to perform arises out of any act of war, order of legal authority, strikes, act of God, or other unavoidable causes not attributed to their fault or negligence. Failure of a contractor's source to deliver is generally not considered to be an unavoidable cause. The burden of proof rests with the contractor.

1. 15 Cancellation of Purchase Orders and Contracts. Cancellation of purchase orders will be made in writing by the purchasing office that issued the order. Orders or contracts may be canceled without a contractor's consent as provided in 7.14, Termination for Default, or 7.18, Termination for Convenience of the Commonwealth. A contractor may request cancellation, and the state will grant relief if the contractor is prevented from specific performance, including timely delivery, by an act of war, order of legal authority, act of God, or other unavoidable causes not attributed to the contractor's fault or negligence. Failure of a contractor's source to deliver is generally not considered to be an unavoidable cause. The burden of proof for need of such relief rests with the contractor. The state reserves the right to cancel all contracts with any contractor who fails to perform for any one contract.

1. 16 Purchase Order Changes. A purchase order change is used to correct errors, to add or delete small quantities of goods, or to make other minor adjustments in the original orders.

Change orders, regardless of dollar value, shall be processed whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate, as may be required by internal policy when the actual July 2021 version

invoiced amount differs from the purchase order total. When the actual invoiced amount differs from the purchase order total change orders, regardless of dollar value, shall be processed whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate; However, a contract or purchase order may not be modified or renewed unless provided for in the original contract or solicitation.

Change orders may also be used to cancel an order (see 7.14 & 7.15). A contractor who deviates from the requirements of a purchase order or contract prior to receipt of an authorized change order does so at its own risk (see 7.17).

1. 17 Contract/Purchase Order Modification Restrictions. No contract or purchase order may be modified or renewed unless provided for in the original contract or solicitation. No additional consideration or increase in contract price may be paid to the contractor because of renewal unless specifically authorized under the original contract. A public contract may include provisions for modification of the contract during performance, but no fixed price contract may be increased by more than 25 percent of the original amount of the contract or $50,000, whichever is greater, without the advance written approval of the Governor or his designee. By executive order this is the Director of General Services. In no event may the amount of any contract, without adequate consideration, be increased for any purpose, including, but not limited to, relief of a bidder or offeror from the consequences of an error in its bid or offer (Code of Virginia, § 2.2-4309A). Cumulative contract modifications up to and including $50,000 shall not exceed 25% of the original contract price without advance written approval of the agency head or his or her designee. Contract renewals or modifications must be in writing under the signature of the buyer/contract officer responsible for the purchase.

1. 18 Termination for Convenience of the Commonwealth. A purchase order or contract may be terminated for the convenience of the Commonwealth by delivering to the contractor a notice of termination specifying the extent to which performance under the purchase order or contract is terminated, and the date of termination. After receipt of a notice of termination, the contractor must stop all work or deliveries under the purchase order or contract on the date and to the extent specified.

If the purchase order or contract is for commercial items sold in substantial quantities to the general public and no specific identifiable inventories were maintained exclusively for the Commonwealth's use, no claims will be accepted by the Commonwealth. Payment will be made for items shipped or services provided prior to receipt of the termination notice, unless otherwise specified in the contract.

If the purchase order or contract is for items being produced exclusively for the use of the Commonwealth, and raw materials or services must be secured by the contractor from other sources, the contractor shall order no additional materials or services except as may be necessary for completion of any portion of the work which was not terminated. The state may direct the delivery of the fabricated or non-fabricated parts, work in process, completed work, supplies, and other material produced as a part of, or acquired in connection with the performance of the work, or direct the contractor to sell the same, subject to the state's approval as to price. The contractor may, with the approval of the state, retain the same, and apply a credit to the claim. The contractor must complete performance on any part of the purchase order or contract not terminated.

The contractor must submit any termination claim within 120 days after receipt of the notice of termination, or such longer period as the state for good cause may allow. This claim will be in a form and July 2021 version

with certifications prescribed by the purchasing office that issued the purchase order. The claim will be reviewed and forwarded with appropriate recommendations to the requisitioning agency and/or the appropriate assistant attorney general for disposition in accordance with the Code of Virginia, § 2.2-514.

Termination for convenience claims will be considered for only actual expenses incurred up to the time of termination.

1. 19 Claims. Written notice of the contractor's intention to file a claim whether for money or other relief, must be given at the time of the occurrence or beginning of the work upon which the claim is based. Contractual claims whether for money or other relief shall be submitted in writing no later than sixty days after final payment. Nothing herein shall preclude a contract from requiring submission of an invoice for final payment within a certain time after completion and acceptance of the work or acceptance of the goods.

Pendency of claims shall not delay payment of amounts agreed due in the final payment.

A contractor may not institute legal action prior to receipt of the purchasing office's decision on the claim unless that office fails to render such decision within thirty (30) days. The decision of the purchasing office shall be final and conclusive unless the contractor, within six months of the date of the final decision on the claim, institutes legal action as provided in the Code of Virginia, § 2.2-4364.

1. 20 Debarment. Debarment as used in this section means action taken by the Director of the Division of Purchases and Supply (DPS) to exclude individuals or firms from contracting with state agencies for particular types of goods or nonprofessional services for specified periods of time. Debarment does not relieve the contractor of responsibility for existing obligations.

The purpose of debarment is to protect the Commonwealth from risks associated with awarding contracts to persons or firms having exhibited an inability or unwillingness to fulfill contractual requirements, and to protect state interests and the integrity of the state's procurement process by preventing individuals or firms who have displayed improper conduct from participating on Commonwealth requirements for specific periods of time.

Causes for Debarment. An individual or firm may be debarred for any of the following reasons:

a. Breach (including anticipatory breach) of contract with a state agency. As examples of Breach, failure of the vendor to comply with provisions 1. or 2. of the Commonwealth’s “ANTI-DISCRIMINATION” clause, or failure to comply with a Most Favored Customer Clause included in its contract. For default action see 7.14.

b. Sale or attempted sale to a state agency of the same or similar goods or services which are available under an existing mandatory DGS/DPS state contract, when the contractor knew or had reason to know that the goods or services are required to be purchased under the contract, unless such sale or attempted sale occurs in response to an IFB, RFP, or unsealed solicitation that specifies such goods or services.

c. Stating an unwillingness or inability to honor a binding bid. A mere request to withdraw a bid, which does not otherwise state an unwillingness or inability to perform, is not a cause for debarment. July 2021 version

d. Asserting facts related to procurement matters without having reasonable grounds at that time to believe that the facts are true. Examples include but are not limited to: falsifying or misrepresenting manufacturer's specifications in order to appear responsive to a solicitation; or asserting, without reasonable belief in its accuracy, information in support of an invoice, claim, protest, contract amendment, qualification application, or administrative or judicial appeal document. It is not necessary for the presentation to actually affect a decision, and it is not a defense that the recipient of the communication knew or should have known the true facts.

e. Conferring or offering to confer any gift, gratuity, favor, or advantage, present or future, upon any employee of a state agency who exercises any “official responsibility”for a “procurement transaction”as those terms are defined in the Code of Virginia, § 2.2-4368. It is not necessary that the offer be accepted by the employee, or that the offer is made with intent to influence the employee in an official act. Extending to any state employee exercising official responsibility for a procurement transaction any discount or privilege not available to all state employees is considered to be offering an advantage.

f. Failing to disclose a condition constituting a conflict of interest by any officer, director, owner, or partner of the vendor in a contract or purchase order awarded by DPS or any other agency of the state (Code of Virginia, § 2.2-3106).

g. Any cause indicating that the individual or firm lacks the moral and business integrity and reliability that will assure good faith performance.

h. A determination by the Director of DPS that a vendor has used abusive or obscene language or a threatening manner toward state purchasing personnel during the performance of their duties or as a result of the performance of their duties.

i. Sale, under nonemergency conditions, of building materials, supplies, or equipment for any building or structure constructed by or for the Commonwealth by an independent contractor employed to furnish architectural or engineering services, but not construction for such building or structure or from any partnership, association or corporation in which such architect or engineer has a personal interest (Code of Virginia, § 2.2-3101 and § 2.2-4374).

j. Sale, under nonemergency conditions, of building materials, supplies or equipment for any building or structure constructed by or for the Commonwealth by any person who has provided or is currently providing design services specifying a sole source for such materials, supplies or equipment to be used in such building or structure to the independent contractor employed by the Commonwealth to furnish architectural or engineering services in which such person has a personal interest as defined in Code of Virginia, § 2.2-3101.

k. Sale of goods or services to the Commonwealth when such sale is prohibited by any debarment then in effect.

l. Consent of the firm or individual being debarred.

m. Conviction of any criminal offense involving public contracting. Examples include, but are not limited to, bribery (Code of Virginia, § 18.2-447) and knowingly making a false statement in regard July 2021 version

to collusion on a solicitation (Code of Virginia, § 18.2-498.4). Conviction for any of the above of any officer, director, owner, partner, agent, or related business entity of a vendor shall constitute grounds for the removal of the vendor.

n. Court judgment finding a violation of either federal or state antitrust laws.

o. Conviction of any offenses indicating a lack of moral or business integrity.

p. Failure to pay reprocurement costs pursuant to a contract termination for default.

q. Failure to comply with the provisions of the E-Verify program (Code of Virginia, §2.2-4308.2).

r. Failure to pay Vendor Transaction Fees invoiced by the Commonwealth of Virginia Department of General Services.

s. Creating or using an entity for the purpose of circumventing a debarment decision against another individual or firm.

t. Effective January 1, 2021; failure of an employer, or any officer or agent of the employer, to properly classify an individual as an employee in accordance with §58.1-1900 of the Code of Virginia.

It is not necessary that there be a judicial determination of violations contained in subparagraphs a. through l. and p. for debarment to occur.

If the debarring official finds that the cause for debarment reflects on the contractor's traits or tendencies only with regard to certain goods or services, the debarment may apply only to such goods or services.

Otherwise the debarment shall apply to all goods and services within the purview of the debarring agency

(DPS).

1. 21 Ineligibility or Disqualification of Manufacturer. Should any manufacturer commit any of the acts described in paragraph 7.20, bids offering material, equipment, or supplies manufactured by that firm may be rejected even though the bid is submitted by a vendor in good standing.

1. 22 Debarment Period. Debarment shall be for a period of ninety (90) days to three (3) years, at the discretion of the debarring official, except as follows. The debarment for subparagraphs m., n., and o. of paragraph
2. 20 shall be for a period of three (3) years. The debarment for subparagraph p. of paragraph 7.20 shall be for a period of one year or until the reprocurement costs are paid or until the contract breach is resolved, whichever is longer. EFFECTIVE 12/1/13, the debarment for subparagraph q. of paragraph 7.20 shall be for a period up to one year; such debarment shall cease upon the employer’s registration and participation in the E-Verify program (Code of Virginia, §2.2-4308.2). The debarment for subparagraph r. shall be for a period of one (1) to three (3) years or until the Vendor Transaction Fees are paid, whichever is longer.

Debarment shall commence upon notification, or if later, upon expiration of any existing debarments.

Notwithstanding the prescribed duration of the debarment, solely at the discretion and at the instance of the Director of DPS a debarment may be lifted or suspended at any time if the Director of DPS determines it is in the best interest of the Commonwealth. The Director of DPS may require a debarred individual or July 2021 version

firm to provide information in writing regarding actions taken to remedy the reason for debarment or prevent recurrence of the situation that caused the debarment action to be taken and otherwise indicating that lifting or suspension of the debarment would be in the best interest of the Commonwealth. Examples of actions that the Director may take into consideration include, but are not limited to:

a. Repayment by a debarred contractor of additional costs resulting from a default action for which the contractor had previously failed to reimburse the Commonwealth and was debarred.

b. Repayment by a debarred contractor of Vendor Transaction Fees.

c. Disassociation with individuals or firms that were responsible for the debarment.

1. 23 Debarment Notification and Appeal Procedure. Please see Chapter 9, Section 3.

1. 24 Suspension. Suspension is a type of ineligibility based upon adequate evidence that a vendor has committed any of the grounds for debarment as listed in this manual under paragraph 7.20. In the event that an indictment against a vendor or its principles exists for any of the reasons listed in this manual, paragraphs 7.20 m., n., or o., the indictment shall constitute adequate evidence for suspension. The period of suspension shall not exceed one year unless requested by the Office of the Attorney General. The process for suspension will be governed by the same procedures used for debarment/ineligibility.

Adequate evidence means information sufficient to support the reasonable belief that a particular act or omission has occurred. July 2021 version

CHAPTER 8

CHARGES AND COLLECTIONS

In this Chapter look for . . .

1. 1 Separate Agency Records
2. 2 Charge Cards for Small Purchases
3. 3 Billings and Invoices
4. 4 Partial Payments
5. 5 Contractor Payment Assistance
6. 6 Prompt Payment of Bills
7. 7 Payment Requirements: All Contracts
8. 8 Payment by Electronic Funds Transfer
9. 9 eVA Transaction Fees

1. 1 Separate Agency Records. Except when state agencies and institutions use charge cards for small purchases of goods and services, contractors must make separate accounts or charges for each agency since the agencies are individually responsible for payment. The name and address of the requisitioning agency is shown on each purchase order, delivery order, or agency purchase order.

1. 2 Charge Card Payments. In an effort to streamline invoice and payment processing steps and sharply reduce paperwork, the Department of Accounts (DOA) has established a contract allowing agencies and institutions to use charge cards through two programs, the Small Purchase Charge Card (SPCC) and Gold Card. Unlike the typical consumer charge card, this program incorporates the features of corporate charge cards—national concept designed for business applications. Major program benefits include the reduction in the number of invoices submitted to Commonwealth agencies and institutions, reduction in internal requisitioning and purchase order processing steps, reduced vendor collections costs and payment to the vendor by the charge card company within as little as three business days. As a cost cutting endeavor, vendors are strongly encouraged to participate. Information can be obtained by calling DOA at 804-371-4350, by emailing cca@doa.virginia.gov, or by faxing at 804-786-9201.

a. Deleted.

b. Deleted.

1. 3 Billings and Invoices. The invoices must be submitted to the state agency concerned. Prompt payment discounts will be taken if offered and payment is made within the prescribed time frame. Time will be computed from the date of delivery or performance or from the date a valid invoice is received, whichever is later. Invoices should reference the purchase order or contract number and be in accordance with the terms of such. July 2021 version

1. 4 Partial Payments. Agencies may initiate partial payments when portions of the goods have been received in good condition and have been properly invoiced by the contractor and partial payment is authorized by the governing contract.

1. 5 Contractor Payment Assistance. Requests for assistance regarding payment from a state agency should be addressed to the agency concerned. In the event a contractor, after contacting a state agency, has an unresolved payment problem in regard to a contract or purchase order, the contractor may contact the DGS/DPS Supplier Relationship Manger via email at ProcurementComplaint@dgs.virginia.gov or the appropriate agency contracting office for assistance.

1. 6 Prompt Payment of Bills (Code of Virginia, §§ 2.2-4347 through 2.2-4354).

a. Every state agency that acquires goods or services or conducts any other type of contractual business with nongovernmental, privately owned enterprises shall promptly pay for the completely delivered goods or services by the required payment date. Payment is deemed to have been made when offset proceedings have been instituted, as authorized under the Virginia Debt Collection Act (Code of Virginia, § 2.2-4801 et seq.).

b. Definitions - As used in this paragraph, unless the context clearly shows otherwise, the term or phrase:

(1) “Debtor” means any individual, business, or group having a delinquent debt or account with any state agency whose obligation has not been satisfied or set aside by court order or discharged in bankruptcy.

(2) “Contractor” means the entity that has a direct contract with any “state agency” as defined herein.

(3) “Payment date” means either (a) the date on which payment is due under the terms of a contract for provision of goods or services, or (b) if such date has not been established by contract, thirty days after receipt of a proper invoice by the state agency or its agent for the amount of payment due, or thirty days after receipt of the goods or services, whichever is later.

(4) “State agency” means any authority, board, department, instrumentality, institution, agency or other unit of state government.

(5) “Subcontractor” means any entity that has a contract to supply labor or materials to the contractor to whom the contract was awarded or to any subcontractor in the performance of the work provided for in such contract.

c. Separate payment dates - Separate payment dates may be specified for contracts under which goods or services are provided in a series of partial deliveries or executions to the extent that such contract provides for separate payment for such partial delivery or execution.

d. Defect or impropriety in the invoice or goods and/or services received - In instances where there is a defect or impropriety in an invoice or in the goods or services received, the state agency shall notify the supplier of the defect or impropriety, if the defect or impropriety would prevent payment by the July 2021 version

payment date. The notice shall be sent within fifteen days after receipt of the invoice or the goods or services. (Code of Virginia § 2.2-4351)

e. Interest penalty; exceptions - Interest shall accrue, at the rate determined pursuant to paragraph f., on all amounts owed by a state agency to a contractor which remain unpaid after seven days following the payment date, except where a contract provides for a different rate of interest, or for the payment of interest in a different manner.

f. The rate of interest charged a state agency pursuant to paragraph e. shall be the base rate on corporate loans (prime rate) at large United States money center commercial banks as reported daily in The Wall Street Journal. Whenever a split prime rate is published, the lower of the two rates is to be used.

However, in no event shall the rate of interest charged exceed the rate of interest established pursuant to Code of Virginia, § 58.1-1812.

g. Notwithstanding paragraph e., no interest penalty shall be charged when payment is delayed because of a disagreement between a state agency and a contractor regarding the quantity, quality or time of delivery of goods or services or the accuracy of any invoice received for such goods or services. The exception from interest penalty provided by this paragraph shall apply only to that portion of a delayed payment which is actually the subject of such a disagreement and applies only for the duration of such disagreement.

h. Notwithstanding paragraph e., no interest penalty shall be paid to any debtor on any payment, or portion thereof, withheld pursuant to the Comptroller's Debt Set-off Program, as authorized by the Virginia Debt Collection Act (Code of Virginia, §§ 2.2-4801 through 2.2-4808), commencing with the date the payment is withheld. If, as a result of an error, a payment or portion thereof is withheld, and it is determined that at the time of set-off no debt was owed to the Commonwealth, then interest shall accrue at the rate determined pursuant to paragraph f. of this section on amounts withheld which remain unpaid after seven days following the payment date.

i. Date of postmark deemed to be date payment is made - In those cases where payment is made by mail, the date of postmark shall be deemed to be the date payment is made. Generally speaking, all checks released by the Department of Accounts will be on the 30th day following delivery and receipt of a proper invoice.

j. Notwithstanding the provisions of paragraph e., the provisions of Code of Virginia, § 2.2-4333, relating to retainage on construction contracts shall remain valid.

k. Utility tariffs prescribed by the State Corporation Commission are exempt from the provisions of 8.6.

l. Contractors submitting invoices for interest due from a state agency should include, as a minimum, the following data:

(1) Original purchase order number or contract number;

(2) Envelope bearing postmark of the date payment was made. Where the envelope is not available, interest will be computed from the second business day after date of issue of the check; July 2021 version

(3) Original invoice number and date;

(4) Date of publication of the issue of The Wall Street Journal upon which the interest rate is based.

m. The payment date for items in disagreement shall be 30 days after the resolution of such disagreement.

1. 7 Payment Requirements: All Contracts. All contracts awarded by state Agencies and Institutions require the following action to be taken by contractors:

a. Within seven days after receipt of amounts paid for work performed by the subcontractor under that contract:

(1) pay the subcontractor for the proportionate share of the total payment received from the agency attributable to the work performed by the subcontractor under that contract; or

(2) notify the agency and subcontractor, in writing, of his intention to withhold all or a part of the subcontractor's payment with the reason for nonpayment.

(3) A subcontractor may contact the contracting agency concerning non-payment and non-notification by the prime contractor. The agency will submit a Procurement Complaint Form to the prime contractor and the DGS/DPS Supplier Relationship Manager. The subcontractor has to show proof that it has not been paid by providing supportive document.

b. If an individual contractor, provide social security number in order to receive payment.

c. If a proprietorship, partnership or corporation, provide federal employer identification number.

d. Pay interest to subcontractors on all amounts owed by the contractor that remain unpaid after seven days following receipt by the contractor of payment from the state agency for work performed by the subcontractor under that contract, except for amounts withheld as allowed in paragraph 8.7a(2) above.

e. Interest shall accrue at the rate of one percent per month.

f. To include in each of its subcontracts a provision requiring each subcontractor to include or otherwise be subject to the same payment and interest requirements with respect to each lower-tier subcontractor.

g. All prime contractors shall report subcontracting activities in accordance with Appendix B., Special Terms and Conditions, Section II. 36. The contractor shall furnish monthly to the purchasing office, all applicable information for each subcontractor listed on the Small Business Subcontracting Plan via the Subcontractor payment tool available through the contractor’s eVA account. July 2021 version

NOTE: A contractor's obligation to pay an interest charge to a subcontractor may not be construed to be an obligation of a state agency or institution of the Commonwealth. A contract modification may not be made for the purpose of providing reimbursement for such interest charge. A cost reimbursement claim may not include any amount for reimbursement for such interest charge.

1. 8 Payment by Electronic Funds Transfer. The Commonwealth of Virginia disburses payments to vendors via paper checks. In addition, payments can be made to selected vendors with large transaction volume through the Commonwealth's Financial Disbursement System using Electronic Data Interchange (EDI) and its connectivity to the Automated Clearing House (ACH) network. Vendors who qualify for EDI through the Commonwealth's Financial Disbursement System will be paid in accordance with the Prompt Payment Act of Virginia which requires payment within 30 days of invoice or receipt of goods or services date, or by the terms and conditions established under contractual agreements with individual state agencies. Each party shall bear the respective fees and other charges assessed by its designated bank(s) and third party service providers for financial EDI payments. For additional information relating to benefits of using EDI and the eligibility criteria, contact the Department of Accounts Hotline at 804-692-0473 or https://www.doa.virginia.gov/reference.shtml#edi.

1. 9 eVA Transaction Fees.

a. Change Orders/Adjustments: The purchasing office is required to issue an eVA change order whenever the agency approves a change. A supplier, however, may request that an agency issue an eVA change order for any amount to ensure the supplier’s eVA transaction fee is accurate. Suppliers should contact the purchasing office that issued the eVA purchase order to request such a change.

Suppliers may contact eVA Billing Customer Care at 1-866-289-7367, Option 2 or eVACustomerCare@dgs.virginia.gov if additional assistance is required.

b. Refunds: Supplier credit balances that are reflected on eVA fee invoices are refundable upon validation of the credit balance by eVA Billing Customer Care. To request refund of a credit balance, the vendor must contact eVA Billing Customer Care at 1-866-289-7367, Option 2 or eVACustomerCare@dgs.virginia.gov July 2021 version

CHAPTER 9

PROTESTS AND APPEALS

In this Chapter look for . . .

1. General
2. 1 Deleted
3. 2 Deleted
4. 3 Appeal of Ineligibility or Disqualification Determination or Debarment
5. 4 Appeal of a Denial of Bid Withdrawal
6. 5 Appeal of Nonresponsibility Determination
7. 6 Protest of Award or Decision to Award
8. 7 Deleted.
9. 8 Exhaustion of Administrative Procedures.
10. 9 Effect of the Appeal on Procurement Proceedings
11. 10 Time and Place of Hearings
12. 11 Deleted
13. 12 Hearing Procedures
14. 13 Deleted
15. 14 Administrative Support
16. 15 Board's Decision
17. 16 Judicial Review
18. 17 Alternative Dispute Resolution

1. General. The Virginia Public Procurement Act (VPPA) provides that a public body may establish administrative procedures for hearing procurement protests and appeals. It is not intended that the administrative appeals procedures set forth in § 2.2-4365 supplant or interfere with the informal resolution of disputes between the procuring agency and the contractor. Informal resolution of complaints in lieu of appealing is encouraged. With the abolishment of the DGS/DPS Procurement Appeals Board, Purchasing Agencies are permitted to establish their own Procurement Appeals Board. Information in this chapter regarding appeals proceedings, Hearings, Procurement Boards and/or ADR is intended solely as guidance and not as a requirement.

1. 1 Deleted.

1. 2 Deleted.

1. 3 Appeal of Ineligibility or Disqualification Determination or Debarment (Code of Virginia, § 2.2-4357). Any bidder, offeror or contractor refused permission to participate, or disqualified from participation, in public contracts shall be notified in writing. Prior to the issuance of a written determination of disqualification or ineligibility, the public body shall (i) notify the bidder in writing of July 2021 version

the results of the evaluation, (ii) disclose the factual support for the determination, and (iii) allow the bidder an opportunity to inspect any documents that relate to the determination, if so requested by the bidder within five business days after receipt of the notice.

Within ten business days after receipt of the notice, the bidder may submit rebuttal information challenging the evaluation. The public body shall issue its written determination of disqualification or ineligibility based on all information in the possession of the public body, including any rebuttal information, within five business days of the date the public body received such rebuttal information.

If the evaluation reveals that the bidder, offeror or contractor should be allowed permission to participate in the public contract, the public body shall cancel the proposed disqualification action. If the evaluation reveals that the bidder should be refused permission to participate, or disqualified from participation, in the public contract, the public body shall so notify the bidder, offeror or contractor. The notice shall state the basis for the determination, which shall be final unless the bidder appeals the decision within ten days after receipt of the notice by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in § 2.2-4364.

If, upon appeal, it is determined that the action taken was arbitrary or capricious, or not in accordance with the Constitution of Virginia, applicable state law or regulations, the sole relief shall be restoration of eligibility.

1. 4 Appeal of a Denial of Bid Withdrawal. (Code of Virginia, § 2.2-4358). A decision denying withdrawal of bid under the provision of § 2.2-4330 shall be final and conclusive unless the bidder appeals the decision within ten days after receipt of the decision by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in § 2.2-4364. If, upon appeal, it is determined that the decision refusing withdrawal of the bid was not (i) an honest exercise of discretion, but rather was arbitrary or capricious or (ii) in accordance with the Constitution of Virginia, applicable state law or regulation, or the terms or conditions of the Invitation to Bid, the sole relief shall be withdrawal of the bid.

If no bid bond was posted, a bidder refused withdrawal of a bid under the provisions of § 2.2-4330, prior to appealing, shall deliver to the public body a certified check or cash bond in the amount of the difference between the bid sought to be withdrawn and the next low bid. Such security shall be released only upon a final determination that the bidder was entitled to withdraw the bid.

The security shall be forfeited to the Commonwealth if the final decision is adverse to the appealing bidder who then fails to accept and enter into the contract or to appeal to a circuit court. In the event the bidder appeals to a circuit court and that court issues a decision adverse to the bidder, the security shall be forfeited.

1. 5 Appeal of Nonresponsibility Determination. (Code of Virginia, § 2.2-4359). A bidder found nonresponsible for a particular procurement by the purchasing agency will be notified in writing of the results of the evaluation and disclose the factual support for the determination. If requested by the bidder within five business days after receipt of the notice, the bidder shall have an opportunity to inspect any documents which relate to the determination. Within ten business days after receipt of the notice, the bidder may submit rebuttal information challenging the evaluation. Within five business days of receipt July 2021 version

of the rebuttal information, the purchasing agency shall issue its written determination of responsibility based on all information, with return receipt requested, stating the basis for the determination.

A determination of nonresponsibility will be final unless the bidder appeals the decision within ten days after receipt of the notice by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in § 2.2-4364. This shall not apply to procurements involving the prequalification of bidders and the rights of any potential bidders under such prequalification to appeal a decision that such bidders are not responsible.

If, upon appeal pursuant to § 2.2-4364 or § 2.2-4365, it is determined that the decision of the public body was not (i) an honest exercise of discretion, but rather was arbitrary or capricious or (ii) in accordance with the Constitution of Virginia, applicable state law or regulation, or the terms or conditions of the Invitation to Bid, and the award of the contract in question has not been made, the sole relief shall be a finding that the bidder is a responsible bidder for the contract in question or directed award as provided in subsection A of § 2.2-4364 or both.

If the award of the contract has been made but performance on the contract has not begun, relief shall be as set forth in §2.2-4360.

If action is brought in the appropriate circuit court challenging the determination of nonresponsibility and is found by the court to be a responsible bidder, the court may direct the public body to award the contract, forthwith, to such bidder in accordance with the requirements of Code of Virginia, §2.2-4364 and the Invitation to Bid.

1. 6 Protest of Award or Decision to Award. (Code of Virginia, § 2.2-4360). Any bidder or offeror submitting a bid or proposal in response to a solicitation may protest the award or decision to award a contract by submitting such protest in writing (to include electronic and facsimile submissions) to the head of the purchasing office which issued the solicitation no later than ten days after public notice of the award or announcement of the decision to award is made whichever occurs first. Public notice of the award or the announcement of the decision to award shall be given by the public body in the manner prescribed in the terms or conditions of the solicitation. Any potential bidder or offeror on a contract negotiated on an emergency or sole source basis who desires to protest the award or decision to award such contract shall submit such protest in the same manner no later than ten days after posting or publication of the notice of such contract as provided in paragraphs 2.8 and 2.9. The written protest must be received in the purchasing office not later than 5:00 p.m. on the tenth day. If the tenth day falls on a weekend or an official holiday, the ten-day period expires at 5:00 p.m. on the next regular workday. The protest shall include the specific basis for the protest and the relief sought. The head of the purchasing office concerned will issue a decision in writing within ten days stating the reasons for the action taken. This decision shall be final unless the bidder or offeror appeals within ten days of receipt of the written decision by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in the Code of Virginia, § 2.2-4364. If the protest of any actual or potential bidder or offeror depends in whole or in part upon information contained in public records pertaining to the procurement transaction which are subject to inspection, then the time within which the protest must be submitted shall expire ten days after those records are available for inspection by such bidder or offeror, or at such later time as provided in the Code of Virginia, § 2.2-4360. No protest shall lie for a claim that the selected bidder or offeror is not a responsible bidder or offeror. A bidder or offeror shall not challenge the validity of the terms or conditions of the Invitation for Bids or Request for Proposal. July 2021 version

If prior to an award it is determined that the decision to award is arbitrary or capricious, then the sole relief shall be a finding to that effect. The public body shall cancel the proposed award or revise it to comply with the law. If, after an award, it is determined that an award of a contract was arbitrary or capricious, then the sole relief shall be as hereinafter provided.

Where the award has been made but performance has not begun, the performance of the contract may be enjoined. Where the award has been made and performance has begun, the public body may declare the contract void upon a finding that this action is in the best interest of the public. Where a contract is declared void, the performing contractor shall be compensated for the cost of performance up to the time of such declaration. In no event shall the performing contractor be entitled to lost profits.

Where a public body, an official designated by that public body, or an appeals board determines, after a hearing held following reasonable notice to all bidders, that there is probable cause to believe that a decision to award was based on fraud or corruption or on an act in violation of Article 6 (§ 2.2-4367 et seq.), the public body, designated official or appeals board may enjoin the award of the contract to a particular bidder.

1. 7 Deleted.

1. 8 Exhaustion of Administrative Procedures. A bidder, offeror or contractor need not utilize administrative procedures meeting the standards of § 2.2-4365, if available, but if those procedures are invoked by the bidder, offeror or contractor, the procedures shall be exhausted prior to instituting legal action concerning the same procurement transaction unless the public body agrees otherwise (Code of Virginia, § 2.2-4364F).

1. 9 Effect of the Appeal on Procurement Proceedings.

a. Pending final determination of a protest or appeal, the validity of a contract awarded and accepted in good faith in accordance with Chapter 43, Title 2.2 of the Code of Virginia shall not be affected by the fact that a protest or appeal has been filed (Code of Virginia, § 2.2-4361).

b. An award need not be delayed for the period allowed a bidder or offeror to protest or appeal, but in the event of a timely protest or appeal as provided in § 2.2-4360, or the filing of a timely legal action as provided in § 2.2-4364, no further action to award the contract will be taken unless there is a written determination by the purchasing agency that award of the contract is necessary to protect the public interest or unless the bid or offer would expire (Code of Virginia, §2.2-4362). When such a written determination is made, copies shall be sent to all parties to a protest or appeal, and in the case of an appeal, to any applicable procurement appeals board.

1. 10 Time and Place of Hearings. The parties will be given at least a ten day notice of the time and place of the appeal hearing. Appeals may be heard earlier upon the consent of all parties.

1. 11 Deleted.

1. 12 Hearing Procedures. Hearings before procurement appeals boards are not trials and will not be conducted as such. The Administrative Process Act does not apply to these hearings (Code of Virginia, § July 2021 version

1. 2-4001). The hearings will be informal, and each party will be given a reasonable period of time to state their position. Any party may be represented by legal counsel at the hearing. Rules of evidence do not apply, except that the board may exclude evidence which is irrelevant or redundant and may limit testimony and argument as necessary to reasonably expedite the proceedings.

Witnesses may be called to testify, but the board does not have subpoena power, and an oath will not be administered.

The board may ask questions at any time but may not question any of the parties in closed session. The board's chairperson may limit the number of witnesses and may permit or control the discussion to the extent that the board, in its opinion, determines that the discussion will contribute to the identification and resolution of the issues.

Hearings will be open to the public, but the board shall adjourn the hearing to deliberate and reach its decision in private.

Hearings will usually proceed in the following order subject to the desires of the board:

a. The appealing party will state its reasons for appealing and the desired relief. Points of contention between the vendor and the public body will be limited to those points raised to the public body by the vendor in its letter of protest.

b. The appealing party will present its witnesses and evidence. The board and other parties will be able to ask questions of each witness.

c. Other parties may present their responses, the relief they desire, if any, and their witnesses and other evidence in the order determined by the board. Questions may be asked of their witnesses by the board or other parties to the appeal.

d. When all evidence and final arguments of the parties have been presented, the board shall deliberate in private session.

The hearings will be electronically recorded and the recordings retained for sixty days. If judicial review of the board's decision is instituted, the recording will be retained until the judicial review has been completed. Any party may provide a court reporter at its own expense. If a court reporter is used, transcripts of the hearing shall be given to the board at no expense upon its request. The board may make such a transcript a part of its record. If the board determines the transcript to be inaccurate or incomplete, it shall note for the record any inaccuracies or incomplete transcription of the hearing.

1. 13 Deleted.

1. 14 Administrative Support. The public body will furnish administrative support required including but not limited to arranging for a board hearing room, electronic recording facilities and supplies, and the preparation and mailing of hearing materials. July 2021 version

1. 15 Board's Decision. The board hearing the appeal will issue a written decision within ten business days of the hearing date except when it must await a transcript of the hearing, in which case it will issue a written decision within ten business days of receiving the transcript. The board's decision will include a brief statement of the relevant facts, as the board determined them to be true, which caused it to make its decision. This will be called the “Findings of Fact.” The board will then state its decision, giving in such detail as it considers necessary the reasons for its decision. The decision will be signed by the chairperson or designee.

1. 16 Judicial Review. Any party to a hearing before the board will be entitled to institute judicial review if such action is brought within thirty days after receipt of the board's written decision or within thirty days of attempted postal delivery of the board's written decision to the last mailing address provided to the board by the party.

The findings of fact by the board will be final and conclusive and will not be set aside by a Court unless fraudulent, arbitrary or capricious, or so grossly erroneous as to imply bad faith. No determination on an issue of law will be final if appropriate legal action is instituted in a timely manner (Code of Virginia, §

1. 2-4365).

1. 17 Alternative Dispute Resolution (ADR)

a. Alternative Dispute Resolution is designed to increase the opportunity for relatively inexpensive and expeditious resolution of contract disputes resulting in a contractual claim. If an agency’s final decision denying a contractual claim is challenged, the contractor and the agency are encouraged to resolve the dispute through the informal ADR process described below. However, participating in the ADR process does not relieve the contractor from complying with the filing deadlines for claims listed in 7.19, and does not imply that the agency’s previously-issued decision is suspended or no longer final.

b. The contractor requesting ADR shall give written notice to the agency purchasing office identifying the portions of the agency’s decision that are in dispute and requesting that ADR be used. If the agency agrees to ADR, the agency and contractor shall each appoint a representative to participate in ADR on its behalf. Each party’s representative shall be a senior manager who is not an attorney and who was not previously involved in the dispute. Each party shall furnish to the other party all non-privileged documents and information with respect to the dispute that either party believes to be appropriate and germane. The representatives may then negotiate in an effort to resolve the dispute without the need for legal counsel. The use of a facilitator to accelerate the resolution process is encouraged.

c. No obligation to negotiate or continue negotiating shall be inferred from this paragraph 9.17 or from the parties’ agreement to use ADR, and each party shall remain free to discontinue ADR at any time.

No agreement shall be deemed to arise from any communication during the ADR process, unless the agreement is reduced to writing and signed by duly-authorized representatives of both parties. Any settlement or compromise of claim must be approved by the Agency’s counsel at the Office of the Attorney General. July 2021 version

d. Any compensation and expenses paid to the facilitator shall be shared equally by the two parties. In no event shall either party be entitled to reimbursement from the other party for any other cost incurred or effort expended as a result of the ADR process. July 2021 version

APPENDIX A

DEFINITIONS

Absolute Preference: An absolute preference is one in which a state will only consider bids from resident contractors residing within that state.

Administrative Lead Time: Administrative lead time is that period of time from initiation of the requirement by the user to issuance of an award.

Affiliate: Affiliate means an individual or business that controls, is controlled by, or is under common control with another individual or business. A person controls an entity if the person owns, directly or indirectly, more than 10 percent of the voting securities of the entity. For the purposes of this definition "voting security" means a security that (i) confers upon the holder the right to vote for the election of members of the board of directors or similar governing body of the business or (ii) is convertible into, or entitles the holder to receive, upon its exercise, a security that confers such a right to vote. A general partnership interest shall be deemed to be a voting security.

Agency: For the purpose of this manual, agency means any department, authority, board, post, commission, division, institution, or office of the Commonwealth.

Agency Purchase Order (APO): An Agency Purchase Order is a form used by an agency to order goods, services and printing available on a State or term contract, or to procure goods or services from non-contract sources within its delegated purchase authority.

Alternative Dispute Resolution (ADR): any procedure used voluntarily to resolve issues in controversy without the need to resort to litigation. These procedures include, but are not limited to, mediation, fact-finding, and arbitration.

Appeal: Action taken by a bidder, offeror (actual or prospective) or by a contractor to seek a hearing before a disinterested person or panel or in an appropriate circuit court challenging a decision in accordance with Sections 2.2-4364 or 2.2-4365 of the Virginia Public Procurement Act.

Bartering: The act of exchanging one good or service for another, without the exchange of money.

Benchmark: A standard or point of reference used in measuring or judging quality, value, performance, price, etc.

Best and Final Offer (BAFO): The last offer provided by an offeror in response to a Request for Proposals and all further negotiation ceases. When the provision for receiving best and final offers is included in an RFP, offerors are given the opportunity to submit a best and final offer after negotiations have been held. After the best and final offers are submitted, no further negotiations shall be conducted with any of the offerors and the decision to award is based on rescoring of the best and final offers.

Best Value: The overall combination of quality, price, and various elements of required services that in total are optimal relative to a public body’s needs, as predetermined in a solicitation. Best value concepts may be applied when procuring goods and nonprofessional services, but not construction or professional services. The criteria, factors, and basis for the consideration of best value and the process for the consideration of best value shall be as stated in the procurement solicitation (Code of Virginia, § 2.2-4301).

Best Value Acquisition (BVA): A process used to acquire goods and nonprofessional services in which best value concepts will be applied. The best value award is based on evaluation criteria as stated in the solicitation with consideration of price of the goods and nonprofessional services that offer the greatest benefit(s) in meeting the needs of the public body.

Bid: A competitively priced offer made by an intended seller, usually in reply to an Invitation for Bids (IFB). A price offer made at a public auction. July 2021 version

Bid Bond: An insurance agreement in which a third party agrees to be liable to pay a certain amount of money in the event a selected bidder fails to accept the contract as bid.

Bidder: One who submits a competitively priced offer in response to an Invitation for Bids (IFB).

Blanket Purchase Agreement (BPA): An arrangement under which a purchaser contracts with a vendor to provide for a purchaser’s frequent, repetitive, small-order requirements for an item(s) or a service, on an as-required and over-the-counter basis. Properly prepared, such an arrangement sets a limit on the period of time it is valid and the maximum amount of money which may be spent at one time, or within a specified period, and specifically identifies those persons authorized to order or accept goods. The BPA may also contain other terms and conditions, such as the discount or the specific price list that applies to purchases made under the agreement and what items and services are included (or excluded) under the agreement.

Boiler Plate: General Terms and Conditions.

Broker: A person or agent acting as an independent manufacturer’s or distributor’s representative dealing in products or goods normally sold through the brokerage process in which there is a previously established relationship with the supplier before the bid is submitted.

Business: Business means any type of corporation, partnership, limited liability company, association, or sole proprietorship operated for profit.

Charge Card: In the context of this manual, the state-approved Small Purchase Charge Card (SPCC), used for small purchases (cardholder’s transaction limit or less) of frequent, over-the-counter, Maintenance, Repair, and Operating (MRO) items used in the daily operations of any state activity, and for placing orders up to the cardholder’s transaction limit against term contracts.

Claim: A written assertion or demand, by one of the parties to a contract, which seeks, as a contractual right, payment of money, adjustment of contract terms, or other relief, for injury, loss, or damage arising under or relating to the contract.

Collusion: A secret agreement or cooperation between two or more parties to accomplish a fraudulent, deceitful, or unlawful purpose.

Collusive Bidding: An unethical and illegal practice in which suppliers act in collusion to fix their bids in a collectively advantageous manner.

Commodity Code: A system of symbols (alpha, numeric or other) used to represent words to describe a commodity, e.g., Class 410 Furniture, Hospital - Specialized, Item 36, Incubators, Infant (41036); 904 Services, Client, Item 02, Ambulance Service (90402), to facilitate data sort capabilities of purchased goods/services for the purpose of analysis.

Competitive Bidding: The offer of firm bids by individuals or firms competing for a contract, privilege, or right to supply specified services or goods.

Competitive Negotiation: A method for purchasing goods and services, usually of a complex and technical nature whereby qualified individuals or firms are solicited by means of a Request for Proposals (RFP). Negotiations are conducted with selected offerors and the best proposal, as judged against criteria contained in the Request for Proposals, is accepted and an award issued.

Competitive Sealed Bid: A bid submitted in a sealed envelope to prevent disclosure of its contents before the deadline set for the receipt of all bids. Competitive sealed bidding shall not be used to contract for professional services.

Confirming Purchase Order: A purchase order issued after the fact by a procuring agency to a vendor for goods or services ordered orally or by some other informal means. The order should be marked “CONFIRMING ORDER. DO NOT DUPLICATE”.

Consideration: Something of value given for a promise to make the promise binding. Consideration is one of the essential elements of a contract.

Construction: Construction shall mean building, altering, repairing, improving or demolishing any structure, building or highway, and any draining, dredging, excavation, grading or similar work upon real property (Code of Virginia, § 2.2-4301). July 2021 version

Construction Management Contract: A contract in which a party is retained by the owner to coordinate and administer contracts for construction services for the benefit of the owner, and may also include, if provided in the contract, the furnishing of construction services to the owner.

Consulting Services: Advice or assistance of a purely advisory nature provided for a predetermined fee to an agency by an outside individual, firm, or organization under contract to that agency.

Consumer Price Index (CPI): The Consumer Price Index is a measure of the average change in prices over time in a fixed market basket of goods and services. Two CPIs are published: 1) the CPI for All Urban Consumers (CPI-U) which covers about 80% of the total populations and 2) the CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32% of the total population. The CPI is based upon prices of food, clothing, shelter, transportation, medical care, and other goods and services that people buy for day-to-day living.

Contract: When used as a noun in this Manual, contract refers to an agreement enforceable by law, between two or more competent parties, to do or not to do something, not prohibited by law, for a consideration. A contract is any type of written agreement or purchase order for the procurement of goods or services. A contract shall include the specifications, descriptions or scope of work, general conditions, special conditions and all other requirements contained in the solicitation together with all written modifications and the vendor’s response. As a verb, contract has its usual legal sense, signifying the making of an agreement for consideration.

Contract Administration: The management of all facets of a contract to assure the Contractor’s total performance is in accordance with the contractual commitments and that the obligations of the Contractor under the terms and conditions of the contract are fulfilled.

Contract Management: The management of the organization's contracts and contract-related activities which may include accounting, administration, auditing, grants management, law, negotiation, logistics, price-structure compensation, delegation of purchasing authority, program management, termination and other business activities.

Contract, Cost-Plus-A-Fixed-Fee: A cost-reimbursement type contract that provides for the payment of a fixed fee to the contractor.

The fixed fee, once negotiated, does not vary with the actual cost but may be adjusted as a result of any subsequent changes in the scope of work or services to be performed under the contract.

Contract, Cost-Plus-A-Percentage-Of-Cost: A form of contract which provides for a fee or profit at a specified percentage of the contractor’s actual cost of accomplishing the work.

Contract, Design-Build: A contract between a public body and another party in which the party contracting with the public body agrees to both design and build the structure, roadway or other item specified in the contract.

Contract, Fixed Price: A contract that provides for a firm unit or total price to be established at the time of order placement or contract award. The contractor bears the full risk for profit or loss.

Contract, Fixed Price, Incentive: A fixed price is agreed upon with a target cost/profit, a ceiling price, and a profit formula. Below target, the contractor and state share savings. Above ceiling, the contractor must assume all costs.

Contract, Fixed-Price with Escalation/De-escalation: A fixed price type of contract that provides for the upward and downward revision of the stated contract price upon the occurrence of certain contingencies (such as fluctuations in material costs and labor rates) specifically defined in the contract.

Contract, Requirements Type: A form of contract covering long-term requirements used when the total quantity required cannot be definitely fixed, but can be stated as an estimate or within maximum and minimum limits, with deliveries on demand. Such contracts are usually for one year or more in duration.

Contract, Service: A contract for work to be performed by an independent contractor wherein the service rendered does not consist primarily of the acquisition of equipment or materials, or the rental of equipment, materials and supplies.

Contract, Time and Material: A contract providing for the procurement of supplies or services on the basis of direct labor hours at specified fixed hourly rates (which include direct and indirect labor, overhead, and profit) and material at cost, or at some bid percentage discount from manufacturer’s catalog or list prices. July 2021 version

Contract Officer, Purchase Officer, Buyer: A State employee whose primary assignment is purchasing goods or services.

Contractor: An individual or firm that has entered into an agreement to provide goods or services to the Commonwealth.

Cooperative Procurement: A procurement by a public body with one or more other public bodies, for the purpose of combining requirements for the purchase of like goods and/or services in order to increase efficiency and/or reduce administrative expenses.

Usually one public body is lead and other public bodies can purchase from the contract.

CORPRINT: Department of Corrections, Industrial Enterprises, Printing Facilities.

Cure Notice: A notice, either oral or in writing, that informs the Contractor that he or she is in default and states what the Contractor has to do to correct the deficiency. If the notice is oral it shall be confirmed in writing.

Debarment: An action taken by the Director of the Division of Purchases and Supply (DPS), or designee (debarring officials), within the scope of their procurement authority, to exclude individuals or firms from contracting with state agencies for particular goods or nonprofessional services for specified periods of time (Code of Virginia, § 2.2-4321).

Default: Failure to comply with the terms and conditions of a contract.

Design Specification: A purchase specification setting forth the essential characteristics that an item bid must possess to be considered for award.

Disadvantaged Business: A small business concern which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or, in the case of any corporation, partnership or limited liability company or other entity, at least 51 percent of the equity ownership interest in which is owned by one or more socially and economically disadvantaged individuals and whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

Dispute: disagreement between parties to a contract over performance or other contract term requiring administrative action to resolve.

See protest, alternative dispute resolution.

Distributor: An individual or business that buys and sells products from a manufacturer. Generally, a wholesaler who may represent various manufacturers and maintains an inventory of material.

Division of Purchases and Supply (DPS): The Division of Purchases and Supply is a division of the Department of General Services.

DGS/DPS is the State's centralized purchasing agency for materials, equipment, supplies, nonprofessional service and printing.

DGS/DPS prescribes the rules and regulations for the purchase of materials, supplies, equipment, nonprofessional services, and printing (Code of Virginia, § 2.2-1109 et al).

Drug-free Workplace: A site for the performance of work done in connection with a specific contract awarded to a contractor in accordance with the VPPA, the employees of whom are prohibited from engaging in the unlawful manufacture, sale, distribution, dispensation, possession or use of any controlled substance or marijuana during the performance of a contract.

Emergency: An occurrence of a serious and urgent nature that demands immediate action.

Employment Services Organization (ESO): an organization that provides community-based employment services to individuals with disabilities that is an approved Commission on the Accreditation of Rehabilitation Facilities (CARF) accredited vendor of the Department for Aging and Rehabilitative Services.

Ethics: Pertaining to or relative to moral action, conduct, motive or character; as ethical emotion; professionally right or befitting; conforming to professional standards of conduct. The Virginia Public Procurement Act (VPPA) covers “Ethics in Public Contracting” (Code of Virginia, §§ 2.2-4367 through 2.2-4377).

Evaluation of Bids: The process of examining a bid after opening to determine the bidder’s responsibility, responsiveness to requirements, and other characteristics of the bid relating to selection for award. July 2021 version

E-Verify Program: The electronic verification of work authorization program to verify the work authorization status of newly hired employees under the Immigration Reform and Control Act of 1986 (P.L. 99-603).

Expedite: The act of contacting a supplier or carrier with the goal of speeding up the delivery date (see also Follow-Up).

Fair Market Value: The price that is agreed upon by buyers and sellers in the open market who are familiar with market conditions and not under any compulsion to buy or sell, provided the price is substantiated by specific data. There may be more than one way to ascertain fair market value, including determining the lowest price at which private, commercial sources have recently sold or offered substantially similar goods/services to the purchasing agency or to other public or private entities.

Follow-Up: An activity that monitors the status of a purchase to ensure that specified delivery schedules are met.

Force Majeure: An irresistible or extraordinary force, natural event, or effect that cannot be reasonably anticipated or foreseen, prevented, or controlled. An act of God.

General Terms and Conditions: Standard clauses and requirements incorporated into all solicitations (IFB/RFP) and resulting contracts which are derived from laws, or administrative procedures of the government agency. (Also called “Boiler Plate.”)

Goods: Material, equipment, supplies, printing, and automated data processing hardware and software (Code of Virginia, § 2.2-4301).

Grant (or Grant-in-Aid): For the purposes of this manual, these are fund transfers made by one party to another (e.g., Federal to state or local government) for the procurement of goods and/or services, that may be undertaken for the purpose of a public interest, benefit, or undertaking, as specified under the terms of the agency granting the use of funds.

Hazardous Material: A substance or material which has been determined by the U. S. Secretary of Transportation to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce.

Informality: A minor defect or variation of the bid or proposal from the exact requirements of the Invitation for Bids or the Request for Proposals, which does not affect the price, quality, quantity, or delivery schedule for the goods, services or construction being procured (Code of Virginia, § 2.2-4301).

Information Technology: telecommunications, automated data processing, databases, the Internet, management information systems, and related information, equipment, goods, and services.

Inspection: Examination and testing of goods and services to determine whether the goods and services furnished conform to contract requirements.

Invitation for Bids (IFB): A document, containing or incorporating by reference the specifications or scope of work and all contractual terms and conditions, that is used to solicit written bids for a specific requirement for goods or nonprofessional services. This type of solicitation is also referred to as an Invitation to Bid.

Joint Procurement: A procurement by a public body with one or more other public bodies, for the purpose of combining requirements for the purchase of like goods and/or services in order to increase efficiency and/or reduce administrative expenses. All authorized parties are involved in the procurement process and only those parties can participate in jointly purchasing from the contract. No other public bodies can purchase from the contracts as joint purchasers.

Late Bid or Proposal: A bid or proposal which is received at the place designated in the Invitation for Bids or Request for Proposals after the deadline established by the solicitation.

Latent Defect: A deficiency or imperfection that impairs worth or utility that cannot be readily detected from visual examination of a product. Examples would be the use of non-specification materials in manufacture, or missing internal parts such as a gasket, gear, or electrical circuit, etc.

Logistics: The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. July 2021 version

Life-Cycle Costing: A cost-analysis tool which incorporates not only the purchase price of a piece of equipment, but all operating and related costs over the life of the item, including maintenance, down time, energy costs, etc., as well as salvage value.

Liquidated Damages: A sum stated in a contract to be paid as ascertained damages for failure to perform in accordance with the contract. The damage figure stipulated must be a reasonable estimate of the probable loss to the agency, and not calculated simply to impose a penalty on the contractor.

Method of Payment: Specifies when the payment will be made, e.g. upon delivery, monthly, quarterly, completion of project, etc.

Also specifies the details and location of where invoices are to be submitted, e.g. by the 10th of the month following the month services were rendered, upon shipment, completion of project, etc. Additionally, it should also indicate the anticipated type of payment, e.g.

SPCC, check, EDI, etc.

Micro Business: "Micro business” means a business that has been designated in accordance with Regulations governing Certification by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Designation requirements can be found at www.sbsd.virginia.gov.

Minority Individual: “Minority” means an individual who is a citizen of the Unites States or a non-citizen who is in full compliance with United States immigration law and who satisfies one or more of the following definitions:

“African American” means a person having origins in any of the original peoples of Africa and who is regarded as such by the community of which this person claims to be a part.

“Asian American” means a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands, including but not limited to Japan, China, Vietnam, Samoa, Laos, Cambodia, Taiwan, Northern Marinas, the Philippines, a U.S. territory of the Pacific, India, Pakistan, Bangladesh, or Sri Lanka and who is regarded as such by the community of which this person claims to be part.

“Hispanic American” means a person having origins in any of the Spanish-speaking peoples of Mexico, South or Central America, or the Caribbean Islands or other Spanish or Portuguese cultures and who is regarded as such by the community of which this person claims to be a part.

“Native American” means a person having origins in any of the original peoples of North America and who is regarded as such by the community of which this person claims to be a part or who is recognized by a tribal organization.

Minority-Owned Business: "Minority-owned business” means a business that has been certified in accordance with Regulations governing Certification by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification requirements can be found at www.sbsd.virginia.gov.

Multiple Awards: The award of multiple contracts for goods or services, meeting the same specifications, resulting from one solicitation. When a Multiple Award clause is included in an Invitation for Bids/Request for Proposals, awards may be made to more than one bidder/offeror (Code of Virginia, § 2.2-4301). This is appropriate in situations where the award of a single contract would be impractical and awards are limited to the least number of suppliers necessary for a workable contract program.

Must, Shall: As used in specifications or requirements of a Request for Proposals (RFP), the terms "must" and "shall" identify requirements whose absence will have a major negative impact on the suitability of the proposed solution. Items labeled as "should" or “may” are highly desirable, although their absence will not have a large impact and would be useful, but are not necessary.

Negotiation: A bargaining process between two or more parties, each with its own viewpoints and objectives, seeking to reach an agreement, or settlement of, a matter of common concern, on terms that are mutually beneficial and satisfactory to both.

Non-Competitive Negotiation: The process of arriving at an agreement through discussion and compromise, when only one source is practicably available.

Nonprofessional Services: Any services not specifically identified as professional services in the definition of professional services (Code of Virginia, § 2.2-4301). July 2021 version

Notice of Award: A Notice of Award serves as the public notice of award for a competitive bid or competitive negotiation.

Notice of Intent to Award: The Notice of Intent to Award is a written notice, or bid tabulation sheet publicly displayed, prior to award, that shows the selection of a vendor for the award of a specific contract or purchase order. This decision may be changed prior to the actual award of a contract or purchase order.

Offeror: A person who makes an offer in response to a Request for Proposals.

Official Responsibility: As defined in § 2.2-4368 as administrative or operating authority, whether intermediate or final, to initiate, approve, disapprove or otherwise affect a procurement transaction, or any claim resulting therefrom.

Order/Ship Time (OST): Order/Ship Time is the time after award required by suppliers to fill an order and ship by designated means (truck, rail, or air) to the delivery point.

Payment Bond, For Labor and Material: A bond required of a contractor to assure fulfillment of the contractor’s obligation to pay all persons supplying labor or materials in the performance of the work provided for in the contract.

Performance Bond: A contract of guarantee executed in the full sum of the contract amount subsequent to award by a successful bidder to protect the government from loss due to his/her inability to complete the contract in accordance with its terms and conditions.

Performance Specification: A specification setting forth performance requirements that have been determined to be necessary for the item involved to perform and last as required.

Potential Bidder or Offeror: A person who, at the time an agency awards or proposes to award a contract, is engaged in the sale or lease of goods, or the sale of services, insurance or construction of the type to be procured under such contract, and who at such time is eligible and qualified in all respects to perform that contract, and who would have been eligible and qualified to submit a bid or proposal had the contract been procured through competitive sealed bidding or competitive negotiation (Code of Virginia, § 2.2-4301).

Pre-bid or Pre-proposal Conference: Meeting held with prospective bidders or offerors prior to submission of bids or proposals, to review, discuss, and clarify technical considerations, specifications, and standards relative to the proposed procurement.

Prequalification: A procedure to prequalify products or vendors and limit consideration of bids or proposals to only those products or vendors which have been prequalified.

Printing: The process or business of producing printed material by means of a printing press, copier or similar means or all copies of a publication produced by such means.

Procurement: The procedures for obtaining goods or services, including all activities from the planning steps and preparation and processing of a requisition, through receipt and acceptance of delivery and processing of a final invoice for payment.

Professional Organization: Generally defined as a group of professional individuals in a like occupation charged with educating, certifying or lobbying for its members.

Professional Services: Shall mean work performed by an independent contractor within the scope of the practice of accounting, actuarial services, architecture, land surveying, landscape architecture, dentistry, law, medicine, optometry, pharmacy, or professional engineering. “Professional Services” shall also include services of an economist procured by the State Corporation Commission (Code of Virginia, § 2.2-4301).

Proposal: An offer made by one party to another as a basis for negotiations, prior to the creation of a contract.

Proprietary Specification: A specification that restricts the acceptable product(s) or service(s) to that of one or more manufacturer(s) or vendor(s). A common example would be the use of a “brand name” specification that would exclude consideration of proposed “equals.” Although all sole source specifications are proprietary, all proprietary specifications are not sole source. Proprietary items may be available from several distributors through competitive bidding. July 2021 version

Protest: A written complaint about an administrative action or decision brought by a bidder or offeror to the appropriate administrative section with the intention of receiving a remedial result.

Public Bid Opening: The process of opening and reading bids at the time and place specified in the Invitation for Bids and in the presence of anyone who wishes to attend.

Public Body: In the context of this manual, any state-funded agency that is required to follow the provisions of the Code of Virginia and the Virginia Public Procurement Act (VPPA), unless exempted, in the course of their procurement activities.

Public Telecommunications Services: Public telecommunications are non-commercial educational or cultural radio and television programs and related instructional or informational material that may be transmitted by means of electronic communications (see also “Telecommunications Services”).

Purchase Order: A document used by DGS/DPS to execute a purchase transaction with a vendor. It serves as notice to a vendor that an award has been made and that performance can be initiated under the terms and conditions of the contract.

Purchasing Agency: A state agency or institution purchasing goods or services.

Qualified Contractors List (QCL): A list of contractors whose capability to provide a service has been evaluated and approved based on written prequalification procedures.

Qualified Products List (QPL): A list of products that have been tested and approved based on written prequalification procedures.

Regular Dealer: A person or firm that owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business.

Request for Information (RFI): An informal document issued when an agency is not aware of the products available in the market which may satisfy its requirements. The use of an RFI does not require a purchase requisition, however a RFI may result in the development of a requisition, or the issuance of an IFB or RFP after an agency determines the types of products that are available which will satisfy its requirements. An RFI cannot be made into an agreement.

Request for Proposals (RFP): All documents, whether attached or incorporated by reference, utilized for soliciting proposals; the RFP procedure requires negotiation with offerors (to include prices) as distinguished from competitive bidding when using an Invitation for Bids.

Responsible Bidder or Offeror: A person or firm who has the capability, in all respects, to perform fully the contract requirements and the moral and business integrity and reliability which will assure good faith performance, and who has been prequalified, if required (Code of Virginia, § 2.2-4301).

Responsive Bidder: A person or firm who has submitted a bid which conforms in all material respects to the Invitation for Bids (Code of Virginia, § 2.2-4301).

Restocking Charge: Charges incurred by a purchasing agency for any material goods that are returned to a vendor or seller and are associated with the normal cost and expense that must be incurred by the vendor for accepting the return of an item to inventory (see section 10.8).

Reverse auctioning: Means a procurement method wherein bidders are invited to bid on specified goods or nonprofessional services through real-time electronic bidding, with the award being made to the lowest responsive and responsible bidder. During the bidding process, bidders' prices are revealed and bidders shall have the opportunity to modify their bid prices for the duration of the time period established for bid opening. The purchase of goods or nonprofessional services, but not construction or professional services, may be made by reverse auctioning.

Sealed Bid: A bid which has been submitted in a sealed envelope to prevent its contents from being revealed or known before the deadline for the submission and opening of all bids. July 2021 version

Services: Services are any activities performed by an independent contractor wherein the service rendered does not consist primarily of acquisition of equipment or materials, or the rental of equipment, materials and supplies (Code of Virginia, § 2.2-4301).

Service Disabled Veteran Owned Business: means a business that is at least 51 percent owned by one or more service disabled veterans or, in the case of a corporation, partnership, or limited liability company or other entity, at least 51 percent of the equity ownership interest in the corporation, partnership, or limited liability company or other entity is owned by one or more individuals who are service disabled veterans and both the management and daily business operations are controlled by one or more individuals who are service disabled veterans.

Service Disabled Veteran Owned Small Business (SDVOSB): Means a DSBSD-Certified Small Business owned by a DVS-Certified Service Disabled Veteran, when they have also obtained Service Disabled Veteran-owned “status” by the DSBSD in the SWaM vendor database. This is not a separate DSBSD certification, but rather a designation of those DSBSD-certified Small Business that are owned by DVS-Certified Service Disabled Veterans. Veterans wishing to apply for service disabled status must first seek eligibility certification from the Dept. of Veteran Services. https://www.dvs.virginia.gov/benefits/virginia-swam-program-sdvosb-designation/

Set-asides: Reserving a procurement transaction exclusively for a specific group. The purpose of Small business set-asides is to award certain contracts exclusively to small businesses.

Shall, Must: As used in specifications or requirements of a Request for Proposals (RFP), the terms "must" and "shall" identify requirements whose absence will have a major negative impact on the suitability of the proposed solution. Items labeled as "should" or “may” are highly desirable, although their absence will not have a large impact and would be useful, but are not necessary.

Should, May: As used in a Request for Proposals (RFPs), the terms "should" or “may” are highly desirable, although their absence will not have a large impact and would be useful, but are not necessary.

Single Source: A single response to a competitive solicitation wherein competition was available but only one response was received (see paragraph 2.4i).

Small Business: "Small business” means a business that has been certified in accordance with Regulations governing Certification by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification requirements can be found at www.sbsd.virginia.gov.

Small Business Subcontracting Plan: A completed form in which bidders or offerors provide their: 1) DSBSD-certified small business certification status, or 2) small business utilization plan in response to a specific solicitation.

Software: All applications software, whether packaged or requiring development, and all systems software such as assemblers, compilers, CPU performance measurement systems, database management systems, file back-up and recovery, job accounting, operating systems, programming aids and development systems and soft-merge utilities.

Sole Source: A product or service which is practicably available only from one source.

Solicitation: An Invitation for Bids (IFB), a Request for Proposals (RFP), Quick Quote, Faxback Request, telephone calls, or any other document issued by the state to obtain bids or proposals for the purpose of entering into a contract.

Special Terms and Conditions: Special clauses pertaining to a specific procurement which may supplement or in some cases supersede one or more general terms and conditions, e.g., Award Clause, Extension of Contract.

Specification: A description of the technical requirements for a material, product, or service that includes the criteria for determining whether these requirements are met. A specification may describe the performance parameters which a supplier has to meet, or it may provide a complete design disclosure of the work or job to be done. Specifications for service contracts normally take the form of a statement of work. July 2021 version

Sponsorship: Any monetary or non-monetary benefit exceeding nominal value and received by a Commonwealth public body from a non-Commonwealth entity not excluding funding from vendors in support of conferences or other events.

Spot Purchase: A one-time purchase made in the open market. If it is under the small purchase threshold, it will be made in accordance with the applicable small purchase procedures. If it is over the small purchase threshold, it will be made by competitive sealed bidding or by an exception thereto authorized by law.

Subcontractor: Subcontractor means any entity that has a contract to supply labor or materials to the contractor to whom the contract was awarded or to any subcontractor in the performance of the work provided for in such contract.

Surplus Property: Property which is in excess of the needs of an agency and which is not required for its foreseeable need. The property may be used or new, but possess some usefulness for the purpose for which it was intended or for some other purpose. It includes scrap, which is material that is damaged, defective, or deteriorated to the extent that it has no value except for its basic material content. Surplus Property must be disposed of in accordance with Code of Virginia, § 2.2-1124.

SWaM: The acronym SWaM, includes small businesses, women-owned businesses and minority-owned businesses that have been certified in accordance with Regulations governing Certification by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification requirements can be found at www.sbsd.virginia.gov. Refer to individual definitions contained in this Appendix.

Technical Proposal: An unpriced proposal which sets forth in detail that which a vendor proposes to furnish in response to a solicitation.

Technical Specifications: Specifications that establish the material and performance requirements of goods and services.

Telecommunications Equipment: Defined as, but not limited to: channel service units, data compression units, line drivers, bridges, routers, and Asynchronous Transfer Mode switches (ATM), multiplexors and modems. Also, private branch exchanges (PBX), Integrated Services Digital Network (ISDN) terminal equipment, voice mail units, automatic call distribution (ACD), voice processing units and key systems. Video communications products such as: coders, multi-point conferencing units and inverse multiplexors.

Telecommunications Services: These services include, but are not limited to; data communication services, such as point-to-point and multipoint circuits, Internet, Frame Relay SMDS, ATM, and dial up lines, and voice communications services such as Centrex, business/private lines and WATS lines including 800 services, tie and access lines, long distance services, voice mail, pay phones, wireless communications and cellular services (see also “Public Telecommunications Services”).

Term Contracting: A technique by which a source of supply is established for a specific period of time. Term contracts are established based on indefinite quantities to be ordered “as needed,” although such contracts can specify definite quantities with deliveries extended over the contract period. Also see Contract, Requirements Type.

Termination For Convenience: The termination by a Commonwealth purchasing office, at its discretion, of the performance of work in whole or in part and makes settlement of the contractor’s claims in accordance with appropriate policy and procedures.

Termination For Default: Action taken by a purchasing office to order a contractor to cease work under the contract, in whole or in part, because of the contractor’s failure to perform in accordance with the contract’s terms and conditions.

Total Value: The total of all considerations (monetary and non-monetary) from all parties (public body, contractors and any third parties) for the initial period of the contract plus any possible renewal periods. If the total value is up to and including $100,000, then the small purchase procedures shall apply. If the total value is over $100,000, a decision must be made to use competitive sealed bidding or competitive negotiations. Also see emergency and sole source procurements if applicable.

Unsealed Bid: An unsealed written offer conveyed by U. S. Mail, commercial courier service, facsimile, e-mail, Quick Quote, or other means. The bids are normally opened and recorded as received.

Used Equipment: Equipment which has been previously owned and used and is offered “where is” “as is.” It does not include demonstration, factory rebuilt or remanufactured equipment marketed through normal distribution outlets. July 2021 version

Value Analysis: A systematic and objective evaluation of the value of a good or service, focusing on an analysis of function relative to the cost of manufacturing or providing the item or service. Value analysis provides insight into the inherent worth of the final good or service, possibly altering specification and quality requirements that could reduce costs without impairing functional suitability.

Vendor: One who sells goods or services.

Virginia-Grown Food Products: Farm, agricultural, and aquaculture food products grown, harvested, raised or caught in Virginia that are identified by, and meet all the quality standards of, the Virginia Department of Agriculture and Consumer Services.

Virginia Public Procurement Act: Chapter 43 of Title 2.2, Code of Virginia, which enunciates the public policies pertaining to governmental procurement from nongovernmental sources.

Will: As used in an Invitation for Bids or Request for Proposals, the word “will” is normally used to convey an obligation incurred by the agency or owner.

Women-Owned Business: "Women-owned business” means a business that has been certified in accordance with Regulations governing Certification by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification requirements can be found at https://www.sbsd.virginia.gov.

Written; writing; writings; in writing: The words “written,” “writing,” “writings,” and “in writing” shall include any representation of words, letters, symbols, numbers, or figures, whether (i) printed or inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in a perceivable form and whether an electronic signature authorized by Chapter 42.1 (§et seq.) of Title 59.1 is or is not affixed (Code of Virginia, § 1-13.32). July 2021 version

APPENDIX B Section I Terms and Conditions & Instructions To Vendors These terms and conditions are incorporated by reference in the eVA purchase order. These terms and conditions apply to purchases between the agency or institution and the contractor, unless otherwise modified in writing on the face of the PO.

1. This contractual agreement is subject to the terms and conditions of the Commonwealth of Virginia Vendors Manual and any revisions thereto, as published by the Department of General Services, Division of Purchases and Supply.

1. Goods or Services delivered must be strictly in accordance with bid referred to and shall not deviate in any way from terms, conditions or specifications of the bid. Equipment, materials and/or supplies delivered on this order shall be subject to inspection and test upon receipt. If rejected, same shall remain the property of the vendor.

1. Purchase Order number shall be shown by vendor on all related invoices, delivery memoranda, bills of lading, packages and/or correspondence.

1. A separate invoice for this purchase order or for each shipment thereon shall be rendered immediately following shipment. All copies shall be forwarded direct to agency at invoice address shown.

1. State sales and use tax certificate of exemption, form st-12 will be issued upon request, if you do not have same on file.

1. Deliveries against this order must be free of excise or transportation taxes, excise tax exemption registration no. 54-73-0076k may be used when required.

1. In the absence of other contractual terms, payment shall be due 30 days after receipt of proper invoice, or material/service, whichever is the later.

1. If discount for prompt payment is allowed, the discount period will begin on the date of receipt of proper invoice, or material, whichever is the later.

1. In case of default by the successful bidder, or failure to deliver the supplies or services ordered by the time specified, the Commonwealth after due notice (oral or in writing), may procure them from other sources and hold vendor responsible for any excess cost occasioned thereby.

10. No substitution, change or deviation shall be made without written authority from the Commonwealth by Purchase Order Change.

11. Vendors and contractors providing goods to the Commonwealth of Virginia under this order herewith assure the Commonwealth that they are conforming to the provision of the Civil Rights Act of 1964 as amended, as well as the Virginia Fair Employment Contracting Act of 1975 as amended, where applicable.

12. This Purchase Order/Contract shall be governed in all respects, whether as to validity, construction, capacity, performance or otherwise by the laws of the Commonwealth of Virginia.

13. All prices unless otherwise specified are net F.O.B. Destination with transportation charges prepaid.

14. If shipment is made by freight or express and charges added to invoice, the original bill of lading properly receipted shall accompany invoice. All charges must be prepaid.

15. Vendors and contractors performing work on Commonwealth owned or leased facilities or property shall, during the entire term of the contract, maintain at a minimum, the insurance coverages as listed in the Vendors Manual and any revisions thereto.

16. eVA Transaction Fee: eVA transaction fee invoices are issued by the Commonwealth of Virginia Department of General Services. A copy of the eVA transaction fee schedule is available on the eVA website, www.eva.virginia.gov.

• July 2010 July 2021 version

REQUIRED GENERAL TERMS AND CONDITIONS

GOODS AND NONPROFESSIONAL SERVICES

Section II

A. VENDORS MANUAL

B. APPLICABLE LAWS AND COURTS

C. ANTI-DISCRIMINATION

D. ETHICS IN PUBLIC CONTRACTING

E. IMMIGRATION REFORM AND CONTROL ACT OF 1986

F. DEBARMENT STATUS

G. ANTITRUST

H. MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS

I. CLARIFICATION OF TERMS

J. PAYMENT

K. PRECEDENCE OF TERMS

L. QUALIFICATIONS OF BIDDERS OR OFFERORS

M. TESTING AND INSPECTION

N. ASSIGNMENT OF CONTRACT

O. CHANGES TO THE CONTRACT

P. DEFAULT

Q. TAXES

R. USE OF BRAND NAMES

S. TRANSPORTATION AND PACKAGING

T. INSURANCE

U. ANNOUNCEMENT OF AWARD

V. DRUG-FREE WORKPLACE W. NONDISCRIMINATION OF CONTRACTORS X. eVA BUSINESS-TO-GOVERNMENT VENDOR REGISTRATION

Y. AVAILABILITY OF FUNDS

Z. SET-ASIDES IN ACCORANCE WITH THE SMALL BUSINESS ENHANCEMENT AWARD PRIORITY

AA. BID PRICE CURRENCY

BB. AUTHORIZATION TO CONDUCT BUSINESS IN THE COMMONWEALTH

CC. CIVILITY IN STATE WORKPLACES

These General Terms and Conditions are required for use in written solicitations issued by state agencies for procurements that are subject to this manual unless changed, deleted or revised by the legal advisor to the agency.

For service contracts clauses, Q, R, and S are normally not applicable and may be omitted. For goods contracts, clause T may be omitted.

A. VENDORS MANUAL: This solicitation is subject to the provisions of the Commonwealth of Virginia Vendors Manual and any changes or revisions thereto, which are hereby incorporated into this contract in their entirety. The process for filing a complaint about this solicitation is in section 7.13 of the Vendors Manual. (Note section 7.13 does not apply to protests of awards or formal contractual claims.) The procedure for filing contractual claims is in section 7.19 of the Vendors Manual. A copy of the manual is normally July 2021 version

available for review at the purchasing office and is accessible on the Internet at www.eva.virginia.gov under “I Sell To Virginia”.

B. APPLICABLE LAWS AND COURTS: This solicitation and any resulting contract shall be governed in all respects by the laws of the Commonwealth of Virginia, without regard to its choice of law provisions, and any litigation with respect thereto shall be brought in the circuit courts of the Commonwealth. The agency and the contractor are encouraged to resolve any issues in controversy arising from the award of the contract or any contractual dispute using Alternative Dispute Resolution (ADR) procedures (Code of Virginia, § 2.2-4366). ADR procedures are described in Chapter 9 of the Vendors Manual. The contractor shall comply with all applicable federal, state and local laws, rules and regulations.

C. ANTI-DISCRIMINATION: By submitting their (bids/proposals), (bidders/offerors) certify to the Commonwealth that they will conform to the provisions of the Federal Civil Rights Act of 1964, as amended, as well as the Virginia Fair Employment Contracting Act of 1975, as amended, where applicable, the Virginians With Disabilities Act, the Americans With Disabilities Act and § 2.2-4311 of the Virginia Public Procurement Act (VPPA). If the award is made to a faith-based organization, the organization shall not discriminate against any recipient of goods, services, or disbursements made pursuant to the contract on the basis of the recipient's religion, religious belief, refusal to participate in a religious practice, or on the basis of race, age, color, gender, sexual orientation, gender identity or national origin and shall be subject to the same rules as other organizations that contract with public bodies to account for the use of the funds provided; however, if the faith-based organization segregates public funds into separate accounts, only the accounts and programs funded with public funds shall be subject to audit by the public body. (Code of Virginia, § 2.2-

4343.1E).

In every contract over $10,000 the provisions in 1. and 2. below apply:

1. During the performance of this contract, the contractor agrees as follows:

a. The contractor will not discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

b. The contractor, in all solicitations or advertisements for employees placed by or on behalf of the contractor, will state that such contractor is an equal opportunity employer.

c. Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section.

d. If the contractor employs more than five employees, the contractor shall (i) provide annual training on the contractor's sexual harassment policy to all supervisors and employees providing services in the Commonwealth, except such supervisors or employees that are required to complete sexual harassment training provided by the Department of Human Resource Management, and (ii) post the contractor's sexual harassment policy in (a) a conspicuous public place in each building located in July 2021 version

the Commonwealth that the contractor owns or leases for business purposes and (b) the contractor's employee handbook.

e. The requirements of these provisions 1. and 2. are a material part of the contract. If the Contractor violates one of these provisions, the Commonwealth may terminate the affected part of this contract for breach, or at its option, the whole contract. Violation of one of these provisions may also result in debarment from State contracting regardless of whether the specific contract is terminated.

f. In accordance with Executive Order 61 (2017), a prohibition on discrimination by the contractor, in its employment practices, subcontracting practices, and delivery of goods or services, on the basis of race, sex, color, national origin, religion, sexual orientation, gender identity, age, political affiliation, disability, or veteran status, is hereby incorporated in this contract.

1. The contractor will include the provisions of 1. above in every subcontract or purchase order over $10,000, so that the provisions will be binding upon each subcontractor or vendor.

D. ETHICS IN PUBLIC CONTRACTING: By submitting their (bids/proposals), (bidders/offerors) certify that their (bids/proposals) are made without collusion or fraud and that they have not offered or received any kickbacks or inducements from any other (bidder/offeror), supplier, manufacturer or subcontractor in connection with their (bid/proposal), and that they have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value was exchanged.

E. IMMIGRATION REFORM AND CONTROL ACT OF 1986: Applicable for all contracts over $10,000: By entering into a written contract with the Commonwealth of Virginia, the Contractor certifies that the Contractor does not, and shall not during the performance of the contract for goods and services in the Commonwealth, knowingly employ an unauthorized alien as defined in the federal Immigration Reform and Control Act of 1986.

F. DEBARMENT STATUS: By participating in this procurement, the vendor certifies that they are not currently debarred by the Commonwealth of Virginia from submitting a response for the type of goods and/or services covered by this solicitation. Vendor further certifies that they are not debarred from filling any order or accepting any resulting order, or that they are an agent of any person or entity that is currently debarred by the Commonwealth of Virginia.

If a vendor is created or used for the purpose of circumventing a debarment decision against another vendor, the non-debarred vendor will be debarred for the same time period as the debarred vendor.

G. ANTITRUST: By entering into a contract, the contractor conveys, sells, assigns, and transfers to the Commonwealth of Virginia all rights, title and interest in and to all causes of action it may now have or hereafter acquire under the antitrust laws of the United States and the Commonwealth of Virginia, relating to the particular goods or services purchased or acquired by the Commonwealth of Virginia under said contract.

H. MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS FOR IFBs AND RFPs: July 2021 version

1. (For Invitation For Bids): Failure to submit a bid on the official state form provided for that purpose shall be a cause for rejection of the bid. Modification of or additions to any portion of the Invitation for Bids may be cause for rejection of the bid; however, the Commonwealth reserves the right to decide, on a case by case basis, in its sole discretion, whether to reject such a bid as nonresponsive. As a precondition to its acceptance, the Commonwealth may, in its sole discretion, request that the bidder withdraw or modify nonresponsive portions of a bid which do not affect quality, quantity, price, or delivery. No modification of or addition to the provisions of the contract shall be effective unless reduced to writing and signed by the parties.

1. (For Request For Proposals): Failure to submit a proposal on the official state form provided for that purpose may be a cause for rejection of the proposal. Modification of or additions to the General Terms and Conditions of the solicitation may be cause for rejection of the proposal; however, the Commonwealth reserves the right to decide, on a case by case basis, in its sole discretion, whether to reject such a proposal.

I. CLARIFICATION OF TERMS: If any prospective (bidder/offeror) has questions about the specifications or other solicitation documents, the prospective (bidder/offeror) should contact the buyer whose name appears on the face of the solicitation no later than five working days before the due date. Any revisions to the solicitation will be made only by addendum issued by the buyer.

J. PAYMENT:

1. To Prime Contractor:

a. Invoices for items ordered, delivered and accepted shall be submitted by the contractor directly to the payment address shown on the purchase order/contract. All invoices shall show the state contract number and/or purchase order number; social security number (for individual contractors) or the federal employer identification number (for proprietorships, partnerships, and corporations).

b. Any payment terms requiring payment in less than 30 days will be regarded as requiring payment 30 days after invoice or delivery, whichever occurs last. This shall not affect offers of discounts for payment in less than 30 days, however.

c. All goods or services provided under this contract or purchase order, that are to be paid for with public funds, shall be billed by the contractor at the contract price, regardless of which public agency is being billed.

d. The following shall be deemed to be the date of payment: the date of postmark in all cases where payment is made by mail, or when offset proceedings have been instituted as authorized under the Virginia Debt Collection Act.

e. Unreasonable Charges. Under certain emergency procurements and for most time and material purchases, final job costs cannot be accurately determined at the time orders are placed. In such cases, contractors should be put on notice that final payment in full is contingent on a determination July 2021 version

of reasonableness with respect to all invoiced charges. Charges which appear to be unreasonable will be resolved in accordance with Code of Virginia, § 2.2-4363 and -4364. Upon determining that invoiced charges are not reasonable, the Commonwealth shall notify the contractor of defects or improprieties in invoices within fifteen (15) days as required in Code of Virginia, § 2.2-4351.,. The provisions of this section do not relieve an agency of its prompt payment obligations with respect to those charges which are not in dispute (Code of Virginia, § 2.2-4363).

2. To Subcontractors:

a. Within seven (7) days of the contractor’s receipt of payment from the Commonwealth, a contractor awarded a contract under this solicitation is hereby obligated:

(1) To pay the subcontractor(s) for the proportionate share of the payment received for work performed by the subcontractor(s) under the contract; or

(2) To notify the agency and the subcontractor(s), in writing, of the contractor’s intention to withhold payment and the reason.

b. The contractor is obligated to pay the subcontractor(s) interest at the rate of one percent per month (unless otherwise provided under the terms of the contract) on all amounts owed by the contractor that remain unpaid seven (7) days following receipt of payment from the Commonwealth, except for amounts withheld as stated in (2) above. The date of mailing of any payment by U. S. Mail is deemed to be payment to the addressee. These provisions apply to each sub-tier contractor performing under the primary contract. A contractor’s obligation to pay an interest charge to a subcontractor may not be construed to be an obligation of the Commonwealth.

1. Each prime contractor who wins an award in which provision of a SWaM procurement plan is a condition to the award, shall deliver to the contracting agency or institution, on or before request for final payment, evidence and certification of compliance (subject only to insubstantial shortfalls and to shortfalls arising from subcontractor default) with the SWaM procurement plan. Final payment under the contract in question may be withheld until such certification is delivered and, if necessary, confirmed by the agency or institution, or other appropriate penalties may be assessed in lieu of withholding such payment.

1. The Commonwealth of Virginia encourages contractors and subcontractors to accept electronic and credit card payments.

K. PRECEDENCE OF TERMS: The following General Terms and Conditions VENDORS MANUAL,

APPLICABLE LAWS AND COURTS, ANTI-DISCRIMINATION, ETHICS IN PUBLIC

CONTRACTING, IMMIGRATION REFORM AND CONTROL ACT OF 1986, DEBARMENT STATUS, ANTITRUST, MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS, CLARIFICATION OF TERMS, PAYMENT shall apply in all instances. In the event there is a conflict between any of the other General Terms and Conditions and any Special Terms and Conditions in this solicitation, the Special Terms and Conditions shall apply. July 2021 version

L. QUALIFICATIONS OF (BIDDERS/OFFERORS): The Commonwealth may make such reasonable investigations as deemed proper and necessary to determine the ability of the (bidder/offeror) to perform the services/furnish the goods and the (bidder/offeror) shall furnish to the Commonwealth all such information and data for this purpose as may be requested. The Commonwealth reserves the right to inspect (bidder’s/offeror’s) physical facilities prior to award to satisfy questions regarding the (bidder’s/offeror’s) capabilities. The Commonwealth further reserves the right to reject any (bid/proposal) if the evidence submitted by, or investigations of, such (bidder/offeror) fails to satisfy the Commonwealth that such (bidder/offeror) is properly qualified to carry out the obligations of the contract and to provide the services and/or furnish the goods contemplated therein.

M. TESTING AND INSPECTION: The Commonwealth reserves the right to conduct any test/inspection it may deem advisable to assure goods and services conform to the specifications.

N. ASSIGNMENT OF CONTRACT: A contract shall not be assignable by the contractor in whole or in part without the written consent of the Commonwealth.

O. CHANGES TO THE CONTRACT: Changes can be made to the contract in any of the following ways:

1. The parties may agree in writing to modify the terms, conditions, or scope of the contract. Any additional goods or services to be provided shall be of a sort that is ancillary to the contract goods or services, or within the same broad product or service categories as were included in the contract award. Any increase or decrease in the price of the contract resulting from such modification shall be agreed to by the parties as a part of their written agreement to modify the scope of the contract.

1. The Purchasing Agency may order changes within the general scope of the contract at any time by written notice to the contractor. Changes within the scope of the contract include, but are not limited to, things such as services to be performed, the method of packing or shipment, and the place of delivery or installation. The contractor shall comply with the notice upon receipt, unless the contractor intends to claim an adjustment to compensation, schedule, or other contractual impact that would be caused by complying with such notice, in which case the contractor shall, in writing, promptly notify the Purchasing Agency of the adjustment to be sought, and before proceeding to comply with the notice, shall await the Purchasing Agency's written decision affirming, modifying, or revoking the prior written notice. If the Purchasing Agency decides to issue a notice that requires an adjustment to compensation, the contractor shall be compensated for any additional costs incurred as the result of such order and shall give the Purchasing Agency a credit for any savings. Said compensation shall be determined by one of the following methods:

a. By mutual agreement between the parties in writing; or

b. By agreeing upon a unit price or using a unit price set forth in the contract, if the work to be done can be expressed in units, and the contractor accounts for the number of units of work performed, subject to the Purchasing Agency’s right to audit the contractor’s records and/or to determine the correct number of units independently; or

c. By ordering the contractor to proceed with the work and keep a record of all costs incurred and savings realized. A markup for overhead and profit may be allowed if provided by the contract. July 2021 version

The same markup shall be used for determining a decrease in price as the result of savings realized.

The contractor shall present the Purchasing Agency with all vouchers and records of expenses incurred and savings realized. The Purchasing Agency shall have the right to audit the records of the contractor as it deems necessary to determine costs or savings. Any claim for an adjustment in price under this provision must be asserted by written notice to the Purchasing Agency within thirty (30) days from the date of receipt of the written order from the Purchasing Agency. If the parties fail to agree on an amount of adjustment, the question of an increase or decrease in the contract price or time for performance shall be resolved in accordance with the procedures for resolving disputes provided by the Disputes Clause of this contract or, if there is none, in accordance with the disputes provisions of the Commonwealth of Virginia Vendors Manual. Neither the existence of a claim nor a dispute resolution process, litigation or any other provision of this contract shall excuse the contractor from promptly complying with the changes ordered by the Purchasing Agency or with the performance of the contract generally.

P. DEFAULT: In case of failure to deliver goods or services in accordance with the contract terms and conditions, the Commonwealth, after due oral or written notice, may procure them from other sources and hold the contractor responsible for any resulting additional purchase and administrative costs. This remedy shall be in addition to any other remedies which the Commonwealth may have.

Q. TAXES: Sales to the Commonwealth of Virginia are normally exempt from State sales tax. State sales and use tax certificates of exemption, Form ST-12, will be issued upon request. Deliveries against this contract shall usually be free of Federal excise and transportation taxes. The Commonwealth’s excise tax exemption registration number is 54-73-0076K.

If sales or deliveries against the contract are not exempt, the contractor shall be responsible for the payment of such taxes unless the tax law specifically imposes the tax upon the buying entity and prohibits the contractor from offering a tax-included price.

R. USE OF BRAND NAMES: Unless otherwise provided in this solicitation, the name of a certain brand, make or manufacturer does not restrict (bidders/offerors) to the specific brand, make or manufacturer named, but conveys the general style, type, character, and quality of the article desired. Any article which the public body, in its sole discretion, determines to be the equivalent of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended, shall be accepted. The (bidder/offeror) is responsible to clearly and specifically identify the product being offered and to provide sufficient descriptive literature, catalog cuts and technical detail to enable the Commonwealth to determine if the product offered meets the requirements of the solicitation. This is required even if offering the exact brand, make or manufacturer specified. Normally in competitive sealed bidding only the information furnished with the bid will be considered in the evaluation. Failure to furnish adequate data for evaluation purposes may result in declaring a bid nonresponsive. Unless the (bidder/offeror) clearly indicates in its (bid/proposal) that the product offered is an equivalent product, such (bid/proposal) will be considered to offer the brand name product referenced in the solicitation.

S. TRANSPORTATION AND PACKAGING: By submitting their (bids/proposals), all (bidders/offerors) certify and warrant that the price offered for FOB destination includes only the actual freight rate costs at the lowest and best rate and is based upon the actual weight of the goods to be shipped. Except as otherwise specified herein, standard commercial packaging, packing and shipping containers shall be used. All July 2021 version

shipping containers shall be legibly marked or labeled on the outside with purchase order number, commodity description, and quantity.

T. INSURANCE: By signing and submitting a bid or proposal under this solicitation, the bidder or offeror certifies that if awarded the contract, it will have the following insurance coverage at the time the contract is awarded. For construction contracts, if any subcontractors are involved, the subcontractor will have workers’ compensation insurance in accordance with §§ 2.2-4332 and 65.2-800 et seq. of the Code of Virginia. The bidder or offeror further certifies that the contractor and any subcontractors will maintain these insurance coverages during the entire term of the contract and that all coverage will be provided by companies authorized to sell insurance in Virginia by the Virginia State Corporation Commission.

MINIMUM INSURANCE COVERAGES AND LIMITS:

1. Workers’ Compensation - Statutory requirements and benefits. Coverage is compulsory for employers of three or more employees, to include the employer. Contractors who fail to notify the Commonwealth of increases in the number of employees that change their workers’ compensation requirements under the Code of Virginia during the course of the contract shall be in noncompliance with the contract.

1. Employer’s Liability - $100,000.

1. Commercial General Liability - $1,000,000 per occurrence and $2,000,000 in the aggregate. Commercial General Liability is to include bodily injury and property damage, personal injury and advertising injury, products and completed operations coverage. The Commonwealth of Virginia shall be added as an additional insured to the policy by an endorsement.

1. Automobile Liability - $1,000,000 combined single limit. (Required only if a motor vehicle not owned by the Commonwealth is to be used in the contract. Contractor must assure that the required coverage is maintained by the Contractor (or third party owner of such motor vehicle.)

Profession/Service Limits Accounting $1,000,000 per occurrence, $3,000,000 aggregate Architecture $2,000,000 per occurrence, $6,000,000 aggregate Asbestos Design, Inspection or Abatement Contractors $1,000,000 per occurrence, $3,000,000 aggregate Health Care Practitioner (to include Dentists, Licensed Dental Hygienists, Optometrists, Registered or Licensed Practical Nurses, Pharmacists, Physicians, Podiatrists, Chiropractors, Physical Therapists, Physical Therapist Assistants, Clinical Psychologists, Clinical Social Workers, Professional Counselors, Hospitals, or Health Maintenance Organizations.) Code of Virginia § 8.01-581.15 https://law.lis.virginia.gov/vacode/title8.01/chapter21.1/section8.01-581.15/

Insurance/Risk Management $1,000,000 per occurrence, $3,000,000 aggregate Landscape/Architecture $1,000,000 per occurrence, $1,000,000 aggregate Legal $1,000,000 per occurrence, $5,000,000 aggregate Professional Engineer $2,000,000 per occurrence, $6,000,000 aggregate Surveying $1,000,000 per occurrence, $1,000,000 aggregate July 2021 version

U. ANNOUNCEMENT OF AWARD: Upon the award or the announcement of the decision to award a contract as a result of this solicitation, the purchasing agency will publicly post such notice in eVA (www.eva.virginia.gov) for a minimum of 10 days.

V. DRUG-FREE WORKPLACE: Applicable for all contracts over $10,000: During the performance of this contract, the contractor agrees to (i) provide a drug-free workplace for the contractor's employees; (ii) post in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition; (iii) state in all solicitations or advertisements for employees placed by or on behalf of the contractor that the contractor maintains a drug-free workplace; and (iv) include the provisions of the foregoing clauses in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each subcontractor or vendor.

For the purposes of this section, “drug-free workplace” means a site for the performance of work done in connection with a specific contract awarded to a contractor, the employees of whom are prohibited from engaging in the unlawful manufacture, sale, distribution, dispensation, possession or use of any controlled substance or marijuana during the performance of the contract.

W. NONDISCRIMINATION OF CONTRACTORS: A bidder, offeror, or contractor shall not be discriminated against in the solicitation or award of this contract because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, or disability, faith-based organizational status, any other basis prohibited by state law relating to discrimination in employment or because the bidder or offeror employs ex-offenders unless the state agency, department or institution has made a written determination that employing ex-offenders on the specific contract is not in its best interest. If the award of this contract is made to a faith-based organization and an individual, who applies for or receives goods, services, or disbursements provided pursuant to this contract objects to the religious character of the faith-based organization from which the individual receives or would receive the goods, services, or disbursements, the public body shall offer the individual, within a reasonable period of time after the date of his objection, access to equivalent goods, services, or disbursements from an alternative provider.

X. eVA BUSINESS-TO-GOVERNMENT VENDOR REGISTRATION, CONTRACTS, AND ORDERS: The eVA Internet electronic procurement solution, web site portal www.eVA.virginia.gov, streamlines and automates government purchasing activities in the Commonwealth. The eVA portal is the gateway for vendors to conduct business with state agencies and public bodies. All vendors desiring to provide goods and/or services to the Commonwealth shall participate in the eVA Internet e-procurement solution by completing the free eVA Vendor Registration. All bidders or offerors must register in eVA and pay the Vendor Transaction Fees specified below; failure to register will result in the bid/proposal being rejected.

Vendor transaction fees are determined by the date the original purchase order is issued and the current fees are as follows:

a. For orders issued July 1, 2014, and after, the Vendor Transaction Fee is:

(i) DSBSD-certified Small Businesses: 1%, capped at $500 per order. (ii) Businesses that are not DSBSD-certified Small Businesses: 1%, capped at $1,500 per order. July 2021 version

b. Refer to Special Term and Condition “eVA Orders and Contracts” to identify the number of purchase orders that will be issued as a result of this solicitation/contract with the eVA transaction fee specified above assessed for each order.

For orders issued prior to July 1, 2014, the vendor transaction fees can be found at www.eVA.virginia.gov.

The specified vendor transaction fee will be invoiced, by the Commonwealth of Virginia Department of General Services, typically within 60 days of the order issue date. Any adjustments (increases/decreases) will be handled through purchase order changes.

Y. AVAILABILITY OF FUNDS: It is understood and agreed between the parties herein that the agency shall be bound hereunder only to the extent that the legislature has appropriated funds that are legally available or may hereafter become legally available for the purpose of this agreement.

Z. SET-ASIDES. This solicitation is set-aside for award to DSBSD-certified micro or small business participation only when designated “Micro Business Set-Aside Award Priority” or “Small Business Set-Aside Award Priority” accordingly in the solicitation. DSBSD-certified micro or small businesses shall include DSBSD-certified women, minority and service disabled veteran owned businesses when they have also received the DSBSD small business certification. For purposes of award, bidders/offerors shall be deemed small business if and only if they are certified as such by DSBSD on the due date for receipt of bids/proposals

AA. BID PRICE CURRENCY. Unless stated otherwise in the solicitation, bidders/offerors shall state bid/offer prices in US dollars.

BB. AUTHORIZATION TO CONDUCT BUSINESS IN THE COMMONWEALTH: A contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 of the Code of Virginia or as otherwise required by law. Any business entity described above that enters into a contract with a public body pursuant to the Virginia Public Procurement Act shall not allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time during the term of the contract. A public body may void any contract with a business entity if the business entity fails to remain in compliance with the provisions of this section.

CC. CIVILITY IN STATE WORKPLACES: The contractor shall take all reasonable steps to ensure that no individual, while performing work on behalf of the contractor or any subcontractor in connection with this agreement (each, a “Contract Worker”), shall engage in 1) harassment (including sexual harassment), bullying, cyber-bullying, or threatening or violent conduct, or 2) discriminatory behavior on the basis of race, sex, color, national origin, religious belief, sexual orientation, gender identity or expression, age, political affiliation, veteran status, or disability.

The contractor shall provide each Contract Worker with a copy of this Section and will require Contract Workers to participate in agency training on civility in the State workplace if contractor’s (and any subcontractor’s) regular mandatory training programs do not already encompass equivalent or greater July 2021 version

expectations. Upon request, the contractor shall provide documentation that each Contract Worker has received such training.

For purposes of this Section, “State workplace” includes any location, permanent or temporary, where a Commonwealth employee performs any work-related duty or is representing his or her agency, as well as surrounding perimeters, parking lots, outside meeting locations, and means of travel to and from these locations. Communications are deemed to occur in a State workplace if the Contract Worker reasonably should know that the phone number, email, or other method of communication is associated with a State workplace or is associated with a person who is a State employee.

The Commonwealth of Virginia may require, at its sole discretion, the removal and replacement of any Contract Worker who the Commonwealth reasonably believes to have violated this Section.

This Section creates obligations solely on the part of the contractor. Employees or other third parties may benefit incidentally from this Section and from training materials or other communications distributed on this topic , but the Parties to this agreement intend this Section to be enforceable solely by the Commonwealth and not by employees or other third parties. July 2021 version

INDEX

VENDORS MANUAL and CODE OF VIRGINIA

CROSS REFERENCE

VENDORS CODE OF

MANUAL VIRGINIA A Absolute Preferences, defined ................................................... Appendix A.............................................

Acceptance period .....................................................................................6.2.............................................

Addendum .................................................................................................4.6.............................. 2.2-4316 Additional Bid/Proposal for the Same Procurement ...............................3.13.............................................

Administrative Exceptions .......................................................................1.3............................... 2.2-1111 Administrative Appeal Procedures, Exhaustion of ...................................9.8.............................................

Administrative support............................................................................9.14.............................................

Agency, defined ......................................................................... Appendix A.............................................

Agency Purchase Order (APO), defined .................................... Appendix A.............................................

Agency Purchasing Function ....................................................................1.4.............. 2.2-1110, 2.2-1111, ...................................................................................................................................................... 2.2-1120 Alterations to bids or proposals ..............................................................5.12.............................................

Alternate bids ............................................................................................5.7.............................................

Alternative Dispute Resolution ...............................................................9.17................................2.24366 Amending or withdrawing bids or proposals by vendors ....................... 5.11.............................. 2.2-4316 Appeal Board's Decision .........................................................................9.15.............................................

Appeal, Decision to Award .......................................................................9.6.............................. 2.2-4360 Appeal, defined .......................................................................... Appendix A.............. 2.2-4364; 2.2-4365 Appeal of a Denial of Bid Withdrawal .....................................................9.4............................. 2.2-4358 Appeal of Ineligibility or Disqualification Determination or Debarment 9.3.............................. 2.2-4357 Appeal of Nonresponsibility Determination .............................................9.5.............................. 2.2-4359 Appeals - General .....................................................................................9.0................... Article 3, VPPA Appendix A - Definitions ........................................................... Appendix A.............................................

Appendix B - Terms and Conditions & Instructions to Vendors.Appendix B ............................................

Application and Registration ....................................................................3.1.............................................

Application, Vendor ..................................................................................3.1.............................................

Architect or Engineer, Purchases of Building Supplies or Equipment from3.6a......................... 2.2-4374 Artwork and negatives, ownership .........................................................3.10.............................................

Assignment of contract ........................................................................... 7.11.............................................

Assistance, Payment .................................................................................8.5.............................................

Assistance to State Agencies .....................................................................3.4.............................................

Authority of DPS ......................................................................................1.1...................... 2.2-1109 et al.

Authority of the DGS/DPS .......................................................................1.1..................... 2.2-1109 et al.

Automated Data-Processing Equipment (ADPE), defined ........ Appendix A.............................................

Award ..........................................................................................................6............... 2.2-4303; 2.2-4360 Awards, multiple and split ........................................................................6.4.............................. 2.2-4301 July 2021 version

B Bid Bond, defined ............................................................................ Appendix A.............................. 2.2-4336 Bid, defined ...................................................................................... Appendix A.............................................

Bid evaluation and award................................................................................6.1.............................. 2.2-4301 Bidder, defined ................................................................................. Appendix A.............................................

Billings and Invoices.......................................................................................8.3....... 2.2-4347 thru 2.2-4354 Blanket Purchase Agreement (BPA), defined .................................. Appendix A.............................................

Board decision ..............................................................................................9.15.............................................

Boiler Plate, defined......................................................................... Appendix A.............................................

Bonds ............................................................................................................ 4.11....... 2.2-4337 thru 2.2-4339 Brand names..................................................................................................4.14.............................. 2.2-4315 Broker, defined ................................................................................. Appendix A.............................................

C Canceling or amending a solicitation ..............................................................4.6.............................. 2.2-4319 Cancellation of purchase orders and contracts ..............................................7.15.............................................

Changes in vendor registration .......................................................................3.2.............................................

Changes, purchase order ...............................................................................7.16........................... 2.2-4309A Charge Card, defined ....................................................................... Appendix A.............................................

Charge Cards for Small Purchases ..................................................................8.2.............................................

Charges and collections ....................................................................................8........ 2.2-4347 thru 2.2-4354 Claims ...........................................................................................................7.19................ 2.2-514; 2.2-4363 Combining responses to separate solicitations is prohibited ..........................4.7.............................................

Commodity Code, defined ............................................................... Appendix A.............................................

Communications, ........................................................................................1.3 b.............................................

Competitive bidding exceptions .....................................................................2.2.............................. 2.2-4346 Competitive Bidding, defined .......................................................... Appendix A.............................. 2.2-4303 Competitive Negotiation .................................................................................2.6.............. 2.2-4301; 2.2-4303 Competitive Negotiation, defined .................................................... Appendix A.............................. 2.2-4301 Competitive Sealed Bid, defined ..................................................... Appendix A.............................. 2.2-4301 Complaints ...................................................................................................7.13.............................................

Conditions and terms of a solicitation ............................................................5.4.............................. 2.2-4301 Confirming Purchase Order, defined ............................................... Appendix A.............................................

Conflict of interest ...................................................................................... 7.20f....... 2.2-3100 thru 2.2-3127 Consideration, defined ..................................................................... Appendix A...........................2.2-4300 B Construction, defined ....................................................................... Appendix A.............................. 2.2-4301 Construction Management Contract, defined .................................. Appendix A.............................................

Consulting Services, defined ........................................................... Appendix A.............................................

Contract Administration, defined ..................................................... Appendix A.............................................

Contract assignment ...................................................................................... 7.11.............................................

Contract, Cost-Plus-A-Fixed-Fee, defined ...................................... Appendix A.............................................

Contract, Cost-Plus-A-Percentage-Of-Cost, defined ....................... Appendix A.............................. 2.2-4331 Contract, defined .............................................................................. Appendix A.............................................

Contract, Fixed Price, defined ......................................................... Appendix A............................................. July 2021 version

Contract, Fixed Price with Escalation/De-escalation, defined ......... Appendix A.............................................

Contract modification restriction ..................................................................7.17...........................2.2-4309 C Contract Officer, Purchase Officer, Buyer, defined ......................... Appendix A.............................................

Contract renewal or extension ......................................................................7.12...........................2.2-4309 B Contract, Requirements Type, defined ............................................. Appendix A.............................................

Contract, Service, defined ................................................................ Appendix A.............................................

Contract, Time and Material, defined .............................................. Appendix A.............................................

Contractor, defined ..............................................................8.6b(2); Appendix A.............................................

Contractor Payment Assistance.......................................................................8.5.............................................

Contractor registration (license) ...................................................................4.15............ 54.1-1103 thru 1115 Cooperative Procurement..............................................................................1.10.............................. 2.2-4304 Copyright ........................................................................................................3.9.............................................

CORPRINT, defined ........................................................................ Appendix A.............................................

Correspondence concerning solicitations .....................................................5.10.............................. 2.2-4316 Cure Notice, defined ........................................................................ Appendix A.............................................

D Damage or loss in transit.................................................................................7.5.............................................

Debarment .....................................................................................................7.20.............................. 2.2-4321 Debarment, defined .......................................................................... Appendix A.............................................

Debarment notification and appeal ...............................................................7.23.............................................

Debarment period..........................................................................................7.22.............................................

Debtor ...................................................................................................... 8.6b(1).............................................

Default...........................................................................................................7.14.............................................

Default, defined................................................................................ Appendix A.............................................

Definitions........................................................................................ Appendix A.............................. 2.2-4301 Delegation of Authority ..................................................................................1.4.............................. 2.2-1120 Delivery...........................................................................................................7.7.............................................

Delivery time ..................................................................................................7.7.............................................

Denial of withdrawal of bid ...................................................................5.15, 9.4........................... 2.2-4330 F Design Specification, defined .......................................................... Appendix A.............................................

Design-build Contract, defined ........................................................ Appendix A.............................................

Disadvantaged Business................................................................... Appendix A.............................................

Discounts.........................................................................................................5.5.............................................

Discrimination prohibited ...............................................................................2.1.......... 2.2-4310 A; 2.2-4311 Disputes (Claims)..........................................................................................7.19................ 2.2-514; 2.2-4363 Distributor ........................................................................................ Appendix A.............................................

Division of Purchases and Supply (DGS/DPS) defined .................. Appendix A...................... 2.2-1109 et al.

Drug-Free Workplace, defined ......................................................... Appendix A.............................. 2.2-4312 E Effect of Appeal on Procurement Proceedings ...............................................9.9.............................. 2.2-4361 Emergency, defined .......................................................................... Appendix A.............................................

Emergency procurements ................................................................................2.8........................... 2.2-4303 F Employment Services Organizations, defined ................................. Appendix A............................................. July 2021 version

Errors in bid ..................................................................................................5.13.............................................

Ethics...............................................................................................................3.5....... 2.2-4365 thru 2.2-4377 Ethics, defined.................................................................................. Appendix A............................................. eVA…………………. ........................................................………….…….. 3.1.............................................

Evaluation of bids or proposals.......................................................................6.1.............................. 2.2-4301 Evaluation of Bids, defined .............................................................. Appendix A.............................................

E-Verify Program…………………………. 2.11, 3.16, 7.20, 7.22, Appendix A………2.2-4317, 2.2-4308.2 Exceptions from competitive requirements ....................................................2.2..................... 2.2-4303 E&G Exhaustion of administrative procedures ........................................................9.8.............................................

F Facsimile bids or proposals .............................................................................4.9.............................................

Failure to deliver .............................................................................................7.7.............................................

Forms, solicitation...........................................................................................5.1.............................................

Freedom of Information Act (FOIA) .............................................................1.9................... 2.2-3700 et seq.

Freight .............................................................................................................7.6.............................................

G General, Authority and Responsibility ............................................................1.0................. 2.2-1109 et al. & ......................................................................................................................................... Title 2.2, Chapter 43 General Terms and Conditions, ....................................................... Appendix B.............................................

Defined ........................................................................................ Appendix A.............................................

Gifts.................................................................................................................3.5.......... 2.2-4371; 2.2-4371 B Goods, defined ................................................................................. Appendix A.............................. 2.2-4301 Goods, new/used/altered .................................................................................... 7.2 ..............................................

H Hearing procedures .......................................................................................9.12.............................. 2.2-4365 I Ineligibility or disqualification determination or debarment, Appeal .............9.3.............................. 2.2-4357 Ineligibility or disqualification of manufacturer ...........................................7.21.............................. 2.2-4357 Informalities ........................................................................................... 5.13c(1).......... 2.2-4301; 2.2-4319 B Informality, defined .......................................................................... Appendix A.............................. 2.2-4301 Inspection ......................................................................................................7.10.............................................

Inspection, defined ........................................................................... Appendix A.............................................

Insurance .......................................................................................................4.12.... 2.2-4345 A .13; 2.2-4332 Invitation for Bids (IFB), defined .................................................... Appendix A.............................................

Invoices ...........................................................................................................8.3.............................................

J July 2021 version

Judgment errors ...................................................................................... 5.13c(2).............................................

Judicial review ..............................................................................................9.16.............................. 2.2-4364 Judicial review of Appeals Board's decision .................................................9.15.............................. 2.2-4364

L Late Bid or Proposal, defined .......................................................... Appendix A.............................................

Late bids or proposals ...................................................................................4.10.............................................

Late payment charges ................................................................................... 8.6e....... 2.2-4347 thru 2.2-4354 Latent Defect, defined ...................................................................... Appendix A.............................................

Less toxic goods or products......................................................................... 1.8c.............................. 2.2-4314 License, Contractor registration ...................................................................4.15............ 54.1-1103 thru 1115 Liquidated Damages, defined .......................................................... Appendix A.............................................

Local governments, purchases for ..................................................................1.5.............................. 2.2-1122 Loss or damage of goods in transit .................................................................7.5.............................................

Low bidder, negotiations with ........................................................................6.7.............................. 2.2-4318 M Methods of Procurement ................................................... 2.3 - 2.9, Appendix A.............................. 2.2-4303 Micro Business................................................................................. Appendix A Minority-owned Business ................................................................ Appendix A.............................................

Minority Individual .......................................................................... Appendix A.............................................

Mistakes in bids ............................................................................................5.13.............................. 2.2-4330 Modification of contracts or purchase orders, and dollar limits ......... 7.16; 7.17...........................2.2-4309 A Multiple Award, defined .................................................................. Appendix A.............................. 2.2-4301 Multiple awards and split awards ...................................................................6.4.............................. 2.2-4301 N Negotiation, competitive .................................................................................2.6.............. 2.2-4301; 2.2-4303 Negotiation, defined ......................................................................... Appendix A.............................. 2.2-4301 Negotiations with the lowest responsible bidder ............................................6.7.............................. 2.2-4318 New, used, or altered goods ............................................................................7.2.............................................

Noncompetitive Negotiation, defined ……………………………..Appendix A………………… Nondiscrimination...........................................................................................2.1.......... 2.2-4310 A; 2.2-4311 Nonprofessional Services, defined................................................... Appendix A.............................. 2.2-4301 Nonprofit vendors, purchases from.................................................................1.7.... 2.2-1118; 2.2-4344 A1(a) Nonresponsibility determination .....................................................................9.5.............................. 2.2-4359 Notice of Award, defined ................................................................. Appendix A.............................................

Notice of Intent to Award, and Notice of Award .............................................6.3.............. 2.2-4303; 2.2-4360 Notice of Intent to Award, defined ................................................... Appendix A.............................................

Notice of Pending Procurements ..................................................................4.16............................................. July 2021 version O Offeror, defined ................................................................................ Appendix A.............................................

Official Responsibility ..................................................................... Appendix A.............................................

Open records .................................................................................................1.10.............................. 2.2-4342 Overruns and underruns, printing .................................................................7.8b.............................................

Overshipments/Overruns ................................................................................7.9.............................................

Ownership of printing artwork, negatives, etc. .............................................3.10.............................................

P Packaging ........................................................................................................7.3.............................................

Partial payments ..............................................................................................8.4.............................................

Payment Assistance .........................................................................................8.5.............................................

Payment Bond, For Labor and Material, defined ............................ Appendix A.............. 2.2-4337; 2.2-4341 Payment by Electronic Funds Transfer ...........................................................8.8.............................................

Payment Date ........................................................................................... 8.6b(3).............................................

Payment Requirements: All Contracts ...........................................................8.7.............................................

Pending Procurement Notices .......................................................................4.16.............................................

Performance Bond, defined ............................................................. Appendix A.............................................

Performance Specification, defined ................................................. Appendix A.............................................

Personal Interest and Gifts ..............................................................................3.5.......... 2.2-4371; 2.2-4371 B Policy, procurement ........................................................................................2.1.............................................

Postage ............................................................................................................4.8.............................................

Potential Bidder or Offeror, defined ................................................ Appendix A.............................. 2.2-4301 Prebid or Preproposal Conference, defined ..................................... Appendix A.............................................

Prebid or preproposal conference ...................................................................4.3.............................................

Preferences - Virginia vendors - recycled paper .............................................1.8.............................. 2.2-4324 Prequalification .............................................................................................2.10.............................. 2.2-4317 Prequalification, defined .................................................................. Appendix A.............................................

Prequalification, Qualified Contractors List (QCL), defined .......... Appendix A.............................................

Prequalification, Qualified Products List (QPL), defined ............... Appendix A.............................................

Pricing and discounts ......................................................................................5.5.............................................

Printing overruns and underruns ...................................................................7.8b.............................................

Procurement, defined ....................................................................... Appendix A.............................................

Procurement Policy .........................................................................................2.1.............................................

Product demonstrations ...................................................................................5.6.............................................

Professional Services, defined ......................................................... Appendix A.......... 2.2-4301; 2.2-4303 B Prohibited Contracts......................................................................................3.12.............................................

Prohibited purchases .......................................................................................3.6.............................. 2.2-4374 Prompt payment of bills ..................................................................................8.6...........................2.2-4350 A Proposal, defined.............................................................................. Appendix A.............................................

Proposal evaluation and award .....................................................................6.1b.............................. 2.2-4301 Proprietary Specification, defined ................................................... Appendix A.............................................

Protest, defined ................................................................................ Appendix A.............................................

Protest of award or decision to award .............................................................9.6.............................. 2.2-4360 Protest of ineligibility or disqualification ............................................. 7.21; 9.3.............................. 2.2-4357 July 2021 version

Public Auction Sale ................................................................................2.10.......................... 2.2-4303.H Public Bid Opening, defined ............................................................ Appendix A.............................. 2.2-4301 Public Telecommunications Services, defined................................. Appendix A.............................................

Purchase order, authority and shipment ..........................................................7.1.............................................

Purchase order cancellation ..........................................................................7.15.............................................

Purchase order changes .................................................................................7.16.............................. 2.2-4309 Purchase Order, defined ................................................................... Appendix A.............................................

Purchases for local governments ....................................................................1.5............................. 2.2-1122; ......................................................................................................................................... 2.2-4343 A .10 & .12 Purchases from state agencies or nonprofit vendors .......................................1.7.......... 2.2-1118; 2.2-4344 A Purchases from state contracts (mandatory source) ........................................1.6.............................................

Purchasing Agency, defined ............................................................. Appendix A.............................................

Q Questions Concerning Solicitations .................................................... 4.13; 5.10.............................................

R Receipt by state agency ...................................................................................7.8.............................................

Receipt of sealed bids or proposals .................................................................4.4.............................................

Receipt of shipments .......................................................................................7.8.............................................

Receipt of unsealed or informal bids ..............................................................4.5.............................................

Record review, agency records by bidders/offerors/general public ................1.9.............................. 2.2-4342 Recycled paper and paper products ..............................................................1.8b.............................. 2.2-4326 Registration of vendors ...................................................................................3.1.............................................

Regular Dealer, defined ................................................................... Appendix A.............................................

Rejection of bids or proposals............................................................... 4.4; 4.10.............................................

Request for Proposals (RFP), defined .............................................. Appendix A.............................. 2.2-4301 Required General Terms and Conditions ......................................... Appendix B.............................................

Response time .................................................................................................4.2.............................................

Responsible bidder or offeror .........................................................................3.7.............................. 2.2-4301 Responsible Bidder or Offeror, defined ........................................... Appendix A.............................................

Responsive Bidder .................................................................... 3.8; Appendix A.............................. 2.2-4301 Reverse Auction .....................................................................................2.11.................. …… 2.2-4303.I

S Sales effort by vendor .....................................................................................3.4...........................2.2-4300 C Samples ...........................................................................................................5.6.............................................

Sealed Bid, defined .......................................................................... Appendix A.............................................

Sealed or formal bids ......................................................................................2.4.............................................

Selection of bidders.........................................................................................4.1.............................................

Separate agency records ..................................................................................8.1.............................................

Services, defined .............................................................................. Appendix A.............................. 2.2-4301 Set-asides…………………………………………..…………2.1d;Appendix A ………………………. July 2021 version

Signature on bid or proposal ...........................................................................5.3.............................................

Small Business ........................................................................ 2.1 d;Appendix A.............................................

Small Business Subcontracting Plan ....................................... 2.1 c;Appendix A.............................................

Small purchase procedures .............................................................................2.3.......................... 2.2-4303 G Software, defined ............................................................................. Appendix A.............................................

Sole source procurement .................................................................................2.9........................... 2.2-4303 E Sole Source, defined ........................................................................ Appendix A.............................................

Solicitation, defined ......................................................................... Appendix A.............................................

Solicitation forms ............................................................................................5.1.............................................

Solicitation, questions on content ....................................................... 4.13; 5.10.............................. 2.2-4316 Solicitation Response Time.............................................................................4.2.............................................

Solicitation Terms and Conditions ..................................................................5.4.............................................

Solicitations, canceling or amending ..............................................................4.6.............................. 2.2-4319 Solicitations, combining responses prohibited ...............................................4.7.............................................

Special Terms and Conditions, defined ............................................ Appendix A.............................................

Specifications, questions, and comments ............................................ 4.13; 5.10.............................. 2.2-4316 Spot Purchase, defined ..................................................................... Appendix A.............................................

Standards of Conduct .................................................................................................. 2.2-4367 thru 2.2-4377 State Agency ............................................................................................ 8.6b(4).............................................

State Corporation Commission Identification Number, Authorization to Transact Business .......................................................3.15........................... 2.2-4311.2 Statutory exemptions ......................................................................................1.2............................... 2.2-1111 Subcontractor ........................................................................................... 8.6b(5).............................................

Subsequent/Additional Bid/Proposal for the Same Procurement .................3.13.............................................

Substitutions ....................................................................................................7.4.............................................

Surplus Property, defined ................................................................. Appendix A.............................. 2.2-1124 Suspension ....................................................................................................7.24.............................................

T Taxes ...............................................................................................................5.8.............................................

Technical Proposal, defined ............................................................. Appendix A.............................................

Technical Specifications, defined .................................................... Appendix A.............................................

Telecommunications Equipment, defined ........................................ Appendix A.............................................

Telecommunications Services, defined ............................................ Appendix A.............................................

Term Contracting, defined ............................................................... Appendix A.............................................

Termination for Convenience of the Commonwealth ...................................7.18.............................................

Termination for default .................................................................................7.14.............................................

Termination for Convenience, defined ............................................ Appendix A.............................................

Termination for Default, defined ..................................................... Appendix A.............................................

Terms and Conditions .....................................................................................5.4.............................................

Terms and Conditions & Instructions to Vendors ............................ Appendix B.............................................

Tie bids ............................................................................................................6.5...........................2.2-4324 A Time and place of hearings ...........................................................................9.10.............................................

Time of delivery ..............................................................................................7.7.............................................

Time of performance .......................................................................................5.9............................................. July 2021 version

Total Value ....................................................................................... Appendix A.............................................

Two-step sealed bidding .................................................................................2.5.............................................

U Unsealed Bid, defined ...................................................................... Appendix A.............................................

Unsealed or Informal Bids or Proposals, Receipt of ......................................4.5.......................... 2.2-4303 G Used Equipment, defined ................................................................. Appendix A.............................................

Used goods ......................................................................................................7.2.............................................

V Vendor appeals ................................................................................................9.0................... Article 3, VPPA Vendor application & registration, printing ....................................................3.1.............................................

Vendor application & registration, general .....................................................3.1.............................................

Vendor assistance to state agencies .................................................................3.4...........................2.2-4300 C Vendor, defined ................................................................................ Appendix A.............................................

Vendor disqualification ....................................................................... 7.20; 7.23.............. 2.2-4317; 2.2-4357 Vendor name and address................................................................................5.2.............................................

Vendor not registered ......................................................................................3.1.............................................

Vendor payment assistance .............................................................................8.5.............................................

Vendor product demonstrations ......................................................................5.6.............................................

Vendor visits....................................................................................................3.3...........................2.2-4300 C Virginia Public Procurement Act (VPPA) ...................................... . Appendix A.............................................

Virginia Business Opportunities (VBO) .......................................................4.16.............................................

W Withdrawal of bid .........................................................................................5.14.............................. 2.2-4330 Withdrawal of bid denial ...............................................................................5.15.............................. 2.2-4358 Withdrawal of bid due to error in bids for construction ............................. 5.13e.............................. 2.2-4330 Women-owned Business .................................................................. Appendix A.............................................

July 2021 version Commonwealth of Virginia

VENDORS MANUAL

A Vendor's Guide on How to do Business with the Commonwealth of Virginia

Revised December 1998

Department of General Services Division of Purchases and Supply 1111 East Broad Street Richmond, VA 23219 July 2021 version

VENDORS MANUAL

DECEMBER 1998 EDITION

INTRODUCTION

The Vendors Manual, under Virginia Code 2.2-1111, sets rules for purchasing nontechnology goods and nonprofessional services by the Commonwealth.

The 1998 edition incorporates changes legislated by the General Assembly and also includes a number of editorial changes to improve readability and understanding of the manual. This edition of the Vendors Manual is effective December 1, 1998. It supersedes all previous editions. A complete Vendors Manual containing all changes and a listing of changes made since publication of this edition may be obtained from the Department of General Services (DGS), Division of Purchases and Supply (DPS) and on the eVA Internet Home Page. The direct link to the Vendors Manual is https://dgs.virginia.gov/globalassets/business-units/dps/documents/vendorsmanual/vendors-manual_as-of-070118.pdf .

Any vendor providing nontechnology goods or nonprofessional services to the Commonwealth should be familiar with the contents of this manual. It generally applies to all state procurements except capital outlay construction (which is subject to the procedures of the Construction and Professional Services Manual) and the procurement of professional services as defined by the Virginia Public Procurement Act (VPPA). Reference made throughout the Vendors Manual to the Department of Information Technology (DIT) or the Department of Technology Planning (DTP) is no longer valid, effective 7/1/03. Guidance for information technology procurements is issued by the Virginia Information Technologies Agency (VITA).

Comments and suggestions for improving state purchasing or this manual are welcome. Address to:

Policy, Consulting and Review DGS/DPS P. O. Box 1199 Richmond, VA 23218-1199 Telephone: 804-786-0324 Fax: 804-786-5712

Donald C. Williams D.B. Smit Director, DGS Deputy Director, DGS July 2021 version

Table of Contents

AUTHORITY AND RESPONSIBILITYOne

1. 0 General
2. 1 Authority and Responsibility
3. 2 Statutory Exemptions
4. 3 Administrative Exceptions
5. 4 Agency Purchasing Function
6. 5 Purchases for Local Governments
7. 6 Purchases from Term Contracts (Mandatory Source)
8. 7 Purchases from State Agencies or Nonprofit Vendors
9. 8 Preferences
10. 9 Open Records
11. 10 Cooperative Procurement

PROCUREMENT METHODSTwo

1. 1 Policy
2. 2 Exceptions from Competitive Bidding
3. 3 Small Purchase Procedures
4. 4 Sealed or Formal Bids
5. 5 Two-Step Sealed Bidding
6. 6 Competitive Negotiation
7. 7 Deleted
8. 8 Emergency Procurement
9. 9 Sole Source Procurement
10. 10 Public Auction Sale
11. 11 Reverse Auction
12. 12 Prequalification

Three GENERAL REQUIREMENTS OF VENDORS

1. 1 Application and Registration
2. 2 Changes in Registration
3. 3 Visits by Vendors
4. 4 Vendor Assistance to State Agencies
5. 5 Personal Interest and Gifts
6. 6 Prohibited Participation
7. 7 Responsible Bidder or Offeror
8. 8 Responsive Bidder July 2021 version Three - continued

1. 9 Copyright
2. 10 Ownership of Artwork, Negatives and Other Submitted Information, etc.
3. 11 Deleted
4. 12 Prohibited Contracts
5. 13 Subsequent/Additional Bid/Proposal for the Same Procurement
6. 14 Virus-free and Accessible Submittals
7. 15 Authorization to Transact Business in the Commonwealth
8. 16 E-Verify Program

SOLICITATIONSFour

1. 1 Selection of Bidders/Offerors
2. 2 Response Time
3. 3 Prebid or Pre-Proposal Conference
4. 4 Receipt of Sealed Bids or Proposals
5. 5 Receipt of Unsealed Proposals
6. 6 Canceling or Amending a Solicitation
7. 7 Combining Responses to Separate Solicitations is Prohibited
8. 8 Postage
9. 9 Facsimile Bids or Proposals
10. 10 Late Bids or Proposals
11. 11 Bonds
12. 12 Insurance
13. 13 Specifications, Questions, and Comments
14. 14 Brand Names
15. 15 Contractor Registration (License)
16. 16 Notice of Pending Procurements

Five SOLICITATION RESPONSES

1. 1 Solicitation Forms
2. 2 Vendor Name and Address
3. 3 Signature on Bid or Proposal
4. 4 Terms and Conditions
5. 5 Pricing and Discounts
6. 6 Samples
7. 7 Alternate Bids
8. 8 Taxes
9. 9 Time of Performance
10. 10 Questions Concerning Solicitations
11. 11 Amending or Withdrawing Bids or Proposals by Vendors July 2021 version Five - continued

1. 12 Alterations to Bids or Proposals
2. 13 Mistakes in Bids
3. 14 Withdrawal of Bids
4. 15 Denial of Withdrawal of Bid Six EVALUATION AND AWARD

1. 0 General
2. 1 Evaluation of Bid and Proposals
3. 2 Acceptance Period
4. 3 Notice of Intent to Award and Notice of Award
5. 4 Multiple Awards and Split Awards
6. 5 Tie Bids
7. 6 Deleted
8. 7 Negotiation with the Lowest Responsible Bidder

PERFORMANCESeven

1. 1 Purchase Order, Authority or Shipment
2. 2 New/Used/Altered
3. 3 Packaging
4. 4 Substitutions
5. 5 Loss or Damage in Transit
6. 6 Freight
7. 7 Delivery
8. 8 Receipt of Shipments
9. 9 Overshipments/Overruns
10. 10 Inspection
11. 11 Assignment of Contract
12. 12 Contract Renewal or Extension
13. 13 Complaints
14. 14 Termination for Default
15. 15 Cancellation of Purchase Orders and Contracts
16. 16 Purchase Order Changes
17. 17 Contract Modification Restriction
18. 18 Termination for Convenience of the Commonwealth
19. 19 Claims
20. 20 Debarment
21. 21 Ineligibility or Disqualification of Manufacturer
22. 22 Debarment Period
23. 23 Debarment Notification and Appeal Procedure July 2021 version Seven - continued

1. 24 Suspension

CHARGES AND COLLECTIONSEight

1. 1 Separate Agency Records
2. 2 Charge Cards for Small Purchases
3. 3 Billings and Invoices
4. 4 Partial Payments
5. 5 Contractor Payment Assistance
6. 6 Prompt Payment of Bills
7. 7 Payment Requirements: All Contracts
8. 8 Payment by Electronic Funds Transfer Nine PROTESTS AND APPEALS

1. 0 General
2. 1 Deleted
3. 2 Deleted
4. 3 Appeal of Ineligibility or Disqualification Determination or Debarment
5. 4 Appeal of a Denial of Bid Withdrawal
6. 5 Appeal of Nonresponsibility Determination
7. 6 Protest of Award or Decision to Award
8. 7 Deleted
9. 8 Exhaustion of Administrative Procedures.
10. 9 Effect of Appeal on Procurement Proceedings
11. 10 Time and Place of Hearings
12. 11 Deleted
13. 12 Hearing Procedures
14. 13 Deleted
15. 14 Administrative Support
16. 15 Board's Decision
17. 16 Judicial Review
18. 17 Alternative Dispute Resolution Appendices DEFINITIONS

Appendix A Pages A-1 through A-9 Definitions Appendix B Pages B-1 & B-2 Terms and Conditions & Instructions to Vendors Pages B-3 through B-10 Required General Terms and Conditions IndexJuly 2021 version July 2021 version

CHAPTER 1

AUTHORITY AND RESPONSIBILITY

In this Chapter look for . . .

1. General
2. 1 Authority and Responsibility
3. 2 Statutory Exemptions
4. 3 Administrative Exceptions
5. 4 Agency Purchasing Function
6. 5 Purchases for Local Governments
7. 6 Purchases from Term Contracts (Mandatory Source)
8. 7 Purchases from State Agencies or Nonprofit Vendors
9. 8 Preferences
10. 9 Open Records
11. 10 Cooperative Procurement

1. General. Public purchasing embraces a fundamental obligation to the general public to ensure that procurements are accomplished in accordance with the intent of the laws enacted by the appropriate legislative body. The intent of the Virginia General Assembly is set forth in the Virginia Public Procurement Act (VPPA).

“To the end that public bodies in the Commonwealth obtain high quality goods and services at reasonable cost, that all procurement procedures be conducted in a fair and impartial manner with avoidance of any impropriety or appearance of impropriety, that all qualified vendors have access to public business, and that no offeror be arbitrarily or capriciously excluded, it is the intent of the General Assembly that competition be sought to the maximum feasible degree, that procurement procedures involve openness and administrative efficiency, that individual public bodies enjoy broad flexibility in fashioning details of such competition, that the rules governing contract awards by made clear in advance of the competition, that specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor, and that the purchaser and vendor freely exchange information concerning what is sought to be procured and what is offered. Public bodies may consider best value concepts when procuring goods and nonprofessional services, but not construction or professional services. The criteria factors, and basis for consideration of best value and the process for the consideration of best value shall be as stated in the procurement solicitation.” (Code of Virginia, § 2.2-4300C).

This statement of intent by the General Assembly highlights the use of competition to the maximum feasible degree. Competitive procurement requires time and administrative effort; it does not guarantee that an agency's preferred brand or vendor will be selected. Conducted properly, competitive procurement responds to user needs, results in public confidence in the integrity of public purchasing, and generally brings the most favorable prices. July 2021 version

The VPPA applies to all Commonwealth public bodies as defined in Virginia Code § 2.2-4301, including legislative, executive, judicial entities, agencies, and subdivisions.

If there is to be a contract between a state agency and nongovernmental vendor, the VPPA and the regulations set forth by the Division of Purchases and Supply, to include this Vendors Manual, apply regardless of the source of funds by which the contract is to be paid or which may or may not result in monetary consideration for either party. These documents also apply whether the consideration is monetary or nonmonetary and regardless of whether the public body, the contractor, or some third party is providing the consideration.

1. 1 Authority and Responsibility.

a. The Department of General Services, Division of Purchases and Supply (DGS/DPS). DGS/DPS is the centralized purchasing agency for materials, supplies, equipment, printing and nonprofessional services required by any state agency or institution. All such purchases made by any department, division, officer, or agency of the Commonwealth shall be made in accordance with the Code of Virginia, Chapter 43, Title 2.2, and such rules and regulations as DGS/DPS may prescribe. DGS/DPS has the authority to make, alter, amend, or repeal regulations relating to the purchase of materials, supplies, equipment, nonprofessional services, and printing, and may specifically exempt particular agency purchases below a stated amount, or specific materials, equipment, nonprofessional services, supplies or printing (Code of Virginia, § 2.2-1111C). DGS/DPS has responsibility for the standardization of materials, equipment, and supplies purchased by or for any agency of the state (Code of Virginia, § 2.2-1112). DGS/DPS also has authority to establish criteria and procedures to obtain economical operation of all state-owned printing facilities (Code of Virginia, § 2.2-1113A).

Agency heads are responsible for ensuring acquisitions comply with laws, orders, appropriations, regulations, and this manual.

b. eVA Internet Home Page. The Commonwealth’s electronic procurement system is eVA. The eVA home page address is www.eva.virginia.gov. It is organized into vendor, “I SELL TO VIRGINIA” and agency, “I BUY FOR VIRGINIA” and “WHAT VIRGINIA BUYS” user areas with separate links for “Business Opportunities”, “Transparency”, “Statewide Contracts” and “Resources.” The link, “I SELL TO VIRGINIA” is geared toward the vendor community and includes the “Purchasing Rules – the Vendor’s Manual” as well as “eVA Vendor Training.” “I BUY FOR VIRGINIA” is geared toward the Commonwealth of Virginia public body buyer community. It includes procurement law (the Virginia Public Procurement Act, VPPA) and policy (the Agency Procurement and Surplus Property Manual, APSPM), which sets forth the policies and procedures to be followed by state agencies and institutions in the purchase of non-technology goods and nonprofessional services. There are links to the Virginia Distribution Center (VDC), the Department of General Services and the Division of Purchases and Supply websites as well as links to related websites. The DPS Statewide Contract list is updated as soon as contracts are awarded. Vendors are encouraged to periodically check the eVA and DGS/DPS website for changes and other information. July 2021 version

1. 2 Statutory Exemptions. Purchasing through DGS/DPS is not mandatory in the following cases; (Code of Virginia, § 2.2-1119):

a. Materials, equipment and supplies as are incident to the performance of a contract for labor or for labor and materials;

b. Manuscripts, maps, audiovisual materials, books, pamphlets and periodicals purchased for the use of The Library of Virginia or any other library in the Commonwealth supported in whole or in part by state appropriations;

c. Perishable articles, provided that no article except fresh fruit and vegetables, fresh fish, fresh meat, fresh fruit, fresh eggs and fresh milk shall be considered perishable within the meaning of this clause, unless so classified by DGS/DPS; however, the purchase of perishable articles identified above that are Virginia-Grown and not expected to exceed $100,000 may be exempt from the VPPA and the APSPM provided the procurement is accomplished in accordance with §2.2-4343-22;

d. Materials, equipment, and supplies needed by the Commonwealth Transportation Board; however, this exception may include office stationery and supplies, office equipment, janitorial equipment and supplies, coal and fuel oil for heating purposes only when authorized in writing by DGS/DPS;

e. Materials, equipment, and supplies needed by the Virginia Alcoholic Beverage Control Board; however, this exception may include office stationery and supplies, office equipment, janitorial equipment and supplies, coal and fuel oil for heating purposes only when authorized in writing by

DGS/DPS;

f. Binding and rebinding of the books and other literary materials of libraries operated by the Commonwealth or under its authority;

g. Printing of the records of the Supreme Court;

h. Financial services, including without limitation, underwriters, financial advisors, investment advisors and banking services; and

i. VCE purchases for supplies, materials, and services for use in and support of its production facilities up to any dollar amount. This exemption does not include purchases of equipment, software, hardware and printing.

1. 3 Administrative Exceptions. DGS/DPS may delegate purchasing authority or authorize exceptions from its rules and regulations for particular agencies or for specified nontechnology goods, nonprofessional services, and printing. The following general exceptions have been granted:

a. Purchases under Delegated Authority. State agencies may purchase within the dollar limits and categories delegated by DGS/DPS without requisitioning through DGS/DPS.

b. Acquisition of Information Technology and Telecommunications Equipment, Goods, and Services. Virginia Information Technologies Agency (VITA) has oversight and procurement July 2021 version

responsibility for the purchase of information technology goods and services, including telecommunications equipment. Further information on IT goods and services can be found at http://www.vita.virginia.gov.

1. 4 Agency Purchasing Function. State agencies are authorized to make direct purchases of non-technology goods and printing within the limits delegated by DGS/DPS. Other requirements must be processed through DGS/DPS as applicable. Agencies are authorized to contract for services up to any dollar amount subject to applicable laws, regulations, this manual, and fiscal restraints. Exceptions to this provision are covered in paragraphs 1.6 and 1.7 of this manual. Agency personnel having “official responsibility” for procurement must comply with the VPPA and the policies and procedures set forth in the Agency Procurement and Surplus Property Manual (APSPM) and this manual.

1. 5 Purchases for Local Governments. Upon request, DGS/DPS and VDOT may procure nontechnology material, equipment, supplies or services for local governments. Nonprofit educational television entities may also purchase through DGS/DPS. Direct sales may be also be made to organizations as established in §2.2-1122, of the Code of Virginia, to include emergency medical services agencies and fire departments established pursuant to Code of Virginia, §15.2-955 Fire company as defined in §27-6.01 or volunteer emergency medical services agency as defined in §32.1-111.1 that is recognized by an ordinance to be part of the safety program of a county, city or town;

1. 6 Purchases from Term Contracts - (Mandatory Source)

a. A state agency may issue an agency purchase order in any amount, except for limitations imposed on specific contracts, for any item or service available on a term contract authorized for use by that agency, which DPS has established. Local governments may purchase from statewide contracts unless the contract is specifically limited to state agencies. If an item is available on a DGS/DPS mandatory contract or from the Virginia Distribution Center, an agency or institution may not establish a contract for the same or similar goods or services or use its local purchasing authority to purchase from another source unless the purchase does not meet the contract minimum order requirement. In an emergency, the use of contract sources may be waived by the applicable purchasing office responsible for administering the term contract. The sale or attempted sale by a vendor to a state agency of goods or services which are required to be ordered from a term contract or from a mandatory source (see paragraph 1.7), may subject a vendor to removal from the Vendors List if that vendor knowingly sells to a state agency goods or services which must be purchased under a term contract or from a mandatory source.

b. VITA establishes contracts for the purchase of information technology goods and services to include computers, software, telecommunications equipment and services for the use of state agencies and institutions.

c. Term Contracts for goods or services are for the sole benefit of the Commonwealth of Virginia, its agencies and institutions and, in some cases, its political subdivisions. The contracts do not apply to government employees or other individuals, and ordering of goods from these contracts by individuals for personal use is prohibited. July 2021 version

1. 7 Purchases from State Agencies or Employment Services Organization Vendors

a. The Code of Virginia requires that certain goods or services be procured, where available, from designated state agencies or employment services organization vendors. These include:

(1) Department of Corrections (Code of Virginia, §§ 2.2-1116, 53.1-47, 53.1-48, 53.1-49)

(2) Department for the Blind and Vision Impaired (Virginia Code §§ 2.2-1117, 2.2-4344 A1 (a))

b. Goods or services may be procured without competition from employment services organizations (Code of Virginia, §§ 2.2-1118 and 2.2-4344 A1 (b).

1. 8 Preferences

a. Virginia Vendors. Preference is given to materials, equipment and supplies produced in Virginia, goods, or services or construction provided by Virginia persons, firms or corporations in the event of a tie bid (see 6.5). Whenever the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a percentage preference, a like preference shall be allowed to the lowest responsible bidder who is a resident of Virginia and is the next lowest bidder. If the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a price-matching preference, a like preference shall be allowed to bidders who are residents of Virginia (Code of Virginia, § 2.2-4324B). If the lowest responsive and responsible Virginia bidder is unable to match the price, the preference shall be given to other Virginia bidders in ascending price order. If the lowest bidder is a resident contractor of another state with an absolute preference, the bid shall not be considered.

DGS/DPS will post state preference laws on eVA website. (See Appendix A for absolute preference.) www.eva.virginia.gov.

b. Recycled Paper and Paper Products. Agencies are encouraged to promote the use of recycled products. In determining the award of any contract for paper and paper products to be purchased for use by agencies of the Commonwealth, the Department of General Services, or agencies under their delegated purchasing authority, shall procure using competitive sealed bidding and shall award to the lowest responsible bidder offering recycled paper and paper products of a quality suitable for the purpose intended, so long as the bid price is not more than ten percent greater than the bid price of the low responsive and responsible bidder offering a product that does not meet the EPA Recommended Content Standards (Code of Virginia, § 2.2-4326).

c. Petitioning for Less Toxic Goods or Products. Any person who manufactures, sells, or supplies goods or products may petition agency purchasing offices to include less toxic goods and products in its procurement process. The petitioner shall submit, prior to or during the procurement process, documentation which establishes that the goods or products meet the performance standards set forth in the applicable specifications. If an agency determines that the documentation establishes that the less toxic goods or products meet the performance standards set forth in the applicable specifications, it shall incorporate such goods or products into its procurement process. Agencies have been July 2021 version

instructed to revise their procedures and specifications on a continuing basis to encourage the use of these products; however, they are not required to purchase, test, or evaluate any particular good or product other than those that would be purchased under regular purchasing procedures (Code of Virginia, § 2.2-4314).

d. Coal. There is a preference for Virginia mined coal used in state facilities. In determining the award of any contract for coal to be purchased for use in state facilities with state funds, DPS shall procure using competitive sealed bidding and shall award to the lowest responsive and responsible bidder offering coal mined in Virginia, so long as its bid price is not more than four percent greater than the bid price of the low responsive and responsible bidder offering coal mined elsewhere (Code of Virginia, § 2.2-4325).

e. Recycled Oil and Recycled Antifreeze Preference. The preference applies to lubricating oils containing re-refined oil or reprocessed oil, including engine lubricating oils, hydraulic fluids, and gear oils, excluding marine and aviation oils and reclaimed engine coolants, excluding coolants used in non-vehicular applications. It also applies to recycled antifreeze and other lubricants such as transmission, hydraulic and specialty oils, brake fluid and greases. Recycled oils shall meet American Petroleum Institute (API) and original equipment manufacturers (OEM) standards and shall be API or equivalently certified. Recycled antifreeze (ethanol glycol) shall meet OEM standards and shall meet the cooling, freeze protection and corrosion resistance requirements of gasoline, diesel, propane, and natural gas engines with or without aluminum blocks.

Preference shall be given to products containing recycled oil and/or antifreeze, so long as the price is not more than 10% greater than the price of a non-recycled oil and/or antifreeze meeting specification and certification requirements.

f. Use of Recycled Goods or Products. Any person who believes that particular goods or products with recycled content are functionally equivalent to the same goods or products produced from virgin materials may petition the procuring agency or institution to include the recycled goods or products in its procurement process. The petitioner shall submit documentation which establishes that the goods or products (i) contain recycled content and (ii) can meet the performance standards set forth in the applicable specifications prior to bid/proposal due date. If the procuring agency or institution which receives the petition request determines that the documentation demonstrates that the goods or products with recycled content will meet the performance standards set forth in the applicable specifications, it shall incorporate such goods or products into its procurement process. (See Code of Virginia § 2.2-4313.)

g. Enhancement or Remedial Measures: Measures authorized by the Governor pursuant to § 2.2-4310 relating to Small Business Enhancement Programs that allow for small businesses certified by the DSBSD or a subcategory of small businesses established as a part of the enhancement program to have a price preference over noncertified businesses competing for the same contract award, provided that the certified small business or the business in such subcategory of small businesses does not exceed the low bid by more than five percent.

h. Energy-Efficient and Water-Efficient Goods. If a Commonwealth agency or institution receives two or more bids for products that are Energy Star certified, meet the Federal Energy Management Program (FEMP) July 2021 version

designated efficiency requirements, appear on FEMP’s Low Standby power Product List, or are WaterSense certified, the agency or institution shall only select among those bids. These classifications may be found on Energy Star’s website at: https://www.energy.gov/eere/femp/federal-energy-management-program.

1. 9 Open Records. Procurement proceedings, records, contracts, and orders are public records, open to the inspection of any citizen or any interested person, firm or corporation, in accordance with the Virginia Freedom of Information Act (Code of Virginia, § 2.2-3700 et seq.). Cost estimates relating to a proposed procurement transaction prepared by or for a state agency shall not be open to public inspection (Code of Virginia, § 2.2-4342B). Bid and proposal records are not available to the public for inspection until after the award except that any bidder, upon request, shall be afforded the opportunity to inspect bid records within a reasonable time after the opening and evaluation of all bids but prior to award, except in the event that the public body decides not to accept any of the bids and to rebid.

Any competitive negotiation offeror, upon request, shall be afforded the opportunity to inspect proposal records within a reasonable time after the evaluation and negotiation of proposals are completed but prior to award, except in the event that the public body decides not to accept any of the proposals and to resolicit.

Despite the preceding restrictions as to when bidders, offerors, and the general public may inspect bid and proposal records, once bids have been publicly opened and their prices announced, the names of the bidders and their bid prices may be disclosed to anyone. Likewise, the identity of offerors submitting proposals in the competitive negotiation process may be disclosed.

Unsealed bid and proposal records shall be open to inspection by any citizen, interested person, firm, or corporation under the Virginia Freedom of Information Act only after contract award.

Record inspections are subject to reasonable restrictions to protect security and integrity (Code of Virginia, § 2.2-4342E).

Procuring agencies may charge reasonable costs for copying, search, and computer time, not exceeding actual costs. An estimate will be provided upon request (Code of Virginia, § 2.2-3704F).

Trade secrets or proprietary info submitted in procurement shall not be publicly disclosed under FOIA; protections must be invoked by the bidder or offeror.

1. 2-4342F, prior to or upon submission of the data or other materials, and must identify the data or other materials to be protected and state the reason why protection is necessary. The proprietary or trade secret material submitted must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire bid or proposal document, line item prices and/or total bid or proposal prices as proprietary or trade secrets is not acceptable. If, after being given reasonable time, the bidder or offeror refuses to withdraw an entire classification designation, the bid or proposal will be rejected. July 2021 version

1. 10 Cooperative Procurement.

a. The Code of Virginia, § 2.2-4304 authorizes public bodies to participate in, sponsor, conduct, or administer joint procurements to satisfy requirements for goods and non-professional services. Any authority, department, division, institution, officer, agency, and other unit of state government, hereinafter called the agency, must comply with the following requirements, and all such purchases shall be made through eVA. In addition, joint contracts or arrangements under which any fees, incentives or financial terms, direct or indirect, may be rebated, paid, or credited to Commonwealth using agencies require the approval of DGS/DPS before any order or commitment can be made by the using agency.

b. Use of Commonwealth Cooperative Contracts: Agencies desiring to purchase from cooperative contracts for non-telecommunications and non-technology goods and nonprofessional services as set forth in §2.2-4304 may do so without regard to their delegated purchasing authority when all the following conditions are met: (1) no DGS/DPS contract exists for the same or similar goods and services; (2) the contracts were awarded by Commonwealth agencies or institutions; (3) the agency participated in the request for proposal or invitation to bid or the contract original solicitation specified that the procurement was being conducted on behalf of other public bodies; (4) the contracts are posted on the eVA State Contracts listing to assure public visibility of the full terms and pricing of such contracts and any amendments; and (5) the contractors are registered in eVA and agree to the Commonwealth's General Terms and Conditions, any other terms and conditions, and any other considerations for doing business with the Commonwealth.

c. Use of Non-Commonwealth Cooperative Contracts, including National Cooperatives awarded by other than Commonwealth agencies and institutions: These cooperatives are not authorized unless approved in writing by DGS/DPS. Authorized cooperative contracts awarded by other than Commonwealth agencies are posted on the eVA State Contracts listing to assure public visibility of the full terms and pricing of such contracts after DGS/DPS determines that the contracts comply with §2.2-4304; that prices are fair and reasonable; that Virginia businesses have been afforded access to participate; that the contractors are registered in eVA; and that contractors agree to the Commonwealth's General Terms and Conditions, any other terms and conditions, and any other considerations for doing business with the Commonwealth.

d. General Services Administration (GSA) or other U.S. Government Contracts: As authorized by the United States Congress and consistent with applicable federal regulations, and provided the terms of the contract permit such purchases, § 2.2-4304 of the Code of Virginia permits any authority, department, agency, or institution of the Commonwealth to purchase goods and nonprofessional services, other than telecommunications and information technology, from a U.S. General Services Administration contract or a contract awarded by any other agency of the U.S. government, upon approval of the Director of the Division of Purchases and Supply of the Department of General Services for non-technology purchases and the Commonwealth’s Chief Information Officer for technology purchases. For non-IT general purchases only one GSA Schedule has been approved for use by Congress, Schedule 84. Certain law enforcement, drug interdiction, and emergency operations programs have been granted authority by Congress to use any GSA Schedule subject to GSA guidelines as to when they may be used.July 2021 version July 2021 version

CHAPTER 2

PROCUREMENT METHODS

In this Chapter look for . . .

1. 1 Policy
2. 2 Exceptions from Competitive Bidding
3. 3 Small Purchase Procedures
4. 4 Sealed or Formal Bids
5. 5 Two-Step Sealed Bidding
6. 6 Competitive Negotiation
7. 7 Deleted
8. 8 Emergency Procurement
9. 9 Sole Source Procurement
10. 10 Public Auction Sale
11. 11 Reverse Auction
12. 12 Prequalification

1. 1 Policy.

a. Contracts with nongovernmental sources for the purchase, lease or rental of goods, printing, insurance, nonprofessional services, and construction, shall be awarded after competitive sealed bidding, or competitive negotiation as provided in this manual, unless otherwise authorized by law. Competition shall be sought to the maximum feasible extent. A sufficient number of sources must be solicited for the procurement of goods or services consistent with the method of procurement used. In the solicitation, awarding or administration of contracts, no agency shall discriminate against a bidder, offeror, or contractor because of the race, religion, color, sex, age, disability, national origin, sexual orientation, gender identity, political affiliation, or veteran status, or any other basis prohibited by state law relating to discrimination in employment (Code of Virginia, § 2.2-4310A; Executive Order 1 (2014)).

To implement the policy of Executive Order 61 (2017) that Executive Branch agencies will only contract with those who abide by the non-discrimination policies in Executive Order 1 (2014), all Executive Branch entities shall include in their solicitations where the estimated value is greater than $10,000 General Term and Condition C - ANTI-DISCRIMINATION subparagraph 1.f, unless the state agency, department or institution issuing the solicitation has made a written determination not to include subparagraph 1.fin General Term and Condition C. This written determination may be made upon good cause shown by a request from a faith-based organization, based upon consideration of other applicable laws or regulations, and must be made prior to the close date. The written determination and any request for the written determination shall be maintained in the procurement file. All Invitations to Bid and Request for Proposals should also explicitly state that faith-based July 2021 version

organizations, otherwise qualified to respond to the Initiation to Bid or Request for Proposal, may request that the agency not include subparagraph 1.f. in General Terms and Condition C. Such a request should be in writing and explain why an exception should be made in that Invitation to Bid or Request for Proposal. For the purposes of this provision, a “faith-based organization” is (1) an entity organized for the purposes of engaging in religious practice or (2) a charitable or educational organization affiliated with such an entity.”

The decision not to include subparagraph 1.f. in General Terms and Condition C does not indicate that any contractor or subcontractor is permitted to engage in discrimination in the provision of goods and services on behalf of the Commonwealth such that no person is excluded from participation in, denied the benefits of, or subjected to discrimination in the administration of public programs and services based on non-merit factors such race, sex, color, national origin, religion, sexual orientation, gender identity, age, political affiliation, disability, or veteran status. Such discrimination would itself constitute a violation of any contract or subcontract to provide goods and services to the public on behalf of the Commonwealth.

In addition it is the policy of the Commonwealth of Virginia to contribute to the establishment, preservation, and strengthening of small businesses and businesses owned by women and minorities and to encourage their participation in state procurement activities. Towards that end, the Commonwealth encourages firms to provide for the participation of such businesses through partnerships, joint ventures, subcontracts, and other contractual opportunities. In addition, all Commonwealth employees with purchasing responsibility who are involved in procurement decisions for goods and services are expected to notify and give every consideration to using qualified small business including micro business suppliers of procurement opportunities in a manner that is consistent with state and federal laws and regulations and with the provisions set forth in this manual. Whenever the agency or institution engages in a solicitation or request for quotes, it will include businesses selected from the list made available by the Department of Small Business and Supplier Diversity (DSBSD) and eVA web sites, www.sbsd.virginia.gov and www.eva.virginia.gov.

This shall include DSBSD-certified women, minority, and service disabled veteran owned businesses when they also hold a DSBSD certification as a small business.

b. Certified Vendors. For purposes of any particular procurement a vendor shall be considered a Micro Business or Small Business if and only if the vendor holds a certification, as such by the DSBSD by the due date for receipt of bids or proposals for the procurement in question. DSBSD-certified women, minority, and service disabled veteran owned businesses shall also be considered micro or small businesses for a particular procurement if they hold a DSBSD micro or small business certification on the due date for receipt of bids or proposals for that procurement. The eVA vendor certification data is provided by DSBSD.

c. Small Business Subcontracting Plan. In accordance with the Commonwealth’s policy of facilitating and maximizing the participation of small businesses, which includes businesses owned by women, minorities, and service disabled veterans when their businesses have also received DSBSD small business certification, in its purchasing programs, an evaluation criterion for all procurements in excess of $100,000 shall be a Small Business Subcontracting Plan. This requirement is to ensure July 2021 version

DSBSD-certified small business participation, which will assist efforts toward achieving the statewide goal of 42% of the Commonwealth’s discretionary spending in combined prime and subcontracts for DSBSD-certified small businesses.

d. Set-Aside for Award Priority. The goal of the Commonwealth is that more than 42% of its purchases be made from small businesses. "Small businesses" are those which have received certification from DSBSD by the due date for receipt of bids or proposals, including those small businesses (including micro) that are also DSBSD certified as women, minority and/or service disabled veteran owned businesses.

Award of a contract shall be made in order of the Small Business Enhancement Award Priority as follows:

Small Business Enhancement Award Priority

Awards under $10,000: For competitive purchases under $10,000, the award of a contract shall be made to the lowest priced or highest ranked DSBSD-certified micro business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such micro business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder. If there are no reasonably priced bids/offers meeting the above criteria received from certified micro businesses, an award shall be made to the lowest priced or highest ranked DSBSD-certified small business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such small business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder If there are no reasonably priced bids or offers meeting the above criteria received from certified micro or small businesses, an award may be made to the lowest priced bidder or highest ranked offeror of any size that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if the price is fair and reasonable. If the agency or Institution determines and documents that no bid/offered price is fair and reasonable then the procurement may be cancelled and re-solicited removing the set-aside award priority.

Awards over $10,000 up to and including $100,000: For purchases over $10,000 up to and including $100,000, an award shall be made to the lowest priced or highest ranked DSBSD-certified small business bidder/offeror that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if such small business bid or offer is available and the price is fair and reasonable. For unsealed bidding the bid price shall not exceed 5% of the lowest responsive and responsible noncertified bidder. If there are no reasonably priced bids/offers meeting the above criteria received from certified micro or small businesses, an award may be made to the lowest priced bidder or highest ranked offeror of any size that is responsive and responsible (for bids) or fully qualified and most suitable (for proposals) if the price is fair and reasonable. If the agency or Institution determines and documents that no bid/offered price is fair and reasonable then the procurement may be cancelled and re-solicited removing the set-aside award priority. July 2021 version

Set-aside Award Priority: Micro Business Set-Aside Award Priority Up to and including $10,000.00 1) Micro Business 2) Small Business 3) Open to all Small Business Set-Aside Award Priority Over $10,000 up to and including $100,000 1) Small Business (including micro businesses) 2) Open to all

When setting aside procurements, there must be adequate competition to ensure the Commonwealth continues to obtain fair and reasonable prices and the orders must be placed through eVA. Set-asides do not apply to mandatory sources or non-mandatory sources such as the Virginia Industries for the Blind, Virginia Correctional Enterprises, Employment Services Organizations, as well as purchases made from existing mandatory or optional state contracts, nor does it apply to classifications of goods/services specifically exempted from competitive requirements by DPS.

Bidders and subcontractors must have received their DSBSD certification as a small business by the solicitation due date in order to be considered responsive.

1. 2 Exceptions from Competitive Requirements. DGS/DPS has determined that competition is normally not practicable or available for the following circumstances:

a. Purchases up to and including $10,000.

b. The following selected categories of goods and services up to and including $100,000:

Books, materials, subscriptions, audio/video cassettes, CDs, slides, etc., available only from publisher/producer.

(2) Academic/research consulting services.

Purchases of used equipment, including from auctions.

Honoraria and entertainment (speakers, musicians, artists).

(5) Deleted.

(6) Royalties and film rentals when only available from the producer or protected distributors.

(7) Professional Organizational Membership dues.

(8) Writers. July 2021 version

(9) Artists (does not include graphic artists); original works of art; and original, or authentic antique period art frames (does not include newly created replacement or reproduction frames).

(10) Photographers other than for graduations and yearbooks, e.g., for official photographs/portraits.

(11) University contributions and donations.

(12) Advertisements in newspapers, magazines, journals, radio, TV, etc.

(13) Utility charges.

(14) Conference facilities, including support, lodging, and meals, when use is directed by an outside donor, sponsor, or organization.

(15) Accreditation fees and academic testing services.

(16) Exhibition rental fees for historical artifacts or original art; may include other charges like transportation.

(17) Rare historic manuscripts, printed, photographic materials (e.g., books, ephemera, maps, photographs, prints) that are unique or limited.

(18) Purchases for testing or evaluation (limited to a one-time purchase of quantities considered necessary for complete and adequate testing).

c. Purchases from the federal government, other states and their agencies or institutions, and public bodies.

d. Purchase of Virginia-grown food products for use by a public body where the annual cost of the product is up to and including $100,000. (Does not include catering services)

1. 3 Small Purchase Procedures

a. Single Quotation (up to and including $10,000). Where the agencies’ or institutions’ estimated cost of goods or nonprofessional services is up to and including $10,000, unless exempted, purchases shall be made upon receipt of a minimum of one (1) written or telephone (oral) quotation or Quick Quote may be used, from a DSBSD-certified micro business, if available. An e-Mall catalog (non-contract) price from a DSBSD-certified micro business, if available, can be considered a quote, provided the agency determines the price to be fair and reasonable. Additional small business sources may also be solicited. If more than one quote is solicited, the award will be made to the lowest responsive and responsible DSBSD-certified micro business bidder, provided the agency determines the price to be fair and reasonable.

b. Informal Solicitations (over $10,000 up to and including $100,000). July 2021 version

1. Unsealed Bidding. Quick Quote is the preferred sourcing tool for bids or quotes on goods and nonprofessional services over $10,000 up to $100,000.

Vendors must be registered in eVA in order to respond to Quick Quotes in eVA. Quick Quote responses must be submitted in one of the following ways to be considered responsive: electronic submission through eVA or printed Quick Quote paper response form submitted in person, by fax, mailed, or as an attachment to an email received prior to the bid due date and time.

Unsealed bidding may be used in lieu of Quick Quote for complex procurements. If Quick Quote is not used, agencies shall utilize the funictionality in eVA to publically post the solicitation.

Bidders shall provide their DSBSD-certified small business (including micro) number on set-aside solicitations. eVA VBO public posting is required if the solicitation exceeds $10,000.

Procurements under $10,000 shall be set-aside exclusively for award to DSBSD-certified micro businesses if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority (3.10g). The solicitation shall designate in the title of the solicitation that the procurement is set-aside for micro businesses.

Procurements over $10,000 and up to and including $100,000 shall be set-aside exclusively for award to DSBSD-certified small businesses (including micro) if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority (3.10g). The solicitation shall designate in the title of the solicitation that the procurement is set-aside for small businesses.

Award should be made to the lowest responsive and responsible bidder in accordance with the Small Business Enhancement Award Priority

1. Unsealed Request for Proposals. Agencies and institutions may obtain required goods or nonprofessional services using the Unsealed Request for Proposal process up to and including $100,000. Offerors shall provide their DSBSD-certified small business (including micro) number on set-aside solicitations. eVA VBO advertising is required. A written determination for the use of competitive negotiation is not required for Unsealed Request for Proposals.

Procurements under $10,000 shall be set-aside exclusively for award to DSBSD-certified micro businesses if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an award may be made in accordance with the Small Business Enhancement Award Priority. The solicitation shall designate in the title of the solicitation that the procurement is set-aside for micro businesses.

Procurements over $10,000 and up to and including $100,000 shall be set-aside exclusively for award to DSBSD-certified small businesses (including micro) if available and the price is fair and reasonable. If prices do not appear to be fair and reasonable, the agency shall document the procurement file to that effect, including stating the basis for the determination, and then an July 2021 version

award may be made in accordance with the Small Business Enhancement Award Priority. The solicitation shall designate in the title of the solicitation that the procurement is set-aside for small businesses.

In lieu of an evaluation committee, the buyer or end user may solely evaluate and rank offers.

Upon completion of the evaluation, negotiations shall be conducted with the offerors selected.

Award should be made to the highest ranking offeror in accordance with the Small Business Enhancement Award Priority.

1. 4 Sealed (Formal) Bids. Written sealed bids are required for goods or nonprofessional services when the estimated cost is over $100,000. The solicitation will be publicly posted on the DGS/DPS eVA website (www.eva.virginia.gov) at least ten days prior to the date set for receipt of bids. This also applies to two-step sealed bidding. Written sealed bids received are held, unopened, until the date and time set in the solicitation, at which time they are publicly opened and the following information is read aloud:

• bidders’ names;

• unit prices, lot prices, or total prices, as applicable;

• discount terms offered, if considered in award; and

• brand names and model numbers if requested.

Bids will be evaluated and awarded based on the requirements in the solicitation.

1. 5 Two-Step Sealed Bidding. Two-step bidding is a method of procurement designed to expand the use and obtain the benefits of competitive sealed bidding where the lack of adequate specifications or rapid changes in the state of the art or technology make it more advantageous to the Commonwealth to first request unpriced technical proposals. . In such instances an IFB is issued requesting the submission of unpriced technical proposals, to be followed by an IFB for a price, limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation. There is no negotiation in the two-step competitive bid process; however, the agency at its option may request information from bidders to clarify material contained in their technical proposals. The process consists of two steps, as follows:

a.Step One: An Invitation for Bids (IFB) is issued requesting the submission of unpriced offers. The solicitation describes the agency’s requirement in general terms and asks for a technical proposal describing how the bidder intends to meet the agency’s requirements and what goods, equipment, and service, as applicable, will be furnished. Specify any mandatory technical data and information to be submitted in the proposal and any optional information desired. The cover sheet should explain the two-step procedure and emphasize that the technical proposal is not to include the bid price. The agency then evaluates and selects those proposals which will meet its needs, based on the mandatory criteria specified in the solicitation. The evaluators may request written or oral discussions from bidders to clarify or amplify the material in the proposal. The contents of the technical proposal are not subject to negotiation and must be evaluated as submitted. They are not ranked but are determined to be acceptable or not acceptable for meeting the agency’s needs. July 2021 version

b. Step Two. An IFB is then prepared and distributed to only those bidders whose offers have been qualified in the first solicitation. The IFB includes a pricing schedule, reference to the request for a technical proposal title and number, and a specific date and time is set for receipt of sealed bids. Sealed bids must be held unopened in a secure area until the date and time established for opening in the solicitation. A public opening is held. Bids are evaluated and the contract is awarded to the lowest responsive and responsible bidder. There is no negotiation in the two-step competitive bid process; however, the Commonwealth at its option may request information from a bidder to clarify material contained in the technical proposal.

Combined Two-Step. The two steps can be combined to require the submission of the technical proposal and price at the same time in separate sealed envelopes. Each envelope must be identified showing “Technical Proposal” or “Bid Price” as appropriate, the bidder's name and address, and the bid reference number. In this procedure, the technical proposals are opened and evaluated as described in 2.5.a, then, only the price envelopes for those technical proposals selected as acceptable are opened. The award is made to the lowest responsive and responsible bidder. The award document will incorporate by reference the terms and conditions of the solicitation and include the contractor’s technical proposal and the bid price. For late sealed bids the envelope shall be date and time stamped, marked “late” and retained unopened in the procurement file.

1. 6 Competitive Negotiation (Applies to sealed solicitations for other than Professional Services).

Competitive negotiation may be used for procurement of goods, services, or insurance (Code of Virginia, § 2.2-4302.2). In competitive negotiation, a written Request For Proposal (RFP) is issued that describes in general terms what is to be procured, the criteria to be used in evaluating the proposal, an indication of whether a numerical scoring system will be used in the evaluation of proposals, the applicable contractual terms and conditions, including any unique capabilities or qualifications required of the contractor. The weights assigned to the evaluation criteria shall also be posted in the location used for public posting of procurement notices prior to the due date and time if the weights were not included in the RFP. A breakout of subcomponent weights need not be listed. If competitive negotiation is used for a purchase expected to be $100,000 or less, it shall be Set-aside in accordance with the Small Business Enhancement Award Priority, unless exempted.

The RFP notice will be posted publicly on the DGS/DPS eVA website at least ten days before the due date and may also be published in a local newspaper.

Sealed proposals are held unopened until the deadline; public openings are not required.

Selection shall be made of two or more offerors deemed to be fully qualified and best suited among those submitting proposals, on the basis of the criteria involved in the Request for Proposal, including price if so stated in the Request for Proposal. Negotiations shall then be conducted with each of the offerors so selected. Price shall be considered, but need not be the sole determining factor. After negotiations have been conducted with each offeror so selected, the public body shall select the offeror which, in its opinion, has made the best proposal, and shall award the contract to that offeror. Should the public body determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly July 2021 version

more highly qualified than others, a contract may be awarded to that offeror.

1. 7 Deleted

1. 8 Emergency Procurement. In case of emergency, a contract may be awarded without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances. The writing shall document the basis for this determination. All emergency procurement award notices shall be posted on eVA (Code of Virginia, § 2.2-4303) and at a minimum state that the procurement has been declared an emergency and must also state that which is being procured, the contractor selected, and the date on which the contract was or will be awarded. Public award notices may be posted at locations in addition to posting on eVA, at the discretion of the entity (public posting notice board, entity website, newspaper, etc.) on the day the decision to award is announced or the award is made, whichever occurred first, or as soon thereafter as is practicable.

1. 9 Sole Source Procurement.

a. If only one source is practicably available (written documentation required), a contract may be awarded without competition. Sole source notices will be posted on eVA and at least state the procurement, contractor, and award date. Additional public notices may be posted at the entity’s discretion.

b. Deleted

1. 10 Public Auction Sale.

1. Public Auction Sale. If a public body determines in writing that purchasing non-technology goods at an auction is in the public’s best interest, such items may be bought. The basis must be documented. (Code of Virginia, § 2.2-4303).

a. Public auction sale (non-electronic) may be used up to the Agency’s delegated authority.

b. Participation in online public auctions is not permitted.

c. Set-aside for DSBSD-certified small businesses unless exempted.

1. 11 Reverse Auction: The purchase of non-technology goods or nonprofessional services, may be made by utilizing the Reverse Auctioning tool available in eVA. However, construction, professional services, or the bulk purchases of commodities used in road and highway construction in July 2021 version

maintenance, and aggregates shall not be made by reverse auctioning (Code of Virginia, § 2.2-

4303.I.).

a. Agencies are authorized to conduct reverse auctions up to the agency’s delegated authority using Reverse Auctioning tools in eVA.

b. eVA VBO advertising is required over $10,000.

c. Quick Quote Reverse Auctioning:

i. The reverse auction shall be open for the period of time stated but must be open for at least three (3) business days (24 business hours). ii. Procurements up to and including $100,000 shall be Set-aside in accordance with the Small Business Enhancement Award Priority, unless exempted. iii. The closing time may not be extended. iv. The maximum number of line items allowed for reverse auctioning is six (6). A bid is required for each line. $0.00 is an acceptable line item bid and shall not be deemed to constitute a “no bid” but the bidder will be expected to provide that line item at no cost. v. Awards shall only be made on grand total basis. vi. Receipt of Bids – Only eVA registered vendors can participate. Paper responses are not allowed. A bidder must participate electronically.

1. 12 Prequalification. It is sometimes necessary to qualify potential contractors or test products in advance of any procurement to determine if they meet the state's requirements. The criteria for prequalification will be made public to allow potential suppliers or contractors a fair opportunity to qualify for future recurring requirements. The state will be the sole judge of when prequalification of contractors or products is required. A state public body shall deny prequalification to contractors failing to register and participate in E-Verify. Any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program to verify information and work authorization of its newly hired employees performing work pursuant to such public contract. (Code of Virginia, § 2.2-4317) (Code of Virginia, § 2.2-4308.2).

For services, contractors’ capabilities, qualifications, equipment, and past performance are evaluated; those meeting criteria are placed on a Qualified Contractors List (QCL).

Interested suppliers are encouraged to submit products for QPL qualification, which are tested for compliance with state standards.

Products meeting qualification are placed on the QPL for that product.

Whenever qualified products or services are to be procured only bids or proposals offering products or services that have been prequalified and are listed on a QCL or QPL at the time of the bid or proposal opening can be considered. July 2021 version

The listing of a service or product on a QCL or QPL does not mean endorsement by the state or that the state in any way recommends the service or product offered. Also, the listing of a service or product does not release the contractor or supplier from compliance with contract specifications and requirements for the service or product being purchased. Statutory guidance on prequalification of prospective contractors for construction is contained in Code of Virginia, § 2.2-4317. July 2021 version

CHAPTER 3

GENERAL REQUIREMENTS OF VENDORS

In this Chapter look for . . .

1. 1 Application and Registration
2. 2 Changes in Registration
3. 3 Visits by Vendors
4. 4 Vendor Assistance to State Agencies
5. 5 Personal Interest and Gifts
6. 6 Prohibited Participation
7. 7 Responsible Bidder or Offeror
8. 8 Responsive Bidder
9. 9 Copyright
10. 10 Ownership of Artwork, Negatives and Other Submitted Information, etc.
11. 11 Deleted
12. 12 Prohibited Contracts
13. 13 Subsequent/Additional Bid/Proposal for the Same Procurement
14. 14 Virus-free and Accessible Submittals
15. 15 Authorization to Transact Business in the Commonwealth
16. 16 E-Verify Program

1. Application and Registration. Vendors must register in eVA to do business with state agencies. Visit www.eva.virginia.gov, click on 'I Sell to Virginia' then 'Tools' and 'eVA Vendor Training' or https://eva.virginia.gov/eva-vendor-training.html. Registration is free; other fees may apply. Registered vendors receive email notifications of requirements. Many subdivisions also use eVA for orders.

The information submitted on the registration will be used in determining the types of materials, equipment, supplies, or services for which the vendor will receive solicitations. Each purchasing office reserves the right to verify the vendor's capability prior to making an award. It is the responsibility of each vendor to maintain a current and accurate registration account in eVA. Vendors not registered with DGS/DPS who wish to respond to any of the Commonwealth’s solicitations submitting an online electronic bid or proposal using eVA must first register in eVA. Applicants must allow sufficient time for the application to be processed. To be considered for an award, vendors must register in eVA prior to award. A paper registration package can be obtained by calling 1-866-289-7367. All purchase transactions, regardless of funding source, governed by the VPPA shall be processed through eVA to eVA registered vendors unless otherwise excluded in 14.9 b of the APSPM. Any purchases processed outside eVA will continue to be governed by applicable law and by July 2021 version

Non-eVA policies follow this manual and the APSPM in effect at the time of transaction.

1. 2 Changes in Registration. It is the vendor's responsibility to keep current the registration information.

Any changes in company name or FEIN number can only be made by an authorized eVA customer care representative. Requests should be emailed to evacustomercare@dgs.virginia.gov. All other changes to a vendor’s registration account should be made by an authorized company representative.

1. 3 Visits by Vendors. Visits by vendors or their representatives to purchasing offices are welcomed and encouraged. In order that the staff and vendors may schedule their time productively, an appointment is suggested. Appointments with DPS Statewide Sourcing and Contracting Officers, Lead Statewide Sourcing and Contracting Officers or Deputy Directors of Sourcing and Contracting may be scheduled Monday through Friday on official business days from 9:00 a.m. to 4:00 p.m. (phone 804-786-3842).

Other state agencies establish their own hours.

1. 4 Vendor Assistance to State Agencies. Vendor sales efforts of a consultative or advisory nature are encouraged. They assist agencies in keeping current with the latest state of the art technology and materials and are a valuable source of information. The furnishing of product or service information by a vendor is considered to be normal sales effort and does not entitle the vendor to preferential treatment in the awarding of contracts (see 3.6b). A vendor may offer, without compensation, assistance to agency personnel in developing specifications for a requirement and compete on that requirement. A purchasing office may provide the specifications to competing vendors for comment before issuing the solicitation (see 3.6b).

1. 5 Personal Interest, Donations, and Gifts. No vendor shall offer any gift, gratuity, favor, or advantage to any state employee who exercises official procurement responsibility, develops procurement requirements, or otherwise influences procurement decisions. State employees may attend vendor-sponsored seminars or trade shows where the buying staffs will benefit from receiving product information and learning of new techniques and trends. If an employee’s attendance at such an event is approved by the employee’s agency, food, drinks, and give-away items offered to all participants at such functions are considered to be provided to the agency rather than to the employee and may be accepted by state employees attending.

No agency may solicit or accept donations, gifts, grants, or contracts without Governor’s written approval, except per guidelines for nongeneral funds. Sponsorships exceeding nominal value are donations and must comply with the Appropriation Act.

Vendors and employees cannot exchange items exceeding nominal value at Expo events, including distributions at booths for educational purposes.

Political Contributions Prohibited During Procurement Process.

a. Pursuant to Code of Virginia § 2.2-3104.01, neither the Governor, his political action committee, or the Governor's Secretaries, if the Secretary is responsible to the Governor for an agency with July 2021 version

Jurisdiction over matters, shall knowingly solicit or accept a contribution, gift, or item over $50 from any bidder, offeror, or private entity, or officer/director of such, who submitted a bid or proposal under Virginia Public Procurement Act § 2.2-4300 between bid submission and contract award.

b. Pursuant to Code of Virginia § 2.2-3104.01, the provisions of this section shall apply only where the stated or expected value of the contract is $5 million or more. The provisions of this section shall not apply to contracts awarded as the result of competitive sealed bidding as defined in Code of Virginia § 2.2-4301.

c. Pursuant to Code of Virginia § 2.2-4376.1, no bidder or offeror who has submitted a bid or proposal to a state agency for the award of a public contract pursuant to the Virginia Public Procurement Act (Code of Virginia § 2.2-4300 et seq.), and no individual who is an officer or director of such a bidder or offeror, shall knowingly provide a contribution, gift, or other item with a value greater than $50 or make an express or implied promise to make such a contribution or gift to the Governor, his political action committee, or the Governor's Secretaries, if the Secretary is responsible to the Governor for an agency with jurisdiction over the matters at issue, during the period between the submission of the bid and the award of the public contract pursuant to the Virginia Public Procurement Act (Code of Virginia § 2.2-4300 et seq.) The provisions of this section shall apply only for public contracts where the stated or expected value of the contract is $5 million or more. The provisions of this section shall not apply to contracts awarded as the result of competitive sealed bidding.

d. Pursuant to Code of Virginia § 2.2-3104.01 and § 2.2-4376.1 respectively, any person who violates the aforementioned code sections shall be subject to a civil penalty of $500 or up to two times the amount of the contribution or gift, whichever is greater. The attorney for the Commonwealth shall initiate civil proceedings to enforce the civil penalties. Any civil penalties collected shall be payable to the State Treasurer for deposit to the general fund.

e. Agencies shall include the form contained in APSPM Annex 3-J, “Certification of Compliance with Prohibition of Political Contributions and Gifts During the Procurement Process” in solicitations/contracts where the stated or expected value of the contract is $5 million or more except those awarded as the result of competitive sealed bidding.

1. 6 Prohibited Transactions.

a. From Architect or Engineer.

(1) No building materials, supplies, or equipment for any building or structure constructed by or for a public body shall be sold by or purchased from any person employed as an independent contractor by the public to furnish architectural or engineering services, but not construction, for such building or structure; or from any partnership, association, or corporation in which such architect or engineer has a personal interest as defined in Code of Virginia, § 2.2-3101 and § 2.2-4374A. July 2021 version

(2) No building materials, supplies, or equipment for structures built by or for a public body shall be sold or purchased from persons providing sole-source design services for such materials where such person has a personal interest as defined in Virginia Code § 2.2-3101 and § 2.2-4374B.

(3) The provisions in (1) and (2) do not apply in emergencies or for transportation projects by the Department of Transportation.

(4) These provisions do not apply to architectural or engineering services under design/build contracts § 2.2-4306.

b. Other Contractors. An independent contractor employed or otherwise paid by a state agency to design a project, develop a scope of work, write specifications, or otherwise define contract requirements is not eligible to compete for or receive the resulting contract, except in cases of emergency, when only one source is practicably available for both the defining of contract requirements and the performance of those requirements or when the public body determines in writing that the exclusion of such vendor would limit the number of potential qualified bidders or offerors in a manner contrary to the best interests of the public body. In addition the contractor may not be a subcontractor or supplier for the entity which is awarded the contract or any of that entity’s subcontractors, however far removed. A vendor may offer, without consideration, assistance to agency personnel in developing specifications for a requirement and compete on that requirement; however, it is incumbent upon the agency buying staff to assure vendor provided specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor (Code of Virginia, § 2.2-4373).

c. Goods and Services. Subsequent/Additional Bid/Proposal for the Same Procurement. Submission of a subsequent bid/proposal, unless specifically identified as an amendment to a previously submitted bid/proposal, shall constitute an additional bid/proposal submitted by the same bidder or offeror on the same IFB/RFP. For information on amending or withdrawing bids/proposals, see Section 5.11.

The latest timestamped bid/proposal will be the only accepted for the solicitation.

d. All agencies, and institutions of higher education shall follow the requirements of Executive Order Seventy-Seven (2021), Virginia Leading by Example to Reduce Plastic Pollution and Solid Waste using the guidance issued by the Department of Environmental Quality (DEQ). The EO is broken into 3 parts: (1) ceasing the usage of specific items identified unless qualifying for an extension or exemption; (2) phasing out other single-use plastic and polystyrene objects over a period of 4 years to objects that are reusable, recyclable or compostable; and (3) reducing waste.

Additionally, agencies shall develop and submit plastic pollution reduction plans to DEQ. For specific information, visit the DEQ website https://www.deq.virginia.gov/get-involved/pollution-prevention/greening-the-government/waste-reduction. July 2021 version

1. 7 Responsible Bidder or Offeror. In determining a responsible bidder or offeror, a number of factors including, but not limited to, the following are considered. The vendor should:

a. be a regular dealer, supplier and/or an authorized dealer of the goods or services offered;

b. have the ability to comply with the required delivery or performance schedule, taking into consideration other business commitments;

c. have a satisfactory record of performance, however, conduct described in 7.20 (Causes for Debarment) ordinarily indicates nonresponsiblity. In considering the continued relevance of past conduct, the passage of time (or expiration of a related debarment) by itself should not be relied upon in most cases, but evidence of appropriate remedial actions of proven effectiveness taken subsequent to the conduct should be considered;

d. have a satisfactory record of integrity; and,

e. have the necessary facilities, organization, experience, technical skills, and financial resources to fulfill the terms of the purchase order or contract (See 9.5).

1. 8 Responsive Bidder. A responsive bidder means a person who has submitted a bid which conforms in all material respects to the Invitation for Bids. Examples of nonresponsiveness include, but are not limited to, failure to sign a bid, failure to return the required bid documents, substitution of terms, deletion of terms and conditions stated in the Invitation for Bids, and failure to offer a product or service that meets the requirements of the Invitation for Bids. A bidder who fails to provide prices for all categories of labor in the pricing schedule of a time and materials service contract is considered non-responsive. This is true whether the price was left blank or the bidder entered a figure of $0. Bidders who provide multiple prices for goods and services where a single price was solicited are also non-responsive.

1. 9 Copyright. No vendor may copyright any work contracted for by the Commonwealth and produced for the Commonwealth without the prior written consent of the agency or DPS.

1. 10 Ownership of Artwork, Negatives, and Other Submitted Information

a. All artwork, negatives, dies, overlays, or similar materials used to print a job shall be the property of the Commonwealth and must be returned to the requisitioning agency upon completion.

b. Ownership of all data, materials, and documentation originated and prepared for the state pursuant to a solicitation shall belong exclusively to the state and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Information on protecting trade secrets or proprietary information is found in 1.9.

1. 11 Deleted

1. 12 Prohibited Contracts. a. No state agency except for institutions of higher education as defined by §2.2-4321.1 H. shall contract for goods or services with a nongovernmental source if the source, or any affiliate of the source, is July 2021 version

subject to § 58.1-612 and fails/refuses to collect/remit sales tax within Virginia or income tax under Chapter 3 of Title 58.1; exceptions include payment agreements or pending appeals.

b. A state agency may contract with a prohibited source in emergencies or when the source is sole provider.

c. The determination of whether a source is a prohibited source shall be made by the Department of Taxation after providing the prohibited source with notice and an opportunity to respond to the proposed determination. The Department of Taxation shall notify the Department of General Services of its determination.

d. The Department of General Services shall post public notice of all prohibited sources on its public internet procurement website and on other appropriate websites.

e. The remedies provided in Article 5 (§ 2.2-4357 et seq.) shall not apply to any determination made pursuant to this section and the sole remedy for any adverse determination shall be as provided in subsection F.

f. Any source aggrieved by a determination of the Department of Taxation made under this section may apply to the Tax Commissioner for correction of the determination. The Tax Commissioner shall respond within 30 days of receipt of the application for corrective action. Within 10 days after receipt of the Tax Commissioner's response, the aggrieved source may appeal to the Circuit Court for the City of Richmond. If it is determined that the determination of the Department of Taxation was arbitrary, capricious, or not in accordance with law, the sole relief shall be restoration of the source's eligibility to contract with state agencies. No claim for damages or attorney's fees shall be awarded.

g. Subsequent/Additional Bid/Proposal for Same Procurement. Submission of a subsequent bid/proposal, unless specifically identified as an amendment to a previously submitted bid/proposal, shall constitute an additional bid/proposal submitted by the same bidder or offeror on the same solicitation. (See 5.11 through 5.15 for information on amending or withdrawing bids and Code of Virginia, § 2.2-4330 C. for Withdrawal of bid due to error.) The latest date/time stamped bid/proposal will be the only accepted bid/proposal for the solicitation

1. 13 Deleted

1. 14 Virus-free and Accessible Submittals. It is the responsibility of the vendor to ensure that any electronic submission transmitted to an agency or institution is virus-free and in a format (e.g. Microsoft Word or Excel, Adobe Acrobat, etc.) that is accessible by that agency or institution. Documents not accessible by the purchasing agency may be cause to determine the bid nonresponsive. July 2021 version

1. 15 Authorization to Transact Business in the Commonwealth.

a. In accordance with the Code of Virginia § 2.2-4311.2, every written contract shall include a provision that a contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 or as otherwise required by law.

b. Virginia § 2.2-4311.2 subsection B mandates that public bids include the SCC ID for bidders authorized to do business in Virginia under Title 13.1 or 50, or a statement explaining why not authorized.

c. Should a bidder/offeror omit including the SCC number or a statement describing why the bidder/offeror is not required to be so authorized on its bid/proposal, the agency, at its sole option, may allow the bidder/offeror additional time to provide the SCC Identification Number or a statement describing why the bidder/offeror is not required to be so authorized and continue the evaluation. An agency shall not award a contract to a bidder/offeror that fails to comply with § 2.2-4311.2 unless a waiver is granted by the Director of the Department of General Services or his designee.

d. For purposes of compliance with this section, agencies may rely on the accuracy of the bidder’s/offeror’s statement provided on the SCC Form describing why the bidder/offeror is not required to be so authorized per exclusions listed in Title 13.1 or Title 50 and are not required to validate. Any falsification or misrepresentation contained in the statement submitted by the bidder/offeror pursuant to Title 13.1 or Title 50 may be cause for debarment.

e. Bidders/offerors failing to provide required info won't be awarded unless a waiver is granted by the DGS Director or designee.

1. 16 E-VERIFY PROGRAM: Pursuant to Code of Virginia, §2.2-4308.2, any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program to verify information and work authorization of its newly hired employees performing work pursuant to such public contract. Any such employer who fails to comply with these provisions shall be debarred from contracting with any agency of the Commonwealth for a period up to one year. Such debarment shall cease upon the employer’s registration and participation in the E-Verify program. If requested, the employer shall present a copy of their Maintain Company page from E-Verify to prove that they are enrolled in E-Verify. July 2021 version

CHAPTER 4

SOLICITATIONS

In this Chapter look for . . .

1. 1 Selection of Bidders/Offerors
2. 2 Response Time
3. 3 Prebid or Preproposal Conference
4. 4 Receipt of Sealed Bids or Proposals
5. 5 Receipt of Unsealed Proposals
6. 6 Canceling or Amending a Solicitation
7. 7 Combining Responses to Separate Solicitations is Prohibited
8. 8 Postage
9. 9 Facsimile Bids or Proposals
10. 10 Late Bids or Proposals
11. 11 Bonds
12. 12 Insurance
13. 13 Specifications, Questions, and Comments
14. 14 Brand Names
15. 15 Contractor Registration (License)
16. 16 Notice of Pending Procurements

1. 1 Selection of Bidders/Offerors. All qualified vendors have access to state business. Vendors registered in eVA for the particular commodity or service will automatically receive an e-mail notification of the solicitation. Selection of additional vendors will be at the discretion of the state agency or institution. All Invitations for Bids, Requests for Proposals, sole source award notices, emergency award notices, and conceptual proposals received under a PPEA or PPTA shall be posted on the DGS central electronic procurement system, commonly known as eVA VBO. (Code of Virginia, § 2.2-1110). Addenda are also required to be posted. Any vendor not solicited may request a copy of the solicitation. When a Qualified Products List (QPL) or Qualified Contractors' List (QCL) has been established only those vendors whose products or services have been approved prior to bid or proposal opening will be considered for award.

Occasionally, procurements may be restricted to manufacturers, explicitly stated in the solicitation that only bids offering that manufacturer’s product will be considered.

1. 2 Response Time. Normally, the time set for return of sealed bids is fourteen (14) to seventeen (17) calendar days after publication of the IFB. The minimum time for receipt of a sealed bid or proposal will not be less than ten calendar days from the date issued. In addition, mandatory conferences or site visits will not be scheduled less than ten calendar days from the date the solicitation is issued and public notice requirements are completed. Vendors should check each solicitation to ascertain its due date. July 2021 version

1. 3 Prebid or Preproposal Conference. On complex, critical or high value procurements, a solicitation may contain a requirement to attend a prebid or preproposal conference. Attendance at conferences or site visits may be either optional or mandatory. The issuing agency may permit attendance through teleconferencing or videoconferencing. When mandatory attendance is stipulated in the solicitation, evidence of those in attendance must be maintained by the agency and only bids or proposals from those firms represented at the conference or visiting the site will be accepted. Vendors are cautioned that agencies are authorized to establish a cutoff time for late arrivals, after which no one will be permitted access to the conference.

Conferences during suspended operations will be rescheduled by the agency to allow proper notification.

1. 4 Receipt of Sealed Bids or Proposals.

a. General. The solicitation will state that written sealed bids or proposals are to be received by the issuing purchase office prior to the date and hour specified in the solicitation. Bid or proposal receipt deadlines and public openings scheduled during a period of suspended state business operations will be deemed rescheduled for processing at the appropriate times on the next regular business day. A special envelope or label may be furnished with the solicitation. It is imperative that the bid or offer be returned in this envelope. If return in the special envelope is not possible, the signed bid or proposal should be returned in a separate envelope or package, sealed and identified as follows:

From:

_____________________ ___________ _________ Name of Bidder/Offeror Due Date Time

_______________________ ________________________ Street or Box Number IFB or RFP No.

_______________________ ________________________ City, State, Zip Code IFB or RFP Title

Name of Contract/Purchase Officer/Buyer:

___________________________________________________

The envelope should be addressed as directed in the solicitation.

If not using the special envelope, mailed bids risk being opened or disqualified. Hand deliveries should be in the designated location; no other contents in the envelope.

Bidders should be careful when electing to use private courier services to deliver their bids or proposals to the contracting agencies. Many agencies have different addresses for hand delivery July 2021 version

versus the point of delivery established for postal delivery. It is solely the responsibility of the bidders/offerors to ensure that bids or proposals reach the designated address by the specified date and time shown on the solicitation.

b. Receipt of Bids for Highway and Construction Maintenance Programs. In procurement solicitations by the Department of Transportation by competitive sealed bidding for highway construction and maintenance contracts, the Department may accept bids in response to an Invitation to Bid at the Department’s central office or at district offices or other satellite locations designated in the Invitation to Bid, in accordance with specifications adopted by the Department. An Invitation to Bid may authorize agents of the Department to accept from bidders, on a voluntary basis, a supplemental submission referencing the total bid amount on a form prescribed by the Department.

Supplemental submission info may be made public after bid deadline and before opening, per Virginia § 2.2-4322.

1. 5 Receipt of Unsealed Proposals. The RFP for written unsealed proposals will state that they must be received by a date and time specified. Proposal receipt deadlines scheduled during a period of suspended state business operations will be deemed rescheduled for the appropriate times on the next regular business day. Special envelopes generally are not furnished. These proposals may also be hand delivered to the office issuing the solicitation. Unsealed proposal solicitations and responses may be electronic. Unsealed responses shall be received until the time and date specified in the solicitation.

1. 6 Canceling or Amending a Solicitation. An Invitation to Bid, a Request for Proposal, any other solicitation, or any and all bids or proposals, may be canceled or rejected. The reasons for cancellation or rejection will be made part of the contract file. A public body will not cancel or reject an Invitation to Bid, a Request for Proposal, any other solicitation, bid or proposal pursuant to this section solely to avoid awarding a contract to a particular responsive and responsible bidder or offeror (Code of Virginia, § 2.2-4319).

Addenda may be issued before the response deadline to amend solicitations.

A minimum of 10 days must pass from addendum issuance to bid due date, or the due date is extended.

Acknowledgment of addenda must be returned before bid deadline or with the bid; failure may lead to rejection.

1. 7 Combining Responses to Separate Solicitations is Prohibited. A vendor shall not combine responses to separate IFBs or RFPs into one bid or proposal.

1. 8 Postage. All bids or proposals should be weighed and the postage verified before mailing. The U.S.

Unstamped mail is not delivered; postage due mail may be refused or returned; the state is not responsible for unpaid postage.

1. 9 Facsimile or Electronic Bids or Proposals. Bids or proposals sent via facsimile or electronically, must meet the requirements for unsealed or sealed responses described below. The timing device used to July 2021 version

Receipt documentation is by the agency; fax time does not govern receipt time.

a. Unsealed Proposals. Facsimile or electronic proposals must be completely received in the office that issued the solicitation prior to the time and date designated for submission. The original copy of the facsimile or electronic transmission may be requested. If requested it must be received within five (5) working days.

b. Sealed Bids/Sealed Proposals. Facsimile bids or proposals will be accepted from a third party or an agent of the bidder or offeror for sealed programs provided that the bids or proposals are submitted in sealed envelopes to the purchasing agency. The bidder/offeror is responsible for arranging the third party involvement in sealed bid/proposal programs and for faxing the complete bid/proposal to the third party, not just a summary or the cover sheet. The original bid or proposal and addenda may be requested and, if requested, must be received within five (5) business days. See 5.3 for signature requirements.

1. 10 Late Bids or Proposals. To be considered, all bids or proposals must be received at the specific office location stipulated by the procuring activity on or before the date and hour designated on the solicitation.

Vendors must ensure proper addressing; late bids are rejected, stamped “late,” and kept unopened. Official time is from the procuring clock.

1. 11 Bonds.

a. Bid Bonds. Except in cases of emergency, all bids or proposals for nontransportation-related construction contracts in excess of $500,000 or transportation-related projects authorized under § 33.1-12 that are in excess of $250,000 and partially or wholly funded by the Commonwealth shall be accompanied by a bid bond from a surety company selected by the bidder that is legally authorized to do business in Virginia, as a guarantee that if the contract is awarded to such bidder, that bidder will enter into the contract for the work specified in the bid. The amount of the bid bond shall not exceed five percent of the amount bid (Code of Virginia, § 2.2-4336).

(1) Forfeiture under a bid bond shall not exceed the lesser of the bid difference or the bond face amount.

(2) Nothing in this section shall preclude the state from requiring bid bonds to accompany bids or proposals for construction contracts anticipated to be less than $500,000 for non transportation-related projects or $250,000 for transportation-related projects authorized under § 33.1-12 and partially or wholly funded by the Commonwealth. July 2021 version

(3) For nontransportation-related construction contracts in excess of $100,000 but less than $500,000, where bond requirements are waived, prospective contractors must be prequalified for each individual project in accordance with Code of Virginia, § 2.2-4317.

b. Performance and Payment Bonds.

(1) Unless otherwise authorized in this section, upon the award of any (i) public construction contract exceeding $500,000 awarded to any prime contractor, (ii) construction contracts exceeding $500,000 awarded to any prime contractor requiring the performance of labor or the furnishing of materials for buildings, structures or other improvements to real property owned by a public body; or (iii) transportation-related projects exceeding $350,000 that are partially or wholly funded by the Commonwealth, the contractor shall furnish to the public body the following bonds (Code of Virginia, § 2.2-4337):

(a) A performance bond equal to the contract amount, conditioned on faithful performance per contract terms. For transportation projects under § 33.1-12, the bond must be satisfactory to the public body.

(b) A payment bond equal to the contract amount, protecting claimants supplying labor or materials to the prime contractor or subcontractors.

For transportation projects under § 33.1-12, bonds must be satisfactory to the public body. 'Labor or materials' includes utility services and equipment rentals when used at the site.

(2) Each of the bonds shall be executed by one or more surety companies selected by the contractor that are authorized to do business in Virginia and filed with the purchasing office that awarded the contract or a designated official thereof within 10 days after receipt of the purchase order or notice of award. See 3.3f on bond documentation review and Annex 3-E for guidance on processing and verifying the bonds validity.

(3) Nothing in this section shall preclude the state from requiring payment or performance bonds for construction contracts up to $500,000 for non transportation-related projects or $350,000 for transportation-related projects authorized under Code of Virginia, § 33.1-12 and partially or wholly funded by the Commonwealth.

(4) Nothing in this section shall preclude the contractor from requiring each subcontractor to furnish a payment bond with surety thereon in the sum of the full amount of the contract with such subcontractor conditioned upon the payment to all persons who have and fulfill contracts which are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract (Code of Virginia, § 2.2-4337). July 2021 version

For non-transportation contracts over $100,000 up to $500,000 with waived bonds, contractors must be prequalified per Code of Virginia, § 2.2-4317..

For transportation projects over $250,000 but under $350,000, bonds may be waived if the bidder shows a surety declined their bond application (Code of Virginia, § 2.2-4337).

c. Bonds on Construction Contracts. Upon award of a non-transportation-related construction contract exceeding $500,000, the contractor shall furnish a Performance Bond and a Payment Bond, each in the sum of the contract. (Code of Virginia, § 2.2-4337). Each bond shall be executed by one or more surety companies that are legally authorized to do business in Virginia. Form CO-10 Commonwealth of Virginia Standard Performance Bond, Form #DGS-30-084, and Form CO-10.1 Commonwealth of Virginia Standard Labor and Material Payment Bond, Form #DGS-30-088, shall be used. (Forms may be downloaded from the DGS/Division of Engineering & Buildings website, http://deb.dgs.virginia.gov).

1. 12 Insurance. Whenever work is to be performed on state-owned or leased property or facilities, the contractor shall be required to have Workers’ Compensation, Employer’s Liability, Commercial General Liability and Automobile Liability, and in certain types of programs Professional Liability/Errors and Omissions insurance coverage. The Commonwealth of Virginia shall be added as an additional insured to the policy by an endorsement when requiring a Contractor to obtain Commercial General Liability coverage. In some cases, Workers’ Compensation Insurance and Employer’s Liability Insurance may not be required. Workers’ Compensation insurance is required when the contractor has three (3) or more employees. If work is performed by a sole proprietor, the person does not need Workers’ Compensation insurance, as they do not have employees. Employer’s Liability is required if an employer has employees who are paid a wage or salary. Employer’s Liability is not required for persons in business together, e.g., husband and wife, siblings or parents and children, as these persons would be considered owners not employees. For construction contracts, if any subcontractors are involved, subcontractors shall also be required to have workers’ compensation insurance in accordance with Code of Virginia, § 2.2-4332 and 65.2-800 et seq. Stipulated insurance must be obtained prior to commencing work and be maintained during the entire term of the contract. At a minimum, the contractor must certify to the agency that they possess the appropriate insurance coverage. The agency must verify and document the contractor’s insurance coverage and include it in the procurement file. The procuring office may require a certificate of insurance to be furnished prior to commencement of work and at any time during contract performance.

1. 13 Specifications, Questions, and Comments. It is the intent of the purchasing office to use specifications that encourage competition. Vendors are requested to inform the responsible purchasing office whenever they have comments or questions concerning specifications or solicitation requirements (Code of Virginia, § 2.2-4316). Suggestions concerning new products or improvements to specifications are encouraged and will be considered. This information should be provided to the issuing purchase office as early as possible but at least five (5) working days prior to bid or proposal due date to provide time to amend or cancel the solicitation before the scheduled receipt date. July 2021 version

1. 14 Brand Names. When it is determined to be impractical to develop a generic specification, a brand name may be used to convey the general style, type, character and quality of the article desired. Unless otherwise provided in the solicitation, the name of a certain brand, make, or manufacturer does not restrict bidders or offerors to the specific brand, make, or manufacturer named. Any article which the public body, in its sole discretion, determines to be the equivalent of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended shall be accepted (Code of Virginia, § 2.2-4315). The bidder or offeror is responsible to clearly and specifically indicate the product being offered and to provide sufficient descriptive literature, catalog cuts and technical detail to enable the Commonwealth to determine if the product offered meets the requirements of the solicitation. This is required, even if offering the exact brand, make, or manufacturer specified. Normally, in competitive sealed bidding, only the information furnished with the bid will be considered in the evaluation. Failure to furnish adequate data for evaluation purposes may result in declaring a bid nonresponsive. Unless the bidder or offeror clearly indicates in its bid/proposal that the product offered is an “equivalent” product, such bid/proposal will be considered to offer the brand name product referenced in the solicitation.

1. 15 Contractor Registration (License). State statutes and regulatory agencies require that some contractors be properly registered and licensed, or hold a permit, prior to performing specific types of services. It is the contractor's responsibility to comply with the rules and regulations issued by state regulatory agencies.

Unlicensed vendors submitting required bids or proposals violate state law; bids from unregistered contractors for construction, demolition, repair, or improvements will be rejected per Code of Virginia, Title 54.1, Chapter 11.

For procurements of $1,000+ involving construction, removal, repair, or improvements to real property, contractors must hold appropriate licenses from the State Board for Contractors before bidding (Code of Virginia, §§ 54.1-1103 and 54.1-1115).

• Contractor License A - If the contract is $120,000 or more or if the contractor does $750,000 or more business within a 12-month period.

• Contractor License B - $10,000 or more, but less than $120,000 or if the contractor does $150,000 or more, but less than $750,000 in business within a 12-month period.

• Contractor License C - Over $1,000, but less than $10,000 or if the contractor does less than $150,000 in business within a 12-month period. NOTE: The Board shall require a master tradesmen license as a condition of licensure for electrical, plumbing and heating, ventilation and air conditioning contractors.

Work undertaken by a person providing construction, remodeling, repair, improvement, removal, or demolition valued at $2,500 or less per project on behalf of a properly licensed contractor, provided that such contractor holds a valid license in the residential or commercial building contractor classification shall be exempt for licensure. However, any construction services that require an July 2021 version

individual license or certification shall be rendered only by an individual licensed or certified in accordance with Chapter 11 of Title 54.1 of the Code of Virginia.

Contractors employing or contracting with uncredentialed persons under Chapter 11 of Title 54.1 are solely responsible for penalties or sanctions resulting from such employment or contracting.

Nonresident contractors/subcontractors bidding on such work must register with the Department of Labor and Industry per Code of Virginia, § 40.1-30..

Private Security Services. All solicitations for the installation, service, maintenance, or design of security equipment, security officer service, central station alarm condition monitoring service, and/or private investigator service require that the successful bidder, offeror or approved subcontractor have a Private Security Services Business License issued by the Department of Criminal Justice Services (see Code of Virginia, § 9.1-139). This applies regardless of the dollar value of the resulting contract.

Assistance may be obtained from the Department of Criminal Justice Services at 804-786-0460.

1. 16 Notice of Pending Procurements. DGS/DPS publishes the Virginia Business Opportunities (VBO) on the Internet (www.eva.virginia.gov) to post all IFBs, RFPs, addenda, and notices of award with state and some local government agencies. The intent of this policy is to broaden vendor participation and help Virginia companies, particularly micro, small, women, minority, and service disabled veteran-owned businesses, to know what bidding opportunities are available in state government. It also carries out the provision of § 2.2-4300C of the Code of Virginia, “that all qualified vendors have access to state business and no offeror be arbitrarily or capriciously excluded.” Agencies are authorized to waive publication of procurements from mandatory sources and purchases of items exempted by law from competitive procurement. The publication lists pertinent information such as the type of purchase, required location, response date, and point of contact. Public notice of pending procurements may also be published on other appropriate websites or posted at the agency. July 2021 version

CHAPTER 5

SOLICITATION RESPONSES

In this Chapter look for . . .

1. 1 Solicitation Forms
2. 2 Vendor Name and Address
3. 3 Signature on Bid or Proposal
4. 4 Terms and Conditions
5. 5 Pricing and Discounts
6. 6 Samples
7. 7 Alternate Bids
8. 8 Taxes
9. 9 Time of Performance
10. 10 Questions Concerning Solicitations
11. 11 Amending or Withdrawing Bids or Proposals by Vendors
12. 12 Alterations to Bids or Proposals
13. 13 Mistakes in Bids
14. 14 Withdrawal of Bids
15. 15 Denial of Withdrawal of Bid

1. 1 Solicitation Forms. All vendors receiving an Invitation for Bid (IFB) or Request for Proposal (RFP) are expected to return the bid or proposal response in paper form or via electronic submission to the purchasing office that issued the solicitation. If the vendor does not wish to submit a bid or proposal, a “No Bid” or a similar statement should be returned to the issuing office.

1. 2 Vendor Name and Address. Purchase orders or contracts will be issued only to the firm’s name appearing on the bid or proposal form. If orders or payments are to be mailed to an address or addresses other than that shown on the face of the form, the bidder or offeror must so indicate and list the post office box, or street name and number, city, state, and zip code for the addressee as an update to their Vendor Master Profile to reflect this information It is the Vendor’s responsibility to ensure all Vendor Master Profile information is accurate and current.

1. 3 Signature on Bid or Proposal. Facsimile bids or proposals on sealed programs will be accepted from a third party or an agent of the bidder or offeror provided that the bids or offerors are submitted in sealed envelopes (see 4.9). For sealed bid or sealed proposal programs, the bid or proposal, and all addenda returned by the bidder or offeror by facsimile must be signed. The original bid or proposal must be signed in ink or submitted electronically through eVA (Code of Virginia, § 1-257 and § 59.1-485). The person signing the bid or proposal must be a person authorized by the bidder or offeror to sign bids or proposals.

The person signing must include his or her title, and if requested, must verify his or her authority to bind his or her company in contract. Failure to sign the face of the bid/proposal in the space provided will result July 2021 version

in rejection of the bid/proposal except if the unsigned bid/proposal is accompanied by other signed documents indicating the bidder's/offeror's intent to be bound [see 5.13c(1)(b)].

1. 4 Terms and Conditions. Terms and Conditions and Instructions to Vendors incorporated by reference in the eVA purchase order are shown in Appendix B, Section I. Solicitations contain general terms and conditions which incorporate the procedures and provisions of this manual as well as all applicable statutory provisions such as the Virginia Fair Employment Contracting Act (Code of Virginia, §§ 2.2-4200 through 2.2-4201). The General Terms and Conditions that are typically used in agency contracts are found in Appendix B, Section II. These provisions apply to all written solicitations issued by state agencies for procurements that are subject to the DGS/DPS Agency Procurement and Surplus Property Manual (APSPM) unless changed, deleted, or revised by the legal advisor to the agency or institution.

Special conditions may alter procedures; read solicitations carefully. Challenges to terms are not permitted (Code of Virginia, § 2.2-4360). Modifications or additions must be in writing and signed to be effective.

1. 5 Pricing and Discounts. Solicitations normally request net price FOB destination. The net price is the list price less trade or volume discounts offered. Unit prices, extensions, and/or gross total must be shown as requested in the pricing schedule. Prompt payment discounts offered must be clearly shown in the space provided and will be taken if payment is made within the specified time frame, e.g., 2% 20 days.

Discounts are not factors unless specified. Verify prices carefully; in case of errors, unit prices govern.

1. 6 Samples. Samples of materials or equipment for testing, evaluation, or demonstration purposes, when requested in a solicitation must be furnished at no cost. Each individual sample must be labeled with the bidder's or offeror's name, manufacturer's brand name and number, requisition number or contract program, and item referenced. Samples submitted by the successful bidder or offeror may be held for comparison with goods received. All samples submitted may be subjected to tests and evaluation by either a qualified laboratory or test panel, and the results will be a factor in making the award. Samples not destroyed in testing will be returned, if requested, to the bidder or offeror at his or her expense. Requests for return of samples will be honored upon the completion of testing and evaluation. Samples will be disposed of if not claimed within 60 days after pick-up notification has been given.

1. 7 Alternate Bids. An alternate bid is a bid submitted in knowing variance from the specifications and must be clearly distinguished as an alternate by the bidder. Frequently, alternate bids incorporate the latest in technology and can result in substantial savings, not only in monetary terms but also in system-wide operational efficiencies. Vendors should contact buying offices with suggested revisions to specifications as soon as possible in the procurement process. An award cannot be made on an alternate bid; however, all bids may be rejected and the requirement resolicited with a revised specification using the features of the alternate. July 2021 version

1. 8 Taxes.

a. Excise. The Commonwealth of Virginia generally is exempt from paying federal excise taxes, except it must pay excise taxes for air transportation, the cost of which is generally defined as any amount paid within the United States for transportation of any person by air. Certain vaccines require that an excise tax be paid by the purchasing activity.

b. State Sales. The Commonwealth of Virginia is generally exempt from paying Virginia's sales taxes on purchases of tangible personal property for its use or consumption. Sales tax, however, is paid by the Commonwealth on materials and supplies that are installed and become a part of real property, e.g., glued-down carpet. Contractors are not exempt from paying taxes on these categories, as they are considered to be a cost of doing business and should be considered in pricing when preparing a bid on a state contract. (Virginia Retail Sales and Use Tax Regulations, §§ 630-10-27 and 630-10-45. Also see §§ 58.1-603 and 58.1-604). If further interpretive assistance is required, contact the Department of Taxation, Office of Customer Services, 804-367-8037.

c. Sales and Use Tax - State Government and Political Subdivisions. Virginia's Sales and Use tax does not apply to sales of tangible personal property to the Commonwealth of Virginia or to its political subdivisions, for their use or consumption, if the purchases are pursuant to required official purchase orders to be paid for out of public funds. The tax applies when such sales are made without the required purchase orders and are not paid for out of public funds. No exemption is provided for state or local government employee purchases of meals or lodging whether purchases are pursuant to required official purchase orders or not.

d. Sales and use Tax - Contractors. Persons who contract with the Commonwealth or its political subdivisions to perform a service, and in conjunction therewith, furnish some tangible personal property, are deemed to be the consumers of all such property and are not entitled to exemption on the grounds that a governmental entity is a party to the contract. This is true even though title to the property provided may pass to the government and/or the contractor may be fully and directly reimbursed by the government. This same principle applies to persons who enter into contracts with a governmental entity to perform real property construction or repair.

1. 9 Time of Performance. A specific date or number of calendar days required for delivery or performance after receipt of order may be stated in the terms and conditions of a solicitation. Otherwise, the date or number of days must be entered by the bidder in the space provided on the solicitation form (see 7.7).

1. 10 Questions Concerning Solicitations. Questions concerning a solicitation should be directed to the person and phone number listed on the document. Always refer to the identification number and the opening date on the IFB or RFP. Bid tabulations are a matter of public record and are open for inspection to bidders and offerors after evaluations are complete but prior to award (see 1.9).

1. 11 Amending or Withdrawing Bids or Proposals by Vendors. A bid/proposal may be amended and/or withdrawn by a bidder or offeror if the office issuing the solicitation receives such a request in writing before the due date and hour. The request must be signed by a person authorized to represent the person or firm that submitted the bid/proposal. July 2021 version

1. 12 Alterations To Bids or Proposals. Prior to submission of a bid or proposal, alterations may be made, but they must be initialed by the person signing the bid or proposal. The proper procedure is to draw a single line through the information to be changed and insert the desired information and initial the change.

Erasures, strikeovers, or opaque fluid on bid forms affecting prices, quantities, quality, or delivery may lead to rejection of affected items.

1. 13 Mistakes in Bids.

a. Correction. Except as herein provided, no plea or claim of mistake shall be available to a bidder for recovery of any deposit or security required to be paid or posted or as a defense in any legal proceeding for the failure, neglect or refusal of the bidder to (1) execute a contract that has been awarded by the Commonwealth, (2) accept a purchase order issued by the Commonwealth to a bidder in response to a bid submitted by such bidder, or (3) perform in accordance with the terms, specifications and conditions of a contract.

b. Mistakes Discovered Before Opening. A bidder may correct mistakes discovered before the time and date set for receipt of bids by withdrawing and replacing or by correcting the bid (see 5.11 and

1. 12).

c. Mistakes Discovered After Opening But Before Award

(1) Informality. A minor defect or variation from the solicitation that does not affect price, quality, quantity, or delivery, which the agency may waive or allow correction, per Code of Virginia, § 2.2-4301. Examples include failure to:

(a) Return the number of signed bids/proposals required by the solicitation.

(b) Sign the face of the bid/proposal in the space provided, but only if the unsigned bid/proposal is accompanied by other signed documents indicating the bidder's/ offeror's intent to be bound.

(c) Acknowledge receipt of an addendum to the solicitation, but only if it is clear from the bid/proposal that the bidder/offeror received the addendum and intended to be bound by its terms, or the addendum involved had a negligible effect on price, quantity, quality, or delivery.

(2) Judgment Errors. Bids may not be withdrawn if the mistakes are attributable to errors in judgment, nor may such mistakes be waived or corrected.

(3) Nonjudgmental Mistakes

(a) Mistakes Where the Intended Correct Bid is Evident. If the mistake and the intended correct bid are clearly evident in the bid document, the bid shall be corrected to the intended correct July 2021 version

bid and may not be withdrawn. Examples of mistakes that may be clearly evident in the bid document are typographical errors, errors in extending unit prices, transposition errors, and arithmetical errors.

(b) Mistakes Where the Intended Correct Bid is Not Evident. A bidder may be permitted to withdraw a low bid if a mistake is clearly evident from the bid documents submitted by the bidder and/or a comparison with other bids.

d. Mistakes Discovered After Award. Bids containing mistakes shall not be corrected or withdrawn after award of a contract or issuance of a purchase order. No plea or claim of mistake in a bid or resulting contract shall be available as a defense in any legal proceeding brought upon a contract or purchase order awarded to a bidder as a result of the breach or nonperformance of such contract or purchase order (see 7.14).

e. Construction. A bidder for a public construction contract, other than a contract for construction or maintenance of public highways, may withdraw his or her bid from consideration if the bid price was substantially lower than the other bids due solely to a mistake therein, provided the bid was submitted in good faith, and the mistake was a clerical mistake as opposed to a judgmental mistake, and was actually because of an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid, which unintentional arithmetic error or unintentional omission can be clearly shown by objective evidence drawn from inspection of original work papers, documents, and materials used in the preparation of the bid sought to be withdrawn. The bidder shall submit to the public body or designated official his or her original work papers, documents, and materials used in the preparation of the bid within one day after the date fixed for submission of bids. The work papers shall be delivered by the bidder in person or by registered mail at or prior to the time fixed for the opening of bids. Such work papers, documents and materials may be considered as trade secrets or proprietary information subject to the conditions of the Code of Virginia, § 2.2-4342F. The bids shall be opened one day following the time fixed by the public body for the submission of bids. Thereafter, the bidder shall have two hours after the opening of bids within which to claim in writing any mistake as defined herein and withdraw his or her bid. The contract shall not be awarded by the public body until the two-hour period has elapsed. Such mistake shall be proved only from the original work papers, documents and materials delivered as required herein [(Code of Virginia, § 2.2-4330A (ii)].

1. 14 Withdrawal of Bids. If the lowest apparent responsive bid is 25% or more lower than the next low bid, the buyer may contact the bidder to confirm the bid price. If the bidder is able to verify, to the satisfaction of the purchasing office, that it was a nonjudgmental mistake, the bid may be withdrawn.

a. If a bid is withdrawn, the lowest remaining bid shall be deemed to be the apparent low bid.

b. No bidder who is permitted to withdraw a bid shall, for compensation, supply any material or labor to or perform any subcontract or other work agreement for the person or firm to whom the contract is awarded or otherwise benefit, directly or indirectly, from the performance of the project for which the withdrawn bid was submitted. July 2021 version

c. If the public body denies the request for withdrawal of a bid under the provisions of this section, it shall notify the bidder in writing stating the reasons for its decision and award the contract to such bidder at the bid price, provided such bidder is a responsive and responsible bidder.

d. No bid may be withdrawn when the result would be the awarding of the contract on another bid of the same bidder or of another bidder in which the ownership of the withdrawing bidder is more than five percent.

1. 15 Denial of Withdrawal of Bid. If the state denies the withdrawal of a bid under the provisions of paragraph
2. 14, it shall notify the bidder in writing of reasons and award if responsible and responsive (Code of Virginia, §
3. 2-4330 F). The decision denying withdrawal of a bid shall be final and conclusive unless the bidder appeals the decision within ten days after receipt of the decision by invoking the appeals procedure in Chapter 9 or by instituting legal action as provided in the Code of Virginia, § 2.2-4364. July 2021 version

CHAPTER 6

EVALUATION AND AWARD

In this Chapter look for . . .

1. General
2. 1 Evaluation of Bids and Proposals
3. 2 Acceptance Period
4. 3 Notice of Intent to Award and Notice of Award
5. 4 Multiple Awards and Split Awards
6. 5 Tie Bids
7. 6 Deleted
8. 7 Negotiation with the Lowest Responsible Bidder

1. General. Factors other than price are considered in selecting the successful bidder/offeror. A determination must be made by the purchasing office as to whether the bidder/offeror is responsive to the requirements of the solicitation and whether or not they are a responsible bidder or offeror capable of furnishing the goods or services solicited (see sections 3.7 and 3.8). Any bidder who, despite being the apparent low bidder, is determined not to be a responsible bidder shall be notified in writing in accordance with section 9.5 of this manual. The state reserves the right to request samples of materials or equipment or further information prior to award even if not specifically required in the terms and conditions. Failure to provide requested material or information in a timely manner may be considered valid justification for rejection of the bid.

1. 1 Evaluation of Bids or Proposals

a. Evaluation of Bids. Bids are evaluated and an award should be made to the lowest responsive and responsible bidder in accordance with the Small Business Enhancement Award Priority. The state reserves the right to reject any and all bids in whole or in part and to waive any informality in the bid.

In the case of errors in the extension of prices, the unit price will govern (see 5.5).

b. Evaluation of Proposals - Goods and Nonprofessional Services. Proposals are evaluated by the buyer, contracting officer, or an evaluation team, on the basis of the criteria set forth in the RFP. Proposals deemed to be fully qualified and best suited are selected on the basis of the factors stated in the RFP.

As an option, evaluators may request presentations or discussions with offerors, as necessary, to clarify material in the offerors’ proposals, to help determine those fully qualified and best suited.

Offerors who fail to submit required documentation or meet mandatory requirements, in such time, for evaluation purposes may be eliminated from further consideration. Negotiations are then conducted with two or more of the selected offerors. Price is considered, but need not be the sole determining factor. After negotiations have been completed, the purchasing office shall select the offeror (or offerors, if multiple awards are provided for in the RFP), which in its opinion has made the best proposal, and an award should be made to the highest ranking offeror in accordance with the July 2021 version

Small Business Enhancement Award Priority. Offerors and subcontractors must have received their DSBSD certification as a small business by the closing date of the RFP in order to receive points for the solicitation’s evaluation criteria. If so provided in the RFP, after negotiations have been held, offerors are given the opportunity to submit best and final offers. The state is not required to furnish a statement of the reasons why a particular proposal was not deemed the most advantageous (Code of Virginia, § 2.2-4359D). Should the purchasing office determine in writing and in its sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified than others under consideration, a contract may be negotiated and awarded to that offeror.

c. The Commonwealth in its sole discretion may choose not to make an award to a bidder or offeror who is in litigation with the Commonwealth at the time of bid/proposal evaluation.

1. 2 Acceptance Period. Bids are valid for a minimum of thirty (30) days unless a longer period of time is specified in the solicitation or in the bid response. If an award decision has not been made at the end of the stipulated days, the bid may be withdrawn at the written request of the bidder. If the bid is not withdrawn at that time, it remains in effect until an award is made or the bids are rejected.

1. 3 Notice of Intent to Award and Notice of Award. When the evaluation is complete, the office that issued the solicitation will announce its decision by posting either a Notice of Intent to Award or Notice of Award on the DGS/DPS eVA web site. Notices may also be posted in their public notice posting area or other designated location as stated in the solicitation document. A copy of the notice will be mailed to any bidder submitting a self-addressed, stamped envelope for this purpose with the bid/proposal. A low bidder determined not to be a responsible bidder will be notified in writing (see 9.5). A Notice of Award will be posted for 10 days if a Notice of Intent to Award is not issued.

1. 4 Multiple Awards and Split Awards. When the terms and conditions of multiple awards are so provided in the Invitation for Bids or Request for Proposal awards may be made to more than one bidder or offeror.

Unless otherwise specified in the solicitation, purchasing offices may award a multi-line item procurement in whole or in part or on an individual line item basis. In determining whether to make separate line item awards on a multi-line item solicitation, consideration will be given to the agency’s administrative costs for processing individual purchase documents, and separate invoices and checks.

1. 5 Tie Bids

a. Virginia Products or Firms. A tie bid exists when two or more bidders offer products or services that meet all specifications, terms and conditions at identical prices. In the case of a tie bid, preference shall be given to goods produced in Virginia, goods or services or construction provided by Virginia persons, firms or corporations, if such a choice is available; otherwise, the tie shall be decided by lot, (Code of Virginia, § 2.2-4324). At the option of the office issuing the IFB, all bids may be rejected and the program rebid. Tie bids are reported to the Antitrust Unit of the Virginia Attorney General's Office (see also 1.8). Whenever any bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a preference, a like preference may be allowed to the lowest responsible bidder who is a resident of Virginia. July 2021 version

b. Recycled Content. In the case of a tie bid in instances where goods are being offered and existing price preferences have already been taken into account, preference then shall be given to the bidder whose goods contain the greatest amount of recycled content.

1. 6 Deleted.

1. 7 Negotiation with the Lowest Responsible Bidder. Unless canceled or rejected, a responsive bid from the lowest responsible bidder shall be accepted as submitted except that if the bid exceeds available funds, the state may negotiate with the apparent low bidder to obtain a contract price within available funds; however, such negotiation may be undertaken only under conditions and procedures described in writing and approved by the public body prior to issuance of the Invitation to Bid and summarized therein (Code of Virginia, § 2.2-4318). July 2021 version

CHAPTER 7

PERFORMANCE

In this Chapter look for . . .

1. 1 Purchase Order, Authority and Shipment
2. 2 New/Used/Altered
3. 3 Packaging
4. 4 Substitutions
5. 5 Loss or Damage in Transit
6. 6 Freight
7. 7 Delivery
8. 8 Receipt of Shipments
9. 9 Overshipments/Overruns
10. 10 Inspection
11. 11 Assignment of Contract
12. 12 Contract Renewal or Extension
13. 13 Complaints
14. 14 Termination for Default
15. 15 Cancellation of Purchase Orders and Contracts
16. 16 Purchase Order Changes
17. 17 Contract/Purchase Order Modification Restrictions
18. 18 Termination for Convenience of the Commonwealth
19. 19 Claims
20. 20 Debarment
21. 21 Ineligibility or Disqualification of Manufacturer
22. 22 Debarment Period
23. 23 Debarment Notification and Appeal Procedure
24. 24 Suspension

1. 1 Purchase Order, Authority and Shipment. A purchase order is a document used by a state agency or institution to execute a purchase transaction with a vendor. The order number should be shown on all bills of lading, packing slips, back orders, invoices, etc. The receipt of a purchase order authorizes shipment (for requirements-type contracts, the receipt of a notice of award establishing a contract does not authorize shipment). Contractors who accept and deliver an order without a written purchase order or other properly executed Commonwealth contract form do so at their own risk.

1. 2 New/Used/Altered. All supplies and equipment furnished must be new and in first class condition unless the solicitation and contract award specified used items. Demonstration, previously rented or reconditioned items are not considered new. No equipment is acceptable if serial numbers or any other manufacturers' identifying labels or marks have been removed, obliterated, or changed. July 2021 version

1. 3 Packaging. Unless otherwise specified in the solicitation, new standard commercial packing and shipping containers shall be used. Shipping containers should be legibly marked or labeled on the outside with the commodity description and number, size, quantity, contract number, and agency purchase order number or purchase order number. A packing slip or invoice should accompany all shipments and should reference the purchase order number. Failure to do so may result in delayed payment processing.

1. 4 Substitutions. Substitution is defined as delivery of an item that does not conform to the specifications of the purchase order or contract. Substitutions on purchase orders require the prior approval of the purchasing office issuing the award. Any item delivered not meeting specifications may be returned to the contractor at the contractor's expense. When an item is returned, the contractor must make immediate replacement with acceptable merchandise or be considered in default.

1. 5 Loss or Damage in Transit. Delivery by a contractor to a common carrier does not constitute delivery to state agencies or political subdivisions. Any claim for loss or damage incurred during delivery shall be between the contractor and the carrier. The state accepts title only when goods are received regardless of the F.O.B. point. The receiving agency will note all apparent damages in transit on the freight bill and notify the contractor. Discovery of concealed damage or loss will be reported by the receiving agency to the carrier and the contractor within seven days of receipt and prior to removal from the point of delivery if possible. The contractor shall make immediate replacement of the damaged or lost merchandise or be in default of the contract. It shall be the contractor's responsibility to file a claim against the carrier. If damage is to a small quantity, with the approval of the agency, the contractor may deduct the amount of damage or loss from his or her invoice to the agency in lieu of replacement.

1. 6 Freight. By signing an IFB the bidder certifies that the bid price(s) offered for F.O.B. destination include only the actual freight charges at the lowest and best rate and is based upon the actual weight of the goods to be shipped. Freight charges are, therefore, established for each individual purchase. If a requirement is bid F.O.B. origin, the contractor shall prepay the charges and add the amount to the invoice. A copy of the freight bill should be attached to all invoices that include freight charges. In a solicitation specifying F.O.B. origin the state will consider freight cost in the evaluation of bids.

1. 7 Delivery. Delivery must be made by the date or period specified in the purchase order or contract or the contractor will be in default. The receiving sections of most state agencies are open during normal working hours, Monday through Friday, except on official holidays. If a contractor cannot make delivery as specified under an existing purchase order or contract, the contractor must immediately notify the ordering agency. The contractor may offer a new delivery date; however, if it is not acceptable to the agency and delivery cannot be made as originally specified, the contractor will be in default (see 7.14).

1. 8 Receipt of Shipments.

a. General. Shipments will be checked against the agency's copy of the ordering document to assure quantities, units, etc., match. Overshipments may be rejected and returned at the contractor's expense.

Required grading certificates, USDA stamps, or any other proofs of quality must precede or accompany the shipment. Contractors should ensure that they have been given a specific delivery location and obtain a signed receipt for goods delivered. July 2021 version

b. Printing Overruns, Underruns. The State is not required to accept overruns provided “no overruns” is specified in the solicitation. However, an agency may, at its discretion, accept up to a ten percent overrun. The additional overrun price quoted shall not exceed the base lot price quoted for the equivalent incremental quantity. Whichever price is less will prevail. An agency may at its discretion accept an underrun, provided that credit is allowed the agency at the full base price per unit for the quantity of the underrun.

1. 9 Overshipments. An agency should not accept goods in excess of those specified on the purchase order or contract unless it is recognized as a custom of that industry (e.g. printing, cable, fabric), is so stated in the bid, and is accepted by the buyer. Increases or decreases exceeding $500 shall be provided for by a change order and shall be provided whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate. Change orders for increases or decreases up to $500 shall be prepared if requested by the supplier (see 8.9). In the event that an overshipment is not recognized until after receipt and not provided for in the award, the agency must notify the contractor that the overshipment will not be accepted and, unless the overshipment is picked up by the contractor, it will be returned at the contractor's expense.

1. 10 Inspection. All materials, equipment, supplies, and services are subject to inspection and testing. Items or services that do not meet specifications may be rejected. Failure to reject upon receipt, however, does not relieve the contractor of liability for latent or hidden defects subsequently revealed when goods are put to use or tested. If latent defects are found, the contractor is responsible for replacing the defective goods within the delivery time originally stated in the solicitation and is liable for any resulting expenses incurred by the state.

1. 11 Assignment of Contract. A contract shall not be assignable by the vendor in whole or in part without the written consent of the state purchasing office issuing the contract.

1. 12 Contract Renewal or Extension. A term contract may contain a renewal clause describing the conditions under which it may be renewed. All renewals must be fully executed in writing prior to the expiration of the current contract term. Term contracts for goods or nonprofessional services may not be renewed without a renewal clause, except that in exceptional or extenuating circumstances a contract may be extended by mutual consent for a limited period of time, not to exceed six (6) months. This action shall be in writing prior to the expiration of the current contract. The state may extend the term of an existing contract for services to allow completion of any work undertaken but not completed during the specified term of the contract.

1. 13 Complaints.

a. Contracts. The following chart lists the agency that will handle certain types of procurement complaints:

Type of Complaint Agency Goods and Non-professional Services DGS/Division of Purchasing and Supply Technology (IT) Virginia Information Technologies Agency (VITA) Purchasing July 2021 version

Construction awarded under Division of Engineering and DGS/Division of Engineering & Buildings and certain professional services Buildings

b. Solicitation. Any issues concerning solicitations or non-contractual issues should be addressed with the issuing agency.

c. Existing Contracts. Any differences between the provisions of the contract and subsequent performance will be reported by the ordering agency to the contractor on a Procurement Complaint Form (PCF). Vendors are required to respond to the agency within 10 calendar days. A copy of the complaint form should be sent to DGS/DPS via email (procurementcomplaint@dgs.virginia.gov). A vendor’s failure to respond may affect future business with the Commonwealth.

Vendors may use this form to report non-compliance with the contract or agency. The PCF is available at www.eva.virginia.gov under “I Sell to Virginia.” Agencies must respond within 10 days and send a copy to DGS/DPS at procurementcomplaint@dgs.virginia.gov.

1. 14 Termination for Default. In case of default by a contractor for failure to deliver or perform in accordance with the contract specifications or terms and conditions, the state may procure the articles or services from other sources and hold the defaulting contractor responsible for any resulting additional purchase and administrative costs. The state will normally repurchase from the next low bidder or purchase competitively by resolicitation. If the repurchase results in increased costs to the Commonwealth, a letter will be sent to the defaulted contractor requiring payment within a specified time frame for additional costs. If repayment has not been made by the end of the specified period of time, subsequent collection action shall be taken in accordance with the Office of Attorney General’s Collection Procedure Guidelines and , debar proceedings may be instigated (see 7.20p).

Contractors shall not be liable for any excess cost if the failure to perform arises out of any act of war, order of legal authority, strikes, act of God, or other unavoidable causes not attributed to their fault or negligence. Failure of a contractor's source to deliver is generally not considered to be an unavoidable cause. The burden of proof rests with the contractor.

1. 15 Cancellation of Purchase Orders and Contracts. Cancellation of purchase orders will be made in writing by the purchasing office that issued the order. Orders or contracts may be canceled without a contractor's consent as provided in 7.14, Termination for Default, or 7.18, Termination for Convenience of the Commonwealth. A contractor may request cancellation, and the state will grant relief if the contractor is prevented from specific performance, including timely delivery, by an act of war, order of legal authority, act of God, or other unavoidable causes not attributed to the contractor's fault or negligence. Failure of a contractor's source to deliver is generally not considered to be an unavoidable cause. The burden of proof for need of such relief rests with the contractor. The state reserves the right to cancel all contracts with any contractor who fails to perform for any one contract.

1. 16 Purchase Order Changes. A purchase order change is used to correct errors, to add or delete small quantities of goods, or to make other minor adjustments in the original orders.

Change orders, regardless of dollar value, shall be processed whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate, as may be required by internal policy when the actual July 2021 version

invoiced amount differs from the purchase order total. When the actual invoiced amount differs from the purchase order total change orders, regardless of dollar value, shall be processed whenever requested by a supplier to ensure the supplier’s eVA transaction fee is accurate; However, a contract or purchase order may not be modified or renewed unless provided for in the original contract or solicitation.

Change orders may also be used to cancel an order (see 7.14 & 7.15). A contractor who deviates from the requirements of a purchase order or contract prior to receipt of an authorized change order does so at its own risk (see 7.17).

1. 17 Contract/Purchase Order Modification Restrictions. No contract or purchase order may be modified or renewed unless provided for in the original contract or solicitation. No additional consideration or increase in contract price may be paid to the contractor because of renewal unless specifically authorized under the original contract. A public contract may include provisions for modification of the contract during performance, but no fixed price contract may be increased by more than 25 percent of the original amount of the contract or $50,000, whichever is greater, without the advance written approval of the Governor or his designee. By executive order this is the Director of General Services. In no event may the amount of any contract, without adequate consideration, be increased for any purpose, including, but not limited to, relief of a bidder or offeror from the consequences of an error in its bid or offer (Code of Virginia, § 2.2-4309A). Cumulative contract modifications up to and including $50,000 shall not exceed 25% of the original contract price without advance written approval of the agency head or his or her designee. Contract renewals or modifications must be in writing under the signature of the buyer/contract officer responsible for the purchase.

1. 18 Termination for Convenience of the Commonwealth. A purchase order or contract may be terminated for the convenience of the Commonwealth by delivering to the contractor a notice of termination specifying the extent to which performance under the purchase order or contract is terminated, and the date of termination. After receipt of a notice of termination, the contractor must stop all work or deliveries under the purchase order or contract on the date and to the extent specified.

If the purchase order or contract is for commercial items sold in substantial quantities to the general public and no specific identifiable inventories were maintained exclusively for the Commonwealth's use, no claims will be accepted by the Commonwealth. Payment will be made for items shipped or services provided prior to receipt of the termination notice, unless otherwise specified in the contract.

If the purchase order or contract is for items being produced exclusively for the use of the Commonwealth, and raw materials or services must be secured by the contractor from other sources, the contractor shall order no additional materials or services except as may be necessary for completion of any portion of the work which was not terminated. The state may direct the delivery of the fabricated or non-fabricated parts, work in process, completed work, supplies, and other material produced as a part of, or acquired in connection with the performance of the work, or direct the contractor to sell the same, subject to the state's approval as to price. The contractor may, with the approval of the state, retain the same, and apply a credit to the claim. The contractor must complete performance on any part of the purchase order or contract not terminated.

The contractor must submit any termination claim within 120 days after receipt of the notice of termination, or such longer period as the state for good cause may allow. This claim will be in a form and July 2021 version

Claims must include certifications prescribed by the issuing purchasing office. They will be reviewed and forwarded with recommendations to the agency or assistant attorney general for disposition per Virginia Code § 2.2-514.

Claims for termination for convenience cover only actual expenses incurred up to termination.

1. 19 Claims. Written notice of the contractor's intention to file a claim whether for money or other relief, must be given at the time of the occurrence or beginning of the work upon which the claim is based. Contractual claims whether for money or other relief shall be submitted in writing no later than sixty days after final payment. Nothing herein shall preclude a contract from requiring submission of an invoice for final payment within a certain time after completion and acceptance of the work or acceptance of the goods.

Claims pending shall not delay final payment of amounts due.

A contractor may not institute legal action prior to receipt of the purchasing office's decision on the claim unless that office fails to render such decision within thirty (30) days. The decision of the purchasing office shall be final and conclusive unless the contractor, within six months of the date of the final decision on the claim, institutes legal action as provided in the Code of Virginia, § 2.2-4364.

1. 20 Debarment. Debarment as used in this section means action taken by the Director of the Division of Purchases and Supply (DPS) to exclude individuals or firms from contracting with state agencies for particular types of goods or nonprofessional services for specified periods of time. Debarment does not relieve the contractor of responsibility for existing obligations.

The purpose of debarment is to protect the Commonwealth from risks associated with awarding contracts to persons or firms having exhibited an inability or unwillingness to fulfill contractual requirements, and to protect state interests and the integrity of the state's procurement process by preventing individuals or firms who have displayed improper conduct from participating on Commonwealth requirements for specific periods of time.

Causes for Debarment: Individuals or firms may be debarred for these reasons:

a. Breach (including anticipatory breach) of contract with a state agency. As examples of Breach, failure of the vendor to comply with provisions 1. or 2. of the Commonwealth’s “ANTI-DISCRIMINATION” clause, or failure to comply with a Most Favored Customer Clause included in its contract. For default action see 7.14.

b. Sale or attempted sale to a state agency of the same or similar goods or services which are available under an existing mandatory DGS/DPS state contract, when the contractor knew or had reason to know that the goods or services are required to be purchased under the contract, unless such sale or attempted sale occurs in response to an IFB, RFP, or unsealed solicitation that specifies such goods or services.

c. Stating an unwillingness or inability to honor a binding bid. A mere request to withdraw a bid, which does not otherwise state an unwillingness or inability to perform, is not a cause for debarment. July 2021 version

d. Asserting facts related to procurement matters without having reasonable grounds at that time to believe that the facts are true. Examples include but are not limited to: falsifying or misrepresenting manufacturer's specifications in order to appear responsive to a solicitation; or asserting, without reasonable belief in its accuracy, information in support of an invoice, claim, protest, contract amendment, qualification application, or administrative or judicial appeal document. It is not necessary for the presentation to actually affect a decision, and it is not a defense that the recipient of the communication knew or should have known the true facts.

e. Conferring or offering to confer any gift, gratuity, favor, or advantage, present or future, upon any employee of a state agency who exercises any “official responsibility”for a “procurement transaction”as those terms are defined in the Code of Virginia, § 2.2-4368. It is not necessary that the offer be accepted by the employee, or that the offer is made with intent to influence the employee in an official act. Extending to any state employee exercising official responsibility for a procurement transaction any discount or privilege not available to all state employees is considered to be offering an advantage.

f. Failing to disclose a condition constituting a conflict of interest by any officer, director, owner, or partner of the vendor in a contract or purchase order awarded by DPS or any other agency of the state (Code of Virginia, § 2.2-3106).

g. Any cause indicating that the individual or firm lacks the moral and business integrity and reliability that will assure good faith performance.

h. DPS Director’s determination that a vendor used abusive, obscene, or threatening language toward state purchasing personnel during or due to their duties.

i. Sale, under nonemergency conditions, of building materials, supplies, or equipment for any building or structure constructed by or for the Commonwealth by an independent contractor employed to furnish architectural or engineering services, but not construction for such building or structure or from any partnership, association or corporation in which such architect or engineer has a personal interest (Code of Virginia, § 2.2-3101 and § 2.2-4374).

j. Sale, under nonemergency conditions, of building materials, supplies or equipment for any building or structure constructed by or for the Commonwealth by any person who has provided or is currently providing design services specifying a sole source for such materials, supplies or equipment to be used in such building or structure to the independent contractor employed by the Commonwealth to furnish architectural or engineering services in which such person has a personal interest as defined in Code of Virginia, § 2.2-3101.

k. Sale of goods or services to the Commonwealth when such sale is prohibited by any debarment then in effect.

l. Consent of the firm or individual being debarred.

m. Conviction of any criminal offense involving public contracting. Examples include, but are not limited to, bribery (Code of Virginia, § 18.2-447) and knowingly making a false statement in regard July 2021 version

Conviction of any officer, director, owner, partner, agent, or related business entity of a vendor for collusion on a solicitation (Code of Virginia, § 18.2-498.4) shall grounds for removal.

n. Court judgment finding a violation of either federal or state antitrust laws.

o. Conviction of any offenses indicating a lack of moral or business integrity.

p. Failure to pay reprocurement costs pursuant to a contract termination for default.

q. Failure to comply with the provisions of the E-Verify program (Code of Virginia, §2.2-4308.2).

r. Failure to pay Vendor Transaction Fees invoiced by the Commonwealth of Virginia Department of General Services.

s. Creating or using an entity for the purpose of circumventing a debarment decision against another individual or firm.

Effective January 1, 2021; failure of an employer or officer/agent to properly classify an individual as an employee (Code of Virginia, §58.1-1900).

It is not necessary that there be a judicial determination of violations contained in subparagraphs a. through l. and p. for debarment to occur.

If the debarring official finds that the cause for debarment reflects on the contractor's traits or tendencies only with regard to certain goods or services, the debarment may apply only to such goods or services.

Otherwise the debarment shall apply to all goods and services within the purview of the debarring agency

(DPS).

1. 21 Ineligibility or Disqualification of Manufacturer. Should any manufacturer commit any of the acts described in paragraph 7.20, bids offering material, equipment, or supplies manufactured by that firm may be rejected even though the bid is submitted by a vendor in good standing.

1. 22 Debarment Period. Debarment shall be for a period of ninety (90) days to three (3) years, at the discretion of the debarring official, except as follows. The debarment for subparagraphs m., n., and o. of paragraph
2. 20 shall be for a period of three (3) years. The debarment for subparagraph p. of paragraph 7.20 shall be for a period of one year or until the reprocurement costs are paid or until the contract breach is resolved, whichever is longer. EFFECTIVE 12/1/13, the debarment for subparagraph q. of paragraph 7.20 shall be for a period up to one year; such debarment shall cease upon the employer’s registration and participation in the E-Verify program (Code of Virginia, §2.2-4308.2). The debarment for subparagraph r. shall be for a period of one (1) to three (3) years or until the Vendor Transaction Fees are paid, whichever is longer.

Debarment shall commence upon notification, or if later, upon expiration of any existing debarments.

Notwithstanding the prescribed duration of the debarment, solely at the discretion and at the instance of the Director of DPS a debarment may be lifted or suspended at any time if the Director of DPS determines it is in the best interest of the Commonwealth. The Director of DPS may require a debarred individual or July 2021 version

firm to provide information in writing regarding actions taken to remedy the reason for debarment or prevent recurrence of the situation that caused the debarment action to be taken and otherwise indicating that lifting or suspension of the debarment would be in the best interest of the Commonwealth. Examples of actions that the Director may take into consideration include, but are not limited to:

a. Repayment by a debarred contractor of additional costs resulting from a default action for which the contractor had previously failed to reimburse the Commonwealth and was debarred.

b. Repayment by a debarred contractor of Vendor Transaction Fees.

c. Disassociation with individuals or firms that were responsible for the debarment.

1. 23 Debarment Notification and Appeal Procedure. Please see Chapter 9, Section 3.

1. 24 Suspension. Suspension is a type of ineligibility based upon adequate evidence that a vendor has committed any of the grounds for debarment as listed in this manual under paragraph 7.20. In the event that an indictment against a vendor or its principles exists for any of the reasons listed in this manual, paragraphs 7.20 m., n., or o., the indictment shall constitute adequate evidence for suspension. The period of suspension shall not exceed one year unless requested by the Office of the Attorney General. The process for suspension will be governed by the same procedures used for debarment/ineligibility.

Adequate evidence means information sufficient to support the reasonable belief that a particular act or omission has occurred. July 2021 version

CHAPTER 8

CHARGES AND COLLECTIONS

In this Chapter look for . . .

1. 1 Separate Agency Records
2. 2 Charge Cards for Small Purchases
3. 3 Billings and Invoices
4. 4 Partial Payments
5. 5 Contractor Payment Assistance
6. 6 Prompt Payment of Bills
7. 7 Payment Requirements: All Contracts
8. 8 Payment by Electronic Funds Transfer
9. 9 eVA Transaction Fees

1. 1 Separate Agency Records. Except when state agencies and institutions use charge cards for small purchases of goods and services, contractors must make separate accounts or charges for each agency since the agencies are individually responsible for payment. The name and address of the requisitioning agency is shown on each purchase order, delivery order, or agency purchase order.

1. 2 Charge Card Payments. In an effort to streamline invoice and payment processing steps and sharply reduce paperwork, the Department of Accounts (DOA) has established a contract allowing agencies and institutions to use charge cards through two programs, the Small Purchase Charge Card (SPCC) and Gold Card. Unlike the typical consumer charge card, this program incorporates the features of corporate charge cards—national concept designed for business applications. Major program benefits include the reduction in the number of invoices submitted to Commonwealth agencies and institutions, reduction in internal requisitioning and purchase order processing steps, reduced vendor collections costs and payment to the vendor by the charge card company within as little as three business days. As a cost cutting endeavor, vendors are strongly encouraged to participate. Information can be obtained by calling DOA at 804-371-4350, by emailing cca@doa.virginia.gov, or by faxing at 804-786-9201.

a. Deleted.

b. Deleted.

1. 3 Billings and Invoices. The invoices must be submitted to the state agency concerned. Prompt payment discounts will be taken if offered and payment is made within the prescribed time frame. Time will be computed from the date of delivery or performance or from the date a valid invoice is received, whichever is later. Invoices should reference the purchase order or contract number and be in accordance with the terms of such. July 2021 version

1. 4 Partial Payments. Agencies may initiate partial payments when portions of the goods have been received in good condition and have been properly invoiced by the contractor and partial payment is authorized by the governing contract.

1. 5 Contractor Payment Assistance. Requests for assistance regarding payment from a state agency should be addressed to the agency concerned. In the event a contractor, after contacting a state agency, has an unresolved payment problem in regard to a contract or purchase order, the contractor may contact the DGS/DPS Supplier Relationship Manger via email at ProcurementComplaint@dgs.virginia.gov or the appropriate agency contracting office for assistance.

1. 6 Prompt Payment of Bills (Code of Virginia, §§ 2.2-4347 through 2.2-4354).

a. Every state agency that acquires goods or services or conducts any other type of contractual business with nongovernmental, privately owned enterprises shall promptly pay for the completely delivered goods or services by the required payment date. Payment is deemed to have been made when offset proceedings have been instituted, as authorized under the Virginia Debt Collection Act (Code of Virginia, § 2.2-4801 et seq.).

b. Definitions - As used in this paragraph, unless the context clearly shows otherwise, the term or phrase:

(1) “Debtor” means any individual, business, or group having a delinquent debt or account with any state agency whose obligation has not been satisfied or set aside by court order or discharged in bankruptcy.

(2) “Contractor” means the entity that has a direct contract with any “state agency” as defined herein.

(3) “Payment date” means either (a) the date on which payment is due under the terms of a contract for provision of goods or services, or (b) if such date has not been established by contract, thirty days after receipt of a proper invoice by the state agency or its agent for the amount of payment due, or thirty days after receipt of the goods or services, whichever is later.

(4) “State agency” means any authority, board, department, instrumentality, institution, agency or other unit of state government.

(5) “Subcontractor” means any entity that has a contract to supply labor or materials to the contractor to whom the contract was awarded or to any subcontractor in the performance of the work provided for in such contract.

c. Separate payment dates - Separate payment dates may be specified for contracts under which goods or services are provided in a series of partial deliveries or executions to the extent that such contract provides for separate payment for such partial delivery or execution.

d. Defect or impropriety in the invoice or goods and/or services received - In instances where there is a defect or impropriety in an invoice or in the goods or services received, the state agency shall notify the supplier of the defect or impropriety, if the defect or impropriety would prevent payment by the July 2021 version

payment date. The notice shall be sent within fifteen days after receipt of the invoice or the goods or services. (Code of Virginia § 2.2-4351)

e. Interest penalty; exceptions - Interest shall accrue at the rate in paragraph f. on amounts owed by a state agency to a contractor unpaid after seven days, unless a contract specifies a different rate or manner.

f. The rate of interest charged a state agency pursuant to paragraph e. shall be the base rate on corporate loans (prime rate) at large United States money center commercial banks as reported daily in The Wall Street Journal. Whenever a split prime rate is published, the lower of the two rates is to be used.

However, the interest rate shall not exceed that established by Code of Virginia § 58.1-1812.

g. Notwithstanding paragraph e., no interest penalty shall be charged when payment is delayed because of a disagreement between a state agency and a contractor regarding the quantity, quality or time of delivery of goods or services or the accuracy of any invoice received for such goods or services. The exception from interest penalty provided by this paragraph shall apply only to that portion of a delayed payment which is actually the subject of such a disagreement and applies only for the duration of such disagreement.

h. Notwithstanding paragraph e., no interest penalty shall be paid to any debtor on any payment, or portion thereof, withheld pursuant to the Comptroller's Debt Set-off Program, as authorized by the Virginia Debt Collection Act (Code of Virginia, §§ 2.2-4801 through 2.2-4808), commencing with the date the payment is withheld. If, as a result of an error, a payment or portion thereof is withheld, and it is determined that at the time of set-off no debt was owed to the Commonwealth, then interest shall accrue at the rate determined pursuant to paragraph f. of this section on amounts withheld which remain unpaid after seven days following the payment date.

i. Date of postmark deemed to be date payment is made - In those cases where payment is made by mail, the date of postmark shall be deemed to be the date payment is made. Generally speaking, all checks released by the Department of Accounts will be on the 30th day following delivery and receipt of a proper invoice.

j. Notwithstanding the provisions of paragraph e., the provisions of Code of Virginia, § 2.2-4333, relating to retainage on construction contracts shall remain valid.

k. Utility tariffs prescribed by the State Corporation Commission are exempt from the provisions of 8.6.

l. Contractors submitting invoices for interest due from a state agency should include, as a minimum, the following data:

(1) Original purchase order number or contract number;

(2) Envelope bearing postmark of the date payment was made. Where the envelope is not available, interest will be computed from the second business day after date of issue of the check; July 2021 version

(3) Original invoice number and date;

(4) Date of WSJ publication used for the interest rate.

m. Payment for disputed items is due 30 days after resolution.

1. 7 Payment Requirements: All Contracts. All contracts awarded by state Agencies and Institutions require the following action to be taken by contractors:

a. Within seven days after receipt of amounts paid for work performed by the subcontractor under that contract:

(1) Pay the subcontractor their proportionate share of the total payment received from the agency for their work; or

(2) notify the agency and subcontractor, in writing, of his intention to withhold all or a part of the subcontractor's payment with the reason for nonpayment.

(3) A subcontractor may contact the contracting agency concerning non-payment and non-notification by the prime contractor. The agency will submit a Procurement Complaint Form to the prime contractor and the DGS/DPS Supplier Relationship Manager. The subcontractor has to show proof that it has not been paid by providing supportive document.

b. If an individual contractor, provide social security number in order to receive payment.

c. If a proprietorship, partnership or corporation, provide federal employer identification number.

d. Pay interest to subcontractors on all amounts owed by the contractor that remain unpaid after seven days following receipt by the contractor of payment from the state agency for work performed by the subcontractor under that contract, except for amounts withheld as allowed in paragraph 8.7a(2) above.

e. Interest shall accrue at the rate of one percent per month.

f. To include in each of its subcontracts a provision requiring each subcontractor to include or otherwise be subject to the same payment and interest requirements with respect to each lower-tier subcontractor.

g. All prime contractors shall report subcontracting activities in accordance with Appendix B., Special Terms and Conditions, Section II. 36. The contractor shall furnish monthly to the purchasing office, all applicable information for each subcontractor listed on the Small Business Subcontracting Plan via the Subcontractor payment tool available through the contractor’s eVA account. July 2021 version

NOTE: A contractor's obligation to pay an interest charge to a subcontractor may not be construed to be an obligation of a state agency or institution of the Commonwealth. A contract modification may not be made for the purpose of providing reimbursement for such interest charge. A cost reimbursement claim may not include any amount for reimbursement for such interest charge.

1. 8 Payment by Electronic Funds Transfer. The Commonwealth of Virginia disburses payments to vendors via paper checks. In addition, payments can be made to selected vendors with large transaction volume through the Commonwealth's Financial Disbursement System using Electronic Data Interchange (EDI) and its connectivity to the Automated Clearing House (ACH) network. Vendors who qualify for EDI through the Commonwealth's Financial Disbursement System will be paid in accordance with the Prompt Payment Act of Virginia which requires payment within 30 days of invoice or receipt of goods or services date, or by the terms and conditions established under contractual agreements with individual state agencies. Each party shall bear the respective fees and other charges assessed by its designated bank(s) and third party service providers for financial EDI payments. For additional information relating to benefits of using EDI and the eligibility criteria, contact the Department of Accounts Hotline at 804-692-0473 or https://www.doa.virginia.gov/reference.shtml#edi.

1. 9 eVA Transaction Fees.

a. Change Orders/Adjustments: The purchasing office is required to issue an eVA change order whenever the agency approves a change. A supplier, however, may request that an agency issue an eVA change order for any amount to ensure the supplier’s eVA transaction fee is accurate. Suppliers should contact the purchasing office that issued the eVA purchase order to request such a change.

Suppliers may contact eVA Billing Customer Care at 1-866-289-7367, Option 2 or eVACustomerCare@dgs.virginia.gov if additional assistance is required.

b. Refunds: Supplier credit balances that are reflected on eVA fee invoices are refundable upon validation of the credit balance by eVA Billing Customer Care. To request refund of a credit balance, the vendor must contact eVA Billing Customer Care at 1-866-289-7367, Option 2 or eVACustomerCare@dgs.virginia.gov July 2021 version

CHAPTER 9

PROTESTS AND APPEALS

In this Chapter look for . . .

1. General
2. 1 Deleted
3. 2 Deleted
4. 3 Appeal of Ineligibility or Disqualification Determination or Debarment
5. 4 Appeal of a Denial of Bid Withdrawal
6. 5 Appeal of Nonresponsibility Determination
7. 6 Protest of Award or Decision to Award
8. 7 Deleted.
9. 8 Exhaustion of Administrative Procedures.
10. 9 Effect of the Appeal on Procurement Proceedings
11. 10 Time and Place of Hearings
12. 11 Deleted
13. 12 Hearing Procedures
14. 13 Deleted
15. 14 Administrative Support
16. 15 Board's Decision
17. 16 Judicial Review
18. 17 Alternative Dispute Resolution

1. General. The Virginia Public Procurement Act (VPPA) provides that a public body may establish administrative procedures for hearing procurement protests and appeals. It is not intended that the administrative appeals procedures set forth in § 2.2-4365 supplant or interfere with the informal resolution of disputes between the procuring agency and the contractor. Informal resolution of complaints in lieu of appealing is encouraged. With the abolishment of the DGS/DPS Procurement Appeals Board, Purchasing Agencies are permitted to establish their own Procurement Appeals Board. Information in this chapter regarding appeals proceedings, Hearings, Procurement Boards and/or ADR is intended solely as guidance and not as a requirement.

1. 1 Deleted.

1. 2 Deleted.

1. 3 Appeal of Ineligibility or Disqualification Determination or Debarment (Code of Virginia, § 2.2-4357). Any bidder, offeror or contractor refused permission to participate, or disqualified from participation, in public contracts shall be notified in writing. Prior to the issuance of a written determination of disqualification or ineligibility, the public body shall (i) notify the bidder in writing of July 2021 version

the evaluation results, (ii) disclose factual support, and (iii) allow the bidder to inspect related documents if requested within five business days.

Within ten days of notice, the bidder may submit rebuttal. The public body shall issue a written decision on disqualification or ineligibility within five days of receiving rebuttal.

If the evaluation reveals that the bidder, offeror or contractor should be allowed permission to participate in the public contract, the public body shall cancel the proposed disqualification action. If the evaluation reveals that the bidder should be refused permission to participate, or disqualified from participation, in the public contract, the public body shall so notify the bidder, offeror or contractor. The notice shall state the basis for the determination, which shall be final unless the bidder appeals the decision within ten days after receipt of the notice by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in § 2.2-4364.

If on appeal the action is found arbitrary, capricious, or unconstitutional, the sole relief is restoration of eligibility.

1. 4 Appeal of a Denial of Bid Withdrawal. (Code of Virginia, § 2.2-4358). A decision denying withdrawal of bid under the provision of § 2.2-4330 shall be final and conclusive unless the bidder appeals the decision within ten days after receipt of the decision by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in § 2.2-4364. If, upon appeal, it is determined that the decision refusing withdrawal of the bid was not (i) an honest exercise of discretion, but rather was arbitrary or capricious or (ii) in accordance with the Constitution of Virginia, applicable state law or regulation, or the terms or conditions of the Invitation to Bid, the sole relief shall be withdrawal of the bid.

If no bid bond was posted, a bidder refusing withdrawal under § 2.2-4330 must deliver a certified check or cash bond equal to the difference between the bid to withdraw and the next low bid, released only after final determination of entitlement.

Security forfeited to Commonwealth if the final decision is adverse and the bidder fails to accept, enter into the contract, or appeal; if appealed and adverse, security is forfeited.

1. 5 Appeal of Nonresponsibility Determination. (Code of Virginia, § 2.2-4359). A bidder found nonresponsible for a particular procurement by the purchasing agency will be notified in writing of the results of the evaluation and disclose the factual support for the determination. If requested by the bidder within five business days after receipt of the notice, the bidder shall have an opportunity to inspect any documents which relate to the determination. Within ten business days after receipt of the notice, the bidder may submit rebuttal information challenging the evaluation. Within five business days of receipt July 2021 version

The agency shall issue a written responsibility determination based on all rebuttal information, with return receipt requested, stating the basis.

A nonresponsibility determination is final unless appealed within ten days via administrative procedures § 2.2-4365 or legal action § 2.2-4364, excluding prequalification appeals.

If on appeal the decision was arbitrary, capricious, or unlawful, and the contract not awarded, relief is a finding of responsibility or directed award per § 2.2-4364.

If the contract is awarded but performance not started, relief is as in § 2.2-4360.

If court finds a responsible bidder challenging nonresponsibility, it may direct award per § 2.2-4364 and the Invitation to Bid.

1. 6 Protest of Award or Decision to Award. (Code of Virginia, § 2.2-4360). Any bidder or offeror submitting a bid or proposal in response to a solicitation may protest the award or decision to award a contract by submitting such protest in writing (to include electronic and facsimile submissions) to the head of the purchasing office which issued the solicitation no later than ten days after public notice of the award or announcement of the decision to award is made whichever occurs first. Public notice of the award or the announcement of the decision to award shall be given by the public body in the manner prescribed in the terms or conditions of the solicitation. Any potential bidder or offeror on a contract negotiated on an emergency or sole source basis who desires to protest the award or decision to award such contract shall submit such protest in the same manner no later than ten days after posting or publication of the notice of such contract as provided in paragraphs 2.8 and 2.9. The written protest must be received in the purchasing office not later than 5:00 p.m. on the tenth day. If the tenth day falls on a weekend or an official holiday, the ten-day period expires at 5:00 p.m. on the next regular workday. The protest shall include the specific basis for the protest and the relief sought. The head of the purchasing office concerned will issue a decision in writing within ten days stating the reasons for the action taken. This decision shall be final unless the bidder or offeror appeals within ten days of receipt of the written decision by invoking administrative procedures meeting the standards of § 2.2-4365, if available, or in the alternative by instituting legal action as provided in the Code of Virginia, § 2.2-4364. If the protest of any actual or potential bidder or offeror depends in whole or in part upon information contained in public records pertaining to the procurement transaction which are subject to inspection, then the time within which the protest must be submitted shall expire ten days after those records are available for inspection by such bidder or offeror, or at such later time as provided in the Code of Virginia, § 2.2-4360. No protest shall lie for a claim that the selected bidder or offeror is not a responsible bidder or offeror. A bidder or offeror shall not challenge the validity of the terms or conditions of the Invitation for Bids or Request for Proposal. July 2021 version

If prior to an award it is determined that the decision to award is arbitrary or capricious, then the sole relief shall be a finding to that effect. The public body shall cancel the proposed award or revise it to comply with the law. If, after an award, it is determined that an award of a contract was arbitrary or capricious, then the sole relief shall be as hereinafter provided.

If award made but performance not started, contract may be enjoined; if performance started, the contract may be declared void if in public interest, with contractor compensated for costs but not profits.

After a hearing with notice, if probable cause exists that award was based on fraud, corruption, or violation of Article 6 § 2.2-4367, the award may be enjoined.

1. 7 Deleted.

1. 8 Exhaustion of Administrative Procedures. A bidder, offeror or contractor need not utilize administrative procedures meeting the standards of § 2.2-4365, if available, but if those procedures are invoked by the bidder, offeror or contractor, the procedures shall be exhausted prior to instituting legal action concerning the same procurement transaction unless the public body agrees otherwise (Code of Virginia, § 2.2-4364F).

1. 9 Effect of the Appeal on Procurement Proceedings.

a. Pending final determination of a protest or appeal, the validity of a contract awarded and accepted in good faith in accordance with Chapter 43, Title 2.2 of the Code of Virginia shall not be affected by the fact that a protest or appeal has been filed (Code of Virginia, § 2.2-4361).

b. An award need not be delayed for the period allowed a bidder or offeror to protest or appeal, but in the event of a timely protest or appeal as provided in § 2.2-4360, or the filing of a timely legal action as provided in § 2.2-4364, no further action to award the contract will be taken unless there is a written determination by the purchasing agency that award of the contract is necessary to protect the public interest or unless the bid or offer would expire (Code of Virginia, §2.2-4362). When such a written determination is made, copies shall be sent to all parties to a protest or appeal, and in the case of an appeal, to any applicable procurement appeals board.

1. 10 Time and Place of Hearings. The parties will be given at least a ten day notice of the time and place of the appeal hearing. Appeals may be heard earlier upon the consent of all parties.

1. 11 Deleted.

1. 12 Hearing Procedures. Hearings before procurement appeals boards are not trials and will not be conducted as such. The Administrative Process Act does not apply to these hearings (Code of Virginia, § July 2021 version

1. 2-4001). The hearings will be informal, and each party will be given a reasonable period of time to state their position. Any party may be represented by legal counsel at the hearing. Rules of evidence do not apply, except that the board may exclude evidence which is irrelevant or redundant and may limit testimony and argument as necessary to reasonably expedite the proceedings.

Witnesses may testify; the board has no subpoena power or oath requirement.

The board may ask questions at any time but may not question any of the parties in closed session. The board's chairperson may limit the number of witnesses and may permit or control the discussion to the extent that the board, in its opinion, determines that the discussion will contribute to the identification and resolution of the issues.

Hearings are open; deliberations are private.

Hearings generally proceed in this order, subject to the board's preferences:

a. The appealing party will state its reasons for appealing and the desired relief. Points of contention between the vendor and the public body will be limited to those points raised to the public body by the vendor in its letter of protest.

b. The appealing party will present its witnesses and evidence. The board and other parties will be able to ask questions of each witness.

c. Other parties may present their responses, the relief they desire, if any, and their witnesses and other evidence in the order determined by the board. Questions may be asked of their witnesses by the board or other parties to the appeal.

d. When all evidence and final arguments of the parties have been presented, the board shall deliberate in private session.

The hearings will be electronically recorded and the recordings retained for sixty days. If judicial review of the board's decision is instituted, the recording will be retained until the judicial review has been completed. Any party may provide a court reporter at its own expense. If a court reporter is used, transcripts of the hearing shall be given to the board at no expense upon its request. The board may make such a transcript a part of its record. If the board determines the transcript to be inaccurate or incomplete, it shall note for the record any inaccuracies or incomplete transcription of the hearing.

1. 13 Deleted.

1. 14 Administrative Support. The public body will furnish administrative support required including but not limited to arranging for a board hearing room, electronic recording facilities and supplies, and the preparation and mailing of hearing materials. July 2021 version

1. 15 Board's Decision. The board hearing the appeal will issue a written decision within ten business days of the hearing date except when it must await a transcript of the hearing, in which case it will issue a written decision within ten business days of receiving the transcript. The board's decision will include a brief statement of the relevant facts, as the board determined them to be true, which caused it to make its decision. This will be called the “Findings of Fact.” The board will then state its decision, giving in such detail as it considers necessary the reasons for its decision. The decision will be signed by the chairperson or designee.

1. 16 Judicial Review. Any party to a hearing before the board will be entitled to institute judicial review if such action is brought within thirty days after receipt of the board's written decision or within thirty days of attempted postal delivery of the board's written decision to the last mailing address provided to the board by the party.

Board's factual findings are final unless fraudulent, arbitrary, capricious, or in bad faith; legal issues are not final if timely legal action is filed.

1. 2-4365).

1. 17 Alternative Dispute Resolution (ADR)

a. Alternative Dispute Resolution is designed to increase the opportunity for relatively inexpensive and expeditious resolution of contract disputes resulting in a contractual claim. If an agency’s final decision denying a contractual claim is challenged, the contractor and the agency are encouraged to resolve the dispute through the informal ADR process described below. However, participating in the ADR process does not relieve the contractor from complying with the filing deadlines for claims listed in 7.19, and does not imply that the agency’s previously-issued decision is suspended or no longer final.

The contractor must notify the agency in writing of dispute; if agreed, each appoints a senior manager, not an attorney, to negotiate using relevant documents; facilitator encouraged.

No obligation to negotiate; parties may discontinue ADR at any time.

No agreement shall be deemed to arise from any communication during the ADR process, unless the agreement is reduced to writing and signed by duly-authorized representatives of both parties. Any settlement or compromise of claim must be approved by the Agency’s counsel at the Office of the Attorney General. July 2021 version

d. Any compensation and expenses paid to the facilitator shall be shared equally by the two parties. In no event shall either party be entitled to reimbursement from the other party for any other cost incurred or effort expended as a result of the ADR process. July 2021 version

APPENDIX A

DEFINITIONS

Absolute Preference: State considers only bids from resident contractors.

Administrative Lead Time: Period from requirement initiation to award issuance.

Affiliate means an individual or business controlling, controlled by, or under common control with another. Control is owning over 10% of voting securities, which confer voting rights or are convertible into such. A general partnership interest is a voting security.

Agency means any department, authority, board, post, commission, division, institution, or office of the Commonwealth.

Agency Purchase Order (APO): A form used by an agency to order goods, services, and printing on a State or term contract, or from non-contract sources within delegated authority.

Alternative Dispute Resolution (ADR): Voluntary procedures to resolve disputes without litigation, including mediation, fact-finding, and arbitration.

Appeal: Action by a bidder, offeror, or contractor to seek a hearing before a disinterested panel or court challenging a decision under Virginia Public Procurement Act §§ 2.2-4364 or 2.2-4365.

Bartering: Exchanging goods or services without money.

Benchmark: A reference point for measuring quality, value, performance, or price.

Best and Final Offer (BAFO): The final offer in response to an RFP after negotiations, with no further negotiations allowed; award based on rescoring of BAFOs.

Best Value: The optimal combination of quality, price, and service elements relative to a public body’s needs, as specified in the solicitation. Applicable to goods and nonprofessional services, not construction or professional services, per Code of Virginia § 2.2-4301.

Best Value Acquisition (BVA): A process applying best value concepts to procure goods and nonprofessional services, with awards based on evaluation criteria considering price and benefits.

Bid: A competitively priced offer made by an intended seller, usually in reply to an Invitation for Bids (IFB). A price offer made at a public auction. July 2021 version

Bid Bond: An insurance agreement where a third party pays if a bidder fails to accept the contract as bid.

Bidder: One submitting a competitive offer in response to an IFB.

Blanket Purchase Agreement (BPA): An arrangement under which a purchaser contracts with a vendor to provide for a purchaser’s frequent, repetitive, small-order requirements for an item(s) or a service, on an as-required and over-the-counter basis. Properly prepared, such an arrangement sets a limit on the period of time it is valid and the maximum amount of money which may be spent at one time, or within a specified period, and specifically identifies those persons authorized to order or accept goods. The BPA may also contain other terms and conditions, such as the discount or the specific price list that applies to purchases made under the agreement and what items and services are included (or excluded) under the agreement.

Boiler Plate: General Terms and Conditions.

Broker: An independent representative dealing in products or goods with an established relationship with the supplier before bidding.

Business: Any profit-operated corporation, partnership, LLC, association, or sole proprietorship.

Charge Card: State-approved SPCC for small, frequent MRO purchases and orders within transaction limits against term contracts.

Claim: Written demand by a party seeking payment, contract adjustment, or relief for injury, loss, or damage under the contract.

Collusion: Secret agreement between parties to commit fraud or unlawful acts.

Collusive Bidding: Illegal practice where suppliers collude to fix bids advantageously.

Commodity Code: Symbols used to describe commodities, e.g., Class 410 Furniture or 904 Services, to facilitate data sorting and analysis.

Competitive Bidding: Firm bids offered by competing individuals or firms for contracts or rights to supply goods or services.

Competitive Negotiation: A method for purchasing complex goods/services via RFP, with negotiations leading to award based on criteria evaluation.

Competitive Sealed Bid: A bid submitted in a sealed envelope to prevent disclosure of its contents before the deadline set for the receipt of all bids. Competitive sealed bidding shall not be used to contract for professional services.

Confirming Purchase Order: An agency-issued order after informal oral or other purchase, marked “CONFIRMING ORDER. DO NOT DUPLICATE”.

Consideration: Value exchanged for a promise, a key element of a contract.

Construction: Construction shall mean building, altering, repairing, improving or demolishing any structure, building or highway, and any draining, dredging, excavation, grading or similar work upon real property (Code of Virginia, § 2.2-4301). July 2021 version

Construction Management Contract: An agreement where a party coordinates and administers construction contracts for the owner, possibly providing construction services.

Consulting Services: Advisory advice or assistance provided for a fee by an outside entity under contract to an agency.

Consumer Price Index (CPI): The Consumer Price Index is a measure of the average change in prices over time in a fixed market basket of goods and services. Two CPIs are published: 1) the CPI for All Urban Consumers (CPI-U) which covers about 80% of the total populations and 2) the CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32% of the total population. The CPI is based upon prices of food, clothing, shelter, transportation, medical care, and other goods and services that people buy for day-to-day living.

Contract: As a noun, it is an enforceable agreement between competent parties to do or not do something, not prohibited by law, including specifications, scope, conditions, modifications, and vendor response. As a verb, it means making an agreement for consideration.

Contract Administration: Managing all aspects to ensure the Contractor’s performance complies with contractual commitments and obligations are fulfilled.

Contract Management: The management of the organization's contracts and contract-related activities which may include accounting, administration, auditing, grants management, law, negotiation, logistics, price-structure compensation, delegation of purchasing authority, program management, termination and other business activities.

Contract, Cost-Plus-A-Fixed-Fee: A cost-reimbursement contract paying a fixed fee to the contractor.

The fixed fee, once negotiated, does not vary with actual cost but may be adjusted for scope or service changes.

Contract, Cost-Plus-A-Percentage-Of-Cost: A contract providing a fee or profit at a percentage of the contractor’s actual costs.

Contract, Design-Build: An agreement where the contractor designs and constructs the specified structure or item for a public body.

Contract, Fixed Price: A contract with a firm price at award, where the contractor bears full profit or loss risk.

Contract, Fixed Price, Incentive: A fixed price with target cost/profit, ceiling, and sharing of savings below target; contractor bears all costs above ceiling.

Contract, Fixed-Price with Escalation/De-escalation: A fixed price contract allowing price adjustments for defined contingencies like material or labor cost changes.

Contract, Requirements Type: Long-term contract for estimated or range-limited quantities, with on-demand deliveries, typically lasting one year or more.

Contract, Service: An agreement for work by an independent contractor, not primarily involving equipment or material acquisition or rental.

Contract, Time and Material: A contract providing for the procurement of supplies or services on the basis of direct labor hours at specified fixed hourly rates (which include direct and indirect labor, overhead, and profit) and material at cost, or at some bid percentage discount from manufacturer’s catalog or list prices. July 2021 version

Contract Officer, Purchase Officer, Buyer: State employee primarily responsible for purchasing goods or services.

Contractor: An individual or firm that has an agreement to supply goods or services to the Commonwealth.

Cooperative Procurement: Public bodies jointly purchasing similar goods or services to improve efficiency and reduce costs.

Typically, one public body leads, others may purchase from the contract.

CORPRINT: Department of Corrections, Industrial Enterprises, Printing Facilities.

Cure Notice: A notice, either oral or in writing, that informs the Contractor that he or she is in default and states what the Contractor has to do to correct the deficiency. If the notice is oral it shall be confirmed in writing.

Debarment: Action by DPS or designee to exclude individuals or firms from contracting with state agencies for specified goods or nonprofessional services (Code of Virginia, § 2.2-4321).

Default: Failure to comply with contract terms and conditions.

Design Specification: Purchase specification outlining essential characteristics for bid consideration.

Disadvantaged Business: Small business at least 51% owned and controlled by socially and economically disadvantaged individuals.

Dispute: Contract performance or term disagreement requiring administrative resolution.

See protest, alternative dispute resolution.

Distributor: Business or individual buying and selling products from manufacturers, often a wholesaler with inventory.

Division of Purchases and Supply (DPS): A division of the Department of General Services.

DGS/DPS is the State's centralized purchasing agency for materials, equipment, supplies, nonprofessional service and printing.

DGS/DPS prescribes rules for purchasing materials, supplies, equipment, nonprofessional services, and printing (Virginia Code § 2.2-1109).

Drug-free Workplace: A site performing work under a VPPA contract where employees are prohibited from engaging in unlawful manufacture, sale, distribution, dispensation, possession, or use of controlled substances or marijuana during contract performance.

Emergency: A serious, urgent occurrence requiring immediate action.

Employment Services Organization (ESO): An organization providing community-based employment services to individuals with disabilities, approved by CARF as a vendor of the Department for Aging and Rehabilitative Services.

Ethics: Relating to moral action, conduct, motive, or character; conforming to professional standards. VPPA covers “Ethics in Public Contracting” (Code of Virginia §§ 2.2-4367–2.2-4377).

Evaluation of Bids: The process of examining a bid after opening to determine the bidder’s responsibility, responsiveness to requirements, and other characteristics of the bid relating to selection for award. July 2021 version

E-Verify Program: Electronic verification of work authorization for newly hired employees under the Immigration Reform and Control Act of 1986 (P.L. 99-603).

Expedite: Contacting a supplier or carrier to speed delivery (see also Follow-Up).

Fair Market Value: The price agreed upon by knowledgeable buyers and sellers in the open market, substantiated by data, including the lowest recent sale of similar goods/services to the agency or others.

Follow-Up: Monitoring purchase status to ensure delivery schedules are met.

Force Majeure: An extraordinary, unavoidable natural event or act of God that cannot be anticipated, prevented, or controlled.

General Terms and Conditions: Standard clauses in all solicitations and contracts derived from laws or agency procedures (also called “Boiler Plate”).

Goods: Material, equipment, supplies, printing, and data processing hardware/software (Code of Virginia § 2.2-4301).

Grant (or Grant-in-Aid): Fund transfers between parties (e.g., federal to state/local) for procurement of goods/services for public interest or benefit, as specified by the grant terms.

Hazardous Material: Substance or material deemed by the U.S. Secretary of Transportation to pose unreasonable risk to health, safety, or property during transport.

Informality: Minor defect or variation from bid or RFP requirements that does not affect price, quality, quantity, or delivery (Virginia Code § 2.2-4301).

Information Technology: Telecommunications, data processing, databases, Internet, management systems, and related equipment, goods, and services.

Inspection: Examination and testing to verify goods and services meet contract requirements.

Invitation for Bids (IFB): Document soliciting written bids for specific goods or nonprofessional services, including specifications and contractual terms, also called “Invitation to Bid.”

Joint Procurement: A procurement by a public body with one or more other public bodies, for the purpose of combining requirements for the purchase of like goods and/or services in order to increase efficiency and/or reduce administrative expenses. All authorized parties are involved in the procurement process and only those parties can participate in jointly purchasing from the contract. No other public bodies can purchase from the contracts as joint purchasers.

Late Bid or Proposal: Bid or proposal received after the deadline in the solicitation.

Latent Defect: Hidden defect impairing value or utility, not detectable visually, such as non-specification materials or missing internal parts.

Logistics: The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. July 2021 version

Life-Cycle Costing: Cost analysis including purchase price, operating, maintenance, downtime, energy, and salvage costs over an asset's life.

Liquidated Damages: Contractually specified damages for non-performance, must be a reasonable estimate of probable loss, not a penalty.

Method of Payment: Specifies when the payment will be made, e.g. upon delivery, monthly, quarterly, completion of project, etc.

Also specifies the details and location of where invoices are to be submitted, e.g. by the 10th of the month following the month services were rendered, upon shipment, completion of project, etc. Additionally, it should also indicate the anticipated type of payment, e.g.

SPCC, check, EDI, etc.

Micro Business: Business designated per Virginia DSBSD regulations, requirements at www.sbsd.virginia.gov.

Minority Individual: U.S. citizen or lawfully compliant non-citizen satisfying one or more minority definitions.

African American: Person of origins in Africa, recognized as such by their community.

“Asian American” means a person with origins in Far East, Southeast Asia, Indian subcontinent, or Pacific Islands, including Japan, China, Vietnam, Samoa, Laos, Cambodia, Taiwan, Northern Marinas, Philippines, U.S. Pacific territories, India, Pakistan, Bangladesh, or Sri Lanka, regarded as such by their community.

“Hispanic American” means a person with origins in Spanish-speaking Mexico, South or Central America, Caribbean, or other Spanish or Portuguese cultures, regarded as such by their community.

“Native American” means a person with origins in North American original peoples, regarded as such by their community or recognized by a tribal organization.

Minority-Owned Business: a business certified per Regulations of the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification details at www.sbsd.virginia.gov.

Multiple Awards: awarding multiple contracts for identical goods/services from one solicitation. When included, awards may go to more than one bidder, limited to the minimum necessary for a workable program (Code of Virginia, § 2.2-4301).

"Must" and "shall" in RFPs specify requirements critical to solution suitability. "Should" or "may" are desirable but not essential.

Negotiation: a bargaining process where parties with different views seek mutually beneficial agreement on common concerns.

Non-Competitive Negotiation: reaching agreement through discussion when only one source is practicable.

Nonprofessional Services: Any services not specifically identified as professional services in the definition of professional services (Code of Virginia, § 2.2-4301). July 2021 version

Notice of Award: public notice of award for a bid or negotiation.

Notice of Intent to Award: written or displayed notice before award showing selected vendor, subject to change before final award.

Offeror: person submitting an offer in response to RFP.

Official Responsibility: defined in § 2.2-4368 as authority to initiate, approve, disapprove, or affect procurement or claims.

Order/Ship Time (OST): time after award for suppliers to fill and ship order via designated means to delivery point.

Payment Bond for Labor and Material: bond ensuring contractor pays all laborers and suppliers in contract performance.

Performance Bond: guarantee in full contract amount post-award to protect against contractor’s failure to complete per terms.

Performance Specification: requirements necessary for the item to perform and last as needed.

Potential Bidder or Offeror: person engaged in sale or lease of goods/services, insurance, or construction, eligible and qualified to perform or bid, at the time of award (Code of Virginia, § 2.2-4301).

Pre-bid or Pre-proposal Conference: meeting with prospective bidders before submission to review and clarify technical considerations, specs, and standards.

Prequalification: procedure to prequalify products or vendors, limiting consideration to prequalified ones.

Printing: process of producing printed material via press, copier, or similar means.

Procurement: procedures for obtaining goods/services from planning and requisition to delivery and payment processing.

Professional Organization: Generally defined as a group of professional individuals in a like occupation charged with educating, certifying or lobbying for its members.

Professional Services: Shall mean work performed by an independent contractor within the scope of the practice of accounting, actuarial services, architecture, land surveying, landscape architecture, dentistry, law, medicine, optometry, pharmacy, or professional engineering. “Professional Services” shall also include services of an economist procured by the State Corporation Commission (Code of Virginia, § 2.2-4301).

Proposal: offer by one party to another as basis for negotiations before contract formation.

Proprietary Specification: A specification that restricts the acceptable product(s) or service(s) to that of one or more manufacturer(s) or vendor(s). A common example would be the use of a “brand name” specification that would exclude consideration of proposed “equals.” Although all sole source specifications are proprietary, all proprietary specifications are not sole source. Proprietary items may be available from several distributors through competitive bidding. July 2021 version

Protest: written complaint by bidder or offeror about an administrative action or decision seeking remedial relief.

Public Bid Opening: process of opening and reading bids at specified time and place, open to all attendees.

Public Body: state-funded agency required to follow Virginia Code and VPPA in procurement, unless exempted.

Public Telecommunications Services: non-commercial educational or cultural radio/TV programs and related materials transmitted electronically (see “Telecommunications Services”).

Purchase Order: A document used by DGS/DPS to execute a purchase transaction with a vendor. It serves as notice to a vendor that an award has been made and that performance can be initiated under the terms and conditions of the contract.

Purchasing Agency: A state agency or institution purchasing goods or services.

Qualified Contractors List (QCL): A list of contractors approved after evaluation based on prequalification procedures.

Qualified Products List (QPL): A list of products tested and approved through prequalification procedures.

Regular Dealer: A person or firm owning or operating a store, warehouse, or establishment that stocks and sells materials, supplies, or equipment as described by specifications in usual business.

Request for Information (RFI): An informal document issued when an agency is unaware of market products that may meet its needs. RFIs do not require requisitions and cannot form agreements; they may lead to requisitions, IFBs, or RFPs.

Request for Proposals (RFP): All documents used to solicit proposals, requiring negotiation with offerors, including prices, unlike competitive bidding with Invitations for Bids.

Responsible Bidder or Offeror: A person or firm capable of fully performing the contract with integrity and reliability, prequalified if required (Code of Virginia, § 2.2-4301).

Responsive Bidder: A person or firm whose bid conforms in all material respects to the Invitation for Bids (Code of Virginia, § 2.2-4301).

Restocking Charge: Charges to a purchasing agency for returned goods, covering the vendor's normal costs for accepting the return (see section 10.8).

Reverse auctioning: A procurement method where bidders bid in real-time electronically on specified goods or nonprofessional services, with the lowest responsible bidder winning; bidders can modify bids during the bidding period. It applies to goods and nonprofessional services, not construction or professional services.

Sealed Bid: A bid which has been submitted in a sealed envelope to prevent its contents from being revealed or known before the deadline for the submission and opening of all bids. July 2021 version

Services: Activities performed by an independent contractor that do not primarily involve acquiring or renting equipment, materials, or supplies (Code of Virginia, § 2.2-4301).

Service Disabled Veteran Owned Business: A business at least 51% owned by one or more service-disabled veterans, with management and operations controlled by them.

SDVOSB: A DSBSD-Certified Small Business owned by a DVS-Certified Service Disabled Veteran, designated in the SWaM database; not a separate certification. Veterans must seek eligibility from the Dept. of Veteran Services. https://www.dvs.virginia.gov/benefits/virginia-swam-program-sdvosb-designation/

Set-asides: Reserving procurements for a specific group, primarily to award contracts exclusively to small businesses.

"Shall" and "must": In RFPs, these indicate essential requirements; "should" and "may" are desirable but not critical.

"Should" and "May": In RFPs, these are desirable but not essential.

Single Source: A sole response to a competitive solicitation where only one response was received (see paragraph 2.4i).

Small Business: A business certified by the Virginia Department of Small Business and Supplier Diversity (DSBSD). Certification details are at www.sbsd.virginia.gov.

Small Business Subcontracting Plan: A form where bidders provide their DSBSD certification status or small business utilization plan for a specific solicitation.

Software: All applications and systems software, including assemblers, compilers, database systems, backup, job accounting, operating systems, and development tools.

Sole Source: A product or service available only from one source.

Solicitation: An IFB, RFP, Quick Quote, Faxback, calls, or any document issued to obtain bids or proposals for a contract.

Special Terms and Conditions: Clauses specific to a procurement that may supplement or supersede general terms, e.g., Award Clause, Contract Extension.

Specification: A description of the technical requirements for a material, product, or service that includes the criteria for determining whether these requirements are met. A specification may describe the performance parameters which a supplier has to meet, or it may provide a complete design disclosure of the work or job to be done. Specifications for service contracts normally take the form of a statement of work. July 2021 version

Sponsorship: Benefits exceeding nominal value received by a Commonwealth public body from a non-Commonwealth entity, including vendor funding for events.

Spot Purchase: A one-time purchase made in the open market. If it is under the small purchase threshold, it will be made in accordance with the applicable small purchase procedures. If it is over the small purchase threshold, it will be made by competitive sealed bidding or by an exception thereto authorized by law.

Subcontractor: An entity contracted to supply labor or materials to the main contractor or another subcontractor for the work.

Surplus Property: Property which is in excess of the needs of an agency and which is not required for its foreseeable need. The property may be used or new, but possess some usefulness for the purpose for which it was intended or for some other purpose. It includes scrap, which is material that is damaged, defective, or deteriorated to the extent that it has no value except for its basic material content. Surplus Property must be disposed of in accordance with Code of Virginia, § 2.2-1124.

SWaM includes small, women-owned, and minority-owned businesses certified per Regulations by DSBSD. Certification details are at www.sbsd.virginia.gov. Refer to definitions in this Appendix.

Technical Proposal: An unpriced detailed proposal of what a vendor offers in response to a solicitation.

Technical Specifications: Requirements for materials and performance of goods and services.

Telecommunications Equipment: Defined as, but not limited to: channel service units, data compression units, line drivers, bridges, routers, and Asynchronous Transfer Mode switches (ATM), multiplexors and modems. Also, private branch exchanges (PBX), Integrated Services Digital Network (ISDN) terminal equipment, voice mail units, automatic call distribution (ACD), voice processing units and key systems. Video communications products such as: coders, multi-point conferencing units and inverse multiplexors.

Telecommunications Services include, but are not limited to: data services (point-to-point, Internet, Frame Relay, SMDS, ATM, dial-up), voice services (Centrex, private/WATS lines, long distance, voicemail, pay phones, wireless, cellular).

Term Contracting: Establishing a supply source for a set period, based on indefinite or specified quantities to be ordered as needed. See Contract, Requirements Type.

Termination For Convenience: Commonwealth purchase office may terminate work wholly or partly at its discretion, settling claims per policy and procedures.

Termination For Default: Purchasing office orders contractor to cease work due to failure to perform per contract terms.

Total Value: The total of all considerations (monetary and non-monetary) from all parties (public body, contractors and any third parties) for the initial period of the contract plus any possible renewal periods. If the total value is up to and including $100,000, then the small purchase procedures shall apply. If the total value is over $100,000, a decision must be made to use competitive sealed bidding or competitive negotiations. Also see emergency and sole source procurements if applicable.

Unsealed Bid: Written offer sent via mail, courier, fax, email, Quick Quote, or other means, typically opened and recorded upon receipt.

Used Equipment: Equipment which has been previously owned and used and is offered “where is” “as is.” It does not include demonstration, factory rebuilt or remanufactured equipment marketed through normal distribution outlets. July 2021 version

Value Analysis: Systematic evaluation of a good or service’s function versus cost, potentially altering specs and quality to reduce costs without impairing functionality.

Vendor: One who sells goods or services.

Virginia-Grown Food Products: Food products grown, harvested, raised, or caught in Virginia meeting standards of the Virginia Department of Agriculture and Consumer Services.

Virginia Public Procurement Act: Chapter 43 of Title 2.2, Code of Virginia, outlining policies for government procurement from nongovernmental sources.

Will: In Bids or RFPs, indicates an obligation incurred by the agency or owner.

Women-Owned Business: Certified business per Regulations by DSBSD. Certification details at https://www.sbsd.virginia.gov.

Written; writing; writings; in writing: The words “written,” “writing,” “writings,” and “in writing” shall include any representation of words, letters, symbols, numbers, or figures, whether (i) printed or inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in a perceivable form and whether an electronic signature authorized by Chapter 42.1 (§et seq.) of Title 59.1 is or is not affixed (Code of Virginia, § 1-13.32). July 2021 version

APPENDIX B Section I Terms and Conditions & Instructions To Vendors These terms and conditions are incorporated by reference in the eVA purchase order. These terms and conditions apply to purchases between the agency or institution and the contractor, unless otherwise modified in writing on the face of the PO.

1. This agreement is subject to the Virginia Vendors Manual and revisions published by the Department of General Services.

1. Goods or services must strictly follow the bid and are subject to inspection upon receipt. Rejected items remain vendor property.

1. Vendor shall include the purchase order number on all related documents.

1. Invoices for this order or shipments must be sent immediately after shipment to the specified address.

1. Tax exemption certificate (Form ST-12) will be issued upon request if not on file.

1. Deliveries must be free of excise or transportation taxes; exemption no. 54-73-0076k may be used if needed.

1. Payment is due 30 days after receipt of proper invoice or materials/services, whichever is later.

1. Prompt payment discount period begins upon receipt of invoice or materials, whichever is later.

1. If the vendor defaults or fails to deliver on time, the Commonwealth may procure elsewhere and hold the vendor responsible for excess costs after notice.

10. No substitution, change, or deviation without written authority via Purchase Order Change.

11. Vendors and contractors assure conformity with the Civil Rights Act of 1964 and Virginia Fair Employment Contracting Act of 1975, where applicable.

12. This Purchase Order/Contract is governed in all respects by Virginia laws.

13. All prices unless otherwise specified are net F.O.B. Destination with transportation charges prepaid.

14. For freight or express shipments with charges on invoice, the original bill of lading must accompany the invoice. All charges are prepaid.

15. Vendors and contractors working on Commonwealth property must maintain insurance coverage as listed in the Vendors Manual and revisions.

16. eVA Transaction Fee invoices are issued by the Virginia Department of General Services; fee schedule is on www.eva.virginia.gov.

• July 2010 July 2021 version

REQUIRED GENERAL TERMS AND CONDITIONS

GOODS AND NONPROFESSIONAL SERVICES

Section II

A. VENDORS MANUAL

B. APPLICABLE LAWS AND COURTS

C. ANTI-DISCRIMINATION

D. ETHICS IN PUBLIC CONTRACTING

E. IMMIGRATION REFORM AND CONTROL ACT OF 1986

F. DEBARMENT STATUS

G. ANTITRUST

H. MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS

I. CLARIFICATION OF TERMS

J. PAYMENT

K. PRECEDENCE OF TERMS

L. QUALIFICATIONS OF BIDDERS OR OFFERORS

M. TESTING AND INSPECTION

N. ASSIGNMENT OF CONTRACT

O. CHANGES TO THE CONTRACT

P. DEFAULT

Q. TAXES

R. USE OF BRAND NAMES

S. TRANSPORTATION AND PACKAGING

T. INSURANCE

U. ANNOUNCEMENT OF AWARD

V. DRUG-FREE WORKPLACE W. NONDISCRIMINATION OF CONTRACTORS X. eVA BUSINESS-TO-GOVERNMENT VENDOR REGISTRATION

Y. AVAILABILITY OF FUNDS

Z. SET-ASIDES IN ACCORANCE WITH THE SMALL BUSINESS ENHANCEMENT AWARD PRIORITY

AA. BID PRICE CURRENCY

BB. AUTHORIZATION TO CONDUCT BUSINESS IN THE COMMONWEALTH

CC. CIVILITY IN STATE WORKPLACES

These General Terms and Conditions apply to written solicitations by state agencies under this manual unless modified by the legal advisor.

For service contracts, clauses Q, R, and S are typically omitted; for goods contracts, clause T may be omitted.

A. VENDORS MANUAL: This solicitation is subject to the provisions of the Commonwealth of Virginia Vendors Manual and any changes or revisions thereto, which are hereby incorporated into this contract in their entirety. The process for filing a complaint about this solicitation is in section 7.13 of the Vendors Manual. (Note section 7.13 does not apply to protests of awards or formal contractual claims.) The procedure for filing contractual claims is in section 7.19 of the Vendors Manual. A copy of the manual is normally July 2021 version

available for review at the purchasing office and is accessible on the Internet at www.eva.virginia.gov under “I Sell To Virginia”.

B. APPLICABLE LAWS AND COURTS: This solicitation and any resulting contract shall be governed in all respects by the laws of the Commonwealth of Virginia, without regard to its choice of law provisions, and any litigation with respect thereto shall be brought in the circuit courts of the Commonwealth. The agency and the contractor are encouraged to resolve any issues in controversy arising from the award of the contract or any contractual dispute using Alternative Dispute Resolution (ADR) procedures (Code of Virginia, § 2.2-4366). ADR procedures are described in Chapter 9 of the Vendors Manual. The contractor shall comply with all applicable federal, state and local laws, rules and regulations.

C. ANTI-DISCRIMINATION: By submitting their (bids/proposals), (bidders/offerors) certify to the Commonwealth that they will conform to the provisions of the Federal Civil Rights Act of 1964, as amended, as well as the Virginia Fair Employment Contracting Act of 1975, as amended, where applicable, the Virginians With Disabilities Act, the Americans With Disabilities Act and § 2.2-4311 of the Virginia Public Procurement Act (VPPA). If the award is made to a faith-based organization, the organization shall not discriminate against any recipient of goods, services, or disbursements made pursuant to the contract on the basis of the recipient's religion, religious belief, refusal to participate in a religious practice, or on the basis of race, age, color, gender, sexual orientation, gender identity or national origin and shall be subject to the same rules as other organizations that contract with public bodies to account for the use of the funds provided; however, if the faith-based organization segregates public funds into separate accounts, only the accounts and programs funded with public funds shall be subject to audit by the public body. (Code of Virginia, § 2.2-

4343.1E).

In contracts over $10,000, provisions 1. and 2. apply:

1. During the performance of this contract, the contractor agrees as follows:

a. The contractor will not discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification reasonably necessary to the normal operation of the contractor. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

b. The contractor, in all solicitations or advertisements for employees placed by or on behalf of the contractor, will state that such contractor is an equal opportunity employer.

c. Notices, advertisements and solicitations placed in accordance with federal law, rule or regulation shall be deemed sufficient for the purpose of meeting the requirements of this section.

d. If the contractor employs more than five employees, the contractor shall (i) provide annual training on the contractor's sexual harassment policy to all supervisors and employees providing services in the Commonwealth, except such supervisors or employees that are required to complete sexual harassment training provided by the Department of Human Resource Management, and (ii) post the contractor's sexual harassment policy in (a) a conspicuous public place in each building located in July 2021 version

the Commonwealth that the contractor owns or leases for business purposes and (b) the contractor's employee handbook.

e. The requirements of these provisions 1. and 2. are a material part of the contract. If the Contractor violates one of these provisions, the Commonwealth may terminate the affected part of this contract for breach, or at its option, the whole contract. Violation of one of these provisions may also result in debarment from State contracting regardless of whether the specific contract is terminated.

f. In accordance with Executive Order 61 (2017), a prohibition on discrimination by the contractor, in its employment practices, subcontracting practices, and delivery of goods or services, on the basis of race, sex, color, national origin, religion, sexual orientation, gender identity, age, political affiliation, disability, or veteran status, is hereby incorporated in this contract.

1. The contractor shall include the provisions of 1. above in every subcontract or purchase order over $10,000, making them binding on each subcontractor or vendor.

D. ETHICS IN PUBLIC CONTRACTING: By submitting their (bids/proposals), (bidders/offerors) certify that their (bids/proposals) are made without collusion or fraud and that they have not offered or received any kickbacks or inducements from any other (bidder/offeror), supplier, manufacturer or subcontractor in connection with their (bid/proposal), and that they have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value was exchanged.

E. IMMIGRATION REFORM AND CONTROL ACT OF 1986: Applicable for all contracts over $10,000: By entering into a written contract with the Commonwealth of Virginia, the Contractor certifies that the Contractor does not, and shall not during the performance of the contract for goods and services in the Commonwealth, knowingly employ an unauthorized alien as defined in the federal Immigration Reform and Control Act of 1986.

F. DEBARMENT STATUS: By participating in this procurement, the vendor certifies that they are not currently debarred by the Commonwealth of Virginia from submitting a response for the type of goods and/or services covered by this solicitation. Vendor further certifies that they are not debarred from filling any order or accepting any resulting order, or that they are an agent of any person or entity that is currently debarred by the Commonwealth of Virginia.

If a vendor is created or used for the purpose of circumventing a debarment decision against another vendor, the non-debarred vendor will be debarred for the same time period as the debarred vendor.

G. ANTITRUST: By entering into a contract, the contractor conveys, sells, assigns, and transfers to the Commonwealth of Virginia all rights, title and interest in and to all causes of action it may now have or hereafter acquire under the antitrust laws of the United States and the Commonwealth of Virginia, relating to the particular goods or services purchased or acquired by the Commonwealth of Virginia under said contract.

H. MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS FOR IFBs AND RFPs: July 2021 version

1. (For Invitation For Bids): Failure to submit a bid on the official state form provided for that purpose shall be a cause for rejection of the bid. Modification of or additions to any portion of the Invitation for Bids may be cause for rejection of the bid; however, the Commonwealth reserves the right to decide, on a case by case basis, in its sole discretion, whether to reject such a bid as nonresponsive. As a precondition to its acceptance, the Commonwealth may, in its sole discretion, request that the bidder withdraw or modify nonresponsive portions of a bid which do not affect quality, quantity, price, or delivery. No modification of or addition to the provisions of the contract shall be effective unless reduced to writing and signed by the parties.

1. (For Request For Proposals): Failure to submit a proposal on the official state form provided for that purpose may be a cause for rejection of the proposal. Modification of or additions to the General Terms and Conditions of the solicitation may be cause for rejection of the proposal; however, the Commonwealth reserves the right to decide, on a case by case basis, in its sole discretion, whether to reject such a proposal.

I. CLARIFICATION OF TERMS: If any prospective (bidder/offeror) has questions about the specifications or other solicitation documents, the prospective (bidder/offeror) should contact the buyer whose name appears on the face of the solicitation no later than five working days before the due date. Any revisions to the solicitation will be made only by addendum issued by the buyer.

J. PAYMENT:

1. To Prime Contractor:

a. Invoices for items ordered, delivered and accepted shall be submitted by the contractor directly to the payment address shown on the purchase order/contract. All invoices shall show the state contract number and/or purchase order number; social security number (for individual contractors) or the federal employer identification number (for proprietorships, partnerships, and corporations).

b. Any payment terms requiring payment in less than 30 days will be regarded as requiring payment 30 days after invoice or delivery, whichever occurs last. This shall not affect offers of discounts for payment in less than 30 days, however.

c. All goods or services provided under this contract or purchase order, that are to be paid for with public funds, shall be billed by the contractor at the contract price, regardless of which public agency is being billed.

d. The following shall be deemed to be the date of payment: the date of postmark in all cases where payment is made by mail, or when offset proceedings have been instituted as authorized under the Virginia Debt Collection Act.

e. Unreasonable Charges. Under certain emergency procurements and for most time and material purchases, final job costs cannot be accurately determined at the time orders are placed. In such cases, contractors should be put on notice that final payment in full is contingent on a determination July 2021 version

of reasonableness with respect to all invoiced charges. Charges which appear to be unreasonable will be resolved in accordance with Code of Virginia, § 2.2-4363 and -4364. Upon determining that invoiced charges are not reasonable, the Commonwealth shall notify the contractor of defects or improprieties in invoices within fifteen (15) days as required in Code of Virginia, § 2.2-4351.,. The provisions of this section do not relieve an agency of its prompt payment obligations with respect to those charges which are not in dispute (Code of Virginia, § 2.2-4363).

2. To Subcontractors:

a. Within seven (7) days of the contractor’s receipt of payment from the Commonwealth, a contractor awarded a contract under this solicitation is hereby obligated:

(1) To pay the subcontractor(s) for the proportionate share of the payment received for work performed by the subcontractor(s) under the contract; or

(2) To notify the agency and the subcontractor(s), in writing, of the contractor’s intention to withhold payment and the reason.

b. The contractor is obligated to pay the subcontractor(s) interest at the rate of one percent per month (unless otherwise provided under the terms of the contract) on all amounts owed by the contractor that remain unpaid seven (7) days following receipt of payment from the Commonwealth, except for amounts withheld as stated in (2) above. The date of mailing of any payment by U. S. Mail is deemed to be payment to the addressee. These provisions apply to each sub-tier contractor performing under the primary contract. A contractor’s obligation to pay an interest charge to a subcontractor may not be construed to be an obligation of the Commonwealth.

1. Prime contractors awarded with a SWaM procurement plan condition must, before final payment, deliver evidence and certification of compliance (except minor or subcontractor defaults). Final payment may be withheld until certification is received and confirmed, or penalties may be applied.

1. The Commonwealth encourages contractors and subcontractors to accept electronic and credit card payments.

K. PRECEDENCE OF TERMS: The following General Terms and Conditions VENDORS MANUAL,

APPLICABLE LAWS AND COURTS, ANTI-DISCRIMINATION, ETHICS IN PUBLIC

CONTRACTING, IMMIGRATION REFORM AND CONTROL ACT OF 1986, DEBARMENT STATUS, ANTITRUST, MANDATORY USE OF STATE FORM AND TERMS AND CONDITIONS, CLARIFICATION OF TERMS, PAYMENT shall apply in all instances. In the event there is a conflict between any of the other General Terms and Conditions and any Special Terms and Conditions in this solicitation, the Special Terms and Conditions shall apply. July 2021 version

L. QUALIFICATIONS OF (BIDDERS/OFFERORS): The Commonwealth may make such reasonable investigations as deemed proper and necessary to determine the ability of the (bidder/offeror) to perform the services/furnish the goods and the (bidder/offeror) shall furnish to the Commonwealth all such information and data for this purpose as may be requested. The Commonwealth reserves the right to inspect (bidder’s/offeror’s) physical facilities prior to award to satisfy questions regarding the (bidder’s/offeror’s) capabilities. The Commonwealth further reserves the right to reject any (bid/proposal) if the evidence submitted by, or investigations of, such (bidder/offeror) fails to satisfy the Commonwealth that such (bidder/offeror) is properly qualified to carry out the obligations of the contract and to provide the services and/or furnish the goods contemplated therein.

M. TESTING AND INSPECTION: The Commonwealth may conduct tests or inspections to ensure goods and services meet specifications.

N. ASSIGNMENT OF CONTRACT: The contractor cannot assign the contract in whole or part without written consent of the Commonwealth.

O. CHANGES TO CONTRACT: Changes may be made as follows:

1. The parties may modify the contract in writing. Additional goods or services must be ancillary or within the same categories. Price adjustments from modifications must be agreed upon in writing.

1. The Purchasing Agency may order changes within the general scope of the contract at any time by written notice to the contractor. Changes within the scope of the contract include, but are not limited to, things such as services to be performed, the method of packing or shipment, and the place of delivery or installation. The contractor shall comply with the notice upon receipt, unless the contractor intends to claim an adjustment to compensation, schedule, or other contractual impact that would be caused by complying with such notice, in which case the contractor shall, in writing, promptly notify the Purchasing Agency of the adjustment to be sought, and before proceeding to comply with the notice, shall await the Purchasing Agency's written decision affirming, modifying, or revoking the prior written notice. If the Purchasing Agency decides to issue a notice that requires an adjustment to compensation, the contractor shall be compensated for any additional costs incurred as the result of such order and shall give the Purchasing Agency a credit for any savings. Said compensation shall be determined by one of the following methods:

a. By mutual agreement between the parties in writing; or

b. By agreeing upon a unit price or using a unit price set forth in the contract, if the work to be done can be expressed in units, and the contractor accounts for the number of units of work performed, subject to the Purchasing Agency’s right to audit the contractor’s records and/or to determine the correct number of units independently; or

c. By ordering the contractor to proceed with the work and keep a record of all costs incurred and savings realized. A markup for overhead and profit may be allowed if provided by the contract. July 2021 version

The same markup applies to price decreases from savings.

The contractor shall present the Purchasing Agency with all vouchers and records of expenses incurred and savings realized. The Purchasing Agency shall have the right to audit the records of the contractor as it deems necessary to determine costs or savings. Any claim for an adjustment in price under this provision must be asserted by written notice to the Purchasing Agency within thirty (30) days from the date of receipt of the written order from the Purchasing Agency. If the parties fail to agree on an amount of adjustment, the question of an increase or decrease in the contract price or time for performance shall be resolved in accordance with the procedures for resolving disputes provided by the Disputes Clause of this contract or, if there is none, in accordance with the disputes provisions of the Commonwealth of Virginia Vendors Manual. Neither the existence of a claim nor a dispute resolution process, litigation or any other provision of this contract shall excuse the contractor from promptly complying with the changes ordered by the Purchasing Agency or with the performance of the contract generally.

P. DEFAULT: In case of failure to deliver goods or services in accordance with the contract terms and conditions, the Commonwealth, after due oral or written notice, may procure them from other sources and hold the contractor responsible for any resulting additional purchase and administrative costs. This remedy shall be in addition to any other remedies which the Commonwealth may have.

Q. TAXES: Sales to Virginia are generally exempt from state sales tax; certificates (Form ST-12) are available upon request. Deliveries are usually free of federal excise and transportation taxes. Exemption number: 54-73-0076K.

If sales or deliveries against the contract are not exempt, the contractor shall be responsible for the payment of such taxes unless the tax law specifically imposes the tax upon the buying entity and prohibits the contractor from offering a tax-included price.

R. USE OF BRAND NAMES: Unless otherwise provided in this solicitation, the name of a certain brand, make or manufacturer does not restrict (bidders/offerors) to the specific brand, make or manufacturer named, but conveys the general style, type, character, and quality of the article desired. Any article which the public body, in its sole discretion, determines to be the equivalent of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended, shall be accepted. The (bidder/offeror) is responsible to clearly and specifically identify the product being offered and to provide sufficient descriptive literature, catalog cuts and technical detail to enable the Commonwealth to determine if the product offered meets the requirements of the solicitation. This is required even if offering the exact brand, make or manufacturer specified. Normally in competitive sealed bidding only the information furnished with the bid will be considered in the evaluation. Failure to furnish adequate data for evaluation purposes may result in declaring a bid nonresponsive. Unless the (bidder/offeror) clearly indicates in its (bid/proposal) that the product offered is an equivalent product, such (bid/proposal) will be considered to offer the brand name product referenced in the solicitation.

S. TRANSPORTATION AND PACKAGING: By submitting their (bids/proposals), all (bidders/offerors) certify and warrant that the price offered for FOB destination includes only the actual freight rate costs at the lowest and best rate and is based upon the actual weight of the goods to be shipped. Except as otherwise specified herein, standard commercial packaging, packing and shipping containers shall be used. All July 2021 version

Shipping containers must be labeled with purchase order number, description, and quantity.

T. INSURANCE: By signing and submitting a bid or proposal under this solicitation, the bidder or offeror certifies that if awarded the contract, it will have the following insurance coverage at the time the contract is awarded. For construction contracts, if any subcontractors are involved, the subcontractor will have workers’ compensation insurance in accordance with §§ 2.2-4332 and 65.2-800 et seq. of the Code of Virginia. The bidder or offeror further certifies that the contractor and any subcontractors will maintain these insurance coverages during the entire term of the contract and that all coverage will be provided by companies authorized to sell insurance in Virginia by the Virginia State Corporation Commission.

MINIMUM INSURANCE COVERAGES AND LIMITS:

1. Workers’ Compensation: Statutory requirements apply; coverage is mandatory for employers of three or more employees. Contractors must notify the Commonwealth of employee increases affecting workers’ compensation requirements; failure results in noncompliance.

1. Employer’s Liability - $100,000.

1. Commercial General Liability - $1,000,000 per occurrence, $2,000,000 in total, including bodily injury, property damage, personal injury, advertising injury, and products/completed operations. The Commonwealth shall be added as an additional insured.

1. Automobile Liability - $1,000,000 combined limit. Required if a non-Commonwealth-owned vehicle is used; the contractor must ensure coverage is maintained.

Profession/Service Limits Accounting $1,000,000 per occurrence, $3,000,000 aggregate Architecture $2,000,000 per occurrence, $6,000,000 aggregate Asbestos Design, Inspection or Abatement Contractors $1,000,000 per occurrence, $3,000,000 aggregate Health Care Practitioner (to include Dentists, Licensed Dental Hygienists, Optometrists, Registered or Licensed Practical Nurses, Pharmacists, Physicians, Podiatrists, Chiropractors, Physical Therapists, Physical Therapist Assistants, Clinical Psychologists, Clinical Social Workers, Professional Counselors, Hospitals, or Health Maintenance Organizations.) Code of Virginia § 8.01-581.15 https://law.lis.virginia.gov/vacode/title8.01/chapter21.1/section8.01-581.15/

Insurance/Risk Management $1,000,000 per occurrence, $3,000,000 aggregate Landscape/Architecture $1,000,000 per occurrence, $1,000,000 aggregate Legal $1,000,000 per occurrence, $5,000,000 aggregate Professional Engineer $2,000,000 per occurrence, $6,000,000 aggregate Surveying $1,000,000 per occurrence, $1,000,000 aggregate July 2021 version

U. ANNOUNCEMENT OF AWARD: The agency will publicly post contract award in eVA for at least 10 days.

V. DRUG-FREE WORKPLACE: Applicable for all contracts over $10,000: During the performance of this contract, the contractor agrees to (i) provide a drug-free workplace for the contractor's employees; (ii) post in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the contractor's workplace and specifying the actions that will be taken against employees for violations of such prohibition; (iii) state in all solicitations or advertisements for employees placed by or on behalf of the contractor that the contractor maintains a drug-free workplace; and (iv) include the provisions of the foregoing clauses in every subcontract or purchase order of over $10,000, so that the provisions will be binding upon each subcontractor or vendor.

For the purposes of this section, “drug-free workplace” means a site for the performance of work done in connection with a specific contract awarded to a contractor, the employees of whom are prohibited from engaging in the unlawful manufacture, sale, distribution, dispensation, possession or use of any controlled substance or marijuana during the performance of the contract.

W. NONDISCRIMINATION OF CONTRACTORS: A bidder, offeror, or contractor shall not be discriminated against in the solicitation or award of this contract because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, or disability, faith-based organizational status, any other basis prohibited by state law relating to discrimination in employment or because the bidder or offeror employs ex-offenders unless the state agency, department or institution has made a written determination that employing ex-offenders on the specific contract is not in its best interest. If the award of this contract is made to a faith-based organization and an individual, who applies for or receives goods, services, or disbursements provided pursuant to this contract objects to the religious character of the faith-based organization from which the individual receives or would receive the goods, services, or disbursements, the public body shall offer the individual, within a reasonable period of time after the date of his objection, access to equivalent goods, services, or disbursements from an alternative provider.

X. eVA BUSINESS-TO-GOVERNMENT VENDOR REGISTRATION, CONTRACTS, AND ORDERS: The eVA Internet electronic procurement solution, web site portal www.eVA.virginia.gov, streamlines and automates government purchasing activities in the Commonwealth. The eVA portal is the gateway for vendors to conduct business with state agencies and public bodies. All vendors desiring to provide goods and/or services to the Commonwealth shall participate in the eVA Internet e-procurement solution by completing the free eVA Vendor Registration. All bidders or offerors must register in eVA and pay the Vendor Transaction Fees specified below; failure to register will result in the bid/proposal being rejected.

Vendor transaction fees are determined by the date the original purchase order is issued and the current fees are as follows:

a. For orders issued July 1, 2014, and after, the Vendor Transaction Fee is:

(i) DSBSD-certified Small Businesses: 1%, capped at $500 per order. (ii) Businesses that are not DSBSD-certified Small Businesses: 1%, capped at $1,500 per order. July 2021 version

b. Refer to Special Term and Condition “eVA Orders and Contracts” to identify the number of purchase orders that will be issued as a result of this solicitation/contract with the eVA transaction fee specified above assessed for each order.

For orders issued prior to July 1, 2014, the vendor transaction fees can be found at www.eVA.virginia.gov.

The specified vendor transaction fee will be invoiced, by the Commonwealth of Virginia Department of General Services, typically within 60 days of the order issue date. Any adjustments (increases/decreases) will be handled through purchase order changes.

Y. AVAILABILITY OF FUNDS: It is understood and agreed between the parties herein that the agency shall be bound hereunder only to the extent that the legislature has appropriated funds that are legally available or may hereafter become legally available for the purpose of this agreement.

Z. SET-ASIDES. This solicitation is set-aside for award to DSBSD-certified micro or small business participation only when designated “Micro Business Set-Aside Award Priority” or “Small Business Set-Aside Award Priority” accordingly in the solicitation. DSBSD-certified micro or small businesses shall include DSBSD-certified women, minority and service disabled veteran owned businesses when they have also received the DSBSD small business certification. For purposes of award, bidders/offerors shall be deemed small business if and only if they are certified as such by DSBSD on the due date for receipt of bids/proposals

AA. BID PRICE CURRENCY. Unless stated otherwise in the solicitation, bidders/offerors shall state bid/offer prices in US dollars.

BB. AUTHORIZATION TO CONDUCT BUSINESS IN THE COMMONWEALTH: A contractor organized as a stock or nonstock corporation, limited liability company, business trust, or limited partnership or registered as a registered limited liability partnership shall be authorized to transact business in the Commonwealth as a domestic or foreign business entity if so required by Title 13.1 or Title 50 of the Code of Virginia or as otherwise required by law. Any business entity described above that enters into a contract with a public body pursuant to the Virginia Public Procurement Act shall not allow its existence to lapse or its certificate of authority or registration to transact business in the Commonwealth, if so required under Title 13.1 or Title 50, to be revoked or cancelled at any time during the term of the contract. A public body may void any contract with a business entity if the business entity fails to remain in compliance with the provisions of this section.

CC. CIVILITY IN STATE WORKPLACES: The contractor shall ensure that no Contract Worker engages in harassment (including sexual), bullying, cyber-bullying, threatening conduct, or discrimination based on race, sex, color, national origin, religion, sexual orientation, gender identity/expression, age, political affiliation, veteran status, or disability.

The contractor shall provide each Contract Worker with a copy of this Section and will require Contract Workers to participate in agency training on civility in the State workplace if contractor’s (and any subcontractor’s) regular mandatory training programs do not already encompass equivalent or greater July 2021 version

Upon request, the contractor shall provide documentation that each Contract Worker received such training.

“State workplace” includes any location, permanent or temporary, where a Commonwealth employee works or represents their agency, including perimeters, parking lots, outside meeting sites, and travel. Communications are in a State workplace if the Contract Worker reasonably knows the contact method is associated with a State employee or workplace.

The Commonwealth may require removal and replacement of any Contract Worker reasonably believed to have violated this Section.

This Section creates obligations solely on the part of the contractor. Employees or other third parties may benefit incidentally from this Section and from training materials or other communications distributed on this topic , but the Parties to this agreement intend this Section to be enforceable solely by the Commonwealth and not by employees or other third parties. July 2021 version

INDEX

VENDORS MANUAL and CODE OF VIRGINIA

CROSS REFERENCE

VENDORS CODE OF

MANUAL VIRGINIA A Absolute Preferences, defined ................................................... Appendix A.............................................

Acceptance period .....................................................................................6.2.............................................

Addendum .................................................................................................4.6.............................. 2.2-4316 Additional Bid/Proposal for the Same Procurement ...............................3.13.............................................

Administrative Exceptions .......................................................................1.3............................... 2.2-1111 Administrative Appeal Procedures, Exhaustion of ...................................9.8.............................................

Administrative support............................................................................9.14.............................................

Agency, defined ......................................................................... Appendix A.............................................

Agency Purchase Order (APO), defined .................................... Appendix A.............................................

Agency Purchasing Function ....................................................................1.4.............. 2.2-1110, 2.2-1111, ...................................................................................................................................................... 2.2-1120 Alterations to bids or proposals ..............................................................5.12.............................................

Alternate bids ............................................................................................5.7.............................................

Alternative Dispute Resolution ...............................................................9.17................................2.24366 Amending or withdrawing bids or proposals by vendors ....................... 5.11.............................. 2.2-4316 Appeal Board's Decision .........................................................................9.15.............................................

Appeal, Decision to Award .......................................................................9.6.............................. 2.2-4360 Appeal, defined .......................................................................... Appendix A.............. 2.2-4364; 2.2-4365 Appeal of a Denial of Bid Withdrawal .....................................................9.4............................. 2.2-4358 Appeal of Ineligibility or Disqualification Determination or Debarment 9.3.............................. 2.2-4357 Appeal of Nonresponsibility Determination .............................................9.5.............................. 2.2-4359 Appeals - General .....................................................................................9.0................... Article 3, VPPA Appendix A - Definitions ........................................................... Appendix A.............................................

Appendix B - Terms and Conditions & Instructions to Vendors.Appendix B ............................................

Application and Registration ....................................................................3.1.............................................

Application, Vendor ..................................................................................3.1.............................................

Architect or Engineer, Purchases of Building Supplies or Equipment from3.6a......................... 2.2-4374 Artwork and negatives, ownership .........................................................3.10.............................................

Assignment of contract ........................................................................... 7.11.............................................

Assistance, Payment .................................................................................8.5.............................................

Assistance to State Agencies .....................................................................3.4.............................................

Authority of DPS ......................................................................................1.1...................... 2.2-1109 et al.

Authority of the DGS/DPS .......................................................................1.1..................... 2.2-1109 et al.

Automated Data-Processing Equipment (ADPE), defined ........ Appendix A.............................................

Award ..........................................................................................................6............... 2.2-4303; 2.2-4360 Awards, multiple and split ........................................................................6.4.............................. 2.2-4301 July 2021 version

B Bid Bond, defined ............................................................................ Appendix A.............................. 2.2-4336 Bid, defined ...................................................................................... Appendix A.............................................

Bid evaluation and award................................................................................6.1.............................. 2.2-4301 Bidder, defined ................................................................................. Appendix A.............................................

Billings and Invoices.......................................................................................8.3....... 2.2-4347 thru 2.2-4354 Blanket Purchase Agreement (BPA), defined .................................. Appendix A.............................................

Board decision ..............................................................................................9.15.............................................

Boiler Plate, defined......................................................................... Appendix A.............................................

Bonds ............................................................................................................ 4.11....... 2.2-4337 thru 2.2-4339 Brand names..................................................................................................4.14.............................. 2.2-4315 Broker, defined ................................................................................. Appendix A.............................................

C Canceling or amending a solicitation ..............................................................4.6.............................. 2.2-4319 Cancellation of purchase orders and contracts ..............................................7.15.............................................

Changes in vendor registration .......................................................................3.2.............................................

Changes, purchase order ...............................................................................7.16........................... 2.2-4309A Charge Card, defined ....................................................................... Appendix A.............................................

Charge Cards for Small Purchases ..................................................................8.2.............................................

Charges and collections ....................................................................................8........ 2.2-4347 thru 2.2-4354 Claims ...........................................................................................................7.19................ 2.2-514; 2.2-4363 Combining responses to separate solicitations is prohibited ..........................4.7.............................................

Commodity Code, defined ............................................................... Appendix A.............................................

Communications, ........................................................................................1.3 b.............................................

Competitive bidding exceptions .....................................................................2.2.............................. 2.2-4346 Competitive Bidding, defined .......................................................... Appendix A.............................. 2.2-4303 Competitive Negotiation .................................................................................2.6.............. 2.2-4301; 2.2-4303 Competitive Negotiation, defined .................................................... Appendix A.............................. 2.2-4301 Competitive Sealed Bid, defined ..................................................... Appendix A.............................. 2.2-4301 Complaints ...................................................................................................7.13.............................................

Conditions and terms of a solicitation ............................................................5.4.............................. 2.2-4301 Confirming Purchase Order, defined ............................................... Appendix A.............................................

Conflict of interest ...................................................................................... 7.20f....... 2.2-3100 thru 2.2-3127 Consideration, defined ..................................................................... Appendix A...........................2.2-4300 B Construction, defined ....................................................................... Appendix A.............................. 2.2-4301 Construction Management Contract, defined .................................. Appendix A.............................................

Consulting Services, defined ........................................................... Appendix A.............................................

Contract Administration, defined ..................................................... Appendix A.............................................

Contract assignment ...................................................................................... 7.11.............................................

Contract, Cost-Plus-A-Fixed-Fee, defined ...................................... Appendix A.............................................

Contract, Cost-Plus-A-Percentage-Of-Cost, defined ....................... Appendix A.............................. 2.2-4331 Contract, defined .............................................................................. Appendix A.............................................

Contract, Fixed Price, defined ......................................................... Appendix A............................................. July 2021 version

Contract, Fixed Price with Escalation/De-escalation, defined ......... Appendix A.............................................

Contract modification restriction ..................................................................7.17...........................2.2-4309 C Contract Officer, Purchase Officer, Buyer, defined ......................... Appendix A.............................................

Contract renewal or extension ......................................................................7.12...........................2.2-4309 B Contract, Requirements Type, defined ............................................. Appendix A.............................................

Contract, Service, defined ................................................................ Appendix A.............................................

Contract, Time and Material, defined .............................................. Appendix A.............................................

Contractor, defined ..............................................................8.6b(2); Appendix A.............................................

Contractor Payment Assistance.......................................................................8.5.............................................

Contractor registration (license) ...................................................................4.15............ 54.1-1103 thru 1115 Cooperative Procurement..............................................................................1.10.............................. 2.2-4304 Copyright ........................................................................................................3.9.............................................

CORPRINT, defined ........................................................................ Appendix A.............................................

Correspondence concerning solicitations .....................................................5.10.............................. 2.2-4316 Cure Notice, defined ........................................................................ Appendix A.............................................

D Damage or loss in transit.................................................................................7.5.............................................

Debarment .....................................................................................................7.20.............................. 2.2-4321 Debarment, defined .......................................................................... Appendix A.............................................

Debarment notification and appeal ...............................................................7.23.............................................

Debarment period..........................................................................................7.22.............................................

Debtor ...................................................................................................... 8.6b(1).............................................

Default...........................................................................................................7.14.............................................

Default, defined................................................................................ Appendix A.............................................

Definitions........................................................................................ Appendix A.............................. 2.2-4301 Delegation of Authority ..................................................................................1.4.............................. 2.2-1120 Delivery...........................................................................................................7.7.............................................

Delivery time ..................................................................................................7.7.............................................

Denial of withdrawal of bid ...................................................................5.15, 9.4........................... 2.2-4330 F Design Specification, defined .......................................................... Appendix A.............................................

Design-build Contract, defined ........................................................ Appendix A.............................................

Disadvantaged Business................................................................... Appendix A.............................................

Discounts.........................................................................................................5.5.............................................

Discrimination prohibited ...............................................................................2.1.......... 2.2-4310 A; 2.2-4311 Disputes (Claims)..........................................................................................7.19................ 2.2-514; 2.2-4363 Distributor ........................................................................................ Appendix A.............................................

Division of Purchases and Supply (DGS/DPS) defined .................. Appendix A...................... 2.2-1109 et al.

Drug-Free Workplace, defined ......................................................... Appendix A.............................. 2.2-4312 E Effect of Appeal on Procurement Proceedings ...............................................9.9.............................. 2.2-4361 Emergency, defined .......................................................................... Appendix A.............................................

Emergency procurements ................................................................................2.8........................... 2.2-4303 F Employment Services Organizations, defined ................................. Appendix A............................................. July 2021 version

Errors in bid ..................................................................................................5.13.............................................

Ethics...............................................................................................................3.5....... 2.2-4365 thru 2.2-4377 Ethics, defined.................................................................................. Appendix A............................................. eVA…………………. ........................................................………….…….. 3.1.............................................

Evaluation of bids or proposals.......................................................................6.1.............................. 2.2-4301 Evaluation of Bids, defined .............................................................. Appendix A.............................................

E-Verify Program…………………………. 2.11, 3.16, 7.20, 7.22, Appendix A………2.2-4317, 2.2-4308.2 Exceptions from competitive requirements ....................................................2.2..................... 2.2-4303 E&G Exhaustion of administrative procedures ........................................................9.8.............................................

F Facsimile bids or proposals .............................................................................4.9.............................................

Failure to deliver .............................................................................................7.7.............................................

Forms, solicitation...........................................................................................5.1.............................................

Freedom of Information Act (FOIA) .............................................................1.9................... 2.2-3700 et seq.

Freight .............................................................................................................7.6.............................................

G General, Authority and Responsibility ............................................................1.0................. 2.2-1109 et al. & ......................................................................................................................................... Title 2.2, Chapter 43 General Terms and Conditions, ....................................................... Appendix B.............................................

Defined ........................................................................................ Appendix A.............................................

Gifts.................................................................................................................3.5.......... 2.2-4371; 2.2-4371 B Goods, defined ................................................................................. Appendix A.............................. 2.2-4301 Goods, new/used/altered .................................................................................... 7.2 ..............................................

H Hearing procedures .......................................................................................9.12.............................. 2.2-4365 I Ineligibility or disqualification determination or debarment, Appeal .............9.3.............................. 2.2-4357 Ineligibility or disqualification of manufacturer ...........................................7.21.............................. 2.2-4357 Informalities ........................................................................................... 5.13c(1).......... 2.2-4301; 2.2-4319 B Informality, defined .......................................................................... Appendix A.............................. 2.2-4301 Inspection ......................................................................................................7.10.............................................

Inspection, defined ........................................................................... Appendix A.............................................

Insurance .................................................................................... 4.12, 2.2-4345 A, 2.2-4332; IFB, defined ........................................ Appendix A

Invoices ...........................................................................................................8.3.............................................

J July 2021 version

Judgment errors ...................................................................................... 5.13c(2).............................................

Judicial review ..............................................................................................9.16.............................. 2.2-4364 Judicial review of Appeals Board's decision .................................................9.15.............................. 2.2-4364

L Late Bid or Proposal, defined .......................................................... Appendix A.............................................

Late bids or proposals ...................................................................................4.10.............................................

Late payment charges ................................................................................... 8.6e....... 2.2-4347 thru 2.2-4354 Latent Defect, defined ...................................................................... Appendix A.............................................

Less toxic goods or products......................................................................... 1.8c.............................. 2.2-4314 License, Contractor registration ...................................................................4.15............ 54.1-1103 thru 1115 Liquidated Damages, defined .......................................................... Appendix A.............................................

Local governments, purchases for ..................................................................1.5.............................. 2.2-1122 Loss or damage of goods in transit .................................................................7.5.............................................

Low bidder, negotiations with ........................................................................6.7.............................. 2.2-4318 M Methods of Procurement ................................................... 2.3 - 2.9, Appendix A.............................. 2.2-4303 Micro Business................................................................................. Appendix A Minority-owned Business ................................................................ Appendix A.............................................

Minority Individual .......................................................................... Appendix A.............................................

Mistakes in bids ............................................................................................5.13.............................. 2.2-4330 Modification of contracts or purchase orders, and dollar limits ......... 7.16; 7.17...........................2.2-4309 A Multiple Award, defined .................................................................. Appendix A.............................. 2.2-4301 Multiple awards and split awards ...................................................................6.4.............................. 2.2-4301 N Negotiation, competitive .................................................................................2.6.............. 2.2-4301; 2.2-4303 Negotiation, defined ......................................................................... Appendix A.............................. 2.2-4301 Negotiations with the lowest responsible bidder ............................................6.7.............................. 2.2-4318 New, used, or altered goods ............................................................................7.2.............................................

Noncompetitive Negotiation, defined ……………………………..Appendix A………………… Nondiscrimination...........................................................................................2.1.......... 2.2-4310 A; 2.2-4311 Nonprofessional Services, defined................................................... Appendix A.............................. 2.2-4301 Nonprofit vendors, purchases from.................................................................1.7.... 2.2-1118; 2.2-4344 A1(a) Nonresponsibility determination .....................................................................9.5.............................. 2.2-4359 Notice of Award, defined ................................................................. Appendix A.............................................

Notice of Intent to Award, and Notice of Award .............................................6.3.............. 2.2-4303; 2.2-4360 Notice of Intent to Award, defined ................................................... Appendix A.............................................

Notice of Pending Procurements ..................................................................4.16............................................. July 2021 version O Offeror, defined ................................................................................ Appendix A.............................................

Official Responsibility ..................................................................... Appendix A.............................................

Open records .................................................................................................1.10.............................. 2.2-4342 Overruns and underruns, printing .................................................................7.8b.............................................

Overshipments/Overruns ................................................................................7.9.............................................

Ownership of printing artwork, negatives, etc. .............................................3.10.............................................

P Packaging ........................................................................................................7.3.............................................

Partial payments ..............................................................................................8.4.............................................

Payment Assistance .........................................................................................8.5.............................................

Payment Bond, For Labor and Material, defined ............................ Appendix A.............. 2.2-4337; 2.2-4341 Payment by Electronic Funds Transfer ...........................................................8.8.............................................

Payment Date ........................................................................................... 8.6b(3).............................................

Payment Requirements: All Contracts ...........................................................8.7.............................................

Pending Procurement Notices .......................................................................4.16.............................................

Performance Bond, defined ............................................................. Appendix A.............................................

Performance Specification, defined ................................................. Appendix A.............................................

Personal Interest and Gifts ..............................................................................3.5.......... 2.2-4371; 2.2-4371 B Policy, procurement ........................................................................................2.1.............................................

Postage ............................................................................................................4.8.............................................

Potential Bidder or Offeror, defined ................................................ Appendix A.............................. 2.2-4301 Prebid or Preproposal Conference, defined ..................................... Appendix A.............................................

Prebid or preproposal conference ...................................................................4.3.............................................

Preferences - Virginia vendors - recycled paper .............................................1.8.............................. 2.2-4324 Prequalification .............................................................................................2.10.............................. 2.2-4317 Prequalification, defined .................................................................. Appendix A.............................................

Prequalification, Qualified Contractors List (QCL), defined .......... Appendix A.............................................

Prequalification, Qualified Products List (QPL), defined ............... Appendix A.............................................

Pricing and discounts ......................................................................................5.5.............................................

Printing overruns and underruns ...................................................................7.8b.............................................

Procurement, defined ....................................................................... Appendix A.............................................

Procurement Policy .........................................................................................2.1.............................................

Product demonstrations ...................................................................................5.6.............................................

Professional Services, defined ......................................................... Appendix A.......... 2.2-4301; 2.2-4303 B Prohibited Contracts......................................................................................3.12.............................................

Prohibited purchases .......................................................................................3.6.............................. 2.2-4374 Prompt payment of bills ..................................................................................8.6...........................2.2-4350 A Proposal, defined.............................................................................. Appendix A.............................................

Proposal evaluation and award .....................................................................6.1b.............................. 2.2-4301 Proprietary Specification, defined ................................................... Appendix A.............................................

Protest, defined ................................................................................ Appendix A.............................................

Protest of award or decision to award .............................................................9.6.............................. 2.2-4360 Protest of ineligibility or disqualification ............................................. 7.21; 9.3.............................. 2.2-4357 July 2021 version

Public Auction Sale ................................................................................2.10.......................... 2.2-4303.H Public Bid Opening, defined ............................................................ Appendix A.............................. 2.2-4301 Public Telecommunications Services, defined................................. Appendix A.............................................

Purchase order, authority and shipment ..........................................................7.1.............................................

Purchase order cancellation ..........................................................................7.15.............................................

Purchase order changes .................................................................................7.16.............................. 2.2-4309 Purchase Order, defined ................................................................... Appendix A.............................................

Purchases for local governments ....................................................................1.5............................. 2.2-1122; ......................................................................................................................................... 2.2-4343 A .10 & .12 Purchases from state agencies or nonprofit vendors .......................................1.7.......... 2.2-1118; 2.2-4344 A Purchases from state contracts (mandatory source) ........................................1.6.............................................

Purchasing Agency, defined ............................................................. Appendix A.............................................

Q Questions Concerning Solicitations .................................................... 4.13; 5.10.............................................

R Receipt by state agency ...................................................................................7.8.............................................

Receipt of sealed bids or proposals .................................................................4.4.............................................

Receipt of shipments .......................................................................................7.8.............................................

Receipt of unsealed or informal bids ..............................................................4.5.............................................

Record review, agency records by bidders/offerors/general public ................1.9.............................. 2.2-4342 Recycled paper and paper products ..............................................................1.8b.............................. 2.2-4326 Registration of vendors ...................................................................................3.1.............................................

Regular Dealer, defined ................................................................... Appendix A.............................................

Rejection of bids or proposals............................................................... 4.4; 4.10.............................................

Request for Proposals (RFP), defined .............................................. Appendix A.............................. 2.2-4301 Required General Terms and Conditions ......................................... Appendix B.............................................

Response time .................................................................................................4.2.............................................

Responsible bidder or offeror .........................................................................3.7.............................. 2.2-4301 Responsible Bidder or Offeror, defined ........................................... Appendix A.............................................

Responsive Bidder .................................................................... 3.8; Appendix A.............................. 2.2-4301 Reverse Auction .....................................................................................2.11.................. …… 2.2-4303.I

S Sales effort by vendor .....................................................................................3.4...........................2.2-4300 C Samples ...........................................................................................................5.6.............................................

Sealed Bid, defined .......................................................................... Appendix A.............................................

Sealed or formal bids ......................................................................................2.4.............................................

Selection of bidders.........................................................................................4.1.............................................

Separate agency records ..................................................................................8.1.............................................

Services, defined .............................................................................. Appendix A.............................. 2.2-4301 Set-asides…………………………………………..…………2.1d;Appendix A ………………………. July 2021 version

Signature on bid or proposal ...........................................................................5.3.............................................

Small Business ........................................................................ 2.1 d;Appendix A.............................................

Small Business Subcontracting Plan ....................................... 2.1 c;Appendix A.............................................

Small purchase procedures .............................................................................2.3.......................... 2.2-4303 G Software, defined ............................................................................. Appendix A.............................................

Sole source procurement .................................................................................2.9........................... 2.2-4303 E Sole Source, defined ........................................................................ Appendix A.............................................

Solicitation, defined ......................................................................... Appendix A.............................................

Solicitation forms ............................................................................................5.1.............................................

Solicitation, questions on content ....................................................... 4.13; 5.10.............................. 2.2-4316 Solicitation Response Time.............................................................................4.2.............................................

Solicitation Terms and Conditions ..................................................................5.4.............................................

Solicitations, canceling or amending ..............................................................4.6.............................. 2.2-4319 Solicitations, combining responses prohibited ...............................................4.7.............................................

Special Terms and Conditions, defined ............................................ Appendix A.............................................

Specifications, questions, and comments ............................................ 4.13; 5.10.............................. 2.2-4316 Spot Purchase, defined ..................................................................... Appendix A.............................................

Standards of Conduct .................................................................................................. 2.2-4367 thru 2.2-4377 State Agency ............................................................................................ 8.6b(4).............................................

State Corporation Commission Identification Number, Authorization to Transact Business .......................................................3.15........................... 2.2-4311.2 Statutory exemptions ......................................................................................1.2............................... 2.2-1111 Subcontractor ........................................................................................... 8.6b(5).............................................

Subsequent/Additional Bid/Proposal for the Same Procurement .................3.13.............................................

Substitutions ....................................................................................................7.4.............................................

Surplus Property, defined ................................................................. Appendix A.............................. 2.2-1124 Suspension ....................................................................................................7.24.............................................

T Taxes ...............................................................................................................5.8.............................................

Technical Proposal, defined ............................................................. Appendix A.............................................

Technical Specifications, defined .................................................... Appendix A.............................................

Telecommunications Equipment, defined ........................................ Appendix A.............................................

Telecommunications Services, defined ............................................ Appendix A.............................................

Term Contracting, defined ............................................................... Appendix A.............................................

Termination for Convenience of the Commonwealth ...................................7.18.............................................

Termination for default .................................................................................7.14.............................................

Termination for Convenience, defined ............................................ Appendix A.............................................

Termination for Default, defined ..................................................... Appendix A.............................................

Terms and Conditions .....................................................................................5.4.............................................

Terms and Conditions & Instructions to Vendors ............................ Appendix B.............................................

Tie bids ............................................................................................................6.5...........................2.2-4324 A Time and place of hearings ...........................................................................9.10.............................................

Time of delivery ..............................................................................................7.7.............................................

Time of performance .......................................................................................5.9............................................. July 2021 version

Total Value ....................................................................................... Appendix A.............................................

Two-step sealed bidding .................................................................................2.5.............................................

U Unsealed Bid, defined ...................................................................... Appendix A.............................................

Unsealed or Informal Bids or Proposals, Receipt of ......................................4.5.......................... 2.2-4303 G Used Equipment, defined ................................................................. Appendix A.............................................

Used goods ......................................................................................................7.2.............................................

V Vendor appeals ................................................................................................9.0................... Article 3, VPPA Vendor application & registration, printing ....................................................3.1.............................................

Vendor application & registration, general .....................................................3.1.............................................

Vendor assistance to state agencies .................................................................3.4...........................2.2-4300 C Vendor, defined ................................................................................ Appendix A.............................................

Vendor disqualification ....................................................................... 7.20; 7.23.............. 2.2-4317; 2.2-4357 Vendor name and address................................................................................5.2.............................................

Vendor not registered ......................................................................................3.1.............................................

Vendor payment assistance .............................................................................8.5.............................................

Vendor product demonstrations ......................................................................5.6.............................................

Vendor visits....................................................................................................3.3...........................2.2-4300 C Virginia Public Procurement Act (VPPA) ...................................... . Appendix A.............................................

Virginia Business Opportunities (VBO) .......................................................4.16.............................................

W Withdrawal of bid .........................................................................................5.14.............................. 2.2-4330 Withdrawal of bid denial ...............................................................................5.15.............................. 2.2-4358 Withdrawal of bid due to error in bids for construction ............................. 5.13e.............................. 2.2-4330 Women-owned Business .................................................................. Appendix A.............................................