Virginia Public Procurement Act; preference for local products and firms, by localities.

Plain English Breakdown

The bill text specifies that the governing body may give preference in case of a tie bid or if local bidders are within five percent of the lowest price, and permits matching the lowest bid under these conditions.

Virginia Public Procurement Act; Preference for Local Products and Firms

This bill allows local governments in Virginia to give preference to goods, services, and construction produced or provided by businesses based in the same locality if their bid prices are within five percent of the lowest price.

What This Bill Does

• Allows counties, cities, and towns to prefer local products and firms when awarding contracts.
• Requires that local bids be no more than five percent higher than the lowest bid to qualify for preference.
• Permits local bidders to match the lowest bid if they are within five percent of it.

Who It Names or Affects

• Local governments in Virginia (counties, cities, and towns).
• Businesses bidding on contracts from local governments.

Terms To Know

Invitation to Bid

A formal request for bids issued by a government entity for goods or services.

Responsive and Responsible Bidders

Bidders who meet the requirements of the bid invitation and are financially stable enough to fulfill the contract.

Limits and Unknowns

• The bill only applies when bids are submitted through a written Invitation to Bid.
• It does not specify what happens if no local bidders qualify for preference under these rules.

Official Summary Text

Virginia Public Procurement Act; preference for local products and firms; by localities.
Allows the governing body of a county, city, or town to give preference to goods, services, and construction produced in such locality or provided by persons, firms, or corporations having principal places of business in the locality if the bid price is not more than five percent greater than the bid price of the lowest responsive and active bidder. In such a circumstance, the bill permits the bidder of goods, services, and construction produced in such locality or provided by persons, firms, or corporations having principal places of business in the locality to match the price of the lowest responsive and responsible bidder. Under current law, such preference may only be given in the case of a tie bid.

Current Bill Text

SENATE BILL NO. 318

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the Senate Committee on General Laws and Technology

on January 21, 2026)

(Patron Prior to Substitute--Senator Ebbin)

A BILL to amend and reenact §
2.2-4328
of the Code of Virginia, relating to Virginia Public Procurement Act; preference for local products and firms; by localities.

Be it enacted by the General Assembly of Virginia:

1. That §
2.2-4328
of the Code of Virginia is amended and reenacted as follows:

§
2.2-4328
. Preference for local products and firms; applicability.

A. The governing body of a county, city
,
or town may, in the case of a tie bid, give preference to goods, services
,
and construction produced in such locality or provided by persons, firms
,
or corporations having principal places of business in the locality, if such a choice is available
; otherwise the tie shall be decided by lot, unless §
2.2-4324
applies
.
The governing body of a county, city, or town may also give preference to such goods, services, and construction
if
the

bid
of any pe
rson, firm, or corporation having a principal place of business in such locality
is
withi
n
five
percent
of such
bid
and such person, firm, or corporation is granted the option to match the price of
the lowest responsive and
responsible
bidder
, if such a choice is available
.
If neither choice is available,
§
2.2-4324
applies.

B. The provisions of this section shall apply only to bids submitted pursuant to a written Invitation to Bid.