Massachusetts highway service plazas going back up for bid with key changes after controversial process
Massachusetts has restarted its search for bidders to rehabilitate and run 18 highway service plazas in the state after failing to close a deal last year amid a controversial process.
Last April, MassDOT awarded a 35-year lease to Irish company Applegreen to raze and rebuild nine rest stops, while refurbishing nine others. But the losing bidder, Waltham-based Global Partners, alleged that the process was unfair and sued, claiming their bid was $1 billion higher.
Applegreen eventually pulled out of the project, citing litigation threats, and MassDOT said it would be starting the process over. The Office of the Inspector General said in a report last month that the procurement process had "too many flaws," and cited concerns about conflicts of interest.
MassDOT said Friday that its goal is to bring in more rent revenue from the plazas, while modernizing them with "expanded food and beverage options, modern and accessible restrooms, travel and gift retail featuring Massachusetts related products, and convenient fueling choices including gasoline, diesel, and electric vehicle charging."
Highway service plaza bid process
Instead of seeking just one bidder for all 18 plazas, which are mostly along the Massachusetts Turnpike, the state will divide them up into three groups. Prospective bidders can submit proposals for one, two or all three bundles, the MassDOT said. The agency said it hopes this will "expand the pool of qualified bidders and encourage more competitive proposals."
"By structuring the plazas into multiple bundles, we are creating stronger competition and opening the door to new ideas that will modernize these facilities and deliver the best long-term value for Massachusetts," highway administrator Jonathan Gulliver said in a statement.
A public-private partnership commission will be formed this spring to oversee the process, appointed by the governor, Senate president, House speaker and state treasurer.
"We will seek industry input as we develop and issue this next contract opportunity, with clear expectations and criteria to deliver clean, safe, and welcoming service plazas for all," interim MassDOT Sec. Phil Eng said. "The public deserves and expects a top-notch customer experience, and this best value procurement will make that a priority."
Global Partners responds
Global Partners said it will again bid for the service plaza contract.
"Global Partners remains confident that we are the most qualified bidder to deliver a service plaza program that provides strong long-term financial value for Massachusetts taxpayers while advancing the priorities and values of the Commonwealth," the company's real estate senior vice president Max Slifka said.
The state will be meeting with prospective bidders later this month, and expects to put out a request for proposals this summer. MassDOT is hoping to have new leases in place by July 1, 2027.
