The Massachusetts Department of Transportation (MassDOT) will reopen the bidding process to redevelop and operate 18 state highway service plazas in the state, the agency said in a statement shared with CSP Tuesday. Highway service plaza operator Applegreen, Dublin, had won the contract in June but in September it terminated its $750 million lease discussions with MassDOT.
MassDot said in the statement that it’s “preparing to reprocure the contract to rehabilitate, operate and maintain the 18 service plazas across the state.” No date was given.
MassDOT awarded Applegreen a 35-year lease to raze and rebuild nine rest stops and refurbish nine others across Massachusetts. Since then, Waltham, Massachusetts-based Global Partners LP, one of the losing bidders for the contract, had fought the awarding of the lease, even suing MassDOT.
Highway Administrator Jonathan Gulliver, who will oversee the bidding process, said in the statement, “These service plazas play a critical role for our residents, visitors, workers and economy. MassDOT’s focus has always been on delivering the highest-quality service plazas that offer the best 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. This will allow us to make any necessary changes to the RFP [request for proposal] to ensure we are attracting robust interest from highly qualified bidders and securing the best value possible.”
MassDOT said it will work with the current lease holders to ensure that travelers and workers do not experience disruptions to essential services.
“Earlier this year, after a lengthy, multistage procurement process, the MassDOT Board authorized Secretary Monica Tibbits-Nutt to award the transition and lease agreements for the service plazas to Applegreen,” MassDOT said. “After signing a transition agreement, and during the lease negotiation process, Applegreen made the decision to withdraw.”
Global Partners will bid again on the project, the company told CSP.
“MassDOT’s leadership realignment, coming just one day after the decision to rebid the service plaza contract, underscores what we have said from the beginning,” Mark Romaine, chief operating officer at Global Partners, said in a statement provided to CSP. “We are proud to have helped shine a light on those issues and to play a role in bringing greater transparency and accountability to one of the commonwealth’s largest public-private partnerships.
“From the start, our goal has been simple: to ensure that Massachusetts taxpayers, travelers and communities receive the fair, open and responsible process they deserve,” the statement continued. “We remain confident that a transparent rebid will lead to a better outcome for the commonwealth, one that delivers real value, modern facilities and trusted local stewardship. We look forward to participating in the new RFP process and to helping deliver that outcome.”
On Thursday on the Commonwealth of Massachusetts’ website, it was announced that Tibbits-Nutt stepped down from her positions as secretary of the Department of Transportation and CEO of MassDOT that day and agreed to continue as an advisor through Dec. 31 “to ensure a smooth and efficient transition for MassDOT.” Tibbits-Nutt plans to return to private industry, the announcement said.
The announcement also said Massachusetts Gov. Maura Healey has named Massachusetts Bay Transportation Authority (MBTA) General Manager Phillip Eng as interim transportation secretary.
Regarding Applegreen terminating its lease discussions, the company last month said in a statement shared with CSP, “After three months of good faith negotiations, Applegreen and MassDOT have not reached agreement on definitive terms for the redevelopment of 18 motorway service areas in Massachusetts. The open issues have significant implications for the commercial viability of the concession award. 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.”
MassDOT also said in its statement, “Day-to-day management of the service plazas is being transferred to the MassDOT Highway Division to ensure structured performance oversight, regular inspections and centralized corrective action.”
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