Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JANUARY 15, 2026
Subject
SUBJECT: METRO EXPRESSLANES - BACK OFFICE SYSTEM
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 2 to Contract No. PS40164-2000 with TransCore LP for Metro ExpressLanes Back Office System (BOS) and exercise the first three-year option starting March 9, 2026 through March 9, 2029, in an amount Not-To-Exceed (NTE) $19,031,882, increasing the total contract price from $48,327,615 to $67,359,497.
Issue
ISSUE
A tolling BOS is required to enable Metro to efficiently operate the current I-10 and I-110 ExpressLanes. In 2018, Metro entered into an eight-year base contract (PS40164-2000) with TransCore LP to design, build, operate, and maintain the I-10 and I-110 ExpressLanes BOS. The existing contract is scheduled to expire on March 9, 2026. Staff is seeking to exercise Option 1 to add an additional three years of O&M to the existing Contract PS40164-2000. This will extend the contract through March 2029.
Background
BACKGROUND
The ExpressLanes BOS is a software-based system that serves as the system of record and provides critical functionality, including transaction processing, customer account management, transponder management, legally mandated interoperability, payment processing, and toll violation handling. The BOS is tightly integrated with two other core components of the ExpressLanes system: the Roadside Toll Collection System that handles roadside infrastructure and dynamic pricing, and the Account Services component that covers the staff and facilities needed to provide account support to ExpressLanes users.
PS40164-2000 was awarded to TransCore LP on January 25, 2018 to design, implement, the existing BOS. The board approved the Contract with an eight-year base and two three-year options, with subsequent board action to execute the options.
Discussion
DISCUSSION
The existing BOS is reaching the end of its base contract on March 9, 2026, after over five years of operation. Staff is requesting Board approval to exercise the first three-year option, extending the current contract through March 9, 2029.
The three-year extension will allow ExpressLanes to continue providing the systems and services including transaction processing, customer account management, and toll revenue collections, along with additional services. As of November 30, 2025 the current Metro ExpressLanes BOS processed 41.1 million trips from December 1, 2024 through November 30, 2025.
Pass-Through Costs
Staff have identified several costs to be handled as pass-through items on this contract, which eliminates markup on those items, reduces contract risk, translates into lower fixed unit price proposals, and therefore provides the best value for Metro. These include postage, mail house handling costs (e.g., printing), and communications leased lines.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
This Board action is not anticipated to have an impact on the safety of Metro’s patrons or employees. Further, this Board action is not anticipated to have any impact on drivers, including ExpressLanes customers. The BOS contract does not include any physical infrastructure on the Metro corridors.
Financial_Impact
FINANCIAL IMPACT
Funding for this Contract will come from toll revenues. The funds required for FY26 are included in the FY26 budget in Cost Center 2220, Project Numbers 307001 and 307002, Account 50308, Task 03.11.
Since this is a multi-year project, the cost center manager, the Executive Officer of Congestion Reduction, and the Deputy Chief Operations Officer of Shared Mobility will be responsible for budgeting the cost in future years.
Impact to Budget
The funding for this Contract is from toll revenues generated on the I-10 and I-110 ExpressLanes. Toll revenue funds are not eligible for bus and rail operating expenses outside of the ExpressLanes corridors.
Equity_Platform
EQUITY PLATFORM
This BOS contract delivers the ExpressLanes program with essential system capabilities to efficiently and effectively implement equity-oriented initiatives and programs to ensure low-income households are afforded equitable access to the ExpressLanes and their benefits. The BOS is required to enable, provide, and/or support all of the ExpressLanes program’s equity benefits, including but not limited to: administration of the Low Income Assistance Program, efficient deployment of a Pay-As-You-Go (PAYG) alternative, collection of revenues for disbursement through net toll grants to local communities, provision of incremental transit service subsidies, and faster and more reliable service for transit patrons on the corridors. Metro ExpressLanes currently has 19,229 qualifying LA County households actively enrolled in the Low Income Assistance Program, has awarded over $103 million in grants to improve the neighborhoods around the ExpressLanes corridors (52% of which are Equity Focus Communities), and offers transit users a time savings of 12 minutes per trip on average compared to the general purpose lanes.
The Diversity & Economic Opportunity Department (DEOD) did not establish a Small Business Enterprise (SBE) or Disabled Veteran Business Enterprise (DVBE) goal for Contract PS40164-2000 due to a lack of subcontracting opportunities. However, as a result of TransCore’s outreach efforts, they were able to identify and add an SBE subcontractor to perform a portion of the work. Based on payments the contract is 75% complete and the current level of SBE participation is 6.71%.
Vehicle_Miles_Traveled _Outcome
VEHICLE-MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
This item supports Metro’s systemwide strategy to reduce VMT through operational and maintenance activities that will improve, benefit, and further encourage transit ridership, ridesharing, and active transportation. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
The ExpressLanes program offers several programs that support VMT reduction including the Transit Rewards program to incentivize transit use and the Carpool Loyalty program to encourage ridesharing. Additionally, toll revenues are used to fund transportation corridor improvements that promote non-driving travel modes including pedestrian infrastructure enhancements, bicycle facilities, transit amenities, and more frequent transit service. Quantitatively, a recent report by the California State Transportation Agency indicates that roadway pricing strategies like congestion pricing (e.g., ExpressLanes) are estimated to produce an overall VMT reduction of 17% on average (CTP 2040).
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The ExpressLanes Back Office System contract supports Strategic Goal 1, providing high-quality mobility options that enable people to spend less time traveling by offering travelers on the corridor a reliable and convenient travel mode alternative.
The ExpressLanes Back Office System contract also supports Strategic Goal 2, delivering outstanding trip experiences for all users of the transportation system, by improving the customer experience for ExpressLanes travelers.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may elect not to extend the current contract for an additional three years of O&M for the existing BOS contract. This alternative is not recommended because it would create a lapse in the service provided to ExpressLanes customers. Further, the ExpressLanes program will be unable to process any new transactions or perform any customer account service activities effectively rendering the program inoperational.
Next_Steps
NEXT STEPS
Upon Board approval, staff will take the necessary steps to exercise Option 1 under Contract No. PS40164-2000 for continued operations and maintenance.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary PS40164-2000
Attachment B - Contract Modification/Change Order Log PS40164-2000
Attachment C - DEOD Summary
Prepared_by
Prepared by:
Rosa Zamorano, Senior Manager, Transportation Planning, (213) 503-0991
Stephen Lee, Senior Manager, Transportation Planning, (213) 407-4538
Tim Lew, Deputy Executive Officer, Congestion Reduction, (213) 418-3134
Mark Linsenmayer, Executive Officer, Congestion Reduction, (213) 922-5569
Shahrzad Amiri, Deputy Chief Operations Officer, (213) 922-3061
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by:
Conan Cheung, Chief Operations Officer, (213) 418-3034
