State & Local News
MassDOT Overhauls Highway Service Plaza Procurement
March 15, 2026
Massachusetts Department of Transportation (MassDOT) is revamping its procurement process for highway service plazas following an Inspector General report that identified significant flaws in the previous contract award to Applegreen. The original 35-year lease, valued at an estimated $900 million, covered 18 service plazas but was criticized for undermining procurement integrity. To address these issues, MassDOT will implement a new public-private partnership commission to provide independent oversight and split the plazas into three bundles to encourage competitive bidding. New leases under this revised process are expected to begin on July 1, 2027.
- Why this matters: Procurement professionals should note the shift toward enhanced oversight and bundling strategies aimed at increasing competition and transparency in long-term infrastructure leases.
- The introduction of a public-private partnership commission represents a novel governance model for highway facility procurements in Massachusetts.
- Contractors and bidders should prepare for segmented bidding opportunities across three plaza bundles, potentially lowering entry barriers and increasing competitive dynamics.
- This overhaul signals heightened scrutiny and accountability in state infrastructure procurements, emphasizing the importance of compliance and thorough proposal development.
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.
— Jonathan Gulliver, Highway Administrator
The OIG found that the combined effect of the flaws undermined the integrity of the procurement process. While no one finding was likely the fatal blow to this procurement, the OIG’s eight findings in what would have been a 35-year lease should give pause and demonstrate that this was not a model procurement.
— Jeffrey Shapiro, Inspector General
Agencies
Massachusetts Department of Transportation, Massachusetts Office of the Inspector General, Massachusetts Senate, Massachusetts House of Representatives, Massachusetts State Treasurer's Office
Vendors
Applegreen, Global Partners, Suffolk Construction
Contracts
Estimated $900 million (previous Applegreen contract)