Transportation
MassDOT to Rebid $750M Contract for Statewide Highway Service Plaza Program
The contract's scope includes the rehabilitation, operation and maintenance of 18 Massachusetts' service plazas
The service plaza in Ludlow, Mass. along the Massachusetts Turnpike is one of 18 highway rest stops slated to be renovated under a contract that the Massachusetts Dept. of Transportation announced it is rebidding.
Kenneth C. Zirkel, CC BY-SA 4.0, via Wikimedia Commons
The Massachusetts Dept. of Transportation is rebidding a contract to rehabilitate highway service plazas after the original winning bidder withdrew from the project last month during the lease negotiation phase.
The original winning $750 million plan of Ireland-based retail operator Applegreen Ltd. included Suffolk to serve as the project’s contractor and Upland Architects as designer, both Boston-based. But Applegreen pulled out of the project after the losing bidder, Waltham, Mass.-based Global Partners, filed a lawsuit alleging “improper and prohibited” communications between Applegreen, Suffolk and state DOT officials during the procurement process.
Global Partners also claims its bid would have resulted in nearly $900 million more in rent revenue for the state from operations of the plazas, which it attributes to an analysis by Massachusetts Dept. of Transportation's own consultant. Applegreen and the agency dispute this figure, according to media reports.
“These commercial realities have been coupled with costly and continued litigation threats from an opposing bidder that have jeopardized the project's timeline and financing," Applegreen said in a statement when it pulled out of the project.
The Massachusetts Dept. of Transportation decided to rebid the project rather than hire Global Partners for the rehabilitation, operation and maintenance of 18 service plazas, including 11 along the Massachusetts Turnpike.
Mark Romaine, Global Partners’ chief operating officer, said in a statement that his firm welcomes the rebidding process, “reflecting a shared commitment to transparency and delivering the best outcome for the Commonwealth.
Romaine added, “Our proposal demonstrated guaranteed revenue for the Commonwealth, modern amenities, and a seamless guest experience from day one. 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.”
A spokesman for Suffolk declined to comment, but the firm did deny Global Partners’ allegations in a letter to state Transportation Secretary Monica Tibbits-Nutt.
State Highway Administrator Jonathan Gulliver, who will oversee the new solicitation, said rebidding the project will ensure transparency, competition and value for taxpayers.
“After careful consideration, we have determined that the best path forward to ensure the success of this project is to reprocure the contract,” Gulliver said in a statement. “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.”
The agency said an internal evaluation concluded that reprocurement offers the best path to delivering upgraded facilities and consistent traveler amenities while ensuring fiscal accountability.
The Massachusetts Dept. of Transportation also says it is conducting an industry review of the original procurement to identify potential improvements to the upcoming RFPs. The revised solicitation will be designed to encourage interest from a broader pool of qualified firms and strengthen the program’s long-term success.
