Sole Source_ Electronic Toll Collection Equipment and Services

The state of Illinois, through the Illinois State Toll Highway Authority (Tollway), is seeking to award a one-year sole source contract to Kapsch TrafficCom USA, Inc. for electronic toll collection equipment and services. The contract will include the purchase of up to 100,000 I-PASS transponders per month, as well as next-generation roadside equipment such as transponder readers and antennas. Additionally, the contract will cover the repair and upgrade of the existing transponder technology infrastructure. The total estimated contract value is $8.1 million, with a term from November 1, 2023, to October 31, 2024, with no renewal options. Kapsch was selected as the sole economically feasible source for this procurement due to the Tollway's membership in the E-ZPass Group, which requires the use of E-ZPass Group's competitively selected vendors. Kapsch was awarded an E-ZPass Group contract and is offering the most competitive pricing, particularly for the transition from existing transponders to lower-cost 6C sticker tags.

The Tollway is reliant on the uninterrupted supply of transponders and related equipment to support its 100% electronic toll collection operations, which generated $1.4 billion in revenue in 2022. As a member of the E-ZPass Group, the Tollway is obligated to use the approved transponder technology and equipment provided by the Group's contracted vendors to maintain interoperability across the toll network. The justification details the Tollway's commitment to the E-ZPass Group and the lack of any economically or technically feasible alternative for an interim solution. The hearing will be canceled unless an interested party submits written comments or makes a written request for a public hearing by Friday, October 6, 2023, at 4 p.m.