• Subscribe
  • Magazine
  • 40 Under 40
  • Supplier's Directory
  • Advertise
  • Contact Us
    1. Technology
    2. Fare Collection

    MBTA fare transformation program finalizes contract amendment

    June 19, 2020
    The renewed public-private partnership between MBTA and Cubic, with capital partner John Laing, will provide a seamless commute experience with a modernized contactless payment system.
    Related To: Massachusetts Bay Transportation Authority (MBTA)
    MBTA
    Part of the Fare Transformation Program includes the ability to pay for a trip on all Zone 1A stations on the Fairmount Commuter Rail Line with a CharlieCard.
    Part of the Fare Transformation Program includes the ability to pay for a trip on all Zone 1A stations on the Fairmount Commuter Rail Line with a CharlieCard.

    A contract amendment memorializing the terms and conditions necessary to fulfill the direction and authorization provided by the Fiscal and Management Control Board (FMCB) has been finalized by the Massachusetts Bay Transportation Authority (MBTA) and the Cubic | John Laing consortium.

    This contract amendment completes the process started Dec. 9, 2019, when the FMCB approved a revised strategy for the Fare Transformation Program. The contract amendment signed June 15, 2020, incorporates improvements to the original “AFC 2.0” contract based on feedback from customers, advocates and policy makers.

    “We’re pleased to have reached this major milestone in our continued efforts to completely transform the T’s fare payment system, and critical to that effort is incorporating the feedback we’ve received from our riders and stakeholders,” said MBTA General Manager Steve Poftak. “I want to thank the Fare Transformation Program team for their diligent work on this achievement, our partners Cubic | John Laing for their collaboration in adapting these changes, and our riders especially, for providing feedback that allows us to deliver a fare system that best their needs.”

    The improvements implemented with this program will allow for payment flexibility for customers including mobile payment, contactless debit or credit cards and agency-issued fare media for those without a bank card or who prefer not to use one. As features are rolled out, the new system will allow for a more flexible fare system, with the ability to offer benefits such as zone and distance-based fares, time of day fares and fare capping. These are in addition to the quality-of-life improvements like shorter wait times for bus boarding and unified fare transference across all MBTA modes which will result from the improvements, says Cubic.

    The project is structured as a Public-Private Partnership with the project financing being led by John Laing, a leading originator, investor and manager of capital projects.

    “John Laing’s commitment to this project is a testament to our ambition to work on projects which deliver long-term community benefits,” said David Wylie, asset director of John Laing. “The comprehensive upgrade and modernization of the MBTA fare system will bring a state-of-the-art, safe and secure system, which will also encourage more use of public transportation. We look forward to the roll out.”

    The amended contract includes both the capital cost of the new system and 10 years of operations and maintenance with options for two additional five-year terms. The amended contract also incorporates agreed-upon schedule milestones and incentives for milestone achievement. The terms of the amended contract are consistent with the pricing and strategic “reset” approach presented to and approved by the FMCB April 27, 2020, says MBTA.

    The new timeline for the rollout allots more time for both testing and installation of the new system and for customer migration with a more phased approach to fare collection system changes. The new system will offer a variety of new options for fare collection and fare payment and will enable easier modifications to fare policies such as those that could be used in the recent COVID-19 pandemic. 

    “This achievement is the result of hard work by a wide variety of people,” said MBTA Chief Transformation Officer Ron Renaud. “This included customers and advocates who provided valuable feedback, our project team who worked to synthesize that feedback into updated requirements, and our partners at Cubic | John Laing who worked with us to amend the contract to make these changes.”

    The overall phased Fare Transformation Program includes many near- and long-term improvements, including:

    • The ability to pay for a trip on all Zone 1A stations on the Fairmount Commuter Rail Line with a CharlieCard – which will be available June 22, 2020;
    • Deploying fare vending machines that dispense CharlieCards;
    • All-door boarding on MBTA buses and surface stops along the Green Line; and
    • Integrating ferries and the entire commuter rail network into the CharlieCard system.

    Over the long-term, MBTA says the program will establish a larger, thoughtful network of retail sales outlets and fare vending machines centered on the needs of T customers. The MBTA says it intends to significantly expand the network for all forms of payment. The final phase, which will extend the new payment system to the commuter rail system, is scheduled for 2024.

    “We listened to the asks of the public through various meetings and channels, and remain strongly committed to our partnership with the MBTA to reflect and deliver the state-of-the-art contactless payment solution to its transit riders and commuters,” said Jeff Lowinger, president of Cubic Transportation Systems. “I commend our teams for their relentless work, throughout the current COVID-19 pandemic, to finalize this agreement and ensure progress for a more sustainable roll out.”