MBTA Fare Transformation Program moves forward

Moving one step forward toward fare transformation, the Massachusetts Bay Transportation Authority (MBTA) Fiscal Management Control Board approved a contract amendment Friday over the Public Private Partnership agreement involving the MBTA and the Cubic|John Liang consortium.

The $935.4 million contract includes capital costs for a new fare collection system as well as 10 years of operation and maintenance payments. Although an increase of $21.2 million over the original contract approved in 2018, the agency said the agreement keeps the new collection system cost-effective, as the new system is projected to collect over $8 billion in its first 10 years.

The amendment was based on feedback from customers, advocates, and policymakers who felt the system needed customer-focused upgrades to the systems. The fare transformation initiative is expected to begin next year and will give consumers the ability to obtain fare cards more easily, and will eliminate the cash/ticket surcharge by 2021.

“Under this program reset, we’ll be able to deliver one system that can be used across all modes that meets the needs of our customers today, and has the ability to adapt to future needs,” said MBTA General Manager Steve Poftak. “Especially in light of recent changes to daily life caused by COVID-19, it’s more important than ever to move toward a dynamic system with contactless options that can withstand major changes to conditions that would otherwise undermine a legacy system of fare collection.”

MBTA said its existing fare collection system collected more than $670 million in fares during 2019, but that the aging system cannot support the features users want to see in their fare collection system. Additionally, the system requires substantial maintenance and upgrades, MBTA said.

“The investment in new fare collection technology is an investment in the MBTA’s future,” Poftak said. “Fare collection is critical both to funding services and to building a system that provides dynamic capabilities, enhances access to transit, and promotes affordability and can adjust to future customer needs.”

The original contract, signed in 2018, authorized $356.8 million in capital costs for the new system and $366.5 million for 10 years of operation and maintenance charges, totaling $723.3 million. The new contract authorizes $723.3 million for capital costs and reduces the operation and maintenance charges to $212.1 million, for a total of $935.4 million.