SSJF 22-0100 TRMMP.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 9

Bulletin Reference Number 23-557THA-BUSSY-B-31788

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: Jun 15, 2022 Supply/Service Need By Date: Jan 31, 2023

Project Title: Toll Revenue Management and Maintenance Program Services

Vendor: Electronic Transaction Consultants LLC

Provide a description of the supplies or services required:

The Illinois State Toll Highway Authority ("Tollway") is seeking a one-year sole economically feasible source contract for support and maintenance of the Host System, as well as the support and maintenance of the legacy Violation Processing System (and its associated Customer Service Center System) with Electronic Transaction Consultants ("ETC") LLC. Collectively, these systems are identified as the Toll Revenue Management and Maintenance Program (“TRMMP”) contract.

This contract will provide the following:

- 24/7 support and maintenance of the Host System, which records and aggregates all toll transactions and traffic activity.

- Complete and accurate recording of all toll transactions.

- Support and maintenance of the legacy Violation Processing System (and its associated Customer Service Center System).

- Small projects to support operations, such as customized reporting, year-end reporting, and configuration changes.

- Software license renewals.

- Database upgrades for security compliance.

- Storage upgrades for security compliance.

- System updates to accommodate changes to transaction filters (e.g., new lanes, new interoperable partners).

- Commence sunsetting for the Violation Processing System (and its associated Customer Service Center System).

Value: Estimated Value of Initial Term, this Change Order or Amendment: 5,500,000

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

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 1/31/2023

Estimated Contract End Date: 1/30/2024

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

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

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

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 01/31/2022 01/30/2023 5,500,000 Toll Revenue Management and Maintenance Program 21-0167 Sole Source

2 01/31/2021 01/30/2022 5,500,000 Toll Revenue Management and Maintenance Program 20-0179 Sole Source

3 01/31/2020 01/30/2021 6,000,000 Toll Revenue Management and Maintenance Program 19-0151 Sole Source

4 01/01/2020 01/30/2020 0 Toll Revenue Management and Maintenance Program 18-0155 Amendment

5 01/01/2019 12/31/2019 7,000,000 Toll Revenue Management and Maintenance Program 18-0155 Sole Source

6 01/01/2018 12/31/2018 24,500,000 Toll Revenue Management and Maintenance Program 17-0190 Sole Source

7 01/01/2017 12/31/2017 20,000,000 Toll Revenue Management and Maintenance Program 16-0136 Sole Source

8 01/01/2016 12/31/2016 25,000,000 Toll Revenue Management and Maintenance Program 15-0133 Sole Source

9 07/01/2015 12/31/2015 13,000,000 Toll Revenue Management and Maintenance Program 15-0010 Sole Source

10 07/01/2014 06/30/2015 11,977,895 Toll Revenue Management and Maintenance Program (5 of 5) 05-0014 Renewal

If more than 10, or if other comments, explain:

- Toll Revenue Management and Maintenance Program (Renewal 4 of 5) - $19,000,000 - Contract 05-0014 (07/01/2013-06/30/2014).

- Toll Revenue Management and Maintenance Program (Amendment) - $462,000 - Contract 05-0014 (07/01/2012-06/30/2013).

- Toll Revenue Management and Maintenance Program (Renewal 3 of 5) - $12,000,000 - Contract 05-0014 (07/01/2012-06/30/2013).

- Toll Revenue Management and Maintenance Program (Renewal 2 of 5) - $12,059,012 - Contract 05-0014 (07/01/2011-06/30/2012).

- Toll Revenue Management and Maintenance Program (Renewal 1 of 5) - $11,000,000 - Contract 05-0014 (06/30/2010-06/30/2011).

Today’s electronic tolling technology and maintenance marketplace remains niche and evolving, which has complicated our multi-year effort to reduce our dependence on the ETC contract for revenue. Further complicating matters, the Tollway launched the Move Illinois capital program in 2011 to improve mobility, relieve congestion, reduce pollution, and to link economies across northern Illinois. Move Illinois addresses the needs of the existing Tollway, and also involves significant construction of new interchanges, new plazas, and reconfigured plazas – all of which need rapid and reliable installation of electronic tolling technology. A sole economically feasible source contract will provide the lowest-risk option for preserving the integrity of the current roadways and will significantly mitigate the risk of revenue loss.

Section VI - Business Rationale

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

1. Provide a detailed explanation of the need for the supplies or services:

The Toll Revenue Management and Maintenance Program (“TRMMP”) contract ensures the safety of toll roads and the collection of toll and violation revenue. As the Tollway continues to transition out of the TRMMP contract, it is necessary to mitigate financial, operational, and customer service risks while ensuring a seamless transition to a new vendor. The recommended method to accomplish this is by contracting ETC's services via a new one-year sole economically feasible source procurement.

The Host System is the central "aggregator" and repository for lane transaction data, and it is critical to the collection of toll transactions and traffic activity essential to the collection of toll revenue. The Host System collects, sorts, and filters all toll transactions from the lanes and then sends those transactions to the customer relationship management system that serves as the revenue engine for the Tollway. The Host System processes 100% of the Tollway's one billion lane transactions annually, thus enabling $1.4 billion in annual revenues in 2021.

The legacy Violation Processing System (and its associated Customer Service Center System) continues to enable the collection of aged debt, interfacing with the Tollway's collection agencies daily. And, although the systems have a significantly reduced processing "footprint" as no new transactions are being added, customer service representatives also continue to take payments daily on the aged debt they hold. The Violation Processing System (and its associated Customer Service Center System) is currently the repository for well over one billion transactions related to aged tolling debt.

These systems are necessary to maintain uninterrupted revenues, including recovered revenues.

Under the TRMMP contract, there are both capital and maintenance services. Capital services include activities to keep all three systems compliant with credit card processing security requirements, which involve database upgrades and storage migration. Capital services also include a variety of minor, yet critical updates to the software, including the addition of new lanes, toll rates, and inter-operable partners. Maintenance services include project management, system maintenance and software support services, and software license renewals.

Capital services will be capped in this new sole economically feasible source contract at $3,250,000 and maintenance services will be capped in this contract at $2,250,000.

1) Anticipated capital services include the following:

a) Database upgrades for security compliance.

b) Storage upgrades for security compliance.

c) System updates to accommodate changes to transaction filters (e.g., new lanes, new inter-operable partners).

d) Commencing sunsetting for the Violation Processing System (and its associated Customer Service Center System).

2) Maintenance services include a continuation of the following:

a) 24/7 support and maintenance of the Host System.

b) Complete and accurate recording of all toll transactions.

c) Support and maintenance of the legacy Violation System (and its associated Customer Service Center System).

d) Small projects to support operations, such as customized reporting, year-end reporting, and configuration changes.

e) Software license renewals.

The Request for Proposal to replace the back-office system services contract is in development. Services provided under this sole economically feasible source request will be required until the new contract is put into place.

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

2. Provide a list and describe in detail the specifications required to satisfy the need:

1. The TRMMP contract encompasses a complex combination of hardware, customized and proprietary software applications, and extensive maintenance services to ensure complete and sufficient collection of toll transactions and revenue, along with enforcement and pursuit of toll violators. This system is made up of various applications and, now that a contract for the lane aspects has been awarded, the remaining segments to be addressed in 2023-2024 include the Host System for aggregating all toll transactions and revenue collection as well as the legacy Violation Processing System (and its associated Customer Service Center System) for managing aged debt. These systems make it possible to collect approximately $1.4 billion annually in toll and violation revenue.

2. Until a replacement system has been implemented, it is necessary to keep the current Host System in compliance with all regulatory, financial, technical and/or security requirements. The Host System is customized and proprietary and includes a scope of work that is continuous and evolving. The specific scope for 2023 is anticipated to be similar to services provided in previous years. Please see Attachment A for the requirements to satisfy this need.

3. In addition to the customized and proprietary Host System, this sole economically feasible source procurement also accommodates support and maintenance of the legacy Violation Processing System (and its associated Customer Service Center System) for managing aged debt. The goal for 2023 includes initiating projects to move forward the sunsetting of the legacy systems. Please see Attachment A for the requirements to satisfy this need.

4. Other scopes of work requested are similar to previous years as the dynamics of the IT security and compliance environment continue to be a regular aspect of ensuring system and data integrity. Further, with more than one billion transactions to be processed annually, there is a continual need to assess the sizing and processing capacity of the legacy system. Therefore, the need to continuously monitor and maintain these systems is imperative to the financial integrity of the Tollway. Please see Attachment A for the recurring support and maintenance requirements.

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?

The sole economically feasible source contract is necessary because there is no economically or technically feasible alternative for an interim solution. This procurement request is to retain the incumbent vendor while the Tollway develops a strategy to transition the services. This will include sunsetting the legacy Violation Processing System (and its associated Customer Service Center System) and implementing a longer-term solution for the Host System.

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:

ETC developed, installed, and has maintained these specialized technologies and services described above since inception. As such, they are uniquely qualified to provide these services until a new contract is put into place.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If no, why weren't alternatives evaluated?

The scope of services requested in this sole economically feasible source contract provides for the maintenance and support of proprietary systems. There is no economically or technically feasible alternative for an interim solution. The Host System processes 100% of the Tollway's one billion lane transactions annually, thus enabling $1.4 billion of annual revenues. The Violation Processing System (and its associated Customer Service Center System) is currently the repository for well over one billion transactions related to aged tolling debt. The Tollway is actively working on solutions to reduce aged debt and subsequently sunset the legacy Violation Processing System (and its associated Customer Service Center System).

6. Are there resellers or distributors?

Yes No N/A

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

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 following is a breakdown of the pricing structure and the anticipated cost for each component for a one-year term.

Software Updates $ 3,250,000 Subtotal Planned Capital Expenditures $3,250,000 (see breakout below)

Hardware and System Maintenance $ 1,534,000 Project Management 216,000 Software Support 300,000 Software License Renewals 200,000 Subtotal Anticipated Maintenance Expenditures $2,250,000

TOTAL REQUEST $5,500,000

This contract covers 24/7 maintenance and support for the Tollway’s Host System which processes 100% of our one billion lane transactions annually, thus enabling our $1.3 billion of annual revenues.

This contract also covers 24/7 maintenance and support for the Violation Processing System (and its associated Customer Service Center System) which currently is the repository for well over one billion transactions related to aged tolling debt.

These systems are necessary to maintain uninterrupted revenues, including recovered revenues.

Here is a breakout of the software updates:

1) Continue database migration ($500K)

2) Plan and implement storage migration ($750K)

3) Assess and plan sunsetting for the Violation Processing System (and its associated Customer Service Center System) ($1.0M)

4) Implement critical system updates as needed ($1.0M)

A more detailed description of critical system updates is provided in Attachment A item 4.

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:

For business continuity, until a replacement system has been implemented, it is necessary to keep the current Host System in compliance with all regulatory, financial, technical and security requirements.

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?

Without this sole economically feasible source contract, the Tollway could not maintain the Host System which is responsible for the Tollway's $1.4 billion in annual revenue collection. The capital upgrades and/or updates are dictated by regulatory, technical, financial and/or security compliance regulations and are therefore necessary and vital to continued operations. These compliance driven services are essential to the Tollway as a going concern. 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.

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

10. Is there any additional information you would like to add to justify this sole source?

A sole economically feasible source contract will provide the lowest-risk option for preserving the integrity of the Host System and minimize risk of revenue loss while a new contract is put into place. Electronic tolling is a nascent industry and depends on specialized technology. As a self-funded agency, the Tollway, its public stakeholders, and its bondholders rely on the $1.4 billion in annual 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.

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

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 Oct 27, 2022

Printed Name Michael Catolico E-mail Address mcatolico@getipass.com

Phone Number 630-241-6800 x1849

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

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

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Bulletin Reference Number 23-557THA-BUSSY-B-31788

Requesting Agency/University Illinois State Toll Highway Authority

Sole Source Justification Form - Part II Section I - General Information

Project Title Toll Revenue Management and Maintenance Program Services

Vendor Electronic Transaction Consultants LLC

Initial Date of Procurement Bulletin Posting

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

This contract will provide the following:

- 24/7 support and maintenance of the Host System, which records and aggregates all toll transactions and traffic activity.

- Complete and accurate recording of all toll transactions.

- Support and maintenance of the legacy Violation Processing System (and its associated Customer Service Center System).

- Small projects to support operations, such as customized reporting, year-end reporting, and configuration changes.

- Software license renewals.

- Database upgrades for security compliance.

- Storage upgrades for security compliance.

- System updates to accommodate changes to transaction filters (e.g., new lanes, new interoperable partners).

- Commence sunsetting for the Violation Processing System (and its associated Customer Service Center System).

- Toll Revenue Management and Maintenance Program (Amendment) - $462,000 - Contract 05-0014 (07/01/2012-06/30/2013).

- Toll Revenue Management and Maintenance Program (Renewal 3 of 5) - $12,000,000 - Contract 05-0014 (07/01/2012-06/30/2013).

- Toll Revenue Management and Maintenance Program (Renewal 2 of 5) - $12,059,012 - Contract 05-0014 (07/01/2011-06/30/2012).

- Toll Revenue Management and Maintenance Program (Renewal 1 of 5) - $11,000,000 - Contract 05-0014 (06/30/2010-06/30/2011).

Today’s electronic tolling technology and maintenance marketplace remains niche and evolving, which has complicated our multi-year effort to reduce our dependence on the ETC contract for revenue. Further complicating matters, the Tollway launched the Move Illinois capital program in 2011 to improve mobility, relieve congestion, reduce pollution, and to link economies across northern Illinois. Move Illinois addresses the needs of the existing Tollway, and also involves significant construction of new interchanges, new plazas, and reconfigured plazas – all of which need rapid and reliable installation of electronic tolling technology. A sole economically feasible source contract will provide the lowest-risk option for preserving the integrity of the current roadways and will significantly mitigate the risk of revenue loss.

Q1Answer: The Toll Revenue Management and Maintenance Program (“TRMMP”) contract ensures the safety of toll roads and the collection of toll and violation revenue. As the Tollway continues to transition out of the TRMMP contract, it is necessary to mitigate financial, operational, and customer service risks while ensuring a seamless transition to a new vendor. The recommended method to accomplish this is by contracting ETC's services via a new one-year sole economically feasible source procurement.

The Host System is the central "aggregator" and repository for lane transaction data, and it is critical to the collection of toll transactions and traffic activity essential to the collection of toll revenue. The Host System collects, sorts, and filters all toll transactions from the lanes and then sends those transactions to the customer relationship management system that serves as the revenue engine for the Tollway. The Host System processes 100% of the Tollway's one billion lane transactions annually, thus enabling $1.4 billion in annual revenues in 2021.

The legacy Violation Processing System (and its associated Customer Service Center System) continues to enable the collection of aged debt, interfacing with the Tollway's collection agencies daily. And, although the systems have a significantly reduced processing "footprint" as no new transactions are being added, customer service representatives also continue to take payments daily on the aged debt they hold. The Violation Processing System (and its associated Customer Service Center System) is currently the repository for well over one billion transactions related to aged tolling debt.

These systems are necessary to maintain uninterrupted revenues, including recovered revenues.

Under the TRMMP contract, there are both capital and maintenance services. Capital services include activities to keep all three systems compliant with credit card processing security requirements, which involve database upgrades and storage migration. Capital services also include a variety of minor, yet critical updates to the software, including the addition of new lanes, toll rates, and inter-operable partners. Maintenance services include project management, system maintenance and software support services, and software license renewals.

Capital services will be capped in this new sole economically feasible source contract at $3,250,000 and maintenance services will be capped in this contract at $2,250,000.

1) Anticipated capital services include the following:

a) Database upgrades for security compliance.

b) Storage upgrades for security compliance.

c) System updates to accommodate changes to transaction filters (e.g., new lanes, new inter-operable partners).

d) Commencing sunsetting for the Violation Processing System (and its associated Customer Service Center System).

2) Maintenance services include a continuation of the following:

a) 24/7 support and maintenance of the Host System.

b) Complete and accurate recording of all toll transactions.

c) Support and maintenance of the legacy Violation System (and its associated Customer Service Center System).

d) Small projects to support operations, such as customized reporting, year-end reporting, and configuration changes.

e) Software license renewals.

The Request for Proposal to replace the back-office system services contract is in development. Services provided under this sole economically feasible source request will be required until the new contract is put into place.

Q2Answer: 1. The TRMMP contract encompasses a complex combination of hardware, customized and proprietary software applications, and extensive maintenance services to ensure complete and sufficient collection of toll transactions and revenue, along with enforcement and pursuit of toll violators. This system is made up of various applications and, now that a contract for the lane aspects has been awarded, the remaining segments to be addressed in 2023-2024 include the Host System for aggregating all toll transactions and revenue collection as well as the legacy Violation Processing System (and its associated Customer Service Center System) for managing aged debt. These systems make it possible to collect approximately $1.4 billion annually in toll and violation revenue.

2. Until a replacement system has been implemented, it is necessary to keep the current Host System in compliance with all regulatory, financial, technical and/or security requirements. The Host System is customized and proprietary and includes a scope of work that is continuous and evolving. The specific scope for 2023 is anticipated to be similar to services provided in previous years. Please see Attachment A for the requirements to satisfy this need.

3. In addition to the customized and proprietary Host System, this sole economically feasible source procurement also accommodates support and maintenance of the legacy Violation Processing System (and its associated Customer Service Center System) for managing aged debt. The goal for 2023 includes initiating projects to move forward the sunsetting of the legacy systems. Please see Attachment A for the requirements to satisfy this need.

4. Other scopes of work requested are similar to previous years as the dynamics of the IT security and compliance environment continue to be a regular aspect of ensuring system and data integrity. Further, with more than one billion transactions to be processed annually, there is a continual need to assess the sizing and processing capacity of the legacy system. Therefore, the need to continuously monitor and maintain these systems is imperative to the financial integrity of the Tollway. Please see Attachment A for the recurring support and maintenance requirements.

Software Updates $ 3,250,000 Subtotal Planned Capital Expenditures $3,250,000 (see breakout below)

Hardware and System Maintenance $ 1,534,000 Project Management 216,000 Software Support 300,000 Software License Renewals 200,000 Subtotal Anticipated Maintenance Expenditures $2,250,000

TOTAL REQUEST $5,500,000

This contract covers 24/7 maintenance and support for the Tollway’s Host System which processes 100% of our one billion lane transactions annually, thus enabling our $1.3 billion of annual revenues.

This contract also covers 24/7 maintenance and support for the Violation Processing System (and its associated Customer Service Center System) which currently is the repository for well over one billion transactions related to aged tolling debt.

These systems are necessary to maintain uninterrupted revenues, including recovered revenues.

Here is a breakout of the software updates:

1) Continue database migration ($500K)

2) Plan and implement storage migration ($750K)

3) Assess and plan sunsetting for the Violation Processing System (and its associated Customer Service Center System) ($1.0M)

4) Implement critical system updates as needed ($1.0M)

A more detailed description of critical system updates is provided in Attachment A item 4.