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06.18.2024 Legal News

Job Order Contracting Limits Expanded in Virginia

Legislation has been signed into law in Virginia that expands the maximum thresholds for job order contracting by the Commonwealth.

Job order contracting allows a public body to award a contract to one entity to cover multiple jobs, rather than undergo a bidding process for each individual job. Until now, a total job order contract by a public body in Virginia could be no more than $6 million total and no individual job order could be more than $500,000. Additionally, job order contracts could not be renewed for more than two additional one-year terms.

Come July 1, 2024, however, these thresholds will increase.

Delegate Betsy Carr (D-Richmond) introduced legislation during the 2024 Virginia General Assembly session that does the following:

  • Increase the maximum threshold for a total job order contract from $6 million to $10 million.
  • Increase the maximum threshold for any individual job from $500,000 to $1 million.
  • Increase the number of terms a job order contract may be renewed from two one-year terms to three one-year terms.

Please note that these new provisions shall only apply to contracts entered into on or after July 1, 2024.

To view the full text of this new Act, please visit the following: Acts of Assembly Chapter 060.