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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 01:00

OJEU - F3 - Contract Award Notice
TenderUpdate

19 Feb 2026 at 00:00

OJEU - F14 - Corrigendum
TenderUpdate

02 Feb 2026 at 00:00

OJEU - F14 - Corrigendum
Tender

29 Jan 2026 at 00:00

OJEU - F2 - Contract Notice
Summary of the contracting process

Shetland Islands Council planned to procure the design and construction of a new 33-metre Class B roll-on/roll-off passenger vessel. The vessel was intended to provide relief capacity on Shetland’s routes and was to be built and delivered to the Council in Shetland, Scotland. This is a specialist shipbuilding requirement combining vessel design and development with construction and delivery. The proposed contract was to use the BIMCO NEWBUILDCON form, with amendments. The Council also reserved an option to procure up to two further similar vessels from the successful tenderer, either under the same contract or through separate contracts. The requirement was classified as passenger vessel procurement (CPV 34512100).

The procurement was discontinued without a successful award: the recorded award outcome is unsuccessful, so no supplier was selected. The Council used a competitive procedure with negotiation, with candidates expected to progress through selection, tenders and negotiations before final evaluation. The stated evaluation basis was price, and the Council could award on initial tenders without negotiation. The estimated procurement value was £35.1 million. The proposed contract period ran from 31 October 2026 to 31 March 2029, with delivery required by 31 March 2029 and an earlier handover on 31 October 2028 preferred. One lot covered the vessel. Participation required financial evidence, specified turnover or credit support, employers’ liability and public/products liability insurance, and technical evidence covering vessel design, similar vessels, quality control, environmental management, equipment, quality procedures, and health and safety. The submission deadline was extended to 9 March 2026.

For shipbuilders and marine engineering firms, this procurement indicates demand from Shetland Islands Council for a purpose-built passenger Ro-Ro vessel capable of serving as relief capacity on island routes. A credible competitor for a similar requirement would need to demonstrate experience in vessel design and development and provide relevant examples of comparable vessels, backed by suitable technical staff, quality-control capability, tools, plant and technical equipment. The selection requirements also point to the importance of robust quality-management and health and safety procedures, environmental management systems or standards, and the ability to meet the specified insurance cover. Financial resilience mattered: the Council assessed financial statements, bank or credit support, and general and specific turnover. The cancelled process does not establish a winning supplier or a proven delivery model; it shows the technical and financial profile the Council set for this vessel project.

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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.. 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-r6ebe6-0000820272
Publication Source
Public Contracts Scotland
Latest Notice
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=SEP565283
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
OJEU - F3 - Contract 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

Notice Documents

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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