CORRECTION Refer to Page 1 of the report

Transcription

1 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY CORRECTION Refer to Page 1 of the report TRANSMITTAL DATE: January 8, 2016 MEETING DATE: January 15, 2016 ITEM 15 TO: FROM: SUBJECT: Board of Directors Arthur T. Leahy Contract No. H Mobile and Online Ticketing and Maintenance System Recommendation to Exercise Option for Optical Readers Masabi, LLC Issue Development and installation of optical readers is required to enable the mobile ticketing application to be interoperable with Los Angeles County Metropolitan Transit Authority s (Metro) gated system. Recommendation It is recommended that the Board authorize the Chief Executive Officer to amend Contract No. H Mobile and Online Ticketing with Masabi, LLC (Masabi) to revise the scope of work to incorporate requirements for development and installation of optical readers in Metro s gated system and increase the contract funding authorization by an amount of $2,246,000 for a not-to-exceed contract funding authorization of $3,846,000. Alternatives The Board may: 1) Modify the amount of the contract funding authorization; or 2) Direct staff to issue a new request for proposal for these services. Background In March 2015, the Board in awarded Contract No. H to Masabi in an amount of $1,6800,000 for development of a mobile ticketing application. Since 2013, the Authority has used Radio Frequency Identification (RFID) chip enabled paper tickets. These tickets make the Authority s fare media compatible with the Metro s gated system and enable our customers seamless transfers between the two systems. However, this solution has a high cost (approximately $0.44 per ticket) and is incurred on every paper ticket sold, not just for passengers that require transfers. One Gateway Plaza, Floor 12 Los Angeles, CA 90012

2 Page 2 To determine how to reduce the ongoing cost of paying $0.44 per ticket, while providing customers with seamless transfers and an enhanced ticketing experience, the Authority conducted a review of available options, including various integrations to the Transit Access Pass (TAP) back office or the integration of an independent mobile validator as an addition to the Masabi mobile ticketing system already under development. Of the options reviewed, it was determined that the integration of an independent reader was the preferred solution due to the fact it provides the best customer experience, requires no change to existing back-end software, and enables future fare payment technologies. Furthermore, an independent reader ensures that customers only have to carry one piece of fare media their phone. This solution, while considerably less expensive than ticket vending machines, requires the installation of readers on Metro gates. These multi-format optical readers, similar to the readers in grocery stores, are a proven technology that will quickly and accurately allow the Authority s customers to transfer between systems with only the use of their smart phones. Masabi and the Authority will work closely and collaboratively with Metro and other partners to ensure that this solution is implemented quickly and without disruption to existing stakeholders hardware and software. This solution is an important step in the Authority s path toward a more open, more flexible, and less costly fare payment system. Rather than needing to visit vending machines and print tickets that are costly, riders will essentially have a vending machine where they want it most - in their pocket (smart phone). As formats and technologies change, the Authority will be able to provide customers with low-cost solutions that support smooth transfers to important partner agencies such as Metro. Scope of Work This amendment will allow Masabi to design, develop, test, and install a group of multi-format reader devices on Metro fare gates, allowing Metrolink riders to easily transfer to and from Metro. To enable a seamless rider experience, Masabi will install multi-format reader devices on key Metro fare gates, including all gates at Union Station. Readers will be positioned on gates to ensure rapid scanning, accessibility, and ease of use for customers. Masabi will employ its Inspect GateKit Validation software on readers to apply all relevant Metrolink fare rules. During October 2015, Masabi, the Authority, and Metro collaborated on testing of reader technology in Metro gates. This trial demonstrated that successful implementation of secondary fare readers is possible and that high customer throughput would be achieved. This trial validated the Authority s direction and the project deployment approach outlined below. Masabi will collaborate closely with the Authority and Metro on the rollout of multi-format readers. The parties will work together to test and implement the chosen reader technology.

3 Page 3 As part of the deployment process, the parties will agree on the best possible reader placement and installation approach. Support and maintainability will be a key focus of the effort, ensuring that readers work properly and can be maintained in all station environments. The reader deployment will act as an extension of the mobile ticketing system being deployed on Metrolink. For example, the project will use the same validation and back-office tools currently supporting handheld validation on Metrolink. All data on ticket scans and usage will be made available to Metrolink, Metro, and relevant partners through Masabi s back office suite, known as the Hub. Raw data and other usage reports will also be available. The reader devices will not directly interface with Metro s back office. However, at regular intervals, the devices will communicate with Masabi s back office, which will send full transactional logs and all relevant data to Metro s back office via a File Transfer Protocol (FTP) server for the purpose of reconciliation. Deployment Approach The successful deployment of optical scanner technology will follow a phased rollout approach. This phased approach will ensure that the project is delivered in a low-risk manner designed to maximize customer success. Phases include: Design: The entire design phase will be conducted in close coordination with Metro, the Authority, and all relevant partners. During this phase, all final technical and project decisions will be defined. Development: Masabi will perform all software development, unit testing, configuration, integrations, and limited enhancements to the JustRide platform to support this program. During this phase, an in-station trial will be completed in Metrolink stations to test the solution in a live environment. Final Hardware Sourcing: Following the trial deployment and validation of hardware selection, final production hardware will be sourced. Testing and User Acceptance: Following the trial testing of this deployment, Masabi will work closely with the Authority and its partner agencies to test system components, integrations, system acceptance, and resolve any bugs. Pilot: Once the testing and user acceptance phase is complete, Masabi will work with the Authority and its partner agencies to initiate a pilot deployment at 4-6 key stations to test the stability of the system at scale. Full Deployment: Once the pilot has been successfully completed, deployment to all Metro stations will take place.

4 Page 4 Disadvantaged Business Enterprise (DBE) / Small Business Enterprise (SBE) Requirements Due to the limited subcontracting possibilities associated with this solicitation, a zero goal for Disadvantaged Business Enterprise (DBE) participation was originally established for the mobile ticketing contract. At this time, with the addition of the scope for optical readers, staff requested a reassessment of DBE availabilities. The comparisons conducted within the Authority s market area (defined as Los Angeles County, Orange County, Riverside County, San Bernardino County, San Diego County, and Ventura County) and by specified industries and types of businesses identified in the project s scope, indicated that there are available DBE opportunities. Therefore, a three percent DBE participation goal was established for the additional scope for optical readers. Masabi has provided satisfactory services on the Mobile Ticketing contract. Therefore, it is recommended that the Board authorize the Chief Executive Officer to amend Contract No. H Mobile and Online Ticketing to Masabi in an amount not-to-exceed $2,246,000. Budget Impact The cost for development and installation of optical readers was not previously budgeted. This amendment will be funded by reprogramming funding included in the FY budget for the procurement and installation of ticket vending machines (TVMs). The budget includes $30.5 million for a TVM procurement, which is currently underway. Also under development is a comprehensive ticketing kiosk and retail sales network strategy. With the near-term availability of mobile and online ticketing, as well as other ticketing options that will be considered in the strategy report, the cost for procurement of new TVMs is anticipated to be lower than the $30.5 million budgeted. The deployment of optical scanner technology to attain interoperability with Metro s gated system is critical to the successful implementation the mobile ticketing application. The approach of reprogramming a minimal amount (7%) of funding budgeted for the TVM procurement will allow the Authority to proceed with developing and installing optical readers and maintain the current schedule for mobile ticketing. The Authority will work with the member agencies to reprogram $2.25 million of the $30.5 million previously approved in the Budget. Member agency shares will be calculated based on the all share formula allocation (see table below). MTA OCTA RCTC SANBAG VCTC Total All Share % 47.53% 19.78% 11.11% 14.39% 7.19% 100% All Share $ $ 1,067,524 $ 444,259 $ 249,531 $ 323,199 $ 161,487 $ 2,246,000

5 Page 5 Prepared by: Gary Thompson, Director, Special Projects Russell Case, Director, Fare Collection Services Andrew Conriquez, Senior Contract & Compliance Administrator Lia McNeil-Kakaris, Assistant Director, Contracts & Procurement Gary Lettengarver Chief Operating Officer Elissa K. Konove Deputy Chief Executive Officer