The Office of Disaster Recovery (ODR) is pleased to announce the finalization of all fixed-cost offers for FEMA 428 Public Assistance projects ahead of the Sept. 30, 2024 deadline.
This achievement complies with the stipulations outlined in the recent Federal Emergency Management Agency (FEMA) Cost Share adjustment that increased the level of federal funding available to the territory.
In February of 2024, FEMA increased the federal share from 90 to 95 percent for all public assistance categories, retroactively. The agency also increased the federal share to 98 percent for all projects utilizing Section 428 Alternative Procedures requiring fixed cost offers (FCO). The territory was required to agree on all costs and accept fixed cost offers by Sept. 30 to maintain the 98% cost share for these projects, which included critical facilities such as schools, hospitals and utility systems.
The territory agreed to utilize Section 428 Alternative procedures for a total of 241 projects. This was a requirement to access the provisions of the Bipartisan Budget Act that allowed critical facilities to be rebuilt to industry standards without regard for pre-existing conditions.
The Office of Disaster Recovery instituted a number of measures to ensure the territory met the targeted Sept. 30 deadline including facilitating weekly coordination meetings with FEMA personnel, key agencies and Witt O’Brien representatives.
“This was a truly collaborative approach to achieve this critical milestone,” said ODR Director Adrienne L. Wiliams-Octalien. “We thank FEMA for their continued support and push in the last few months to move projects forward. FEMA’s willingness to lean forward and decipher a way to get to “yes” cannot be underscored enough. This was a monumental effort that will provide dividends in resiliency for the Virgin Islands.”
At the end of August 2024, there were seven projects left to be accepted. These projects included the Replacement of the Richmond Power Plant, STT/STJ Wastewater and Potable Water replacement and the Department of Public Works Unified Paving project. These projects are valued at over $4.7B.
This achievement was made with the assistance of Witt O’Brien, who remains engaged as a disaster recovery consultant for the territory. The firm has assisted with application development and damage assessments from the onset of the disaster and has continued presenting compelling documentation to support the approval projects through FEMA.
As the Office of Disaster Recovery launches Rebuild USVI, the finalization of these fixed-cost offer projects will ensure a smooth transition into the construction phase, guaranteeing that these critical projects are funded. The approved fixed-cost offers will move through the FEMA validation process and then be obligated, making funds available for expenditure.
The Virgin Islands Office of Disaster Recovery remains committed to supporting the residents of the Virgin Islands through recovery and reconstruction efforts, ensuring a resilient and sustainable future for the U.S. Virgin Islands.
