MBTA revises contract for fare system upgrade

The Massachusetts Bay Transportation Authority (MBTA) Fiscal and Management Control Board yesterday amended its contract with the Cubic | John Laing consortium for a new fare collection system. 

The amended $935.4 million contract — an increase  of $212.1 million in project costs compared to the contract approved in 2018 — includes both the full capital cost of an upgraded fare system and a 10-year stream of operations and maintenance payments.

The contract amendments will result in customer-focused upgrades to the existing and future systems and allot more time for testing, installation and rider migration, MBTA officials said in a press release.

The amendment also includes new provisions that reduce the MBTA’s construction risks and allows the system to account for future changes within the payment industry, they said. 

MBTA is replacing its aging fare collection system as part of a fare transformation initiative that will establish a larger network of fare vending machines and retail sales outlets for purchasing train tickets, and eliminate cash and ticket surcharges.

The new fare collection system is projected to collect over $8 billion in fare revenue during its first 10 years of operation, agency officials said.