TfL issues OJEU for ticketing and fare collection services beyond 2015

27 March 2013  •  Source: Transport for London (TfL)

OJEU sets out requirement for best value in the provision and maintenance of all TfL’s front and back office revenue collection systems.

The Electra contract will take London’s ticketing systems into the next decade

Ten years on from the launch of Oyster, and after tens of billions of journeys made using the world’s most popular transport smartcard, Transport for London (TfL) has issued an OJEU notice for the contract to take the Capital’s transport ticketing systems into the next decade.

The Electra contract, which was posted to the Official Journal of the European Union (OJEU) on 27 March, will assume responsibility for the provision and maintenance of front and back office revenue collection systems for all of TfL’s services, including approximately 4,000 retail outlets, and at National Rail stations where Oyster is accepted.

This includes ensuring that all of the gates are maintained and available, that Oyster readers on buses and at stations, platforms and retail outlets are working reliably, that the systems transferring transactions from the Oyster readers to the back office are operating efficiently and that systems are integrated to support TfL’s plans for the widespread use of contactless payment cards across the network.

Boost for reliability

The new contract will begin in August 2015, when TfL’s current five year contract with Cubic Transportation Systems is complete.

Cubic took sole responsibility for revenue collection systems in August 2010 when TfL terminated the previous Prestige contract early, saving millions of pounds.

The Prestige contract began in 1998 with a consortium that included Cubic and was the structure behind the development and introduction of Oyster to London’s transport network.

The Electra contract term is for seven years with an early exit option at five years and extension options of up to three years.

Smooth handover

The value of the contract is up to £1bn over the 10 years.

The contract will be procured under the EU Negotiated Process which will involve a number of stages.

It will be awarded in October 2014, with a 10-month transition period to ensure a smooth handover of the system before the August 2015 start date.

In preparation for the new Electra contract, and in order to ensure a level playing field for all potential bidders, TfL took ownership of all of the ticketing system assets when the Prestige contract ended in 2010.

Best value

TfL holds all intellectual property for the Oyster and other ticketing systems, including drawings, specifications, source code, and software and hardware build guides.

Around 60,000 documents have been independently verified to ensure they are complete and provide sufficient information for a third party to understand, maintain and operate the system.

Matthew Hudson, TfL’s Customer Experience Head of Business Development, said: ‘Our aim for the procurement of the Electra contract is to ensure best value is achieved in the provision and maintenance of our ticketing systems, that services continue to be delivered reliably and to a high quality and that the successful bidder is up to the job of working with us on new technologies that will make ticketing an easier part of travelling for our customers.

‘The procurement will progress in stages and we will be making relevant material available to all bidders to ensure a level playing field is maintained for all potential contractors.’

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