liquidated_damages_memo-TVM_(1).docx

This is a memorandum from the Regional Transportation District (RTD) in Denver, Colorado, establishing liquidated damages for the Ticket Vending Machine (TVM) Replacement Project. The project involves the removal of 185 existing TVMs and installation of 173 new units, including 113 replacements at existing locations, 54 units along the East Colfax Bus Rapid Transit corridor, 1 unit at Civic Center Station, and 5 spare units, with an option to purchase 6 additional TVMs for Denver Union Station Bus Concourse. The memorandum, prepared by the Program Manager and addressed to the Purchasing Agent on May 27, 2025, establishes the contractual penalty framework for project delays.

The liquidated damages have been set at $350 per day for any period the project exceeds its performance timeline. This figure was calculated based on a three-year average of TVM revenue data across the 160-unit system, which generated $3.2 million in average annual cash revenue and $17.6 million in average annual credit/debit revenue, totaling approximately $57,000 in daily system-wide revenue. The per-unit daily revenue loss calculation of $356 ($55 cash and $301 credit/debit) served as the basis for establishing the daily liquidated damages amount, reflecting the anticipated revenue impact from TVM non-operation during project delays.