Division of Procurement
The Division of Procurement provides a firm commitment to a procurement system that provides quality, integrity, and timeliness of service to all User Agencies, the business community, and the people of the U.S. Virgin Islands. DPP as the Government's general service agency works to provide prompt and efficient service to departments and agencies based on best value and cost-effectiveness.
Pursuant to Title 31, Chapter 23 of the Virgin Islands Code, the Department of Property and Procurement (DPP) is the Executive Agency of the Government of the United States Virgin Islands (GVI) with the statutory authority and responsibility for the acquisition of all goods and services for the executive branch of the GVI. As GVI’s Contracting Officer, solely the Commissioner of DPP has the authority to purchase or contract for supplies, materials, equipment, and services for all GVI’s executive branch departments, offices, boards, institutions, and other agencies except for the judicial and legislative branches of the GVI. Only the Commissioner of DPP has the authority to approve purchases and award contracts. Thus, no department has independent procurement authority unless it is authorized pursuant to statute or delegation or waiver from the Commissioner of DPP.
The Division of Procurement at DPP, through its Office of Procurement, Contract Management and Reporting (OPCMR), is responsible for fulfilling the DPP’s procurement and contracting mandates. The OPCMR was established to develop a centralized procurement and contracting management organizational structure within the executive branch and is comprised of procurement staff from each executive branch agency charged with procurement functions on behalf of each agency.
Under the guidance of the Assistant Commissioner of Procurement, the Division of Procurement has a firm commitment to a procurement system that provides quality, integrity, and timeliness of service to all user agencies, the business community, and the people of the U.S. Virgin Islands.
The term “procurement” means the acquisition of supplies, materials, equipment, and services (including construction) by means such as purchasing, leasing, or contracting. It includes all stages of the process of acquiring the goods or services, beginning with the process for determining a need for the goods or services, planning, sourcing, negotiating, contract administration, contract management, payment certification, and ending with contract closeout and retention. The terms procurement and acquisition are sometimes used interchangeably. The DPP requires acquisition planning by Executive Branch Agencies to determine how the government’s needs will be fulfilled; by optimizing resources, conducting market research and cost analysis, determining the most effective acquisition method, and developing clear and concise scopes of services. Planning enables agencies to stay within budget, plan for future allotments, expend funds timely, and acquire best value services.
The Government of the U.S. Virgin Islands utilizes two methods for procuring goods and services: 1) Open Market Purchases and 2) Formal Solicitations.
Pursuant to Title 31, Chapter 23, Section 235, all purchases of and contracts for supplies, materials, equipment, and contractual services must be conducted in a manner providing for full and open competition. Section 235 requires that all procurement transactions must be conducted through competitive bids or competitive proposals. Likewise, Section 236 (a) requires competition in all purchases of and contracts for supplies, materials, equipment, and contractual services (except as provided for in Section 239(a) (regarding public exigency and emergency procurements)) and includes all sales of obsolete and unusable personal property.
The Formal Solicitation or Advertising process utilizes either an Invitation for Bids (IFB) or Request for Proposals (RFP) depending on the type of procurement. Requests for Qualifications (RFQs) are used to pre-screen proposers to determine qualifications before requesting proposals under Section 239(a) or when the Government is seeking to make multiple awards at a pre-determined price, and the Government is seeking qualified respondents to participate in the solicitation.
Open Market Purchases are items procured without going through the formal bidding process required by Title 31, Chapter 23, Section 236 of the Virgin Islands Code. End users are encouraged to become familiar with the DPP’s Procurement Manual for the contracting procedures using these methods.
There are several types of contracts utilized depending on the type of solicitation. The most commonly used are Supply Contracts, Professional Service Contracts, Task Order Contracts, and Construction Contracts. See the DPP’s Procurement Manual for more detailed information on each contract and the contractual process.
Pursuant to Title 31 of the Virgin Islands Code, Chapter 23, Section 236 (a), when procuring goods and services for executive branch departments, an Invitation for Bids (IFB) is used. Two (2) types of supply contracts can result from this procurement:
(1) a one-time procurement, which means that the Executive Branch Agency needs to buy the item(s) for immediate delivery, and
(2) a term procurement, which means that the Executive Branch Agency will require the goods or services over an extended period.
Examples of the commodities and services procured through a supply contract include but are not limited to:
- Household and Cleaning Supplies
- School and Office Supplies
- Groceries and Meats (for schools, day care centers, elderly homes, etc.)
- Janitorial Services
- Landscaping Services
Professional Services Contracts
A professional services contract is used to contract for services from both for profit and non-profit businesses and individuals, which are engaged in rendering widely diversified services. Professional services contracts are used for services solicited through a Request for Proposals (RFP). These contracts are defined by a Scope of Services as responded to in the RFP and compensated at a fixed fee. Professional services contracts are also used when there is no formal solicitation or advertisement.
Task Order Contracts
Task Order Contracts are utilized when an Executive Branch Agency’s request to procure services cannot be captured by a typical supply contract or professional services contract because the services will not occur at a predetermined or expected frequency. In those instances, the Commissioner of DPP will determine whether a Task Order Contract is necessary based on the information contained in the Executive Branch Agency’s request. Task Order Contracts are generally required for the acquisition of services under Title 31, Virgin Islands Code, Chapter 23, Sections 239(a)(1) (during a declared State of Emergency) and (2) (Public Exigency).
When procuring construction services for the Government of the Virgin Islands, the Department of Public Works (DPW) is the executive branch agency usually at the helm of the project. The DPW is the architect of record and is charged with planning for, constructing, and maintaining the Territory’s public roadways, highways, public transportation systems, storm drainage systems, public buildings, parking facilities, and other public infrastructure. The services procured to enable the DPW to meet its mandates can be procured through any of the acquisition processes and memorialized through construction contracts or professional services contracts.
The Virgin Islands Department of Justice (DOJ) is the executive branch agency, led by the Attorney General, charged with the legal representation and counsel to the executive branch of the Government of the United States Virgin Islands, and all departments, boards, commissions, agencies, and instrumentalities. The DOJ’s Assistant Attorney Generals perform legal sufficiency reviews of all applicable contracts, all emergency, and public exigency procurements, all memoranda of understanding (MOU) and memoranda of agreement (MOA), and any other contractual documents necessary to the acquisition of goods and services for the executive branch of the GVI. All MOUs and MOAs must go through the approval process of DPP review, DOJ legal sufficiency, and approval by the Governor if valued in excess of $1,000,000.00.
For the procurement of goods and services utilizing federal funds whether in whole or in part, Executive Branch Agencies must comply with the requirements in their respective grant awards or the federal program under which the funds were awarded. This includes requirements such as those outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards found in Title 2, Code of Federal Regulations (CFR), Section 200, et. seq. Sometimes referred to as the “Super Circular,” Section 200 et. seq. streamlined and superseded information contained in eight earlier U.S. Office of Management and Budget Super Circulars.
The Virgin Islands (deemed a “state” for applicability under federal processes) is required to follow its own procurement laws in accordance with 2 CFR 200.317. Therefore, Department User Agencies are required to follow the provisions of Title 31, Virgin Islands Code, Chapter 23, and all the associated rules and regulations when procuring goods and services using federal grant awards.
The procurement of Government Travel is enforced under Executive Order No. 439-2008. All Government employees who overnight for work purposes are eligible for a $75 daily per diem.
Inter-island travel accommodations are accepted at the following hotels on St. Thomas - Emerald Beach Resort, Lindbergh Bay Hotel, and Windward Passage Hotel; on St. Croix the hotels include King's Alley Hotel, Caravelle Hotel, Renaissance Carambola, and the Inn on Strand Street on the island of St. Croix. The maximum daily rate for all hotel stays is $250 + taxes.
Each agency may purchase bulk tickets from these commuter airlines as necessary: Seaborne Airlines/Silver Airways, Cape Air/Nantucket Airlines, and Sea Flight.
Out-of-territory travel and related expenses must be pre-approved by the Governor of the U.S. Virgin Islands.
All folios and receipts must be reconciled and turned in with a Travel Expense form against all cash advances, credit cards, or to request a reimbursement.
Why was my requisition rejected when I submitted the invoice and the cost was below $10,000?
The requisition was disapproved because a requisition must be accompanied by a quotation not an invoice.
Why was my requisition rejected when I submitted a quote under $15,000 from an off-island vendor?
All purchases between $10,000.00 to $49,999.99 from an off-island or on-island vendor must include at least three (3) quotations or be justified as a sole source.
What documents should a user agency submit to DPP to request the solicitation of services?
User Agencies must submit a justification letter requesting advertisement along with the funding source and a copy of the Scope of Work/Services.
What is the procedure for adding a new vendor?
The new vendor request should be submitted to DPP and shall include a request to add vendor letter and current W-9 form for individuals. For business entities, a request to add vendor letter, a current W-9 form and all vendor supporting business documentation must be submitted. (A list of vendor required business documents can be found on DPP’s website under the Resources > Forms & Documents>Procurement tab).
How can I get a Purchase Order modified?
User Agencies must submit a request to the Office of the Commissioner of DPP, stating the cause for the modification and the revision(s) needed.
How long is a Purchase Order valid?
POs tied to unexecuted contracts going through the procurement process are valid for 180 days (DOF SOPP #305). If unexpended but required, User Agencies must contact the Department of Finance and request an extension.
What is the process for approving a contract?
Contracts must be submitted to DPP, inclusive of a transmittal letter, all vendor supporting business documentation, and proof of funding source(s).
Where can I find a copy of the Government’s standard contracts and forms?
You can obtain copies of the Government’s contracts and forms on DPP’s website, under the Resources > Forms & Documents> Procurement tab and the Templates Folder in the OPCMR SharePoint©.
What documents are required to support a vendor’s contract?
DPP’s website provides a list of vendor types and the vendor documents necessary for contracting. This checklist can be found under the Resources > Forms & Documents> Procurement tab.
Who is required to be registered with SAM.gov?
All entities doing business with the Government of the U.S. Virgin Islands must have a current SAM.gov registration.
When should I use an MOU versus an MOA?
A Memorandum of Understanding (MOU) is used when there is no exchange of funds between the parties for the performance of tasks. A Memorandum of Agreement (MOA) is used when funds or in-kind services are being exchanged.
How long must a request for advertising services be posted?
The Government’s solicitations are typically posted for a minimum of 30 days (with some exceptions to the rule).