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Metropolitan Transit Authority of Harris County, Texas (METRO) recently issued a letter of termination to Cubic Transportation Systems Inc. because the supplier didn’t comply with contract requirements, according to the agency.

In September 2002, METRO contracted Cubic to install a smart-card system by November 2003. Cubic did not deliver the system by that date, but was given a number of extensions before delivering the system in late 2004, according to METRO. During December and January, the agency tested the hardware and software, and found that many system components had either not been delivered or did not meet contract requirements.

On Jan. 18, METRO issued a notice of default to Cubic, identifying 18 problems and providing the supplier 30 days to address them. Cubic has taken some corrective actions, but the system still is flawed, said METRO.