october 15, 2007 smart card. smart travel. translink ® card procurement study update presentation...
DESCRIPTION
3 The existing TransLink ® card uses an ST-19 microchip that is no longer in production To ensure sufficient inventory, MTC and BART initiated a study to identify the direction for replacement TransLink cards The study scope includes: –Review of industry trends, including use of other form factors, limited use smart cards, and moving to a contactless-only environment –Development and evaluation of alternatives for replacement cards: Replacement chip for ST-19 Open standards-based dual-interface card Contactless-only card To address the immediate need of ensuring sufficient card inventory, priority was put on the next card procurementTRANSCRIPT
October 15, 2007
Smart Card. Smart Travel.
TransLink® Card Procurement Study UpdatePresentation to theTransLink Operating Group
2
• In 2004, the TransLink® Consortium set aside about $7 million for smart card procurement– Staff estimated this would enable procurement of 1.3 million
cards– At that time, staff estimated that demand would exceed 1.3
million cards within the 10-year budget horizon• MTC has already executed two smart card orders
– The first order covered 400,000 cards– The second order covered 95,000 cards
• As of October 12, about 19,750 Phase II TransLink cards were in circulation
Background
3
The existing TransLink® card uses an ST-19 microchip that is no longer in production
• To ensure sufficient inventory, MTC and BART initiated a study to identify the direction for replacement TransLink cards
• The study scope includes:– Review of industry trends, including use of other form factors,
limited use smart cards, and moving to a contactless-only environment
– Development and evaluation of alternatives for replacement cards:
• Replacement chip for ST-19• Open standards-based dual-interface card• Contactless-only card
• To address the immediate need of ensuring sufficient card inventory, priority was put on the next card procurement
4
TransLink® card inventory appears adequate in the short term
Original Inventory
Inventory after 2nd
Procurement
Inventory after Free Card
Giveaways*Adult Cards
251,000 306,000 136,000***
Senior Cards
61,000 71,000 71,000
RTC Cards 90,000 120,000** 120,000Total 402,000 497,000 327,000• As of October 12, 2007, 19,750 cards were in circulation. 6,150
of the cards were RTC TransLink Cards. Only a small fraction were Senior Cards.
* Free cards will be distributed over time** RTC cards will be distributed at a rate of 36,000 per year*** Reflects 170,000 free cards to be distributed by Phase 2.2 and 2.3
agencies
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The forecast shows adult card inventory running short by mid-2009
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100000
200000
300000
400000
500000
600000
700000
800000
900000
Pre-La
unch
2007
Q3
2007
Q4
2008
Q1
2008 Q
2
2008
Q3
2008
Q4
2009
Q1
2009
Q2
2009
Q3
2009
Q4
2010
Q1
2010
Q2
2010
Q3
2010
Q4
2011
Q1
2011
Q2
Quarter
Car
d Q
uant
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Adult Cards RTC Discount Card Senior CardsAdult Inv. RTC Inv. Senior Inv.
Adult Card Inventory = 306,000
Adult card inventory will run out in Q2 2009
RTC Card Inventory = 120,000
Senior Card Inventory = 71,000
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Maintaining Card Inventory in the Short and Mid Term
• Card demand forecast shows demand will average about 11,500/month over the next two years– If procurement timetable is 12 months, inventory should never
fall below 138,000 cards (11,500 x 12 months) in the next 2 years
• Beginning in mid-2009, the program anticipates rapid growth in the number of cardholders– Policy decisions at SFMTA regarding continued availability of Fast
Pass® will affect speed of adoption• Recommendation: order 450,000 cards to meet forecasted
demand through late-2010– This quantity should allow maintenance of minimum inventory
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MOT/ERG submitted a proposal outlining options for replacement cards
• Utilize existing card architecture– Option 1: Replace with an ST-19 compatible chip, no
enhancements– Option 2: Replace with an ST-19 compatible chip with
enhancements (increased memory, etc.)• Open source architecture
– Option 3: Port the TransLink application to a Java card• Parallel development
– Option 4: Option 1 or 2 in parallel with Option 3
The proposal did not address a contactless-only and non-proprietary open source standards
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After review of the proposal, the task force recommends Proceed with Option 4
• Replacement with the ST-19 compatible chip, no enhancements– Minimizes system risk– Minimizes schedule risk (approximately 1 year)– Solution with no additional development costs
• Continue discussions with Contractor for a future open source solution– Allows for competitive sourcing of cards– Allows most flexibility for future of TransLink (other form factors,
additional applications, etc.)
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Next Steps
• Obtain Consortium approval for change order for card order #3 (450,000 cards, per Contract, ~$4.50/card)– Price break occurs at orders greater than 100,000 cards
• Issue change order for card order #3• Continue discussions for open source solution
– Issue change notice for Contractor to provide cost for an open source solution
• Continue to look at contactless-only cards as a possible long-term approach
• Complete review of industry trends• Request participation from other operators
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Timeline for card orders
Activities
Month
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovObtain Approval and Issue Change Order for Card Order #3
Procurement of Card Order #3
Issue Change Notice for additional option
Continue discussions for future solution
Selection of option for future card orders – TBD
Receive cards