Washington Governor Bob Ferguson announced he has selected the $714.5-million bid from Florida-based Eastern Shipbuilding Group to build three new 160-vehicle hybrid-electric ferries. Washington State Ferries (WSF) will move forward with the contracting process, following the first competitive bid for ferry construction in more than 25 years.

The contract award comes after a comprehensive year-long process of advertising, pre-qualifying shipyards, and answering shipyard requests for clarification. Two shipyards submitted bids. Eastern’s bid was 6% lower than WSF’s own engineer’s estimate, and significantly lower than the other bidder.

The shipyard bid is only part of the new build process. There is an additional approximately $150 million for the first vessel for owner-furnished equipment, construction management, WSF crew training, and risk contingencies. This brings the cost of the first vessel to approximately $405 million, the second to $360 million, and the third to $325 million, as contingency risk decreases with lessons learned from each previous construction.

WSF, a division of the Washington State Department of Transportation, is the largest ferry system in the US.