MBTA approves amendment to fare payment system PPP

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The Massachusetts Bay Transportation Authority (MBTA) Fiscal and Management Control Board in the USA approved a contract amendment regarding the fare payment system Public-Private Partnership agreement involving the T and the consortium Cubic/John Liang. This marks a significant step toward implementing the revised transformative initiative approved by the Fiscal and Management Control Board in December 2019, locking in an achievable and enforceable schedule while procuring new technology that will allow the system to adapt to future changes in ridership and to implement new kinds of fare options. 
 
The amended contract totals US$ 935.4 million, including both the full capital cost of the system and a 10-year stream of operations and maintenance payments. Although this represents an increase of US$ 212.1 million in project costs compared to the contract approved in 2018, the new fare collection system remains cost-effective and is projected to collect over US$ 8 billion in fare revenue during its first 10 years of operation.
 
This amendment enables the MBTA to achieve all the original goals of the project under a new approach. Based on feedback from customers, advocates, and policymakers, the new approach will result in customer-focused upgrades to the existing and future systems. In addition, this board action reestablishes key milestones, includes new provisions that reduce the T’s construction risks, and allows the system to account for future changes within the payment industry.  

This amendment also allots more time for both testing and installation of the new system and customer migration. Working with stakeholders, the program reset establishes a more robust, thoughtful network of retail sales outlets and fare vending machines centered on the needs of T customers. In conjunction with that process, the MBTA has committed to a significant increase in the total number of vending machines to ensure adequate access.  
 
The new technology provided by the Public-Private Partnership offers reliability of equipment, readily accessible payment technology, and flexibility in fares and programs to further enhance access and equity for the MBTA ridership of the future.  
 
In 2018, the FMCB authorized the original contract to include US$ 356.8 million in payments for the capital cost of the new system and a 10-year stream of operations and maintenance payments totaling US$ 366.5 million for a total cost of US$ 723.3 million. The revised contract approved today includes US$ 723.3 million for the capital cost and a reduced 10-year stream of US$ 212.1 million in operations and maintenance payments, for a total of US$ 935.4 million.

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