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Design & Build of New Passenger Vessel

Shetland Islands Council

This public procurement record has 4 releases in its history.

Award

25 Sep 2026 at 10:41

Award Notice
TenderUpdate

19 Feb 2026 at 12:22

Tender Notice
TenderUpdate

02 Feb 2026 at 10:30

Tender Notice
Tender

29 Jan 2026 at 16:34

Tender Notice
Summary of the contracting process

Shetland Islands Council sought a new 33-metre Class B roll-on/roll-off passenger ferry to serve as a relief vessel on Shetland’s routes. The vessel was to be designed and built for passenger transport and delivered to the Council in Shetland. This is a shipbuilding and vessel supply requirement, specifically for a passenger Ro-Ro ferry. The contract was intended to use the BIMCO NEWBUILDCON form, with amendments. The Council considered whether to require community benefits but concluded these could not be imposed proportionately and relevantly for this contract, given the limits on benefits shipbuilders could offer in the Council’s geographical area.

The procurement was discontinued and no supplier was awarded the contract. It used a competitive procedure with negotiation, with candidates first assessed and shortlisted before tendering; the Council could also have awarded on initial tenders without negotiation. The estimated contract value was £35.1 million. The intended delivery deadline was 31 March 2029, with a strong preference for handover by 31 October 2028; the planned contract period ran from 31 October 2026 to 31 March 2029. The Council anticipated inviting three candidates to the next stage, though it reserved discretion over the number. Price was the stated award criterion. The Council also reserved an option to procure up to two further similar vessels, under this contract or separate contracts.

For a future requirement of this kind, a credible competitor would need proven capability in designing and building passenger Ro-Ro vessels, with relevant examples of design development and comparable vessels. The selection requirements also called for access to technicians or technical bodies for quality control, appropriate tools, plant and technical equipment, and environmental management measures and systems. Suppliers would need to demonstrate effective quality-management and health-and-safety procedures, alongside the financial strength to support a large vessel contract. Required insurance included employers’ liability and public and products liability cover at the specified levels, and the contract summary referred to a refund guarantee. This buyer’s requirement was for a dedicated relief ferry for Shetland routes, so relevant shipbuilding experience and the ability to deliver a complete vessel to the islands would be central to competing.

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Notice Information

Notice Title

Design & Build of New Passenger Vessel

Notice Description

The requirement is for a new 33m Class B Ro-Ro passenger vessel to operate on Shetland's routes as a relief vessel (the "Vessel"). The Vessel must be built and delivered to the Council in Shetland, Scotland by 31st March 2029. The Council has a strong preference for an earlier handover of 31st October 2028. The contract awarded will be BIMCO NEWBUILDCON with amendments, as described in more detail in the draft Invitation to Negotiate ("ITN") included in the Procurement Documents (the "Contract").

Lot Information

Lot 1

The procurement procedure being followed for the Vessel is the Competitive Procedure with Negotiation (CPN) in accordance with Regulation 30 of the Public Contracts (Scotland) Regulations 2015 (the "Regulations"). The structure of the procurement (the "Procurement") is as follows: Stage 1: Shetland Islands Council (the "Council"), by publishing this Contract Notice, invites candidates to request to participate in the process by completion of an SPD response; Stage 2: successful candidates from Stage 1 will be invited to submit Initial Tenders ("Initial Tenders") and to negotiate with the Council with a view to improving the content of their Initial Tenders (the "Negotiation Process"); Stage 3: Tenderers will then be invited to submit Final Tenders ("Final Tenders") which will be evaluated in order for the Council to identify the most economically advantageous tender ("MEAT"); and Stage 4: subject to completion of the mandatory standstill period, and approval of a full business case by the Council's elected members, the Council will then enter into the Contract with the successful Tenderer. The Council reserves the right to award the Contract on the basis of Initial Tenders without negotiation in accordance with Regulation 30(16) of the Regulations. In that scenario, the Council will not conduct the Negotiation Process or invite Final Tenders, and will move directly to Stage 4. Additional information: The draft ITN being published with this contract notice is provided for information only. The final version of the ITN will be provided to those candidates who are shortlisted to Stage 2. The Council reserves the right to amend any part of the ITN, including the award criteria, in preparing the final version before Stage 2.

Options: The Council reserves the option to procure up to two further similar vessels from the successful Tenderer. These options, if exercised, could be awarded pursuant to this Contract or as new contracts following the negotiated procedure without prior publication, including in accordance with Regulation 33(8) of the Regulations.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-061266
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/090873-2026
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Selective
Procurement Method Details
Competitive procedure with negotiation
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

34 - Transport equipment and auxiliary products to transportation

CPV Codes

34512000 - Ships and similar vessels for the transport of persons or goods

34512100 - Ferry boats

34512700 - Ro-Ro vessels

Notice Value(s)

Tender Value
£35,100,000 £10M-£100M
Lots Value
£35,100,000 £10M-£100M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
25 Sep 20261 months ago
Submission Deadline
2 Mar 2026Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
31 Oct 2026 - 31 Mar 2029 2-3 years
Recurrence
Not specified

Notice Status

Tender Status
Cancelled
Lots Status
Cancelled
Awards Status
Unsuccessful
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Shetland Islands Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LERWICK, SHETLAND
Postcode
ZE1 0LZ
Postcode Area
Lerwick
Country
Scotland
Major Region (ITL 1)
TLM Scotland
Basic Region (ITL 2)
TLM2 Highlands and Islands
Small Region (ITL 3)
TLM20 Highlands and Islands
Delivery Location
TLM66 Shetland Islands
Local Authority
Shetland Islands
Electoral Ward
Lerwick North and Bressay
Westminster Constituency
Orkney and Shetland

Further Information

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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