CONTRACT FORMATION AND METHODS OF SOURCE SELECTION

Richmond, Va., City Code ch. 21, art. II

in effect

Richmond, Va., City Code § 21-37 Small purchases.

Sec. 21-37. - Small purchases. Any contract not exceeding the amount specified in Code of Virginia, § 2.2-4303(G) as the ceiling for the use of small purchase procedures may be made in accordance with small purchase procedures established by the Director; provided, however, that contract requirements shall not be artificially divided so as to constitute a small purchase under this section. Insofar as it is practical, no less than three businesses shall be solicited to submit quotations, at least one of which shall be a local minority business enterprise or emerging small business. The efforts to solicit a local minority business enterprise or emerging small business shall be recorded and maintained as a public record. Award shall be made to the business offering the lowest acceptable quotation. The names of the businesses submitting a quotation and the dates and amounts of each quotation shall be recorded and maintained as a public record. (Code 1993, § 22.1-66; Code 2004, § 74-41; Code 2015, § 21-37; Code 2020, § 21-37)

Richmond, Va., City Code § 21-38 Only practical source procurement.

Sec. 21-38. - Only practical source procurement. Should the Director determine in writing, after conducting a good faith review of available sources, that there is only one source practicably available for that which is to be procured, the Director may award a contract to that source without competitive sealed bidding or competitive negotiation and may conduct negotiations, as appropriate, as to price, delivery and terms. However, the Director shall not make such a determination until the Director has contacted the Office of Minority Business Development and learned whether minority business enterprises or emerging small businesses exist that would be qualified, willing and able to provide that which is to be procured. The writing shall document the basis for this determination. The Director shall maintain a record of only practical source procurements that lists the following for each procurement: (1) A description of that which is being procured; (2) The contractor selected; (3) The date on which the contract was or will be awarded; (4) The amount and type of the contract; and (5) The identification number of the contract file. (Code 1993, § 22.1-64; Code 2004, § 74-42; Code 2015, § 21-38; Code 2020, § 21-38; Ord. No. 2006-134-105, § 1, 5-8-2006)

Richmond, Va., City Code § 21-39 Emergency purchases.

Sec. 21-39. - Emergency purchases. (a) In an emergency, the Director may authorize or order the expenditure of funds for emergency purchases of supplies, materials, equipment and contractual services for the using agencies without competitive sealed bidding or competitive negotiation; however, such procurement shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency shall be included in the contract file. (b) An emergency shall be deemed to exist when the Director determines that: (1) A breakdown or failure of machinery or other equipment has occurred; (2) A curtailment, diminution or termination of an essential service is threatened; or (3) A dangerous condition has developed and that a procurement without recourse to competitive sealed bidding or competitive negotiation is: a. Needed to prevent loss of life or property; b. Essential to protect and preserve the interests of the City and its inhabitants; c. Needed to maintain the proper functioning of the City government; or d. Needed to maintain the efficient rendering of public services. (c) Whenever, because of scarcity, the Department of Public Utilities is curtailed in excess of 15 percent of the quantity of natural gas which it is otherwise entitled to receive from its supplier pursuant to the terms of a contract approved by the City Council, the Director of Public Utilities is authorized, during the period of curtailment, to make purchases permitted by regulations of the Federal Energy Regulatory Commission or other governmental authorities having jurisdiction of such additional and emergency supplies of natural gas as may be available, without recourse to competitive bidding. The Director of Public Utilities shall advise the Chief Administrative Officer and the Director of Procurement Services of the fact of such purchase. (Code 1993, § 22.1-65; Code 2004, § 74-43; Code 2015, § 21-39; Code 2020, § 21-39; Ord. No. 2004-360-330, § 1, 12-13-2004)

Richmond, Va., City Code § 21-40 Joint and cooperative procurement.

Sec. 21-40. - Joint and cooperative procurement. (a) Joint procurement agreements. The City may participate in, sponsor, conduct or administer a joint procurement agreement in conjunction with one or more other public bodies, or public agencies or institutions or localities of the several states, of the United States or its territories, the District of Columbia or the United States General Services Administration, for the purpose of combining requirements to increase efficiency or reduce administrative expenses in any acquisition of goods, services, or construction. (b) Purchases by City. (1) Except for contracts for architectural or engineering services or construction, the City may purchase from the contract of another public body, from the contract of the Metropolitan Washington Council of Governments, or from the Virginia Sheriffs' Association even if it did not participate in the request for proposals or invitation for bids, if the request for proposals or invitation for bids specified that the procurement was being conducted on behalf of other public bodies. For purposes of this subsection (b)(1), the term "construction" shall not include the installation of artificial turf and track surfaces, stream restoration, stormwater management practices, or the installation of playground equipment, including all associated and necessary construction and maintenance. (2) The City may purchase from any authority, department, agency or institution of the Commonwealth's contract even if the City did not participate in the request for proposals or invitation for bids, if the request for proposals or invitation for bids specified that the procurement was a cooperative procurement being conducted on behalf of other public bodies. (3) As authorized by the United States Congress and consistent with applicable Federal regulations, and provided the terms of the contract permit such purchases, the City may purchase goods and nonprofessional services from a United States General Services Administration contract or a contract awarded by any other agency of the United States government, upon approval of the Director. (c) Policies and procedures to be followed. If the City is the party conducting the procurement, the procurement shall comply with the policies and procedures set forth within this chapter and the rules and regulations promulgated to implement this chapter. If the City is not the party conducting the procurement, then the procurement shall comply with the policies and procedures of the public body conducting the procurement. Prior to any City purchase under a contract entered by another public body, the Director shall find that the process pursuant to which the contract was entered generally complied with the policies and procedures established by this chapter and the rules and regulations promulgated to implement this chapter. (d) Purchases by other public bodies. A public body may purchase from the City's contract even if it did not participate in the request for proposals or invitation for bids, if the request for proposals or invitation for bids specified that the procurement was being conducted on behalf of other public bodies. (e) Utility marking services. The City, which is also a utility operator, may purchase services through or participate in contracts awarded by one or more utility operators which are not public bodies for utility marking services, as required by the Underground Utility Damage Prevention Act, Code of Virginia, § 56-265.14 et seq. A purchase of services under this subsection may deviate from the procurement procedures set forth in this chapter, upon a determination made in advance by the Director and set forth in writing that competitive sealed bidding is either not practicable or not fiscally advantageous to the public and the contract is awarded based on competitive principles. (Code 1993, § 22.1-26; Code 2004, § 74-44; Code 2015, § 21-40; Code 2020, § 21-40; Ord. No. 2010-234-220, § 1, 12-13-2010; Ord. No. 2021-033, § 1, 3-8-2021; Ord. No. 2022-031, § 1, 2-28-2022; Ord. No. 2023-186, § 1, 6-26-2023)

Richmond, Va., City Code § 21-41 Conditions for use of competitive sealed bidding.

Sec. 21-41. - Conditions for use of competitive sealed bidding. All public contracts with nongovernmental contractors for the purchase or lease of goods or for the purchase of services, insurance or construction shall be awarded after competitive sealed bidding or competitive negotiation as provided in this chapter, unless otherwise authorized by law. (Code 1993, § 22.1-36; Code 2004, § 74-45; Code 2015, § 21-41; Code 2020, § 21-41)

Richmond, Va., City Code § 21-42 Competitive sealed bidding or competitive negotiations of State-aid projects.

Sec. 21-42. - Competitive sealed bidding or competitive negotiations of State-aid projects. No contract for the construction of any building or for an addition to or improvement of an existing building for which State funds of not more than $50,000.00 in the aggregate or for the sum of all phases of a contract or project, either by appropriation, grant-in-aid or loan, are used or are to be used for all or part of the cost of construction shall be let except after competitive sealed bidding or after competitive negotiation as provided under Section 21-44 or 21-67(a)(3). The procedure for the advertising for bids or for proposals and for letting of the contract shall conform, mutatis mutandis, to this chapter. (Code 1993, § 22.1-37; Code 2004, § 74-46; Code 2015, § 21-42; Code 2020, § 21-42; Ord. No. 2016-197, § 1, 9-12-2016; Ord. No. 2017-099, § 1, 6-12-2017)

Richmond, Va., City Code § 21-43 Permitted contracts with certain religious organizations; purpose; limitations.

Sec. 21-43. - Permitted contracts with certain religious organizations; purpose; limitations. (a) The General Assembly has indicated its intent, in accordance with the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, PL 104-193, to authorize the City to enter into contracts with faith-based organizations for the purposes described in this section on the same basis as any other nongovernmental source without impairing the religious character of such organization and without diminishing the religious freedom of the beneficiaries of assistance provided under this section. (b) For the purposes of this section, the term "faith-based organization" means a religious organization that is or applies to be a contractor to provide goods or services for programs funded by the block grant provided pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, PL 104-193. (c) The City, in procuring goods or services or in making disbursements pursuant to this section, shall not: (1) Discriminate against a faith-based organization on the basis of the organization's religious character; or (2) Impose conditions that: a. Restrict the religious character of the faith-based organization, except as provided in Subsection (f) of this section; or b. Impair, diminish, or discourage the exercise of religious freedom by the recipients of such goods, services, or disbursements. (d) The City shall ensure that all invitations for bids, requests for proposals, contracts, and purchase orders prominently display a nondiscrimination statement indicating that the City does not discriminate against faith-based organizations. (e) A faith-based organization contracting with the City: (1) Shall not discriminate against any recipient of goods, services, or disbursements made pursuant to a contract authorized by this section on the basis of the recipient's religion, religious belief, or refusal to participate in a religious practice or on the basis of race, age, color, gender, sexual orientation, gender identity, or national origin; and (2) Shall be subject to the same rules as other organizations that contract with the City 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 City. Nothing in Subsection (e)(2) of this section shall be construed to supersede or otherwise override any other applicable State law. (f) Consistent with the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, PL 104-193, funds provided for expenditure pursuant to contracts with the City shall not be spent for religious worship, instruction, or proselytizing; however, this prohibition shall not apply to expenditures pursuant to contracts, if any, for the services of chaplains. (g) Nothing in this section shall be construed as barring or prohibiting a faith-based organization from any opportunity to make a bid or proposal or contract on the grounds that the faith-based organization has exercised the right, as expressed in 42 USC 2000e-1 et seq., to employ persons of a particular religion. (h) If an individual, who applies for or receives goods, services, or disbursements provided pursuant to a contract between the City and a faith-based organization, objects to the religious character of the faith-based organization from which the individual receives or would receive the goods, services, or disbursements, the City shall offer the individual, within a reasonable period of time after the date of the individual's objection, access to equivalent goods, services, or disbursements from an alternative provider. The City shall provide to each individual who applies for or receives goods, services, or disbursements provided pursuant to a contract between the City and a faith-based organization a notice in boldface type that states: "Neither the City's selection of a charitable or faith-based provider of services nor the expenditure of funds under this contract is an endorsement of the provider's charitable or religious character, practices, or expression. No provider of services may discriminate against you on the basis of religion, a religious belief, or your refusal to actively participate in a religious practice. If you object to a particular provider because of its religious character, you may request assignment to a different provider. If you believe that your rights have been violated, please discuss the complaint with your provider or notify the appropriate person as indicated in this form." (Code 1993, § 22.1-72; Code 2004, § 74-47; Code 2015, § 21-43; Code 2020, § 21-43)

Richmond, Va., City Code § 21-44 Design-build and construction management contracts.

Sec. 21-44. - Design-build and construction management contracts. The City may enter into a contract for construction on a fixed-price or not-to-exceed price construction management or design-build basis, provided that the City Council, by resolution, has adopted procedures for utilizing construction management or design-build contracts that meet the requirements of Code of Virginia, Title 2.2, Ch. 43.1, Art. 4 (Code of Virginia, § 2.2-4382 et seq.), the City Council, by resolution, has provided approval for the City to utilize a construction management or design-build contract for the project prior to the City's issuance of a Request for Qualifications for the project, and the City complies with the requirements of Code of Virginia, Title 2.2, Ch. 43.1, Art. 4 (Code of Virginia, § 2.2-4382 et seq.) and such procedures adopted by the City Council. (Code 2004, § 74-48; Code 2015, § 21-44; Code 2020, § 21-44; Ord. No. 2011-46-44, § 2, 3-28-2011; Ord. No. 2016-197, § 1, 9-12-2016; Ord. No. 2017-099, § 1, 6-12-2017; Ord. No. 2024-166, § 1, 6-24-2024)

Richmond, Va., City Code § 21-45 Prequalification of nonconstruction bidders and offerors.

Sec. 21-45. - Prequalification of nonconstruction bidders and offerors. (a) The Director is authorized to prequalify bidders or offerors prior to a solicitation of bids or proposals, whether for goods, services, or insurance, by requiring prospective bidders or offerors to submit such information as the Director shall deem appropriate, including, but not limited to, samples, financial reports, and references. The opportunity to prequalify shall be given to any prospective bidder or offeror who has not been suspended or debarred under this chapter. (b) The Director may refuse to prequalify any prospective bidder or offeror, provided that the bidder or offeror is notified in writing. Such notice shall state the reasons for the action taken. A prospective bidder or offeror who fails to prequalify for a procurement may not bid on the procurement. However, such prospective bidder or offeror may appeal the disqualification as provided in Section 21-161. (c) In considering any request for prequalification, the Director shall determine whether there is reason to believe that the bidder or offeror possesses the management, financial soundness, and history of performance which indicate apparent ability to successfully complete the plans and specifications of the invitations for bids or request for proposals, and the bidder's or offeror's past and proposed future good faith minority business enterprise and emerging small business participation efforts. In the absence of different weights or criteria established by the Office of Minority Business Development, a prospective bidder's good faith minority business enterprise and emerging small business participation efforts shall comprise 30 percent of the total prequalification score. The Office of Minority Business Development shall develop forms and criteria for and shall assess a bidder's prequalification with respect to past and proposed minority business enterprise and emerging small business participation efforts. No prospective bidder receiving less than 50 percent of the possible minority business enterprise and emerging small business participation efforts percentage points shall be prequalified unless granted a waiver by the Chief Administrative Officer. The Chief Administrative Officer may allow a waiver only when: (1) No other qualified, willing, and able prospective bidders have applied for prequalification; and (2) The Director of the Office of Minority Business Development certifies that the prospective bidder is unable due to circumstances beyond its control to make good faith minority business enterprise and emerging small business participation efforts that would achieve a higher number of percentage points. The proposed efforts must be set forth in detail in writing and must be legally binding on the prospective bidder. (d) Prequalification of a bidder or offeror shall not constitute a conclusive determination that the bidder or offeror is responsible, and such bidder or offeror may be rejected as nonresponsible on the basis of subsequently discovered information. (e) Failure of a bidder or offeror to prequalify with respect to a given procurement shall not bar the bidder or offeror from seeking prequalification as to future procurements or from bidding or offering proposals on procurements which do not require prequalification. (Code 1993, § 22.1-41; Code 2004, § 74-49; Code 2015, § 21-45; Code 2020, § 21-45; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2006-134-105, § 1, 5-8-2006)

Richmond, Va., City Code § 21-46 Prequalification of construction bidders.

Sec. 21-46. - Prequalification of construction bidders. (a) Any prequalification of prospective contractors for construction shall be pursuant to a prequalification process consistent with this section. The opportunity to prequalify shall be given to any prospective bidder who has not been suspended or debarred under this chapter. (b) Good faith minority business enterprise and emerging small business participation efforts previously made and those efforts proposed to be made by the prospective bidder shall be information required to prequalify. In the absence of different weights or criteria established by the Office of Minority Business Development, a prospective bidder's good faith minority business enterprise and emerging small business participation efforts shall comprise 30 percent of the total prequalification score. The Office of Minority Business Development shall develop forms and criteria for and shall assess a bidder's prequalification with respect to past and proposed minority business enterprise and emerging small business participation efforts. No prospective bidder receiving less than 50 percent of the possible minority business enterprise and emerging small business participation efforts percentage points shall be prequalified unless granted a waiver by the Chief Administrative Officer. The Chief Administrative Officer may allow a waiver only when: (1) No other qualified, willing, and able prospective bidders have applied for prequalification; and (2) The Director of the Office of Minority Business Development certifies that the prospective bidder is unable due to circumstances beyond its control to make good faith minority business enterprise and emerging small business participation efforts that would achieve a higher number of percentage points. The proposed efforts must be set forth in detail in writing and must be legally binding on the prospective bidder. (c) The Office of Minority Business Development shall maintain and update a list of bona fide minority business enterprises and emerging small businesses that are engaged in various fields of construction subcontracting and shall make this list available to all prospective prime construction contractors who desire to use it for assistance in attaining the highest possible ranking for good faith minority business enterprise and emerging small business participation efforts. (d) The application form used in the prequalification process shall set forth the criteria upon which the qualifications of prospective contractors will be evaluated. The application form shall request of prospective contractors only such information as is appropriate for an objective evaluation of all prospective contractors pursuant to such criteria. Such form shall allow the prospective contractor seeking prequalification to request, by checking the appropriate box, that all information voluntarily submitted by the contractor pursuant to this subsection shall be considered a trade secret or proprietary information subject to Section 21-5(f). (e) Advance notice shall be given of the deadline for the submission of prequalification applications. The deadline for submission shall be sufficiently in advance of the date set for the submission of bids as to allow the procedures set forth in this subsection to be accomplished. (f) At least 30 calendar days prior to the date established for submission of bids or proposals under the procurement of the contract for which the prequalification applies, the City shall advise in writing each contractor which submitted an application whether that contractor has been prequalified. If a contractor is denied prequalification, the written notification to such contractor shall state the reasons for such denial of prequalification and the factual basis of such reasons. A decision by the City denying prequalification under this section shall be final and conclusive unless the contractor appeals the decision as provided in Section 21-161. (g) Prequalification may be denied to any contractor only if the City finds one of the following: (1) The contractor does not have sufficient financial ability to perform the contract that would result from such procurement. If a bond is required to ensure performance of a contract, evidence that the contractor can acquire a surety bond from a corporation included on the United States Treasury list of acceptable surety corporations in the amount and type required by the City shall be sufficient to establish the financial ability of such contractor to perform the contract resulting from such procurement; (2) The contractor does not have appropriate experience to perform the construction project in question; (3) The contractor or any officer, director or owner thereof has had judgments entered against the contractor within the past ten years for the breach of contracts for governmental or nongovernmental construction, including, but not limited to, design-build or construction management; (4) The contractor has been in substantial noncompliance with the terms and conditions of prior construction contracts with the City without good cause. If the City has not contracted with a contractor in any prior construction contracts, the City may deny prequalification if the contractor has been in substantial noncompliance with the terms and conditions of comparable construction contracts with another public body without good cause. The City may not utilize this subsection to deny prequalification unless the facts underlying such substantial noncompliance were documented in writing in the prior construction project file and such information relating thereto was given to the contractor at that time, with the opportunity to respond; (5) The contractor or any officer, director, owner, project manager, procurement manager or chief financial official thereof has been convicted within the past ten years of a crime related to governmental or nongovernmental construction or contracting, including, but not limited to, a violation of: a. Article VIII of this chapter; b. The Virginia Governmental Frauds Act, Code of Virginia, § 18.2-498.1 et seq.; c. Code of Virginia, Title 59.1, Ch. 4.2 (Code of Virginia, § 59.1-68.6 et seq.), which pertains to conspiracy to rig bids to government; or d. Any substantially similar law of the United States or another state; (6) The contractor or any officer, director or owner thereof is currently debarred pursuant to an established debarment procedure from bidding or contracting by any public body, agency of another state or agency of the Federal government; (7) The contractor failed to provide to the City in a timely manner any information requested by the City relevant to Subsections (g)(1) through (6) of this section; and (8) The contractor failed to make or propose to make good faith minority business enterprise and emerging small business participation efforts as set forth in Subsection (b) of this section. A contractor that fails to receive a score of at least 50 percent of the possible minority business enterprise and emerging small business participation efforts percentage points shall not be prequalified to bid on or receive the contract. (Code 1993, § 22.1-41.1; Code 2004, § 74-50; Code 2015, § 21-46; Code 2020, § 21-46; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2006-134-105, § 1, 5-8-2006)

Richmond, Va., City Code § 21-47 Competitive sealed bidding; procedures.

Sec. 21-47. - Competitive sealed bidding; procedures. (a) An invitation for bids shall be in writing and contain or incorporate by reference the specifications and contractual terms and conditions applicable to the procurement. Unless the Director has provided for prequalification of bidders as provided under Section 21-45 or 21-46, the invitation for bids shall include a statement of any requisite qualifications of potential contractors. When it is impractical to prepare initially a purchase description to support an award based on prices, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation. (b) Public notice of the invitation for bids shall be posted on the City's Internet website at least ten days prior to the date set for the receipt of bids. In addition, the Director may publish in a newspaper of general circulation or on the Virginia Department of General Services' central electronic procurement website. (c) When inviting bids, the Director may also solicit bids directly from potential contractors. Any additional solicitations shall include certified businesses selected from a list made available by the Virginia Department of Small Business and Supplier Diversity and shall include minority business enterprises or emerging small businesses, or both, selected from a list made available by the Office of Minority Business Development. (d) No invitation for bids for construction services shall condition a successful bidder's eligibility on having a specified experience modification factor. For purposes of this subsection, the term "experience modification factor" means a value assigned to an employer as determined by a rate service organization in accordance with its uniform experience rating plan required to be filed pursuant to Code of Virginia, § 38.2-1913(D). (Code 1993, § 22.1-42; Code 2004, § 74-51; Code 2015, § 21-47; Code 2020, § 21-47; Ord. No. 2016-197, § 1, 9-12-2016)

Richmond, Va., City Code § 21-48 Use of brand names.

Sec. 21-48. - Use of brand names. Unless otherwise provided in the invitation for bids, the name of a certain brand, make or manufacturer shall not restrict bidders to the specific brand, make or manufacturer named and shall be deemed to convey the general style, type, character and quality of the article desired. Any article that the City in its sole discretion determines to be the equal of that specified, considering quality, workmanship, economy of operation, and suitability for the purpose intended, shall be accepted. The burden of proof as to the comparative quality and suitability of the alternative equipment, articles, materials or supplies shall be on the bidder or offeror, who shall furnish at the bidder's or offeror's own expense such information relating thereto as may be required by the purchasing agent. (Code 1993, § 22.1-43; Code 2004, § 74-52; Code 2015, § 21-48; Code 2020, § 21-48)

Richmond, Va., City Code § 21-49 Comments on specifications.

Sec. 21-49. - Comments on specifications. For complex equipment, supplies, services or construction, pre-bid conferences with prospective bidders may be desirable after draft specifications have been prepared. Such conferences may be utilized to help detect unclear provisions that tend to widen competition by removing unnecessarily restrictive language. Conferences on purchasing bids will be called by the Director and attended by a requesting agency or department representative and, if necessary, the City Attorney. (Code 1993, § 22.1-44; Code 2004, § 74-53; Code 2015, § 21-49; Code 2020, § 21-49)

Richmond, Va., City Code § 21-50 Bid bonds on construction contracts.

Sec. 21-50. - Bid bonds on construction contracts. (a) Except in cases of emergency, all bids or proposals for nontransportation-related construction contracts in excess of $500,000.00 or transportation-related projects authorized under Code of Virginia, Title 33.2, Ch. 2, Art. 2 (Code of Virginia, § 33.2-208 et seq.) that are in excess of $350,000.00 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 authorized to do business in Virginia, as a guarantee that, if the contract is awarded to the bidder, the bidder will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not exceed five percent of the amount bid. (b) No forfeiture under a bid bond shall exceed the lesser of: (1) The difference between the bid for which the bond was written and the next low bid; or (2) The face amount of the bid bond. (c) Nothing in this section shall preclude the City from requiring bid bonds to accompany bids or proposals for construction contracts anticipated to be less than $500,000.00 for nontransportation-related projects or $350,000.00 for transportation-related projects authorized under Code of Virginia, Title 33.2, Ch. 2, Art. 2 (Code of Virginia, § 33.2-208 et seq.) and partially or wholly funded by the Commonwealth. (Code 1993, § 22.1-45; Code 2004, § 74-54; Code 2015, § 21-50; Code 2020, § 21-50; Ord. No. 2011-79-64, § 1, 4-25-2011; Ord. No. 2017-099, § 1, 6-12-2017; Ord. No. 2022-179, § 1, 6-27-2022)

Richmond, Va., City Code § 21-51 Bonds for other than construction contracts.

Sec. 21-51. - Bonds for other than construction contracts. (a) At the discretion of the Director, bidders may be required to submit with their bids a bid bond from a surety company selected by the bidder that is authorized to do business in the State, or a certified check, in an amount to be determined by the Director and specified in the invitation for bids, which shall be forfeited to the City upon the bidder's failure to execute a contract awarded to the bidder or upon the bidder's failure to furnish any required performance or payment bonds in connection with a contract awarded. (b) The Director may require successful bidders to furnish a performance bond or a payment bond, or both, from a surety company selected by the bidder that is authorized to do business in the State at the expense of the successful bidder, in amounts to be determined by the Director and specified in the invitation for bids, to ensure the satisfactory completion of the work for which a contract or purchase order is awarded. (Code 1993, § 22.1-46; Code 2004, § 74-55; Code 2015, § 21-51; Code 2020, § 21-51)

Richmond, Va., City Code § 21-52 Bid opening.

Sec. 21-52. - Bid opening. Bids received pursuant to this article shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and such other relevant information as the Director deems appropriate, together with the name of each bidder, shall be recorded; the record and each bid shall be open to public inspection upon completion of the award. A tabulation of all bids received shall be made available for public inspection after the bid opening. (Code 1993, § 22.1-47; Code 2004, § 74-56; Code 2015, § 21-52; Code 2020, § 21-52)

Richmond, Va., City Code § 21-53 Withdrawal of bid due to error.

Sec. 21-53. - Withdrawal of bid due to error. (a) A bidder for a public construction contract, other than a contract for construction or maintenance of public highways, may withdraw the bid from consideration if the price bid was substantially lower than the other bids due solely to a mistake in the bid, provided the bid was submitted in good faith, and the mistake was a clerical mistake as opposed to a judgment mistake and was actually due to 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. (b) If a bid contains both clerical and judgment mistakes, a bidder may withdraw the bid from consideration if the price bid would have been substantially lower than the other bids due solely to the clerical mistake that was an unintentional arithmetic error or an unintentional omission of a quantity of work, labor or material made directly in the compilation of a bid that shall 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. (c) One of the following procedures for withdrawal of a bid shall be selected by the Director and stated in the advertisement for bids: (1) The bidder shall give notice in writing of the claim of right to withdraw the bid within two business days after the conclusion of the bid opening procedure and shall submit original work papers with such notice; or (2) Where the City opens the bids one day following the time fixed for the submission of bids, the bidder shall submit to the Director the bidder's original work papers, documents and materials used in the preparation of the bid at or prior to the time fixed for the opening of bids. The work papers shall be delivered by the bidder in person or by registered mail. The bidder shall have two hours after the opening of bids within which to claim in writing any mistake as defined in this section and withdraw the bid. The contract shall not be awarded by the City until the two-hour period has elapsed. Under these procedures, the mistake shall be proved only from the original work papers, documents and materials delivered as required in this subsection. The work papers, documents and materials submitted by the bidder shall, at the bidder's request, be considered trade secrets or proprietary information subject to the conditions of Section 21-5(f). (d) The Director may establish procedures for the withdrawal of bids for other than construction contracts. (e) No bid shall be withdrawn under this section 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. (f) If a bid is withdrawn in accordance with this section, the lowest remaining bid shall be deemed to be the low bid. (g) 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 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. (h) The Director shall notify the bidder in writing within five business days of the Director's decision regarding the bidder's request to withdraw its bid. If the Director denies the withdrawal of a bid under the provisions of this section, the Director shall state in such notice the reasons for the decision and award the contract to such bidder at the bid price, provided such bidder is a responsible and responsive bidder. At the same time that the notice is provided, the Director shall return all work papers and copies thereof that have been submitted by the bidder. (Code 1993, § 22.1-48; Code 2004, § 74-57; Code 2015, § 21-53; Code 2020, § 21-53; Ord. No. 2016-197, § 1, 9-12-2016)

Richmond, Va., City Code § 21-54 Bid evaluation under competitive sealed bidding.

Sec. 21-54. - Bid evaluation under competitive sealed bidding. Bids shall be evaluated based upon the requirements set forth in the invitation for bids, which may include special qualifications of contractors, life-cycle costing, value analysis, and any other criteria such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose, which are helpful in determining acceptability. In determining the lowest responsive and responsible bidder on purchases or contracts, the following factors, among such others as will protect and preserve the interests of the City and its inhabitants, shall be considered: (1) The ability, capacity and will of the bidder to perform the contract or provide the service required. (2) Whether the bidder can perform the contract or provide the services promptly or within the time specified, without delay or interference. (3) The character, integrity, reputation, judgment, experience and efficiency of the bidder. (4) The quality of performance of previous contracts or services. (5) The previous and existing compliance by the bidder with laws and ordinances relating to the contract, purchase or service. (6) The equipment, personnel and facilities available to the bidder to perform the contract or provide the service. (7) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service. (8) The quality, availability and adaptability of the supplies, materials, equipment or services to the particular use required. (9) The ability of the bidder to provide future maintenance and service for the use of the subject of the purchase or contract. (10) The amount and conditions, if any, of the bid. (11) The bidder's showing that it can and will comply with its proposed commitments to minority business enterprise and emerging small business participation efforts. (12) The bidder's past performance with regard to its minority business enterprise and emerging small business participation efforts. (Code 1993, § 22.1-49; Code 2004, § 74-58; Code 2015, § 21-54; Code 2020, § 21-54; Ord. No. 2016-197, § 1, 9-12-2016)

Richmond, Va., City Code § 21-55 Bid award under competitive sealed bidding.

Sec. 21-55. - Bid award under competitive sealed bidding. (a) Bids under competitive sealed bidding shall be awarded to the lowest responsive and responsible bidder. When the terms and conditions of multiple bids are so provided in the invitation to bid, awards may be made to more than one bidder. (b) The contract shall be awarded with reasonable promptness by written notice to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If all bids for a procurement exceed available funds allocated to that procurement by prior agency, departmental or other official action, as certified by the agency head or department director, the Director, with the approval of the Chief Administrative Officer, is authorized, when time or economic considerations preclude resolicitations of work of a reduced scope, to negotiate an adjustment of the bid price with the lowest responsive and responsible bidder in order to bring the bid within the amount of available funds allocated to that procurement. (c) When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the purchasing office and filed with the other papers relating to this transaction. (Code 1993, § 22.1-50; Code 2004, § 74-59; Code 2015, § 21-55; Code 2020, § 21-55; Ord. No. 2004-360-330, § 1, 12-13-2004)

Richmond, Va., City Code § 21-56 Tie bids.

Sec. 21-56. - Tie bids. (a) In the case of a tie bid, preference shall be given to goods, services and construction produced in the City or provided by persons in the City, if such a choice is available; otherwise, the tie shall be decided by lot, unless Section 21-8 applies. (b) 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 this State. (c) In any contract which is to be awarded through competitive sealed bidding, if there are equal bids among qualified bidders, the contract shall be awarded to the contractor who will be able to provide the greatest degree of accessibility to the City officials who will be administering the contract. (d) If more than two bids received are tied, the City shall compare location, payment terms, delivery terms, and other terms and shall select the bid most favorable to the City based on that comparison, which shall be documented in writing. (e) If none of the subsections of this section resolve the tie, the Director may cancel the solicitation and rebid. Records shall be kept of any proceeding connected with tie bids. (Code 1993, § 22.1-51; Code 2004, § 74-60; Code 2015, § 21-56; Code 2020, § 21-56)

Richmond, Va., City Code § 21-57 Contract pricing arrangements.

Sec. 21-57. - Contract pricing arrangements. (a) Except as prohibited in this article, public contracts may be awarded on a fixed-price or cost reimbursement basis or on any other basis that is not prohibited. (b) Subject to the limitations of this section, any type of contract which is appropriate to the procurement and which will promote the best interests of the City may be used, provided that the use of a cost-plus-a-percentage-of-cost contract or a cost-plus-a-percentage-of-construction-cost contract is prohibited. (c) A cost reimbursement contract may be used only when a determination is made in writing that such contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the supply, service, or construction item required except under such a contract. (Code 1993, § 22.1-53; Code 2004, § 74-61; Code 2015, § 21-57; Code 2020, § 21-57)

Richmond, Va., City Code § 21-58 Multiterm contracts.

Sec. 21-58. - Multiterm contracts. (a) Specified period. Unless otherwise provided by law, a contract for goods, services or insurance may be entered into for any period of time deemed to be in the best interest of the City, provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor. (b) Cancellation due to unavailability of funds in succeeding fiscal periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled. (Code 1993, § 22.1-54; Code 2004, § 74-62; Code 2015, § 21-58; Code 2020, § 21-58)

Richmond, Va., City Code § 21-59 Contract modification or supplement.

Sec. 21-59. - Contract modification or supplement. 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 amount of the contract or $100,000.00, whichever is greater, unless the Chief Administrative Officer approves such change in writing in advance of such modification being made. (Code 1993, § 22.1-55; Code 2004, § 74-63; Code 2015, § 21-59; Code 2020, § 21-59; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2021-034, § 1, 3-8-2021)

Richmond, Va., City Code § 21-60 Retainage on construction contracts.

Sec. 21-60. - Retainage on construction contracts. (a) In any public contract for construction that provides for progress payments in installments based upon an estimated percentage of completion, the contractor shall be paid at least 95 percent of the earned sum when payment is due, with not more than five percent being retained to ensure faithful performance of the contract. All amounts withheld may be included in the final payment. (b) Any subcontract for a public project that provides for similar progress payments shall be subject to this section. (Code 1993, § 22.1-56; Code 2004, § 74-64; Code 2015, § 21-60; Code 2020, § 21-60)

Richmond, Va., City Code § 21-61 Deposit of certain retained funds on certain contracts; penalty for failure to timely complete.

Sec. 21-61. - Deposit of certain retained funds on certain contracts; penalty for failure to timely complete. (a) When contracting directly with contractors for public contracts of $200,000.00 or more for construction of highways, roads, streets, bridges, parking lots, demolition, clearing, grading, excavating, paving, pile driving, miscellaneous drainage structures, and the installation of water, gas, sewer lines and pumping stations where portions of the contract price are to be retained, the City shall include in the bid proposal an option for the contractor to use an escrow account procedure for utilization of the City's retainage funds by so indicating in the space provided in the proposal documents. If the contractor elects to use the escrow account procedure, the escrow agreement form included in the bid proposal and contract shall be executed and submitted to the Director within 15 calendar days after notification. If the escrow agreement form is not submitted within the 15-day period, the contractor shall forfeit the contractor's rights to the use of the escrow account procedure. (b) In order to have retained funds paid to an escrow agent, the contractor, the escrow agent, and the surety shall execute an escrow agreement form. The contractor's escrow agent shall be a trust company, bank or savings institution with its principal office located in the Commonwealth. The escrow agreement and all regulations adopted by the City shall be substantially the same as that used by the State Department of Transportation. (c) This section shall not apply to public contracts for construction for railroads, public transit systems, runways, dams, foundations, installation or maintenance of power systems for the generation and primary and secondary distribution of electric current ahead of the customer's meter, the installation or maintenance of telephone, telegraph or signal systems for public utilities, and the construction or maintenance of solid waste or recycling facilities and treatment plants. (d) Any such public contract for construction with the City which includes payment of interest on retained funds may require a provision whereby the contractor, exclusive of reasonable circumstances beyond the control of the contractor stated in the contract, shall pay a specified penalty for each day exceeding the completion date stated in the contract. (e) Any subcontract for such public project which provides for similar progress payments shall be subject to this section. (Code 1993, § 22.1-56.1; Code 2004, § 74-65; Code 2015, § 21-61; Code 2020, § 21-61)

Richmond, Va., City Code § 21-62 Public construction contract provisions barring damages for unreasonable delays declared void.

Sec. 21-62. - Public construction contract provisions barring damages for unreasonable delays declared void. (a) Any provision contained in any public construction contract that purports to waive, release, or extinguish the rights of a contractor to recover costs or damages for unreasonable delay in performing such contract, either on the contractor's behalf or on behalf of the contractor's subcontractor, if and to the extent the delay is caused by acts or omissions of the City, its agents or employees and due to causes within their control, shall be void and unenforceable as against public policy. (b) Subsection (a) of this section shall not be construed to render void any provision of a public construction contract that: (1) Allows the City to recover that portion of delay costs caused by the acts or omissions of the contractor or its subcontractors, agents or employees; (2) Requires notice of any delay by the party claiming the delay; (3) Provides for liquidated damages for delay; or (4) Provides for arbitration or any other procedure designed to settle contract disputes. (c) A contractor making a claim against the City for costs or damages due to the alleged delaying of the contractor in the performance of its work under any public construction contract shall be liable to the City and shall pay it for a percentage of all costs incurred by the City in investigating, analyzing, negotiating, litigating and arbitrating the claim, which percentage shall be equal to the percentage of the contractor's total delay claim which is determined through litigation or arbitration to be false or to have no basis in law or in fact. (d) If the City denies a contractor's claim for costs or damages due to the alleged delaying of the contractor in the performance of work under any public construction contract, the City shall be liable to and shall pay such contractor a percentage of all costs incurred by the contractor to investigate, analyze, negotiate, litigate and arbitrate the claim. The percentage paid by the City shall be equal to the percentage of the contractor's total delay claim for which the City's denial is determined through litigation or arbitration to have been made in bad faith. (Code 1993, § 22.1-56.2; Code 2004, § 74-66; Code 2015, § 21-62; Code 2020, § 21-62)

Richmond, Va., City Code § 21-63 Performance and payment bonds.

Sec. 21-63. - Performance and payment bonds. (a) Upon the award of any nontransportation-related public construction contract exceeding $500,000.00 awarded to any prime contractor or transportation-related project authorized pursuant to Code of Virginia, Title 33.2, Ch. 2, Art. 2 (Code of Virginia, § 33.2-208 et seq.) exceeding $350,000.00 that is partially or wholly funded by the Commonwealth, the contractor shall furnish to the City the following bonds: (1) 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, unless the contract is an indefinite delivery or quantity contract with the City and the City adopts an ordinance pursuant to Code of Virginia, § 2.2-4337(G). (2) A payment bond in the sum of the contract amount, unless the contract is an indefinite delivery or quantity contract with the City and the City adopts an ordinance pursuant to Code of Virginia, § 2.2-4337(G). 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 furtherance of the work provided for in the contract, and shall be conditioned upon the prompt payment for all materials furnished or labor supplied or performed in the furtherance of the work. (b) 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. (c) Bonds required for the contracts shall be payable to the City. (d) Each of the bonds shall be filed with the Director. (e) Nothing in this section shall preclude the City from requiring payment or performance bonds for construction contracts below $500,000.00 for nontransportation-related projects or $350,000.00 for transportation-related projects authorized under Code of Virginia, Title 33.2, Ch. 2, Art. 2 (Code of Virginia, § 33.2-208 et seq.) and partially or wholly funded by the Commonwealth. (f) 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 that are directly with the subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract. (Code 1993, § 22.1-57; Code 2004, § 74-67; Code 2015, § 21-63; Code 2020, § 21-63; Ord. No. 2011-79-64, § 1, 4-25-2011; Ord. No. 2016-197, § 1, 9-12-2016; Ord. No. 2017-099, § 1, 6-12-2017)

Richmond, Va., City Code § 21-64 Action on performance bond.

Sec. 21-64. - Action on performance bond. No action against the surety on a performance bond given pursuant to this article shall be brought unless within one year after: (1) Completion of the contract, including the expiration of all warranties and guaranties; or (2) Discovery of the defect or breach of warranty, if the action is for such. (Code 1993, § 22.1-58; Code 2004, § 74-68; Code 2015, § 21-64; Code 2020, § 21-64)

Richmond, Va., City Code § 21-65 Actions on payment bond.

Sec. 21-65. - Actions on payment bond. (a) Subject to Subsection (b) of this section, any claimant who has performed labor or furnished material in accordance with the contract documents in furtherance of the work provided in any contract for which a payment bond has been given and who has not been paid in full before the expiration of 90 days after the day on which the claimant performed the last of the labor or furnished the last of the materials for which the claimant claims payment may bring an action on such payment bond to recover any amount due for the labor or material and may prosecute such action to final judgment and have execution on the judgment. The obligee named in the bond need not be named a party to such action. (b) Any claimant who has a direct contractual relationship with any subcontractor from whom the contractor has not required a subcontractor payment bond under Section 21-63(f), but who has no contractual relationship, express or implied, with the contractor, may bring an action on the contractor's payment bond only if the claimant has given written notice to such contractor within 180 days from the day on which the claimant performed the last of the labor or furnished the last of the materials for which the claimant claims payment, stating with substantial accuracy the amount claimed and the name of the person for whom the work was performed or to whom the material was furnished. Any claimant who has a direct contractual relationship with a subcontractor from whom the contractor has required a subcontractor payment bond under Section 21-63(f), but who has no contractual relationship, express or implied, with such contractor, may bring an action on the subcontractor's payment bond. Notice to the contractor shall be served by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where the contractor's office is regularly maintained for the transaction of business. Claims for sums withheld as retainages with respect to labor performed or materials furnished shall not be subject to the time limitations stated in this subsection. (c) Any action on a payment bond must be brought within one year after the day on which the person bringing such action last performed labor or last furnished or supplied materials. (d) Any waiver of the right to sue on the payment bond required by this section shall be void unless it is in writing, signed by the person whose right is waived, and executed after such person has performed labor or furnished material in accordance with the contract documents. (Code 1993, § 22.1-59; Code 2004, § 74-69; Code 2015, § 21-65; Code 2020, § 21-65)

Richmond, Va., City Code § 21-66 Alternative forms of security.

Sec. 21-66. - Alternative forms of security. (a) In lieu of a bid, payment or performance bond, a bidder may furnish a certified check, cashier's check, or cash escrow in the face amount required for the bond. (b) If approved by the City Attorney, a bidder may furnish a personal bond, property bond, or bank or savings institution's letter of credit on certain designated funds in the face amount required for the bid, payment or performance bond. Approval shall be granted only upon a determination that the alternative form of security proffered affords protection to the City equivalent to a corporate surety's bond. (Code 1993, § 22.1-60; Code 2004, § 74-70; Code 2015, § 21-66; Code 2020, § 21-66; Ord. No. 2013-232-214, § 1, 11-25-2013)

Richmond, Va., City Code § 21-67 Competitive negotiation for goods, nonprofessional services, insurance, and construction.

Sec. 21-67. - Competitive negotiation for goods, nonprofessional services, insurance, and construction. (a) Conditions for use. Conditions for use of competitive negotiation as set forth in this section shall be as follows: (1) The Director may allow the use of either competitive sealed bidding as set forth in Section 21-47 and 21-52 through 21-56 or competitive negotiation as set forth in this section to procure any public contract with a nongovernmental contractor for the purchase or lease of goods or for the purchase of nonprofessional services or insurance. (2) Upon a determination made in advance by the Director and set forth in writing that competitive sealed bidding or competitive negotiation is either not practicable or not fiscally advantageous, insurance may be procured through a licensed agent or broker selected in the manner provided for in this section. The basis for this determination shall be documented in writing. (3) Construction may be procured only by competitive sealed bidding, except that competitive negotiation may be used in the following instances: a. On a fixed-price design-build basis or construction management basis as provided in Section 21-44; b. For the construction of highways and any draining, dredging, excavation, grading or similar work upon real property upon a determination made in advance by the Director and set forth in writing by the Director that competitive sealed bidding is either not practicable or not fiscally advantageous to the public, which writing shall document the basis for this determination; or c. Pursuant to Article IX of this chapter. No request for proposals for construction authorized by this chapter shall condition a successful offeror's eligibility on having a specified experience modification factor. For the purposes of Subsection (a)(3) of this section, the term "experience modification factor" means a value assigned to an employer as determined by a rate service organization in accordance with its uniform experience rating plan required to be filed pursuant to Code of Virginia, § 38.2-1913(D). (b) Request for proposals. A request for proposals shall be in writing and indicate in general terms what is sought to be procured, specifying the factors which will be used in evaluating the proposal, indicating whether a numerical scoring system will be used in evaluation of the proposal, and containing or incorporating by reference the other applicable contractual terms and conditions, including any unique capabilities, specifications, or qualifications that will be required. Except with regard to contracts for transportation construction services or transportation-related construction services, the City may include as a factor that will be used in evaluating a proposal the offeror's employment of persons with disabilities to perform the specifications of the contract. In the event that a numerical scoring system will be used in the evaluation of proposals, the point values assigned to each of the evaluation criteria shall be included in the request for proposals or posted at the location designated for public posting of procurement notices prior to the due date and time for receiving proposals. (c) Public notice. At least ten days prior to the date set for receipt of proposals, public notice shall be given by posting on the City's Internet website. In addition, the Director shall publish the notice in a newspaper of general circulation in the City so as to provide reasonable notice to the maximum number of offerors that can be reasonably expected to submit proposals in response to the particular request and may publish the notice on the Virginia Department of General Services' central electronic procurement website. In addition, proposals may be solicited directly from potential contractors. Any additional solicitations shall include certified businesses selected from a list made available by the Virginia Department of Small Business and Supplier Diversity and shall include minority business enterprises or emerging small businesses, or both, selected from a list made available by the Office of Minority Business Development. (d) Procedures for evaluation and award. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. 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 factors involved in the request for proposals, including price if so stated in the request for proposals. Negotiations shall then be conducted with each of the offerors so selected. The offeror shall state any exception to any contractual terms or conditions, including any liability provisions contained in the request for proposals in writing at the time of responding to such request for proposal if so requested by the City. Such exceptions shall be considered during negotiation but shall not be used as a basis for scoring or evaluating which offerors are selected for negotiations. Price shall be considered, but need not be the sole or primary determining factor. After negotiations have been conducted with each offeror so selected, the Director shall select the offeror which, in the Director's opinion, has made the best proposal and provides the best value, and shall award the contract to that offeror. When the terms and conditions of multiple awards are so provided in the request for proposals, awards may be made to more than one offeror. Should the Director determine in writing and in the Director's sole discretion that only one offeror is fully qualified, or that one offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror. (e) Evaluation factors. The request for proposals shall state the relative importance of price and other evaluation factors. One evaluation factor shall be good faith minority business enterprise and emerging small business participation efforts. Such good faith minority business enterprise and emerging small business participation efforts shall comprise 30 percent of the total evaluation. The Office of Minority Business Development shall develop criteria to assess an offeror's good faith minority business enterprise and emerging small business participation efforts and shall evaluate the offeror's response based on those criteria. No offeror receiving less than 50 percent of the possible good faith minority business enterprise and emerging small business participation efforts percentage points from the Office of Minority Business Development shall receive a contract award under competitive negotiation unless granted a waiver by the Chief Administrative Officer. The Chief Administrative Officer may allow a waiver only when: (1) No other qualified, willing, and able offerors have submitted proposals; and (2) Either the Director of the Office of Minority Business Development certifies that the offeror is unable due to circumstances beyond its control to make good faith minority business enterprise and emerging small business participation efforts that would achieve a higher number of percentage points or the Chief Administrative Officer determines that the City will suffer substantial cost, financial or otherwise, if a waiver is not granted. (Code 1993, § 22.1-61; Code 2004, § 74-71; Code 2015, § 21-67; Code 2020, § 21-67; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2006-134-105, § 1, 5-8-2006; Ord. No. 2016-197, § 1, 9-12-2016; Ord. No. 2017-099, § 1, 6-12-2017; Ord. No. 2020-116, § 1, 6-8-2020; Ord. No. 2024-166, § 2, 6-24-2024)

Richmond, Va., City Code § 21-68 Contracting for professional services by competitive negotiation.

Sec. 21-68. - Contracting for professional services by competitive negotiation. (a) Conditions for use. Where the cost of professional services is not expected to exceed $80,000.00 in the aggregate or for the sum of all phases of a contract or project, professional services may be procured in accordance with small purchase procedures adopted in writing by the Director, provided such procedures provide for competition wherever practicable. Where the cost of professional services is expected to exceed $80,000.00 in the aggregate or for the sum of all phases of a contract or project, professional services shall be procured by competitive negotiation as set forth in this section. (b) Competitive negotiation; solicitation, discussion and award. The Director shall issue a written request for proposals indicating in general terms that which is to be procured, specifying the factors that will be used in evaluating the proposal, indicating whether a numerical scoring system will be used in evaluation of the proposal, and containing or incorporating by reference the other applicable contractual terms and conditions, including any unique capabilities, specifications, or qualifications that will be required. Except with regard to contracts for architectural or professional engineering services, the City may include as a factor that will be used in evaluating a proposal the offeror's employment of persons with disabilities to perform the specifications of the contract. In the event that a numerical scoring system will be used in the evaluation of proposals, the point values assigned to each of the evaluation criteria shall be in included in the request for proposals or posted at the location designated for public posting of procurement notices prior to the due date and time for receiving proposals. At least ten days prior to the date set for receipt of proposals, the Director shall give public notice of the request for proposals by posting on the City's Internet website. In addition, the Director shall publish the notice in a newspaper of general circulation in the city so as to provide reasonable notice to the maximum number of offerors that can be reasonably expected to submit proposals in response to the particular request and may publish the notice on the Virginia Department of General Services' central electronic procurement website. In addition, proposals may be solicited directly from potential contractors. Any additional solicitations shall include certified businesses from a list made available by the Virginia Department of Small Business and Supplier Diversity and shall include minority business enterprises or emerging small businesses, or both, selected from a list made available by the Office of Minority Business Development. The Director shall engage in individual discussions with two or more offerors deemed fully qualified, responsible and suitable on the basis of initial responses and with emphasis on professional competence to provide the required services. Repetitive informal interviews shall be permissible. The offerors shall be encouraged to elaborate on their qualifications and performance data or staff expertise pertinent to the proposed project, as well as alternative concepts. In addition, offerors shall be informed of any ranking criteria that will be used by the Director in addition to the review of the professional competence of the offeror. The request for proposals shall not, however, request that offerors furnish estimates of man-hours or cost for services. For architectural or engineering services, the Director shall not request or require offerors to list any exceptions to proposed contractual terms and conditions, unless such terms and conditions are required by statute, regulation, ordinance, or standards developed pursuant to Code of Virginia, § 2.2-1132, until after the qualified offerors are ranked for negotiations. At the discussion stage, the Director may discuss nonbinding estimates of total project costs, including, but not limited to, life cycle costing and, where appropriate, nonbinding estimates of price for services. In accordance with Section 21-5 of this Code, proprietary information from competing offerors shall not be disclosed to the public or to competitors. At the conclusion of discussion, outlined in this subsection, on the basis of evaluation factors published in the request for proposals and all information developed in the selection process to this point, the Director shall select in the order of preference two or more offerors whose professional qualifications and proposed services are deemed most meritorious. Negotiations shall then be conducted, beginning with the offeror ranked first. If a contract satisfactory and advantageous to the City can be negotiated at a price considered fair and reasonable and pursuant to contractual terms and conditions acceptable to the City, the award shall be made to that offeror. Otherwise, negotiations with the offeror ranked first shall be formally terminated and negotiations conducted with the offeror ranked second, and so on until such a contract can be negotiated at a fair and reasonable price. Notwithstanding the foregoing, if the terms and conditions for multiple awards are included in the request for proposals, the Director may award contracts to more than one offeror. Should the Director determine in writing and in the director's sole discretion that only one offeror is fully qualified or that one offeror is clearly more highly qualified and suitable than any others under consideration, a contract may be negotiated and awarded to that offeror. (c) Architectural or professional engineering services for multiple projects. A contract for architectural or professional engineering services relating to multiple projects may be awarded by the City, provided: (1) The projects require similar experience and expertise; (2) The nature of the projects is clearly identified in the request for proposals; and (3) The contract term is limited to one year or when the cumulative total project fees reach the maximum cost authorized in this subsection, whichever occurs first. Such contract may be renewable for three additional terms at the option of the City. Under such contract: (1) The fair and reasonable prices, as negotiated, shall be used in determining the cost of each project performed; (2) The sum of all projects performed in one contract term shall not exceed $10,000,000.00; and (3) The fee of any single project shall not exceed $2,500,000.00. Any unused amounts from one contract term shall not be carried forward to any additional term. Competitive negotiations for such contracts may result in awards to more than one offeror provided: (1) The request for proposals so states; and (2) The Director has established procedures for distributing multiple projects among the selected contractors during the contract term. Such procedures shall prohibit requiring the selected contractors to compete for individual projects based on price. (d) Multiphase professional services contracts. Multiphase professional services contracts satisfactory and advantageous to the completion of large, phased or long-term projects may be negotiated and awarded based on qualifications at a fair and reasonable price for the first phase only, where completion of the earlier phases is necessary to provide information critical to the negotiation of a fair and reasonable price for succeeding phases. Prior to the procurement of any such contract, the Director shall state the anticipated total scope of the project and determine in writing that the nature of the work is such that the best interests of the City require awarding the contract. For purposes of this subsection, the term "multiphase professional service contract" means a contract for the providing of professional services where the total scope of work of the second or subsequent phase of the contract cannot be specified without the results of the first or prior phase of the contract. (a) A written report, submitted annually by the end of December beginning in 2016, showing the efficiencies achieved in the procurement of architectural and professional engineering services as a result of the adoption of the ordinance from which this section is derived over the year preceding the submission of the report; and (b) A written report, submitted monthly by the end of the month beginning with December, 2015, identifying all existing contracts procured under this section, and as may be recodified in the future, that, since the last such report, have been: (1) Modified via change order or contract modification, stating for each the dollar amount of the change and the change in scope or other reason for the change in dollar amount; (2) Renewed or extended, stating for each the period of time for which the contract has been renewed or extended and the new expiration date; and (3) Re-solicited, stating for each sufficient information to enable a person reading the report to view a copy of the new solicitation on the Internet." (Code 1993, § 22.1-63; Code 2004, § 74-72; Code 2015, § 21-68; Code 2020, § 21-68; Ord. No. 2015-102-202, § 1, 11-9-2015; Ord. No. 2016-197, § 1, 9-12-2016; Ord. No. 2020-116, § 1, 6-8-2020; Ord. No. 2021-036, § 1, 3-8-2021; Ord. No. 2022-179, § 1, 6-27-2022)

Richmond, Va., City Code § 21-69 Consideration of accessibility of contractors.

Sec. 21-69. - Consideration of accessibility of contractors. In any contract which is to be awarded through competitive negotiation, the request for proposals shall contain, as one factor for evaluation of proposals, the degree of accessibility that the contractor will be able to provide to the City officials who will be administering the contract. (Code 1993, § 22.1-63.1; Code 2004, § 74-73; Code 2015, § 21-69; Code 2020, § 21-69)

Richmond, Va., City Code § 21-70 Employment discrimination by contractor prohibited; required contract provisions.

Sec. 21-70. - Employment discrimination by contractor prohibited; required contract provisions. The City shall include in every contract of more than $10,000.00 the following provisions: (1) During the performance of this contract, the contractor agrees as follows: a. The contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age, disability, or 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, shall 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. (2) During the performance of this contract, the contractor shall include the provisions of Subsection (1) of this section in every subcontract or purchase order of over $10,000.00, so that the provisions will be binding upon each subcontractor or vendor. (Code 1993, § 22.1-68; Code 2004, § 74-74; Code 2015, § 21-70; Code 2020, § 21-70)

Richmond, Va., City Code § 21-71 Obstruction of practices required under chapter.

Sec. 21-71. - Obstruction of practices required under chapter. It shall be unlawful for any person to: (1) Directly or indirectly cause or coerce or attempt to cause or coerce any person to disregard any practice required to be performed under this chapter. (2) Directly or indirectly engage in economic reprisal or intimidation or harm or threaten harm to any person or retaliate or interfere with any person because such person is willing to or has complied with any practice required to be performed under this chapter or encouraged others to comply with any section in this chapter or has exercised or attempted to exercise any right conferred in this chapter. (3) Directly or indirectly cause or coerce or attempt to cause or coerce another person to engage in economic reprisal or intimidation or harm or threaten harm to any person or retaliate against or interfere with any person because such person is willing to or has complied with any practice required to be performed under this chapter or encouraged others to comply with any section in this chapter or has exercised or attempted to exercise any right conferred in this chapter. (Code 1993, § 22.1-69; Code 2004, § 74-75; Code 2015, § 21-71; Code 2020, § 21-71)

Richmond, Va., City Code § 21-72 Cancellation of solicitations and rejection of bids or proposals; waiver of informalities.

Sec. 21-72. - Cancellation of solicitations and rejection of bids or proposals; waiver of informalities. (a) The Director may cancel an invitation for bids, a request for proposals, or any other solicitation and may reject any or all bids or proposals in whole or in part when the Director determines that it is in the best interest of the City to do so. The reasons for cancellation or rejection shall be made part of the contract file. The Director shall not cancel or reject an invitation for bids, a request for proposals, or 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. (b) The Director may waive informalities in bids. (Code 1993, § 22.1-70; Code 2004, § 74-76; Code 2015, § 21-72; Code 2020, § 21-72)

Richmond, Va., City Code § 21-73 Job order contracting.

Sec. 21-73. - Job order contracting. (a) The Director may award a job order contract for multiple jobs, provided the jobs require similar experience and expertise, the nature of the jobs is clearly identified in the solicitation, and the contract is limited to a term of one year or when the cumulative total project fees reach the maximum authorized in this section, whichever occurs first. The Director may select contractors through either competitive sealed bidding or competitive negotiation. (b) Such contracts may be renewable for three additional one-year terms. The fair and reasonable prices as negotiated shall be used in determining the cost of each job performed, and the sum of all jobs performed in a one-year contract term shall not exceed $10,000,000.00. Individual job orders shall not exceed $1,000,000.00. (c) For the purposes of this section, any unused amounts from one contract term shall not be carried forward to any additional term. (d) Order splitting with the intent of keeping a job order under the maximum dollar amounts prescribed in Subsection (b) of this section is prohibited. (e) The Director may not issue or use a job order under a job order contract solely for the purpose of receiving professional architectural or engineering services that constitute the practice of architecture or the practice of engineering as those terms are defined in Code of Virginia, § 54.1-400. However, professional architectural or engineering services may be included on a job order where such professional services are incidental and directly related to the job, do not exceed $25,000.00 per job order, and do not exceed $75,000.00 per contract term. (f) Job order contracting shall not be used for construction, maintenance, or asset management services for a highway, bridge, tunnel, or overpass. However, job order contracting may be used for safety improvements or traffic calming measures for individual job orders up to $250,000.00, subject to the maximum annual threshold amount established in this section. (Code 2015, § 21-73; Code 2020, § 21-73; Ord. No. 2016-197, § 2, 9-12-2016; Ord. No. 2024-166, § 3, 6-24-2024)

Richmond, Va., City Code § 21-74 Payment of prevailing wage for work performed on certain construction contracts.

Sec. 21-74. - Payment of prevailing wage for work performed on certain construction contracts. (a) Each contract for construction greater than $250,000.00 awarded by the City pursuant to Chapter 21 shall require that the contractor and subcontractors pay wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with the construction contract at or above the prevailing wage rate. (b) Certain contracts exempted. Construction contracts subject to Federal prevailing wage law are exempted from the City's prevailing wage requirement. (c) Contractor responsibilities. (1) Upon the award of any contract subject to the provisions of this section, the contractor to whom such contract is awarded shall certify, under oath, to the Virginia Commissioner of Labor and Industry, the pay scale for each craft or trade employed on the project to be used by such contractor and any of the contractor's subcontractors for work to be performed under such contract. This certification shall, for each craft or trade employed on the project, specify the total hourly amount to be paid to employees, including wages and applicable fringe benefits, provide an itemization of the amount paid in wages and each applicable benefit, and list the names and addresses of any third-party fund, plan or program to which benefit payments will be made on behalf of employees. Within five days of certifying to the Virginia Commissioner of Labor and Industry, the contractor must provide a copy of the certification to the Director. (2) In addition to applying the prevailing wage rates to its own employees pursuant to the terms of its contract with the City, the contractor under each such contract shall include the provisions of this section in every subcontract so that such provisions will be binding upon each subcontractor. The contractor agrees to assume the obligation that the wage requirements will be observed in fulfilling the requirements of the contract. The appropriate enforcement sanctions may be invoked against the contractor and any such subcontractor in the event of such subcontractor's failure to comply with any of the provisions of this section. (3) A contractor or subcontractor who employs any mechanic, laborer, or worker to perform work contracted to be done under the construction contract at a rate that is less than the prevailing wage rate: a. Shall be liable to such individuals for the payment of all wages due plus interest at an annual rate of eight percent accruing from the date the wages were due; and b. Shall be disqualified from bidding on contracts with any public body until the contractor or subcontractor has made full restitution to the individuals. A contractor or subcontractor who willfully violates this section shall be guilty of a Class I misdemeanor. (4) Each contractor and its subcontractor subject to the provisions of this section shall keep, maintain, and preserve: a. Records relating to the wages paid to and hours worked by each individual performing the work of any mechanic, laborer, or worker; and b. A schedule of the occupation or work classification at which each individual performing the work of any mechanic, laborer, or worker on the construction project is employed each work day and week. The contractor or subcontractor shall preserve these records for a minimum of six years after the expiration or termination of the applicable contract, and shall make such records available to the Virginia Department of Labor and Industry or to the City within ten days of a request, and shall certify that records reflect the actual hours worked and the amount paid to its workers for whatever time period is requested. (5) Each contractor and subcontractor subject to the provisions of this section shall post, during the entire time work is being performed, a clearly legible statement of the general prevailing wage rate for each craft and classification involved, as determined by the Virginia Commissioner of Labor and Industry, including the effective date of any changes thereof, in prominent and easily accessible places at the site of the work and at any such places as are used by the contractor or subcontractors to pay workers their wages. Such posting must be made in English and any other language that is primarily spoken by the employees at the worksite. Within ten days of such posting, a contractor or subcontractor shall certify to the Director and to the Virginia Commissioner of Labor and Industry its compliance with this subsection. (6) Contractors and subcontractors shall fully cooperate with any contract compliance requirements specified in the executed contract documents, including, but not limited to, site visits, staff interviews to validate wage rates, and the submission of payroll records. (d) The Director shall be authorized to establish additional policies and procedures designed to implement, administer, and enforce this section. (Ord. No. 2024-186, § 2, 10-15-2024)

Richmond, Va., City Code § 21-75 Purchases by reverse auctioning.

Sec. 21-75. - Purchases by reverse auctioning. (a) The purchase of goods or nonprofessional services, but not construction or professional services, may be made by reverse auctioning. However, bulk purchases of commodities used in road and highway construction and maintenance, and aggregates shall not be made by reverse auctioning. (b) In reverse auctioning, 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. (Ord. No. 2025-137, § 2, 6-23-2025)

Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH21PUPR_ARTIICOFOMESOSEFetched: 11/8/2026