New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802

PDF Published: Thursday 23 Mar 2023 (PAS062023R1)

Expand
Overview
Report

Hide

Hide

Overview
Report
- Introduction
- Background
  - The landscape for procuring, managing and operating ferry vessels on the Clyde and Hebrides network
    
    Governance arrangements for vessels 801 and 802
    
    Background to the project
- Overall Conclusions
- The procurement procedure
  - Initial procurement stages
    
    Requirements of the builder’s refund guarantee
    
    Pre-qualification Questionnaire stage
    
    Invitation to Tender stage
    
    Approval and announcement of the preferred bidder
  - Contract negotiation
  - Awarding the contract
    
    Submission to Scottish Ministers
    
    Written authority
    
    CMAL’s concerns and how they were communicated to Scottish Ministers
    
    Approval of the contract by Scottish Ministers
- Initial work to build the vessels
  - Commencement and sequencing of the work
  - FMEL decision making
  - Launch of vessel 801
  - Quality standards
    
    Change requests
  - Governance arrangements
  - Cancelling the contract
- Delays and cash flow problems before nationalisation
  - Milestone payments
    
    Financial and non-financial support for FMEL
    
    Support provided by CMAL
    
    Meeting with the First Minister
    
    Support provided by the Scottish Government
    
    Compliance with loan conditions
    
    Claim for additional costs
    
    Dispute resolution mechanism
    
    Mediation
    
    Expert Determination
    
    Court of Session
- Nationalisation
  - Events before nationalisation
  - The decision-making process to nationalise FMEL
  - Arrangements after nationalisation
    
    Following the money
    
    FMEL’s financial records
  - Progress with the vessels
    
    Problems with cable installation on vessel 801
    
    Performance reporting to the Scottish Parliament
  - Future of the yard
- Lessons learned from the project
  - Changes implemented for future vessel projects
    
    CMAL changes
    
    Transport Scotland changes
    
    Changes made by the Scottish Government
    
    Alternatives to builder’s refund guarantees
  - Future transport ferries governance arrangements
- Annexe A: Key decision makers and accountable officers
- Annexe B: Timeline of key events
- Annexe C: Extracts from minutes
- Annexe D: Written evidence and engagement
Sources

Image: Exhibit 2: Current governance arrangements to deliver vessels 801 and 802

Image: Scottish Ministers responsible for the portfolios covering transport and finance

Image: Scottish Ministers responsible for the portfolios covering transport and finance (continued)

Image: Scottish Government, Transport Scotland and CMAL representatives

Image: Annexe B: Timeline of key events

Image: Exhibit 1: Initial governance arrangements to procure and deliver vessels 801 and 802

Image: Meeting with the First Minister

Auditor General for Scotland. (2022, March 23). New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802. Retrieved from https://www.audit-scotland.gov.uk/uploads/docs/report/2022/nr_220323_vessels.pdf

Letter to the Convener from Stephen Boyle, the Auditor General for Scotland, 6 October 2022. (2022). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-procurement-ags-to-pac-6-oct-2022.pdf

Scottish Government. (2022). Ferguson Marine: Key documents 2015 - Submission to Ministers. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2015/documents/ferguson-marine-submission-to-ministers-recommending-contract-award-20-august-2015/ferguson-marine-submission-to-ministers-recommending-contract-award-20-august-2015/govscot%3Adocument/Ferguson%2BMarine-%2Bsubmission%2Bto%2Bministers%2Brecommending%2Bcontract%2Baward%2B-%2B20%2BAugust%2B2015.pdf

Scottish Government. (2022). Ferguson Marine: key documents - 2015 - Ministerial response. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2015/documents/ferguson-marine-ministerial-response-to-8-october-2015-submission/ferguson-marine-ministerial-response-to-8-october-2015-submission/govscot%3Adocument/Ministerial%2BResponse%2Bto%2B8%2BOctober%2B2015%2BSubmisison.pdf

Scottish Government. (2022). Ferguson Marine: key documents - 2015 - Signed Contract. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2015/documents/ferguson-marine-contract-documents-signed-by-cmal-and-fmel---16-october-2015/ferguson-marine-contract-documents-signed-by-cmal-and-fmel---16-october-2015/govscot%3Adocument/Ferguson%2BMarine-%2Bcontract%2Bdocuments%2Bsigned%2Bby%2BCMAL%2Band%2BFMEL%2B%25E2%2580%2593%2B16%2BOctober%2B2015.pdf

Official Report, 16 June. (2022). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13835

Official Report, 30 June. (2022). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13869

Submission to the Convener from Kevin Hobbs, Chief Executive Officer, Caledonian Maritime Assets Limited, 29 June 2022. (2022). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/20220629pac_cmal_sub_redacted.pdf

Public Contracts Scotland, Caledonian Maritime Assets Ltd: Contract Notice. (2014, October 15). Retrieved from https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=OCT189406

CMAL. (2022, October 21). Letter to the Convener from Morag McNeill, Chair. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-cmal-to-pac-21-oct-2022.pdf

Letter to the Convener from Stephen Boyle, the Auditor General for Scotland. (2022, November 25). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-ags-to-pac-25-nov-2022.pdf

CMAL. (2022, August 12). Updated submission to Convener from Kevin Hobbs, Chief Executive Officer. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/20220812cmal-submission-and-appendices-further-redacted-290622redacted.pdf

Letter to the Convener from Struart McMillan MSP. (2022, October 19). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-s-mcmillan-msp-to-pac-19-oct-2022.pdf

Transport Scotland. (2022, October 28). Letter to the Convener from Michelle Quinn, Interim Chief Executive. Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-ts-to-pac-28th-october-2022.pdf

Scottish Parliament. (2022, May 26). Offical Report. Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13780

Scottish Parliament. (2022, September 8). Official Report. Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13887

Correspondence to the Convener from Keith Brown, Cabinet Secretary for Justice and Veterans, Scottish Government. (2022, December 21). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels--cabinet-secretary-for-justice-and-veterans-to-pac--21-december-2022.pdf

Official Report. (2022, November 4). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13965

Correspondence to the Convener from Rt Hon Nicola Sturgeon, First Minister, Scottish Government. (2022, November 30). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-fm-to-pac-30-nov-2022-links.pdf

Official Report. (2022, June 9). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13821

Scottish Government. (2022). Ferguson Marine: key documents - 2015 - submission to Ministers, 7 October 2015. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2015/documents/ferguson-marine-submission-to-ministers-requesting-approval-of-cmal-contract-award---7-october-2015/ferguson-marine-submission-to-ministers-requesting-approval-of-cmal-contract-award---7-october-2015/govscot%3Adocument/Ferguson%2BMarine%2Bsubmission%2Bto%2Bministers%2Brequesting%2Bapproval%2Bof%2BCMAL%2Bcontract%2Baward%2B7%2BOctober%2B2015%2Bamended%2BDecember%2B2022.pdf

Official Report. (2022, April 21). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13706

Official Report. (2022, April 28). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=13722

Writtewn Submission to the Convener from Jim McColl, former Director, Ferguson Marine Engineering Ltd. (2022, April 4). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/jim_mccoll_final_redacted.pdf

Meeting of the Parliament: Portfolio Question Time - Ferry Problems. (2022, May 11). Retrieved from https://www.parliament.scot/chamber-and-committees/official-report/search-what-was-said-in-parliament/chamber-and-committees/official-report/what-was-said-in-parliament/meeting-of-parliament-11-05-2022?meeting=13737&iob=124679

Scottish Government. (2018, February 8). Scottish Ministerial Code 2018 Edition: Code of Conduct and Guidance on Procedures. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/advice-and-guidance/2018/02/scottish-ministerial-code-2018-edition/documents/00531094-pdf/00531094-pdf/govscot%3Adocument/00531094.pdf

Scottish Government. (n.d.) Ferguson Marine: key documents - 2015 Transport Scotland to CMAL, 9 October 2015. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2015/documents/ferguson-marine-letter-from-transport-scotland-to-cmal-re-voted-loan---9-october-2015/ferguson-marine-letter-from-transport-scotland-to-cmal-re-voted-loan---9-october-2015/govscot%3Adocument/Ferguson%2BMarine%2B--%2Bletter%2Bfrom%2BTS%2Bto%2BCMAL%2Bre%2Bvoted%2Bloan%2B%25E2%2580%2593%2B9%2BOctober%2B2015.pdf

Rural Economy and Connectivity Committee (RECC) Construction and Procurement of Ferry vessels in Scotland Report. (2020, December 9). Retrieved from https://digitalpublications.parliament.scot/Committees/Report/REC/2020/12/9/5517356c-7b44-11ea-af53-000d3a23af40-1#7223bd4c-aa38-11ea-ad86-000d3a23af40.dita

Ferguson Marine (Port Glasgow) Anonymised meeting note with staff. (2022, October 31). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/informal-discussion-with-staff-at-ferguson-marine-port-glasgow.pdf

Scottish Government. (2017, March 2). Ferguson Marine: Key documents 2017 - Meeting between Humza Yousaf and CBC, 2 March 2017. Retrieved from https://www.gov.scot/publications/ferguson-marine-key-documents-2017/

Scottish Government. (2017, April 29). Ferguson Marine: key documents 2017 - Submission to Ministers from TS, 29 April 2017. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2019/12/ferguson-marine-key-documents-2017/documents/april-2017/ferguson-marine-submission-to-ministers-from-ts-re-cash-funding-situation---24-april-2017/ferguson-marine-submission-to-ministers-from-ts-re-cash-funding-situation---24-april-2017/govscot%3Adocument/Ferguson%2BMarine-%2Bsubmission%2Bto%2Bministers%2Bfrom%2BTS%2B%2Bre%2Bcash%2Bfunding%2Bsituation%2B%25E2%2580%2593%2B29%2BApril%2B2017.pdf

Scottish Government. (2017, May 11). Ferguson Marine: Key documents 2017 - Submission to Ministers from TS re-funding options for FMEL. Retrieved from https://www.gov.scot/publications/ferguson-marine-key-documents-2017/

Third written submission to Convener from Jim McColl, former Director, Ferguson Marine Engineering Limited. (2022, November 11). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-j-mccoll-to-pac-further-sub-11-nov-2022.pdf

Correspondence to the Convener from Rt Hon Nicola Sturgeon, First Minister, Scottish Government. (2023, January 5). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2023/new-vessels-first-minister-to-pac-5-january-2023.pdf

Scottish Government Special Advisers Code of Conduct 2017. (2017, March). Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/agreement/2017/04/special-advisers-code-of-conduct-and-model-contract/documents/code-conduct-special-advisers-pdf/code-conduct-special-advisers-pdf/govscot%3Adocument/Code%2Bof%2Bconduct%2Bfor%2Bspecial%2Badvisers.pdf

Scottish Government Civil Service Code. (2010, November 11). Retrieved from https://www.gov.scot/publications/civil-service-code/

Audit Scotland. (2022, December 1). The 2021/22 audit of the Scottish Government Consolidated Accounts: The Auditor General for Scotland. Retrieved from https://www.audit-scotland.gov.uk/uploads/docs/report/2022/s22_221201_scottish_consolidated.pdf

Letter to the Convener from Colin Cook, Director of Economic Development, Scottish Government. (2022, July 7). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/20220707-ccooknewvessels.pdf

Letter to the Convener from David Tydeman, Chief Executive Officer, Ferguson Marine (Port Glasgow). (2022, December 22). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/new-vessels-fmpg-ceo--to-pac-22-dec-2022.pdf

Letter to the Convener from Stephen Boyle, the Auditor General for Scotland, . (2022, June 28). Retrieved from https://www.parliament.scot/-/media/files/committees/public-audit-committee/correspondence/2022/20220628_ags_fmel_records.pdf

Transport Scotland: Islands Connectivity Plan. (2021, February 1). Retrieved from https://www.transport.gov.scot/public-transport/ferries/islands-connectivity-plan/#:~:text=Consultation%20and%20engagement%20will%20be,consultation%20and%20publications%20in%202023

Official Report. (2023, January 19). Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=14108

Meeting of the Parliament: Ministerial Statement - Future of Scottish Ferries. (2022, September 8). Retrieved from https://www.parliament.scot/chamber-and-committees/official-report/search-what-was-said-in-parliament/chamber-and-committees/official-report/what-was-said-in-parliament/meeting-of-parliament-08-09-2022?meeting=13878&iob=125840

Last Updated: 20/4 11:10am

Image: Introduction