Virginia Adopts New Procurement Preferences for Goods and Resident Bidders

Amendments to the Virginia Public Procurement Act relating to goods and resident bidders will take effect later this summer. Specifically, beginning July 1, 2024, there will be new preferences dealing with tie bids and in cases of procurement of goods by manufacturers.

In the case of a tie bid for goods, preference shall first be given to goods produced in Virginia and preference shall then be given to goods produced in the United States. If the goods in question are neither produced in Virginia or the United States, the tie shall be decided by lot.

In the case of procurement of goods by manufacturers, if the lowest bidder is not a resident of Virginia and the bid of any Virginia resident is within 10% of such bid, the Virginia bidder shall be granted the option to match the price of the lowest bidder. Additionally, if the lowest bidder is a non-Virginia resident and the low bidder’s state allows a resident a percentage preference or price-matching preference, a like preference shall be granted to bidders who are Virginia residents.

Finally, these new preferences shall not apply to any project or procurement if they would render a public body ineligible to receive federal funds.

While the enabling legislation for these amendments enjoyed broad support in the General Assembly, legislators did attach two key enactment clauses to these bills. First, the preferences laid out in these bills have been given an expiration date of July 1, 2027. Second, the Department of General Services (DGS) is required to study the bill and its impact on procurement in the legislative offseason. DGS is required to report back to the governor and General Assembly by January 8, 2025, with their findings, providing enough time for the General Assembly to act to amend or reverse these preferences if necessary.

To view the full text of this legislation, please visit the following links: HB 1361 (Feggans) and SB 260 (DeSteph).