The multimillion-dollar contract to refurbish 18 travel plazas across the state will once again be sent out for bid after the previous winning bidder bowed out of talks last month, the Massachusetts Department of Transportation announced Wednesday, Oct. 15.
"After careful consideration, we have determined that the best path forward to ensure the success of this project is to reprocure the contract," said Highway Administrator Jonathan Gulliver, who will oversee the procurement process for the state. "This will allow us to make any necessary changes to the RFP to ensure we are attracting robust interest from highly qualified bidders and securing the best value possible."
Applegreen was originally awarded the contract in June by the DOT Board of Directors, but pulled out on Sept. 23, amid a swirl of controversy surrounding the bidding process. Runner-up Global Partners MLP, based in Waltham and a lease holder at four of the plazas and a tenant in the 11 plazas on the Mass. Pike, had accused DOT officials of favoritism, collusion, ethics violations and lack of transparency in awarding the bid.
Applegreen, founded in Ireland and working with a U.S. partner, Blackstone Infrastructure Partners, manages more than 200 travel service plazas in New York, New Jersey, Connecticut, Pennsylvania, Delaware, New Hampshire, Maine and throughout Europe.
In stepping away from the project, the company cited the lack of agreement with state officials and the "costly and continued litigation threats from an opposing bidder that have jeopardized the project's timeline and financing."
The project, hailed by the DOT as a "once-in-a-generation" opportunity to revitalize the plazas and ensure they fulfill the needs of the traveling public long into the future, has been in limbo as the state grapples with the developing circumstances.
Applegreen had pledged to spend $750 million to refurbish the plazas and guaranteed a rent of up to $1 billion, with revenue sharing, over the 35-year life of the contract. Global Partners pledged to spend $650 million on the refurbishing of the plazas and guaranteed $1.5 billion in rent over the life of the contract.
Global Partners yesterday indicated it will resubmit a bid its "transformative vision" for the plazas once the state has launched its request.
"We welcome MassDOT's decision to rebid the service plaza contract, reflecting a shared commitment to transparency and delivering the best outcome for the commonwealth," said Mark Romaine, chief operating officer at Global, in a written statement. "Our proposal demonstrated guaranteed revenue for the commonwealth, modern amenities, and a seamless guest experience from day one."
In its initial objection to the selection of Applegreen, Global Partners railed against selection of a "foreign-based company" over a Massachusetts-based firm. Global Partners is, however, incorporated in Delaware, according to official records. In subsequent days, Global Partners expanded its objections to the DOT's choice.
Global Partners filed a claim of ethics violations, alleging improper communications between Applegreen, its construction partner, Boston-based Suffolk, and the chairperson of the selection committee, a MBTA employee who formerly worked for the DOT.
The company has also filed suit against the DOT, seeking an injunction through the courts to force the release of hundreds of documents pertaining to the process the company claims reflect communications between the state and the bidding team in violation of conflict of interest and state ethics regulations. In an amendment to the suit filed Sept. 16 to stop the lease agreement or vacate it once it had been inked.
Global had also requested state Inspector General Jeffrey Shapiro review the bidding process and called on the attorney general and the governor's office to intervene. Most recently, a group of Republican lawmakers sent a letter to the inspector general demanding a "full-scale" investigation into the bidding process, despite his finding in August that there was no cause for complaint.
"These service plazas play a critical role for our residents, visitors, workers and economy," Gulliver said. "MassDOT's focus has always been on delivering the highest-quality service plazas that offer the best value for taxpayers."
Next, the state will review the parameters and wording of the first request for proposal, issued in September 2024, and seek feedback from the industry, requesting recommendations as it prepares the new documents. Tweaks to the documents are expected to elicit "robust interest from high-quality bidders and set the project up for success."
The state's first attempt to find a contractor to rebuild, refurbish and refresh the 18 plazas spanned eight months. The second process could take as long.
The state will start negotiations with current lease holders to extend contracts, 14 of which expire in December. The remaining four expire July 1, 2027.