Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Shetland Islands Council
8 North Ness Business Park
Lerwick, Shetland
ZE1 0LZ
UK
Contact person: Graeme MacDonald - Procurement Manager
Telephone: +44 1595744595
E-mail: contract.admin@shetland.gov.uk
NUTS: UKM66
Internet address(es)
Main address: http://www.shetland.gov.uk
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00402
I.2) Joint procurement
The contract is awarded by a central purchasing body
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Design & Build of New Passenger Vessel
Reference number: I/38/25
II.1.2) Main CPV code
34512100
II.1.3) Type of contract
Supplies
II.1.4) Short 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").
II.1.6) Information about lots
This contract is divided into lots:
No
II.2) Description
II.2.2) Additional CPV code(s)
34512000
34512700
II.2.3) Place of performance
NUTS code:
UKM66
Main site or place of performance:
Shetland Islands
II.2.4) Description of the procurement
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.
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
Yes
Description of 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.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) 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.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive procedure with negotiation
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2026/S 000-008213
Section V: Award of contract
Contract No: I/38/25
A contract/lot is awarded:
No
V.1 Information on non-award
The contract/lot is not awarded
Other reasons (discontinuation of procedure)
Section VI: Complementary information
VI.3) Additional information
Please note that it is an essential requirement of the procurement process that Tenderers fully complete and submit a satisfactory Single Procurement Document (SPD) (Scotland) and satisfy all requirements specified or referred to in the Contract Notice.
The Council is not and shall not be under any obligation to award a contract and shall be at liberty to abandon the procurement exercise at any time including any time after submission and evaluation of Tenders.
The Council intends to negotiate all Initial Tenders received with a view to improving their content. The anticipated Negotiation Process is set out in the draft ITN included in the Procurement Documents.
However, 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 Contract shall be subject to Scots Law and the jurisdiction of the Scottish Courts.
GBP means Great British Pounds.
The Council, having considered whether to impose community benefit requirements as part of the Procurement, has determined that these cannot be imposed in a manner which is proportionate and relevant to the subject matter of the Contract. The geographical location of the Council’s area means that there are limitations to the local community benefits that shipbuilders can offer as part of this contract.
(SC Ref:844016)
VI.4) Procedures for review
VI.4.1) Review body
Lerwick Sheriff Court
King Erik Street
Lerwick
ZE1 0DH
UK
Telephone: +44 1595693914
Internet address(es)
URL: https://www.scotcourts.gov.uk/the-courts/court-locations/lerwick-sheriff-court
VI.5) Date of dispatch of this notice
25/09/2026