There was a nasty surprise for the Washington State Ferries on Thursday: bids on a new ferry came in more than $9 million above an engineer's estimate.

The ferry system is beginning its first major vessel construction program in more than a decade.

The vessels are urgently needed because of the grounding of the four, 80-year-old, steel electrics which are heavily rusted.

On Tuesday, Gov. Chris Gregoire signed the supplemental transportation budget approved by the Legislature, saying: "The transportation budget helps secure the safety of our ferry system for future generations."

That day there were smiles. The Legislature had set aside $85 million for three smaller ferries to be used in the San Juan and Keystone-Port Townsend runs.

Now, Thursday, bids were opened on one new ferry. The lone bid came from Todd Pacific Shipyards: $25,985,125.

For that money the state will get a modified version of the Pierce County boat the Steilacoom II. State ferry engineers had estimated the cost as $16,895,161 - some $9 million less than the actual bid.

The Assistant Secretary for Ferry Operations, David Moseley, told KOMO 4 news: "(We're) disappointed we didn't have more than one bidder, we thought we were going to have more than one bidder, but we only got one. We will deal with the cards that were played."

One of the problems may be the need for a boat as soon as possible on the Keystone run. The governor wants that boat in service in 14 months.

The bidder's reaction from Todd Shipyards CEO Stephen Welch: "I'm concerned. Is it doable? Yes. Is it possible? Yes. Is it difficult? Extremely."

Welch told KOMO 4 News that's just one of the factors that increased cost. Others include safety improvements and changes in engine requirement.

The state originally planned to buy three boats of the Steilacoom class. They revised their plans and are buying just one, which means all of the development costs are in the one boat, rather than being spread out over three vessels.

The other two boats will be modeled on the Island Home designed in Seattle and now in service in the Martha's Vineyard area.

That decision may add to the problems. Sources tell me the cost will be $32 million or more. That is above state engineer estimates.

The total for the three boats would appear to exceed the budget set by the Legislature by at least $5 million.

The ferry system refuses to worry. Moseley said: "It is not going to blow up. The Legislature has allowed us resources to build boats, we're going to build boats."

Moseley also believes the first boat will be in service in 14 months. The state bid requirements provide for $6,000 a day penalties if the timetable slips.

There is one possible exception, labor dispute. Many of the major unions at Todd have contracts which expire this year.