[Federal Register Volume 64, Number 142 (Monday, July 26, 1999)]
[Notices]
[Pages 40466-40469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18921]



[[Page 40465]]

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Part III





Department of Transportation





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Federal Transit Administration



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Electronic Payment System for Transit Fare Collection, Parking Payment, 
Electronic Toll Collection and Other Applications; Notice

  Federal Register / Vol. 64, No. 142 / Monday, July 26, 1999 / 
Notices  

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Request for Proposals for an Operational Test of an Electronic 
Payment System for Transportation and Other Applications

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The U.S. Department of Transportation (US DOT) announces a 
Request for Proposals from eligible applicants for an operational test 
of an electronic payment system for transit fare collection, parking 
payment, electronic toll collection and other applications. The US DOT 
is interested in identifying and evaluating issues associated with the 
establishment of partnerships between public transit service providers 
and other entities in the development and use of multiple-application 
electronic payment systems. The Department is specifically interested 
in an operational test of a payment system that includes a variety of 
applications, but must at a minimum include transit fare collection, 
parking payment and electronic toll collection.

DATES: Proposals shall be submitted by 4 P.M. EST on or before October 
25, 1999.

ADDRESSES: Proposals shall be submitted to Walter Kulyk, Director, 
Office of Mobility Innovation (TRI-10), Federal Transit Administration, 
400 7th Street SW., Room 9402, Washington, DC 20590 and shall reference 
Electronic Payment System Demonstration.

ELIGIBILITY: Only public transit agencies and metropolitan planning 
organizations (MPOs) in the United States are eligible to submit 
proposals in response to this RFP. In the case of MPO applicants, a 
statement explaining why a local transit partner is unable to submit 
the application and serve as a grantee must be included in the 
proposal. This eligibility restriction applies only to the agency 
submitting the proposal and serving as the applicant and does not limit 
project partners. All agencies submitting proposals in response to this 
notice consent to be publicly identified as respondents.

FOR FURTHER INFORMATION CONTACT: Bert Arrillaga, Chief, Service 
Innovation Division, (TRI-12), at (202) 366-0231 or Sean Ricketson, 
Office of Mobility Innovation, (TRI-11), at (202) 366-6678. This notice 
is posted on the FTA website on the Internet under http://
www.fta.dot.gov/library/legal/fr99toc.htm. Questions and replies 
regarding this notice will be posted on the FTA website under http://
www.fta.dot.gov/office/research/its.htm.

Contents

I. Background
II. Visions, Goals and Objectives
III. Project Development
    A. General
    B. Management Oversight
IV. Partnerships
V. National ITS Architecture
VI. Project Evaluation Activities
VII. Funding
VIII. Schedule
IX. Proposals
    A. Technical Plan
    B. Management and Staffing Plan
    C. Financial Plan
X. Proposal Evaluation Criteria

I. Background

    Recent developments in electronic payment systems and card 
technology present a unique opportunity for public and private 
institutions to establish mutually beneficial partnerships in the 
development and management of electronic payment systems for 
transportation. These developments include stored-value card systems 
created by financial institutions, contactless smart card systems for 
public transportation, electronic toll collection systems on highways 
and card systems for human service agency program management and 
benefits delivery. Private industry and public agencies foresee 
substantial benefits in establishing partnerships to develop further 
capabilities in electronic fee collection, delivery of benefits 
payments, funds transfer, settlement and clearinghouse functions. 
However, a number of institutional issues continue to restrict the 
formation of these partnerships. Through the development of an 
operational test this project intends to be a step towards identifying 
and addressing the complex institutional issues surrounding electronic 
payment systems in transportation.
    The decision to focus the scope of the operational test on 
integrating transit fare collection, parking payment and electronic 
toll collection systems rests on a number of factors. Based on 
responses the US DOT received from the Federal Register Notice, Request 
for Letters of Interest in an Operational Test of Transit Fare 
Collection and Other Applications, dated November 24, 1998, it is 
considered that the transit industry is progressing in the development 
of integrated transit payment systems. With limited research funds 
available, the US DOT feels that this operational test could facilitate 
the next step to the development of an integrated, multi-modal 
transportation payment system infrastructure. However, there is a 
concern that a project integrating transit, parking and toll collection 
(given the modal balance found in most areas) may have a limited 
transit component. Therefore, it has been determined that the lead 
applicant (the agency submitting the proposal and potential grantee) be 
limited to transit agencies or MPOs to ensure sufficient participation 
by a public transit partner. Because this eligibility is more 
restrictive than first presented in the Request for Letters of 
Interest, the response period to the RFP has been extended to ninety 
days.

II. Vision, Goals and Objective(s)

    The vision this operational test supports is one of a seamless 
transportation payment infrastructure where local transportation 
agencies and other organizations are not limited by institutional 
constraints in the development of transportation payment products. 
Examples of possible products are pre-paid integrated accounts for toll 
payment, parking and transit, or stored value cards for transit and 
parking meter use. Ideally, only local creativity and transportation 
needs should limit the development of such products.
    While the goals and objectives described below are focused on 
technical and institutional outcomes, the success of the test will 
depend upon whether it makes a positive contribution to the enhancement 
of local transportation service and operational efficiency. This focus 
must be maintained throughout the lifecycle of the operational test 
(planning, development, implementation and evaluation) by the grantee.
    The goal of the operational test is to provide solutions to transit 
and other service providers exploring the feasibility of developing 
multi-modal transportation payment systems and integrating 
transportation payment with other payment applications. Additionally, 
the operational test is intended to offer insight to those interested 
private sector partners (i.e., the electronic payments industry, 
financial services industry, and other industries) interested in 
integrating their services with a transportation payment system.
    The objective of the operational test is to evaluate and document 
the integration of transit fare collection, parking payment and 
electronic toll collection within one coordinated payment system. 
Additional objectives, if feasible, are to evaluate and document the 
viability and benefits of integrating transportation payment systems 
with other payment applications.

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III. Project Development

A. General

    The operational test will need to achieve an optimal balance of 
meeting local transportation needs while also providing a worthwhile 
national model of payment system coordination and partnerships.

B. Management Oversight

    The grantee and other local partners in the project will manage the 
operational test. Additional guidance will be provided by a U.S. DOT 
committee composed of transportation industry representatives. This 
committee is already established by the U.S. DOT to provide feedback on 
electronic fare payment activities. The grantee will consult with the 
committee prior to any significant changes in project scope or 
direction. For this project, the committee may be augmented by experts 
from other industries as needed. Concurrently, this committee will 
direct a separately funded effort being conducted by the U.S. DOT to 
develop and document a set of guidelines for the integration of 
electronic fare payment with other payment systems. These guidelines 
will provide recommendations for the integration of transit payment 
systems with other payment systems such as benefits transfer, toll 
collection, security, parking, retail, financial services, telephony, 
identification and access control. The results of the operational test 
are intended to contribute to the advancement of the guidelines 
document. In turn, the development of the guidelines document is 
intended to assist the committee, the grantee, and local partners with 
the implementation of the operational test.

IV. Partnerships

    The U.S. DOT will work with the lead public agency (applicant/
grantee) participating in the project to ensure the needed support to 
achieve the objectives of the field operational test. The U.S. DOT will 
verify that the required institutional, partnership and funding 
arrangements are in place. All necessary partnership arrangements and 
institutional agreements to support the proposed project need to be 
documented by the applicant in the proposal. The grantee and 
participating partners will be required to implement the first phase of 
the operational test within 24 months from the time the cooperative 
agreement is awarded.

V. National ITS Architecture

    The National ITS Architecture provides a common structure for the 
design of Intelligent Transportation Systems (ITS). The architecture 
defines the function that must be performed to implement a given user 
service, the physical entities or subsystems where these functions 
reside, the interfaces/information flows between the physical 
subsystems, and the communication requirements for the information 
flows. In addition, the architecture identifies and specifies the 
requirements for standards needed to support national and regional 
interoperability, as well as product standards needed to support 
economy of scale considerations in deployment. The proposal shall 
provide a ``Statement of Intent'' to develop a system consistent with 
the National ITS Architecture.
    Proposals shall also provide a ``Statement of Intent'' to design a 
system that is consistent with SAE J1708T Bus Vehicle Area Network, the 
Transit Communications Interface Profiles (TCIP), and other applicable 
protocols, or standards requirements as these emerge from the National 
ITS Architecture Development Program. Information about SAE J1708T may 
be obtained from the Society of Automotive Engineers, 400 Commonwealth 
Drive, Warrendale, Pennsylvania, USA, 15096-0001; phone: 412-776-4841, 
fax: 412-776-5760, or through the Internet at http://www.sae.org. 
Information about TCIP can be obtained on the TCIP homepage at http://
www.tcip.org or by contacting the Institute of Transportation 
Engineers, 525 School St., SW, Suite 410 Washington, DC 20024; phone: 
202-554-8050. Copies of the Architecture Definition Documents, the 
draft Standards Requirements Document, and the Standards Development 
Program from the Architecture Development Program are available from 
ITS America, 400 Virginia Avenue, SW, Suite 800, Washington, DC 20024, 
telephone 202-484-4847. Electronic copies are available on the ITS 
America Internet website, http://www.itsa.org. These documents provide 
insight into the definition of the National ITS Architecture, and the 
emerging approaches being taken toward standardizing interfaces that 
would support the integration of transportation management components.
    In developing plans for standards and architectural consistency, 
proposals should recognize the practical benefits of this requirement. 
The ability to integrate systems and exchange data among applications 
offers some of the strongest benefits of ITS. As an illustration of 
understanding of this point, plans should identify potential 
opportunities for integration and data sharing among fare payment and 
other systems and applications. Information about key indicators of the 
electronic payment component of the ITS metropolitan infrastructure and 
integration of it with other components can be found in, ``Measuring 
ITS Deployment and Integration: August 1998'' available through the 
Internet at URL Http://www.its.fhwa.dot.gov/cyberdocs/welcome.htm, the 
report is document number 4372 in the Electronic Document Library 
maintained at this website.

VI. Project Evaluation Activities

    A major goal of the US DOT is to promote the development of 
innovative applications of advanced technologies. In order to encourage 
the widespread adoption of technological innovations, data and results 
from the operational test must be analyzed, documented and reported. 
Accordingly, evaluations are an integral part of the operational test 
and are critical to the success of the National ITS Program.
    This electronic payment system operational test will be evaluated 
by a US DOT contractor funded separately by the US DOT. The contractor 
will develop an Evaluation Plan which will specify the data collection 
requirements which will enable an assessment of the achievement of the 
goals and objectives of the National ITS Program applicable to this 
project as well as the goals and objectives of the implementing 
organizations. The contractor will assemble all the data collected in 
accordance with the Evaluation Plan, analyze the data, and prepare the 
Evaluation Report. The Evaluation Plan will also include an assessment 
of the technological issues, operational issues, customer acceptance, 
system reliability, attitudes of implementing organizations, 
implementation and continuing operational costs, integration issues, 
and a variety of institutional issues including partnership 
arrangements, legal issues, clearinghouse operation, the reason for 
selecting the type of system (closed or open), and the success in 
obtaining multiple agency participants.
    The operational test partners (all participating agencies and 
institutions) will be involved in all phases of the evaluation. 
Partners will be expected to provide the local goals and objectives, 
review and comment on the Evaluation Plan, assist the contractor to 
collect the data specified in the Evaluation Plan (including any 
surveys that may be

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necessary), provide information on external factors that may affect the 
project's results, and review and comment on the Evaluation Report 
prepared by the evaluation contractor.

VII. Funding

    Federal funds available for this operational test are $2.33 
million. Federal funding shall not exceed 50% of total project costs.
    Implementing organizations will be required to furnish the 
specified evaluation data and perform reviews of evaluation documents. 
No additional Federal funding will be provided for this effort. The 
evaluation activities conducted by the evaluation contractor will be 
funded separately by the US DOT.
    The US DOT, the Comptroller General of the United States, and, if 
appropriate, individual States have the right to access all documents 
pertaining to the use of Federal ITS funds and non-Federal 
contributions. Non-Federal partners must submit sufficient 
documentation during final negotiations and on a regular basis during 
the life of the project to substantiate these costs. Such items as 
direct labor, fringe benefits, material costs, consultant costs, and 
subcontractor costs, and travel costs should be included in that 
documentation.

VIII. Schedule

    The project must remain operational for a period long enough to 
obtain valid evaluation data. The data collection period will be for a 
minimum of twelve (12) months from the time that the project is fully 
operational (i.e., all elements are working as intended). Upon the 
completion of data collection there shall be a six (6) month period of 
analysis and report coordination before a final evaluation report is 
submitted. The system shall remain operational throughout the 
evaluation process until the final report is received by the US DOT, 
unless otherwise agreed to by the US DOT.

IX. Proposals

    The US DOT will select one operational test proposal for funding 
under this RFP. Applications should, where possible, focus on utilizing 
currently available technology. The Department is specifically 
interested in an operational test that includes transit fare payment, 
parking payment and electronic toll collection.
    Applications that offer the greatest potential for demonstrating 
and evaluating the benefits of using electronic fare payment in a 
multi-application transportation environment with at least one private 
sector partnership are the most desirable.

Proposal Criteria

    A proposal shall not exceed forty-five (45) pages in length 
including title, index, tables, maps, appendices, abstracts, resumes 
and other supporting materials. A page is defined as one (1) side of an 
8\1/2\ by 11-inch paper, line spacing no smaller than 1.5 with a type 
font no smaller than 12 pt. Proposals exceeding forty-five (45) pages 
are strongly discouraged. Ten (10) copies plus an unbound reproducible 
copy of the proposal shall be submitted. The cover sheet or front page 
of the proposal shall include the name, address and phone number of an 
individual to whom correspondence and questions about the application 
may be directed. Each proposal shall include a Technical Plan, 
Financial Plan, and a Management and Staffing Plan that describes how 
the proposed objectives will be met within the specified time frame and 
budget. These plans should be structured so that they contain the 
following information.

A. Technical Plan

General Requirements
    1. The technical plan must provide a general description of the 
local transit market, toll collection system(s), parking payment 
system(s), and other proposed payment system markets. Information shall 
include transit ridership statistics, toll plaza throughput statistics, 
parking systems and parking usage. Additionally, the technical plan 
must provide an outline of the current fare collection, toll collection 
and parking payment processes, and types of payment media currently in 
use. In addition, other potential public/private agency(s) involvement 
such as partnerships, merchants, retailers, etc. must be outlined.
    2. Proposals must include documentation of any existing or planned 
interagency agreements or public/private cooperative arrangements 
necessary for the conduct of the operational test.
Project Overview
    1. Define existing infrastructure (both physical and information 
technology) and support systems in place, e.g., current fare collection 
system and cash handling procedures, toll collection processes and 
parking collection processes as well as current systems of those 
additional non-transportation applications being considered for 
integration.
    2. Describe how the existing infrastructure will be expanded and 
used to support the proposed system. Identify existing technological 
and institutional linkages within and across modes.
    3. Describe the proposed system and how it will be integrated with 
other non-transportation applications and participating private sector 
institutions.
    4. Summarize the expectations of the proposed system (e.g. costs, 
benefits, risks, operations, maintenance issues, plans, and system 
support).
Technical Approach
    The Technical Approach will be judged on its ability to incorporate 
the requirements of a multi-modal, multi-application payment system 
within the transportation infrastructure. The U.S. DOT recognizes that 
a single payment instrument or technology may not meet all the 
stakeholders' needs in a region; however, proposals will be evaluated 
on demonstrated local willingness and capability to integrate the 
proposed services among the necessary partners in the transportation 
environment.
    Within the Technical Approach the following areas need to be 
clearly addressed:
    1. Define and describe the goals and objectives of the system, and 
the goals and objectives of each of the service providers participating 
in the proposed payment system. Address both customer service and 
operating efficiency.
    2. Describe the system design concept. Describe the extent of 
proposed system integration, type(s) of proposed media and/or payment 
mechanisms, settlement and clearinghouse processes, and partners.
    3. Describe implementation of the system in probable phases with 
funding for each phase clearly specified. Document the schedule of 
work, assumptions and technical uncertainties, and proposed specific 
approaches to resolve any uncertainties.
    4. Describe the approach by which the system design concept will be 
refined, developed, and operationally tested.
    5. Show evidence that the project team has considered service 
delivery issues. Examples include: Who will use any new payment media? 
What problems will it solve for the participating transportation 
providers? What will the benefits of the new system be and how will the 
project team market the system to the user?
    6. Describe the plan for concluding the operational test (Closure 
Plan), indicating whether hardware, software, and infrastructure will 
remain in revenue service, be sold, or returned to participating 
vendors, if applicable. Closure Plans may be contingent upon the 
results of the operational test, in

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which case more than one Closure Plan may be developed.

B. Management and Staffing Plan

    Provide names and positions of all personnel related to managing 
the project. Identify key management and control responsibilities for 
the overall program. Provide a timeline and define key milestones and 
deliverables for the project. Provide estimated professional and 
technical staffing in staff-months and staff-hours. Demonstrate that 
the project manager is capable, available and able to commit to a level 
of involvement that ensures project success. Include biographical data 
on key management personnel.

C. Financial Plan

    Provide a description of total project costs and of matching funds, 
if applicable.
    Provide a system budget identifying costs for system design, 
development, implementation, project management, operations, 
maintenance and evaluation support.
    The applicant's evaluation support costs shall include the 
following information:
    Breakdown costs identifying them by one of the following: (1) 
Local; (2) State; (3) Private; (4) Federal ITS; (5) Other Federal-aid; 
(6) Other (describe).

    Note: Costs attributed to Federal dollars proposed to be 
received through award of this operational test are Federal ITS.

    Provide cost estimates by phase by funding year as defined in the 
technical plan.
    All financial commitments to the project from both public and 
private sectors shall be documented in signed Memorandum of 
Understanding (MOU) and included in the proposal.
    The proposal shall provide an in-depth description and assessment 
of the total cost of achieving the objectives of the Electronic Fare 
Payment System field operational test. The Financial Plan should 
describe a phased approach that delineates what will be accomplished 
with the project funding.
    The proposal should provide a comprehensive, concise plan that 
ensures systems integration of the functions necessary to support an 
electronic payment system for fare collection. The plan shall include a 
discussion of the ways in which design, acquisition, construction, and 
other procurement activities will affect systems integration.

X. Proposal Evaluation Criteria

    All proposals must include a Technical Plan, Financial Plan, and 
Management and Staffing Plan that describes how the proposed objectives 
will be met within the specified time frame and budget. The primary 
evaluation criterion for the proposal will be the degree to which the 
proposal demonstrates the potential for successfully testing a multi-
use payment system with multi-modal transportation capability. Proposed 
projects must include viable transit fare collection, parking payment, 
and electronic toll collection components. Significant consideration 
will be given to those projects involving public agencies and private 
sector partners with previous work or experience developing and 
integrating electronic payment systems. Proposals must demonstrate 
local viability and must also show strong potential for providing the 
baseline for a national model. Proposals should emphasize the nature 
and arrangement of any public-private partnerships. Proposals should 
present the potential benefits as well as associated risks and costs to 
transportation agency partners. Significant consideration will be given 
to those projects with greater levels of private and local funding 
contributions.

    Issued on: July 15, 1999.
Gordon J. Linton,
Administrator.
[FR Doc. 99-18921 Filed 7-23-99; 8:45 am]
BILLING CODE 4910-57-P