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Virginia Government Contracts — Procurement Guide

Researched by the BidStride Research Team

Coming Soon — State portal monitoring expanding

Federal opportunities from SAM.gov are available now for Virginia.

Virginia state agencies award approximately $6B+ in contracts annually across construction, technology, professional services, and operations. Contracts are posted through the eVA (Virginia's eProcurement Portal) and require vendor registration before you can submit responses or receive bid notifications.

Virginia has specific programs for small and disadvantaged businesses including Virginia SWaM (Small, Women-Owned, and Minority Business) Program. Understanding the state's set-aside programs and registration requirements before you bid is essential to competing effectively.

Procurement Portal

Portal Name
eVA (Virginia's eProcurement Portal)
Annual Volume
$6B+

Small Business Programs

Virginia SWaM (Small, Women-Owned, and Minority Business) Program

  • SWaM (Small, Women-Owned, Minority)
  • DBE (Disadvantaged Business Enterprise)
  • VDOT SWAM
  • Enhanced SWaM

Top Virginia Procurement Agencies

These agencies represent the highest volume buyers in Virginia state government. Targeting your business development efforts toward the agencies most relevant to your capabilities will yield the strongest results.

  • Virginia Department of Transportation
  • Department of General Services
  • Virginia Information Technologies Agency
  • Department of Social Services
  • Virginia Department of Corrections

Top NAICS Codes in Virginia State Contracting

These NAICS codes appear most frequently in Virginia state solicitations. Ensure your SAM.gov registration and state vendor profile include the codes relevant to your services.

How to Register and Bid on Virginia Contracts

  1. 1
    Register on eVA (Virginia's eProcurement Portal). Vendor registration is required to receive bid notifications and submit responses. Registration is typically free. Start registration →
  2. 2
    Select your commodity codes. During registration, select the NIGP or product/service codes that match your offerings. This determines which solicitations you receive notifications for. The more accurately you code your capabilities, the more relevant your alerts will be.
  3. 3
    Pursue Virginia SWaM (Small, Women-Owned, and Minority Business) Program certification if eligible. Certified small and disadvantaged businesses receive preference in evaluation and access to set-aside opportunities. Review eligibility criteria for SWaM (Small, Women-Owned, Minority) and apply before you bid.
  4. 4
    Monitor solicitations and respond promptly. State procurement deadlines are firm. Late bids are typically rejected regardless of reason. Use BidStride to get daily alerts when newVirginia opportunities matching your NAICS codes are posted.

Frequently Asked Questions — Virginia Government Contracting

Licensing Requirements in Virginia

Business License

Required

Virginia requires a Business, Professional and Occupational License (BPOL) from the locality where you operate. There is no single statewide business license; each city or county issues its own. You must also register with the Virginia State Corporation Commission (SCC) if forming an LLC or corporation.

  • BPOL (local)
  • SCC Registration (LLC/Corp)
  • Trade Name Certificate (if DBA)
Apply for license

Contractor License

Required

Virginia requires contractor licenses through the Department of Professional and Occupational Regulation (DPOR) Board for Contractors. Class A license for projects $120,000+, Class B for $10,000-$120,000, Class C for $1,000-$10,000. Electrical, plumbing, and HVAC work requires specialty trade licenses.

Licensing Board: Virginia Board for Contractors (DPOR)

Licensing board info

Virginia Procurement Thresholds

Under the Virginia Public Procurement Act (VPPA, Va. Code 2.2-4300 et seq.), purchases up to $10,000 may be made without competition. Between $10,000 and $200,000, agencies use small purchase procedures with a reasonable number of quotes. Above $200,000 for goods and services (or $300,000 for non-transportation construction), formal competitive sealed bidding or competitive negotiation is required. These thresholds were increased effective July 2020.

CategoryThreshold
Micro PurchaseUp to $10,000
Informal Bidding$10,000 - $200,000 (small purchase procedures)
Formal BiddingAbove $200,000 for goods/services; above $300,000 for non-transportation construction (competitive sealed bidding or competitive negotiation required)

Virginia Contractor Certifications

These certifications can give your business a competitive advantage when bidding on Virginia state contracts, including access to set-aside programs and evaluation preferences.

SWaM

Small, Women-owned, and Minority-owned Business (SWaM)

Virginia's primary small business certification program encompassing small, women-owned, and minority-owned businesses. Certified businesses receive procurement preferences on state contracts.

Agency: Virginia Department of Small Business and Supplier Diversity (SBSD)

  • Procurement preferences on state contracts
  • Set-aside eligibility
  • Listed in SWaM vendor directory
  • Networking and matchmaking events
Apply for SWaM
DBE

Disadvantaged Business Enterprise

Federally-mandated program for firms bidding on USDOT-assisted contracts (highways, transit, airports). Virginia administers this through SBSD.

Agency: Virginia Department of Small Business and Supplier Diversity (SBSD)

  • Eligibility for DBE set-aside goals on federally-funded transportation projects
  • Listed in UCP directory
Apply for DBE
SDV

Service Disabled Veteran-Owned Small Business

Virginia certifies service-disabled veteran-owned small businesses for procurement preferences.

Agency: Virginia Department of Small Business and Supplier Diversity (SBSD)

  • Procurement preferences
  • Set-aside eligibility
  • Part of SWaM program
Apply for SDV
Micro

Micro Business

Subset of SWaM for very small firms with no more than 25 employees and average annual revenue under $3 million.

Agency: Virginia Department of Small Business and Supplier Diversity (SBSD)

  • Enhanced procurement preferences
  • Micro-purchase set-asides
Apply for Micro

Virginia Set-Aside Programs

SWaM Set-Aside

Goal: 42%

Virginia's aspirational goal is 42% of discretionary spending to SWaM-certified businesses. Agencies are directed to set aside contracts for SWaM vendors where feasible.

Service Disabled Veteran-Owned Small Business

Goal: Part of 42% SWaM goal

Included within the SWaM program; agencies encouraged to maximize awards to SDV-certified firms.

How to Protest a Virginia Contract Award

Filing Deadline
10 days after award or decision, or 10 days after the basis for protest was known or should have been known
Filing Body
The issuing agency head (initial protest); then appeal to circuit court
Process
Under Va. Code 2.2-4360, a bidder may protest to the agency head within 10 days. The agency must issue a written decision. If unsatisfied, the protester may appeal to the appropriate circuit court within 10 days of the agency decision. There is no state-level protest board equivalent to the federal GAO.
Protest procedures details

Virginia Payment Terms for Contractors

30

Days (Standard)

Yes

Prompt Payment Act

Prime rate (WSJ corporate loan rate) for state agency payments; 1% per month default rate for subcontractor payments when contract is silent

Late Interest Rate

Under Virginia's Prompt Payment Act (Va. Code 2.2-4347 et seq.), state agencies must pay contractors within 30 days of receipt of a proper invoice. If payment is late, the state owes interest at the prime rate (Wall Street Journal corporate loan rate). For subcontractor payments, if the contract is silent on the interest rate, the default is 1% per month. Prime contractors must pay subcontractors within 7 days of receipt of payment from the state.

Virginia Bonding Requirements

Virginia law requires performance and payment bonds for construction contracts exceeding $500,000. For contracts between $100,000 and $500,000, agencies may require bonds at their discretion. Bid bonds of 5% are standard on formally bid construction projects.

Bond TypeRequirement
Bid Bond5% of bid amount (typical for construction over $100,000)
Performance Bond100% of contract price for construction contracts over $500,000
Payment Bond100% of contract price for construction contracts over $500,000

Threshold: Construction contracts exceeding $500,000 require performance and payment bonds under Va. Code 2.2-4337

Virginia Insurance Requirements

General Liability
$1,000,000 per occurrence / $2,000,000 aggregate (typical state contract requirement)
Workers' Compensation
Required by law for employers with 3+ employees (Va. Code 65.2-101). Statutory limits apply.
Additional Requirements
Auto liability typically $1,000,000 combined single limit. Professional liability may be required for design and consulting contracts. Umbrella/excess liability may be required for larger contracts.

Unique Contracting Rules in Virginia

  • Virginia Buy Virginia Act: Executive policy encourages purchasing goods and services from Virginia-based businesses when price and quality are comparable.
  • Apprenticeship requirements on certain publicly funded construction projects over $250,000 [VERIFY specific threshold].
  • VPPA requires agencies to procure architectural and engineering services through a qualifications-based selection process (Va. Code 2.2-4302.2), not lowest price.
  • Construction contracts must include a retainage clause, limited to 5% under Va. Code 2.2-4333.
  • Virginia allows cooperative procurement — localities and state agencies can piggyback on each other's contracts under Va. Code 2.2-4304.
  • eVA registration is mandatory for all vendors seeking state contracts.

Virginia Government Contracting — Key Facts

  • Virginia spends approximately $18 billion annually on procurement across all state agencies [VERIFY current figure].
  • The SWaM program targets 42% of discretionary spending to certified small, women-owned, and minority-owned businesses.
  • Over 20,000 vendors are registered in the eVA procurement system.
  • Virginia's Prompt Payment Act requires state agencies to pay within 30 days or owe 1% monthly interest (Va. Code 2.2-4347).
  • Performance and payment bonds are required on Virginia construction contracts exceeding $500,000 (Va. Code 2.2-4337).

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