AUGUSTA – The state Tuesday reaffirmed its decision to give its lucrative liquor distribution contract to a Massachusetts company, prompting an Auburn competitor to contemplate suing the state.

Todd Prawer, owner of MaineCentric, an Auburn-based company, which also bid on the contract, said he was willing to fight the state’s decision in Superior Court.

Prawer appealed the decision to the state oversight agency last month, hoping it would be overturned. But on Tuesday the state Bureau of General Services upheld the decision to award the contract to Martignetti Co. of Norwood, Mass.

“If my legal counsel feels we have a justifiable case … I’ll take it to court,” said Prawer. “I’m prepared to fight as long as it takes.

“I feel I’ve been wronged. It’s a simple as that,” Prawer.

At stake is a $126 million contract to sell and distribute liquor to nearly 300 agency stores throughout Maine. The state decided to privatize its liquor distribution operation last fall as a way to make up a budget shortfall.

Martignetti pledged to pay $75 million upfront as soon as the 10-year contract was signed. That money would be used to fill a $125 million gap in the current budget. The state is counting on that money before the fiscal year ends June 30. But Kay Rand, a representative of Martignetti, said a prolonged legal challenge could delay the payment.

The state currently gets about $26 million a year from its wholesale liquor operation, or about $260 million over the 10 years. Gov. John Baldacci defended the $126 million bid proposal, saying additional revenue will stem from the contract because of liquor and tax payments from Martignetti.

Prawer said his attorneys will be studying the ruling to determine whether to take the case to Superior Court. He has company. Jeff Toorish, spokesman for Augusta-based Maine Liquors, which also bid on the contract, said his company is also considering filing suit. It appealed the initial decision along with MaineCentric; both companies have 30 days to file in Superior Court.

The companies were appealing the contract award based on the absence of specific rules regarding the bidding process and on the scoring system.

In its 20-page report defending the decision, the state said the appeal failed to show evidence that the process was “fundamentally unfair or an arbitrary or capricious decision.”

Attorney Gerard Petruccelli is also weighing options for his clients, Lewiston’s White Rock Distilleries and Somerville’s M.S. Walker. Both companies make spirits and are worried about Martignetti’s relationship as a liquor broker in other states.

The concern is if Martignetti gets the Maine liquor contract, the company would promote the brands of liquor it brokers in other states – an unfair competitive advantage over White Rock and M.S. Walker brands.

“You can’t be the liquor wholesaler in Maine if you’re a liquor broker in other states,” said Petruccelli.

The state scored each of the three bids based on quality of service, financial capacity, financial commitment, additional revenue and references. In the final tally, Martignetti scored 95 points, Maine Liquors 90.8 and MaineCentric, 83.7.

The three revenue-sharing proposals varied greatly. In its bid, Martignetti proposed a 50 percent profit sharing rate, predicting a profit to the state of $44.8 million over the 10 years. Maine Liquors proposed a 35 percent rate, with a profit to the state of $25.4 million.

MaineCentric differed in that it proposed a 20 percent revenue sharing rate and a $6.5 million deferred payout to the state based on certain performance criteria. It predicted a state profit of $23.8 million.

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