On July 1, 2024, Virginia enacted a new law for procurement processes favoring goods manufactured in Virginia. This initiative aims to boost the local economy and support Virginia-based manufacturers.
The VMA was proud to support this important legislation that levels the playing field for Virginia manufacturers with their out-of-state competitors.
Key Provisions:
- Tie Bids:
- Preference first goes to goods produced in Virginia.
- If not available, preference shifts to goods produced in the U.S.
- If neither is applicable, the tie is decided by lot.
- Price Matching:
- Virginia manufacturers can match the lowest bid if their bid is within 10% of the lowest bid from a non-resident.
- This ensures Virginia businesses remain competitive in state contracts.
- Reciprocal Preferences:
- If a non-resident’s state gives local preferences, Virginia extends the same benefits to its residents.
Expiration and Review:
- The preferences are set to expire on July 1, 2027.
- The Department of General Services (DGS) will study the law’s impact and report findings by January 8, 2025, allowing for potential amendments.
Impact:
This law is expected to:
- Encourage growth in Virginia manufacturing.
- Keep more state funds within Virginia.
- Strengthen Virginia’s job market.
In summary, the new procurement preferences are a significant step towards fostering economic growth and supporting local businesses in Virginia. By prioritizing goods manufactured in Virginia, the state aims to create a more robust and self-sufficient economy.