Updated_PR_Memo_-_TVM_2025-02_11[1]_(2).pdf
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- Solicitation number
- RFP 126FO005
- Issued by
- Denver County, Denver City, Colorado
About this file
This is a memorandum from the Regional Transportation District (RTD) in Denver, Colorado, requesting approval for a Purchase Requisition for the replacement of Ticket Vending Machines (TVMs) serving bus rapid transit routes. RTD proposes the removal and disposal of 185 existing TVMs and installation of 173 new units, including 113 replacements at existing locations, 54 new units along the East Colfax BRT corridor, 1 unit at Civic Center Station, 5 spare units, and an option to purchase 6 additional units for Denver Union Station Bus Concourse. The current TVMs have exceeded their useful life of over 14 years and are incompatible with current payment card industry standards. The project addresses significant operational inefficiencies including frequent breakdowns, extended maintenance requirements, outdated user interfaces with slower processing speeds, security vulnerabilities, and non-compliance with Payment Card Industry Data Security Standards (PCI-DSS), which has resulted in financial penalties from banks and credit card processors.
The entire project cost of up to $5 million will be funded through a pass-through grant from the City and County of Denver designated for BRT route projects. The contract includes a 5% Small Business Enterprise (SBE) goal. The replacement equipment will provide improved operational efficiency with reduced maintenance and downtime, enhanced customer experience through faster transaction processing and improved interfaces, strengthened security with current payment processing technology and real-time system monitoring, and advanced data analytics capabilities for customer behavior insights and maintenance issue reporting. The scope of work ensures procurement of compliant equipment that supports RTD's 2024 fare structure while allowing scalability and agility for potential future fare adjustments and customer needs.
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Text version
Memorandum We make lives better through connections.
Regional Transportation District 1660 Blake Street, Denver CO 80202 rtd-denver.com
To: Debra A. Johnson, General Manager and CEO
From: Doug MacLeod, Chief Financial Officer
Date: February 18, 2025
Re: Approval requested for Purchase Requisition (PR) for Additional Ticket
Vending Machines (TVM) for Bus Rapid Transit (BRT) Projects
This PR is submitted for the purchase of up to an additional 54 TVMs to serve the Colfax
BRT route as well as an option to purchase another 150 TVMs in the future for the Federal
Boulevard and Colorado Boulevard BRT routes. The entire cost of these additional TVMs will be funded with $5 million from the pass-through grant with the City and County of
Denver for these BRT routes.
The current TVMs are significantly past their useful lives and are not compatible with current bank payment standards for Payment Card Industry – Data Security Standards (PCI-DSS).
Current TVMs have been in service for over 14 years and are out of date in terms of both technology and user experience. Additionally, unavailability of replacement and repair parts combined with more frequent component failures necessitate full replacement of the units.
The following lists specific challenges with the current TVMs:
• Operational inefficiencies: frequent breakdowns and maintenance requirements disrupt services and consume resources
• User experience: old operating systems and slower processing speeds lead to longer transaction times, resulting in queues and customer dissatisfaction
• Security concerns: evolving cyber threats expose current TVMs to many new vulnerabilities
• Lack of regulatory compliance: banks and credit card processors (VISA, Mastercard, American Express, etc.) have imposed financial penalties for non-compliance with
PCI-DSS and also have stated that, at some point, card-processing services will no longer be permitted on RTD’s older TVM technology
The following lists the benefits to be derived from replacing current TVMs:
• Improved operational efficiency: new TVMs will require less repairs and maintenance and less down time which could mitigate the needs for increases in maintenance staff as up to 54 additional TVMs are anticipated for the Colfax BRT project and estimated 150 TVMs for the future projects Federal Blvd BRT and Colorado Blvd BRT.
• Enhanced customer excellence: Faster transaction processing, intuitive interfaces, and added functionality and improved currency acceptance
• Strengthened security: new technology with current security features for payment processing with added real-time system monitoring
• Data analytics and insights: advanced analytics capabilities and reporting will provide
Subject:
Page:
Regional Transportation District 1660 Blake Street, Denver CO 80202 rtd-denver.com valuable insight into customer behavior, time and frequency of transactions and real-time reporting of maintenance issues
The scope of work and equipment specifications for replacement TVMs will ensure that compliant equipment will be procured that efficiently administers the implemented 2024 fare structure in support of Customer Excellence and Financial Success while also allowing for scalability and agility for potential future fare changes and customer needs.
Thank you.
| 2025-02-18T12:07:06-0700 | |
| Macleod, Doug - 19575 |
File details come from the government source that posted it. Updated .