part I and part II THA B-31970ehd.pdf
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- Solicitation number
- 23-557THA-BUSSY-B-31970
- Issued by
- Dupage County, Illinois
About this file
This document is a Sole Source Justification Form submitted by the Illinois State Toll Highway Authority (Tollway) requesting a one-year, $9.2 million sole source contract with Kapsch TrafficCom USA, Inc. to provide I-PASS transponders and related electronic toll collection equipment and services. The contract will cover the purchase of up to 100,000 transponders per month, including the transition to 6C sticker tags, as well as the purchase and maintenance of next generation roadside equipment necessary for toll transaction processing. As a member of the E-ZPass Group, the Tollway is obligated to use the transponder technology and equipment provided by the vendors selected through the E-ZPass Group's competitive procurement process, which currently includes Kapsch and TransCore.
The pricing for the required transponder equipment and services from Kapsch was determined to be lower than the other awarded vendor. The Tollway's electronic tolling operations and revenue collection, which totaled over $1.4 billion in 2021, are entirely dependent on the continued use of this transponder technology. Approval of this sole source contract is critical to ensure the uninterrupted supply of transponders to the Tollway's 8.1 million I-PASS customers and the ongoing operation of the electronic tolling system.
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Sole Source Justification Form
Version 7.01 Page 1 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
Sole Source Justification Form - Part I Section I - General Information
Department/Bureau/Section: Department of Business Systems
Need Identified Date: 10/31/2021 Supply/Service Need By Date: 11/01/2022
Project Title: Electronic Toll Collection Equipment and Services
Vendor: Kapsch TrafficCom USA, Inc.
Provide a description of the supplies or services required:
The Illinois Tollway is seeking a one-year sole economically feasible source contract in the amount of $9.2 million to provide I-PASS transponders and related equipment technology necessary to transmit electronic toll transactions from vehicles to the lane system host for further processing.
This contract will provide:
• Transponder purchases. Transponders are the in-vehicle radio frequency device mounted to the windshield of vehicles which accurately record and track tolling activity.
• Next Generation Roadside Equipment purchases. Next Generation Roadside Equipment is the transponder reader technology which includes transponder readers, antennas, and all other related transponder technology.
This equipment and technology enable transmission of toll transactions to the lane system host to ultimately collect toll revenue.
• Services include, as needed, repair and/or service of Next Generation Roadside Equipment as well as related project work necessary to upgrade equipment technology.
Value: Estimated Value of Initial Term, this Change Order or Amendment: 9,200,000
Will this Sole Source amend a Professional or Artistic Services contract? Yes No
*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.
Type: New Sole Economically Feasible Source
Section II - Proposed Term
One-Time Purchase Term Contract
Estimated Contract Begin Date: 11/01/2022
Estimated Contract End Date: 10/31/2023
Number of Potential Renewals: 0
Length of Each Renewal in Months: 0
Total Value of All Renewals: 0
If a Term Contract, does the term, including renewals, exceed 12 months? Yes No
Version 7.01 Page 2 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):
The Tollway does not operate on State-appropriated funds. Procurements are funded through toll revenue.
Section IV - Sole Source Justification
This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)
Compatibility of Equipment, Accessories, Replacement Parts or Service
Are there secondary justification(s) for this sole source? Yes No
Section V - Purchase History
Has the Agency or University Purchased these supplies or services in the past? Yes No
Term Term From Term To Value Description Contract Number Type
1 11/01/2021 10/31/2022 10,000,000 I-PASS Transponders and Transponder Equipment 21-0043 Sole Source
2 02/01/2017 10/31/2021 43,000,000 Transponder and Equipment Purchases 16-0138 Sole Source
3 03/05/2012 01/31/2017 60,566,000 Transponder Purchases and Transponder-Related Equipment 12-0040 Sole Source
4 09/30/2011 02/15/2012 5,000,000 Transponder Purchases 11-0196 Sole Source
5 08/17/2010 08/16/2011 10,000,000 I-PASS Transponder and Equipment 07-0016 Sole Source
6 08/28/2007 08/16/2010 30,000,000 I-PASS Transponder and Equipment 07-0016 Sole Source
7 07/20/2004 08/27/2007 54,179,127 Transponders and Equipment 03-6528 Sole Source
8 09/01/2003 04/15/2004 12,155,150 Transponders and Equipment Sole Source
9 04/01/2003 08/15/2003 3,691,500 Transponders and Equipment Sole Source
10 10/01/2002 03/01/2003 2,365,560 Transponders and Equipment Sole Source
If more than 10, or if other comments, explain:
The Illinois Tollway became a member of the E-ZPass Group in 2004 to achieve economies of scale while enhancing services for I-PASS customers. The benefits of E-ZPass membership included toll interoperability for customers of all member agencies with the provision that each member agency use the same transponder technology. As a member of the E-ZPass Group, the Tollway is obligated to use vendors contracted via E-ZPass RFP award as the technology suppler of transponders and related equipment and services.
Section VI - Business Rationale
Version 7.01 Page 3 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
1. Provide a detailed explanation of the need for the supplies or services:
Transponder technology is essential for detecting and charging electronic tolls and is responsible for the economic efficiencies and customer benefits provided through electronic toll collection. The Tollway anticipates providing up to 100,000 I-PASS transponders per month to customers across several fulfillment channels. Since March 2020, toll collection has been and will remain a 100% cashless operation which further necessitates this contract for electronic toll collection equipment and services. In 2021, the Tollway completed a major project to upgrade transponder technology at all Tollway plazas and lanes systemwide to a more advanced multi-protocol reader. Multi-protocol readers widen the spectrum of possible transponder types and has prepared the Tollway to issue 6C Sticker tags and propel Illinois toward national interoperability. In 2024 and through 2025, the Tollway will move forward with strategic initiatives to transition 8 million I-PASS customers from Time Division Multiplexing (TDM) transponders to 6C Sticker tags. This initiative will provide future cost savings to the customer and Tollway by reducing the purchase cost per unit from the current cost of $6.69 and the new contract cost of $6.20 to cost of $0.45 per transponder.
I-PASS electronic toll collection continues to be the Tollway’s most cost-effective solution for streamlining toll collection and improving customer service. The number of active I-PASS transponders issued to customers has grown to more than 8.1 million. The Tollway meets customer I-PASS transponder demands via retail sites (Jewel-Osco and Road Ranger). Transponder orders received by phone, mail, and through the Tollway’s website are filled by the Tollway’s transponder fulfillment services State Use provider (Ada S. McKinley).
The I-PASS program is ongoing; therefore, the business need requires the ability to continue an uninterrupted supply of I-PASS transponders to Tollway customers. Without this contract, the Tollway’s ability to continue purchasing I-PASS transponders would be jeopardized and the collection of toll revenue would be at risk.
The Kapsch contract ensures the Tollway’s ability to purchase I-PASS transponders and Next Generation Roadside Equipment (readers, antennas, etc.). This specific transponder technology is necessary for the Tollway to remain interoperable with the E-ZPass Group.
2. Provide a list and describe in detail the specifications required to satisfy the need:
The required goods and services include ongoing purchases of I-PASS transponders (transitioning to 6C sticker tags in 2023), Next Generation Roadside Equipment (transponder readers, antennas, and all other related transponder technology). The contract scope also includes services, as needed, for repair and/or service of Next Generation Roadside Equipment as well as related project work necessary to upgrade equipment technology.
$8,340,000 -- Transponder purchases to support 80,000-100,000 per month plus initial 6C sticker tag inventory
$541,275 -- Next Generation Roadside Equipment to accommodate new technologies necessary to read sticker tags and accommodate the purchase of transponder technology on newly constructed plazas and lanes.
$318,725 -- Services to repair roadside equipment as necessary, and related project work necessary to upgrade equipment technology.
$9,200,000 -- Total estimated capital expenditures.
Version 7.01 Page 4 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?
To enhance services offered to I-PASS customers and to control costs, the Tollway became a member of the E-ZPass Group through an intergovernmental agreement established in 2004.
The E-ZPass Program is the largest, most successful interoperable toll collection program in the world. It consists of 35 toll agencies/ companies in 18 states, servicing more than 25 million customer accounts linked to 41 million transponders, and supports the collection of over $13.2 billion in annual toll revenues of which more than $11.2 billion is collected electronically and over $5.1 billion is transferred between agencies through toll reciprocity programs. The benefits of the consortium allow customers to use their transponders on any other member agency toll road. Technically, this works because each member agency must use the same interoperable technology - transponder and transponder reader equipment. Historically, the E-ZPass Group has selected Kapsch as its transponder technology vendor via a competitively bid RFP, and that brand of transponder has been used to take advantage of interoperability among all member agencies. Upon award of the E-ZPass procurement, the sponsoring agency would execute a contract to the vendor who submitted the winning proposal. The Tollway would then proceed with procuring a sole economically feasible source contract.
To increase competition, the most recent RFP was written to allow multiple vendor awards. The E-ZPass Group, via sponsoring agency North Carolina Turnpike Authority (NCTA), is awarding to those qualified vendors providing technology that successfully completes certification testing. This will allow E-ZPass agencies to purchase best price from any of the awarded technology providers. Earlier this year, four vendors received preliminary awards. At present, two vendors, Kapsch TrafficCom USA (“Kapsch”) and TransCore LLP (“TransCore”), have successfully completed certification testing and have executed contracts with North Carolina Turnpike Authority (“NCTA”). In the coming months, the remaining two vendors who received preliminary awards earlier this year, Neology Inc.
(“Neology”) and Star Systems International (“Star”) will execute contracts with NCTA.
Via this request, the Tollway is seeking approval to contract with Kapsch. The intent of this request is to contract via sole economically feasible source with Kapsch for one-year until the state has vetted NCTA for future cooperative agreements with all 4 vendors. The Tollway will then pursue contracts with all four vendors.
Approval of this procurement will support the continuation of the I-PASS program by ensuring the provision of electronic toll collection equipment and services. Customers can purchase transponders via phone, mail, or by visiting the Tollway website. Customers can also purchase transponders in person at over 185 Jewel-Osco retail locations in the Chicagoland area, five Road Ranger retail locations in the Rockford area, the I-PASS business center in the Tollway’s Central Administration building in Downers Grove and at I-PASS kiosks at three Oases kiosks.
The Tollway is one of the largest electronic toll collection agencies in America. With 100% of tolls collected being electronic, and revenue of $1.4 billion in 2021, the Tollway’s operations are predicated on the continuing use of transponder technology.
The impact of non-approval places the agency in breach of contract as it cannot meet the terms of its agreement with the E-ZPass Group. A condition of E-ZPass Group membership is using technology and equipment from the E-ZPass Group’s competitively selected vendors.
4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:
A condition of an E-ZPass Group membership is using approved uniform, standard transponder technology. At this time, Kapsch is one of two vendors currently contracted to provide transponders to all E-ZPass member agencies. Kapsch's pricing for the required transponder equipment and support servcies are lower in price then the only other awarded vendor. As a member of the E-ZPass Group, the Tollway is obligated to use vendors selected as the technology suppliers of transponders and transponder reader equipment through an intergovernmental agreement. The benefits of the consortium allow customers of any member agency to use their transponders on any other member agency’s toll road. This works because each member must use the same interoperable type of transponders. Additionally, due to patent considerations, transponders require compatible readers.
5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No
Version 7.01 Page 5 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
5a. If no, why weren't alternatives evaluated?
Kapsch was one of four vendors selected via an E-ZPass Group RFP award. Currently, Kapsch and TransCore have executed seven-year contracts with additional renewal options with the sponsoring agency NCTA. As part of this RFP process, extensive testing and technical evaluation of qualified offerors had taken place for over a year, at a cost of $2 million to the E-ZPass Group. Additionally, as a member of the E-ZPass Group, the Tollway is obligated to utilize the selected vendors as transponder technology suppliers through an intergovernmental agreement. Tollway reviewed both TransCore and Kapsch's offerings and pricing for the product and services needed for this one-year term and the pricing offered by Kapsch was lower.
6. Are there resellers or distributors?
Yes No N/A
7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?
The prices were determined by responses to the RFP solicitation conducted by the E-ZPass Group in 2021. The procurement through the E-ZPass Group, via sponsoring agency NCTA, combines the buying power of 38 separate agencies to achieve volume discounts.
One of the main strategic and economic benefits of E-ZPass membership is the use of standardized technology to achieve interoperability. Additionally, to maximize competition and cost efficiencies, the RFP was written to allow multiple vendor awards. This will allow E-ZPass agencies to purchase best price from any of the awarded technology providers. Tollway reviewed both TransCore and Kapsch's offerings and pricing for the product and services needed for this one-year term and the pricing offered by Kapsch was lower.
8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?
Yes No
8a. If yes, please provide details regarding future obligations and/or needs:
Without this sole economically feasible source contract, the Tollway could not supply transponders to its 8.1 million I-PASS customers.
This contract provides business continuity by ensuring the supply of I-PASS transponders and associated transponder technology.
This transponder equipment and technology enable transmission of toll transactions to the lane system host to ultimately collect toll revenue. The service needs related to repairs are minor; however, needs related to system upgrades are dictated by technical requirements and are therefore necessary and vital to continued operations. This contract is critical to electronic tolling systems and the technology provided ensures the resulting revenue collections. As a self-funded agency, the Tollway, its public stakeholders, and its bondholders rely on the revenue that is assured through the continued performance of its electronic tolling systems and technology. There is no economically or technically feasible alternative for an interim solution. A sole economically feasible source contract to continue supporting ongoing operations (including road maintenance, snow removal, and law enforcement), as well as the Move Illinois Capital Program, is essential for the Tollway, its bondholders, the State of Illinois, and its citizens.
9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?
The impact of non-approval places the agency in breach of contract as it cannot meet the terms of its agreement with the E-ZPass Group. A condition of E-ZPass Group membership is using technology and equipment from the E-ZPass Group’s competitively selected vendors. Kapsch was one of four vendors selected via an E-ZPass Group RFP award, via sponsoring agency NCTA. Currently, Kapsch and TransCore have executed seven-year contracts with additional renewal options with the sponsoring agency NCTA. The Tollway is one of the largest revenue-generating toll roads with the largest volume of electronic toll transactions in North America. The transponder and related transponder reader equipment is a critical component to the business operation and for toll collection. Transponders and transponder reader equipment are an absolute necessity for toll collection. Therefore, the approval of this sole economically feasible source procurement is critical to continue operations and mitigate the risk of revenue loss.
10. Is there any additional information you would like to add to justify this sole source?
As a self-funded agency, the Tollway, its public stakeholders, and its bondholders rely on the revenue that is assured through electronic tolling collection. There is no economically or technically feasible alternative for an interim solution. A sole economically feasible source contract to continue supporting ongoing operations is essential for the Tollway, its bondholders, the State of Illinois, and its citizens.
Version 7.01 Page 6 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
Section VII
Requesting Department Representative
Requesting Department Signature Required
I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.
Date Sep 22, 2022
Printed Name Michael Catolico E-mail Address mcatolico@getipass.com
Phone Number 630-743-3709
State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required
I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)
E-mail Address EOccomy@getipass.com
Phone Number 630-241-6800 x4625 Date Sep 22, 2022
Printed Name Eric Occomy
Agency Bureau/Division Head or University Purchasing Director and Not a Designee
SPO Approval and Signature Required
I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.
I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.
State Purchasing Officer Signature Phone Number 217-720-6643 Date
Printed Name David Papp E-mail Address David.Papp@Illinois.gov
Version 7.01 Page 7 of 7
Bulletin Reference Number 23-557THA-BUSSY-B-31970
Requesting Agency/University Illinois State Toll Highway Authority
Sole Source Justification Form - Part II Section I - General Information
Project Title Electronic Toll Collection Equipment and Services
Vendor Kapsch TrafficCom USA, Inc.
Initial Date of Procurement Bulletin Posting 09/26/2022
Was a Sole Source hearing held per 30 ILCS 500/20-25?
Yes - Complete Section II and III below (Section II will only be visible when this option is selected)
No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required
Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.
Based upon my review, I authorize the Agency/University to proceed with the following Changes.
Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.
Other
CPO Signature CPO Phone 217-558-2231
Printed Name Ellen H. Daley Date
CPO E-mail Ellen.H.Daley@Illinois.gov
Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?
If yes, what was the original contract value?
*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.
Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?
If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:
Section III - Funding Source Select the type of funding to be used (Check all that apply):
Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?
Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?
Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale
1. Provide a detailed explanation of the need for the supplies or services:
2. Provide a list and describe in detail the specifications required to satisfy the need:
3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?
4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:
5. Has the Agency or University considered alternative supplies or services to satisfy their need?
5a. If yes, name the alternative vendors whose supplies or services were evaluated:
5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:
5c. Explain how the market evaluation was conducted?
*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).
5a. If no, why weren't alternatives evaluated?
6. Are there resellers or distributors?
7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?
8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?
8a. If yes, please provide details regarding future obligations and/or needs:
9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?
10. Is there any additional information you would like to add to justify this sole source?
Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.
State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?
Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.
The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:
The following relevant documents are attached:
Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 Ellen.H.Daley@Illinois.gov
| BulletinNum: 23-557THA-BUSSY-B-31970 |
| Requesting: Illinois State Toll Highway Authority |
| CurrentPage: |
| PageCount: |
| Department: Department of Business Systems |
| NeedIdentifiedDate: 10/31/2021 |
| NeedbyDate: 11/01/2022 |
| ProjectTitle: Electronic Toll Collection Equipment and Services |
| ProjectTitle: Electronic Toll Collection Equipment and Services |
| Vendor: Kapsch TrafficCom USA, Inc. |
| Vendor: Kapsch TrafficCom USA, Inc. |
| Description: The Illinois Tollway is seeking a one-year sole economically feasible source contract in the amount of $9.2 million to provide I-PASS transponders and related equipment technology necessary to transmit electronic toll transactions from vehicles to the lane system host for further processing. |
This contract will provide:
• Transponder purchases. Transponders are the in-vehicle radio frequency device mounted to the windshield of vehicles which accurately record and track tolling activity.
• Next Generation Roadside Equipment purchases. Next Generation Roadside Equipment is the transponder reader technology which includes transponder readers, antennas, and all other related transponder technology.
This equipment and technology enable transmission of toll transactions to the lane system host to ultimately collect toll revenue.
• Services include, as needed, repair and/or service of Next Generation Roadside Equipment as well as related project work necessary to upgrade equipment technology.
| ValueIs: Estimated |
| ValueofInitialTerm: 9200000.00000000 |
| P-Ayes: |
| P-Ano: |
| P-AValue: |
| ThisIsA: New Sole Economically Feasible Source |
| One-Time: |
| Term: |
| BeginDate: 11/01/2022 |
| EndDate: 10/31/2023 |
| NumberofRenewals: 0.00000000 |
| RenewalLength: 0.00000000 |
| RenewalValue: 0.00000000 |
| ExceedingYes: |
| ExceedingNo: |
| TextField3: |
| StateFunds: 0 |
| FederalFunds: 0 |
| FundingOther: 1 |
| TextField4: The Tollway does not operate on State-appropriated funds. Procurements are funded through toll revenue. |
| TextField4: I-PASS Transponders and Transponder Equipment |
| DropDownList1: Compatibility of Equipment, Accessories, Replacement Parts or Service |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| DropDownList1: Sole Source |
| Justify: |
| PastYes: |
| PastNo: |
| DateTimeField20: 11/01/2021 |
| DateTimeField19: 10/31/2022 |
| NumericField8: 10000000.00000000 |
| TextField5: 21-0043 |
| DateTimeField18: 02/01/2017 |
| DateTimeField17: 10/31/2021 |
| NumericField9: 43000000.00000000 |
| TextField10: Transponder and Equipment Purchases |
| TextField11: 16-0138 |
| DateTimeField16: 03/05/2012 |
| DateTimeField15: 01/31/2017 |
| NumericField10: 60566000.00000000 |
| TextField16: Transponder Purchases and Transponder-Related Equipment |
| TextField17: 12-0040 |
| DateTimeField14: 09/30/2011 |
| DateTimeField13: 02/15/2012 |
| NumericField11: 5000000.00000000 |
| TextField22: Transponder Purchases |
| TextField23: 11-0196 |
| DateTimeField12: 08/17/2010 |
| DateTimeField11: 08/16/2011 |
| NumericField12: 10000000.00000000 |
| TextField28: I-PASS Transponder and Equipment |
| TextField29: 07-0016 |
| DateTimeField10: 08/28/2007 |
| DateTimeField9: 08/16/2010 |
| NumericField13: 30000000.00000000 |
| TextField34: I-PASS Transponder and Equipment |
| TextField35: 07-0016 |
| DateTimeField8: 07/20/2004 |
| DateTimeField7: 08/27/2007 |
| NumericField14: 54179127.00000000 |
| TextField40: Transponders and Equipment |
| TextField41: 03-6528 |
| DateTimeField6: 09/01/2003 |
| DateTimeField5: 04/15/2004 |
| NumericField15: 12155150.00000000 |
| TextField46: Transponders and Equipment |
| TextField47: |
| DateTimeField4: 04/01/2003 |
| DateTimeField4: 2022-09-22 |
| DateTimeField4: 2022-09-22 |
| DateTimeField3: 08/15/2003 |
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| TextField52: Transponders and Equipment |
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| DateTimeField2: 10/01/2002 |
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| TextField58: Transponders and Equipment |
| TextField59: |
| IfMoreThan10: The Illinois Tollway became a member of the E-ZPass Group in 2004 to achieve economies of scale while enhancing services for I-PASS customers. The benefits of E-ZPass membership included toll interoperability for customers of all member agencies with the provision that each member agency use the same transponder technology. As a member of the E-ZPass Group, the Tollway is obligated to use vendors contracted via E-ZPass RFP award as the technology suppler of transponders and related equipment and services. |
| Q1Answer: Transponder technology is essential for detecting and charging electronic tolls and is responsible for the economic efficiencies and customer benefits provided through electronic toll collection. The Tollway anticipates providing up to 100,000 I-PASS transponders per month to customers across several fulfillment channels. Since March 2020, toll collection has been and will remain a 100% cashless operation which further necessitates this contract for electronic toll collection equipment and services. In 2021, the Tollway completed a major project to upgrade transponder technology at all Tollway plazas and lanes systemwide to a more advanced multi-protocol reader. Multi-protocol readers widen the spectrum of possible transponder types and has prepared the Tollway to issue 6C Sticker tags and propel Illinois toward national interoperability. In 2024 and through 2025, the Tollway will move forward with strategic initiatives to transition 8 million I-PASS customers from Time Division Multiplexing (TDM) transponders to 6C Sticker tags. This initiative will provide future cost savings to the customer and Tollway by reducing the purchase cost per unit from the current cost of $6.69 and the new contract cost of $6.20 to cost of $0.45 per transponder. |
I-PASS electronic toll collection continues to be the Tollway’s most cost-effective solution for streamlining toll collection and improving customer service. The number of active I-PASS transponders issued to customers has grown to more than 8.1 million. The Tollway meets customer I-PASS transponder demands via retail sites (Jewel-Osco and Road Ranger). Transponder orders received by phone, mail, and through the Tollway’s website are filled by the Tollway’s transponder fulfillment services State Use provider (Ada S. McKinley). The I-PASS program is ongoing; therefore, the business need requires the ability to continue an uninterrupted supply of I-PASS transponders to Tollway customers. Without this contract, the Tollway’s ability to continue purchasing I-PASS transponders would be jeopardized and the collection of toll revenue would be at risk.
The Kapsch contract ensures the Tollway’s ability to purchase I-PASS transponders and Next Generation Roadside Equipment (readers, antennas, etc.). This specific transponder technology is necessary for the Tollway to remain interoperable with the E-ZPass Group.
Q2Answer: The required goods and services include ongoing purchases of I-PASS transponders (transitioning to 6C sticker tags in 2023), Next Generation Roadside Equipment (transponder readers, antennas, and all other related transponder technology). The contract scope also includes services, as needed, for repair and/or service of Next Generation Roadside Equipment as well as related project work necessary to upgrade equipment technology.
$8,340,000 -- Transponder purchases to support 80,000-100,000 per month plus initial 6C sticker tag inventory
$541,275 -- Next Generation Roadside Equipment to accommodate new technologies necessary to read sticker tags and accommodate the purchase of transponder technology on newly constructed plazas and lanes.
$318,725 -- Services to repair roadside equipment as necessary, and related project work necessary to upgrade equipment technology.
$9,200,000 -- Total estimated capital expenditures.
Q3Answer: To enhance services offered to I-PASS customers and to control costs, the Tollway became a member of the E-ZPass Group through an intergovernmental agreement established in 2004.
The E-ZPass Program is the largest, most successful interoperable toll collection program in the world. It consists of 35 toll agencies/companies in 18 states, servicing more than 25 million customer accounts linked to 41 million transponders, and supports the collection of over $13.2 billion in annual toll revenues of which more than $11.2 billion is collected electronically and over $5.1 billion is transferred between agencies through toll reciprocity programs. The benefits of the consortium allow customers to use their transponders on any other member agency toll road. Technically, this works because each member agency must use the same interoperable technology - transponder and transponder reader equipment. Historically, the E-ZPass Group has selected Kapsch as its transponder technology vendor via a competitively bid RFP, and that brand of transponder has been used to take advantage of interoperability among all member agencies. Upon award of the E-ZPass procurement, the sponsoring agency would execute a contract to the vendor who submitted the winning proposal. The Tollway would then proceed with procuring a sole economically feasible source contract.
To increase competition, the most recent RFP was written to allow multiple vendor awards. The E-ZPass Group, via sponsoring agency North Carolina Turnpike Authority (NCTA), is awarding to those qualified vendors providing technology that successfully completes certification testing. This will allow E-ZPass agencies to purchase best price from any of the awarded technology providers. Earlier this year, four vendors received preliminary awards. At present, two vendors, Kapsch TrafficCom USA (“Kapsch”) and TransCore LLP (“TransCore”), have successfully completed certification testing and have executed contracts with North Carolina Turnpike Authority (“NCTA”). In the coming months, the remaining two vendors who received preliminary awards earlier this year, Neology Inc. (“Neology”) and Star Systems International (“Star”) will execute contracts with NCTA.
Via this request, the Tollway is seeking approval to contract with Kapsch. The intent of this request is to contract via sole economically feasible source with Kapsch for one-year until the state has vetted NCTA for future cooperative agreements with all 4 vendors. The Tollway will then pursue contracts with all four vendors.
Approval of this procurement will support the continuation of the I-PASS program by ensuring the provision of electronic toll collection equipment and services. Customers can purchase transponders via phone, mail, or by visiting the Tollway website. Customers can also purchase transponders in person at over 185 Jewel-Osco retail locations in the Chicagoland area, five Road Ranger retail locations in the Rockford area, the I-PASS business center in the Tollway’s Central Administration building in Downers Grove and at I-PASS kiosks at three Oases kiosks.
The Tollway is one of the largest electronic toll collection agencies in America. With 100% of tolls collected being electronic, and revenue of $1.4 billion in 2021, the Tollway’s operations are predicated on the continuing use of transponder technology.
The impact of non-approval places the agency in breach of contract as it cannot meet the terms of its agreement with the E-ZPass Group. A condition of E-ZPass Group membership is using technology and equipment from the E-ZPass Group’s competitively selected vendors.
| Q4Answer: A condition of an E-ZPass Group membership is using approved uniform, standard transponder technology. At this time, Kapsch is one of two vendors currently contracted to provide transponders to all E-ZPass member agencies. Kapsch's pricing for the required transponder equipment and support servcies are lower in price then the only other awarded vendor. As a member of the E-ZPass Group, the Tollway is obligated to use vendors selected as the technology suppliers of transponders and transponder reader equipment through an intergovernmental agreement. The benefits of the consortium allow customers of any member agency to use their transponders on any other member agency’s toll road. This works because each member must use the same interoperable type of transponders. Additionally, due to patent considerations, transponders require compatible readers. |
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| Q5aAnswer: Kapsch was one of four vendors selected via an E-ZPass Group RFP award. Currently, Kapsch and TransCore have executed seven-year contracts with additional renewal options with the sponsoring agency NCTA. As part of this RFP process, extensive testing and technical evaluation of qualified offerors had taken place for over a year, at a cost of $2 million to the E-ZPass Group. Additionally, as a member of the E-ZPass Group, the Tollway is obligated to utilize the selected vendors as transponder technology suppliers through an intergovernmental agreement. Tollway reviewed both TransCore and Kapsch's offerings and pricing for the product and services needed for this one-year term and the pricing offered by Kapsch was lower. |
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| Q7Answer: The prices were determined by responses to the RFP solicitation conducted by the E-ZPass Group in 2021. The procurement through the E-ZPass Group, via sponsoring agency NCTA, combines the buying power of 38 separate agencies to achieve volume discounts. One of the main strategic and economic benefits of E-ZPass membership is the use of standardized technology to achieve interoperability. Additionally, to maximize competition and cost efficiencies, the RFP was written to allow multiple vendor awards. This will allow E-ZPass agencies to purchase best price from any of the awarded technology providers. Tollway reviewed both TransCore and Kapsch's offerings and pricing for the product and services needed for this one-year term and the pricing offered by Kapsch was lower. |
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| Q8aAnswer: Without this sole economically feasible source contract, the Tollway could not supply transponders to its 8.1 million I-PASS customers. This contract provides business continuity by ensuring the supply of I-PASS transponders and associated transponder technology. This transponder equipment and technology enable transmission of toll transactions to the lane system host to ultimately collect toll revenue. The service needs related to repairs are minor; however, needs related to system upgrades are dictated by technical requirements and are therefore necessary and vital to continued operations. This contract is critical to electronic tolling systems and the technology provided ensures the resulting revenue collections. As a self-funded agency, the Tollway, its public stakeholders, and its bondholders rely on the revenue that is assured through the continued performance of its electronic tolling systems and technology. There is no economically or technically feasible alternative for an interim solution. A sole economically feasible source contract to continue supporting ongoing operations (including road maintenance, snow removal, and law enforcement), as well as the Move Illinois Capital Program, is essential for the Tollway, its bondholders, the State of Illinois, and its citizens. |
| Q9Answer: The impact of non-approval places the agency in breach of contract as it cannot meet the terms of its agreement with the E-ZPass Group. A condition of E-ZPass Group membership is using technology and equipment from the E-ZPass Group’s competitively selected vendors. Kapsch was one of four vendors selected via an E-ZPass Group RFP award, via sponsoring agency NCTA. Currently, Kapsch and TransCore have executed seven-year contracts with additional renewal options with the sponsoring agency NCTA. The Tollway is one of the largest revenue-generating toll roads with the largest volume of electronic toll transactions in North America. The transponder and related transponder reader equipment is a critical component to the business operation and for toll collection. Transponders and transponder reader equipment are an absolute necessity for toll collection. Therefore, the approval of this sole economically feasible source procurement is critical to continue operations and mitigate the risk of revenue loss. |
| Q10Answer: As a self-funded agency, the Tollway, its public stakeholders, and its bondholders rely on the revenue that is assured through electronic tolling collection. There is no economically or technically feasible alternative for an interim solution. A sole economically feasible source contract to continue supporting ongoing operations is essential for the Tollway, its bondholders, the State of Illinois, and its citizens. |
| SignatureField1: |
| TextField63: Michael Catolico |
| TextField63: mcatolico@getipass.com |
| TextField63: EOccomy@getipass.com |
| TextField63: Eric Occomy |
| TextField64: 630-743-3709 |
| TextField65: 630-241-6800 x4625 |
| Approve: |
| denied: |
| Comments: |
| Phone: 217-720-6643 |
| Date: |
| PN: David Papp |
| Email: David.Papp@Illinois.gov |
| InitialPostingDate: 09/26/2022 |
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| CPOTelephone: 217-558-2231 |
| CPOPrintedName: Ellen H. Daley |
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File details come from the government source that posted it. Updated .