Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MAY 21, 2026
Subject
SUBJECT: TAP FARE MEDIA MANUFACTURING AND FULFILLMENT SERVICES
Action
ACTION: AWARD CONTRACTS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award the following five-year indefinite delivery/indefinite quantity (IDIQ) firm fixed unit price contracts for TAP fare media for Metro and TAP Partner agencies for a total Not-To-Exceed (NTE) amount of $30,149,315 for the initial three-year term, and $11,975,535 for the first, one-year option, and $12,028,294 for the second, one-year option, for a total NTE cumulative amount of $54,153,144, inclusive of sales tax, effective July 1, 2026, subject to the resolution of any properly submitted protest(s) if any.
Discipline 1 - TAP Contactless Smart Cards Manufacturing
1) Idemia America Corp. (PS128860000)
2) Giesecke & Devrient ePayments America Inc. (PS128860001)
3) Paragon ID High Point US, Inc. (PS128860002)
4) Cole Ticket Solutions (PS128860003)
Discipline 2 - Card Fulfillment and Distribution
1) Giesecke & Devrient ePayments America Inc. (PS128860004)
Issue
ISSUE
TAP fare media, including the TAP card, wearable, and sticker, is a key component to the Regional TAP Program. Since the program’s inception in 2006, approximately 45 million pieces of TAP fare media have been issued. With current contracts expiring on June 30, 2026, there is a need to procure additional stock to support the program’s continued growth.
Background
BACKGROUND
The Regional TAP System is one of the largest transit fare collection systems and currently supports 27 transit operators across Los Angeles County. Approximately 125 million fare transactions were processed through TAP across the region in 2025.
TAP fare media manufacturing encompasses the production of physical cards, wearables, and stickers, including material sourcing, printing, encoding (e.g., magnetic stripe, chip, or contactless), quality control, and secure packaging in compliance with applicable industry standards.
TAP fare media fulfillment involves the end-to-end processing of orders, including order intake, personalization, inventory management, packaging, distribution, and delivery tracking, ensuring accurate and timely issuance to end users.
In April 2017, the Board awarded six three-year contracts (with two one-year options) for $26.9 million. However, TAP fare media usage, demand, and inventory were impacted by the COVID pandemic, resulting in four no-cost contract modifications to extend the period of performance through June 2026.
Discussion
DISCUSSION
With the new contracts, the average manufacturing and fulfillment cost for a unit of TAP fare media is about $3 each, including personalization and logistics. 60 to 80 percent of these expenses will be partially offset by fees collected at TAP vending machines, TAP vendors, and online sales.
TAP usage has been steadily rising. Approximately 1.8M Full Fare TAP cards and nearly 350,000 Reduced Fare TAP cards have been issued within the past year.
Metro expects TAP fare media demand to continue to grow due to strong participation in reduced and discounted fare programs such as LIFE and GoPass, as well as upcoming major events including Super Bowl, Olympics and Paralympics. TAP fare media also remains necessary to support diverse fare policies and customer needs across the region.
To secure optimal pricing for the next five years, the Request for Proposal sought to maximize open competition among all smartcard suppliers and card personalization services. The resulting indefinite delivery/indefinite quantity contracts will be utilized on an as-needed basis, with Metro retaining no obligation to purchase a defined or minimum quantity of TAP fare media or services. Projected quantities are estimated only, with actual deliveries ordered and released as required.
TAP intends to multi-source fare media manufacturing across Idemia America Corp., Giesecke & Devrient ePayments America Inc., Paragon ID High Point US, Inc., and Cole Ticket Solutions. Orders will be primarily allocated to the lowest-cost company, subject to available production capacity and specialized procurement. Maintaining multiple active contracts is a critical risk-mitigation measure to ensure continuity of supply and protects against the production bottlenecks and supply chain volatility. Giesecke & Devrient ePayments America Inc. will serve as the exclusive provider for fare media fulfillment and distribution, as they were the only proposer for these services.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Gated stations require customers to use a TAP fare media to enter the Metro Rail system. Providing TAP fare media for gated stations has a positive impact on the safety of Metro Rail riders by limiting access to paying customers only, thus enhancing access control to Metro Rail stations.
Financial_Impact
FINANCIAL IMPACT
Funding has been included in the proposed FY2027 budget in Regional TAP Operating Project 300016. Since this is a multi-year contract, the cost center manager and Senior Executive Officer of TAP Operation will be responsible for budgeting for future years.
The costs of the contracts will be partially offset by fees charged to customers for each new or replacement TAP fare media.
Impact to Budget
The funding sources for Project 300016 in FY27 will continue to be a mix of Prop C 40%, TDA Article 4 and fare revenues. These sources are eligible for operating and capital improvements for both bus and rail.
Equity_Platform
EQUITY PLATFORM
TAP fare media are critical in ensuring equitable access to transit services, particularly for customers in Reduced Fare, LIFE and GoPass programs. In 2024, TAP use on Metro Bus and Rail increased by approximately 8%, which could be linked to growth in LIFE and GoPass enrollments, facilitated by the streamlined TAP enrollment process.
With the upcoming rollout of TAP’s new account-based features, TAP usage is projected to increase by an additional 8% to 10%, expanding the benefits to even more low-income and student riders. However, achieving these equity outcomes depends on maintaining a sufficient supply of physical TAP fare media to ensure every eligible rider can participate and ride not only on Metro but on 26 other TAP transit agencies.
Riders without smartphones or internet access will continue to use the Metro system as they currently do today. The existing fare payment methods or amenities will remain unchanged and TAP fare media can be purchased and reloaded at multiple customer touchpoints including TAP Vending Machines at Metro Rail stations, at 1,000+ vendor locations, onboard Metro buses, and at Metro Customer Centers.
Through these multiple touchpoints to purchase or obtain TAP fare media, Metro can continue to provide equitable and inclusive fare payment options across LA County.
The Diversity and Economic Opportunity Department (DEOD) did not establish a Small Business Enterprise (SBE) or Disabled Veteran Business Enterprise (DVBE) goal on this bench contract due to the lack of certified small businesses that perform the required services. One of the four firms that were selected as prime consultants, Cole Ticket Solutions, is an SBE-certified prime and made a 40% SBE commitment.
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 activities enhancing Metro’s existing TAP system 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 to 2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Approval of the recommendations are in accordance with the following goals:
1) Strategic Plan Goal #1: Provide high quality mobility options that enable people to spend less time traveling as part of an effort to manage transportation demand through fair and equitable pricing structures.
2) Strategic Plan Goal #2: Deliver outstanding trip experiences for all users of the transportation system by improving legibility, ease of use, and trip information on the transit system.
• 2.2: Metro is committed to improving legibility, ease of use, and trip information on the transit system.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The current procurement allows Metro to purchase TAP fare media and order personalization/fulfillment services necessary to continue the expansion of the TAP Program and to replace expired, lost or stolen TAP cards. The alternative would be to discontinue the purchase and use of TAP fare media and revert to the use of paper fare media. This action is not recommended because:
1) TAP provides customers with the ability to travel seamlessly across LA County.
2) TAP allows Metro and TAP participating agencies the ability to implement smart fare collection practices such as free and discounted interagency transfers, peak and off-peak pricing, timed passes, and fare capping.
3) TAP data provides accurate and meaningful information for in-depth ridership analysis and service planning.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract Nos. PS128860000 through PS128860003 for TAP contactless smart cards manufacturing and Contract No. PS128860004 for card fulfillment and distribution services, effective July 1, 2026.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Prepared_by
Prepared by: Dean Adams, Deputy Executive Officer, TAP, (213) 922-4058
Monique Pe, Senior Director, TAP, (213) 922-4034
David Sutton, Senior Executive Officer, TAP, (213) 922-5633
Manish Chaudhari, Senior Executive Officer, TAP, (213) 922-2097
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer, (213) 922-4471
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056
