TORONTO TRANSIT COMMISSION REQUEST FOR PRE-QUALIFICATION
STATEMENTS OPEN STANDARDS-BASED FARE PAYMENT SYSTEM REFERENCE NO:
R39PN10871
Submit complete Pre-Qualification Statement package to: Toronto
Transit Commission Materials and Procurement Department Project
Procurement Section 5160 Yonge Street, 6th Floor Toronto, Ontario
M2N 6L9 Attention: Joanna Raimondo Senior Contract
Administrator
To be received by the TTC no later than 4:00 p.m. on Friday,
September 10, 2010, Please submit one (1) original and six (6)
copies of the Submission.
Table of Contents PAGE 1. 2. 3. 4. 5. 6. 7.
INTRODUCTION...............................................................................................................................1
DEFINITIONS
....................................................................................................................................1
PROCUREMENT SCHEDULE
...........................................................................................................1
RESERVED RIGHTS OF THE COMMISSION
..................................................................................2
EVALUATION
CRITERIA..................................................................................................................2
SUBMISSION
REQUIREMENTS.......................................................................................................2
DRAFT SCOPE OF WORK
............................................................................................5
Appendix Appendix Appendix Appendix
A Corporate Information B Joint Venture (if applicable) C -
Detailed Technical Submittal Information D Declaration
Statement
TORONTO TRANSIT COMMISSION Open Standards-Based Fare Payment
System Reference No. : R39PN10871
PRE-QUALIFICATION STATEMENT Page 1
1.
INTRODUCTION
The Toronto Transit Commission is soliciting from interested
parties Pre-Qualification Statement Packages to establish a list of
pre-qualified bidders to participate in a procurement process for
the funding, acquisition, installation, operation, repair, and
maintenance of a new, open standards-based fare payment system.
Respondents must demonstrate they meet all the requirements listed
in the submission requirements to the satisfaction of the
Commission in order for them to be considered qualified and short
listed to participate in a Structured Multi Phase Bid Process
(SMPBP). SMPBP is a process in which the technical and commercial
requirements are discussed with all qualified potential proponents
to finalize requirements prior to a formal Request for
Proposal.
2.
DEFINITIONSThe Commission: The Toronto Transit Commission. TTC:
The Toronto Transit Commission. Respondent: The party or parties
submitting the pre-qualification statement. Proponent: The party or
parties submitting the pre-qualification statement and evaluated
and judged as pre-qualified. Consultant: The successful proponent
submitting a proposal for the open standards-based fare payment
system. Project: Refers to open standards- based fare payment
system. Work: services or any part thereof, required by the
contract for the Project.
3.
PROCUREMENT SCHEDULE
Following is the proposed procurement schedule which is subject
to change at the discretion of the TTC: Issue Request for
Pre-Qualification Statements Issue draft Commercial Terms Close
Request for Pre-Qualification Statements Evaluate Pre-Qualification
Statement Submissions Kick Off Meeting with Proponents (review
SMPBP process) Issue draft Request for Proposal Documents to
Proponents Conduct confidential meetings with Proponents Conduct
meetings/negotiate commercial terms Issue Request for Proposal
(final technical and commercial terms) Proposal responses due
Complete Proposal Evaluation obtain authorization and Contract
award August 9, 2010 August 23, 2010 September 10, 2010 September
17, 2010 September 24, 2010 September 24, 2010 October 4-8, 2010
October 11-22, 2010 October 25, 2010 October 29, 2010 November 30,
2010
TORONTO TRANSIT COMMISSION Open Standards-Based Fare Payment
System Reference No. : R39PN10871
PRE-QUALIFICATION STATEMENT Page 2
4.
RESERVED RIGHTS OF THE COMMISSION
The Commission, at its sole discretion, may request
clarifications or request additional information, as deemed
necessary to evaluate the Pre-qualification Statement Package
submissions. The Commission retains the sole discretion to
determine whether a submission is responsive and if the Respondent
is capable of performing the Work of the contract. The Commission
reserves the right, at its sole discretion, to determine the number
of pre-qualified Proponents. The Commission reserves the right to
not proceed with a Request for Proposal.
5.
EVALUATION CRITERIA
Submissions will be evaluated on the basis of the information
provided by the Respondent. Each submission will be re viewed to
determine if the submission is responsive to the submission
requirements outlined herein. Selection of Proponents will be based
on the pass/fail criteria listed herein and relevant information
provided by the Respondent in fulfillment thereof. Respondents who
fail to provide any of the information/documentation required under
the Submission Requirements below may have their submissions
rejected without further evaluation. The Respondent should exercise
care when completing its submission as failure to complete the
documents fully or to provide all information required will affect
the evaluation of its submission and may cause its submission to be
rejected. The Respondent must ensure that all information provided
is correct, as it may be investigated by the Commission.
6.
SUBMISSION REQUIREMENTS
In addition to the signed Appendix D Declaration Statement, the
Respondent is requested to submit the information listed below in
order for their submission to be considered and such information
shall be evaluated based on meeting the requirements. Respondents
are requested to structure their submission in accordance with the
categories listed below: A. Cover Page (to include identification
of all Team Members) B. Cover Letter (2 pages maximum) C. Table of
Contents D. Executive Summary (Optional) E. Corporate and Team
Information
TORONTO TRANSIT COMMISSION Open Standards-Based Fare Payment
System Reference No. : R39PN10871
PRE-QUALIFICATION STATEMENT Page 3
.1
Corporate Information use Appendix A to the Pre-Qualification
Statement .1 Provide a single contact person for all future
communication between TTC and the respondent. Please identify the
contact persons name, title, organization, address, telephone
number, fax number, and email address. Provide a summary of
relevant corporate experience of the Respondent. The information
requested shall specifically highlight the following areas:
Background and capabilities; Number of years in business; Depth of
available relevant resources; Relevant corporate experience
completed since 2000, including the following: Project Name and
Location; Client Reference Name & Phone No.; Other Major
Consulting/Subconsulting Participants; Project Capital Cost CDN$;
Project Duration; Description of the Project; Description of
Services Provided;
.2
.3
If the Pre-qualification Statement is being submitted by a Joint
Venture, one Corporate Summary should be completed that includes
all requested information for each of the Joint Venture
participant. Complete Appendix B Joint Venture and submit as part
of the Pre-qualification Statement. One of the joint venture
participants shall be nominated as being the principle in charge
during the prequalification process. The principle in charge shall
be authorized by the other joint venture participants to receive
instructions for and on behalf of any and all participants of the
joint venture. Each joint venture participant shall demonstrate its
authorization of the participant in charge by submitting with the
Prequalification Statement a letter signed by a legally authorized
representative of each joint venture participant.
.2
Team Information A summary of the directly related and relevant
experience and qualifications of the proposed Program Manager(s),
Project Manager(s), and Design Engineer, as well as all key
proposed project team members (including Subconsultant staff). The
resumes should be tailored to specifically highlight relevant
professional and academic qualifications and experience on projects
similar to or directly related to the Scope of Work of this
Prequalification Statement. The information requested shall
specifically highlight the following areas: number of years of
direct experience; technical qualifications, including academic
qualifications and professional associations;
TORONTO TRANSIT COMMISSION Open Standards-Based Fare Payment
System Reference No. : R39PN10871
PRE-QUALIFICATION STATEMENT Page 4
-
a list of relevant experience for each key project team member
specifically highlighting their relevant experience and
qualifications, roles and responsibilities, description of the
project, services provided, complexity, etc. a list of each Team
Members references. These references should be able to describe the
relevant qualifications and capabilities of Team Members seeking to
take a leading role to design, operate and maintain the TTCs
transit fare collection operation.
.4 .5
Controlling Interest: Identify the individuals or companies who
hold an interest in each Team Member. Financial Information: Please
produce information sufficient to document financial viability and
the ability to perform the services requested including but not
limited to Audited Financial Statements. Expected Advisors:
Identify the companies and individuals who are expected to act as
legal, financial, or other advisors for the Team.
.6
F. Open Fare System Project Methodology and Approach to the Work
Each submission shall be clearly designed and presented with the
goal of allowing the TTC to readily ascertain if the proposed
Project Methodology and approach to the Work will accomplish the
TTCs goals for this transaction as described in the Scope of Work.
The technical aspects of the proposed Project Methodology and
Approach to the Work must be as detailed as possible to help in
this endeavor. Respondents are encouraged to discuss items such as:
project understanding, approach to the work, schedule, challenges
and solutions to the design, operating and maintenance, etc. Please
also provide a preliminary work flow process map which identifies
the entire proposed Open Fare System with the different service
provider and Team Member functionality identified with the process
map. H. Detailed Technical Submittal Information When preparing
submissions, TTC requires that the Respondent addresses in specific
terms and provide detailed discussion, that addresses each of the
criteria listed in Appendix C - Detailed Technical Submittal
Information for the evaluation process, as well as other discussion
that demonstrates the Respondents responsiveness to requirements of
the Scope of Work. In addition, respondents are required to
complete Appendix C by providing a specific reference(s) to
sections and/or pages in their submission that addresses each of
the listed evaluation criteria. Additionally, the respondent must
state whether the section addresses the evaluation criteria by
indicating a yes or no answer in the column provided.
END OF DOCUMENT
APPENDIX A CORPORATE INFORMATION PRE-QUALIFICATION STATEMENT
REFERENCE NO. R39PN10871 Company Name:
___________________________________________ Registered Address:
________________________________________ Contact Name and Title:
______________________________________________ Telephone No.:
______________________________________________ Fax No.:
____________________________________________________ Email Address:
_______________________________________________
PROPONENTS RESPONSE 1. CORPORATE PROFILE a) Background and
capabilities
b) Number of years in business
c) Depth of available relevant resources 2) RELEVANT CORPORATE
EXPERIENCE
END OF DOCUMENTAppendix A Page 1 of 1
APPENDIX B JOINT VENTURE PRE-QUALIFICATION STATEMENT REFERENCE
NO. R39PN10871
NAMES OF COMPANIES FORMING JOINT VENTURE
NAME OF JOINT VENTURE (if applicable)
NAME OF PARTICIPANT IN CHARGE
EACH JOINT VENTURE PARTICIPANT SHALL ATTACH LETTER OF
AUTHORIZATION AS DETAILED IN SECTION 6, E, 3.
END OF DOCUMENT
APPENDIX A Page 1 of 1
Appendix C - Detailed Technical Submittal Information
Pre-Qualification Statement Reference No. R39PN10871INSTRUCTIONS:
Provide specific references to the section(s) and page(s) where
each of the evaluation criteria are addressed and documentation of
compliance is provided. Reference to Specific Section of
Respondent's Response where Compliance with Criteria is Addressed
and Documentation is Provided Section of Response (pg. Section
Addresses # or Sect.) Specifically (Y/N) Category A CriteriaIs the
proposed solution based on open standards of the financial services
and payments industry? Is the proposed solution based on an open
architecture? Is the proposed solution account-based? Is the
proposed solution "online" and, therefore, configured to authorize
transactions in real-time (within the transaction speeds described
in the Scope of Work)? Does the proposed solution account for and
provide a solution to all data communications networks required for
realtime communications at subway and surface locations? Does the
proposed solution include a pre-paid, contactless card program that
is free of fees when used for TTC transit services (including a
pervasive card issuance and reload network across the TTC's system,
as well as through Toronto area retail locations)? Does the
proposed solution implement contactless readers on every powered
turnstile? Does the proposed solution implement contactless readers
on every surface vehicle? Does the proposed solution implement a
proof-of-payment ("POP") system (equipment and procedures) for
streetcars and LRV's? Does the proposed solution include open-loop
pre-paid, contactless card vending machines (with reload
capabilities) in every TTC station? Does the proposed solution
enable the TTC to satisfy all applicable Payment Card Industry
("PCI") requirements? Does the proposed solution enable the TTC to
satisfy all applicable privacy standards? Does the proposed
solution (and accompanying business terms) protect the TTC against
revenue losses, such as equipment and system outages that would
result in revenue losses?
Technical & Operating Qualifications Assessment
Page 1 of 4
Appendix C - Detailed Technical Submittal Information
Pre-Qualification Statement Reference No. R39PN10871INSTRUCTIONS:
Provide specific references to the section(s) and page(s) where
each of the evaluation criteria are addressed and documentation of
compliance is provided. Reference to Specific Section of
Respondent's Response where Compliance with Criteria is Addressed
and Documentation is Provided Section of Response (pg. Section
Addresses # or Sect.) Specifically (Y/N)Does the proposed solution
(and accompanying business terms) provide functionality and
economic assurances to track, audit, and remit all TTC revenues?
Does the proposed solution (and accompanying business terms)
provide functionality and economic assurances to monitor, control,
and eliminate customer chargeback risk for the TTC? Does the
proposed solution include a business continuity plan and processes?
Does the proposed solution (and accompanying business terms)
provide functionality and economic assurances to monitor, control,
and eliminate fraudulent transaction risk for the TTC? Does the
proposed solution provide a customer support operation in the form
of a web site and customer service call center? Does the proposed
solution provide necessary maintenance support for the operation of
the equipment and infrastructure and performance measures that
allow tracking of operational and business outcomes? Does the
proposed solution comply with all Canadian banking laws, rules, and
regulations, including INTERAC? Does the proposed solution leverage
COTS equipment and services? Does the proposed solution enable TTC
to accept media complying with the EMV standard? Does the proposed
solution address all TTC accessibility requirements, including AODA
and appropriate legal requirements? Is the proposed solution for
the OSFS modular, allowing components and sub-systems to be easily
replaced, or operated by TTC or a third party? Is an implementation
and deployment plan consistent with Section 6 of the Scope of Work
provided? Does the proposed solution enable the distribution, sale,
and processing of all TTC fare products, including all concession
and non-concession fares? Does the proposed solution allow TTC to
control, modify, and create their fares and fare policies
independently of the Private Partner? Does the proposed solution
provide for fare enforcement by Special Constables?
Technical & Operating Qualifications Assessment
Page 2 of 4
Appendix C - Detailed Technical Submittal Information
Pre-Qualification Statement Reference No. R39PN10871INSTRUCTIONS:
Provide specific references to the section(s) and page(s) where
each of the evaluation criteria are addressed and documentation of
compliance is provided. Reference to Specific Section of
Respondent's Response where Compliance with Criteria is Addressed
and Documentation is Provided Section of Response (pg. Section
Addresses # or Sect.) Specifically (Y/N)Does the proposed solution
account for all financial certifications and auditing requirements
for an open standards payments system? Does the proposed solution
allow TTC to audit fully all payment and usage transactions? Does
the proposed solution demonstrate compliance with the performance
metrics described in Section 12 of the Scope of Work? Does the
proposed solution allow TTC to monitor and report on performance
metrics? Does the proposed solution provide a test and quality
assurance plan (including support for test facilities) for
validating the operational, business, and technical outcomes
required by TTC? Does the proposed solution include a Data Mart
that can be independently operated by the TTC and accommodate TTC's
business requirements? Does the potential Private Partner possess
relevant technical and operational experience to meet the
requirements expressed in the RFPQ Scope of Work (e.g. has operated
a Level 1 volume payment card processing operation, has installed
point of sale equipment in a Level 1 merchant environment, has
operated and maintained a point of sale network (in compliance with
financial and payment industry rules and regulations) in a Level 1
merchant environment)?
Technical & Operating Qualifications Assessment
Category B CriteriaIf the proposed solution includes a pre-paid,
contactless card program, does program include a retail sales and
reload network equal to/or greater than the current number of TTC
ticket agent locations? Is the proposed solution accompanied by a
detailed project plan and project management team structure that
supports TTC's desired implementation timeline and system program
management requirements? Does the proposed solution permit a fare
payment solution for cross-boundary travel? Does the proposed
solution account for a PRESTO system in the Greater Toronto Area?
Does the proposed solution accommodate the single fare cash user on
all surface and subway vehicles?
Page 3 of 4
Appendix C - Detailed Technical Submittal Information
Pre-Qualification Statement Reference No. R39PN10871INSTRUCTIONS:
Provide specific references to the section(s) and page(s) where
each of the evaluation criteria are addressed and documentation of
compliance is provided. Reference to Specific Section of
Respondent's Response where Compliance with Criteria is Addressed
and Documentation is Provided Section of Response (pg. Section
Addresses # or Sect.) Specifically (Y/N) Category C - Financial
Qualifications AssessmentDid the proposer provide a capital plan
that clearly delineates all sources and amounts of capital required
to finance: a) the acquisition of all equipment, software, and
accompanying infrastructure to implement an open standards-based
payment system at the TTC, and; b) operate, maintain, and - if
necessary - refresh all equipment and infrastructure that comprises
the open standards-based payment system? Does the proposal
demonstrate a commitment to underwrite the required capital costs?
Does the proposer clearly describe its organizational and operating
structure (e.g. is the proposer structured as a legal partnership,
or as a prime contractor assembling appropriate organizations as
sub-contractors)? Depending on the proposer's organizational and
operating structure, does the proposer provide a financial
guarantee (e.g. performance bond or parent organization
guarantee)?
Technical & Operating Qualifications Assessment
Page 4 of 4
APPENDIX D DECLARATION STATEMENTPRE-QUALIFICATION STATEMENT
Reference NO. R39PN10871
The following Declaration is to be checked off and signed by an
officer(s) of the Respondent. I/ We hereby declare that the
information provided herein is true and correct to the best of
my/our knowledge. I/ We further acknowledge that false statements
on the application will result in rejection of this application and
restriction from participating on any subsequent Request for
Proposals, for the Open Standards-Based Fare Payment System. Name
Signature _________________________________
_________________________________ Title Date
_______________________________ _______________________________
Name Signature
_________________________________
_________________________________
Title Date
_______________________________
_______________________________
Name Signature
_________________________________
_________________________________
Title Date
_______________________________
_______________________________
TORONTO TRANSIT COMMISSION
Open Standards-Based Fare Payment SystemDRAFT SCOPE OF WORK
AUGUST 9, 2010
Table of Contents1 Open Standards Fare
System............................................................................................................
9 1.1 1.1.1 1.1.2 1.2 1.2.1 1.2.2 1.3 1.3.1 1.4 1.4.1 1.4.2 2
Introduction
.............................................................................................................................
9 Market Opportunity and
Background................................................................................
9 Technical and Operating
Overview.................................................................................
10 Objectives for the
OSFS.........................................................................................................
11 Transaction Structure and Business Requirements
.......................................................... 11
Customer Experience Requirements
...............................................................................
14 Current Operating
Scenarios...................................................................................................
15 Additional Considerations
..............................................................................................
17 Abbreviations and Definitions
................................................................................................
18 Abbreviations
.................................................................................................................
18 Definitions
.....................................................................................................................
20
OSFS Technical Requirements
......................................................................................................
29 2.1 2.2 2.3 2.3.1 2.3.2 Overview
...............................................................................................................................
29 Description of Key System
Components.................................................................................
30 Compliance with Standards, Codes, Laws, and Applicable
Certifications ............................... 31 Standards for
Payment Processing
..................................................................................
32 Standards for Manufacture of Equipment to be Installed on TTC
Property ...................... 33
2.3.3 Standards for Design and Implementation of Software for
Implementation on TTC Property
.......................................................................................................................................
33 2.4 2.4.1 2.4.2 2.4.3 2.4.4 2.5 2.5.1 2.6 2.7 2.8 General Design
Requirements
................................................................................................
34 Compliance with Laws Offering Protections for Disabled Persons
.................................. 34 Operating
Design............................................................................................................
34 Environmental Guidelines for Installations
.....................................................................
35 Electrical
Requirements..................................................................................................
37 General Structural and Material
Requirements........................................................................
39 Hardening against Vandalism and
Fraud.........................................................................
39 Software
................................................................................................................................
39 Operating Standards
Compliance............................................................................................
41 Revenue Security and Servicing
.............................................................................................
41
Page 2
2.8.1 2.8.2 2.8.3 2.9 2.9.1 2.9.2 2.9.3 2.9.4 2.10
Revenue
Accountability..................................................................................................
41 Revenue
Servicing..........................................................................................................
42 Bill /Coin Acceptance Configuration
..............................................................................
42 Equipment / System Reliability Standards
..............................................................................
43 Fare Media Vending Device
...........................................................................................
43 Reader Assembly for Surface Vehicles
...........................................................................
44 Reader Assembly for Installation in Subway
Stations...................................................... 44
Central
Processor............................................................................................................
45 Maintenance Requirements
....................................................................................................
45 Corrective
Maintenance..................................................................................................
46 Preventive
Maintenance..................................................................................................
47
2.10.1 2.10.2 3
Business Processes and Functional Requirements of the
OSFS....................................................... 48 3.1
3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.3 3.3.1
3.3.2 3.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 Revenue Assurance
................................................................................................................
48 Fare Acceptance
.............................................................................................................
48 Fare Calculation
.............................................................................................................
49 Transaction Processing for Single Trips (PAYG)
............................................................ 56
Pre-Funded Transactions
................................................................................................
59 Customer Support for Fare Payment
...............................................................................
59 Processes Specific to Transit Merchants
.................................................................................
64 Automatic Reload of Transit Accounts
...........................................................................
64 Customer Claims (Non-Chargeback) Intake and
Processing............................................ 64 Risk
Mitigation...............................................................................................................
66 Business Processes in Support of Revenue
Assurance..................................................... 69
Business Intelligence Reporting and Processing
.....................................................................
73 Transactional Integrity Processing
..................................................................................
73 Operations Performance
.................................................................................................
74 Customer Satisfaction
............................................................................................................
78 Central Processor
...................................................................................................................
78
Overview........................................................................................................................
78 General Requirements
....................................................................................................
79 Fare Rules Engine
..........................................................................................................
81 Automated Reload of Transit
Accounts...........................................................................
82
Page 3
3.5.5 4
Data Mart
.......................................................................................................................
82
Marketing and Customer Communications for New
OSFS.............................................................
90 4.1 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.3 4.3.1 4.3.2 4.3.3 4.3.4
Overview
...............................................................................................................................
90 Requirements
.........................................................................................................................
91 TTCs Customer Base
....................................................................................................
91 Issuer Support Requirements
..........................................................................................
92 Merchant Support
Requirements.....................................................................................
92 Private Partner Affiliates
................................................................................................
93 Scope of Campaign
................................................................................................................
93 TTC
In-Home.................................................................................................................
93 TTC Guidelines for Advertising and Promotions
............................................................ 95
Graphics Inventory
.........................................................................................................
95 Duration of Campaign
....................................................................................................
95
5
Operating Procedures for New
OSFS.............................................................................................
95 5.1 5.1.1 5.1.2 5.2 5.2.1 5.3 Maintenance Support
.............................................................................................................
95 Maintenance Management
System..................................................................................
95 Field
Support..................................................................................................................
96 Customer Support
..................................................................................................................
98 Applicable TTC Customer Service Policies
....................................................................
99 Training for TTC
Employees................................................................................................
101
6
Implementation Plan for OSFS
....................................................................................................
101 6.1 6.2 6.2.1 6.2.2 6.3 Overview
.............................................................................................................................
101 Summary Deployment
Plan..................................................................................................
102 Phase I Deliverables
.....................................................................................................
103 Phase II Deliverables
....................................................................................................
104 OSFS
Launch.......................................................................................................................
109
7
Subway
Environment...................................................................................................................
109 7.1 7.1.1 7.1.2 7.1.3 7.1.4 General
................................................................................................................................
109 Functionality of Fare Gates in New
OSFS.....................................................................
109 Overview of Current TTC Fare Gates
...........................................................................
110 Release of Fare Gate for
Entry......................................................................................
110 Fare Gate Messaging and Displays to Customers
.......................................................... 113
Page 4
7.1.5 7.1.6 7.1.7 7.1.8 7.1.9 7.2 7.2.1 8
Message
Sets................................................................................................................
113 Permanent
Graphics......................................................................................................
113 Audible Tones
..............................................................................................................
114 Stand Alone or Orphan Mode
Operation....................................................................
114 Passback Control
..........................................................................................................
115 Fare Media Vending Devices or Kiosks for Open Standards
System..................................... 115
Overview......................................................................................................................
115
Surface
Vehicles..........................................................................................................................
132 8.1.1 8.1.2 8.1.3 8.1.4 8.1.5
Overview......................................................................................................................
132 Fare Payment Processing
..............................................................................................
133 Reader Assembly Functional Requirements
..................................................................
134 Transaction Processing
.................................................................................................
135 Hardware Requirements
...............................................................................................
140
9
Other TTC Locations
...................................................................................................................
145 9.1.1 9.1.2 9.1.3 9.1.4 9.1.5 9.2 9.2.1 9.2.2 9.2.3 9.2.4 9.3
9.4 9.4.1 9.4.2 9.4.3 9.4.4
Overview......................................................................................................................
145 Concept of Operations
..................................................................................................
145
Equipment....................................................................................................................
146 Customer Agents
..........................................................................................................
146 Equipment Maintenance
...............................................................................................
148 Non-TTC Retail Sales and Distribution Locations
................................................................
150
Overview......................................................................................................................
150 Concept of Operations
..................................................................................................
150 Business and Functional Requirements
.........................................................................
151 Financial Settlement
.....................................................................................................
155 Test
Lab...............................................................................................................................
155 Installation
Requirements.....................................................................................................
156 General Guidelines for TTC On-Site and for Legacy LRV
Installations ........................ 156 On-Site Installation
Support..........................................................................................
156 Surface Vehicle Equipment
..........................................................................................
157 In-Station
Equipment....................................................................................................
158
10 10.1
Customer Service Call Centre
..................................................................................................
159 Overview of
Operation.........................................................................................................
159
Page 5
10.2 10.3
Concept of
Operations..........................................................................................................
159 Functional Requirements for the IVR System
.......................................................................
160 IVR System Customer Support
.....................................................................................
160 IVR Design Features
....................................................................................................
160 Voice Recognition
Technology.....................................................................................
161 Customer Agents
..........................................................................................................
161 Training
.......................................................................................................................
161 Call
Scripts...................................................................................................................
162
10.3.1 10.3.2 10.3.3 10.3.4 10.3.5 10.3.6 10.4 11 11.1 11.2
11.3
CSCC Performance Standards
..............................................................................................
162 Website for New Open Fare Payment System
..........................................................................
163 Overview
.............................................................................................................................
163 Concept of
Operations..........................................................................................................
163 Functional
Requirements......................................................................................................
164 Key
Functionalities.......................................................................................................
164 Design and Customer Interfaces
...................................................................................
165 Payment Transaction
Processing...................................................................................
166 Multilanguage
..............................................................................................................
166 Configuration of
Website..............................................................................................
166
Database.......................................................................................................................
167 Customer Access to Account Information
.....................................................................
167 Sales and Reload
..........................................................................................................
168
11.3.1 11.3.2 11.3.3 11.3.4 11.3.5 11.3.6 11.3.7 11.3.8
11.3.9 Compliance with Applicable Laws and Regulations
Concerning Sale and Use of GPR Devices
.....................................................................................................................................
169 11.3.10 11.3.11 11.3.12 11.3.13 11.3.14 11.3.15 11.3.16 11.3.17
11.3.18 Accepted Forms of Payment
.....................................................................................
170 Understanding Billing Statements from My Financial
Institution............................... 170 Sales and Reload
Locations
......................................................................................
170 Security, Privacy and
Technology.............................................................................
170 Frequently Asked Questions
.....................................................................................
170 Website
Cookies.......................................................................................................
170 Design Features and Creative
Content.......................................................................
171 Performance Requirements
.......................................................................................
171 Website Availability
.................................................................................................
171
Page 6
11.3.19 11.3.20 11.3.21 11.3.22 11.3.23 11.3.24 11.3.25 12 12.1
12.2 12.3
Website Response Times
..........................................................................................
171 Transaction Volumes
................................................................................................
171 Security
....................................................................................................................
171 Testing
.....................................................................................................................
172 Documentation
.........................................................................................................
172 Use of TTCs Logos and
Trademarks........................................................................
172 Use of Information about TTC Operations
................................................................
172
Performance Standards
............................................................................................................
172 Overview
.............................................................................................................................
172 Sales Availability
.................................................................................................................
174 System Component
Performance..........................................................................................
174 Transaction Processing
.................................................................................................
174 Central
Processor..........................................................................................................
175 Data Mart
.....................................................................................................................
175 Network Communications
............................................................................................
175 Website
........................................................................................................................
176 Customer Call Centre
...................................................................................................
176
Equipment....................................................................................................................
176 Field Maintenance
........................................................................................................
177 Business Operations
.....................................................................................................
177
12.3.1 12.3.2 12.3.3 12.3.4 12.3.5 12.3.6 12.3.7 12.3.8 12.3.9
13 13.1 13.2 13.3
System Program
Management..................................................................................................
179 Overview
.............................................................................................................................
179 PMO Team
..........................................................................................................................
179 Project
Plan..........................................................................................................................
180 Program Launch
...........................................................................................................
182 Weekly Progress Meetings
...........................................................................................
182
13.3.1 13.3.2 13.4 13.5
Project Plan Reporting and Documentation
..........................................................................
182 Quality Assurance Plan
........................................................................................................
183 Plan
Requirements........................................................................................................
183 Quality Assurance
Supervisor.......................................................................................
185
13.5.1 13.5.2 13.6
Design Review Process
........................................................................................................
185 Conceptual Design Review (CDR)
Process...................................................................
186
13.6.1
Page 7
13.6.2 13.6.3 13.6.4 14 14.1 14.2
Preliminary Design Review
..........................................................................................
186 Final Design Review
....................................................................................................
187 Project Closeout/OSFS Operational Phase
....................................................................
187
Testing Methodology/Master Test Plan
....................................................................................
187 Overview
.............................................................................................................................
187 Test
Plan..............................................................................................................................
188 Test Plan Scope
............................................................................................................
189 PCI Compliance Certification
.......................................................................................
191 Scope of Friendly User
Test..........................................................................................
191
14.2.1 14.2.2 14.2.3 14.3 14.4
Performance Measures
.........................................................................................................
193 Evaluation of Test
Results....................................................................................................
193 Chargeable
Failures......................................................................................................
194 Non-Chargeable Failures
..............................................................................................
194
14.4.1 14.4.2
Appendix A: Overview of TTCs Current Fare Collection System
....................................................... 195
Appendix B: Wheel-Trans Services
.....................................................................................................
202 Appendix C: Proof of Payment Concept of Operations - Current
Light Rail Vehicle Operations.......... 203 Appendix D: TTC
Turnstile
Information.............................................................................................
207 Appendix E: Transit
City.....................................................................................................................
211
Page 8
1 Open Standards Fare System1.1 Introduction The Toronto Transit
Commission (TTC) seeks a public-private partnership (the
Transaction) with one or more private sector partners (the Private
Partner) relating to the funding, acquisition, installation,
operation, repair, and maintenance of a new, open standardsbased
fare system (the OSFS). TTC requires that the OSFS rely on
generally-accepted business processes and the technical standards
of the financial payments industry. It is expected that the OSFS
will coexist with TTCs existing fare collection system (the Current
System) for an initial transition period and, with the exception of
acceptance of cash at fare-boxes, subsequently replace use of the
Current System. This document will discuss the TTCs value
proposition to potential Private Partners, as well detail the
technical and operating requirements and functionality of the OSFS.
Market Opportunity and Background The TTC is the third largest
public transit system in North America (behind the New York City
Transit and the Mexico City Metro systems) providing approximately
1.5 million paid rides, on average, per day, or roughly 475 million
annually. While the individual values related to these transactions
may be small an attribute the TTC shares with other retail
environments across the Greater Toronto Area (the GTA) collectively
these smaller transactions represent a significant market
opportunity. Generally known as micro- or low-value payments,
consumer transactions valued at less than $5 accounted for
approximately $6 trillion in consumer spending in 2007. The
potential revenue opportunity from using technology to efficiently
process micro-payments, coupled with businesses and consumers
desire to improve transaction speeds and convenience, are driving
the replacement of cash transactions in many venues with electronic
payments, particularly using contactless payment options. Due to a
captive clientele, public transit providers like the TTC are well
positioned to drive the rapid and widespread adoption of innovative
contactless payment usage. Contactless fare collection systems are
being implemented across the world in order to achieve more
efficient public transit operations. The TTCs vast physical
infrastructure and extensive transit routes are surrounded by
thousands of retail and other service outlets that thrive on
micro-payment transactions. Accordingly, if the TTC were to
transition to an innovative contactless fare collection system, the
resulting change in its more than 700 thousand customers payment
behaviour and preferences may profoundly influence more general
consumer payment use for everyday retail purchases across the GTA.
Public transit offers private sector businesses (Prospective
Partners) a highly favourable opportunity for converting
micro-payments from cash to electronic payment methods. Currently,
the TTC conducts an average of 1.5 million micro-payment
transactions per day, or nearly 475
1.1.1
Page 9
million on an annual basis. At the same time, budget constraints
and competition from other modes of transportation are prompting
public transit systems like the TTC to find innovative ways to
reduce expenses, fund needed capital investments and increase
revenues by improving customer travel experiences. Contactless
payment technologies offer a way to achieve these goals and create
a win-win-win proposition for the TTC, its customers, and the
financial services industry. Cost, however, is still a major
consideration in the decision to utilize this new payment
technology. The challenge for the TTC is determining how to best
balance the long-term benefits against the near-term capital
investment required to introduce innovative fare payment options.
With this in mind, the TTC has engaged The KMA Group, LLC (KMA) as
lead advisor to assist the TTC in connection with the solicitation
and evaluation of proposals from Prospective Partners for the OSFS.
The TTCs business, technical, and functional requirements for the
OSFS are discussed in detail in subsequent sections of this
document, but it considers an open system as any automated fare
payment system that accommodates several types of contactless
media; some of which may also be used to purchase consumer goods
from retail vendors other than the TTC. These include bank issued
contactless credit and debit cards, open-loop general purpose
reloadable contactless cards (GPR), and other contactless payment
devices, such as Near Field Communications (NFC)-enabled mobile
phones. It also includes business solutions that offer alternative
means for initiating person-to-person, or person-to-business
payment transactions, but that ultimately rely on open standards
systems and networks to complete an electronic exchange of funds.
Subject to Commission approval, the TTC is committed to adoption of
open standards technology and systems that relieve TTC of the
operational and business requirements associated with the issuance
and support of its own, unique proprietary fare media and payment
system. As such, the TTC seeks a partnership with a Private Partner
that has broad experience and expertise in contactless micro- or
low-value payment systems. The goal of this procurement process
will be to identify optimal technologies and associated business
terms for the OSFS system through an interactive and collaborative
procurement process with Prospective Partners. 1.1.2 Technical and
Operating Overview The TTC is issuing this Request for
Pre-Qualifications (the RFPQ) for the purpose of procuring the OSFS
and requisite business and operations support services. This new
system will be designed and implemented to use and conform with
established financial and payments industry open standards for an
account-based payment system. It will permit customers to use
contactless, open standard cards and other devices issued by
financial institutions, and other certified issuers of contactless
general purpose payment cards, to pay fares directly at fare gates
and other points of controlled entry to TTC transportation
services. Payment will be made with direct use of these contactless
cards and devices, without the specific need for customers to
purchase TTC-issued, closed-loop fare media.
Page 10
By using this approach, TTC will enable all of its customers to
pay fares in ways already available to consumers when paying for
goods and services at any retail store, via the internet, or
through interaction with customer sales and service centres. All
media used for fare payment by all customers will be contactless
smart-cards that conform to open standards from a technical
standpoint. Accordingly, in responding to this RFPQ, the Private
Partner will structure its business, operating, and customer
service solution to support acceptance of payments in a manner that
is typical of a retail merchant. TTC, in turn, will assume a
merchant approach as its management and business model to support
ongoing OSFS operations. The information provided below describes
the Business and Functional Requirements for the OSFS. Responses to
this RFPQ must, at a minimum, adhere to all requirements described
below in delivering a state-of-the-art, electronic fare payment,
media sales and distribution, operations support, and processing
business and technical solution. Chief among the RFPQ requirements
is that the OSFS operates independently of TTCs Current System. By
layering-on the OSFS solution, the Private Partner will preserve
the OSFSs integrity as a financial payment system that is
operationally distinct from other TTC systems. TTC anticipates that
the successful respondent will design, build, implement, and
support a fully tested and functional OSFS, including all field and
back-office software, hardware, and firmware necessary to support
an open-standard, account-based system. In developing the Business
and Functional Requirements set out below, however, TTC has also
introduced the opportunity for the respondents to offer innovative
options, provided that all proposed options and enhancements are,
at a minimum, entirely based on open standards business and
technical requirements. In so doing, TTC intends to assure that the
final OSFS solution can capture relevant, beneficial business and
technical innovations emanating from the payments industry that may
occur and prove applicable as project implementation moves toward
completion. TTC wishes to assure that neither TTC nor its customers
encounter business or technical barriers to using the same range of
payment options available to customers as they pay for goods and
services in a general retail environment. 1.2 1.2.1 Objectives for
the OSFS Transaction Structure and Business Requirements In
addition to the general opportunities discussed in Section 1.1.1.,
the TTC believes that there are many reasons why the OSFS,
specifically, represents a tremendous business opportunity for
prospective Private Partners, including the following: Exceptional
Ability for Attracting New Customers. The successful Proposed
Partner will have access to all new customers using debit or credit
card based media. It is anticipated that the new media and provider
will be the default replacement for the TTC Metro Pass media,
providing access to the TTCs ever-increasing number of patrons who
use this fare media. Currently, approximately 50% of TTC rides are
taken by customers
Page 11
using pass products. When considered with those customers who
purchase bulk trips, over 90% of TTCs total sales volume is derived
from Pre-Funded fare options (e.g. passes and bulk trip purchases).
Bulk trip purchases conducted at retail locations require a minimum
5-trip purchase. Exclusivity Potential. The TTC is prepared,
dependent on contractual terms, to review opportunities for a scope
of exclusive use of a predetermined period for the successful
Private Partner. Commuter Parking Lot Operation Potential. The TTC
currently operates 29 commuter parking lots. The successful Private
Partner may have the opportunity to administer parking charges for
each of these lots. Dominant Retail Activity. The Greater Toronto
Area that is served by the TTC has the most robust economy in
Canada. This area had combined retail sales of over $60 billion in
2009, providing tremendous sales potential for prospective Private
Partners. TTC Riders Increasingly Using Cashless Methods of
Payments. Approximately 50% of the TTC rides are made using transit
passes and forego paying per trip with cash, tokens, or tickets.
Continued System Expansion and Modernization. The TTC is a
well-known and wellestablished public entity to partner with. The
TTC has consistently evolved to fit the changing demographics of
Toronto.
In order to access this lucrative Toronto market entrance and
customer acquisition opportunity, the Private Partner chosen by the
TTC to provide and operate the OSFS will be charged with: 1)
Underwriting the Capital Investment Related to the OSFS. The
Private Partner will design and install all equipment and
infrastructure necessary to transition the TTC to an OSFS at the
Private Partners expense. 2) Operating, Maintaining, and Refreshing
the OSFS for an Annual Fee. The Private Partner will operate,
maintain, and refresh (as required) the OSFS throughout the TTCs
entire transportation system for a specified term. The Private
Partner will receive an annual payment for operating and
maintaining the OSFS, which will be calculated as a fixed
percentage fee of the TTCs annual fare revenues (subject to an
annual minimum and maximum fixed amount). The TTC expects the fixed
fee, and associated minimum and maximum, to be equal to or less
than its current cost of collecting fare revenues.
Page 12
3) Developing and Sharing New Revenues with the TTC. The Private
Partner will share the revenues generated from credit, debit, and
pre-paid payment usage outside of the TTCs transit system with the
TTC (Non-Fare-box Revenues) (subject to a minimum annual guarantee
and annual maximum to the TTC) for a specified term. The term of
the operating and maintenance agreement, as well as the annual fee
for operating the OSFS, will be competitively bid by prospective
Private Partners. In addition, the nature and structure of
Non-Fare-box Revenues, as well as the proposed terms for sharing
Non-Fare-box Revenues, will be proposed by prospective Private
Partners. In addition to these specific requirements, the TTCs
general goals for a successful partnership to provide the OSFS
include: Enhancing the customer experience by making it more
convenient to pay for fares by utilizing various forms of
contactless payment devices. Funding, acquiring, certifying (system
level), installing, operating, repairing, replacing, upgrading (as
required by new standards), and maintaining a new OSFS system to
provide for modern fare collection technology, including forward
compatible contactless readers, vending machines or multi-purpose
kiosks dispensing contactless GPR cards, and appropriate
back-office systems necessary to accommodate a more cost-effective,
account-based fare collection solution. Developing a new and unique
relationship with the private sector to shift implementation
expenditures, servicing functions, and associated costs involved
with fare collection, so as to eliminate the capital investment and
matching or reducing the operating costs directly incurred by the
TTC. Seamless adoption of innovations in fare payment technology
and business processes, including forward compatible contactless
readers, kiosks, and the appropriate back-office systems necessary
to accommodate market-driven, cost effective non-proprietary fare
payment solutions. Achieving significant operating cost savings
through the life of the agreement by assuring that the total cost
of ownership of the OSFS remains competitive with market-driven
solutions for payment processing. Sharing in new, non-fare box
revenues generated by the Private Partner.
To achieve these business goals, the TTC requires that the
Private Partner respond with an optional turnkey solution that
would design, build, install, and maintain a fully operational
OSFS, according to the business and technical criteria described in
this RFPQ. In addition,
Page 13
upon full implementation of the OSFS, the Private Partner will
have full responsibility for its successful operation, including
the provision of all support functions needed to meet the
performance standards set out in this RFPQ. With regard to the
operation of the OSFS, these support functions will include:
Maintenance of all hardware, software, and systems that comprise
the OSFS for a specified period of time to be determined during the
procurement process; Processing of all payments, electronic and
cash, due to TTC from the OSFS system; Collection of revenues from
Fare Media Vending Devices (FMVDs) or other automated means of
dispensing fare media, such as multi-purpose kiosks, deployed on
TTC property and elsewhere according to the requirements of this
RFPQ; Operation of the Web Site and OSFS Customer Service Call
Centre; Day-to-day management of the OSFS, both as specifically
required by TTC and in order to assure achievement of business
goals and performance standards set out in this RFPQ; Operation of
the Non-TTC retail sales network.
The TTC requires the OSFS to be fully operational according to
the timeline described in this RFPQ. Prior to implementation of the
OSFS, and for a period during which both the OSFS and the TTCs
Current System coexist, the TTC will continue to be responsible for
operations in support of the Current System. At no time during the
period of operation of the Current System will the Private Partner
have responsibility for operation or maintenance of the Current
System. With the exception of physical attachment of certain OSFS
components to Current System hardware, as well as reliance on power
infrastructure as described in this RFPQ, the OSFS will function
completely independently of the TTC Current System. 1.2.2 Customer
Experience Requirements The TTCs customer service goals and
requirements for the OSFS include, but are not limited to:
Enhancing customers fare payment experience through simplification
of steps in a manner that, from the customers perspective, yields
tangible improvements. Simplification entails permitting customers
to use contactless media and devices already in their possession,
having been issued by financial institutions and other certified
issuers of contactless electronic payment media; paying directly at
the fare gate or fare box, without the intervening step of
acquiring a specific TTC issued transit ticket; adopting familiar,
proven customer service principles and procedures used in making
retail purchases; and providing flexibility in purchase and reload
locations, as well as options for using alternative forms of
contactless payment media.
Page 14
Reducing challenges facing customers in interpreting fare
policies, products, and payment methods by leveraging customers
experience with credit and debit payments and accompanying customer
support models for such retail payments. Assuring access to, and
use of, contactless media by all TTC customers, especially the
under-banked and those who choose not to use credit and debit
payment instruments already in their possession for fare payment.
Assuring access to, and use of, a wide range of contactless devices
and alternative payment options that more closely match their
retail payment needs and general purchasing behaviour. Meeting, and
when possible, exceeding customer service levels available at
best-inclass service providers through business, technical, and
operational improvements in customer service interactions with TTC
customers. Enhancing flexibility and speed with which TTC reacts to
business, technical, and customer service innovations when
accepting and processing fare payments, as well as when accessing
and exchanging information concerning customers fare payment
interactions with the TTC. Maintaining, if not enhancing the
overall customer experience both in terms of ease of fare media
use, accuracy and reliability of acceptance of fare payment, and
time required for payment and boarding TTC transportation
services.
1.3
Current Operating Scenarios The Toronto Transit Commission (TTC)
provides public transit in the City of Toronto, and into
neighbouring York and Peel Regions. Toronto is 622 square
kilometres in size and has a population of 2.7 million people, with
another 2.9 million people in the surrounding Greater Toronto Area.
The TTC serves the City with a grid network of three subway lines,
one intermediate capacity transit line, 11 light rail (or
streetcar) lines and more than 160 bus routes. The TTC is a 24-hour
operation that carries close to 1.5 million passengers on a typical
weekday, or roughly 475 million annually, using a fleet of 700
subway cars, close to 250 streetcars and more than 1,700
conventional and paratransit buses. TTC carries almost 80% of all
the transit trips taken in the GTA. The TTC uses a simple fare
system with a flat-fare structure, allowing customer to travel an
unlimited distance-per-trip for one fare. The TTC is a
pay-as-you-enter, pay-as-you-board transit system, with seamless
integration between subway, bus and streetcar services. Entry is by
cash, ticket, token, valid pass or valid transfer. A more detailed
description of the TTCs current fare collection system in provided
in the Appendices.
Page 15
The TTC serves the City of Toronto with a grid network of subway
and rapid transit lines, light rail (or streetcar) lines and more
than 160 bus routes. All but two surface routes make over 240
connections to the subway system during the morning and afternoon
rush hours. The TTC operates 14 bus routes into neighbouring
municipalities, and the neighbouring transit agencies run more than
30 bus routes into Toronto that connect directly with the TTC
subway system or other surface routes. The TTC operates contracted
transit services into these adjacent municipalities. The OSFS will
need to accommodate, and track, non-TTC fare payments for
subsequent revenue settlement. The development of operating
scenarios will be part of Design Review. During Design Review, the
needs of cross-boundary customers will need to be addressed. Almost
all TTC bus and streetcar routes operate all day, every day. The
surface network provides service to within a five-to-seven minute
walk of most areas within the city. More than 95 percent of Toronto
residents live within 400 metres of some TTC service. One of the
TTCs most important features is efficient, convenient and free
transfers between all services and modes. At many stations,
customers can quickly transfer between buses, streetcars and
subways without passing through turnstiles or paying an additional
fare. This is critical for a grid-based system that feeds riders
from surface vehicles to subways for high-speed trips into the
downtown core, and throughout the network. The majority of TTC
services operate at peak intervals of five to 10 minutes, with some
service as frequent as every two minutes, and off-peak service
every two to 30 minutes. TTC subway trains operate about every
two-and-a-half minutes during peak periods. At other times, they
run every six minutes or better. More than 85 percent of daytime
routes operate until approximately 1 a.m., every day. The TTC has
made huge strides over the past decade to make public transit more
accessible for everyone. The TTCs accessible bus fleet has grown to
more than 1,600 vehicles, and over 90 percent of the TTCs bus
routes are wheelchair and scooter friendly. The bus fleet will be
fully accessible by 2011. The TTCs next generation of subway trains
the Toronto Rocket is a six-car-fixed configuration train with open
gangways, enabling riders to move freely from one end of the train
to the other. The 30 fully accessible train sets will replace the
subway fleets oldest cars. Torontos next generation of streetcars
will also be accessible. The TTC is poised to bring the very best
light rail vehicles (LRVs) to the existing network of streetcar
routes. The LRV proofof-payment fare collection concept of
operations is provided in the Appendices. Wheel-Trans is the TTCs
paratransit service. It is responsible for door-to-door accessible
transit service for people with physical disabilities who have the
most difficulty using conventional
Page 16
transit services. Service is provided beyond City limits to the
airport, and to established boundary transfer points in order to
co-ordinate trips with other accessible paratransit services within
the Greater Toronto Area. Wheel-Trans carries more than two million
riders annually, or close to 7,000 trips on typical weekday. This
service is operated using vehicles owned by the TTC, as well as
accessible taxis with which TTC contracts. Wheel-Trans also
provides a service called Community Bus. It is an accessible,
fixed-route service primarily focused on individuals who have some
difficulty accessing the conventional transit system. The following
table provides a summary of the TTC Operating Inventory, which will
be updated accordingly during detailed design.
Summary of TTC Operating InventoryDescriptionSubway and Rapid
Transit Stations Staffed Subway Entrances Unattended Subway
Entrances Subway Entrance Turnstiles Subway/Surface Within-Station
Transfer Locations Subway Sation Commuter Parking Lots Buses
Streetcars New LRVs with POP Operation Transit City LRVs
Wheel-Trans TTC-owned Vehicles Wheel-Trans Contracted Taxis/Sedans
TTC Third-Party Ticket Agents Other Third-Party Distributors
Total Current70 80 40 500 45 29 1,600 250 N/A N/A 200 700 1,200
600
Total With Planned Expansion80 90 50 650 60 31 1,800 N/A 200 200
350 700 1,200 600
Table 1 Summary of TTC Operating Inventory
1.3.1 Additional Considerations The Reader Assembly should
accept open- and closed-loop ISO 14443 Type A/B contactless media
(e.g. financial payment instruments, employee IDs, student IDs,
etc.). The Reader Assembly should accommodate additional secure
applications that may be based on nonfinancial payment
transactions. With the aforementioned in mind, please describe an
OSFS solution specifically for: TTC single fare, cash paying
customers on surface vehicles and subways; LRV POP system; Transit
City; Cross-boundary fare payment situations.Page 17
These specific situations are discussed in more detail within
subsequent sections of this RFPQ. Please discuss operational and
technical challenges, if any, identified with these fare payment
situations as well. 1.4 1.4.1 Abbreviations and Definitions
Abbreviations 3DES Triple Data Encryption Standard AC ACH AES ANSI
AODA API ASTM BI CBA COTS CPU CSA CSR CSCC DDA DIN DUKPT EIA EMI
EMV FMVD FUT GB GHz Alternating Current Automated Clearing House
Advanced Encryption Standard American National Standards Institute
Accessibility for Ontarians with Disabilities Act Application
Programming Interface American Society for Testing and Materials
Business Intelligence Canadian Banking Association Commercial
off-the-shelf Central Processing Unit Canadian Standards
Association Customer Support Representative Customer Service Call
Centre Direct Deposit Account Deutsches Institute fur Normung
(German Institute for Standardization) Derived Unique Key per
Transaction Electrical Industries Alliance Electromagnetic
Interference Europay MasterCard VISA Fare Media Vending Device
Friendly User Test Gigabytes Gigahertz (Frequency of One Billion
Cycles per Second)
Page 18
GPR GPS GUI IEEE
General Purpose Reloadable Global Positioning System Graphical
User Interface Institute of Electrical and Electronic Engineers
ISO,ISO/IEC International Standards Organization IVR KPI LCD LED
LTE MCBF MFIPPA MTBF NEC NEMA NFC NFPA NTP ODBC OEM PAYG PCI DSS
PCI PED PCI PA PIN PIPEDA POE POS QA/QC QOS Interactive Voice
Response Key Performance Indicator Liquid Crystal Display Light
Emitting Diode Long Term Evolution Mean Cycles between Failures
Municipal Freedom of Information and Privacy Protection Act Mean
Time between Failures National Electrical Code National Electrical
Manufacturers Association Near Field Communications National Fire
Protection Agency Notice to Proceed Open Data Base Connectivity
Original Equipment Manufacturer Pay-As-You-Go Payment Card Industry
Data Security Standard Payment Card Industry PIN Encryption Device
Payment Card Industry Payment Application Personal Identification
Number Personal Information Protection Electronics Document Act
Point of Entry Point of Sale Quality Assurance/Quality Control
Quality of ServicePage 19
QSA RDBM RF RFID RoHS SLA SQL SSL TTC TTC CSC UL ULC UPS VAC VDC
WAN 1.4.2
Qualified Security Analyst Relational Database Manager Radio
Frequency Radio Frequency Identification Restrictions of Hazardous
Substances Service Level Agreement Structured Query Language Secure
Sockets Layer Toronto Transit Commission Toronto Transit Commission
Customer Service Centre Underwriters Laboratory Underwriters
Laboratories of Canada Uninterruptible Power Supply Volts
Alternating Current Volts Direct Current Wide Area Network
Definitions AODA Fare Gate. A specially designed control gate
that conforms to requirements of the Accessibility for Ontarians
with Disabilities Act (AODA) in order to allow use by a customer
with disabilities. Address Verification System (AVS). A
functionality used primarily by the financial services to further
supplement verification of the identity of the person presenting a
credit card for payment. The process entails comparing address
details, usually the postal code of the billing address on file
with the card issuer, with information provided by the person
presenting the card at the point of sale. Account Based Fare
Payment. A business and technical approach that 1) uses a unique
number to identify, organize, and otherwise manage all fare payment
activities; 2) processes all activities related to the account
through a central processor; and 3) enables activation of account
activity by presentation of a device containing the account number
and, most often, other pertinent information, to a reader that then
enables communication with the central processor for initiation and
completion of business activities on the account.
Page 20
Advanced Encryption Standard. A symmetric key encryption
standard, adopted and used widely, that uses 128-bit block ciphers
and key sizes of 128, 192, and 256 bits. Authentication. In payment
systems, refers to the verification of the genuineness of the
payment device being presented at a reader in order to complete a
transaction. Payment systems frequently have several means of
establishing the authenticity of the actual card or device covering
a range of procedures and technical enhancements, often accompanied
by physical and electronic means. Authorization. In payment
systems, refers to the process of evaluating the status of an
account and, more specifically, the financial readiness to assure
payment to a merchant for the requested amount of the
authorization. Authorization Response Code. A three-digit number
that is generated as part of the authorization process in payment
card transactions. Codes are a short-hand that enables further
description of the response and the reason for the response (e.g.,
insufficient funds or lost or stolen) from the issuer of the
payment card to the authorization request. Autoload. In transit
fare payment, the capability for automated replenishment of the
account with sufficient funds or with a specific capability, such
as a pass with specific use privileges, so that the account holder
may continue to use the credential associated with the account
without initiating the replenishment steps repetitively. For the
OSFS solution, the Autoload function will be available as an option
to customers who wish to maintain an account balance or renew
purchases of a specific fare product on an ongoing basis. The
procedure will require registration and establishment of a means of
payment acceptable to TTC. Automated Clearing House (ACH). A
batch-oriented electronic funds transfer system governed by the
National Automated Clearing House Association (NACHA) Operating
Rules which provide for the inter-bank clearing of electronic
payments for participating depository financial institutions.
Bank-Issued Credit and Debit Cards. Payment cards issued by
financial institutions certified to issue them under the laws and
regulations of Canada, or other country in which they are issued to
customers who qualify. In their key physical, technical, and
operating characteristics, these cards conform to standards
developed, promulgated, and enforced by the financial services and
payments industries, and their representatives and affiliates Bank
Identification Number (BIN). More commonly, the Issuer
Identification Number, (IIN) a series of digits used according to
ISO/IEC 7812 guidelines used to identify the issuing institution
for credit and debit cards. It consists of a major industry
identifier, a six-digit IIN, and a single digit check sum that uses
the Luhn algorithm as an authenticity check. BASE24. Canadian
version of financial payments messaging protocol.Page 21
Bill Acceptor. A component, usually as part of an automated
vending machine or similar device such as a bank ATM that is
designed to verify the authenticity of currency. Bill Vault. A
secure, uniquely identified container used to hold currency
accepted by a bill system, usually as part of an automated vending
machine or similar device. Business and Functional Requirements. A
set of specific requirements that define what capabilities the Open
Standards Fare System (OSFS) must have in order to support fare
payment operations at TTC. Call Scripts. A structured series of
statements created for use by Call Centre personnel and intended to
assist these personnel in developing and effectively using
responses to customer inquiries that are accurate, consistent, and
comprehensive. Campaign. A term often used in a public transit
context to refer to a concerted effort to accomplish a task across
a broad, comprehensive field of endeavour. Card Validation Codes
(CVC). Also referred to as Card Verification Data or Card
Verification Value, the Card Validation Code is a security feature
used by card associations and the financial services industry to
assist merchants and issuers to authenticate the payment card for
card-notpresent transactions. There are different CVC codes and
processes associated with how they are used in validation of the
presence and authenticity of the card. Central Processor. The
centralized, back-office data and operations system for business
function outsourcing that enables and controls all business
functions in support of processing fare payments for the Open
Standards Fare System (OSFS). Among those functions performed are:
fare payment processing; revenue management and settlement;
business activity, financial, network, and operational monitoring;
data management, broadcasting, and field worker specific messaging;
and customer service call center and web site operation and
support. Clearinghouse. Also often called a merchant acquirer, a
clearinghouse provides processing of financial payments such that
payments between transacting parties are cleared and settled
accurately and timely according to rules of the financial services
and payments industries. Code 39. One possible bar code symbology
used to encode alphanumeric characters in creating an optically
readable or scanable bar code. COTS. Commercial Off-the-Shelf
hardware and software supplied by the Private Partner. Contactless
Media or Devices. As applicable for use in the OSFS, media and
devices that are: ISO/IEC 14443 and 7816 compliant, equipped with a
microprocessor or chip, and are applicable for use as contactless
payment media or devices by complying with, or having been licensed
to use technologies and protocols of the financial services and
payments industries.Page 22
Contactless Readers. Hardware that uses RF induction technology
in order to support proximity reading of contactless smart cards.
ISO 14443/ISO15963 is the international standard for proximity
telecommunications for contactless smart cards and readers. The
contactless smart card reader enables communication between the
contactless smart card and other systems, which itself communicates
with other components in a larger system for processing
information. Corrective Maintenance Plan. The protocols developed
to address unpredictable equipment and system failures and events
that occur during the normal operation of the Open Standards Fare
System. These unscheduled failures and events are the result of a
wide range of causes, not the least of which are actions of
individuals, whether intentional or accidental, that interfere with
the designed functionality and operation of the OSFS. Current
System. Refers to all hardware, software, firmware, systems, and
supporting infrastructure built for and currently supporting the
collection of fares at TTC from customers who wish to ride TTC
transportation services. Customer Service Call Centre. The facility
that is provided by the Private Partner that houses hardware,
software, personnel, and other means in conjunction with the OSFS
required to establish, manage, and maintain customer accounts and
provide customer service as described in this RFPQ. Design Review.
A formal process required by TTC during which Private Partner will
present detailed information and documentation about the technical,
operational, and business solution for the OSFS. A common
organization is a three step process, consisting of a Conceptual
Design Review, a Preliminary Design Review, and a Final Design
Review. Taken in order, each step in the process delves more deeply
into detail and by so doing brings the process of finalization of
TTCs business and functional requirements for the OSFS to the point
that both TTC and the Private Partner have a comprehensive
understanding of the required outcomes. End-to-End Encryption. A
process of securing data from point of contact to the financial
processing site with no decryption in the interim. Europay
MasterCard Visa (EMV) Standard. A standard originally developed
under the auspices of VISA and MasterCard for the purpose of
interoperability between Integrated Circuit cards and Point of Sale
terminals used for their acceptance and for authentication of
credit and debit card transactions. The most common implementations
of the EMV standard are AEIPS (American Express), J smart (JCB),
M-Chip (MasterCard), and VSDC (VISA). The EMV standard is being
adopted globally under mandates from card associations as a means
of increasing security of credit and debit transactions through the
use of cryptographic algorithms. These algorithms permit
authentication of the card to the Point of Sale Terminal and to the
back office processor.
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Faregate. Refers to Current System equipment installed at TTCs
subway stations that acts as a barrier and control mechanism to
un-paid access to TTCs transportation services. TTCs fare gates
that accept payment of fares are of two types: those that use
bi-directional rotating barrier arms and those that consist of a
bi-directional door to allow for AODA and other access. All Current
System Faregates that currently accept payment of fares will be
equipped with Open Standard Fare System (OSFS) Reader Assemblies.
Fare Media Vending Device. An automated, self-service vending
device that will be installed at all TTC subway stations for use by
customers to purchase, reload, and dispense contactless General
Purpose Reloadable (GPR) cards. GPR cards dispensed from Fare Media
Vending Devices (FMVDs) will be open standard cards; once purchased
or reloaded with adequate funds or a fare purchase option, and
dispensed from the FMVD, the GPR will be immediately usable for
payment of TTC fares. Field Maintenance. Refers to maintenance
activities that are specifically expected to occur while equipment
being serviced remains where it has been deployed for normal
business operations. The types of remedial actions expected to be
taken may be lesser in scope, requiring fewer steps and tools in
order to be accomplished. Finger-Tip Maintenance. A maintenance
procedure that can be performed on a piece of equipment that
requires no, or very minimal hand tools or other devices in order
to be completed. General Purpose Reloadable (GPR) Cards. A type of
payment card available to consumers that functions like a debit
card, but is unique in that it is not issued by a financial
institution or other issuer to a particular, identified person.
Instead, it is available in the first instance anonymously,
typically at through a retailer who sells the card to the consumer.
The consumer pays for the card and loads the account with a dollar
value at the time of purchase. Unlike gift cards, which use similar
open standards technology, GPR card are reloadable to a
predetermined limit, at which time the card holder needs to
identify himself to the issuer, or acquire a new card. Hand-Held
Point of Sale Device. For the OSFS solution, a portable device that
can be used for payments, validation of paid fares performed by
Special Constable, and potential sale and reloads of transit
accounts, for accessing information about customers account status,
and for validation or Proof of Payment purposes are defined in this
RFPQ. The Hand-Held Point of Sale Device must comply with open
standards of the financial services and payments industries, must
be capable of extended battery life to enable use throughout a tour
of service, and may have other features, such as NFC capability, as
required by TTC and as developed by the Private Partner in order
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