2.2-4317 - Prequalification generally; prequalification for construction.
§ 2.2-4317. Prequalification generally; prequalification for construction.
A. Prospective contractors may be prequalified for particular types ofsupplies, services, insurance or construction, and consideration of bids orproposals limited to prequalified contractors. Any prequalification procedureshall be established in writing and sufficiently in advance of itsimplementation to allow potential contractors a fair opportunity to completethe process.
B. Any prequalification of prospective contractors for construction by apublic body shall be pursuant to a prequalification process for constructionprojects adopted by the public body. The process shall be consistent with theprovisions of this section.
The application form used in such process shall set forth the criteria uponwhich the qualifications of prospective contractors will be evaluated. Theapplication form shall request of prospective contractors only suchinformation as is appropriate for an objective evaluation of all prospectivecontractors pursuant to such criteria. The form shall allow the prospectivecontractor seeking prequalification to request, by checking the appropriatebox, that all information voluntarily submitted by the contractor pursuant tothis subsection shall be considered a trade secret or proprietary informationsubject to the provisions of subsection D of § 2.2-4342.
In all instances in which the public body requires prequalification ofpotential contractors for construction projects, advance notice shall begiven of the deadline for the submission of prequalification applications.The deadline for submission shall be sufficiently in advance of the date setfor the submission of bids for such construction so as to allow theprocedures set forth in this subsection to be accomplished.
At least thirty days prior to the date established for submission of bids orproposals under the procurement of the contract for which theprequalification applies, the public body shall advise in writing eachcontractor who submitted an application whether that contractor has beenprequalified. In the event that a contractor is denied prequalification, thewritten notification to the contractor shall state the reasons for the denialof prequalification and the factual basis of such reasons.
A decision by a public body denying prequalification under the provisions ofthis subsection shall be final and conclusive unless the contractor appealsthe decision as provided in § 2.2-4357.
C. A public body may deny prequalification to any contractor only if thepublic body finds one of the following:
1. The contractor does not have sufficient financial ability to perform thecontract that would result from such procurement. If a bond is required toensure performance of a contract, evidence that the contractor can acquire asurety bond from a corporation included on the United States Treasury list ofacceptable surety corporations in the amount and type required by the publicbody shall be sufficient to establish the financial ability of the contractorto perform the contract resulting from such procurement;
2. The contractor does not have appropriate experience to perform theconstruction project in question;
3. The contractor or any officer, director or owner thereof has had judgmentsentered against him within the past ten years for the breach of contracts forgovernmental or nongovernmental construction, including, but not limited to,design-build or construction management;
4. The contractor has been in substantial noncompliance with the terms andconditions of prior construction contracts with a public body without goodcause. If the public body has not contracted with a contractor in any priorconstruction contracts, the public body may deny prequalification if thecontractor has been in substantial noncompliance with the terms andconditions of comparable construction contracts with another public bodywithout good cause. A public body may not utilize this provision to denyprequalification unless the facts underlying such substantial noncompliancewere documented in writing in the prior construction project file and suchinformation relating thereto given to the contractor at that time, with theopportunity to respond;
5. The contractor or any officer, director, owner, project manager,procurement manager or chief financial official thereof has been convictedwithin the past ten years of a crime related to governmental ornongovernmental construction or contracting, including, but not limited to, aviolation of (i) Article 6 (§ 2.2-4367 et seq.) of this chapter, (ii) theVirginia Governmental Frauds Act (§ 18.2-498.1 et seq.), (iii) Chapter 4.2 (§59.1-68.6 et seq.) of Title 59.1, or (iv) any substantially similar law ofthe United States or another state;
6. The contractor or any officer, director or owner thereof is currentlydebarred pursuant to an established debarment procedure from bidding orcontracting by any public body, agency of another state or agency of thefederal government; and
7. The contractor failed to provide to the public body in a timely manner anyinformation requested by the public body relevant to subdivisions 1 through 6of this subsection.
D. If a public body has a prequalification ordinance that provides forminority participation in municipal construction contracts, that public bodymay also deny prequalification based on minority participation criteria.However, nothing herein shall authorize the adoption or enforcement ofminority participation criteria except to the extent that such criteria, andthe adoption and enforcement thereof, are in accordance with the Constitutionand laws of the United States and the Commonwealth.
E. The provisions of subsections B, C, and D shall not apply toprequalification for contracts let under § 33.1-12.
(1982, c. 647, § 11-46; 1994, c. 918; 1995, c. 527; 2001, c. 844; 2007, c.154.)