Gov’t to raise procurement threshold from $10K to $25K

Communications and Works Minister Kye Rymer said the government has decided to increase the procurement threshold from $10,000 to $25,000.

The adjustment seeks to improve efficiency in completing smaller projects while addressing long-standing issues within the territory.

“We are aware our procurement act is not all that friendly for us to be able to be responsive. Well, as a government that understands and would be able to manoeuvre through these situations, I want to announce, I don’t think the Premier announced it, just last week in Cabinet, we were able to change the threshold for the procurement,” Rymer revealed. “So within any job that used to be where you do a restricted tender under $10,000, it’s now moved to $25,000.”

Rymer also highlighted that the government moved the threshold for major contracts from $100,000 to $250,000. “Where a major contract was over $100,000, this government thought it necessary to change it to where a major contract is now $250,000,” he explained. “So now we’ll be able to reap the benefits of the seed that we’ve been planting, and with the changing of a major contract to $250,000, we would be able to get more done within this territory.”

The decision is part of the government’s efforts to enhance infrastructure and service delivery in the territory. The new measures follow closely on the heels of the announcement of the largest budget in BVI history, which seeks to address critical issues like water infrastructure, roadworks, and sewerage management.

Rymer emphasised the importance of this change in facilitating essential projects, particularly in sectors where delayed procurement processes have caused setbacks.
“We have a plan, and it’s always been a topic of conversation, but I think it’s at its boiling point right now. And whatever needs to be done will be done,” Rymer stated. He noted that the government will make announcements shortly regarding their efforts to address water challenges.

The changes follow the Commission of Inquiry (COI) report issued two years ago, which criticised the government’s previous procurement practices. The COI found that no public tendering was conducted in roughly two-thirds of government contracts issued between January 2019 and May 2021, raising concerns about transparency and value for money.

In response to the COI’s findings, the government has enhanced procurement legislation to ensure greater transparency and accountability. However, some officials noted that the new procurement processes can be cumbersome, potentially slowing down the execution of vital projects.