The Massachusetts Department of Transportation is rebidding a contract to rehabilitate freeway service bays after the original winning bidder pulled out of the project last month during the lease negotiation phase.
Irish operator Applegreen’s original $750 million plan included Boston-based Suffolk as the project’s contractor and Boston-based Upland Architects as the designer. But Applegreen pulled out of the project after the losing bidder, Waltham, Mass.-based Global Partners, filed a lawsuit alleging “inappropriate and prohibited” communications between Applegreen, Suffolk and MassDOT officials during the procurement process.
Global Partners also claims its bid would have resulted in nearly $900 million more in rental revenue for the state from plaza operations, which it attributes to an analysis by MassDOT’s own consultant. Applegreen and MassDOT dispute that number, according to media reports.
“These commercial realities have been combined with costly and ongoing threats of litigation from an opposing bidder that have jeopardized the project’s timeline and funding,” Applegreen said in a statement when it pulled out of the project.
MassDOT decided to rebid the project instead of hiring global partners for the rehabilitation, operation and maintenance of 18 service bays, including 11 along the Massachusetts Turnpike.
Mark Romaine, chief operating officer of Global Partners, said in a statement that his firm welcomes the rebidding process, “which reflects a shared commitment to transparency and 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 ready to present our transformative vision in the upcoming RFP so that Massachusetts can finally move forward with the revitalization of these critical public assets.”
A Suffolk spokesman declined to comment, but Suffolk denied Global Partners’ allegations in a letter to state Transportation Secretary Monica Tibbits-Nutt.
State Highway Administrator Jonathan Gulliver, who will oversee the new application, said rebidding the project will ensure transparency, competition and value for taxpayers.
“After careful consideration, we have determined that the best course of action to ensure the success of this project is to reinstate the contract,” Gulliver said in a statement. “This will allow us to make the necessary changes to the RFP to ensure we are attracting solid interest from highly qualified bidders and achieving the best possible value.”
The agency said an internal assessment concluded that contracting offers the best path to provide improved facilities and consistent amenities for travelers while ensuring fiscal accountability.
MassDOT also says it is conducting an industry review of the original procurement to identify potential improvements in upcoming RFPs. The revised application will be designed to encourage interest from a broader pool of qualified companies and strengthen the long-term success of the program.
