Administrative Code

Virginia Administrative Code
10/17/2021

Chapter 10. Medical Center Procurement Guidelines

8VAC85-10-10. Definitions.

The following words and terms, when used in this chapter, shall have the following meaning unless the context clearly indicates otherwise:

"Board of Visitors" means the Rector and Board of Visitors of the University of Virginia.

"Enabling legislation" means Chapters 933 and 995 of the 1996 Virginia Acts of Assembly.

"Implementing procedures" or "procedures" means the comprehensive set of specific procurement procedures governed by 8VAC85-10-120 through 8VAC85-10-180.

"President" means the President of the University of Virginia.

"University" means the University of Virginia.

"University of Virginia Medical Center" or "Medical Center" means that part of the University of Virginia Health Sciences Center consisting of the University of Virginia Hospital, referenced in the 1996-98 Appropriation Act (Chapter 912 of the 1996 Acts of Assembly) as Agency 209, and related health care and health maintenance facilities.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-20. General provisions.

A. Chapters 933 and 995 of the 1996 Virginia Acts of Assembly provide that contracts awarded by the University of Virginia on behalf of the University of Virginia Medical Center for the procurement of goods; services, including professional services; and construction shall be exempt from the procurement laws of the Commonwealth, provided that the Board of Visitors of the university adopts guidelines that are generally applicable to such procurements by the Medical Center or by the university on behalf of the Medical Center. The guidelines are to be based upon competitive principles, include certain specific principles and practices enumerated in the enabling legislation and, in each instance, seek competition to the maximum practical degree.

B. The enabling legislation exempts such procurements and contracts from the Virginia Public Procurement Act, § 11-35 et seq. of the Code of Virginia, except that the following provisions of that Act continue to apply: §§ 11-49, 11-51, 11-52 (which section shall not be construed to require compliance with the prequalification application procedures of subsection B of § 11-46), 11-54, 11-56 through 11-61, and 11-72 through 11-80. The enabling legislation also exempts such procurements and contracts from Article 3 (§ 2.1-435 et seq.) of Chapter 32 of Title 2.1 of the Code of Virginia, regarding the duties and responsibilities of the Division of Purchases and Supply of the Virginia Department of General Services and from Article 5 (§ 2.1-480 et seq.) of Chapter 32 of Title 2.1 of the Code of Virginia regarding the review and approval by the Division of Engineering and Buildings of the Virginia Department of General Services of contracts for the construction of Medical Center capital projects.

C. The provisions of this policy statement set forth in this chapter constitute the adopted Board of Visitors procurement guidelines required by the enabling legislation regarding contracts awarded by the university on behalf of the Medical Center.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-30. Continued applicability of other Board of Visitors' policies affecting procurements and capital proj.

These guidelines and any procedures adopted by the president or his designee to implement these guidelines shall continue to be subject to (i) any other policies adopted by the Board of Visitors affecting procurements at the university, including policies regarding the nature and amounts of procurements which may be undertaken without the approval of the Board of Visitors, or of the president or his designee and (ii) with regard to the procurement of construction and construction-related professional services, any other policies adopted by the Board of Visitors affecting capital projects. Should the new procedures conflict with existing policies of the Board of Visitors, the existing policies shall control.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-40. Scope and purpose of Medical Center procurement guidelines.

The guidelines contained in this policy statement apply to contracts awarded by the university on behalf of the Medical Center for the procurement of goods; services, including professional services; and construction. It shall be the policy of the university that Medical Center procurements conducted by the university result in the purchase of high quality goods, services and construction at reasonable prices, and that the Medical Center be free, to the maximum extent permitted by law and these guidelines, from constraining regulations which hinder the ability of the Medical Center to do business in a competitive environment. These guidelines shall apply to all procurements undertaken by the university on behalf of the Medical Center, regardless of the source of funds.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-50. General competitive principles.

In connection with Medical Center procurements and the processes leading to award of contracts, the university is committed to:

1. Seeking competition to the maximum practical degree, taking into account the size of the anticipated procurement, the term of the resulting contract and the likely extent of competition;

2. Conducting all procurements in a fair and impartial manner and avoiding any impropriety or the appearance of any impropriety;

3. Making procurement rules clear in advance of any competition;

4. Giving access to the Medical Center's business to all qualified vendors, firms and contractors, with no potential bidder or offeror excluded arbitrarily or capriciously, while allowing the flexibility to engage in cooperative procurements and to meet special needs of the Medical Center;

5. Ensuring that specifications for purchases are fairly drawn so as not to favor unduly a particular vendor; and

6. Providing for the free exchange of information between the Medical Center, the remainder of the university, and vendors, firms or contractors concerning the goods, services or construction sought and offered, while preserving the confidentiality of proprietary information.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-60. Access to records.

Purchasing and procurement records shall be available to citizens or to interested persons, firms or corporations in accordance with the provisions of the Virginia Freedom of Information Act, § 2.1-340 et seq., and § 11-52 of the Code of Virginia, except those records exempt from disclosure pursuant to § 2.1-342 B 62 or other sections of the Virginia Freedom of Information Act.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-70. Training; ethics in contracting.

The president or his designee shall take all necessary and reasonable steps to assure (i) that all Medical Center and other university officials responsible for and engaged in procurements authorized by the enabling legislation and these guidelines are knowledgeable regarding the requirements of the enabling legislation, these guidelines and §§ 11-72 through 11-80 of the Code of Virginia (Ethics in Public Contracting), (ii) that only officials authorized by these guidelines and any procedures adopted by the president or his designee to implement these guidelines are responsible for and engaged in such procurements, and (iii) that compliance with the enabling legislation and these guidelines is achieved.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-80. Procurements may serve Medical Center and other university needs.

To the extent it is economically beneficial and lawful to do so, and in conformity with these guidelines, the Medical Center is encouraged to participate with other units of the university in the joint procurement of goods and services.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-90. Cooperative procurements and alliances.

The university on behalf of the Medical Center may participate in cooperative procurements with other educational institutions, charitable organizations, health care provider alliances and purchasing organizations where the purposes of these guidelines will be furthered.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-100. Exemption for contracts entered into pursuant to |23-77.3 of the Code of Virginia.

Upon a finding in writing by the Vice President and Provost for Health Sciences or his designee that a proposed contract falls within the provisions of § 23-77.3 of the Code of Virginia, the Medical Center may enter into the contracts and ventures authorized by that section without competition. Such contracts and ventures, however, still shall be subject to approval of the president and the Board of Visitors.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-110. Code of Virginia provisions still applicable to Medical Center procurements.

In implementing the authority conferred by these guidelines, the personnel administering any procurement shall adhere to the following provisions of the Virginia Public Procurement Act, including any amendments thereto: § 11-49 (use of brand names); § 11-51 (prohibiting employment discrimination by contractors); § 11-52 (public inspection of certain records; this section shall not be construed to require compliance with the prequalification application procedures of subsection B of § 11-46); § 11-54 (withdrawal of bids due to error); § 11-56 through § 11-61 (provisions dealing with construction contracts and payment and performance bonds on such contracts); and §§ 11-72 through 11-80 (ethics in public contracting). University personnel also are advised that other provisions of law, including the State and Local Government Conflict of Interests Act, § 2.1-639.1 et seq. of the Code of Virginia, and the Virginia Governmental Frauds Act, § 18.2-498.1 et seq. of the Code of Virginia, continue to apply to all procurements.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-120. Adoption and effective dates of implementing procedures and interim implementing procedures.

A. The president, acting through the executive vice president in consultation with the Vice President and Provost for Health Sciences, shall adopt a comprehensive set of specific procurement procedures (the "procedures"), which implement applicable provisions of law and these guidelines. The procedures (i) shall include the delegation of procurement authority to appropriate university officials who will oversee university purchases on behalf of the Medical Center of goods; services, including professional services; and construction, including a grant of authority to such officials to engage in further delegation of authority as the president deems appropriate, and (ii) shall be consistent with and implement the requirements of these guidelines and the provisions of § 23-77.4 of the Code of Virginia.

B. These guidelines shall be effective July 1, 1996, and, as of their effective date, shall be applicable to all procurements undertaken by the university on behalf of the Medical Center for goods; services, including professional services; and construction. Existing contracts may continue to be used after that date. Since, however, the procedures are not anticipated to be developed and adopted prior to July 1, 1996, interim procedures to implement these guidelines are needed. Therefore, by July 1, 1996, and until 30 days following the submission of the procedures to the Board of Visitors, the president or his designee shall implement these guidelines by adopting, on an interim basis, procurement procedures that (i) incorporate with any necessary modification the Commonwealth of Virginia Purchasing Manual for Institutions of Higher Education and Their Vendors (the "Purchasing Manual") for all procurements of goods and services other than construction and construction-related professional services and (ii) incorporate the provisions of the Virginia Public Procurement Act, § 11-35 et seq. of the Code of Virginia (but not the policies or procedures of any other state agency administering the Virginia Public Procurement Act) for all procurements of construction and construction-related professional services. Thus, on an interim basis, the university will continue to act on behalf of the Medical Center pursuant to the Purchasing Manual for purchases other than capital outlay. The provisions of the Virginia Public Procurement Act incorporated by reference into the interim implementing procedures will apply to procurements related to capital outlay (i.e., construction and capital outlay-related professional services).

C. The interim implementing procurement procedures shall remain in effect until the expiration of 30 days following submission of the procedures to the Board of Visitors. After that date (i) the Purchasing Manual and the Virginia Public Procurement Act provisions incorporated herein by reference shall no longer apply other than as set forth in these guidelines and (ii) these guidelines shall apply as implemented by the procedures to all procurements by the university on behalf of the Medical Center for goods; services, including professional services; and construction.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-130. Protests, appeals and debarment.

The procedures for procurements other than capital outlay shall include a process or processes for an administrative appeal by vendors, firms or contractors, consisting of a protest to a person designated by the president, and thereafter an appeal to a procurement appeals board appointed by the president. Procurements for capital outlay projects shall include a dispute resolution process which may include an appearance before a person appointed by the president. Protests and appeals may challenge determinations of vendor, firm or contractor nonresponsibility or ineligibility, or award of contracts, provided that such protests and appeals are filed within the times specified by the procedures. Remedies available shall be limited to reversal of the action challenged. The procedures also may establish the basis and process for debarment of any vendor, firm or contractor.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-140. Prompt payment of contractors and subcontractors.

The procedures shall include provisions related to prompt payment of outstanding invoices which shall include payment of interest on properly presented invoices outstanding more than 14 days beyond the payment date, at a rate no higher than the lowest prime rate charged by any commercial bank as published in the Wall Street Journal. The payment date shall be the later of 30 days from the date of the receipt of goods or invoice, or the date established by the contract. The procedures shall include compliance with the set off procedures of the Virginia Debt Collection Act, § 2.1-726 et seq. of the Code of Virginia, and shall require an annual report to the Board of Visitors of interest paid during each fiscal year. All contracts also shall require prompt payment of subcontractors by the general contractor upon receipt of payment by the university.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-150. Types of procurements.

The procedures shall implement a system of competitive negotiation for professional services, as defined in the procedures, and shall implement purchasing procedures developed to maximize competition, given the size and duration of the contract, and the needs of the Medical Center. Such procedures may include special provisions for procurements such as emergency procurements, sole source procurements, brand name procurements, small purchases, procurements in which only one qualified vendor responds, and others.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-160. Approval and public notice of procurements.

The procedures shall provide for approval of solicitation documents by an authorized individual and for reasonable public notice of procurements, given the size and nature of the need and the applicability of any Virginia Freedom of Information Act exemption.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-170. Administration of contracts.

The procedures shall contain provisions related to the administration of contracts, including contract claims, modifications, extensions and assignments.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-180. Nondiscrimination.

The procedures shall prohibit employment discrimination by vendors, firms and contractors, shall provide for a nondiscriminatory procurement process and shall include appropriate provisions for involvement of minority and disadvantaged business enterprises.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

8VAC85-10-190. Severability.

The provisions of this policy statement and guidelines promulgated under the enabling legislation or the interim implementing procedures or the implementing procedures promulgated pursuant to this policy statement and these guidelines, or the application thereof to any person or circumstances, which are held invalid shall not affect the validity of other regulations, guidelines, procedures, provisions or applications which can be given effect without the invalid regulations, guidelines, procedures, provisions or applications.

Statutory Authority

§ 23-77.4 of the Code of the Virginia (Chapters 933 and 995 of 1996 Virginia Acts of Assembly).

Historical Notes

Derived from Virginia Register Volume 12, Issue 21, eff. July 1, 1996.

Forms (8VAC85-10-9999)

Commonwealth of Virginia Purchasing Manual for Institutions of Higher Education and Their Vendors, UVA Purchasing Department, not dated.

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