Title
Regional Transit Fare Collection System Contract Amendment (Ordinance S-52023) - Citywide
Description
Request authorization for the City Manager, or their designee, to approve amendments to Contract 152565 with Vix Technology (USA) Inc. for the purchase of equipment, materials, and professional services to support and enhance the regional transit fare collection system. Further request to authorize the City Controller to disburse all funds related to this item. Additional funding will not exceed $7,500,000.
Report
Summary
The City of Phoenix and Valley Metro recently completed a multi-year project to modernize bus and light rail fare collection throughout the region. The new system went into operation in the summer of 2024, and included all new fare collection equipment, new reloadable and online fare media, and an online app for riders to plan their trip and manage their fare accounts. Vix Technology (USA) Inc. (Vix) provides the fare collection system platform, including cloud hosting, hardware, software, and support.
The current contract with Vix includes both the project component, which will soon be closed out, and ongoing operations and maintenance support. These amendments would add additional elements to the ongoing maintenance and support, including dedicated on-call technical support, replacement of vandalized equipment, additional fare media, ongoing improvements to the mobile app and web site, and development and support for future system enhancements. Future enhancements could include integration of payments for other transit modes, new app and online capabilities, as well as new and evolving payment options.
The transit fare collection system is funded by and supports the entire region. Since the Public Transit Department manages the transit region’s technology infrastructure, the support and maintenance for the system is part of the Vix contract with the City. Decisions on the priority and funding for future enhancements will be coordinated with Valley Metro.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
In accordance with Administrative Regulation 3.10, the contract with Vix Technology Inc. was competitively procured through a Request for Proposals in 2019. In accordance with City and Federal Transit Administration (FTA) practices and policy, a determination memo based on Special Circumstances Without Competition has been approved to authorize the additional scope of services included in these amendments.
Contract Term
The term of this contract will remain the same, having commenced July 1, 2020, for a 13-year term with two optional three-year extensions.
Financial Impact
This request is for additional funding not to exceed $7,500,000. The authorized funding for the original contract for project implementation and ongoing support was $61,228,625. The ongoing support funding is still available for future years, and with this additional funding the total amount will not exceed $68,728,625.
Funds are available in the Public Transit Department’s budget from various sources, including Regional Public Transit Funds and Federal grants.
Concurrence/Previous Council Action
• This item was recommended for approval at the Transportation, Infrastructure and Planning Subcommittee meeting on May 21, 2025, by a vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.