EXHIBIT A - SCOPE OF SERVICES.docx

EXHIBIT A - SCOPE OF SERVICES

(July 9, 2026)

Financial Products and Card Services for Transportation Subsidy Programs

INTRODUCTION

The Los Angeles County Metropolitan Transportation Authority (hereafter “Metro”) is seeking a qualified Contractor capable of providing prepaid cards, credit cards and/or other innovative financial products (that shall act as “Mobility Wallets”) to launch future Mobility Wallet Pilots. Metro may also use the prepaid cards, credit cards, or financial products to disperse funds for several other projects across its portfolio. Metro intends to establish a two-year base contract with one 2-year option that may be exercised at Metro’s discretion to support future phases, pilots, enhancements, and expansions of the Mobility Wallet, Universal Basic Mobility initiatives and open loop payment (payment for transit with existing debit/credit card) launched during FIFA World Cup in 2026. The base contract, together with the one optional extension, provides Metro with the flexibility to scale services, introduce new use cases, and respond to evolving program needs throughout Phase III. If the option is exercised, the contract will ensure uninterrupted support before, during, and after the 2028 Olympic and Paralympic Games.

BACKGROUND

Metro’s Vision 2028 Strategic Plan calls for removing mobility barriers, providing swift and easy mobility throughout LA County, and contributing to increased prosperity. To achieve these goals, Metro has implemented the emerging concept of Universal Basic Mobility (UBM).[footnoteRef:1] Since 2021, Metro has collaborated with the City of Los Angeles and key community stakeholders to implement the Mobility Wallet Pilot as part of the largest UBM program in the country. The Mobility Wallet pilot represents an innovative approach to expand access to transportation by providing thousands of low-income residents with a monthly budget for transportation modes of their choosing (except for expenses related to private vehicles) through a convenient and consolidated payment method. [1: Influenced by the idea of Universal Basic Income, Universal Basic Mobility (UBM) seeks to ensure that all people have the resources to get to where they need to go. This provision of basic mobility would allow more people to thrive economically and socially by enabling an adequate level of access to opportunity for everyone.]

Mobility Wallet Phase 1 – South LA - COMPLETE Phase 1 of the Mobility Wallet pilot enrolled approximately 1,000 low-income residents in South LA in 2023. Participants residing in select zip codes who met Low Income Fare is Easy (“LIFE”) eligibility requirements received a stipend of $150/month for 12 months.[footnoteRef:2] The subsidy was delivered through a custom prepaid card, limited to eight shared transportation merchant category codes (MCC). Participants could spend this money on traditional transit options like bus and rail, and a range of public and private mobility options such as ride-hailing services/taxis, electric vehicle rental, on-demand transit, e-bikes, and e-scooters. [2: The LIFE Program provides transportation assistance to low-income individuals in Los Angeles County. Eligible participants get 20 free rides a month or discounts on 15 transit agencies. ]

Mobility Wallet Phase 2 – LA Countywide – COMPLETE Phase II (completed as of 6/29/26) is based on the scaffolding of Phase 1, expanding access and eligibility across the county. In this second phase of the pilot, 2,000 eligible participants across LA County shall receive up to $1,800 for 12 months to spend on a variety of shared transportation services, including Metro Bus and Rail, city buses, Metro Micro, Bikeshare, Metrolink, E-scooters and bikes, taxi services, regional transportation services (Greyhound, Amtrak, and FlixBus), ride-hailing services (Uber/Lyft) and merchandise purchases at local bike shops. Phase II used a prepaid card (physical card) and corporate credit card (virtual card) to disperse funds to participants.

PROJECT OVERVIEW

Metro intends to award a structured contract with a two (2) year base period with a two (2) year optional extension, to support implementation of the Board-approved $40 million Universal Basic Mobility and Mobility Wallet program identified in the Mobility Concept Plan approved by the Board in November 2022 (Motion 2022-0781).

Base Contract: Mobility Wallet Phase 3 – LA Countywide – START 2027 Phase III will build on the structure and learnings from phases I and II and will improve customer experience and delivery of subsidies (amount to be determined) between 10,000 to 17,000 participants countywide. In this third phase of the pilot (planned for early 2027), Metro will collaborate with Caltrans to explore innovative ways to expand UBM under a partnership under a Federal ATTAIN grant. This partnership specifically will strive to expand the use of mobility wallets by including the merchant category for toll lanes and also exploring future innovations to utilize open payment for toll infrastructure and all modes of transportation towards improved equity and access for all. These collective efforts shall help expand the Mobility Wallet pilot to advance Universal Basic Mobility and create new opportunities to support broader transportation access needs, leading up to and during the 2028 Olympic and Paralympic Games, to advance the 40M line item identified in Metro’s Mobility Concept Plan to expand multi-modal transportation benefits to historically marginalized communities, specifically those most impacted by the 2028 Games. (See Board Report 2025-0048 | 2028 Mobility Concept Plan) The base contract will support Mobility Wallet Phase 3 and cover the processing and administration of up to $20+ million in Mobility Wallet subsidies funded through currently awarded grant sources, including Congestion Mitigation and Air Quality Program (CMAQ), Advanced Transportation Technology and Innovation Program (ATTAIN), and Carbon Reduction Program (CRP), with an anticipated performance period from Spring/Summer 2027 through Spring/Summer 2029. The base contract is expected to support between 10,000 to 20,000 Mobility Wallet cards with up to $1,800 (final subsidy amount subject to change), inclusive of physical and virtual card products, and all associated program administration, compliance, customer service, and reporting requirements as detailed in the submittal requirements and identified in page #9 of the SOW – Contractor Responsibilities (A-H).

Option 1: 2-year Optional Extension - Mobility Wallet Phase 4 & Beyond – Potential Start in 2029 LA Metro expects to have additional needs for card issuance for Mobility Wallets and other use cases for Open Loop Payment beyond the base contract contingent upon the identification of additional funding. Option 1 would authorize the Contractor to process up to $14 million or more (contingent on funding) in additional Mobility Wallet or other program subsidies during the period from 2029 through 2031, with pricing established in the base contract and held valid through 2031. We expect the issuance of 8,000 – 20,000 cards under this option.

The anticipated period of performance includes a two (2) year base period, with the option for one two (2) year extension. If the option is exercised, the total contract term will be four (4) years.

Exercise of Contract Option Upon completion of Mobility Wallet Phase 3 and achievement of the applicable Phase 3 milestones and performance requirements, Metro may, at its sole discretion, exercise Option 1 under this Contract to support future phases of the Mobility Wallet and Universal Basic Mobility programs. The exercise of Option 1 is contingent upon satisfactory Contractor performance, continued program needs, and the availability of funding, and does not require further competitive procurement.

Metro’s determination to exercise Option 1 may consider, but is not limited to, the Contractor’s compliance with schedule, service level requirements, customer satisfaction metrics, data reporting obligations, and accessibility standards, financial controls, fraud prevention measures, and successful administration of Phase 3 subsidy funds. Metro may also evaluate the Contractor’s ability to scale operations, support additional participants, and implement new use cases, merchant categories, or payment modalities.

If exercised, Option 1 shall be executed through written notice from Metro and shall authorize the Contractor to perform the defined optional scope at the pricing, terms, and conditions established in the base contract. Metro reserves the right to exercise the option in whole or in part, defer exercise, or elect not to exercise the option without penalty. Exercise of the option shall not obligate Metro beyond appropriated funds and shall remain subject to all applicable Board approvals and funding requirements.

PAYMENT STRUCTURE AND COMPENSATION FRAMEWORK

Cost Reimbursement and Billing Structure Metro intends to compensate the Contractor using a cost reimbursement payment structure that allows for flexible, scalable, and performance-based administration of transportation subsidy programs.

The payment structure is designed to support monthly, or quarterly billing cycles, milestone-based program deployment, and invoice-driven reimbursement for all eligible and allowable program costs. This framework ensures that Metro can efficiently administer large-scale subsidy programs while maintaining strong fiscal controls, auditability, and compliance with local, state, and federal funding requirements.

Funding Control and Metro Authority Over Disbursement Timing Metro shall retain sole authority and discretion over the timing, frequency, and amount of all subsidy disbursements to participant cards. The Contractor shall support Metro-defined disbursement schedules, including but not limited to:

· Quarterly pre-loading of subsidy funds or as determined by Metro

· Monthly or milestone-based subsidy disbursements

· One-time emergency or supplemental disbursements

· Targeted funding to specific participant cohorts

Payment Methodology Compensation under this Contract shall be based on a cost reimbursement model, subject to a not-to-exceed contract value, whereby the Contractor is reimbursed for actual, reasonable, and allowable costs incurred in the performance of the Work.

Reimbursable costs may include, but are not limited to:

· Card production, personalization, and distribution (physical and virtual)

· Payment processing and transaction settlement costs

· Banking, issuing, and program management fees

· Customer service operations and multilingual support

· Fraud monitoring, compliance, and security services

· Program administration, reporting, and data platform costs

· Technology integrations, APIs, and system configuration

· Program implementation, onboarding, and participant communications

Metro will not reimburse costs that are not directly attributable to the delivery and operation of the subsidy program or that are otherwise deemed unallowable under applicable federal, state, or local funding regulations.

Monthly or Quarterly Invoicing Structure The Contractor shall submit invoices on a monthly or quarterly basis, aligned with Metro’s fiscal quarters, unless otherwise approved in writing by Metro. Invoices shall reflect all eligible costs incurred during the billing period and shall be supported by detailed cost documentation.

Each invoice shall include, at a minimum:

· Itemized cost breakdown by cost category and program component

· Summary of services performed and deliverables completed during the billing period

· Subsidy funds processed and administered to track expenditures.

· Card volumes issued and active participant counts

· Transaction volumes and settlement totals

· Performance metrics and service level compliance summary

· Certification of accuracy and compliance with contract terms.

Metro reserves the right to require additional supporting documentation, including transaction logs, processor reports, banking statements, and subcontractor invoices, as necessary for audit and compliance purposes.

Subsidy Fund Flow and Financial Controls Subsidy funds administered through Mobility Wallets or other financial products shall remain the property of Metro at all times and shall be held in segregated program accounts. To strengthen financial oversight and minimize risk, subsidy funds shall be disbursed directly to the Contractor’s designated banking partner or to the Contractor if it is a regulated financial institution, rather than to the Contractor’s general operating accounts.

The Contractor shall:

· Establish program-specific trust, managing accounts, or custodial accounts for subsidy funds, ensuring funds are segregated from operational or corporate accounts and protected from commingling

· Provide full transparency into fund balances, disbursements, reversals, and expirations

· Support reconciliation of program funds on a monthly and quarterly basis, or as needed by Metro

· Provide the ability to return unused or expired funds to Metro upon request

· Support audit-ready financial reporting for all subsidy activities.

· Coordinate with Metro to align on funding draw schedules, performance-based disbursement triggers, and cash management protocols.

Metro shall only reimburse the Contractor for subsidy administration and processing costs. Metro shall separately authorize and fund participant subsidy allocations in accordance with approved program budgets.

Milestone and Performance-Based Payments In addition to monthly or quarterly cost reimbursement, Metro may establish milestone-based payments tied to program implementation phases, system launches, card issuance volumes, or other defined deliverables.

Milestone payments may include, but are not limited to:

· Program design and configuration completion

· System integration and testing acceptance

· Initial pilot launch and participant onboarding

· Scale-up readiness and production deployment

· Open loop payment enablement

Milestone payments shall be invoiced upon Metro’s written acceptance of the applicable deliverable.

Pricing Schedule and Rate Card The Contractor shall propose a detailed pricing schedule and rate card as part of its proposal, which shall be incorporated into the Contract and used as the basis for all cost reimbursement.

The pricing schedule shall include:

· Unit pricing for card issuance (physical and virtual) based on Tiers

· Per-account and per-transaction processing fees

· Monthly and annual program management fees

· Customer service pricing tiers

· Technology and integration fees

· Optional services and enhancements

Pricing shall be fixed for the base contract period and held valid through the option period unless otherwise amended by written agreement.

Flexibility for Future Programs and Use Cases This payment structure is intended to support not only Mobility Wallet Phases 3 and 4, but also future transportation subsidy programs, clean transportation incentive programs, toll credits, fare integration pilots, and other financial assistance initiatives across Metro’s portfolio. Metro may issue program authorizations, or written directives under this Contract to support additional use cases, subject to available funding and Board approval.

FINANCIAL INTEGRITY, RISK MITIGATION AND GRANT COMPLIANCE REQUIREMENTS

Metro as well as other departments such as the Office of the Inspector General may audit at any time throughout the life of Program. Contractor shall make available to auditors all files and documents related to the approval, award, and disbursement of program funds.

· In order to ensure compliance Contractor should at a minimum have the following information readily available:

· Contractor shall develop audit requirements that at a minimum meet Generally Accepted Government Auditing Standards, and applicable Office of Management and Budget circulars; and

· Contractor shall be available to meet with auditors as necessary and provide access to Program files as requested. Auditors have authority to access all Program information and shall not be limited in their inquiries for past or current information.

· Contractor shall meet with Metro program staff and/or designated staff for a post audit review meeting.

Bonding Requirements To protect public funds and ensure faithful performance of all financial and fiduciary obligations, the selected Contractor shall furnish bonding as outlined under SP-19 Performance and Payment Bond.

Grant Compliance and Flow-Down Requirements This contract is funded in whole or in part through state, regional, and/or federal grant funding sources, including but not limited to CMAQ and ATTAIN funds. The Contractor shall be fully subject to all applicable grant terms, conditions, and compliance requirements.

The Contractor shall comply with all applicable:

· Grant Terms and Conditions

· Federal, State, and local funding requirements

· Audit requirements

· Reporting requirements

· Record retention requirements

· Allowable cost requirements

· Financial accountability standards

· The Contractor shall ensure that all subcontractors, partners, and agents comply with all applicable grant requirements.

· Failure to comply with grant requirements may result in:

· Withholding payment

· Suspension of contract activities

· Repayment of disallowed costs

· Contract termination

· The Contractor shall cooperate fully with Metro, grantor agencies, and auditors.

Audit, Compliance, and Federal Grant Alignment The payment structure shall comply with all applicable federal, state, and local funding requirements, including but not limited to CMAQ, ATTAIN, and CRP grant rules.

The Contractor shall:

· Maintain complete financial records for a minimum of seven (7) years from the contract award.

· Support in providing required program documentation and financial records as required by Metro, state, and federal audits and program reviews

· Comply with federal regulations Uniform Guidance (2 CFR Part 200) cost principles where applicable[footnoteRef:3] and SP-12 and GC-44 in solicitation. [3: Uniform Guidance (2 CFR Part 200) is the set of federal regulations that standardizes how federal grants and cooperative agreements are managed. It applies to state and local governments, nonprofits, universities, and contractors that use federal funds.

It establishes rules for:

Financial management Procurement Cost allowability Audits Record keeping Subrecipient oversight

Financial Controls, Fund Safeguarding, and Risk Mitigation Requirements Due to the fiduciary responsibility associated with managing public subsidy funds, the Contractor shall implement and maintain robust financial controls and safeguards.

At a minimum, the Contractor shall:

Fund Segregation Maintain Mobility Wallet funds in segregated accounts separate from Contractor operating funds. Such accounts shall be designated exclusively for Mobility Wallet subsidy administration.

Custodial Protection Ensure funds are held in secure, regulated financial institutions, and protected from Contractor creditors, insolvency risk, or operational use.

Internal Controls Implement internal controls including:

· Segregation of duties

· Dual authorization requirements

· Transaction monitoring and anomaly detection

· Fraud prevention controls

· Audit trails for all financial transactions

Audit and Reporting Provide Metro with:

· Detailed transaction reporting

· Monthly reconciliation report

· Audit-ready documentation, including complete, accurate, and well-organized financial operations, and program records that clearly demonstrate compliance with contract requirements and allow expenditures and activities to be easily verified by auditors.

· Real-time or near real-time financial reporting capability

Liability for Loss The Contractor shall be fully liable for any loss, misappropriation, theft, fraud, or improper disbursement of Mobility Wallet.

Incorporation of Banking and Financial Institution Protections Where the Contractor operates as or through a regulated financial institution or payment processor, the Contractor shall maintain financial safeguards consistent with industry standards applicable to regulated financial institutions, including:

· PCI-DSS compliance

· Anti-Money Laundering (AML) compliance

· Know Your Customer (KYC) controls

· Fraud monitoring and transaction controls

· Secure custody of funds

· Regulatory compliance with applicable banking regulations

· Contractors shall disclose the regulatory status of the issuing bank and any relevant regulatory oversight.

Metro reserves the right to require additional financial protections as necessary to mitigate risk to public funds.

SCOPE OF WORK (SOW)

Time is of the essence for Contractor's performance under this Contract. Upon issuance of a Notice to Proceed by Metro, Contractor shall commence performance forthwith on any and all Work to complete Milestone identified in Phase 3 Milestones and Timeline considerations matrix; failure or refusal of the Contractor to fully and timely complete all tasks, deliverables, and Work for required Milestones shall constitute an event of default per GC-40 Termination for Default.

The following items outline the key elements that should be included in the SOW for the Prepaid Card, Credit Card Program and related financial products serving as Mobility Wallets. These elements establish the expectations for Contractor performance, deliverables, and compliance with Metro’s program goals and requirements.

Phase 3 – Mobility Wallet Scope Considerations for Contractor

The Contractor shall design, implement, and operate a prepaid card/credit card program and/or other innovative and emerging financial products to support Metro’s UBM and Mobility Wallet initiatives. The program must:

· Provide secure, compliant, and contactless prepaid cards (physical and digital) and/or related financial products that restrict usage to transportation-related transactions by Merchant Category Code (MCC) and/or Merchant Identification Number (MID)

· Ensure ease of access for participants, including low-barrier issuance, ADA-compliant interfaces, and multilingual support.

· Deliver transparent reporting and oversight tools to Metro for monitoring, evaluation, and program compliance.

· Launch no later than Spring/Summer 2027 (before June or sooner), with scalability for future phases.

Contractor Responsibilities A. Product Management Plan (PMP)

· The Contractor shall submit a Product Management Plan (PMP) for Metro’s approval. The PMP must include:

· Management of Work and Deliverables.

· Schedule and task implementation timeline.

· General product development cycle and update delivery schedule.

· Cost tracking and invoicing templates.

· Quality control approach.

· Contract performance management.

· Staffing plan and roles/responsibilities (e.g., RACI chart).

· Communication process between Contractor and Metro.

· Document control and management process.

· Risk management strategy and Metro notification protocols.

· Data security approach.

· Overview of each named Plan.

· Tracking and delivery of all SoS deliverables and named Plans.

· Management of loss, theft, and vandalism.

· Annual Plan submission with performance review and growth strategies.

· Incident/Emergency Management Plan.

· Training and Support Plans

· All technical documentation, including requirements, card specifications, and design concepts, from initial implementation through final card delivery.

· The PMP shall be a living document, updated as needed by the Contractor to reflect current conditions. Any changes made to the PMP and the project team must be submitted in writing for approval by the Metro project manager.

B. Payment Functionality

· Provide Europay, Mastercard, and Visa (EMV)-compliant prepaid cards, credit cards, or innovative financial products (emerging technologies) supporting contactless, Near Field Communication (NFC), and tokenized transactions.

· Ensure no overdraft, inactivity, ATM, or minimum balance fees are charged to participants.

· Enable in-app provisioning for Apple Pay, Google Wallet, and other major mobile wallets.

· Support virtual-only card issuance with optional physical upgrades.

· Implement technical safeguards to prohibit cash withdrawals, peer-to-peer (P2P) transfers, or other disallowed transactions.

· Provide automated disbursement of funds at defined intervals (monthly, quarterly, or customized), with ability to vary disbursement models.

· Offer the ability to implement cashback incentives tied to MCC codes associated with sustainable transportation (optional).

C. Administration and Program Controls

· Provide administrative data dashboards with transaction logging, aggregated and disaggregated data for opt-in participants, fraud monitoring reports, customer service reports, and monthly .csv reports customizable with Metro-specified fields, including.

· Ensure ability to limit fund usage to specified Merchant Category Codes (MCC)/ Merchant ID (MID) codes, with Metro able to adjust restrictions within agreed turnaround times (e.g., 24–48 hours).

· Provide functionality to sweep unused funds back to Metro at card expiration or upon request, with transparent fee disclosures.

· Offer tiered pricing for card processing fees, clearly outlining thresholds, rates, and any additional costs for custom development.

· Provide card personalization and branding options, including custom artwork, sleeves, and collateral.

· Distribute cards through multiple channels (bulk, mail, digital), meeting Metro’s timelines for distribution and activation.

· Provide options for custom development and integrations, including APIs, unique workflows, and user-interface adaptations.

· Ensure PCI DSS (Payment Card Industry Data Security Standards) compliance for all systems handling cardholder data, including secure storage, processing, and transmission of payment information.

· Implement robust fraud control and prevention mechanism, including real-time transaction monitoring, automated fraud scoring, and integration with national/international databases. Ensure access to detailed fraud reports and logs to support Metro’s internal auditing and investigations.

D. Customer Service

· Ability to provide balance-check tools via live agents, SMS, mobile app, and/or web portal.

· Operate a user-facing dashboard (web and mobile) with real-time balances, transaction history, customer service access, and card management tools.

· Maintain a multilingual customer support center, meeting Title VI requirements across at least nine specified languages (English, Spanish, Korean, Mandarin, Cantonese, Japanese, Russian, Thai, Vietnamese).

· Ensure service is available during extended hours, with escalation protocols and Metro feedback loops.

· Provide card replacement within 1 week (physical cards) and 48 hours (virtual cards).

· Maintain service quality with at least 80% CSAT/NPS customer satisfaction rating.

E. Access to Opportunity and Accessibility

· Issue cards without requiring Social Security Numbers (SSN), relying on alternative Know Your Customer (KYC) approaches (e.g., name, address, email, phone, date of birth, etc.).

· Ensure full ADA compliance, including tactile/visual card features and accessible digital platforms.

· Demonstrate prior experience serving undocumented and underserved populations, with clear compliance to federal banking regulations.

F. Program Implementation Support and Technical Requirements

· Develop and deliver a Program Implementation Plan that ensures full launch by Spring/Summer 2027 (June or sooner). Plans shall include major project phases (card program design, integration, testing, rollout, funding cards, administrative controls/access), staffing and resource allocations, banking/issuer approvals, risk management and mitigation strategies, and pilot recruitment and participant onboarding (if applicable).

· If managing participant intake, provide a solicitation and selection platform, including eligibility verification, randomization, and communications via SMS/email.

G. Deliverables

· Implementation Plan with detailed milestones and launch schedule.

· System design documents including security, compliance, and accessibility specifications.

· Prepaid Cards/Credit Cards (physical and virtual) distributed per Metro’s requirements.

· Program-specific trust, managing accounts, or custodial accounts for subsidy funds control and deployment.

· Digital Wallet/Apple Pay and Google Pay provisioning.

· Dashboards & Reporting Tools for both program administrators and users.

· Program/Product Management Plan to support ongoing program and customer support.

· Detailed and customized monthly data reports on transaction, fraud, and customer service data.

· Quarterly Performance Reviews outlining compliance, customer satisfaction, and program outcomes.

H. Data Reporting and Oversight

· The Contractor shall participate in weekly coordination calls with Metro.

· The Contractor shall participate in quarterly compliance meetings and submit relevant certifications confirming adherence to financial regulations, ADA standards, and Title VI.

· Metro reserves the right to conduct audits and spot checks at any time.

· To support Metro’s data reporting and analytics needs, the Contractor shall include at a minimum the following system features and capabilities in the proposed portal:

· Real-time and scheduled reporting capabilities.

· Customizable reports to meet Metro’s specific needs.

· Visualization tools for data analysis and presentation.

· Dashboards for monitoring key performance indicators (KPIs)

· User-friendly interface for data management and report generation.

· Advanced analytics to derive actionable insights from data.

· Tools for trend analysis and performance benchmarking.

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MOBILITY WALLET PHASE 3 MILESTONE AND TIMELINE CONSIDERATIONS

To ensure the successful execution of Mobility Wallet Phase 3, the Contractor shall adhere to the following milestone timeline. Dates are subject to change. Contractor may propose alternative milestones and deliverables schedules in the proposal. These milestones represent critical checkpoints that collectively support timely system design, testing, compliance validation, participant onboarding, and full program launch by Spring/Summer 2027 or sooner.

The milestone plan shall form a core component of the Contractor’s management plan submission. Contractors must integrate all required activities, deliverables, and deadlines into their management plan, including key dependencies tied to banking, financial, and regulatory processes (e.g., EMV/NFC compliance, PCI DSS compliance, KYC requirements, fraud protection, ADA/multilingual accessibility standards, and oversight by banking partners). The management plan must demonstrate how the Contractor shall monitor, manage, and report progress against these requirements to ensure full alignment with Metro’s program timeline.