After nearly two months of consideration, Gov. Bob Ferguson has chosen the out-of-state bidder to build new hybrid-electric vessels for Washington State Ferries.

Eastern Shipbuilding Group in Panama City, Florida will construct the first three ferries for about $714 million. The winning bid from the Florida shipbuilder is much lower than that submitted by Whidbey’s own Nichols Brothers Boat Builders, which estimated it would cost $1.07 billion to build three hybrid-electric boats.

In a statement issued from his office earlier today, Ferguson said he believed Eastern to be the best option at a fair cost to taxpayers.

In recent years, Washington State Ferries opened the project to out-of-state bidders after a contract with a different shipyard within the state fell through. In-state shipyards were provided with a 13% bid credit.

Being in Washington, Nichols Brothers must meet certain standards not required of the company in Florida, such as contractual obligations that invoke state requirements including prevailing wage, apprentices, small and veteran-owned businesses. There are also stricter environmental regulations that must be adhered to within the state.

Though Nichols Brothers CEO Gavin Higgins had urged the governor to consider splitting the contract between the two bidders, in the end, the less expensive — and less local — bid won out.

Today, Higgins told the Seattle Times that he was “shocked” and “disappointed” by Ferguson’s decision.

“This is state money going to support another state with weaker labor and environmental rules,” he said in the story. “Ferries will never be built in Washington again. It’s a loss of a huge legacy.”

Higgins also noted it was a missed chance for training a new generations of tradespeople.

“I wish the state the best. But what I’m really disappointed about is the lost opportunity that this would’ve brought to the state,” Higgins said. “I don’t know where people think they learn this work. They learn by doing it.”

Several local officials didn’t know that the governor made a decision until contacted by the South Whidbey Record today. State Rep. Dave Paul, a Democrat from Oak Harbor and a budget writer for the House Transportation Committee for ferries, said he would have expected to be briefed before the news came out.

He expressed mixed feelings about the decision.

“I’m excited that we are one step closer to getting more boats on the water,” Paul said, “but I’m disappointed that our local shipbuilder won’t be part of the process.”

State Sen. Ron Muzzall, a Republican from Oak Harbor, said he was criticized locally for saying in an earlier Record story that he wasn’t surprised that the Nichols Brothers bid was so much higher.

“It just costs too much to build anything in Washington State,” he said, pointing to the environmental regulations and high wages.

He doesn’t fault the governor for making the decision to go with the Florida company.

“I think they taxpayers are getting the best deal in building the new boat,” he said.

On the other hand, Island County Commissioner Janet St. Clair, a Democrat, was getting onto a ferry when she was reached by phone and simply said she was disappointed in the decision. She had been lobbying state officials to award the bid to Nichols Brothers in order to protect local jobs and help ensure the state’s rich maritime history continues.

A study by Pennsylvania-based Martin Associates — and funded by the Port of Everett — estimated that the construction of just one hybrid-electric ferry by Nichols Brothers would generate 1,298 jobs and $31.9 million in state and local taxes.

The new 164-car ferries will be equipped with a diesel engine and batteries. A charging station will be constructed at some terminals, including the Clinton on the Mukilteo-Clinton route.

Jessie Stensland contributed reporting to this story.