Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 19, 2026
Subject
SUBJECT: TAP THIRD PARTY VENDOR MANAGEMENT AND SUPPORT SERVICES
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a firm fixed unit rate Contract No. PS123711(2)000 with Cubic Transportation Systems, Inc. to provide TAP third party vendor management and support services, in the not-to-exceed (NTE) amount of $584,937 for the two-year base term, $285,176 for the first one-year option, $293,063 for the second one-year option and $301,190 for the third one-year option for a total combined NTE amount of $1,464,366, effective May 1, 2026, subject to the resolution of any properly submitted protest(s), if any.
Issue
ISSUE
The existing TAP Third Party Vendor Management and Support Services contract expires on April 30, 2026. A new contract is required to ensure uninterrupted in-field services and to support the TAP regional vendor network.
Background
BACKGROUND
Metro operates a Universal Fare System (UFS) to collect fares on behalf of 27 TAP transit agencies in Los Angeles County. One aspect of the UFS uses a smartcard with an electronic chip inside that is regionally branded as TAP. TAP regional transit agencies support nearly 10 million boardings a month via bus and rail across LA County. TAP’s complex fare collection system works seamlessly for customers and consists of over 520 passes from 27 transit agencies.
The Regional TAP vendor network consists of over 500 vendors that sell approximately $1 million in fare media each month, serving transit-dependent customers, occasional and frequent riders and tourists. The network consists of various vendor types, such as small businesses, grocery chains, check cashing locations, and public libraries. TAP vendors utilize a Regional Point of Sale (RPOS) device, which contains a smart chip reader to load transit fare onto TAP cards, including LIFE products and reduced fares, read card balances and provide fare-capping status updates to customers.
The vendor network is continually growing. In 2023, the Third-Party Vendor (TPV) Team within the TAP Department recruited 49 new vendors, including 45 Spanish-speaking vendors. In 2024, the TPV Team recruited an additional 21 new vendors, achieving 4% growth within Equity Focused Communities (EFC) and diverse communities. Overall, since 2020, the TAP vendor network has maintained an average year-over-year growth rate of 3%. The number of TAP vendors within each EFC can be found in Attachment C.
The TPV Team remains focused on strategic initiatives to ensure that TAP vendor locations remain accessible throughout LA County. Currently, 90% of TAP vendors speak English and Spanish. Additionally, vendors who speak Arabic, Korean, Russian, Armenian, Mandarin, Japanese and Vietnamese can also be located using the vendor directory on taptogo.net. Attachment D provides an outline of languages spoken at each vendor location. This accessibility is especially critical as the agency prepares for the 2026 FIFA World Cup.
In July 2014, the Board awarded a 36-month firm fixed unit rate Contract No. PS320203299 to Cubic Transportation Systems, Inc. for TAP third party vendor support services. Since then, TAP has leveraged this contract, along with subsequent modifications and extensions applied, to service the current network.
Discussion
DISCUSSION
The current TAP Third Party Vendor Management and Support Services contract with Cubic Transportation Systems Inc. ends on April 30, 2026. A new contract is needed to support the TAP Vendor Network of over 500 locations by providing technical and maintenance support, including but not limited to:
• Regional point of sale device (RPOS) set-up and fare product menu configuration
• End-to-end device testing
• TAP Program and RPOS device training
• In-field team: to conduct RPOS installations, support RPOS maintenance and repairs, and walk-throughs
• Detailed reports on RPOS installations and repair, inventory and service requests
• Support call communications via a dedicated 24/7 TAP vendor support line
• Inventory storage and maintenance
• Inventory asset tracking
In addition to the primary responsibilities above, the following requirements were added to the updated scope of work under this solicitation:
• Provide vendor support and training in all of Metro’s Limited English Proficiency (LEP) languages upon request
• Ability to service future Point of Sale (POS) devices introduced to the network
• Serve as the pass-through payment vehicle to third party suppliers for device repairs and replacements and recoup costs via contract with Metro
• Develop and maintain application programming interfaces (APIs) that will integrate inventory tracking, repairs and installations into Salesforce, which is Metro’s Customer Relationship Management (CRM) system utilized to create and maintain TAP vendor accounts, display vendor location information on taptogo.net and distribute mass emails and notifications
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this item will not impact the safety of Metro’s customers or employees.
Financial_Impact
FINANCIAL IMPACT
The funding for this service and support contract has already been approved in the FY26 budget in Cost Center 3020. Since this is a multi-year contract, the cost center manager and Senior Executive Officer of TAP are responsible for budgeting for this contract in future years.
Impact to Budget
The funding sources are a mixture of fare revenues and Proposition C 40%. These funds are eligible for bus and rail operations and are an appropriate source for TAP operations.
Equity_Platform
EQUITY PLATFORM
The TAP Third Party Vendor Management and Support Services contract is integral to maintaining a successful TAP vendor network. The TAP vendor network was established to increase the accessibility of fare products by offering numerous locations throughout LA County for customers to purchase and reload a TAP card. These locations allow riders, including the unbanked and those whose native language is not English, to purchase fare in cash or in their native language, which is important to those riders that live far from a TAP Vending Machine (TVM), Metro Customer Center or TAP partner agency transit center. Without TAP vendor locations, some riders would revert to paying cash for each ride and lose access to savings included with TAP such as: Metro’s two-hour free transfers, fare capping and reduced fares for eligible seniors, riders with disabilities and students. Additionally, Low Income Fare Is Easy (LIFE) riders frequent vendor locations to load their 20-free rides each month. Based on internal TAP transaction data from the transit report covering January 1 to November 1, 2024, TAP usage was recorded at 61%. By the same date in 2025, usage increased to 66%, reflecting a 5% growth. This rise can be attributed to various factors, including sales at TAP vendor locations.
Most of the businesses that make up the traditional vendor network are small, family-owned businesses who receive a commission on each fare sale. The businesses in the TAP vendor Network are strategically recruited to ensure they are near bus stops, serve communities where English is not the dominant language, and/or are in defined EFCs.
90.8% of TAP vendors are in EFCs (Attachment C) and 91.4% of TAP vendors offer services in more than one language (Attachment D). The Diversity and Economic Opportunity Department (DEOD) did not recommend a Small Business Enterprise (SBE)/Disabled Veteran Business Enterprise (DVBE) participation goal for this procurement due to the lack of certified small businesses that perform this service. Cubic Transportation Systems has demonstrated its commitment to small business inclusion by identifying one certified SBE firm to perform services under this contract.
Vehicle_Miles_Traveled_Outcome
VEHICLE MILES TRAVELED OUTCOME
Vehicle Miles Traveled (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.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through customer experience activities that will maintain 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.
*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
Recommendation supports:
• Strategic Plan Goal 1: Provide high quality mobility options that enable people to spend less time traveling
• Strategic Plan Goal 2: Deliver an outstanding trip experience for all users of the transportation system. This project will improve the speed and reliability of TAP card users across agency riders through the heart of some of the most congested areas in the Los Angeles County with some of the most equity focused communities.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may elect not to approve the recommendation. This option is not recommended as it will impact the accessibility of the TAP Vendor Network Program. New businesses will not be able to join the vendor network, and existing businesses will experience delays and loss of revenue if equipment is not replaced or serviced in a timely fashion. This could result in a decrease in the number of participating vendors. Ultimately, the largest impact will be on regional TAP customers who rely on vendors throughout LA County to purchase TAP fare.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract No. PS123711(2)000 with Cubic Transportation Systems, Inc. to provide TAP third party vendor management and support services, effective May 1, 2026.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Attachment C -TAP Vendor listing by EFC
Attachment D - TAP Vendor Listing by Language
Attachment E - Vendor-Cubic Satisfaction Survey Results
Prepared_by
Prepared by: David Sutton, Senior Executive Officer, TAP (213) 922-5633
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer, (213) 922-4471
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056
