ST. THOMAS, VI—The Committee on Government Operations, Veterans Affairs, and Consumer Protection, chaired by Senator Avery L. Lewis, met in the Earle B. Ottley Legislative Hall. The Lawmakers received an update from the Department of Property and Procurement about contractual agreements, vendor payments, and the GVI Buy Software. Additionally, the Department of Licensing and Consumer Affairs updated the Committee on programs that prevent fraudulent, deceptive, and unfair business practices and information to help consumers spot, stop, and avoid scams and fraud. Key points included a fuel price survey, frequency of grocery price analyses, and the status of capital projects.
Lisa Alejandro, Department of Property and Procurement Commissioner, delivered testimony. The Department’s Business and Commercial Unit manages all properties leased to the government, currently totaling 190 tenants, with an annual rent of $3,995,817.00. This unit is responsible for submerged, filled, and agricultural land leases managed by the Department of Planning and Natural Resources and the Department of Agriculture. The Space Management Unit is responsible for 160 leases on behalf of executive branch agencies for commercial offices, storage, parking, and telecommunication spaces. It also manages space assignment and occupancy agreements, in which executive branch agencies use GVI-owned spaces.
DPP currently has 8 lease agreements pending and three ratified lease agreements that have been submitted to the Department of Justice for further review and processing by the Legislature.
Repairs have recently been done at the Department’s St. Croix Office, while bids are being considered to perform interior work, including mold remediation. The St. Croix Modular Office has an HVAC deficiency. A contractor has been identified to fix the problem. There are currently four disaster recovery projects in which damage costs are being updated. These include the main building, transportation building Warehouse on St. Thomas, and the Former Hovensa Vocational Building on St. Croix. The highest priority has been given to the St. Thomas Main Building and Transportation Building.
During Fiscal Year 2024, the Department executed a total of 407 contracts, which totaled $1,013,082,079.87. Of these contracts, 30 were disaster recovery projects totaling $482,915,034.73. To date, in Fiscal Year 2025, 40 solicitations were processed. Of these solicitations, 4 are disaster recovery projects. The Department has also executed 96 contracts totaling $38,714,918.95 worth of goods and services. Four of these projects are disaster recovery projects, totaling $2,097,960.00. GVIBUY, the eProcurement system, is in live production. It facilitates the requisitioning, soliciting, drafting, and executing of contracts. However, errors must still be rectified before a check can be released. The Department plans to source an electronic platform where vehicle auctions can be conducted, saving the department about $25,000 annually.
Chair Avery Lewis inquired about the GVIBUY system. Commissioner Alejandro informed Chair Lewis that it is an e-procurement system encompassing the whole gamut of a live procurement system. Alejandro stated that most systems are functional but did state that there was an issue with issuing checks, which is currently being addressed. Lewis also called for stricter policies on the use of government vehicles after hours. “The misuse of government property is out of control, and I urge the Governor to take executive action.” Alejandro also stated that approximately $4 million was spent on vehicle gas. Ladee Shanna Martin, CFO of the Department of Property and Procurement, noted that over $300,000 was still owed in outstanding vendor payments since October 2024.
Additionally, Myrna George, Deputy Commissioner of the Virgin Islands Department of Licensing and Consumer Affairs delivered testimony. George stated that approximately 320 citizen complaints had been resolved or forwarded to the appropriate agency in the territory. Senator Lewis inquired about a Better Business Bureau type of platform to encourage transparency in the consumer reporting process and contractor/business fraud investigations, of which he has submitted legislation. When probed, Senator Lewis stated, “We need a mechanism that will promote better service to our residents and visitors, and likewise, encourage increased value to the services provided to the public.”
The Department diligently enforces various laws, including the Consumer Protection Law, which sets guidelines to ensure businesses operate with transparency and integrity. The Price Control Act prevents price gouging during emergencies. The Monitoring for Unfair Business Practices Act prohibits deceptive marketing tactics and hidden fees that businesses may use to take advantage of customers. The Truth In Pricing Law mandates that businesses provide transparent pricing and uphold their advertised promotions. These efforts are aimed at ensuring fair business practices and protecting consumer rights.
The Department ensures that all businesses within the territory adhere to all licensing and regulatory requirements, such as adequately calibrating weights and measures. George reiterated in testimony that while the Department does enforce consumer protection laws, it is limited to regulatory enforcement related to business compliance and fair trade practices. The Department’s authority includes addressing consumer complaints related to the mispricing of items, business malpractice, and regulatory violations. However, it does not extend to prosecuting criminal offenses such as fraud. The Division of Consumer Protection does not conduct investigations or provide advisement in fraud cases, and complaints or reports concerning fraud fall outside the Department’s jurisdiction. In these cases, complainants are directed to the appropriate authorities, which include the Federal Trade Commission, and the White Collar Crimes Unit of the Virgin Islands Police Department.
Chair Lewis voiced concern over the price of gas in the territory. Matthew Padgett, Director of Consumer Affairs, stated that when it came to the price, the Department had no control over the price that the gas retailer would set, saying that it had no authority to tell gas stations what to charge.
The Department provides a “Shopping Basket” that reflects the current prices of goods at any time. While it does not conduct a Market Basket Survey intended for long-term analysis, the Department’s transparency in providing price information keeps the public informed about the cost of living in the territory. Items in the Shopping Basket are regularly rotated, and data collected does not allow for direct price comparison of different periods. The Bureau of Economic Research is the agency responsible for compiling the Consumer Price Index or a formal Market Basket Survey. A Food, Fuel, and Housing Study began in the territory in April 2017, but the initial report lacked thoroughness due to data unavailability. Funding has been secured to resume the study. The performance period will begin on December 31, 2024, and end on December 31, 2026. George also reminded lawmakers that the Department is expected to upgrade its infrastructure, such as modernizing its office spaces and redesigning its website to streamline services.
Senators present at today’s Committee hearing were Avery L. Lewis, Novelle E. Francis, Jr., Ray Fonseca, Alma Francis Heyliger, Kenneth L. Gittens, Franklin D. Johnson, and Carla J. Joseph. Non-committee members present were Angel L. Bolques, Jr., Clifford Joseph, Marvin Blyden, Kurt A. Vialet, and Hubert Frederick.
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