Grab savings in Washington ferry contracts

MONEY is tight everywhere. So this is no time for state government to be lavishing extra money on an industry merely because it is in Washington state and can't compete with businesses in other regions. This is a time for flexibility and bargain hunting on behalf of state taxpayers.

A consultant for the state Legislature's Joint Transportation Committee earlier this week pointed out some flaws in the policymakers' approach that are contributing to the difficulty of getting replacement ferry boats at the lowest possible price.

The Legislature has issued a call for bids to build replacement ferry boats but limited the contest only to Washington shipbuilders. That's problematic for a couple of reasons, not the least of which is that shipbuilders in other parts of the country where labor and steel costs are much lower could deliver a boat for millions less.

The other problem is that projects restricted to companies of only a single state are not eligible for federal grants, which require a nationwide search. Consider that about $17 million in federal funding is helping pay for the 144-auto ferry project's propulsion system built in Ontario, Calif. That's like leaving money in the street.

Experts pointed out the state's 18-month timeline for delivery is too rigid, saying no boatbuilder could make that schedule. The lone bidder for the contract likely built in $6,000-a-day penalties. The state could save money with a realistic schedule.

The rationale for the build-in-Washington requirement is to help ensure the viability of a local boatbuilding industry.

Senate Transportation Chair Mary Margaret Haugen, D-Camano Island, argues giving the contract to a Washington boatbuilder has some allure as unemployment rates edge higher: "I'd rather pay more for the boats than pay more in unemployment insurance."

But propping up businesses is not the government's job. Ensuring a competitive business environment is. During difficult times, getting the best bargain for the taxpayer should be the top priority.