Senate votes for better approach to traditional ferry bid process

OLYMPIA – When it comes to building ferries, lawmakers have discovered a perplexing problem: Low-bid contracting doesn’t necessarily produce low-cost ferries. Numerous other factors, from a contractor’s capacity and efficiency to the location and quality of shipyard facilities, can result in ferries that cost more while delivering less.

Legislation passed Saturday by the Senate would change that by factoring a wide range of vital factors into the contracting formula.

“Lowest-bid contracting sounds nice, but it’s no guarantee of the lowest cost product when you factor in the real world,” said Sen. Mary Margaret Haugen, D-Camano Island, chair of the Senate Transportation Committee and sponsor of Senate Bill 6853. “This new formula is more realistic and should give us ferries that actually meet our criteria.”

Under the proposed “best and final” bid formula, factors to be considered in addition to cost include:

• ability, capacity and skill of the contractor’s project team and other key personnel;
• integrity, reputation, experience and efficiency of the contractor;
• design capability;
• build strategy;
• location and quality of shipyard facilities;
• recent, current and projected workload;
• experience and quality based on previous contracts; and
• other criteria considered appropriate for a specific contract.

“The current system is vulnerable to being penny wise and pound foolish,” Haugen said. “The ‘best and final’ formula will give us the ferries that meet our needs, at the best price.”

The bill passed the Senate on a 32-9 vote and awaits consideration in the House of Representatives.

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