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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Bill Greene, Chief Financial Officer |
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PRESENTER(S): |
Jerry Van Wie, Fare Systems Program Manager |
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Monica Morton, Fares Director |
TITLE:
title
Contract: Next Generation Fare Collection System (Scheidt & Bachmann, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve award and authorize Executive Director to execute contract and associated disbursements with Scheidt & Bachmann for the amount of $32,171,416 to replace UTA’s electronic fare collection system.
BACKGROUND:
In 2021, UTA conducted a fare systems study to review the organization’s fare objectives, assess the current state of its fare collection subsystems, identify the needs that aren’t being met by these subsystems, and recommend actions and strategies. This study reported disparate fare collection subsystems that have neared or exceeded their useful life and, in some instances, become unsupportable. Included in this study was a recommendation to procure a new, integrated, vendor-hosted, account-based, electronic fare collection system. UTA published an RFP for this purpose in May 2022.
In July 2022, after receiving responses to the RFP, a cross-functional selection committee thoroughly reviewed eight technical proposals. This 7-member committee then invited four of the bidders to come and bring their equipment on site to deliver a comprehensive demonstration of their proposed solutions. The committee also conducted agency reference checks and sought feedback from Finance and InfoSec subject matter experts (SME).
Following the system demonstrations, the committee selected two agency sites to visit from the list of references provided by the two highest scoring bidders. UTA staff conducted these site visits to get input from these agency stakeholders and to see the proposed fare systems in operation. Finally, the selection committee asked the two finalists to provide a ‘sandbox’ instance of their respective back-office solutions for further evaluation.
DISCUSSION:
The Committee has selected Scheidt & Bachmann (S&B) as the vendor that will be responsible for replacing UTA’s fare collection system. Included in this procurement, UTA will purchase and install new fare validation hardware for all buses and rail platforms, new ticket vending machines (TVMs) that will vend tokens for the closed-loop accounts, and mobile inspection devices to be used by authorized employees to perform electronic fare validation functions. Note that bus fareboxes are out of scope for this contract.
Scheidt & Bachmann will implement the new fare collection system in multiple phases throughout the next three years. The contract includes a three-year supply and deployment period followed by a five-year post-deployment services period. The Chief Procurement Officer has determined that this contract duration is reasonable due to the length of the implementation period and the industry standard for similar contracts. The total contract value over the eight-year period is $32,171,416.
UTA will enjoy the following benefits of the new fare collection system:
• Deliver fare system hardware with readily available replacement parts
• TVMs, validators, and inspection devices will all integrate with new vendor-hosted back-office system so that more riders can enjoy paying their transit fares with prepaid and reloadable accounts
• Preserve the rich ridership data generated by these fare collection systems and increase the capability to analyze ridership (journey) patterns for a larger percent of UTA riders
• Deliver a fare collection system that is fully compliant with PCI security standards to enable open payments
CONTRACT SUMMARY:
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Contractor Name: |
Scheidt & Bachmann, Inc. |
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Contract Number: |
22-03566 |
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Base Contract Effective Dates: |
April 1, 2023 thru Mar 30, 2031 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
NA |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
$32,171,416 |
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Procurement Method: |
Competitive Bid (RFP) |
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Budget Authority: |
2023 thru 2027 Capital Budget |
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ALTERNATIVES:
Continue to try to operate legacy fare collection systems with unsupported hardware.
FISCAL IMPACT:
The Adopted 2023 Capital Budget and Supporting 5-Year Plan fully fund this contract.
ATTACHMENTS:
Contract (redacted)