(a) For the purposes of this section “preferred bidder” means (1) a person who has been a bona fide continuous resident of the Virgin Islands for at least 8 years or was born in the Virgin Islands; or (2) a firm, partnership or corporation in which at least fifty-one (51%) percent of the legal or equitable ownership is held by a person or persons who have been bona fide continuous residents of the Virgin Islands for at least 8 years or who were born in the Virgin Islands; and (3) said person, firm, partnership or corporation is licensed in and maintains his or its principal place of business in the Virgin Islands and who owns, operates, or maintains a store, warehouse, or other place of business in the Virgin Islands or is the duly authorized agent, dealer, distributor or representative in the Virgin Islands for the materials, supplies, articles, or equipment or contractual or consulting services of the general character described by the specifications and required under this contract. In addition, a preferred bidder with respect to locally available agricultural products or bottled water shall utilize only locally produced agricultural products and bottled water in meeting the requirements of any bid awarded to him for such products. For the purposes of this section, “locally available agricultural products” includes any agricultural product grown or produced in the Virgin Islands which the Commissioner of Economic Development and Agriculture certifies to be available in sufficient quantities to meet the terms of the bid specifications.
(b) The Commissioner of Property and Procurement and procurement officer of all Virgin Islands government entities, including but not limited to, authorities, agencies or semi-autonomous instrumentalities shall purchase or contract for construction services, supplies, materials, equipment, and contractual or consulting services from suppliers in the United States Virgin Islands who are preferred bidders where—
(1) the total cost thereof to the Government does not exceed by more than fifteen (15%) percent the cost of such construction services, supplies, materials, equipment, or contractual or consulting services if obtained from other than a preferred bidder; and
(2) the quality and availability of the construction services, supplies, materials, equipment, or contractual or consulting services are substantially equivalent.
(c) Bids submitted by preferred bidders shall not be required to be accompanied by surety or bid bond if the bid is $50,000 or less. Bid bonds or surety may be required of preferred bidders in bids in excess of $50,000 not in excess of the following amounts:
(1) Not to exceed two (2%) percent of the bid on bids in excess of $50,000, but not over $300,000;
(2) Not to exceed four (4%) percent of the bid on bids in excess of $300,000, but not over $500,000; and
(3) Not to exceed five (5%) percent of the bid on bids in excess of $500,000.
(d) A bond or surety for the proper performance of a contract awarded a preferred bidder shall not exceed 25% of the contract price.
(e) Notwithstanding the foregoing provision of this section the Commissioner of Property and Procurement and procurement officer of all Virgin Islands government entities, including but not limited to, authorities, agencies or semi-autonomous instrumentalities may accept forms of surety from preferred bidders other than bid bonds or performance bonds, including one of the following means of guarantee:
(1) a performance and payment bond in the amount of 100% of the amount mandated by subsections (c) and (d);
(2) a separate performance and payment bond, each in the amount of 50% of the amount mandated by subsections (c) and (d);
(3) a 20% cash escrow of the amount mandated by subsections (c) and (d); and
(4) an irrevocable letter of credit for 10% of the total contract price provided it is subject to a monitoring and disbursement agreement with the government.
(f) Any person, firm, partnership or corporation meeting the requirements of subsection (a) of this section may request that his or its name be added to a preferred bidders' list to be maintained by the Commissioner.