E-ZPass: A Case Study in Interagency Coordination Linda M. Spock NYMTC Executive Development March 13, 2009
E-ZPass:A Case Study in Interagency Coordination
Linda M. SpockNYMTC Executive Development
March 13, 2009
It was (almost) 20 years ago today…
History was made at an IBTTA conference
Changed “AVI” to “ETTM”First meeting of toll agency headsVoluntary decision to work together
E-ZPass Interagency GroupOriginal “Member” Agencies
MTA Bridges and Tunnels(formerly Triborough Bridge and Tunnel Authority)
New Jersey Highway Authority(Garden State Parkway)
New Jersey Turnpike AuthorityNew York State Thruway AuthorityPennsylvania Turnpike CommissionPort Authority of NY & NJ(Hudson River crossings)
South Jersey Transportation Authority(Atlantic City Expressway)
®
Interagency Policy Statement
Benefits of Technology– Customer convenience– Congestion relief– Cost reduction/business opportunities– Traffic management– Enhanced regional mobility
Interagency Objective– Adopt uniform specifications to enable procurement
of a unified and compatible regional system of tags and readers
Basis for Interagency Coordination
Need to avoid incompatible or interfering systems
Customer convenience of single tag in context of customer overlap
Cost advantages of multi-agency purchasing power
Process, Part I
Issue– What to select
Solution– Common front-end hardware– “Read-Only” with migration path, or
“Read/Write” from the outset
Key Milestones– January 1991: Begin developing draft tech specs– Summer/Fall 1991: Comments on draft specs
Process, Part II
Issue– How to select
Solutions– Joint RFT and selection followed by individual
agency acceptance of irrevocable offer– Multi-committee structure with each agency
represented
Key Milestones– January 1992: Release of interagency RFT– Spring 1992: Evaluation of written proposals– June 1992: Selection of two technology finalists
Interagency Committees Involved in Technology Selection
Procurement Technical Evaluation Negotiating Team Legal
Policy
Executive
Process, Part II
Issue– How to select
Solutions– Joint RFT and selection followed by individual
agency acceptance of irrevocable offer– Multi-committee structure with each agency
represented
Key Milestones– January 1992: Release of interagency RFT– Spring 1992: Evaluation of written proposals– June 1992: Selection of two technology finalists
Process, Part III
Issues– How to prove read/write technology really works– How to share business risks with vendor– How to protect public agencies’ interests
Solutions– Comprehensive field testing of two finalists– Parallel negotiation of commercial business terms
Key Milestones– Summer/Fall 1992: Round 1 of field testing– December 1992: Receipt of “best and final” offers– Spring/Fall 1993: Round 2 of field testing– March 18, 1994: Selection of Mark IV
Post- Selection Milestones
Individual agency acceptance of separate but identical Irrevocable Offers Implementation of E-ZPass on agency-specific timetablesFormal Interagency Operating Agreement
Updated information about E-ZPass provided by James A. Crawford, Executive Director of the E-ZPass Interagency Group or obtained from the IAG website athttp://www.e-zpassiag.com/
Today
Toll Agencies and Companies joined together in
Offering the public a common method of seamless toll payment
Committed to prompt reconciliation of accounts and charges
Unified by a common belief of“ONE TAG, ONE ACCOUNT”
A Well-Known and Highly Accepted Brand
Today
TodayQuick Facts:
•Over 18 million tags in circulation. •Over 10 million accounts. •Representing 80% of toll collection in U.S. •67% Transaction Penetration Rate.• Overall 65% Revenue Penetration Rate. •Over 100,000 tags issued per month. •Over 70,000 accounts opened per month. •Accepted in 14 States with 25 Members.
Application
Choose to JoinAgree to the Operating Agreement,
Reciprocity & Service Mark LicenseApplyPay Initial FeeApplication Acceptance
Transition
Develop System to meet IAG File SpecSet Up Back OfficeSet up Network LinkTest & VerifyIssue TranspondersDownload all Files
Operations
Nightly DownloadsNightly UploadsMonthly ReciprocityQuarterly CC FeesSubmit Data MonthlyParticipate in Committees
Expansion to E-ZPass PlusWhat is E-ZPass Plus ?E-ZPass customers that automatically replenish their accounts with credit cards are eligible to pay parking fees with their E-ZPass tags at facilities listed below. Your account will be debited for the parking fee if the fee is less than $20.00. Parking fees greater than $20.00 will be charged directly to the credit card used to replenish the account.
E-ZPass Plus facilities:•Albany International Airport•JFK, La Guardia, & Newark Liberty International Airports•Atlantic City International Airport •Atlantic City New York Ave Parking Garage
ROLE OF COMMITTEESEXECUTIVE MANAGEMENT COMMITTEE
CEO/COO or representativesAdopts Policy for IAGApproves New MembersApproves changes in AgreementsProvides Oversight to Legal CommitteeApproves Annual BudgetAppoints Executive Director
POLICY COMMITTEETop ETC Operating StaffFormulates Policy for IAGRecommends changes for various Agreements of IAGApproves the Policy MatrixProvides Oversight to other Committees
ROLE OF COMMITTEESLegal Committee
Reviews all approved documents of IAG and recommends changes where appropriateProvides advice to Policy and Executive Management CommitteeDrafts Operating Agreements
Technical CommitteeApproves all Hardware used by IAGRecommends vehicle placement locations for transpondersDevelops standards for hardware and softwareRecommends Procurement Criteria
ROLE OF COMMITTEESProcurement Committee
Assists in drafting any documents for Procurement of Services or for Hardware on behalf of entire IAGProvides advice to new members on various agreements and procurement issues
Finance CommitteeDevelops Annual BudgetRecommends any changes in Initiation or Annual FeesReviews ways to reduce costs for members
ROLE OF COMMITTEESOperations Committee
Follows issues concerning Plaza OperationsRecommends operational standards for toll plazasMaintains records on plaza configurationsProvides assistance to new members
PR & Communications CommitteeRecommends ways to protect service markRecommends modifications to Web sitesRecommends participation in marketing opportunitiesEvaluates use of Service Mark in signingConsiders outside opportunities involving use of Service Mark
TASK FORCESReciprocity Task Force
Includes CSC OperatorsAddresses issues involving interchanges of fundsCoordinates Testing for new Members and Relocated CSC’sAddresses technical issues involved in file transfersRecommends policy changes as appropriate
Next Generation Task ForceIdentified potential vendors and products for future of IAG ETCDeveloped an RFP for the acquisition of HardwareCoordinate responses to any questions asked in Proposal ProcessProvide framework for evaluation of proposals and selection of a final vendor
IAG Challenges
Phased initial implementation resulted in unequal costsOngoing challenge of operating agreement requirement of unanimity for decisions involving more than $10K per agency Diversity of agencies in size and tenure
Future Issues
National vs. regional interoperability
Technological change, but with backward compatibility
More tolling for infrastructure
New frontiers in interoperability (ATI)
The Alliance for Toll Interoperability
To Promote and Implement Interoperability between Toll Operators for the Benefit of Customers and Agencies
“”
Mission:
E-ZPass Interagency Group
Keys to Success:– High level commitment to common
vision– Willingness to compromise and
adapt
Bottom Line:
+ = andNew Technology
Interagency Cooperation
Improved Service
Seamless Transportation
System in Action