ODR Finalizes FEMA FCO Project Approvals Ahead of Deadline

September 26, 2024

ODR Finalizes FEMA FCO Project Approvals Ahead of Deadline

 U.S. Virgin Islands — 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 September 30, 2024 deadline.

This achievement complies with the stipulations outlined in the recent 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 FCOs by September 30, 2024, 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.

ODR instituted a number of measures to ensure the territory met the targeted September 30 deadline to include facilitating weekly coordination meetings with FEMA personnel, key agencies and WOB representatives. “This was a truly collaborative approach to achieve this critical milestone,” said 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 (WOB), 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 we launch Rebuild USVI, the finalization of these FCO 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 Territory.

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The Bryan-Roach Administration is committed to transparency, stabilizing the economy, restoring trust in the government and ensuring that recovery projects are completed as quickly as possible. Visit transparency.vi.gov.