Massachusetts highway service plaza contract to go back up for bid after controversial process

Weeks after negotiations with the winning bidder of a contract to renovate and run 18 highway service plazas fell apart, the Massachusetts Department of Transportation is starting the process over.

MassDOT announced Wednesday that it is putting the project, which includes 11 rest stops on the Mass Pike, back up for bid.

"MassDOT's focus has always been on delivering the highest-quality service plazas that offer the best value for taxpayers," Highway Administrator Jonathan Gulliver said in a statement. "After careful consideration, we have determined that the best path forward to ensure the success of this project is to reprocure the contract."

The current leases on many of the 18 service plazas are set to expire on Dec. 31. MassDOT says it is immediately starting extension negotiations with leaseholders "to ensure that travelers and workers do not experience disruptions to essential services."

Applegreen deal collapsed

Irish company Applegreen, which was awarded the 35-year lease in June, had planned to knock down and rebuild nine of the rest stops while significantly refurbishing nine others. That work was supposed to start in January, but Applegreen pulled out of the deal last month, citing unresolved issues and "costly and continued litigation threats from an opposing bidder."

That opposing bidder was Waltham-based Global Partners, a current sub-tenant at some of the highway plazas that argued its proposal would have brought in nearly $1 billion more for the state. Global Partners argued in court and in the media that the process was unfair, alleging that it was plagued by conflicts of interest and ethical violations.

Gov. Maura Healey recently defended MassDOT, saying she believed the agency "ran a transparent process," but Republicans in the state have called on the inspector general to investigate the deal. MassDOT says it will "seek feedback from the industry" as it starts the process anew to attract "high-quality bidders and set the project up for success."

Global Partners ready to bid again

Global Partners said Wednesday it welcomes MassDOT's decision to re-bid the contract.

"Our proposal demonstrated guaranteed revenue for the Commonwealth, modern amenities, and a seamless guest experience from day one," the company said in a statement. "We remain fully committed to this process and are prepared to submit our transformative vision in the next RFP so that Massachusetts can finally move forward with revitalizing these critical public assets."