Smart Ticketing System Services

Description

On 25th October 2015, Vix Technology (UK) Ltd (Vix), entered into an agreement for services in respect of a Smart-Ticketing System. This agreement was subsequently varied on 30 November 2016 to exercise an Extension Period to cover the provision of the Smart-Ticketing System until 18 November 2025.
The services provided under the Smart-Ticketing System relate to the provision, operation, maintenance and support of Platform Validator infrastructure, installed on the Metrolink light rail network that is owned by TfGM. This infrastructure, in conjunction with the current cEMV Middle and Transitional Back Office collectively enable the operation of TfGM’s contactless bankcard PAYG (Pay as you go) scheme on Metrolink and in conjunction with bank scheme transit rules. The infrastructure also supports the collection of ITSO events.
A Prior Information Notice (PIN) has been issued by TfGM in relation to the procurement of a Platform Validator Agreement. The notice sets out the anticipated scope of services in respect of the supply, installation, operation and maintenance of Platform Validator infrastructure as a replacement to current Smart-Ticketing System service that supports TfGM’s existing Platform Validator infrastructure 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/028526-2024
Whilst TfGM are proposing to initiate the procurement of a Platform Validator Agreement , its considered necessary to enter into a new agreement (until 30th June 2027) in respect of the current Smart-Ticketing System service with Vix Technology UK Ltd. This notice provides transparency around the reasons for this single source requirement, alongside the procurement of the new Platform Validator Agreement.
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 Platform Validator Agreement, 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 holder data and as a consequence are highly regulated. Maintaining the Smart-Ticketing System service contract until June 2027 will enable Tenderers that are participating in the Platform Validator (PVal) Agreement procurement to consider a phased approach to the implementation of their services;
•	TfGM is also seeking to procure a new Contactless Bankcard Middle and Back Office agreement that will be implemented in a phased approach as a replacement to the current cEMV Middle and Back Office contract that currently enables schemes such as contactless bankcard payment acceptance on Metrolink and elsewhere. A phased approach to transition to the new Contactless Bankcard Middle and Back Office agreement is anticipated, considering the integration of Platform Validator infrastructure and co-termination of the two agreements.
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.
The additional requirements at a value of £1.66 million procured under this new contract do not exceed 50% of the value of the original contract.