2.2-4331 - Contract pricing arrangements. - Virginia Statutes

§ 2.2-4331. Contract pricing arrangements.

A. Except as prohibited in this section, public contracts may be awarded on afixed price or cost reimbursement basis, or on any other basis that is notprohibited.

B. Except in case of emergency affecting the public health, safety orwelfare, no public contract shall be awarded on the basis of cost plus apercentage of cost.

C. A policy or contract of insurance or prepaid coverage having a premiumcomputed on the basis of claims paid or incurred, plus the insurancecarrier's administrative costs and retention stated in whole or part as apercentage of such claims, shall not be prohibited by this section.

(1982, c. 647, § 11-43; 2001, c. 844.)