The Code of Virginia prohibits the Commonwealth from entering into certain types of contracts and to contract with individuals or businesses who have defaulted on some obligation to the Commonwealth. These prohibitions are as follows:
§ 2.2-4331 of the Code of Virginia provides that no contract shall be awarded by the Commonwealth on the basis of cost plus a percentage of cost except in the case of emergency affecting the public health, safety or welfare. Contracts may be awarded on a fixed price or cost reimbursement basis, or any other basis that is not prohibited.
Additionally, an agency may not award a contract to a supplier, including its affiliates and all subcontractors if they are excluded on the federal government's System for Award Management (SAM) at https://www.vita.virginia.gov/supply-chain/scm-policies-forms/#sam; or, who is not registered in eVA at time of award.
Agencies may contract with these sources in the event of an emergency or if contractor is the sole source of needed goods and services.