In-Depth: Cubic Gets Must-Win Contract in Philadelphia, Beating Accenture on Price; Incumbent Conduent Sent Packing
Cubic Transportation Systems, as expected, won a major fare-system contract from the Southeastern Pennsylvania Transportation Authority in Philadelphia, with the SEPTA board approving a $211 million deal Thursday.
It was considered a must-win contract for Cubic, which has been seeking to turn around its fortunes after failing to win a major competitive contract for more than 18 months.
Tip Sheet: Cubic Contract Award Back on Agenda for SEPTA Board Meeting in Philadelphia
The proposed award of a $211 million fare-system contract for Cubic Transportation Systems is back on the agenda for a board meeting of Philadelphia transit agency SEPTA scheduled for next week, where the award is expected to gain approval.
As Mobility Payments reported last month, SEPTA had abruptly pulled a similar agenda item a few days before the board’s regular December meeting, with an agency spokesman telling Mobility Payments only that “discussions about the proposal will continue between board members and SEPTA staff.”
U.S. Agency SEPTA was to Vote Today on Cubic Contract Award before Canceling Agenda Item–was Rival Vendor Conduent Involved?
After months of delay, the board vote on a much-anticipated award of a contract for the Key 2.0 fare system by Philadelphia transit agency SEPTA was scheduled for today. The agency staff has recommended that Cubic Transportation Systems be hired for the $211 million project.
Then SEPTA abruptly pulled the agenda item late last week, with an agency spokesman telling Mobility Payments only that,
Cubic Expected to Win Major Fare-System Contract in Philadelphia
Cubic Transportation Systems is expected to win the major fare-system project from the Southeastern Pennsylvania Transportation Authority, or SEPTA, an up to $211 million deal to implement and operate the agency’s planned Key 2.0 system.
Update: SEPTA abruptly pulled a proposed resolution from the board agenda for the Dec. 19 meeting this week to approve Cubic, with a spokesman telling Mobility Payments only that "discussions about the proposal will continue between board members and SEPTA staff." He did offer more details for the change. An earlier agenda (see page 17), as of last Thursday, Dec. 12, had the proposed resolution scheduled to go foward for a vote Dec. 19 with a recommendation to hire Cubic. There's no evidence yet that the SEPTA staff has withdrawn that recommendation.
Tip Sheet: Washington, D.C., Short Lists Vendors for Open-Loop Payments Project
The Washington (D.C.) Metropolitan Area Transit Authority, or WMATA, one of the largest subway operators in the U.S., has narrowed its procurement for an open-loop payments project to a short list containing as few as two vendors, Mobility Payments has learned.
The agency would not release the names of the short-listed vendors, but Mobility Payments has learned they include
Tip Sheet: LA Metro Considers Open-Loop Payments, Sole-Source Contract for Cubic
The Los Angeles County Metropolitan Transportation Authority is believed to be looking at introducing open-loop payments and is considering rehiring Cubic with a sole-source contract to implement the new payments service, along with other account-based ticketing, Mobility Payments has learned.
Some of the discussions are believed to be preliminary, but a sole-source deal is a real possibility for
Tip Sheet: Cubic Lays Off More Employees; Contends It Needs to ‘Become Leaner’ and More Competitive
Cubic Transportation Systems is laying off more employees in an effort, it says, to “become leaner and more responsive” to the market, Mobility Payments has learned.
The U.S.-based vendor, the largest fare-system supplier globally, already laid off more than 200 employees last summer. The latest round of layoffs is expected to be smaller than this previous one.
Tip Sheet: Why is EMV-Enabled Closed-Loop OMNY Card Failing to Take Off?
As Mobility Payments reported late last month, New York’s Metropolitan Transportation Authority has been issuing a reloadable closed-loop OMNY card since October 2021, which uses white-label EMV technology. But the card still makes up only 3% of OMNY transactions, according to an MTA spokesman.
That is a low rate of usage, especially given that the card is meant to serve riders who cannot or will not use credit and debit cards or open-loop cards in NFC wallets. This represents a lot of riders.
Philadelphia Launches Much-Delayed Open-Loop Service, as It Procures New Fare System
Philadelphia transit authority SEPTA launched its long-delayed open-loop payments service Friday under its existing contract with fare-system supplier Conduent, even as the authority pursues the procurement of a new fare system that could end up replacing the vendor.
SEPTA, or Southeastern Pennsylvania Transportation Authority, launched open-loop on its buses, subway and trolleys, with commuter rail planned for early next year. All modes together will “include” use of 4,200 terminals that Conduent supplied, a SEPTA spokesman confirmed Friday to Mobility Payments.
Philadelphia Transit Agency Seeks to Overhaul ‘Troubled’ Fare System
For years, Philadelphia transit authority SEPTA was supposed to be the next big agency in North America to support open-loop payments. Now it appears that a launch of open loop might not happen until at least 2026, as part of an overhaul of a fare system that has been beset by delays and cost overruns.