Nashua warehouse loses out to national chain for 20-year contract to store state’s liquor

CONCORD – The State Liquor Commission decided Tuesday to end a long relationship with a Nashua-based warehouse in favor of a 20-year contract with a national chain. The commission released a signed contract with Exel Inc. of Westerville, Ohio to provide warehousing services for the state’s liquor monopoly through the end of October 2013. Both of the liquor commissioners, Chairman Joe Mollica and Commissioner Michael Milligan, signed the agreement. Exel is wholly owned by DHL, one of the world’s largest distribution, shipping and logistics companies in the world whose warehousing clients include JC Penney, Sears, Office Depot, 7-Eleven and Williams-Sonoma. For decades, Law Warehouses has stored wine and liquor purchased by the state at its Nashua warehouse. A small amount of inventory is also placed at a state-owned warehouse space in Concord. The contract has been a source of controversy first because it does not require a vote of the governor and Executive Council. In 2009, the New Hampshire Legislature gave the SLC authority over its own budgeting and rendered it exempt from having to receive council approval for its contracts. During a recent meeting with the council, however, Chairman Mollica told councilors that he intended to brief them on this project. The commission’s director of enforcement, Eddie Edwards, had also raised questions about the warehouse contract process with an inquiry of Attorney General Michael Delaney. According to since-released documents, Edwards alleged that the commission’s hired legal adviser, former Deputy Attorney General Stephen Judge, had advised that liquor warehouse documents were private and did not have to be publicly disclosed. Edwards said he feared this decision could jeopardize the integrity of the bidding process. Ultimately, Delaney answered him that his office’s investigation did not find Judge had acted inappropriately in any way. Under the commission’s grant award, Law or any other unsuccessful bidders may by Dec. 5 petition for an internal review of the contract award. Kevin Landrigan can reached at 321-7040 or klandrigan@nashuatelegraph.com.