What is a high-risk solicitation or contract?
Code of Virginia § 2.2-4303.01 defines a high-risk contract as any public contract with a state public body for the procurement of goods, services, insurance or construction that is anticipated to either
- Cost in excess of $10 million over the initial term of the contract or
- Cost in excess of $5 million over the initial term of the contract and meets at least one of the following criteria:
- the goods, services, insurance, or construction that is the subject of the contract is being procured by two or more state public bodies;
- the anticipated term of the initial contract, excluding renewals, is greater than five years; or
- the state public body procuring the goods, services, insurance, or construction has not procured similar goods, services, insurance, or construction within the last five years.
Any existing IT contract that (i) meets the definition of a high-risk contract and, (ii) has two or more remaining renewal provisions should be reviewed in accordance with the provisions of § 2.2-4303.01(B) prior to any renewal.