The state Department of Transportation is expected to reject a bid by Todd Pacific Shipyards to build a new 50-car ferry to serve Port Townsend and Keystone.

That decision could be made today.

"We think we won't accept the bid. It's not a good price," said DOT Secretary Paula Hammond, adding that the state may rebid the contract.

Todd was the only bidder last week for what the state is calling a Steilacoom III, a boat modeled after a Pierce County ferry, Steilacoom II, that has been leased to the state for the Port Townsend-Keystone route.

Todd bid nearly $26 million to build the ferry, while Washington State Ferries had estimated the cost would be between $13 million and $17 million.

Hammond said she doesn't understand what went into the state's estimate or why the Todd bid came out so high, but Steve Welch, head of the shipyard, said one reason is the requirement that the boat be built in a year or the shipyard could face a $6,000-a-day fine.

David Moseley, head of the state ferry system, told a gathering of ferry riders Monday night in Bremerton that Pierce County has agreed to extend the loan of its boat until October 2009, which might give the state more breathing room in getting a new ferry built.

However, a spokesman for Pierce County Executive John Ladenburg said the county has agreed to extend the lease only until August 2009. The state has asked for another two months, but no decision has been made.

Hammond said the state has been scouring the nation looking to buy or borrow ferries, but has been unsuccessful.

One issue raised in Bremerton is whether the state requirement that the boat be built by a Washington shipyard makes sense with only one bid for the new ferry.

"We don't know if this speaks badly for boats built in Washington," Hammond said. "We want boats built here and maintained here. I'd hate to see us build up an industry in another state, but we have to look very carefully at that."

The state originally planned to buy three boats built like the Steilacoom II, but now says it will buy just one of those boats and two of the Island Home design, a boat that operates in New England. The state will look at how quickly those boats could be built.

There is some speculation that the state may decide not to have another boat like the Steilacoom II built, but instead buy just the sturdier Island Homes.

The Legislature this year appropriated $84.5 million to build three new boats to replace the Steel Electric Class vessels.

Susan Gilmore: 206-464-2054