GLASGOW – The awarding of a multimillion-pound CalMac ferry contract to Polish shipbuilder Remontowa has reignited debate over Scotland’s approach to public procurement, as it emerged that no “social value” criteria were used in evaluating the bids.
The contract—worth just over £150 million for seven electric vessels—was awarded last month by Caledonian Maritime Assets Ltd (CMAL), the state-owned ferry procurement body. Port Glasgow-based Ferguson Marine, the only Scottish shipyard shortlisted, lost out on price despite performing well technically.
Procurement officials confirmed that social value was not scored due to fears of legal challenge from overseas bidders. Ferguson, a nationalised yard, had hoped the contract would serve as the foundation for long-term stability after years of turbulence and cost overruns on larger projects.
No legal footing for social value in Scotland
CMAL cited the need to comply with international procurement rules, which prohibit discrimination against foreign firms. Unlike in other parts of the UK, Scotland has no legal requirement to include social or economic benefit scoring in high-value contracts.
“While Scottish public authorities can include social value considerations, they are not permitted to set requirements which would unlawfully discriminate,” CMAL said in a statement.
Despite this, CMAL did secure limited community benefits, including a commitment from Remontowa to involve 21 Scottish apprentices in sea trials.
The winning Polish bid came in at just over £21 million per vessel, significantly undercutting Ferguson’s offer, which remains undisclosed.
Ferguson’s future in limbo
Ferguson Marine, nationalised in 2019 after the collapse of its private owners, has no confirmed orders beyond the completion of MV Glen Rosa, the second of two long-delayed LNG ferries.
While the yard had successfully built smaller electric vessels before and vowed to bid “aggressively” for the latest contract, price sensitivity proved decisive. The firm is now seeking private sector contracts and subcontracting work with BAE Systems to bridge its order book.
Drone images show the Ferguson shipyard finishing work on the Glen Rosa while hunting for new workstreams to keep the yard alive.
Social value: What difference would it make?
The UK government’s 2023 Procurement Act includes a duty to “maximise public benefit” in contract awards and requires a 10% social value score for appropriate contracts. That rule, however, does not apply to devolved bodies like CMAL.
Data published last week showed £16.6 billion in public contracts were awarded by Scottish bodies in 2022/23. Of that, £8.9 billion went to Scottish firms, while £7.7 billion flowed outside the country.
Critics argue Scotland is missing an opportunity to anchor industrial capacity locally.
“The rules are too narrowly focused on cost,” said one industry insider. “We’re letting the lowest bid dictate outcomes without considering long-term value for communities.”
Procurement vs protectionism
Legal experts warn that weighting bids toward domestic suppliers risks violating international trade agreements.
“Even after Brexit, trade deals still govern procurement law,” said Duncan Osler, a procurement specialist with Morton Fraser MacRoberts. “If you tilt the playing field too much, you invite legal challenges.”
Rather than blunt protectionism, industry body Maritime UK has called for minimum thresholds of UK-based content, similar to requirements in offshore wind projects.
Still, any such requirement would need to apply evenly to all bidders, regardless of location, limiting its practical impact.
What next for Ferguson?
With the small ferry contract lost, Ferguson’s survival may now hinge on political will as much as commercial demand. While the yard has support from the Scottish Government, ministers have come under pressure over continued public investment without guaranteed work.
CMAL, meanwhile, says the seven new electric ferries will enter service between 2026 and 2028, boosting the aging CalMac fleet and advancing Scotland’s shift toward low-emissions maritime transport.
But the debate over how Scotland balances cost, local industry, and fair competition is unlikely to die down.
