Diesel vessels/state ferries

AN ACT Relating to addressing diesel vessel procurement at the 1
Washington state ferries; amending RCW 47.56.030, 47.60.010, 2
47.60.810, 47.60.826, and 47.56.030; adding a new section to chapter 3
47.60 RCW; and declaring an emergency. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 47.60 6
RCW to read as follows: 7
(1) The department shall contract for the acquisition of clean 8
diesel ferry vessels to replace the current Issaquah class. The 9
department may use a multiple contract procurement approach to 10
potentially accelerate vessel delivery. 11
(2)(a) The contract or contracts must be for a minimum of two 12
vessels and are exempt from the requirements set forth in RCW 13
47.60.810 through 47.60.824. 14
(b) The contract or contracts may employ the following 15
procurement methods: 16
(i) Design-build procedure as authorized under chapter 39.10 RCW;17
(ii) Design-bid-build as authorized under chapter 39.04 RCW or an 18
equivalent process allowed in statute as determined by the 19
department; or 20
S-1265.1
SENATE BILL 5710
State of Washington 69th Legislature 2025 Regular Session
By Senators MacEwen and Dozier
Read first time 02/10/25. Referred to Committee on Transportation.
p. 1 SB 5710
(iii) Lease with an option to buy in accordance with RCW 1
47.60.010. The terms of any plan to pursue a lease with an option to 2
buy agreement must be approved by the governor and appropriate 3
committees of the legislature and are subject to the availability of 4
amounts appropriated for this specific purpose. 5
(c) The department must award a credit of 13 percent of the bid 6
price for bid proposals for vessels constructed in the state of 7
Washington, which must be adjusted to reflect the proportion of the 8
construction of the vessels that occurs within the state. This credit 9
represents the: 10
(i) Amount of economic and revenue loss to the state of 11
Washington from constructing vessels outside the state of Washington, 12
as indicated by the Washington institute for public policy study 13
regarding Washington state ferry vessel procurement dated December 14
2016; and 15
(ii) Additional costs of transport, potential delay, and owner 16
oversight incurred for construction at shipyards located outside the 17
state of Washington. 18
(d) The department may not limit the means of transportation 19
utilized for the delivery voyage of any vessel acquired pursuant to 20
this act. 21
(3) The department may postpone the conversion of the second and 22
third jumbo mark II vessel to hybrid electric vessels until the first 23
conversion is complete and has been proven to be effective so as not 24
to exacerbate service problems. 25
Sec. 2. RCW 47.56.030 and 2023 c 429 s 6 are each amended to 26
read as follows: 27
(1) Except as permitted under chapter 47.29 or 47.46 RCW:28
(a) Unless otherwise delegated, and subject to RCW 47.56.820, the 29
department of transportation shall have full charge of the planning, 30
analysis, and construction of all toll bridges and other toll 31
facilities including the Washington state ferries, and the operation 32
and maintenance thereof. 33
(b) The transportation commission shall determine and establish 34
the tolls and charges thereon. 35
(c) Unless otherwise delegated, and subject to RCW 47.56.820, the 36
department shall have full charge of planning, analysis, and design 37
of all toll facilities. The department may conduct the planning, 38
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analysis, and design of toll facilities as necessary to support the 1
legislature's consideration of toll authorization. 2
(d) The department shall utilize and administer toll collection 3
systems that are simple, unified, and interoperable. To the extent 4
practicable, the department shall avoid the use of toll booths. The 5
department shall set the statewide standards and protocols for all 6
toll facilities within the state, including those authorized by local 7
authorities. 8
(e) Except as provided in this section, the department shall 9
proceed with the construction of such toll bridges and other 10
facilities and the approaches thereto by contract in the manner of 11
state highway construction immediately upon there being made 12
available funds for such work and shall prosecute such work to 13
completion as rapidly as practicable. The department is authorized to 14
negotiate contracts for any amount without bid under (e)(i) and (ii) 15
of this subsection: 16
(i) Emergency contracts, in order to make repairs to ferries or 17
ferry terminal facilities or removal of such facilities whenever 18
continued use of ferries or ferry terminal facilities constitutes a 19
real or immediate danger to the traveling public or precludes prudent 20
use of such ferries or facilities; and 21
(ii) Single source contracts for vessel dry dockings, when there 22
is clearly and legitimately only one available bidder to conduct dry 23
dock-related work for a specific class or classes of vessels. The 24
contracts may be entered into for a single vessel dry docking or for 25
multiple vessel dry dockings for a period not to exceed two years.26
(f) Any new vessel planning, construction, purchase, analysis, or 27
design work must be consistent with RCW 47.60.810, except as 28
otherwise provided in RCW 47.60.826 and section 1 of this act.29
(2) The department shall proceed with the procurement of 30
materials, supplies, services, and equipment needed for the support, 31
maintenance, and use of a ferry, ferry terminal, or other facility 32
operated by Washington state ferries, in accordance with chapter 33
43.19 RCW except as follows: 34
(a) When the secretary of the department of transportation 35
determines in writing that the use of invitation for bid is either 36
not practicable or not advantageous to the state and it may be 37
necessary to make competitive evaluations, including technical or 38
performance evaluations among acceptable proposals to complete the 39
contract award, a contract may be entered into by use of a 40
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competitive sealed proposals method, and a formal request for 1
proposals solicitation. Such formal request for proposals 2
solicitation shall include a functional description of the needs and 3
requirements of the state and the significant factors.4
(b) When purchases are made through a formal request for 5
proposals solicitation the contract shall be awarded to the 6
responsible proposer whose competitive sealed proposal is determined 7
in writing to be the most advantageous to the state taking into 8
consideration price and other evaluation factors set forth in the 9
request for proposals. No significant factors may be used in 10
evaluating a proposal that are not specified in the request for 11
proposals. Factors that may be considered in evaluating proposals 12
include but are not limited to: Price; maintainability; reliability; 13
commonality; performance levels; life-cycle cost if applicable under 14
this section; cost of transportation or delivery; delivery schedule 15
offered; installation cost; cost of spare parts; availability of 16
parts and service offered; and the following: 17
(i) The ability, capacity, and skill of the proposer to perform 18
the contract or provide the service required; 19
(ii) The character, integrity, reputation, judgment, experience, 20
and efficiency of the proposer; 21
(iii) Whether the proposer can perform the contract within the 22
time specified; 23
(iv) The quality of performance of previous contracts or 24
services; 25
(v) The previous and existing compliance by the proposer with 26
laws relating to the contract or services; 27
(vi) Objective, measurable criteria defined in the request for 28
proposal. These criteria may include but are not limited to items 29
such as discounts, delivery costs, maintenance services costs, 30
installation costs, and transportation costs; and 31
(vii) Such other information as may be secured having a bearing 32
on the decision to award the contract. 33
(c) When purchases are made through a request for proposal 34
process, proposals received shall be evaluated based on the 35
evaluation factors set forth in the request for proposal. When 36
issuing a request for proposal for the procurement of propulsion 37
equipment or systems that include an engine, the request for proposal 38
must specify the use of a life-cycle cost analysis that includes an 39
evaluation of fuel efficiency. When a life-cycle cost analysis is 40
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used, the life-cycle cost of a proposal shall be given at least the 1
same relative importance as the initial price element specified in 2
the request of proposal documents. The department may reject any and 3
all proposals received. If the proposals are not rejected, the award 4
shall be made to the proposer whose proposal is most advantageous to 5
the department, considering price and the other evaluation factors 6
set forth in the request for proposal. 7
Sec. 3. RCW 47.60.010 and 2023 c 429 s 5 are each amended to 8
read as follows: 9
The department is authorized to acquire by lease, charter, 10
contract, purchase, condemnation, or construction, and partly by any 11
or all of such means, and to thereafter operate, improve, and extend, 12
a system of ferries on and crossing Puget Sound and any of its 13
tributary waters and connections thereof, and connecting with the 14
public streets and highways in the state. However, any new vessel 15
planning, construction, purchase, analysis, or design work must be 16
consistent with RCW 47.60.810, except as otherwise provided in RCW 17
47.60.826 and section 1 of this act . The system of ferries shall 18
include such boats, vessels, wharves, docks, approaches, landings, 19
franchises, licenses, and appurtenances as shall be determined by the 20
department to be necessary or desirable for efficient operation of 21
the ferry system and best serve the public. Subject to RCW 47.56.820, 22
the department may in like manner acquire by purchase, condemnation, 23
or construction and include in the ferry system such toll bridges, 24
approaches, and connecting roadways as may be deemed by the 25
department advantageous in channeling traffic to points served by the 26
ferry system. In addition to the powers of acquisition granted by 27
this section, the department is empowered to enter into any 28
contracts, agreements, or leases with any person, firm, or 29
corporation and to thereby provide, on such terms and conditions as 30
it shall determine, for the operation of any ferry or ferries or 31
system thereof, whether acquired by the department or not.32
The authority of the department to sell and lease back any state 33
ferry, for federal tax purposes only, as authorized by 26 U.S.C., 34
Sec. 168 (f)(8) is confirmed. Legal title and all incidents of legal 35
title to any ferry sold and leased back (except for the federal tax 36
benefits attributable to the ownership thereof) shall remain in the 37
state of Washington. 38
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Sec. 4. RCW 47.60.810 and 2023 c 429 s 3 are each amended to 1
read as follows: 2
(1) Except as otherwise provided in RCW 47.60.826 and section 1 3
of this act , the department shall use a modified request for 4
proposals process when purchasing new auto ferries, except for new 5
144-auto ferries purchased through an option on a contract executed 6
before July 6, 2015, whereby the prevailing shipbuilder and the 7
department engage in a design and build partnership for the design 8
and construction of the auto ferries. The process consists of the 9
three phases described in subsection (3) of this section.10
(2) Throughout the three phases described in subsection (3) of 11
this section, the department shall employ an independent owner's 12
representative to serve as a third-party intermediary between the 13
department and the proposers, and subsequently the successful 14
proposer. However, this representative shall serve only during the 15
development and construction of the first vessel constructed as part 16
of a new class of vessels developed after July 6, 2015. The 17
independent owner's representative shall: 18
(a) Serve as the department's primary advocate and communicator 19
with the proposers and successful proposer; 20
(b) Perform project quality oversight; 21
(c) Manage any change order requests; 22
(d) Ensure that the contract is adhered to and the department's 23
best interests are considered in all decisions; and24
(e) Possess knowledge of and experience with inland waterways, 25
Puget Sound vessel operations, the propulsion system of the new 26
vessels, and Washington state ferries operations. 27
(3) The definitions in this subsection apply throughout RCW 28
47.60.812 through 47.60.822. 29
(a) "Phase one" means the evaluation and selection of proposers 30
to participate in development of technical proposals in phase two.31
(b) "Phase two" means the preparation of technical proposals by 32
the selected proposers in consultation with the department.33
(c) "Phase three" means the submittal and evaluation of bids, the 34
award of the contract to the successful proposer, and the design and 35
construction of the auto ferries. 36
(4) The department may modify an existing option contract 37
executed prior to July 6, 2015, to allow for the purchase of up to 38
five additional 144-auto ferries, for a total of nine 144-auto 39
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ferries. The department must execute a new modification to an 1
existing option contract for each of the additional five ferries.2
Sec. 5. RCW 47.60.826 and 2023 c 429 s 2 are each amended to 3
read as follows: 4
(1)(a) ((The)) Except as provided in section 1 of this act, the 5
department shall contract for the acquisition of up to five new 6
hybrid diesel-electric ferry vessels that can carry up to 144 7
vehicles, using a one or two contract procurement approach to 8
potentially accelerate vessel delivery. 9
(b) The Washington state ferries shall make available the design 10
for the 144 vehicle hybrid electric Olympic class vessel to potential 11
bidders. Incentives may be awarded by the department to bidders who 12
offer design modifications that: 13
(i) Lower the minimum number of crew needed to staff the vessel 14
in accordance with United States coast guard requirements;15
(ii) Incorporate materials, technologies, or other features that 16
lower life-cycle maintenance and operations costs;17
(iii) Accelerate the proposed delivery schedule; or18
(iv) Make other improvements determined to be beneficial by the 19
department. The Washington state ferries may allow for exceptions of 20
the 144 vehicle capacity of the vessel design in cases where 21
efficiencies outlined in (b)(i) or (ii) of this subsection are met.22
(2)(a) The contract or contracts must be for a minimum of two 23
vessels, with options for up to five vessels in total, and are exempt 24
from the requirements set forth in RCW 47.60.810 through 47.60.824.25
(b) The contract or contracts may employ the following 26
procurement methods: 27
(i) Design-build procedure as authorized under chapter 39.10 RCW;28
(ii) Design-bid-build as authorized under chapter 39.04 RCW or an 29
equivalent process allowed in statute as determined by the 30
department; or 31
(iii) Lease with an option to buy in accordance with RCW 32
47.60.010. The terms of any plan to pursue a lease with an option to 33
buy agreement must be approved by the governor and appropriate 34
committees of the legislature and are subject to the availability of 35
amounts appropriated for this specific purpose. 36
(c) To the extent possible, the department shall establish and 37
apply evaluation criteria beyond low price to meet best value 38
objectives. 39
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(d) The department must award a credit of 13 percent of the bid 1
price for bid proposals for vessels constructed in the state of 2
Washington, which must be adjusted to reflect the proportion of the 3
construction of the vessels that occurs within the state. This credit 4
represents the: 5
(i) Amount of economic and revenue loss to the state of 6
Washington from constructing vessels outside the state of Washington, 7
as indicated by the Washington institute for public policy study 8
regarding Washington state ferry vessel procurement dated December 9
2016; and 10
(ii) Additional costs of transport, potential delay, and owner 11
oversight incurred for construction at shipyards located outside the 12
state of Washington. 13
(e) The department must require that contractors meet the 14
requirements of RCW 39.04.320 regarding apprenticeships or other 15
state law or federal law equivalents, where such equivalents exist.16
(f) The department must require that contractors meet the 17
requirements of chapter 90.48 RCW regarding water pollution control 18
or other state law or federal law equivalents, where such equivalents 19
exist. 20
(3) For contracts eligible for the use of federal funds, 21
contractors must comply with federal disadvantaged business 22
enterprise targets as outlined by the federal agency awarding funds.23
(4) Contractors located in the state of Washington must meet the 24
requirements of RCW 47.60.835, the small business enterprise 25
enforceable goals program. 26
(5) The department shall employ third-party experts that report 27
to the Washington state ferries to serve as a supplementary resource. 28
The third-party experts contracted by the Washington state ferries 29
shall: 30
(a) Perform project quality oversight and report to the 31
transportation committees of the legislature and the office of 32
financial management on a semiannual basis on project schedule, 33
risks, and project budget; 34
(b) Assist with the management of change order requests;35
(c) Advise on contract and technical matters; and36
(d) Possess knowledge of and experience with inland waterways, 37
Puget Sound vessel operations, the propulsion system of the new 38
vessels, and Washington state ferries operations. 39
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Sec. 6. RCW 47.56.030 and 2023 c 429 s 6 are each amended to 1
read as follows: 2
(1) Except as permitted under chapter 47.29 or 47.46 RCW:3
(a) Unless otherwise delegated, and subject to RCW 47.56.820, the 4
department of transportation shall have full charge of the planning, 5
analysis, and construction of all toll bridges and other toll 6
facilities including the Washington state ferries, and the operation 7
and maintenance thereof. 8
(b) The transportation commission shall determine and establish 9
the tolls and charges thereon. 10
(c) Unless otherwise delegated, and subject to RCW 47.56.820, the 11
department shall have full charge of planning, analysis, and design 12
of all toll facilities. The department may conduct the planning, 13
analysis, and design of toll facilities as necessary to support the 14
legislature's consideration of toll authorization.15
(d) The department shall utilize and administer toll collection 16
systems that are simple, unified, and interoperable. To the extent 17
practicable, the department shall avoid the use of toll booths. The 18
department shall set the statewide standards and protocols for all 19
toll facilities within the state, including those authorized by local 20
authorities. 21
(e) Except as provided in this section, the department shall 22
proceed with the construction of such toll bridges and other 23
facilities and the approaches thereto by contract in the manner of 24
state highway construction immediately upon there being made 25
available funds for such work and shall prosecute such work to 26
completion as rapidly as practicable. The department is authorized to 27
negotiate contracts for any amount without bid under (e)(i) and (ii) 28
of this subsection: 29
(i) Emergency contracts, in order to make repairs to ferries or 30
ferry terminal facilities or removal of such facilities whenever 31
continued use of ferries or ferry terminal facilities constitutes a 32
real or immediate danger to the traveling public or precludes prudent 33
use of such ferries or facilities; and 34
(ii) Single source contracts for vessel dry dockings, when there 35
is clearly and legitimately only one available bidder to conduct dry 36
dock-related work for a specific class or classes of vessels. The 37
contracts may be entered into for a single vessel dry docking or for 38
multiple vessel dry dockings for a period not to exceed two years.39
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(f) Any new vessel planning, construction, purchase, analysis, or 1
design work must be consistent with RCW 47.60.810, except as 2
otherwise provided in RCW 47.60.826 and section 1 of this act.3
(2) The department shall proceed with the procurement of 4
materials, supplies, services, and equipment needed for the support, 5
maintenance, and use of a ferry, ferry terminal, or other facility 6
operated by Washington state ferries, in accordance with chapter 7
43.19 RCW except as follows: 8
(a) When the secretary of the department of transportation 9
determines in writing that the use of invitation for bid is either 10
not practicable or not advantageous to the state and it may be 11
necessary to make competitive evaluations, including technical or 12
performance evaluations among acceptable proposals to complete the 13
contract award, a contract may be entered into by use of a 14
competitive sealed proposals method, and a formal request for 15
proposals solicitation. Such formal request for proposals 16
solicitation shall include a functional description of the needs and 17
requirements of the state and the significant factors.18
(b) When purchases are made through a formal request for 19
proposals solicitation the contract shall be awarded to the 20
responsible proposer whose competitive sealed proposal is determined 21
in writing to be the most advantageous to the state taking into 22
consideration price and other evaluation factors set forth in the 23
request for proposals. No significant factors may be used in 24
evaluating a proposal that are not specified in the request for 25
proposals. Factors that may be considered in evaluating proposals 26
include but are not limited to: Price; maintainability; reliability; 27
commonality; performance levels; life-cycle cost if applicable under 28
this section; cost of transportation or delivery; delivery schedule 29
offered; installation cost; cost of spare parts; availability of 30
parts and service offered; and the following: 31
(i) The ability, capacity, and skill of the proposer to perform 32
the contract or provide the service required; 33
(ii) The character, integrity, reputation, judgment, experience, 34
and efficiency of the proposer; 35
(iii) Whether the proposer can perform the contract within the 36
time specified; 37
(iv) The quality of performance of previous contracts or 38
services; 39
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(v) The previous and existing compliance by the proposer with 1
laws relating to the contract or services; 2
(vi) Objective, measurable criteria defined in the request for 3
proposal. These criteria may include but are not limited to items 4
such as discounts, delivery costs, maintenance services costs, 5
installation costs, and transportation costs; and 6
(vii) Such other information as may be secured having a bearing 7
on the decision to award the contract. 8
(c) When purchases are made through a request for proposal 9
process, proposals received shall be evaluated based on the 10
evaluation factors set forth in the request for proposal. When 11
issuing a request for proposal for the procurement of propulsion 12
equipment or systems that include an engine, the request for proposal 13
must specify the use of a life-cycle cost analysis that includes an 14
evaluation of fuel efficiency. When a life-cycle cost analysis is 15
used, the life-cycle cost of a proposal shall be given at least the 16
same relative importance as the initial price element specified in 17
the request of proposal documents. The department may reject any and 18
all proposals received. If the proposals are not rejected, the award 19
shall be made to the proposer whose proposal is most advantageous to 20
the department, considering price and the other evaluation factors 21
set forth in the request for proposal. 22
NEW SECTION. Sec. 7. This act is necessary for the immediate 23
preservation of the public peace, health, or safety, or support of 24
the state government and its existing public institutions, and takes 25
effect immediately.26
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