Office of Disaster Recovery reports $23.9 billion obligated, Super PMO awards start moving major school, hospital and utility bundles
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Summary
ODR told the Senate committee that obligations have risen to $23.9 billion, about $3.8 billion has been expended, and a newly established Super Project Management Office has begun awarding bundled contracts for schools, hospitals, undergrounding and other large projects to accelerate recovery work.
The Virgin Islands Office of Disaster Recovery (ODR) told the Committee on Disaster Recovery, Infrastructure and Planning on May 29 that the territory's recovery after hurricanes Irma and Maria has moved into a rapid contracting and construction phase, while cautioning that market conditions and federal review timelines remain constraints.
Director Adrienne L. Williams Octalin said obligations for the disaster portfolio have grown to $23.9 billion after several rounds of federal approvals; "we have expended $3.8 billion as of April 2025," she reported. ODR said it has already spent $238.5 million to initiate and manage hundreds of projects and has issued 20 solicitations in recent months.
Rebuild USVI and the Super PMO: ODR described the Rebuild USVI initiative and a "Super PMO" (super project‑management office) — staffed with Jacobs Engineering and other contractual support — as the mechanism to speed delivery. Since ODR last reported, the Super PMO has facilitated awards and contract kickoffs including:
- A February 2025 contract with Suffolk CBNA joint venture for the Saint Thomas education bundle (six schools and an administrative center; designs at about 20% with staggered completion dates). - A Consigli Benton joint venture award for the Donna M. Christiansen Medical Complex (contract kickoff April 23, 2025; substantial completion expected in 2028). - An award to Persons Services Core for the Saint Croix North Central horizontal bundle (power, water, wastewater, roads) covering areas including Mambijou and Northside Road. - A Consigli Benton joint venture award for the Saint John mixed‑sector bundle (health clinics and a pre‑K–8 school) currently in contracting.
ODR said additional solicitations are scheduled for summer 2025, including the Saint Croix Southwest horizontal bundle and territorial fire‑station rebuilds. The testimony lists ongoing and upcoming procurements for hospital reconstruction, school bundles and undergrounding of distribution feeders by WAPA.
Housing programs and Envision Tomorrow: ODR reported progress on housing recovery. The Envision Tomorrow homeowner program has completed 57 homes and has 107 under active construction; the agency said 45% of eligible residential projects are either completed, mobilized, awarded or solicited and that the program is aiming for substantial completion across residential projects by 2027. ODR also said it is relaunching the rental rehabilitation and reconstruction program and has reengaged participating landlords ahead of procurement and construction planned for summer and fall 2025.
Financing, line of credit and procurement concerns: ODR said it has been using a $100 million line of credit to advance payments to keep contractors moving while federal reimbursements are processed; $100.7 million of advances have been repaid and about $45.3 million remained available at the time of testimony. Director Williams Octalin said the line has allowed the office to issue advance payments when FEMA disbursements lag. Committee members asked about contractor market conditions, rising material costs and the limited number of bidders on large procurements; ODR said it is pursuing bundling and outreach to increase competition but acknowledged a "contractor's market" nationwide and tariff‑driven cost pressures locally.
Other project status highlights: ODR listed multiple near‑term achievements and active projects: ribbon cuttings for Vincent F. Mason Pool and Reinhold Jackson Sports Complex (St. Croix), the University of the Virgin Islands WAPA‑supported solar farm ground‑breaking, the Dale A. Gregory Transportation Center (Charlotte Amalie), design and construction milestones at healthcare, library and school projects, and convenience‑center procurements for Waste Management Authority. The new Charlotte Kimmelman Cancer Institute is 48% complete with a November 2025 target for substantial completion.
Challenges and next steps: ODR emphasized federal review timelines, documentation requirements for FEMA Public Assistance and HMGP, limited contractor availability, tariffs and material supply as major execution challenges. Director Williams Octalin said the office is working to have the majority of critical projects under contract by 2026 and requested continued legislative support for staffing, the line of credit and interagency coordination.
Closing: Williams Octalin highlighted that FEMA recognized the territory's low error rate in compliance reviews, which eases closeout procedures, and said the office will return with regular updates as solicitations progress into construction.
