Virginia Department of General Services

The Public Body Procurement Workgroup meeting addressed SB 550, focusing on the necessity of legislative action regarding nonpayment issues between general contractors and subcontractors. The discussion included comments from the Construction Section of the Office of the Attorney General, highlighting potential negative ramifications of SB 550, such as deterring general contractors from public contracting and increasing bid amounts. Potential technical amendments to SB 550 were presented, covering uniform definitions, clarification of professional services exclusion, consistency in "noncompliance/breach" and "notice" language, and establishing a timeline for withholding payment notices. The Workgroup considered public comments and recommendations, voting on several technical amendments to propose to the General Assembly to improve SB 550's clarity and implementation.

The meeting included a presentation by DSBSD, member discussion about findings and recommendations based on information presented at the previous Workgroup meeting, and detailed reporting by DGS for the previous survey that was conducted. An overview of current certification statistics were presented, including certification percentage trends within Virginia and current certification statistics in comparison with other states. Reports for current construction procurement processes by state agencies and covered institutions that would incentivize general contractors to achieve discretionary spend goals for small, women and minority owned businesses were given. DGS presented detailed report data based on the respondent designation and topic category, in order to highlight general response data and accompanying commentary. SMEs will submit their recommendations and findings and DGS will gather summary information to discuss at the next meeting. Public comments were presented regarding adjusting Virginia's substitute W-9 form, educational opportunity on the eVA purchase orders, and evaluation criteria used for Professional Services procured under Competitive Negotiation or Qualifications Based Selection.

The Public Body Procurement Workgroup convened to discuss subcontract oversight recommendations. A compiled list of recommendations submitted by the Workgroup members was grouped into categories such as subcontracting plans, reporting, and penalties. The DGS presentation of draft report recommendations was deferred to the next meeting. Workgroup members were encouraged to review the recommendations and provide feedback.

The Public Body Procurement Workgroup met to discuss SB 550 and SB 575. Stakeholders commented on SB 550, which concerns payment terms between general contractors and subcontractors. Comments covered topics such as financial risks, payment for change orders, and the impact on small and minority-owned businesses. Stakeholders also commented on SB 575, which concerns the use of total cost of ownership (TCO) calculators when purchasing medium-duty and heavy-duty vehicles, with discussions on the use of TCO calculators for electric vehicles.

The Public Body Procurement Workgroup convened to discuss and finalize recommendations on SB 575 and SB 550, following public comments and a review of draft language. The workgroup addressed the use of a Total Cost of Ownership (TCO) calculator for medium and heavy-duty vehicles, recommending further investigation by VDOT and DRPT. They also discussed amendments pertaining to SB 550, including uniform definitions for construction-related terms, clarification on the inclusion of professional services contracts, and establishing a timeline for withholding payment notices. Additionally, the workgroup introduced a study of SB 272, focusing on policies related to the climate impact of concrete.