Office of Disaster Recovery outlines $24B‑scale rebuilding plan, reports progress and challenges on schools, hospitals and housing

The Office of Disaster Recovery told the Senate Committee on Disaster Recovery, Infrastructure and Planning that the territory’s recovery portfolio has grown substantially and that the agency is focused on accelerating obligations and expenditures while managing workforce, supply‑chain and permitting challenges.

Director Adrienne Williams Octalin said ODR has expanded the recovery program from a 2019 estimate of roughly $8 billion to a much larger program (the testimony described an additional $16 billion in awards, bringing available funding to the tens of billions). She reported $4.1 billion in funds expended to date and said the office is moving large “bundles” of projects under a Rebuild USVI Super Project Management Office (Super PMO) model meant to accelerate complex work.

Major projects and contracting

- St. Thomas Education Bundle (Suffolk CBNA JV): design and selective demolition in progress; construction scheduled to begin in 2026 for some schools. - Charles Howard/Donnna M. Christian Christensen Medical Complex (Consigli/Benton JV): design optimization in progress; construction scheduled to start in December and complete by 2029. - St. Croix North Central horizontal bundle (CUET Infrastructure South Co): includes power, water, wastewater and roads across roughly 28 square miles; construction anticipated to start in 2026 with completion in 2030 (bid negotiations in progress). - St. John mixed‑sector bundle (Consigli/Benton JV): includes health clinics and a school; construction scheduled to begin next year with phased completions. - Hospital projects (JFL and Roy L. Schneider): Clark‑MCN USVI joint venture selected; demolition and phased construction timelines extend into the late 2020s.

Envision Tomorrow (home repair/rebuild)

Director Williams Octalin reported Envision Tomorrow’s relaunch has shown incremental progress: 72 homes completed, 104 homes under construction, and 78 homes awarded to contractors. ODR said it relaunched the program with a contractor pool to speed solicitations and held applicant information sessions to reduce documentation delays.

ODR told the committee the program’s challenges include varied home conditions (many require custom solutions), permit delays at the Department of Planning and Natural Resources, relocation needs for some applicants during construction, and supply‑chain constraints. The director said the program prioritized lower‑income applicants first and will move to round‑two applicants as funding allows.

Workforce, bonding and procurement strategy

ODR described a two‑track procurement strategy for large projects: packaging similar scopes into bundles and using progressive design‑build or construction‑manager‑at‑risk delivery methods to allow early procurement and early work packages while design continues. The office has executed staff augmentation contracts (Jacob Solutions Inc.) and conducted outreach to large engineering, procurement and construction (EPC) firms to secure joint‑venture partners capable of bonding multimillion‑dollar projects and addressing workforce gaps.

Director Williams Octalin told senators the territory faces a shortage of bonded contractors and a constrained local workforce; ODR plans industry outreach events (October industry days on St. Thomas and St. Croix) and to collaborate with local training partners to expand the skilled labor pool. The office also said it is pursuing workforce housing strategies and exploring H‑1B waiver routes to expand temporary labor where permitted.

Financial and schedule metrics cited

- Funds expended to date: $4.1 billion (drawn down as work is completed). - Project bundles under Super PMO control account for roughly $13.7 billion in contracts already executed or in negotiation. - Envision Tomorrow: 72 homes completed; 104 under construction; 78 awarded; 3 recent solicitations issued during this reporting period (one 40‑home homeowner solicitation; two rental‑program solicitations covering 24 homes). - WAPA pole installations (reported as part of recovery work): 8,926 poles installed territory‑wide (4,303 St. Croix; 2,912 St. Thomas; 1,711 St. John).

ODR flagged key risks

The agency listed rising construction costs, workforce shortages, lack of workforce housing, procurement and bonding constraints, prolonged federal review timelines, and supply‑chain disruptions as the principal risks to schedule and budget. The director asked the Legislature to remain engaged on statutory or policy changes that help speed procurement, permitting, and cash flows.

Committee reaction and next steps

Senators pressed ODR for concrete time frames, contractor‑bonding capacity, steps to increase local subcontractor participation, and the agency’s contingency planning if supply or labor disruptions continue. Senators emphasized the February 2035 FEMA fixed‑cost completion date the testimony referenced as important to preserve the territory’s cost‑share arrangements; ODR said the chosen project delivery methods are intended to speed execution and that the agency will continue to seek federal flexibility and advocacy when unique territorial circumstances arise.

Ending note: The committee asked ODR to return with updates on workforce training partnerships, permit coordination with DPNR and other agencies, grant‑to‑project cash‑flow timelines, and a clear list of shovel‑ready projects that will begin construction within the next 90 days.