cEMV Middle and Transitional Back Office Agreement

Description

Following a procurement exercise in May 2022, Vix Technology (UK) Ltd (Vix) were awarded a 2-year contract (with two options to extend the agreement by a further twelve months) to provide TfGM with a middle and back office service to process contactless bankcard transactions in conjunction with Field Equipment infrastructure and TfGM’s Merchant Acquirer, and accordance with the transit rules that are set by the relevant card schemes. Information on this contract can be found on Contracts Finder:
Agreement for a cEMV Middle and Transitional Back Office System Service - Find a Tender https://www.find-tender.service.gov.uk/Notice/010330-2022?origin=SearchResults&p=1
A Prior Information Notice (PIN) has been issued by TfGM in relation to the procurement of a Contactless Bankcard Middle and Back Office (CBMBO) service. This notice sets out the anticipated scope of the Contactless Bankcard Middle and Back Office as a replacement to current cEMV Middle and Transitional Back Office and the proposed timing of the procurement . It is anticipated that the proposed procurement  will follow the Open Procedure and issue of a call-for competition during October 2024. A copy of this notice may be accessed on Contracts Finder by activating the following link:
https://www.find-tender.service.gov.uk/Notice/028525-2024
Whilst TfGM are proposing to initiate the procurement of a Contactless Bankcard Middle and Back Office, its considered necessary to enter into a new agreement (until 30th June 2027) in respect of an extension to the current cEMV Middle and Transitional Back Office service with Vix Technology (UK) Ltd. This notice provides transparency around the reasons for this single source requirement, alongside the procurement of the new Contactless Bankcard Middle and Back Office.
The decision to enter into a new contract with Vix Technology (UK) Ltd is necessary for the following reasons:
•	Although TfGM has initiated a procurement exercise for a Contactless Bankcard Middle and Back Office contract, any transitional arrangements that may be required in order to on-board the new service is likely to need to be progressed in tranches so as to minimise the impact on customer experience and service before, during and after transition to a new contract. Transitional arrangements will need to reflect that the services in question are complex and require the protection of consumer bankcard data and as a consequence are highly regulated, Maintaining the cEMV Middle and Back Office contract until June 2027 will enable Tenderers that are participating in the Contactless Bankcard Middle and Back Office (CBMBO) procurement to consider a phased approach to the implementation of their services;
•	TfGM is committed to implement a Rail pilot scheme that is expected to require initiation before the current cEMV Middle and Back Office expires and would require migration to the new Contactless Bankcard Middle and Back Office agreement, once awarded. To minimise the impact on customer experience and service, TfGM proposes that its Rail pilot scheme in Greater Manchester will be supported by the current cEMV Middle and Back Office contract until such a time as the scheme may be migrated (as a final stage of transition) to the new Contactless Middle and Back Office Agreement.
Although the additional services were not included in the original procurement, a change in contractor at this stage would cause significant disruption and cannot be made for economic and technical reasons, as there is a significant risk of disruption to the operation of light rail, bus and Rail pilot services in Greater Manchester, including the risk of disrupting the customer experience and service to the travelling public.