WASHINGTON STATE
DEPARTMENT OF TRANSPORTATION
FERRIES DIVISION
NOTICE FOR PURCHASE AND SALE OF
STEEL ELECTRIC CLASS FERRIES
Interested Parties:
This notice is being sent via e-mail to the group of interested parties who received the 2008 project notices soliciting proposals for the purchase and sale of the Steel Electric class ferries, plus any new interested parties since that time.
Last fall, Washington State Ferries (WSF) selected a purchase offer submitted by Environmental Recycling Services, Inc. (ERS) as the most advantageous proposal for the purchase of the following four (4) Steel Electric class ferries: M.V. Illahee, M.V. Klickitat, M.V. Nisqually and M.V. Quinault. ERS’ plan has been to tow the vessels to its recycling facility in Mexico. In late October 2008, WSF hired a qualified and certified firm to conduct a thorough PCB analysis on all four vessels and by early December 2008, the PCB reports were completed, showing that the PCB levels on all four vessels are well below limits for the Toxic Substance Control Act. WSF undertook the PCB testing as due diligence prior to export of the vessels. Interested parties may inspect the PCB report at WSF’s offices in downtown Seattle or they may request a CD copy (see below).
Shortly after the PCB test results, ERS advised WSF that steel prices had dropped so significantly in the last few months of 2008 that ERS would need to delay removal of the vessels from WSF’s Eagle Harbor Maintenance Facility for up to six months or longer, depending on the status of steel prices. At that time WSF decided to keep ERS’ offer as an active back-up offer pending a re-solicitation for sale of the vessels that could generate more sale revenue for WSF and ensure prompt removal of the vessels from Eagle Harbor.
Accordingly, WSF hereby advises that WSF will accept proposals for the purchase of all four (4) Steel Electrics pursuant to the terms and conditions in this notice.
Proposal Due Date
4:00 p.m. on Monday, February 2, 2009.
Proposals should be sent or delivered to the following WSF address. Alternatively, you may e-mail your proposal to the e-mail address listed below.
Tim McGuigan
Director of Legal Services & Contracts
Washington State Ferries
2901 Third Ave. Suite 500
Seattle, WA 98121-3014
Phone: 206.515.3601
Cell: 206.915.4718
E-mail: mcguigan@wsdot.wa.gov
Scope and Minimum Price
At this time, WSF will only consider proposals for the purchase of all four (4) vessels, with a minimum purchase price of $650,000 for all four vessels combined. The successful proposer must pay the full purchase price by account wire transfer or cashier’s check upon execution of a Purchase and Sale Agreement (see below). In the event WSF is not able to complete a sale transaction under this re-solicitation, WSF reserves the right to enter into a purchase and sale agreement with ERS or re-solicit purchase offers for less than four vessels.
Proposal Selection
WSF intends to select the proposal that it deems most advantageous considering compliance with the terms and conditions specified herein and other elements of a proposal. WSF intends to make its selection following review of the submitted proposals. However, if WSF deems discussion is needed with one or more proposers prior to making a selection, it will notify the affected proposers. WSF reserves the right to reject any or all proposals and such decision shall be considered final and binding.
Deposit
Within two (2) business days following receipt of notice that its proposal has been selected as the most advantageous proposal, the successful proposer must submit a $30,000 deposit to WSF in order to receive further consideration. The deposit must be submitted via account wire transfer or cashier’s check. If the successful proposer enters into a Purchase and Sale Agreement with WSF, makes full payment for the vessels and timely removes the vessels from Eagle Harbor, the deposit plus accrued interest will be returned to the proposer. If the proposer is unable or fails to comply with any such conditions, the deposit and accrued interest will be immediately forfeited to WSF, the sale transaction will be cancelled and WSF will retain full ownership of and title to the vessels.
Purchase and Sale Agreement
Within seven (7) calendar days after selection of a successful proposer, and subject to receipt of the deposit (see above), the parties will enter into a Purchase and Sale Agreement. The Agreement will require full payment of the purchase price upon execution of the Agreement and prompt removal of the vessels from Eagle Harbor. WSF will allow brief moorage of the vessels at Eagle Harbor as follows: up to thirty (30) calendar days total after execution of the Agreement to remove at least two (2) vessels; and up to forty-five (45) calendar days total after execution of the Agreement to remove the final vessel(s).
Vessel Ownership
WSF will not transfer ownership of a vessel until the purchaser has timely removed the vessel from Eagle Harbor. If the purchaser fails to timely remove a vessel, the purchaser will forfeit all interest in such vessel. In such event, WSF will retain full ownership of such vessel plus the full purchase price paid for all four (4) vessels.
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(Ed. note: Thanks to BE Reader Greg B for this one.)
Once upon a time, back when people in Russia used big moustaches and sent other people to Siberia, there were no GPS or tacky cellphones. But they had atomic lighthouses to light the Artic shores.
