Nichols Bros. asks governor to split ferry contract

CEO Gavin Higgins sent a letter urging that the companies each build two of the ferries.

Whidbey-based Nichols Brothers Boat Builders wants to split a state contract to build new hybrid-electric ferries with an out-of-state competitor.

On Wednesday, Nichols CEO Gavin Higgins sent a letter to Gov. Bob Ferguson that urges a “best case scenario” in which the two companies that bid on the project each build two of the ferries.

State officials were surprised that only Nichols Brothers and Eastern Shipbuilding Group from Panama City, Florida, offered bids, which were opened Monday. At an estimated $338.6 million for one boat, Nichols’ bid came in well above the state’s estimate of $256.8 million. Eastern estimated the cost at $251.3 million.

Higgins suggested the idea of splitting the contract in an email to the South Whidbey Record on Tuesday.

Higgins pointed out that Nichols Brothers must meet all State Ferries’ contractual obligations, including paying prevailing wages, offering apprenticeships and working with small and veteran-owned businesses; these are conditions that companies outside of the state don’t have to follow. In addition, the shipbuilder must meet all the state’s other criteria, including environmental, health and safety rules.

Nichols Brothers has said that entering into two contracts “allows the state to reduce the risk of catastrophic delays due to hurricane weather events in Florida that have halted construction progress on occasion.”

The new ferries will be able to run on either diesel or electricity and will be able to carry 1,500 passengers and 164 vehicles. The route between Clinton and Mukilteo will be served by a new boat, with the dock on the Clinton side being retrofitted for electrical charging.

In his letter to the governor, Higgins argued that the state could speed up the process of building the boats by awarding contracts to both companies and still remain within the state budget of $1.27 billion for up to five boats. In addition, building ferries here would be a boon to the local economy. He estimated that construction of just one boat would “bring over 1.2 million hours of work into the local industry.”

Higgins envisioned that the contract could be “a watershed moment to help develop shipbuilding and the shipbuilders” in the state and would create “a path for future ferry construction.”

A spokesperson for State Ferries said price is only one factor, and no assumptions should be made about awarding the contract. The agency hopes to award the contract in a week or two.