Sole Source-Electronic Toll Collection Equipment and Services

The Illinois State Toll Highway Authority is pursuing a sole source procurement for electronic toll collection equipment and services with Kapsch TrafficCom USA, Inc. The contract will run from November 1, 2025, to October 31, 2026, and focuses on acquiring 6C sticker tags and related electronic toll collection technology. Specific deliverables include 6C sticker tag inventory, Next Generation Roadside Equipment such as transponder readers, antennas, and programming tools, along with associated repair and upgrade services. The procurement is part of a systemwide modernization initiative to replace traditional Time Division Multiplexing (TDM) transponders with more advanced 6C sticker tags. Key objectives include maintaining seamless electronic toll collection for the agency, which currently processes 100% of its transactions electronically and generates approximately $1.5 billion in annual revenue. The sole source notice requires interested parties to submit written comments or request a public hearing by Friday, August 22nd at 4 p.m., with the hearing potentially being canceled if no substantive feedback is received.

The procurement is specifically restricted to vendors certified by the E-ZPass Group, with Kapsch being one of only four approved vendors selected through a competitive RFP process. No specific set-aside designations for disadvantaged enterprises were mentioned in the documentation. The current infrastructure involves transitioning from older transponder technology, with over 2.3 million of the Tollway's 9.7 million I-PASS customers already migrated to the new 6C sticker tag system. The contract has an estimated value of $2,925,000, with a significant cost reduction in transponder unit pricing from $6.90 to $0.59 per unit. The procurement will be funded through toll revenue and is critical for maintaining the Tollway's E-ZPass Group membership and ensuring continuous toll collection operations. Integration with existing electronic toll collection infrastructure is a key consideration, with Kapsch selected based on lower pricing and compatibility with current systems.