Healey Administration Revives Highway Service Plaza Redevelopment with New Oversight

BOSTON, MA – The Massachusetts Department of Transportation (MassDOT) is relaunching its effort to renovate and operate the state’s 18 highway service plazas, following the collapse of a previous bid process amid allegations of impropriety. Governor Maura Healey is establishing a new Public-Private Partnership (P3) commission to provide oversight for the project, aiming for a more transparent and competitive procurement process.

New Commission to Oversee Procurement

The P3 commission, expected to be fully appointed this spring, will consist of four members appointed by Governor Healey, each with expertise in transportation. The Senate President, House Speaker, and State Treasurer will each appoint one additional member . This commission, largely stagnant since its creation in 2009 through P3-enabling legislation, is being revived to provide “independent oversight throughout development of the Request for Proposals,” according to MassDOT .

Changes to the Procurement Process

MassDOT is implementing several key changes to address issues encountered in the previous attempt. The 18 plazas will be divided into three bundles, allowing bidders to submit proposals for one, two, or all three. This approach aims to foster greater competition. The contracts will be structured as design-build projects, rather than simple real estate leases, encouraging more comprehensive proposals.

Previous Bid Process and Collapse

In June 2023, MassDOT initially awarded a 35-year contract to Blackstone-backed Irish retailer Applegreen, a deal valued at nearly $1 billion . However, the decision sparked a legal challenge from losing bidder Global Partners, who alleged preferential treatment. Following litigation and the release of concerning emails, Applegreen withdrew from the contract. Subsequently, then-Transportation Secretary Monica Tibbits-Nutt resigned in October .

Investigation and Future Steps

The Office of the Inspector General released a report in February detailing flaws in the previous bidding process, including issues with conflict of interest disclosures and violations of procurement rules . MassDOT will host an industry day on March 25 for potential private partners and plans to release the Request for Proposals (RFP) this summer. State Senator Mark Montigny will hold a hearing with interim transportation secretary Philip Eng on March 24.

Long-Term Goals

“This is the first public private partnership procurement the commonwealth has undertaken for highway facilities, and our goal is to create a process that brings forward innovative proposals while delivering long term value for travelers and taxpayers,” said transportation undersecretary and highway administrator Jonathan Gulliver in a statement . The proposed 35-year leases for the renovated plazas will be backed by retail revenue.