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Design & Build of New Passenger Vessel

Shetland Islands Council

This public procurement record has 3 releases in its history.

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 is seeking proposals for the design and build of a new 33m Class B Ro-Ro passenger vessel, intended for deployment as a relief vessel on Shetland’s routes. The procurement process is under the Competitive Procedure with Negotiation, as per Regulation 30 of the Public Contracts (Scotland) Regulations 2015. The vessel must be delivered by 31st March 2029, although an earlier handover by 31st October 2028 is preferred. Amendments have been made, extending deadlines for responses to 9th March 2026 and dispatch invitations estimated on 24th March 2026. Situated in Lerwick, Shetland Islands, this procurement falls in the industry category of ferry boats under the main procurement category of goods.

This tender represents a significant opportunity for businesses in shipbuilding and marine vessel manufacturing. The contract value is projected at £35.1 million, offering a lucrative opportunity for companies that can demonstrate technical expertise and meet strict financial and insurance requirements. The procurement allows for options to procure up to two additional similar vessels, contingent on successful delivery of the initial vessel and securing necessary capital funding. Companies with experience in maritime engineering, vessel construction, and familiarity with BIMCO NEWBUILDCON contracts are particularly well-suited to compete for this tender, potentially expanding their operations and expertise in the UK's maritime sector.

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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. Exercise of any option to procure a further similar vessel would be conditional upon: -successful delivery of the Vessel procured under the original contract; -the Council receiving the necessary capital funding for the procurement of further similar vessels; -agreement with the successful Tenderer on the terms of any further procurement; and -alignment with the Council's strategic priorities when considering options for future procurements. The reservation of this option shall not be regarded as a commitment or representation on the part of the Council (or any other person) to enter into any contractual agreement. The Council reserves the right to choose not to award any further contracts to the successful Tenderer. Tenderers should note that the estimated value stated in this Contract Notice is the estimated value for three vessels, as required by Regulation 6 of the Regulations. The Council only intends to procure one vessel at this time, and there is no guarantee that any option to procure further similar vessels will be exercised. The Council anticipates that the value of the first Vessel, covered by this Procurement, will be around 11,700,000 GBP.

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/015199-2026
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender 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
19 Feb 20266 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
Active
Lots Status
Active
Awards Status
Not Specified
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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