Sole Source Electronic Toll Collection Equipment and Services

The Illinois State Toll Highway Authority (Tollway) is seeking to award a one-year, sole source contract to Kapsch TrafficCom USA, Inc. for the provision of I-PASS transponders and related electronic toll collection equipment and services. The contract will cover the ongoing 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 vendors selected through the E-ZPass Group's competitive procurement process, which currently includes Kapsch and TransCore. 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. The total estimated value of the contract is $9.2 million.

The Tollway is pursuing this sole source contract to ensure continuity of its I-PASS electronic toll collection program until the State has the opportunity to evaluate other E-ZPass Group vendors and establish additional contracts. The pricing for the required transponder equipment and services from Kapsch was determined to be lower than the other awarded vendor through the E-ZPass Group's competitive procurement process. The Tollway is a self-funded agency that relies on toll revenue to support its operations and capital program, so ensuring an uninterrupted supply of required electronic toll collection equipment and services is critical to its financial stability and operations. A public hearing on the sole source contract award will be held unless an interested party submits written comments or requests a public hearing by October 7, 2022.