CODE OF VIRGINIA

CONTRACT PRICING ARRANGEMENTS (§ 2.2-4331)

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

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

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

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

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

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