Once again Washington wins to push more business to other states because Washington's legislators seem to think micro-governance is the healthy way forward for the people of Washington. I'm sure the red state of Florida embraces our backwards thinking.
Washington State commissioned Eastern Shipbuilding Group, a Florida-based shipyard, to build new hybrid-electric ferries. This marks the first time in over 50 years that Washington's ferries will be constructed out of state. The primary reasons behind this decision are outlined below.
The Florida company offered a significantly lower bid for building the ferries compared to the only competing bidder, Nichols Brothers Boat Builders of Whidbey Island, Washington. Eastern Shipbuilding’s total bid for three ferries was around $714.5 million, which was about 6% below the state's own engineer’s estimate and substantially less than the over $1 billion total bid from the in-state company.
Historically, state law required ferries to be built within Washington, supporting local jobs and economic benefits. However, this requirement was dropped due to urgent needs to replace aging vessels and failed negotiations with previous contractors, notably Vigor Shipyards.
The removal of the “Build in Washington” restriction allowed the state to open bidding to other U.S. shipyards. The decision sparked disappointment among local shipbuilders and advocates who argued that keeping contracts in-state would have generated more jobs and local economic activity. Some lawmakers note that while outsourcing saves money upfront, it may reduce in-state job creation and local economic multipliers.
The bidding process provided a 13% cost credit for Washington-based builders to account for their higher labor standards and stricter environmental regulations. Even with this credit, the local company's bid was still deemed too high relative to Eastern's offer. Thanks again Washington legislatures.
