September 20, 2024

ODR and VIPFA Files Written Response to Hill

U.S. VIRGIN ISLANDS- On September 19, 2024, the Virgin Islands Office of Disaster Recovery (ODR) and the Virgin Islands Public Finance Authority (PFA) filed a written response to Hill International’s (Hill or Complainant) spurious allegations of conflicts of interest and abuse of discretion in the award of a project management and construction management contract to CH2M Hill, Inc. (Jacobs).

In the detailed 34-page response attached, PFA and ODR defended the decision to select the company that represented the best value for the Virgin Islands using both price and non-price evaluation factors. The evaluation of the proposals was conducted in accordance with the provisions outlined in the request for proposal (RFP). Scoring was based on a 100-point scale, of which cost only represented 20 points. Scoring also included technical responsiveness, 30 points (does the company have the capacity to do the work). Experience and qualifications were 30 points (does the company have the experience to do the work) and 15 points for references (can other companies attest to the quality work). Technical approach and methodology overwhelmingly favored the proposal submitted by Jacobs. As the ODR has reported many times, capacity is one of the territory’s most pervasive challenges, and Jacobs presented a proposal that can support the expected demands of the Rebuild USVI initiative.

In response to Hill’s assertation of conflict of interest. There is none. The individuals referred to in their claim are not employed at the Department of Public Works, and those individuals had no connection to or participation in the evaluation. The Complainant speculated but did not explain or show how any Jacobs employee was involved in any procurement decision related to this RFP.

In reference to the claim that the selected bid proposal’s cost was exorbitant, as part of the evaluation, ODR commissioned an independent, third-party cost analysis of the project management and construction management services as it does for all its solicitations to ensure cost reasonableness. Boston Consulting Group conducted the analysis for this RFP and projected the scope of work would cost approximately $152-226 million dollars, over a three-year period. Jacobs’ proposal was actually lower than the estimate. It was the most aligned with the range set forth by Boston Consulting Group and demonstrated the greatest ability to manage the $8 billion portfolio of disaster recovery projects from both a construction and project management perspective.

“The ODR takes very seriously its responsibility to manage and further the territory’s disaster recovery efforts. In evaluating and identifying the proposer best suited to provide the project management and construction management services, the evaluation committee not only considered cost but the actual ability to perform the management services needed to complete the portfolio of projects that include the construction of schools, healthcare facilities and other infrastructure across the Territory. The lowest bid does not necessarily equate to the best option. Rather, we must consider which company brings the best value in terms of having boots on the ground to support this disaster recovery effort and having the resources available to execute this effort without delay, gaps, or excessive change orders. Jacobs’ standing as an industry leader and its ranking by Engineering News-Record (ENR) as number one among project management firms, makes it a formidable partner to assist the ODR and the Government of the Virgin Islands with the management of billions of dollars’ worth of disaster recovery projects,” said ODR Director Adrienne L. Williams-Octalien.

The three-year contract cost of $137 million is less than 5% of the overall $8 billion worth of projects to be managed, which is the industry standard. Contract terms also include payment upon completed task orders within the not-to-exceed amount of $137 million as opposed to general lump sum payments, thereby guaranteeing payment for actual services performed only Hill also claimed that ODR said it would award a contract to two firms. The RFP and subsequent responses to questions always gave suggestive, not definitive, language that two contractors could be awarded. The ODR acted in the best interest of the territory by awarding one contract to the company that had the highest number of evaluation points instead of two contractors, which would have yielded contracts totaling $167 million.

Most significantly, according to the RFP, Hill had an opportunity to file a protest to this decision. Instead, they chose to file a lawsuit, purposely attempting to derail progress and force ODR to award an additional $30 million contract. Hill’s course of action should have been to file a bid protest in accordance with the RFP, but it failed to do so. They are attempting to circumvent the rules by improperly filing their protest in court instead of following the bid protest procedures outlined in the RFP.

The ODR unequivocally maintains that it selected the respondent who demonstrated the greatest ability to manage the portfolio of projects. 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 Territory.

VIEW FILING HERE