The Aviation and Transit Department recently advertised a Request for Proposals (RFP) to provide the MET Transit Division with an Electronic Fare Collection System. This RFP was initiated to provide a solution to avoid passenger and driver interfaces for fare and ticket sales due to the current COVID-19 health situation.  This system will also have significant passenger conveniences over the current method of ticket sales and will provide MET staff with new tracking/utilization metrics.  MET currently sells paper passes for both monthly fares and limited ride punch cards; these passes are sold directly to the public by the bus drivers while on route as well as by office personnel at the customer service window at the METroplex. The Electronic Fare Collection System will allow passengers to purchase and pay for any type of MET Transit fare using their smartphone, iPad, or PC, and also to store the fare on their mobile device for ridership use.  Additionally, the system will allow for expanded options including sale of reloadable smart cards and other related technology expansions in the future.  These new fare features are what many of our younger riders have been inquiring about for some time.  This type of fare technology has been in use in the bigger urban markets for years, but the price point is now attractive enough that smaller Transit agencies, such as MET, can now afford to implement this technology.
 
The RFP was advertised in the Yellowstone County News on April 17 and 24, 2020; notices were posted on the City's Website, MET Transit's Webpage, and MET Transit's Facebook page.  Six proposals were received on May 08, 2020.
 
A RFP Selection Committee evaluated and ranked the proposals based on each vendor’s ability to meet the specifications and parameters identified in the RFP. The Committee voted unanimously to select Cubic/Delerrok as the vendor to provide the system.
 
The RFP process was utilized in accordance with the City of Billings Purchasing Policy, MET Transit Procurement Policy, and the Federal Transit Administration (FTA) recommended practices.

City Council may:

• Approve the Selection Committee's recommendation to accept the proposal from Cubic/Delerrok; or
• Disapprove the Selection Committee's recommendation to accept the proposal from Cubic/Delerrok and advise staff on how to proceed.

The proposed cost of the Electronic Fare Collection System includes a capital expenditure of $92,812.50 for equipment and to initialize service.  Annual service fees are charged as transaction fees by the vendor based upon passenger utilization of the system. MET Transit estimates the system's maximum annual service expenditure at $22,774.80 based upon CY 2019 ridership counts and assuming a 100% adoption rate.  If the initial adoption rate is only 60% then the service fee would amount to approximately $13,665.  Years two and three are estimated at the same 100% level, for a total maximum operation expenditure of $68,324.40 for the three-year period.  Total project costs including capital and operating expenditure for the three-year period based on the above figures is $161,136.90. Funds for this project are available in MET Transit's budget.
 

Staff recommends that the City Council accept the proposal from Cubic/Delerrok for MET Transit's Electronic Fare Collection System and authorize the Mayor to execute the Agreement with Cubic/Delerrok.