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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Friday, March 28, 2008 Keystone ferry contract gets just one bid The proposal for a boat for the Keystone run is $9 million more than expected. By Jerry Cornfield, Herald Writer SEATTLE -- The state's effort to build a new 50-car ferry for the Keystone-to-Port Townsend route hit rough waters Thursday when only one shipbuilder submitted a bid for the contract. And that bid came in $9 million higher than anticipated. Todd Pacific Shipyards of Seattle proposed a price of $25,985,125 to build a boat using the basic design of the leased Steilacoom II-class vessel now in use on the route. Washington State Ferries engineers estimated the cost of constructing the new craft to be $16.8 million. "We're disappointed the bid came in higher than our estimate," said Lloyd Brown, spokesman for the state Transportation Department. "We really don't know what this means until we have time to go through and analyze more specifically what is in the bid and what are the reasons for the discrepancy," he said. Todd's chief executive officer tried Thursday to provide answers in a three-page letter delivered to the ferry system's new chief, David Moseley. Todd Chief Executive Stephen Welch wrote in detail of differences between the original concept of constructing a boat that "essentially looks like" the loaned ferry from Pierce County and the contract requirements for the new boat. He cited physical changes requested by the state, including adding a double bottom to fuel tanks, crew quarters, complying with newer safety and construction standards and paying higher costs of materials and labor. "While each individual change may seem inconsequential, the sum of these changes has resulted in a vessel procurement that is not the Pierce County ferry," he wrote. Welch said the bid "will result in a significantly different and improved, but more costly, ferry." Nichols Brothers of Whidbey Island built the Pierce County ferry in 2005 for $12.5 million. Everett Shipyard at the time was the second low bidder at $13 million. Nichols didn't compete this time and Everett was bought earlier this year by Todd, the state's largest shipbuilder. No firms other than Todd and Everett requested documents to submit a bid. At this point, the state's options are limited. This is a "design-bid-build" contract, which the transportation department uses to move projects from start to finish faster. Brown explained that rules for these contracts allow the state to either accept Todd's offer and proceed or reject it and restart the procurement process. Trying to negotiate a lower price is not permitted, he said. Gov. Chris Gregoire and Transportation Secretary Paula Hammond will be hard-pressed to undertake another round of bids. The two are pressing to get this boat built and in service by May 2009, when the lease with Pierce County for use of its ferry expires. The 50-car ferry is one of three vessels the state plans to build to replace the Steel Electric-class car ferries yanked from service last November. This summer bids will be sought for the other two boats, both of which are to be of the larger-sized Island Home class. The state budget contains $85 million for all three boats. If it is not enough, state lawmakers will be forced to come up with the additional dollars in the next transportation budget.

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