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DEPARTMENT OF PROPERTY AND PROCUREMENT TESTIMONY OF LISA MARIA ALEJANDRO, COMMISSIONER BEFORE THE 36TH LEGISLATURE OF THE VIRGIN ISLANDS COMMITTEE ON CULTURE, YOUTH, AGING, SPORTS, AND PARKS FRITS E. LAWAETZ CONFERENCE ROOM ST. CROIX, U.S. VIRGIN ISLANDS JULY 18, 2025 ON THE PAUL E. JOSEPH STADIUM PROJECT DPP Testimony – Paul E. Joseph Stadium July 18, 2025 Testimony of Lisa Maria Alejandro, Commissioner of the Department of Property and Procurement Before The Committee on Culture, Youth, Aging, Sports, and Parks of the 36th Legislature of the Virgin Islands of the United States on July 18, 2025 Good morning Honorable Angel Bolques, Jr., Chair of the Committee on Culture, Youth, 1 Aging, Sports, and Parks, to Vice – Chair, the Honorable Carla J. Joseph, members of the 2 Committee on Culture, Youth, Aging, Sports and Parks (“Committee”), non-committee members 3 of the 36th Legislature, employees of the Department of Property and Procurement, fellow 4 testifiers, Legislative Staff, and the viewing and listening audience. 5 I am Lisa Maria Alejandro, Commissioner of the Department of Property and 6 Procurement, appearing before this Committee, pursuant to your June 17, 2025, invitation to 7 provide testimony on behalf of the Department of Property and Procurement regarding the Paul 8 E. Joseph Stadium on St. Croix. While I was unable to attend the June 11, 2025, meeting due to 9 a scheduling conflict, which was duly communicated to the Committee, I am here today to 10 participate in the discussion regarding this Project and to outline the Department of Property 11 and Procurement’s role in this process in spearheading the procurement and contracting process. 12 Mr. Chair, your June 17, 2025, requests the following information from DPP: 13 1. A written statement outlining DPP’s responsibilities for the Project; 14 2. All procurement records, RFPs, and contracts executed with GEC, LLC; 15 3. Information on procurement challenges and resolutions; and 16 4. Fiscal records and oversight strategies. 17 18 1. DPP’s Responsibilities 19 The Department of Property and Procurement procured the design/build services for the 20 development of the Paul E. Joseph Stadium, the Terrence Martin Little League Field, and a 21 Festival Village on St. Croix as authorized in Act No. 7453, as amended by Act No. 7663. By way 22 of background, the Department issued a formal Request for Proposal (“RFP”) No. RFP-006- 23 DPP Testimony – Paul E. Joseph Stadium July 18, 2025 2013(P) on January 28, 2013, under the then existing version of title 31, Section 239(a)(4) of the 24 Virgin Islands Code.1 There were two (2) respondents to the RFP, which were both evaluated 25 with GEC, LLC being the highest rated of the two (2) respondents and recommended for the 26 commencement of negotiations and ultimately award. 27 28 (2) Contracts executed with GEC, LLC 29 (i) Contract No. C003SPRC15 30 A Design/Build Contract, Contract No. C003SPRC15 (enclosed) was executed in the 31 amount of Twenty Million Dollars and Zero Cents ($20,000,000.00) on November 19, 2014. 32 However, the Contract and Project were re-reviewed and re-assessed with the change in 33 Administrations in 2015. Thereafter, Contract No. C003SPRC15 was revised to align with 34 Change Order No. 1, which was issued October 16, 2015. The Project Completion time is current 35 through December 25, 2025, in line with executed change orders. Once a contract has been 36 executed and a Notice to Proceed is issued, the Project is turned over to the user agency and the 37 Department of Public Works for project management and furtherance. DPP remains a part of 38 the review process for change orders, supplemental contracts, interpretation of terms and 39 conditions, resolutions of disputes, and, until April 16, 2023, as an approver on payment 40 documents for construction contract-related payments2. The Commissioner of the Department 41 of Public Works has statutory authority for the supervision and overall oversight of construction 42 projects. 43 44 (ii) Change Orders – Contract No. C003SPRC15 45 The Change Order process is a collaborative effort between the user agency and the 46 Department of Public Works, in reviewing the need for any changes and making 47 recommendations for either the approval or disapproval of Change Orders. Change Orders are 48 modifications to the contractual documents and therefore, DPP must also approve the Change 49 1 Through revisions in Act No. 8436, approved December 30, 2020, 31 V.I.C. § 239(a)(4) was revised to create a micro-purchase threshold and the request for proposals requirements were moved to create a new section as 31 V.I.C. § 236 (j). 2 The Department of Public Works was designated as the authorized representative of DPP as the final approver on construction-related payment documents required by 31 V.I. R. & Regs §§ 242-107 and 242-108, effective April 17, 2023, through DPP Memorandum No. 003-2023, as approved by the Governor. DPP Testimony – Paul E. Joseph Stadium July 18, 2025 Order in line with the recommendations of the Government’s engineer. (See Change Orders Nos. 50 1 – 13, 15-20, & 22-24: Contract No. C003SPRC15 (enclosed). 51 52 (iii) Supplemental Contracts – Contract No. C003ASPRC15 (Supplemental 53 Contract No.1) & Contract No. PO-24-810-8102-688 (Supplemental 54 Contract No. 2) 55 Pursuant to 31 title, Section 242-32(a)(3) and (4) of the Virgin Islands Rules and 56 Regulations, a Supplemental Construction Contract is required when the change in costs under 57 the Contract will exceed twenty-five percent (25%) of the original contract price. Consequently, 58 when the Project required changes within this threshold, Contract No. C003ASPRC15 was 59 executed for a maximum amount of Four Million One Hundred Thousand Dollars and Zero 60 Cents ($4,100,000.00) with an effective date of February 26, 20223. Supplemental Contract No. 2 61 (Contract No. PO-24-810-8102-688) was executed effective September 10, 2024, in an amount 62 not to exceed Five Million One Hundred Twenty-Four Thousand Dollars and Zero Cents 63 ($5,124,000.00). The project completion time for the Supplemental Contracts is current through 64 December 25, 2025. (See Change Orders Nos. 1 – 8: Contract No. C003ASPRC15 & Change 65 Order No. 1 – Contract No. PO-24-810-8102-688 (enclosed) 66 67 (3) Information on Procurement Challenges and Resolutions 68 The Department engages in continuous evaluation of our operations to ensure our 69 operations align with best practices in a constantly changing landscape. In 2020, through what 70 became Act No. 8436 and again in 2024 through Act No. 8954, the Department updated the 71 Procurement Statute in the Virgin Islands Code. The Procurement Manual has also been 72 updated to reflect the changes in the Statute. 73 74 (4) Fiscal Records and Oversight Strategies 75 In response to the Chair’s request for information related to fiscal records, DPP has 76 included the payments we have processed for this project. Enclosed with this testimony are 77 thirty-eight (38) payment documents under Contract No. C003SPRC15, and three (3) payments 78 3 The effective date of the Contract is the date signed by the Governor. DPP Testimony – Paul E. Joseph Stadium July 18, 2025 under Contract No. C003ASPRC15 (Supplemental No. 1). With the issuance of DPP 79 Memorandum No. 003-2023, effective April 17, 2023, DPW is the final approver on construction- 80 related payments. Therefore, although the Department receives courtesy copies of the approved 81 payments, DPP will defer to DPW on the payments processed beginning April 17, 2023. See 82 Payment Approvals Through March 21, 2023, (DPP)(enclosed). 83 84 Conclusion 85 In conclusion, Mr. Chair, the Department is equally anxious to see this long-awaited 86 Project through to fruition. We recognize the benefits this will bring to our community, 87 financially, socially, and physically. We remain committed to supporting the efforts of DPW, 88 Sports, Parks and Recreation, and all other stakeholders in seeing this Project through to 89 completion. 90 Mr. Chair, this concludes my prepared testimony. I am available to answer any questions 91 the Committee may have. 92 93