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File #: 2017-0272   
Type: Contract Status: Passed
File created: 4/6/2017 In control: Finance, Budget and Audit Committee
On agenda: 5/17/2017 Final action: 5/25/2017
Title: AUTHORIZE the Chief Executive Officer to negotiate and execute a performance-based Contract Modification to Cubic Transportation Systems Inc. Contract No. OP02461010 to extend the base contract through December 2024 for no upfront cost of development for Nextlink, a cloud-based connection system that will link the legacy TAP system to programs and services such as the TAP mobile payment app, Bike Share, fare subsidy programs, parking, ride-hailing services and more, in exchange for sales transaction fees of 0.5-3.0%, based on use of mobile app and retail fare sales for five (5) years of operation after development.
Sponsors: Finance, Budget and Audit Committee
Attachments: 1. Attachment A - Regional Account Integration Architecture, 2. Attachment B - Procurement Summary.pdf, 3. Attachment C - Contract Modification & Change Order Log.pdf, 4. Attachment D - DEOD Summary Cubic
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MAY 17, 2017
EXECUTIVE MANAGEMENT COMMITTEE
MAY 18, 2017

Subject/Action
SUBJECT: DEVELOPMENT OF NEXTLINK SOFTWARE FOR INTEGRATION OF THE SALESFORCE ACCOUNT-BASED SYSTEM WITH THE TAP SMART-CARD SYSTEM TO IMPLEMENT TAP MOBILE PAYMENT APP, BIKE SHARE, FARE SUBSIDY PROGRAMS AND RETAIL SALES TABLET SOFTWARE

ACTION: NEGOTIATE AND EXECUTE PERFORMANCE-BASED CONTRACT MODIFICATION

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to negotiate and execute a performance-based Contract Modification to Cubic Transportation Systems Inc. Contract No. OP02461010 to extend the base contract through December 2024 for no upfront cost of development for Nextlink, a cloud-based connection system that will link the legacy TAP system to programs and services such as the TAP mobile payment app, Bike Share, fare subsidy programs, parking, ride-hailing services and more, in exchange for sales transaction fees of 0.5-3.0%, based on use of mobile app and retail fare sales for five (5) years of operation after development.

Issue
ISSUE

Metro currently lacks an open payment system which limits the ability to provide a more seamless experience for TAP customers, including enabling such features as a mobile app. Metro is currently building an open, hybrid, cloud-based payment system with Salesforce that will enable connectivity with various programs. In order to accomplish full integration, this cloud-based system needs to link with the Cubic smart card TAP system. Nextlink will provide this connectivity and link with Bike Share in Summer 2017. The mobile payment app will begin phased implementation in Fall 2017, fare subsidy programs in Winter 2017, parking, ride-hailing services and electric vehicle car sharing in Spring 2018.

Discussion
DISCUSSION

Metro has been rapidly working to diversify and move toward a fare payment system that has a more open architecture and that is less proprietary. In December 2016...

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