Me',!,oU T,po,'otiO Autho.., Metro One Gateway PlazaLos ...boardarchives.metro.net/BoardBox/Box06/JANUARY 25, 2005a.pdf · Last year, an in-depth financial analysis was completed

Me'",!,oU"" T"",po,'otiO" Autho..,

Metro One Gateway PlazaLos Angeles , CA 90012-2952

213. 922.2000 Telmetro. net

JANUARY 25 , 2005

TO: BOARD OF DIRECTORS

THROUGH: ROGER SNOBLCHIEF EXECU

FROM: JOHN B. CATOEDEPUTY CHIEF

SUBJECT: SCOPE OF WORK FOR SOLICIT TION FOR TRANSIT ACCESSPASS (TAP) SMART CARD REGIONAL CUSTOMER SERVICECENTER AND FINANCIAL CLEARINGHOUSE

ISSUE

Board members have expressed a desire to review the Scope of Work prior to the solicitationof the Request for Proposals (RFP) to engage a third party to operate the TAP RegionalCustomer Service Center and Financial Clearinghouse.

DISCUSSION

As Metro proceeds with installation of UF S bus and rail fare collection equipment to befollowed by Municipal Operators, who also have signed contracts and await their individualinstallations, we must plan for the future operations of this regional program.

Last year, an in-depth financial analysis was completed that reviewed (3) approaches tooperate the TAP system with all regional participating agencies:

1. Operate "in house" using a combination of Metro and Municipal Operatorsresources for smart card issuance; to retrieve and respond to all TAP related callsfrom patrons , participating agencies , and TAP distribution network; to distribute andmanage electronic fare media to retailers , and manage the reconciliation andfInancial settlement of smart card revenue transactions.

2. Operate a combination "in house / out sourced" system , procuring some servicesfrom a third party, and using Metro/Muni resources for the balance.

3. Fully outsource the functions to a third party.

Based on the results of this analysis, staff advised the Board in February 2004 that the 3rdalternative, to outsource all services, would be pursued. Attached for your review is thecompleted Scope of Work that identifies all tasks and responsibilities of the services beingprocured, in addition to the Industry Review comments much of which have been

incorporated into this revised Scope. (This document was also sent for Peer Review, but nocomments were received from other transit agencies.) Please note that this conformedScope of Work represents the efforts of Metro staff, together with the Municipal Operators,led by consultant, Booz Allen Hamilton.

The attached Scope of Work is now also being re-distributed again to the industry and peeragencies for final comments. Staff anticipates releasing the fInal Request for Proposals inMarch, after the completion of this last and final review.

ATTACHMENT

A. Scope of Work

Prepared by: Jane Matsumoto , UFS Project ManagerRichard Hunt, SFV Sector General Manager

ATTACHMENT A

REGIONAL TAP SERVICE CENTERSCOPE OF WORK

DRAFT

LOS ANGELES COUNTYMETROPOLIT AN

TRANSPORTATION AUTHORITY

Los AngelesJanuary 21 , 2005

Version 1.

TABLE OF CONTENTS

1.0 0 VER VIE W ................ ............. ............ ................. ............. .........

.... .......... ...................

- 2. PROGRAM MAN A GE-MENT-AND IMPhEME-N-'F:A'fIO N-;;-.

~. .... ...... ;;; ... ..... ;;-.~

PROGRAM MANAGEMENT..................................................................................................................Contractor s Program Director..............................................

..........................................................

Management Plan......................................................................................

.......................................

Senior Management Progress Reviews.............................................................................

................

1.4 Schedules and Project Control- Critical Path (CPM) Schedule

.....................................................

Monthly Progress Status Report............................................................................. .......................... 9Project Meetings.............................................................................................................................

DESIGN AND CONFIGURATION CONTROL....................................................................................Design Reviews...................................................................................

............................................

TESTING AND ACCEPTANCE............................................................................................................General Testing Requirements...........................................................................

.......................................

Test Stages

................................................................................................................................................

REGIONAL TAP SERVICES .................................................................................. 18NOT USED...................................................................... ........................................................................POLICIES AND PROCEDURES ...........................................................................................................CARD BASE MANAGEMENT .............................................................................................................

Card Ordering...........................................................................

.....................................................

3.2 Card Initialization

..........................................................................................................................

High Speed Smart Card Encoder..................................................................................

..................

Card Personalization.................................................................

.....................................................

Card Testing

...................................................................................................................................

Card Stock/Inventory Management

................................................................................................

Card Stock Security

........................................................................................................................

Card Fees

.......................................................................................................................................

Customer Statements.........................................................................

..............................................

10 Not Used................................................................................

.........................................................

11 Closing Accounts and Accounts in Default.....................................................................................

12 Balance Protection

.........................................................................................................................

13 Institutional Programs....................................................................................

................................

14 MTA Reduced Fare Program...............................................

...........................................................

15 Electronic Security Keys ................................................................................................................. 3816 Hot Card List....................................................................................

..............................................

17 Autoload...................................................

.......................................................................................

3.4 CUSTOMER SERVICE..........................................................................................................................3.4. Customer Materials

........................................................................................................................

4.2 Application Processing.............................................

......................................................................

Mail Processing..............................................................................

................................................

Telephone-Based Service..................................................

..............................................................

Internet-based Service

...................................................................................................................

Customer Inquiries, Complaints and Discrepancies

......................................................................

Walk-in Service (Option) ............................................................................................................... 47DISTRIBUTION MANAGEMENT........................................................................................................

Card Returns, Refunds and Replacements........................................................................ .............. 49Participant Ticket Office and TVM Distribution

............................................................................

Mail Distribution

............................................................................................................................

5.4 Internet Distribution

.......................................................................................................................

Walk-in Centers (Option)...............................................

.......................................................... .......

VENDOR ENROLLMENT AND MANAGEMENT .............................................................................

Third-Party Vendor Recruitment..........................................................................

.........................

Third-Party Vendor Commissions

.................................................................................................

Third-Party Vendor Locations

.......................................................................................................

6.4 Management of Third-Party Vendor Network """"""""""""""""""""""""""""""""""""""'" 53FUTURE TAP CARD APPLICATIONS................................................................................................

3. 7. ,,-ansi~~lated Applic:ations

"-""""" """""""""' '-'-' """""" ..' """".....................................

Non- Transit TAP Card Applications .............................................................................................. 54

4.3

4.4

FIN AN CIAL MANA GEMENT ................................................................................ 55

DISTRIBUTION OF SALES THROUGH THE TAP SERVICE CENTER........................................... 55TAP SERVICE FEE ALLOCATION .....................................................................................................BANK ACCOUNT DEPOSIT PROCEDURES......................................................................................

Bank Account Deposit Procedures

.................................................................................................

REFUND PROCESSING........................................................................................................................Refund Handlingfor Check Customers .......................................................................................... 57Refund Handlingfor Credit Card Customers ................................................................................. 57

FUNDS SECURITY................................................................................................................................RECONCILIATION................................................................................................................................

Credit Card Reconciliation...........................................

..................................................................

Bank Account Reconciliation..........................................

................................................................

Fiscal Year...................................................

...................................................................................

FRAUD LOSSES AND OTHER REVENUE LOSSES.......................................................................... 58

REGIONAL TAP SERVICE CENTER SYSTEMS ............................................... 59CAPACITY OF SYSTEMS ....................................................................................................................

Data Requirements ..........................................................................................""""""""""""""'" 59FEATURES OF SYSTEMS....................................................................................................................HARDWARE AND SOFTWARE ..........................................................................................................

System Software..............................................................................................................................System Hardware.................................................

...................................................... .....................

5.4 OPERATION, MONITORING AND RECOVERY OF SYSTEMS ......................................................INTERFACES TO SYSTEMS................................................................................................................

TAP Service Center Access to the Regional CDCS...................................................................................

5.2 Public Access to the Regional CDCS......................................................................................... ..... 63FILE TRANSMISSIONS ........................................................................................................................SYSTEM CONFIGURATION MANAGEMENT ..................................................................................SYSTEMS ADMINISTRATION............................................................................................................

System and Data Security

...............................................................................................................

System Backup and Archiving..........................................................................

...............................

Controlfor Internal and External System Access

...........................................................................

6.2

7.27.3

7.3.7.3.2

3.2

FACILITY OPERA TI 0 NS ....................................................................................... 67

REGIONAL CDCS HOUSING (OPTION) ............................................................................................ 67PHYSICAL SECURITY .........................................................................................................................STAFFING PLAN...................................................................................................................................

REGIONAL TAP SERVICE CENTER MANAGEMENT ANDAD MINIS TRA TI 0 N

......... ..................................... ...... ...........

..... ............... ..... .... ...... 69

QUALITY ASSURANCE.......................................................................................................................CONTRACT ADMINISTRATION ........................................................................................................REPORTING...........................................................................................................................................

Linked Trip Reports

............................................................................................................ ...........

Card Base Management Reports .................................................................................................... 71Customer Service Reports...............................................

................................................................

Distribution Management Reports.................................................

.................................................

7.3. TAP System Operations Reports...............................................................................

......................

TAP Financial Management Reports...........................................................................

...................

Other Reports................................................

..................................................................................

PERFO RMAN CE M 0 NITO RlN G .......................................................................... 78

g:u AUDITS ...

::::::.. ... ::'- ........ '-'-'-::-.... ........ ..... ...........~..........................................

............ 83

10. CONTINGENCY OPERATION AND DISASTER RECOVERY........................ 84

11.0 TRANSITI ON PLAN AND S U CCESSI 0 N ............................................................. 8511. TRANSITION PLAN ..............................................................................................................................

11. Review of Existing Operations...........................................................................

.............................

11. SUCCESSION PLAN .............................................................................................................................

12. TRAINING COURSES AND MANUALS............................................................... 8812. TRAINING COURSES ...........................................................................................................................

12. Participant Senior Management Training..............................................

........................................

12. Participant TAP Program Management Staff Training..................................................................

12. Other Participant Staff Training.......................................................................... """"""""""""'" 89

12. 1.4 Third-Party Vendor Training................................................................................

..........................

12. Contractor Regional TAP Service Center Staff Training................................................................ 9012. TRAINING MANUALS .........................................................................................................................

13. STATEMENT OF WORK DATA REQUIREMENTS LIST (CDRLS)............... 92

APPEND ICES ................ ... ......................

..... ....... ..................... ..................... ............. ......

.... ....... 94Appendix A Sample Vendor Agreement..............................................................................

...............................

Appendix B Regional CDCS Reports

................................................................................................................ 94Appendix Immediate Needs Transportation Program (INTP)

.......................................................................

Appendix D Regional CDCS API Specification................................................................................................. 94

Appendix E MPOS and CPOS Specifications

................................................................................................... 94

Version 1.1- Draftfor Second Industry Review

Definitions

Term Definition

Autoload A program where the smart card._i!;_reload~_

- - - _

automatically as a patron uses their card. Autoloadsubscribers select the fare type to be automaticallyloaded whenever their e-cash balance becomes lowor a transit pass or stored ride book is due forrenewal. Subscribers preauthorize an electronicfunds transfer from their bank account or credit cardto fund the Autoload

Balance Protection A program whereby a registered card and itsassociated value can be replaced in the event thecard is lost or stolen

Card Initialization Process of taking a generic card and enabling its usein the TAP system

Conformed Specification Specifications for Automatic Fare Collection SystemConformed Specification February, 2002

Contractor The organization who enters into contract with MT Ato deliver services and systems defined herein

Days TAP" days" are defined as calendar daysDistributor Party who sells or otherwise provides cards and

value loading (e.g., Vendor, Transit Agency)E-cash Electronic dollars stored on a smart card used to pay

for transit rides and potentially other servicesHotlist The list of cards that the system is to block from

further use, typically as a result of a registered cardbeing reported lost or stolen

Participant The MT A, Municipal Operators, Metrolink andothers who agree to participate in and use the TAPprogram and product

Personalization Process of putting a picture or other physicalidentifier on the card

Regional CDCS Central computer system which provides MuniHeadquarter" systems and the regional TAP

database and systems

Regional CDCS Supplier Cubic Transportation Systems

Regional TAP Service Center The entity that will operate the Regional CDCS viaProvider the web interface

Version 1.1 - Draft for Second Industry ReviewTerm DefinitionRegistration

Scope of Work

TAP Card

Work

Back-end process of linking a card to card-holders ecific data e. . name, address, hone number'fhis doc:!1ment, the Re ional TAP Se:ryjce c:~nterScope of Work, which defines the minimum servicesand s stems rovided b ContractorA smart card, which is a credit card sized plasticcard that typically has a microprocessor, memory,and an input/ output interface (antenna and/ orcontact lateAll the requirements and related effort stated in thisSco e of Work, ex licit or im lied

Version 1.1- Draft for Second Industry Review

Acronym List

Acronym DefinitionACD Automated Call DirectorACH Automated Clearing HouseAPI Application Programming InterfaceASI Access Services Inc. (a Para-transit service for ADA

passengers)CDCS Central Data Collection SystemCOTS Commercial-Off- The-ShelfCDR Conceptual Design ReviewCDRL Contract Data Requirements ListCMS Metrolink Central Management SystemCPM Critical Path MethodCPOS Compact Point-of-Sale deviceDBE Disadvantaged Business EnterpriseDOT Department of TransportationEFT Electronic Funds TransferFDR Final Design ReviewFTE Full Time EquivalentGUI Graphical User InterfaceHSE High Speed EncoderIVR Interactive Voice ResponseMIS Management Information SystemMTA Los Angeles County Metropolitan Transportation AuthorityMPOS Multi-Function Point-of-SaleNTP Notice to ProceedPDR Preliminary Design ReviewPOS Point-of-SaleSBC Southern Bell CommunicationsSOT Sales Office TerminalSOW Scope of WorkTAP Transit Access Pass - the regional UFS smart card programTVM Ticket Vending MachineUFS Universal Fare SystemVPN Virtual Private Network


OVERVIEW

Los Angeles County Transit Operators are in the process of implementing a state-of-the-art Universal Fare System (UFS) in the greater Los Angeles region to provide riderswith seamless regional transit. To further this goal, the Participants in UFS, also knownas the Transit Access Pass (TAP), are procuring an independent Regional TAP ServiceCenter to support regional expansion and implementation of the TAP smart card. Theoverall status of the UPS will be made available to the Contractor on request.

The primary services required of the Regional TAP Service Center are:

Card Base Management, which includes the issuance and fulfilment of all smartcard requests and management of customer accounts including updates toAutoload preferences and the HotlistCustomer Service, which supports the Participants in the regional system,cardholders that use the regional TAP card and the third-party vendor networkDistribution Management, which includes procurement and inventory of TAPcards and the subsequent distribution of new and replacement TAP cards tocustomers, Participants and third-party vendorsVendor Management, which includes the enrolment and management of existingand new third party vendors in the TAP programFinancial Management, which includes general accounting, financial reportingservices and funds movement processes for the regional TAP program.

The Los Angeles County Metropolitan Transportation Authority (MT A) is thecontracting entity for the Regional TAP Service Center and represents the followingParticipants:

Access Services Inc.Antelope Valley TransitCulver City BusFoothill TransitLA DOTLong Beach TransitMetrolinkMontebello Municipal Bus Lines

Norwalk TransitSanta Clarita TransitTorrance Transit

It is fully expected that additional Participants within Los Angeles County and beyondwill join the program in the future. Contractor shall provide service to customers of all


Participants, existing and new, as they join the program over the term of the Contract.Expected future participants include, but are not limited to:

Santa MonicaGardenaAgencies in adjacent counties such as, Orange and Riverside, among others.

While there are no specific plans, the TAP card has not been designed to restrict its usefor purposes other than transit fare collection.

MTA requires a turnkey Regional TAP Service Center. This shall include design,manufacture, testing, delivery, site preparation, installation, associated hardware andsoftware, communications, all system interfaces, all other system components,operations, maintenance and training. Contractor is responsible for all Work requiredfor the Regional TAP Service Center to be fully operational except where tasks orresponsibilities of MT A, other Contractors operating on behalf of the Participants, orothers are specifically stated in this Scope of Work. Contractor shall provide, asnecessary, additional hardware, software and communications infrastructure to ensurethe Regional TAP Service Center interfaces with the Regional Central Data CollectionSystem (CDCS) as described in Section 5.5 of this Scope of Work. A visualrepresentation of the entire TAP system is provided in Figure 1-

While Contractor shall provide all services described in this Scope of Work, many of theservices shall be supported using systems of the Regional CDCS to be furnished byMT A and located at MT A facilities. Systems not included in the Regional CDCS, suchas those to support customer service (e. , phone support services and web-basedsystems), financial management (e.g., funds movement) or third party software neededfor performance of the services outlined in the Scope of Work, shall be provided byContractor. Furthermore, Contractor shall provide the staff to operate, monitor, andmanage the Regional CDCS.

The Regional CDCS will serve as the central and master database for all TAPtransactions, regardless of which TAP device the transaction was generated from orfrom which issuer a TAP card was provided.

This Scope of Work describes the minimum requirements for the Regional TAP ServiceCenter. Contractor shall be responsible for all acts, system components and Workrequired to provide MT A with a turnkey system that is fully functional in accordancewith this Scope of Work, whether or not such acts, system components or Work arespecifically identified within the Scope of Work. Unless otherwise expressly agreed toin writing, or expressly excluded by the parties, Contractor shall perform all Workunder this Scope of Work.

Version 1.1 - Draft for Second Industry Review

The initial TAP Service Center contract shall be for a minimum period of 5 (five) yearscommencing on the first day of production ready service to the TAP service users.

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PROGRAM MANAGEMENT AND IMPLEMENTATION

PROGRAM MANAGEMENT

1 Contractor s Program Director

Contractor shall appoint a Program Director specifically for the Regional TAP ServiceCenter project. The Regional TAP Service Center Program Director shall be highlycompetent and fully qualified in managing all aspects of the Regional TAP ServiceCenter functions as described in this Scope of Work. Contractor s Program Directorshall reside in the greater Los Angeles area. Contractor s Program Director shall keepMT A fully informed of the status of the project, any problems, or difficulties thatContractor encounters, the schedule (including any revisions).

1.2 Management Plan

Contractor shall submit a "Project Management Plan" (CDRL 1) that incorporates allwork needed for execution of the Regional TAP Service Center. The ProjectManagement Plan shall be submitted no more than 14 days following the Notice toProceed and shall be subject to MT A's review and acceptance. The Project ManagementPlan shall address the following elements, included, but not limited to:

An organization chart identifying managers for all organization departmentsThe methodology to control program scheduleA master program schedule, emphasizing key milestones and events.A milestone that relates to a payment must have complete descriptions ofcontent, deliverable(s), status and accomplishment that are unambiguous andallow for undisputed payment to occurA schedule for the software and systems design activities that require acceptanceA document release management plan for all submittals and subsequentrevisionsA subcontractor management and communications plan outlining Contractormethods and procedures for organizing and communicating withsubcontractors. This shall include an outline of activities to be performed byDBE firms, an identification of the portion of the Contract revenues to beallocated to such firms for these activities, and the means of encouraging,tracking and controlling DBE participation throughout the duration of theContract.Procedures and processes to be followed for the replacement of any DBEsubcontractors throughout the duration of the Contract.

This plan shall be discussed and updated quarterly and as required at the Regional TAPService Center Preliminary and Final Design Reviews, or at the request of MT


Senior Management Progress Reviews

Senior Management progress reviews shall be held on a montWy basis at eitherContractor s or MT A's facilities, as appropriate. Contractor and MT A seniormanagement shall attend these reviews. MT A shall select the location for each meeting.

1.4 Schedules and Project Control- Critical Path (CPM) Schedule

Contractor shall prepare and maintain a detailed "Critical Path Schedule" in MicrosoftProject or another scheduling application subject to the approval of MT A (CDRL 2). TheCPM schedule shall be Contractor s working schedule and shall be used to plan,organize, and execute the Scope of Work, record and report actual performance,progress, and forecast remaining Work. The Regional TAP Service Center CPMschedule shall be submitted within 30 days after Notice to Proceed (NTP) and shall berevised and resubmitted to MT A on a montWy basis thereafter. The CPM scheduleshall include, but not be limited to the design, development, installation and testing ofthe proposed systems, integration with the bank network, integration with the RegionalCDCS and final go-live activities. Contractor must fully comply with the schedulesubmission requirements specified herein to ensure the timely processing of progresspayments. Work shall be scheduled so that any specified intermediate milestone datesand completion dates are met.

Contractor shall also prepare a summary level Management Schedule (CDRL 3) derivedfrom the detail schedule and update and submit it bi-weekly. The Participants reservethe right to require this updated summary schedule as frequently as weekly.

1.5 MontWy Progress Status Report

Contractor shall at end of each month following NTP, submit to MT A six printed andone electronic copies of updated CPM with data as of last day of the monthly reportingperiod (CDRL 4), "Monthly Progress Reports." This report shall provide detaileddiscussion of the status of the Regional TAP Service Center project, and shall comply indetail with the requirements of this Scope of Work, providing information on status ofWork. The Monthly Progress Report shall address, but not limited to:

Actual completion dates for Work items completed during report periodActual start dates for Work items stated during report periodEstimated remaining durations for Work items in progressEstimated start dates for Work items scheduled to start during month followingreport periodChanges in duration of Work itemsWork items not included in CPM submittal.


Project Meetings

In addition to the Senior Management Progress Reviews, Contractor shall participate invarious meetings throughout the performance of this Scope of Work. Meetingsspecifically required for the Regional TAP Service Center project shall include, but arenot limited to:

Project Management MeetingsDesign ReviewsInstallation, Implementation and Go-Live MeetingsIntegration Meetings with the Regional CDCS Supplier.

Contractor shall provide for the continuity of staff participation in each of the differentmeetings.

Project Management Meetings

Participant and Contractor representatives shall attend Project Management Meetingsfor the Regional TAP Service Center that shall be scheduled, as MT A deems necessaryto ascertain that Work is progressing within schedule and in accordance withrequirements of the Scope of Work. It is anticipated that Project Management Meetingswill take place weekly. During any implementation, progress meetings shall be held asoften as daily as determined by MTA.

Design Review Meetings

Contractor shall participate in Design Review meetings as defined in Section 2.2.

Installation, Implementation and Go-Live Meetings

Installation, Implementation, and Go-Live meetings for the Regional TAP ServiceCenter shall be scheduled as determined by MT A.

6.4 Integration Meetings

Contractor shall participate in integration meetings with the Regional CDCS Supplieras required, to assist with the integration of financial management and web-basedservices.


DESIGN AND CONFIGURATION CONTROL

2.2. Design Reviews

Design reviews shall be conducted to evaluate the progress and technical adequacy ofthe design and conformance to the performance requirements of the Scope of Work.Before each review, a design review package shall be submitted that includes the CDRLand other items required for the review. Design review packages shall be submitted atleast 30 days before a design review meeting. Contractor shall conduct a Conceptual,Preliminary, and Final Design Review.

Conceptual Design Review (COR)

The objectives of the CDR shall be to familiarize the Participants with Contractorintended system concept (including use of third party applications) initial design ofinterfaces (e.g. Regional CDCS web interface, bank interface, etc) and provide the basisfor proceeding to Preliminary Design Review (PDR). The CDR shall cover but not belimited to the following:

Confirm Contractor s management team and the scope for each subcontractorConfirm that Contractor is familiar with the intended operations environmentIdentify information needs and decisions required from the ParticipantsProvide description of problem tracking, resolution and reporting processAll CDR items required in Section 13.

Ten electronic copies (Compact Discs) and ten paper copies of the submittals shall beprovided 30 days before the CDR meeting.

Preliminary Design Review (PDR)

The PDR shall review, in detail, the system design and the approach to providing theservices (including preliminary staffing plan) outlined in the Statement of Work. ThePDR should represent approximately 80 percent completion of Contractor s systemdesign effort towards delivery of the services and requirements of this Scope of Work.The PDR shall include, but not be limited to:

Detailed technical descriptions of the Regional TAP Service Center s componentsto allow a thorough understanding of the implementation requirements of theproposed system componentsIdentification of third party application software (and associated license fees)and application developmentDetailed interface descriptions with the Regional CDCS and banking networkData backup and recovery procedures


Software version control system for Contractor provided applications (includingroutine patches and fixes for COTS applications proposed) and for implementingcontrolled releases of the Regional CDCS software provided by MT A or RegionalCDCS supplierBusiness process documentation, including flowcharts, for customer serviceprocesses described in the Scope of WorkIdentify information needs and decisions required from the ParticipantsAll PDR items required in Section 13.

Final Design Review (FOR)

The FDR shall be conducted when detailed designs for software, systems, and businessprocesses are complete. The FDR shall determine whether Contractor s Regional TAPService Center design meets the requirements of the Scope of Work. Data submitted forthe PDR shall be updated to a level of detail consistent with the completed design andsubmitted for the FDR. The FDR shall include, but not be limited to:

Final implementation plan and process flow chartsFinal business process documentationOperational Procedures - Policy and Procedures ManualUser ManualsIdentify information needs and decisions required from the ParticipantsAll FDR items required in Section 13.


TESTING AND ACCEPTANCE

All of the components, systems, and business processes constituting the Regional TAPService Center shall be tested individually and end-to-end to ensure that they meet therequirements of this Scope of Work. The Work under this section shall include all labormaterials, and support services required to completely inspect and test all hardwareand software.

Contractor s testing shall be progressive so that each step is a prerequisite to the next.The Test Stages are illustrated in Figure 2.

Figure 2. 1: Test Stages

ClientCompol1ent Interface

...

Acceptance

...

Stress TestingTesting Testing

...

Testing

Product component Clusters of Large portions of the Entire system testingtesting demonstrates components tested System tested to to determine whenthat the component together to scripts developed by where and how itcan supply the demonstrate that Participants breaksfunctions specified in they work collectively

A transaction driverthe requirements and in conjunctioncan be used in thistesting

Implel'lumtation ImplementatiQn Post Post

...

Implementation

.......

ImplementationTesting Staging

.....

Monitoring Reporting

. Testing of the

components, datasoftware required toimplement thesystem intoproduction mode

. Testing the back-out

procedures if seriousproduction failuresare seen

. Freezing the

implementationcomponents and

placing them in asecure location forproduct installation

Observations andinspections for 35days to verify results

. An event and post

implementationstatus report

1 General Testing Requirements

2.3. Test Planning

Contractor shall submit for MTA' s review and approval, an "Overall Test Plan" (CDRL6) describing the process and the procedures for completing the testing requirements ofthis Scope of Work. The Overall Test Plan shall identify the testing to be performed ateach of the stages, with each of the service providers identified in Figure 2.3-


Information provided for each inspection and test shall include, but is not limited to thefollowing:

Test titleReference to section of Scope of Work that the test is demonstratingTest locationTest objectivesTest pass/ fail criteriaTest schedule providing the following information, but not be limited to:

Test procedure(s)Test start dateTest duration (in number of cycles performed)Test report/ certification

The Test Plan shall cover all Contractor testing activities and identify resources thatContractor needs from the MT A in order to complete the testing. No tests shall beperformed before Contractor has received MTA's approval of the Test Plan. Test resultsshall be submitted to MT A for review and approval within five days after completion ofthe test. Contractor shall introduce a system for recording the severity level of testresults that do not equate to the documented expected results in the Test Plan.Contractor shall use no more than four severity levels of which the most extreme is tostop the test and go no further until the problem is fixed.

1.3 Test Preparation and Submission

Contractor shall provide a full TAP Service Center Test Bed that is not used for anycomponent development or development testing. No version of live production datacan be used for testing.

Contractor shall complete full function tests in their development environment on allcomponents before introducing the component to the TAP Service Center Test Bed.

2.3. 1.4 Test Scheduling and Monitoring

All tests shall be monitored by MT A's Project Manager or designee and documented byContractor. All tests conducted shall require sign-off by MTA' s Project Manager. Allcomponents that do not pass a specific test, or do not meet the approval of MT A'Project Manager shall be replaced, or corrected by Contractor and scheduled for re-testing until all systems and software pass the test and are approved by MT A.

MT A reserves the right, at its discretion, to witness any or all tests, using Participantpersonnel and/ or consultants and agents. Contractor shall inform MT A of the date and


location of a test a minimum of 14 days before conducting the test. The most recentversion of all test procedures, scripts, data, expected results and supporting design andprogram documentation shall be made available by Contractor for use by Participantpersonnel and/ or consultants and agents while witnessing testing. All test results shallbe retained for a period of not less than three (3) years following system acceptance andthe Go-Live date of the Regional TAP Service Center, during which the results shall beavailable for review by the Participants.

Detailed Test Procedures

Contractor shall prepare and submit to MTA

, "

Detailed Test Procedures" (CDRL 7) foreach test to be performed. These Test Procedures shall include, but are not limited to,the following items for each test:

Information provided in the Test PlanTest methodology, including input conditions and data and expected outputconditions and dataTest technology including any data or condition generators or monitorsEquipment and software to be used for recording test activities and resultsDetailed breakdown of all hardware and software components under testStep-by-step test script with test resultsDiagnosticsAny related documentation (drawings, prints, supplier specifications andrecommendations)Forms for recording data, including fields for date, time, location, and name andsignature of persons conducting or witnessing the testAll other information required to monitor and manage the testingName and signature of the person who prepared the test procedure.

Detailed Test Procedures shall be submitted to MT A for review and approval aminimum of 30 days before the test performance. No test shall be conducted untilapproval of the test procedures has been given by MT A. MT A reserves the right todevelop additional test procedures to be performed by Contractor or other designatedorganizations. Detailed Test Procedures may be provided in electronic form usingCOTS test configuration control software as long as the COTS package meets all therequirements noted above and is furnished to MT A with appropriate licenses (up tofive).

Test Result Recording

Contractor shall submit a written report for each test, including copies of all test datafor approval by MT A. All such reports are Statement of Work deliverables, and shall beidentified as part of "Test Reports" (CDRL 8), unless specifically required under another


CDRL. Test reports shall include all historical data, such as test, scripts performedfailures modifications, and results of re-test (if necessary) pertaining to the subsystem orsystem tested. Upon completion of all tests for a particular test phase, Contractor shallissue a separate request for MT A approval of that phase. Contractor shall provide astatement ensuring that the goals of that phase had been met, and listing each of the testscripts executed, test results, the dates of performance and MT A' s approval for eachtest.

2 Test Stages

2.3. Component Testing

Contractor shall complete component testing to establish that the functionality requiredhas been provided as specified. It is during this testing that Contractor will show thatnothing has been omitted and that logic and conditional processing works inconjunction with data receipt and storage. Test condition drivers and data simulatorsrunning outside of the component will be acceptable in this stage of the testing.

2.2 Interface Testing

Contractor shall test component interfaces and data interfaces including the interfaceswith systems and services that Contractor does not provide, in particular, interfaces tothe Regional CDCS and bank systems. Contractor shall coordinate and manage thetesting arrangement with the other parties.

Client Acceptance Testing

Contractor shall provide a test set-up as required by MT A using data and conditionsthat the Participants provide. Contractor shall work at MT A direction to develop thetest scripts. Contractor shall execute the Acceptance Test scripts and record the results.Contractor shall also develop and conduct their own User Acceptance Testing.Participants will have the opportunity to witness this testing.

3.2.4 Stress Testing

Contractor shall identify the known critical aspects of the system that are sensitive totransaction loads and other performance drivers. Using a transaction driver, Contractorshall introduce transactions at volumes that exceed the Participants maximum volumesby 200%. The test should be run with step increments of volume and measures taken ateach step to record the effect of transaction loads, or other drivers, on the known criticalaspects of the system.

2.3. Implementation Testing


Contractor shall test the installation and de-installation process of each majorcomponent such as the IVR or the ACD System. The test shall include the one-timeprocesses used to initialize components or to establish tracking databases. De-installation occurs in two instances. The first is where a recently introduced change to afunction is determined to be unacceptable after it has been moved into productionstatus, the change has to be backed out or de-installed. The second instance is when afunction is removed because it is no longer required. The de-installation process at thattime may involve the de-installation of a physical component (hardware) or the de-installation of a piece of software. Software can be either deleted from a system orplaced in a de-active or null mode. The type of de-installation will be determined byeach incident. The purpose of this requirement is to ensure that functions can be backedout and either closed down or reverted to their prior version.

2.3. Implementation Staging

Following the MT A review and approval of the Client Acceptance, Stress andImplementation testing, Contractor shall move the test-approved version of thecomponents into a secure pre-production store and wait for MT A direction to create theproduction environment for live processing.

3.2. Post Implementation Monitoring and Reporting

Following the live production implementation, Contractor shall monitor the system forperformance to the Scope of Work for 35 consecutive days. A post-Implementationreport recording all the events shall be prepared and submitted to MT A within 60 daysof the production implementation.


REGIONAL TAP SERVICES

Contractor shall provide Regional TAP Service Center staff and services to theParticipants in support of the regional TAP program. The Contractor s staff shall accessTAP program data and systems via a secure Internet based interface to the RegionalCDCS, to perform the services listed in this section of the Scope of Work. Contractorshall provide additional COTS or custom application software (i.e. Call RoutingjIVRCustomer Relationship Management, Document Management, and Reporting) asrequired.

To counter hacker attacks or denial-of-service attacks, Contractor shall proposedsecurity technology that meets the TAP Service Center requirements at levels equal toor comparable with Federal Information Processing Standard (FIPS) 140 - level 3.

Contractor shall provide the following services addressed in this section:

Card Base ManagementCustomer ServiceDistribution ManagementVendor Enrolment and ManagementFinancial Management

Contractor shall provide a complete operational facility that includes the following, butnot be limited to:

Regional TAP Service Center Office SpaceTrained Customer Service StaffOffice equipment and computer equipmentAny materials and supplies necessary to operate such a facilityCommunications infrastructureSecurity arrangements, mail arrangements, shipping accessDeposit drawers and safesKey card access for employee areasSecure storage shelving for unsold and returned TAP cards

Contractor shall ensure that all systems and procedures are in place and fullyoperational in accordance with the Scope of Work.


NOT USED

POLICIES AND PROCEDURES

The Contractor s operations shall be governed by a "Policies and Procedures ManuaV(CDRL 12). The Contractor s manual shall identify the interdependencies with theParticipants and the Regional CDCS Supplier and describe the rules and the processesthat the Contractor requires in order that they may effectively perform all of theirresponsibilities while working within the current MT A and Participants ' policies.

The Policies and Procedures Manual shall include, but not be limited to, the policies andoperational procedures required to perform each activity described by the Scope ofWork for the Regional TAP Service Center. The manual should also include detailedfunctional level flow diagrams to describe all processing of data. The manual shall beprovided in both an on-line and a hard copy (printed and CD) version.

The Contractor shall be provided (on an as needed basis) the TAP Product Policies andProcedure documentation. This will provide the information about the various TAPproducts such as passes, e-purse, Autoload, etc.

The Policies and Procedures Manual, which may comprise many separate sub-manualsto target specific functional areas below, shall include background information onParticipants' operating policies and procedures. The Manual should cover, but not belimited to:

Card Base Management:Card OrderingInitializationTestingStocking! InventoryCard Stock SecurityCustomer FeesCustomer StatementsCustomer Inquiries, Complaints and DiscrepanciesClosing Accounts and Accounts in DefaultBalance Protection

Commercial Accounts and Institutional ProgramsTransit Benefits ProgramHotlistAutoloadPhoto ID Card Management

Customer Service


Customer MaterialsApplication ProcessingMail ProcessingTelephone-based ServiceInternet-based ServiceWalk-in Service (Option)

Distribution ManagementReturns and ReplacementParticipant Ticket Offices

Mail DistributionInternet DistributionWalk-in Centers (Option)

Vendor Enrolment and ManagementVendor LocationsParticipant RecruitmentManagement of Terminal Network

Financial ManagementDistribution of Sales through the Regional TAP Service CenterRegional TAP Service Center Fee AllocationRevenue Handling Requirements

Bank account Deposit ProceduresRefund Handling for Check CustomersRefund Handling for Credit Card and Debit CustomersFunds SecurityService Center ReconciliationCredit Card Charge Back InvestigationBank Account ReconciliationReconciliation of Credit and Debit Transactions to Actual Bank AccountDepositsFraud Losses and Other Revenue Losses

Regional TAP Service Center SystemsConfiguration ManagementFile TransmissionsSystem Administration

System Monitoring and Recovery

System and Data SecuritySecurity Key ManagementSystem Backup and Archiving

Facility OperationsSecurityHours of Operation


Staffing PlanRegional CDCS Hosting (Optional)

Performance Monitoring

AuditsDisaster Recovery

3.3 CARD BASE MANAGEMENT

Contractor shall prepare a "Card Base Management Plan" (CDRL 13) to document howContractor shall meet and implement Card Base Management requirements.Contractor is responsible for providing the staff to perform the Card Base Managementservices as defined in this Scope of Work.

The TAP program will utilize two different smart cards. Both cards will be issued bythe MTA. The proprietary contactless Go-card supplied by Cubic TransportationServices will be used for general public fare sales, while an ISO 14443 Type A Mifarecard integrated with an HID access module will be used as the transit employee card.The HID portion of the card provides access to LACMT A building doors, stairwellsand elevators while the Mifare portion interfaces with fare collection equipment toprovide validation at fareboxes on buses or at validators at rail stations.

Contractor shall use a card inventory management system to maintain sufficientinventory of TAP cards to ensure continuous, uninterrupted availability to meetdemand and shall distribute cards to participating third-party vendor locations,Participant customer service locations, institutional program participants and to thepublic.

TAP cardholders have the option to register their TAP cards. As such, Contractor isresponsible for managing all cardholder information and preferences for thesecardholders.

The Participants maintain ownership of all TAP cards and all versions of customeraccount data. Contractor shall replace lost, stolen, failed, or returned cards and issue anew card and subsequent replacements as well. Contractor shall order TAP cards forthe TAP program and supply them to all TAP card distributors. Contractor shallprovide for secure receipt, secured storage, recorded release and acknowledgeddistribution of all TAP cards.

When the current supply of TAP cards needs to be replenished, Contractor shall findand negotiate with any MT A pre-approved card technology supplier for additionalTAP cards.

Card Ordering


The first 700,000 TAP cards will be purchased and furnished to Contractor by MT A.Contractor, per MT A provided card specification, shall provide additional cards.Contractor shall monitor inventory levels, recognizing that cards may require a longlead-time for delivery. Contractor shall coordinate card graphics requirements with theParticipants.

3.2 Card Initialization

Contractor shall initialize TAP card memory with parameters stored in the RegionalCDCS database using an MT A Multifunction Point-of-Sale device (MPOS). MT A willprovide up to ten MPOS units to Contractor. Card initialization parameters shallinclude, but not be limited to:

Transit ApplicationRider Classification (e.g., Adult, Senior/Disabled, Youth, Juror)Security KeysMachine readable serial number

Contractor shall, but not be limited to:

Initialize TAP cards in response to orders for new or replacement cardsFor registered cards, link the cards with cardholder-specific data at thecardholders requests

Contractor shall bulk initialize cards for distribution to:

Institutional accountsOther issuance locations including the third-party vendor network andParticipant locations.

High Speed Smart Card Encoder

Contractor shall run and operate the High Speed Encoder (HSE) in order to initializepersonalize, activate, and issue the TAP card. The HSE shall encode TAP cards andencode the TAP card chip. MTA will provide the HSE and the necessary software andprocedures required to run the HSE. Contractor shall submit the "HSE Operation andProcess" (CDRL 14) to MTA review and approval

The HSE shall perform the following functions, but not be limited to:

Bulk encode cards in batches greater than 100


Encode a variety of different card types such as limited use, or disposable smartcardsAssign a TAP card serial number and relate it to the manufacturer s unique chipidentification numberMaintain a card level data store and report on encode activity and failuresTransfer the card encode data and activity information electronically to theRegional CDCSReceive TAP customer data files and print text and graphics on one and/ or bothsides of the card.

3.3.4 Card Personalization

Card personalization can be performed at any location within the US; Contractorpremises, TAP Service Center site or sub-contracted out to a third-party. Contractor isallowed to provide one or more solutions in their proposal.

Contractor shall be responsible for personalizing TAP cards by printing cardholderphotos, special graphics, and text on either or both sides of the card, The MT A willsupply the minimum specification (angle, proportions etc) for the photograph that willbe in full color and sized between 1" xl" and 2" X2" . Contractor shall personalize thefollowing TAP card rider categories, but not be limited to:

Senior/DisabledStudentDependentsASICollege/Vocational

3.5 Card Testing

Contractor shall upon initialization of each card verify that the card is functioning. Anycards that fail to work shall be cataloged for return to the manufacturer for replacement.

Card Stock/Inventory Management

Contractor shall provide and maintain an automated inventory system to track recentand historical TAP card inventory levels and usage, provide card quantity requirementforecasts, and control card purchases and distribution, subject to the approval of MT Contractor shall coordinate with MT A to ensure that inventory levels can accommodatefuture demand, The Contractor s database shall provide tracking of the card from thetime of receipt through its program life. Card inventory shall be controlled and trackedwhen it is moved or handed to others. Contractor shall provide a system of recordedreceipts and signatures. At the point where the last receipt exists is where the liability


for the loss and the card replacement cost shall occur. Cards that have not been eitherreturned or reported lost shall be considered active cards until the Participantsdesignate some convention for inactive cards. The Contractor s database shall have theability to track inactive cards and up to three additional card statuses, to be designatedin the future.

Upon receipt of the TAP cards from the supplier, Contractor shall verify and inventorythe delivery quantities. If required, Contractor shall deliver variable quantities of cardsto an additional intermediary for final graphics production.

Contractor shall manage TAP card inventory including, but limited to:

Maintaining inventory levels for a configurable amount of days subject to theapproval of MTATracking of all undistributed cardsMonitoring inventory levels at all distribution points, and re-supplying thesepoints when inventories drop below threshold levels defined by third-partyvendor agreements

Preparing statistical reports detailing the procurement and disposition of allcards in the distribution networkProviding a mechanism for reissue of returned cards

Contractor shall maintain the inventory of un-issued card stock on behalf ofParticipants. Contractor shall maintain a separate contingency inventory of un-issuedTAP cards in a separate physical location from the main TAP card inventory forDisaster Recovery purposes. The exact amount, location and cycling of this inventoryshall be subject to the approval of MT A.

The inventory and accounting systems used shall support, but not be limited to:

Flexible packaging options and control by number ranges (of pre-numberedcards)Management of sub-classifications of cards for all card types and fare categoriesor cards with particular graphicsTracking of individual packets of cards, and individual cards, to their inventorylocations, whether at Contractor, Participants, or at third parties.

3.3. Card Stock Security

Contractor shall physically secure the card stock inventory until the cards have beendelivered by the Contractor and subsequently received and formally accepted byDistributors. Contractor will be liable for the secure storage, movement and


distribution of TAP cards with or without loaded value and will bare the liability fornegligent and preventable losses.

Card Fees

MTA will be the sole authority for establishing the fees for all TAP products andservices. MT A will retain all the fees for TAP products and services. A TAP cardholdershall not be charged fees other than the non-refundable administrative cost of issuing orreplacing the TAP card, expected to be priced at $5.00. All card and cardholder fees arethe property of the Participants. Sales tax shall not be assessed on the initial TAP cardissuance, replacement, or reload of the TAP card. A no fee one time replacement TAPcard will be allowed within the life period of the card. When the life period of the card(approximately 4 (four) years) is reached the card will be re-issued and MTA will havethe option to require the collection of an additional administration fee for the new card.

Customer Statements

Contractor shall provide customer account statements upon customer s request.Customer requests shall be received in writing, email, TAP web, telephone calltelephone message or IVR. Statements shall be provided only for customers with aregistered TAP card. Contractor shall propose a method of ensuring that a statementrequest and release involves an authenticated TAP cardholder. Statement will showpast 30 day s TAP card activity at the transaction level including any central systemgenerated transactions. TAP system codes or acronyms will be expanded into the fullterms as understood by the cardholder. Contractor shall use discounted UP PostalService products where possible (zip sorted, bulk etc)

There will be no charge for the statement; however there will be a limit of threestatements per cardholder in a twelve-month period.

10 Not Used

3.3.11 Closing Accounts and Accounts in Default

Accounts shall be closed upon agreement of MTA and Contractor. Contractor shallpost, TAP cards reported lost or stolen to the hot card list. A list of lost and stolen TAPcards shall be updated and provided daily to the Participants. There are no fees on thecardholder when an account is closed.

12 Balance Protection

All registered TAP cardholders receive the protection of unused balances, including e-cash, passes, and stored rides, should they lose their card. Contractor shall replace card


and the unused balance as confirmed by the Regional CDCS card database within 24hours of the card being reported lost or stolen. MT A will have the option to revise the24-hour grace period after discussion with the Contractor. Customers shall be requiredto provide, and Contractor shall confirm, the cardholders ' PINs for the registered cardsbefore issuing replacements.

13 Institutional Programs

Institutional programs are current or planned programs to provide transit benefitsand/ or transit privileges to employees, students, clients of social service organizationsgovernment agencies, not-for-profit organizations, schools, and Participantsemployees. The Participants currently administer a range of programs targeted atserving employers, campuses, schools, and social service agencies, including IRS IRCSection 132(f) transit benefits programs sponsored through employers. The subset Institutional Programs built around IRS IRC Section 132(f) are referred to as EmployerPrograms, and consist of employers and Government agencies that have a singleaccount and will distribute multiple TAP cards and value to their employees.

These programs, as implemented under the regional TAP program, share a common setof core requirements and shall be implemented by Contractor using variations of pre-bill Autoload. Participants will focus initially on Employer Programs, as they are themost developed programs. Beyond the Autoload functionality that is provided by theRegional CDCS, Contractor shall develop all functions and systems required toimplement Employer Programs. The systems must be capable of supporting otherInstitutional Programs which will not be initially implemented, but which may beimplemented in the future.

Contractor shall provide a secure web-based service to allow employees to interfacedirectly with the Regional TAP Service Center for fulfillment of TAP cards and value.Contractor shall develop all functions and processes required to implement employerprograms as specified herein and in accordance with the Card Base Management Plan.

3.3. 13. Transit Benefits Program

Transit Benefits are Federal Government-supported, employer-sponsored tax benefitprograms through which employers can give employees up to $100 per employee permonth in tax-free benefits to be used for public transportation. Transit benefitprograms serve over 300 employers and 7 500 transit customers in the greater LosAngeles area. MT A expects these programs to grow at annual rate of 10% to 20% overthe next several years. At a future time determined by MTA and no sooner than 2 (two)years from the commencement of the first day of production ready service to the TAPservice users, the Contractor shall be offered an option to market Transit Benefitprograms directly to employers located in the region.


The system shall also provide employers with on-line procedures to manage theirindividual programs, including, but not limited to:

Linking card serial numbers to specific employeesCommunicating program changes through to the Regional TAP Service Centeron a regular basisGenerating reports from the TAP Service Center on the utilization of theprogram by their employees, including the type of fare media andcompany / agency who purchased itGenerate an " Advice Slip" detailing the company/agency monthly programchargesRegister all cards with card holder name, address, TAP generated PersonalIdentification Number (PIN)l etcInitialize all cards for employer program participants with the appropriateparametersAt an employer s option, personalize employee cards (e. , with photos). Allsuch card personalization costs shall be billed to the employer. The Contractorshall secure MT A approval of the personalization costs before introducing thisprogram.Distribute initialized reloadable cards to employers who will issue them toindividual cardholdersRecord the serial numbers of the cards as belonging to the employer to whichthey were distributedBe responsible for all processing required to set-up and perform Autoloads toemployee cardsImplement on going changes to employer programs, as directed by theParticipants, employers, IRS, or benefit recipient. These changes shall includebut not be limited to:

Addition or deletion of cardholders to the programChanges to a cardholder s fare payment optionChanges in the amount of an employer s subsidy or allowed maximumbenefit

ii Hotlisting of designated cards to prevent further use of the TAP cardiii Application and/ or reapplication in the case of a change in a cardholder

employment or subsidy status.

The TAP generated Persorullldnrtlficatwn Number may, ifpreviously approved by MTA, be replaced by some other systemsuch as the last four digits of tilt card hoIdns Social Security Number (this may prove problematic with un-documentedimmigrants), alternahvdy. IN ClUd holdrr s mother s maiden name can be considered. It is important NOT to try to use abank issued PIN for the purposn of ft'C'Unng the TAP card.


Provide employers reports from the Regional TAP Service Center databaseand/ or Regional CDCS on the utilization of the program by their employees,including details of card usage, loads, and account option changes

Maintain the confidentiality and privacy on the use of individual cards unlesswaived by a cardholder or under order of a court with jurisdiction over MT Aor other Participant

Manage the Autoload process for all scheduled benefit Autoloads so thatparticipating employees automatically receive new value loads.

In addition to the above requirements, Contractor shall assume completeresponsibility for the fulfillment of all TAP transit benefits programs throughout theregion. The Contractor s fulfillment responsibilities for these programs shall includebut not be limited to, the following:

Development, maintenance and administration of a single, central securewebsite for participating employers to manage their accounts

Billing employers and collecting funds for transit benefits loaded onto TAPcards

Daily downloading to transit Participants electronic lists of benefit changesper TAP card as well as TAP cards completely added to or removed fromcoverage

Receive uploads of benefits issued each day

Capability to issue partial benefit loads to employees at different times in amonth

Assist Participants ~n contacting employers and recruiting them to join thetransit benefits programs. MT A will have the primary responsibility foremployer recruitment and the development of marketing materials.

Credit unclaimed benefits back to employers (the employer will handle thetax aspects of any value to be returned to the transit program beneficiary)

The transit benefit pt:ograms are always operating in a pre-bill mode.Contractor shall provide a single consolidated bill to each employer.Employer payments may be up-front, monthly, every three months, semi-annually, annually, or a combination of these, depending on the type oftransit subsidy program being offered by the employer and the billingpolicies set by the Participants. The bill shall be in sufficient detail to allowthe employer to track distribution of the transit benefit by transit productpurchased, by amount of transit purchased, and by Participant providingservice to the employee


Contractor shall be fully responsible for collecting all funds fromparticipating employers from the sale of TAP cards or from loading valueonto TAP cards. Contractor shall work with MT A to use a contract with theparticipating employers that requires that the funds be deposited in the TAPaccount 48 hours before they are required to be disbursed for productservices. Contractor shall monitor the receipt of these deposits and when latewill have the option to block the release of the benefit product to the TAPcard. Contractor shall deposit the full value of funds due in Participant'account, regardless of the amount of funds actually collected from employers.Contractor bears the risk of all transactional losses. Contractor shall be liablefor the credit risks associated with payment from any participating employer.Contractor shall specifically identify funds from each participating employerand include this identification in the ACH funds movement descriptions

Collect payment for benefit from multiple sources including, but not limited, employer, employee pre-tax income, employee post-tax income and any

combination thereof

Provide telephone ("help desk") support to employers to establish andmange their program. Employee assistance in enrolment and supplyingprogram details will be handled by the employer s staff and help desk.

It should be noted that for some period, there would be a transition during whichexisting transit benefits program will exist as both a paper instrument and as anAutoloaded benefit from employers. A phase-out of MT A' s paper vouchers will occurat some future time. Contractor does not have any responsibilities for the paper-basedprogram.

13.2 Other Institutional Accounts

Some institutional accounts will use the same products and services as EmployerPrograms, and Contractor shall handle these accounts in the same manner as theEmployer Programs. However, there are existing and anticipated future transitassistance programs, for example, parking, that will require different services andprocessing. Another program is the Immediate Needs Transportation Program (INTP),see Appendix C. Contractor is required to become familiar with the Immediate NeedsTransportation Program and to provide an outline of the process and system that isneeded to introduce, at a minimum but not limited to, EBT TransitChek like " daypasses , or alternative approaches to supplement and eventually replace paper-basedprograms.

14 MTA Reduced Fare Program


Contractor shall process the applications and record cardholder data for the ReducedFare Program. Contractor shall produce, distribute, and personalize TAP cards toeligible Students, Disabled persons and Senior citizens under the MT A Reduced FareProgram. The Student and Disabled Reduced Fare Programs allow eligible students(grades K-12 and full-time college and vocational) and disabled individuals to rideMT A trains and buses at reduce fare. Senior citizens will be required once to provideproof of their eligibility. Students will be required to annually provide proof of theireligibility. Disabled Program offers discounted fares for various time periods based onan individual's disability.

14. Reduced Fare Program TAP Card RequirementsEach Reduced Fare Program TAP card shall include a prefix identifier for each cardtype, as follows: RX for Disabled, P for Primary, H for High School, C for College andVocational, and SR for Senior on the front of the card. In addition, it shall include a 10-digit identification number following the pre-fix identifier, an expiration date, andphoto of the cardholder. The MT A and the Participants will provide the layout designof the card graphics.

Contractor shall ensure that the standard MT A card eligibility and use information, thatis provided by the MT A, is printed on the back of all ID Cards and Los Angeles CountyPunch Cards.

3.3. 14. Reduced Fare Program Application Processing

Contractor shall digitally capture and electronically store the photo along with thepersonal application information in a database. A completed Reduced Fare applicationshall include a passport type photo of the applicant.

All applications and corresponding photos shall be assigned a unique 10-digit IDnumber, upon receipt and review. If applications are received directly by MT A, thesame ID number shall be affixed to the application and photo by MT A and picked upby Contractor for processing. If no ID number is assigned by MT A, Contractor shallgenerate a series of unique 10-4igit numbers to be assigned to applications and photos.Affixing the same ID number to the application and photos upon receipt enables thetwo to be matched together if subsequently separated in error.

Contractor shall pick up applications from a designated P.O. Box and directly from theMT A. The applications shall be processed as follows:

Student (K-12) Applications

To apply for the Student Reduced Fare ID Card, Student applicants (K-12) shall:


- complete and submit the signed Student Application with a current passporttype, full face self photo

- include a $1.00 application processing fee (non refundable)provide personal identification information (if required as noted on theapplication)

- mail to a designated P.o. Box or deliver to any MTA Customer Service Center.When picked up from the P.O. Box and/or MTA, Contractor shall review each studentapplication for completeness and make an eligibility determination based on criteriaprovided by the MT A. Contractor shall produce and issue Reduced Fare ID Cards to alleligible student applicants.

Contractor shall reject student applications if the information provided is incomplete orthe photo provided is unacceptable. If the application is rejected, Contractor shallreturn the original application and photo to the applicant along with a rejection letter.The letter shall include reasons for the rejection and provide any corrective actionsrequired of the applicant for subsequent approval. The MT A will provide Contractorwith samples of rejection letters for Student applicants.

Contractor may receive checks or money orders made payable to the MT A or cashalong with student applications in payment of their $1.00 application processing fee.Contractor shall submit accountability and controls procedures for transfer of fundsreceived to the MT A. The MT A will have final approval and acceptance of theseprocedures. Funds shall be transferred to the MTA on a monthly basis.

Disabled, College and Vocational Applications

The MT A Reduced Fare staff shall certify and approve all applications received fromdisabled applicants, as well as applications submitted by College and VocationalStudents. The MTA Reduced Fare staff shall determine if these applicants meet theeligibility requirements for the Reduced Fare ID Card. Contractor shall pick up theapplications from the MT A and produce ID Cards for all approved applicants.

Some applications received by the MT A from Disabled, College and VocationalStudents may be rejected or refused. When applications are rejected, Contractor shallreturn the original applications and photo to the applicants along with a rejection letter.The rejection letters shall state why the application was rejected, and the correctiveactions required of the applicant to meet the eligibility requirements.

When an application is refused, it means that the applicant did not meet the eligibilityrequirements to receive a Reduced Fare ID Card. Contractor shall send a refusal letterto the applicant and return the refused application to MT A for filing.


MT A will provide Contractor with samples of rejection and refusal letters for theseapplicants.

County Punch Card Applications

Students requesting to apply for the County of Los Angeles Punch Card can obtain theLos Angeles County Residency Certification Application from any MT A CustomerService Center. Contractor shall pick up approved Residency Certification Applicationsreceived from students from the MT A for processing. Contractor shall input eachapplicant' s information into the database and then issue a County Punch Card to thequalified applicant. The County Punch Card shall be issued on paper stock andincludes the student's name, I,D. Card type by school and the Los Angeles CountySupervisor s Name and District. An applicant' s photo is not required on the PunchCard.

Senior Card Applications

The MT A has not finalized the new procedures for the Senior Card program, but thegradual conversion process should begin by the end of the first year from the date thisContract is awarded. It is expected that during the second year of this Contract,approximately 12 000 Seniors should be in the database system. The projectedcompletion date is expected around December 2004, resulting in approximately 36 000new database files.

Replacement ID Cards (Student, Disabled and Seniors)

MT A shall provide Contractor with replacement applications. Contractor shall beresponsible for the re-issuance of replacement MT A Reduced Fare ID Cards forstudents, disabled and senior applicants. Replacement cards are requested when theoriginal ID Cards are reported damaged, stolen or lost. Contractor shall retrieve thecustomer s information and digital photo from the database and re-issue a cardreflecting the same information as the original card. The replacement card shall containthe original card expiration date and 10-digit identification number. Contractor shallcross verify a replacement request information to the original application, to ensure thatthe replacement (1) is not a request for a second original card and (2) is not an attemptto by-pass a confiscation code that would prevent re-issue.

Pickup and Disposition of Documents

Contractor shall pick up applications to be processed and return processed and refusedapplications to the MT A not less than three times per week. Contractor shall datestamp all applications and correspondences received and shall adhere to the time


requirements of Section 3. 14.6, for processing them. Contractor may submit analternative pick up and delivery schedule for MT A consideration and approval.

At the direction of the MT A, all processed applications will either be returned to theMTA for destruction or destroyed by Contractor. The retention period for all data isprovided by the Audit Report described in Section 9.

14. Deliveries and Mailings ofID Cards

Contractor shall follow any special mailing or delivery instructions when sendingReduced Fare ID Cards to applicants. Most ID Cards shall be sent directly to theapplicant through the US Postal Service. However, some school officials may requestthat their Student ID Cards be returned to the school for disposition. Additionally, theMT A staff may request that certain ID Cards be returned to them for delivery.

To facilitate identification of the type of ID Card mailed, a specific preOfix letter alongwith the identification number of the card being mailed shall be included on the mailingenvelope with the customer s name and address as detailed in Section 2.

MT A will provide Contractor with an MT A Bulk Mail Permit. Contractor shall providethe MT A with monthly detail cost reports, which shall include the actual number andtype if items mailed. The format of these reports will be approved by the MT A at thestart of the Contract.

14.4 Customer Files and Quality Control

Contractor shall be responsible for ensuring that all input data is checked against theapplication for accuracy to make sure that the correct photo is associated with theproper form being processed, and that all other information is correct. Any ID Cards,forms or letters that must be reissued due to the Contractor s error of improper datainput or verification shall be done at Contractor s expense.

MT A customer personal data files and documents are very sensitive and require a highlevel of security and confidentiality when handling. Therefore, Contractor shall ensurethat control procedures are used to avoid the dissemination of or the compromise ofconfidential customer information.

MT A requires that Contractor establish and consistently maintain high quality controlstandards during the production of the ID Cards. To ensure that a high standard ismaintained, MT A will conduct periodic spot checks of Contractor s database, physicalfiles and control procedures, Acceptable control standards shall include, but a re notlimited to the following:


Control and safekeeping of all applications, including batched items andmaterials received from the MT A

The association of a customer s electronic record (which includes the customername, assigned 10-digit ID number, photo and mailing address) and issued IDCard must be 100% accurate

Control and record keeping procedures to detect processing errors.

Archiving and indexed for retrieval (five years)

14. Database Maintenance

Contractor shall be responsible for the design and installation of the reduced farecustomer database and the application and testing of the data transmission. Contractorshall provide data base access and reports to MT A and Participants.

Database Design

For each customer application received, Contractor shall create an electronic record ofthe customer information into a database. The database should not have a proprietaryformat and should comply with MT A standard use of Oracle database. The MT Aprefers that it be web-enabled and use the currently available version of the InternetExplorer.

The database shall include all relevant cardholder information for each card typeincluding, but not limited to: name, address, telephone number, birth date, unique 10-digit identification number and expiration date, and photo image. These database filesshall also be used to provide administrative functions including renewal notifications,administrative reports, and cardholder historical data. Contractor shall periodicallypurge various database files when directed in writing by the MT A and provide writtendocumentation to the MT A confirming what was purged and when that process wascompleted.

The database shall be Open Database Connectivity (ODBC) compliant to allow forimporting and exporting data and have search capabilities that allow MT A staff andContractor to access customer files using any of the following elements:

Applicant' s nameApplicant' s birth dateCard type (student, disabled, senior)Issued identification number

Application Design


Contractor shall provide an application that is to be installed on an MT A personalcomputer. The application shall allow the MTA staff to browse and edit the specificinformation in the database. The MT A prefers that it be web-enabled and use thecurrently available version of Internet Explorer.

Data Transmission

Contractor shall be responsible for acquiring and installing the necessary computerequipment, with prior approval from MT A, to make the transfer of data to and from theMT A possible. Contractor shall also be responsible for providing the MT A with therequired production equipment for two workstations to allow the issuance of ReducedFare ID Cards as needed on site by the MT A staff.

The MT A shall be the beneficial owner and user of any commercial software and/ orlicenses to be procured by Contractor for this purpose. MT A will review all softwarelicenses prior to execution to ensure that there are no license terms or conditions thatare not acceptable. When Contractor is no longer the vendor for this Reduced Fare IDCard Program, these items shall be turned over to the MT A within five (5) businessdays of written request from the MT A.

14. Time Requirements

Contractor shall process complete and certified applications, produce and mail IDCards to eligible recipients within five (5) business days from picking them up from theMT A or the designated P.O. Box. Contractor shall date stamp all applications andcorrespondences received and shall adhere to the five (5) business day s time constraintwhen processing and issuing all ID Cards, mailing rejection and refusal letters toapplicants, and returning all refused applications to the MT

3.3. 14. Other Services To Be Provided

The MT A works with other participating transit agencies that issue the Los AngelesCounty Transit Operations Association (LACTOA) Disability Identification Card toeligible customers. To ensure customers are not requesting and receiving multipleDisabled ID Cards, other transit agencies provide the MT A with electronic data files ofall customers that have been issued an ID Card within the past month. The data filescontain the customer s name, birth date, expiration date, and the identification numberassigned to that card along with the transit agency alpha prefix.

MTA will provide this information to Contractor. To ensure that an applicant is notreceiving multiple ID Cards, Contractor shall compare the information received fromother participating transit agencies with the MT A database. Contractor shall identify


any duplications or ineligible customers and list them on weekly exception reports forMT A. MT A shall advise Contractor on the final disposition of customers appearing onthe exception reports. Updated data information shall be provided to submitting transitagencies with any exception reports.

Training and System Support

Contractor shall have system capabilities and technical expertise to provide systemtraining and data processing support on and off-site to MT A staff. Contractor shallprovide required materials for staff training.

Database Conversion

Contractor shall convert current MTA Reduced Fare database files into the newdatabase as described in Section 3. 14.5 of the Statement of Work.

14. Technical Requirements

Within 30 days of the issuance of a "Notice to Proceed" by MT A, Contractor shall meetwith the MT A Project Manager and technical staff to confirm specific contractperformance elements and requirements. At that time, Contractor shall be responsiblefor:

Submitting specific plans and documentation describing the Contractor s internalcontrols and processing procedures in production, distribution, mailing andmanagement for the fulfilment of this Contract.Providing written detailed plans on security measures and controls that shall beput in place to protect and safeguard MT A applications, client privacy, and theintegrity of the MT A database system.Documenting the processing and reconciling procedures to credit MT A for feesreceived by Contractor with various MT A applications.Providing written detailed procedures regarding the format for the new ID Carddatabase to be established by Contractor and the means for transmitting theinformation to and from the MT A. Contractor shall provide the MT A with acomplete list of hardware and software components of the Reduced FareDatabase Management System including, but not limited to: source codes, (COTSproducts excluded) terminals, custom cables, connectors and adaptors, utilityand maintenance programs, and all other operating and application informationused to run the database. These items must be approved by the MT A before theyare acquired.Demonstrating the security and anti-counterfeiting features that shall be in placefor issuing cards to respective customers.

Version 1.1 - Draftfor Second Industry Review

Identifying a central secured location for processing the MT A work. Providingthe audit trail procedures that track accountability and responsibility fordocuments received and cards issued in a controlled secure environment.Providing procedures for destruction of sensitive materials and documents suchas applications and voided cards.Providing information on how the data will be maintained and stored, thefrequency of updates, and the communication methodology that will be used totransmit and retrieve data to and from the MT A. Include the level of systemsupport that will be provided, the backup and recovery procedures that will beused in the event of system failure and the type of training and documentationthat will be provided to MTA staff.Documenting procedures that will be used to ensure that the photo, customerinformation and subsequently issued card accurately match. Contractor shallinclude the procedures taken to handle "peak volumes" for student applicationsand number of staff provided by Contractor to support MT A work to meetrequired turn around times.Documenting procedures to handle applicant's inquiries. Document the steps tobe taken for pick-up and delivery of MT A work.Documenting the Contractor s billing, accountability and control procedureswhen invoicing MT A and identifying the Contractor s staff person responsiblefor resolving any billing issues.

14. Monthly Reports

Issued/Mailed Cards

Contractor shall maintain and provide monthly reports to the MT A that confirm thedates and quantities of cards mailed. The format of these reports shall be approved bythe MT A at the start of the contract. The format of the report shall be such that theinformation provided in the report can be easily matched to Contractor s invoices.

Replacement Cards

Contractor shall submit monthly reports by the 10th day of each month, which shallprovide:

Total number of replacements by student typeRejected or original replacement requests for an ID Card when a confiscated codeis present in the databaseRejected applications that would result in a duplicate card being issued.

Exception Reports


Contractor shall identify any duplications or ineligible customers and list them onexception reports for MT A review.

)(0

Ad-hoc Reports

Contractor shall be responsible for generating ad-hoc reports as requested by the MTAProject Manager including, but not limited to:

Number of identification cards issued to first time applicantsNumber of replacement cards issued by typeNumber or duplicate records identified by comparing records to otherparticipating transit agenciesReport identifying records to be purgedReport for other transit agencies to compare against their own recordsCounty Punch Card reports by student ID Type and Supervisory District.

Project Number of Reduced Fare Program Participants

Figure 3.3-1 illustrates MT A' s projections for the number of participants in the ReducedFare Program:

Figure 3.3-1: Reduced Fare Program Participants

ID Cards To Be issued Estimated Volume Per Year CommentsStudentDisabled

50,00040,000

Senior (New PVC type card) 12,000

12 and Colle ejVocationalIssued for 3 months, 6 months, 1ear and 3 ears

Approximately 40,000 to beissued for over a 3 ear eriod

Issued to eligible Countyresidents50% each for students anddisabled customers

County Punch Card 000

Replacement Cards 2,500

Bike Permits

Renewal Notices000

20,000

Paper stock

Approximately 1/2 of disableddatabase

15 Electronic Security Keys


MT A will have the sole responsibility for the control, management, configuration andchanges of the TAP system security keys. Contractor shall be responsible for theoperation of the security key functions provided by the Regional CDCS. MT A willdirect, oversee and approve the Contractor s activities in the management of the TAPsystem security keys.

3.3.16 Hot Card List

Through the Regional CDCS supplied functions accessed via a GUl, Contractor shallhave the ability to block lost, stolen, or discontinued TAP cards. The Hot Card List canalso be used for other card base management functions, such as fraud management.Hot listed cards are denied any service at any device that has received the currentupdated Hot List file and the first time a Hot Listed card is read by an updated TAPdevice the card is updated to render it disabled. Contractor shall update the RegionalCDCS database with the serial numbers of lost or stolen cards for download to allParticipant systems each night to block use of lost or stolen cards. Once blocked, onlyauthorized personnel with the appropriate security keys (assigned by the Contractor)shall be capable of unblocking the TAP cards.

17 Autoload

Autoload services shall permit a registered cardholder to automatically load value to acard, on a periodic or on an lias needed" basis when the TAP card is presented at a TAPdevice. Contractor shall review and approve or deny cardholder applications forAutoload services. Contractor shall enable Autoload on cards remotely (that is, notrequire the cardholder to present the card in person or by mail).

Contractor shall administer a "Pre-bill" model. Contractor shall use the Regional CDCSsupplied function to attempt to collect funds for the Autoload value before the actualload. If the funds are collected, the Autoload shall be granted. If the funds are notsuccessfully collected, the card shall be Hotlisted before the Autoload event, preventingthe Autoload from taking place. The level of Hotlisting shall only block the Autoloadevent, rather than blocking all TAP card usage. The block on the Autoload transactioncaused by an unsuccessful attempt to collect the funds shall not cancel or remove theAutoload product from the card. The block shall suspend the transaction and theAutoload transaction may shall be unblocked if the funds are available and collected onthe business next day. When there have been two consecutive suspensions or fiveseparate suspensions in five years (which ever comes sooner) then the Autoload featureon the card shall be cancelled and the TAP cardholder notified of the change to theiraccount.


Contractor shall manage Autoload setup using an interface to the Autoload functionsalready existing at the Regional CDCS. Contractor will be provided with a GUI and APIand is allowed to define and establish an industry standard interface of their choice.

The cardholder shall be required to sign up for the Autoload service, and Contractorshall support such sign up by telephone, fax, mail, e-mail, over the Internet and in-person. At the time of signup, the cardholder may be required to specify, but not belimited to:

The amount of money to be loaded to the electronic purse (there will be limits on theamount of value currently set at $300)The funding account, credit or debit card to be used to pay for the value beingloaded onto the cardParticipant-specific rides or time-based passes

Cardholder applications shall be approved or denied by Contractor within two (2)working days of receiving the application.

Accepted forms of payment for Autoload shall be check, money order, credit cards,debit cards and electronic transit benefits. Check and money order apply to one-offAutoloads only. Cardholders may nominate one or a combination of these paymentmethods for Autoload. The entire e-cash load or pass product shall be loaded to thecardholder s TAP card at the TAP device delivering the Autoload (e.g., for a $60monthly pass, the cardholder can nominate $40 be paid in transit benefits and theremaining $20 be paid using a nominated credit card).

Funding from individual consumer accounts shall be governed by an Electronic FundsTransfer Agreement ("EFT Agreement") between the consumer who owns the fundingaccount and Contractor. This EFT Agreement shall allow Contractor to access theconsumer s designated funding accounts as required by the specific Autoload optionselected by the cardholder. This Agreement shall comply with all applicable consumerprotection banking regulations and with the Operating Rules of the credit and debitcharge card schemes through which funding is effected. Contractor shall develop andadminister these EFT Agreements. Individual funding accounts supported shallinclude, at minimum-credit card accounts associated with Visa, MasterCard andDiscover branded credit cards, charge card accounts such as those associated withAmerican Express cards, and debit cards and depository accounts at financialinstitutions (national banks).

A standard Institutional Program Agreement, developed jointly by Contractor and theParticipants, shall govern the establishment of institutional program accounts and thefunding from these accounts. Contractor shall develop and administer these EFTAgreements upon approval by the Participants.


17. Remotely Activated One-off Autoload

Contractor shall allow a cardholder to automatically load value to a TAP card on an ad-hoc basis. The system will not require cardholders to activate the service by presentingtheir cards in person at a designated facility. Cardholders shall be able to remotelyactivate this value load service via phone or Internet. The system may require thatcardholders identify a Participant at which the value load shall occur.

Remote activation of a one-off value load shall proceed as follows:

A cardholder desires to load value or a Participant-specific period pass and callscustomer service or mails in completed Autoload form and payment, or arrangesvia websiteThe cardholder provides the required information necessary to process the valueload request (e.g., card serial number, funding credit! debit card, transit product)If paying with credit or debit, online authorization is obtained and thecardholder is charged at this timeDuring the next complete download! upload cycle for the Regional CDCS, thecardholder s value load request is downloaded for distribution to all transitParticipants ' systems (networked devices as well as bus depot servers for the RFexchange with the returning buses)The cardholder presents their card to a TAP device, which compares thecardholder s card serial number to a list of one-off Autoload requests. If a matchis found, the reader then checks to make sure that the requested value or transitproduct has not already been loaded. If not, the reader loads the requested valueor transit productUpon successful completion of the one-off Autoload, the cardholder s serialnumber is deleted from the list of pending requests. When this transactionoccurs on a bus route the transaction is collected via the RF exchange betweenthe bus and the depot server.

17.2 Autoload Service Discontinuance

Cardholders shall not be required to present their cards in order to discontinueAutoloads. Contractor shall provide for the following Autoload service discontinuancescenarIOs.

Voluntary Discontinuance - TAP cardholders may discontinue Autoloadservice permanently or temporarily by not utilizing the card. If the card is notused, there shall be no Autoload and the designated funding account shall notcontinue to be billed. Should such non-payment continue for a period to beagreed between MT A and Contractor, the system may disable the Autoload


designator in the card arid Contractor shall notify the customer by the least costmethod available, email, phone message, USPS etc. Under this scenario, thecardholder shall be required to reinstate the Autoload function should theydesire to do so in the future. Cardholders should also have the option ofrequesting Autoload discontinuance by contacting Contractor directly via phone,in person, or via the Internet.Employer or Institutional Program Discontinuance - at an employer orsponsor s discretion, the organization can add or remove benefits fromemployees ' TAP cards, or even add employees to or remove them from the list ofthose in the organization who are eligible for the benefit.Involuntary Discontinuance - In the event of cardholder abuse of the Autoloadfunction such that there is a history of difficulty in the collection of funds,Contractor shall discontinue Autoload service for that cardholder in accordancewith guidelines to be established by MT A and Contractor during the designreview process.

3.4 CUSTOMER SERVICE

A critical requirement of the TAP program and of this Scope of Work is that customersdeal with a single entity for all customer aspects related to the TAP card. Contractorstaff shall provide customer service, which shall include, but is not limited to:

Phone and in-person contact points for customer serviceResolution of disputesQuick response and resolution times to customer complaints and inquiriesAccessible hours of operationCustomer service tracking systemTraining plan for new hires and existing employees.

Contractor shall provide assistance by telephone, e-mail, fax/ mail, and in-person. Thisis particularly important during the initial period of card use as customers learn thefunctionality of the card. Contractor shall ensure that staffs are fully trained tounderstand and identify customer problems. MT A will have the opportunity to reviewand approve all training materials, curriculum, and training delivery methods. MT reserves the right to review the performance of Contractor and may periodicallymystery shop" the service.

Contractor s staff shall, at all times, present themselves and carry out their functions in ahighly professional manner, befitting their role of customer service representatives.Contractor shall employ methods that shall ensure a positive public perception andutilize industry standard operations and guidelines for customer service.


Contractor shall meet initial service levels at commencement; however, MT A reservesthe right to adjust service levels as dictated by demand. Contractor and MT A willaddress the adjustment of service levels. Contractor shall notify MT A, in writing, ofany reason that agreed upon service levels should be adjusted. MT A will approve ordeny such requests. Contractor shall work closely with MT A to establish a regularreview process to assess the performance and make the necessary changes. Anyadjustment in service levels (plus/minus) shall be open to service fee price adjustment.Contractor shall comply with the terms of the contract for presenting all informationrelating to the basis for any cost of service changes. Without agreement between MT and Contractor there will be no changes to service levels or the related service fee.

It is the intent that each Participant will continue to operate their existing customerservice functions, which in most cases include telephone and mail service along withwalk-in service locations.

Contractor-provided customer service functions are envisioned as augmenting theParticipant-provided services, and shall focus on service issues specific to the TAP card.Calls or other queries received by Contractor related to Participant specific issues, suchas route or fare information, shall be routed to that Participant for disposition. TheRegional TAP Service Center shall be but not be limited to:

A central point for customer service activities enabling cardholders to report lostand stolen cards, to request card Autoloads or new cards, register existing cards,and to respond to balance inquires or general TAP card related queries

A central mail and contact center to provide TAP card Autoload, new TAP carddistribution, institutional programs and other TAP related customer service.

3.4. Customer Materials

Customer materials will be provided by MT A. MT A will be responsible for the contentand format of all printed material. MT A will provide the Master copy and/ or file andContractor shall produce the required quantity, passing production costs through toMT A. Contractor shall provide MT A with details of their administrative costs for thisservice and receive MT A approval before commencing. MT A will perform presschecks and other quality assurance steps prior to approving full production runs. MT will provide a list of approved display materials, and Contractor and participatingthird-party vendors shall display only that which is approved by MT A. Contractorshall assist MT A to develop and produce printed material as necessary to utilize theexpertise of Contractor and to assist in the coordination of data requirements.

Application Processing


Contractor shall utilize the customer application as designed by MT A. This formshould become the standard for all applications and should be completed for eachcustomer. It is possible that an organization could register a block of cards in the nameof the company. The company would be responsible for the association of employees tocards. Information on the application is the sole property of the Participants, as are anydata files built with this data. This information may not be used by anyone other thanthe Participants.

Contractor shall process, approve, and keep on file for 5 (five) years as stored imagesthe applications of each registered card issued after which time they should bearchived. The stored images shall be accessible online to customer servicerepresentatives of the Regional TAP Service Center. On an as-needed basis, applicationimages may be emailed or faxed from the Regional TAP Service Center to walk-center representatives who require them.

For credit card customers, accessing the credit/ debit card switch at the Regional CDCS,Contractor shall receive authorizations before issuing TAP cards. In the event ofcharge-backs, the TAP cards shall be Hotlisted and any balances forfeited, up to theamount loaded in the transaction associated with the charge-back. The outstanding costof the charge-back shall be borne by the Contractor.

In consultation with MT A, Contractor may at its discretion limit the number of cardsissued Or reissued to an individual or institution should it appear that such a policy is inthe best interest of MT A. Applications can be received by mail, in person, or throughthe Regional TAP Service Center website. Phone applications may be acceptedhowever, no deliveries will be made to addresses other than the billing addresses of thecredit applicants.

To establish an active new registered account, Contractor must complete theregistration of a pre-initialized card or initialize and register the card during the sameprocess. The registration of the card should occur within five business days of issuance(same day is preferable). Initialized cards may be provided or mailed to the customerbefore registration is complete; however, customers shall be provided a copy of theircompleted registration information via mail, email, or other confirmation mechanismapproved by MT A.

3.4. Mail Processing

Contractor shall establish procedures to ensure the proper control and handling ofincoming and outgoing mail. The procedures shall cover handling mail that includesapplications and payments, as well as mail concerning complaints, inquiries, orcomments. Contractor shall develop responses in accordance with MT A guidelines.


Contractor shall obtain bulk mail rates and other economies as can be achieved withoutsacrificing service.

3.4.4 Telephone-Based Service

Customers will access customer service for TAP by dialing 1-800-CALL- T AP (or otherdedicated call-in number to be determined). Contractor shall also provide a TTYservice for customers with hearing impairments. MT A shall have the opportunity toreview and approve the design, implementation, and evaluation of telephone-basedserVIce.

Contractor shall support five languages at the TAP Service Center (human and systemsupplied services). English and Spanish with three other languages to be specified later.Contractor shall provide a TAP Service Center that has nothing to prevent the futurecapability to support up to nine (total) languages.

Contractor is required to provide systems for and utilize an Automated Call Director(ACD) and Interactive Voice Response Systems (IVR) and techniques with its telephonesystems. Speech recognition systems are encouraged as MT A. As part of the Statementof Work, Contractor must provide customers the option to speak directly with acustomer service representative during the hours of 6:00 AM to 8:00 PM local time onweekdays and 8:00 AM to 5:00 PM on Saturdays and Sundays, with the exception ofThanksgiving Day, Christmas Day, and New Years Day. MTA will evaluate CustomerService hours in the future, and may modify the operating hours and contract based onregional customer demand, as applicable. The "Talk to Customer ServiceRepresentative" option must be presented in the initial menu choices as well as available from any point within the IVR. Telephone service shall provide anautomated means for customers to report lost or stolen cards and check accountbalances 24 hours a day, 7 days a week, 365 days a year.

Contractor shall determine the number of phone lines to be established and whatcapacity (incoming call volume) they shall handle. Contractor shall follow soundindustry recognized practices of customer service approved by MT A for the handling ofcustomer calls, making notes against accounts, follow-up of unusual situationsescalation of problems to supervisors, and electronically logging calls for type andduration in the system. Customer service representatives shall log at least one call typeper call answered, and shall be able to classify each call with up to three types. Anindex and classifications of call types shall be determined during the design stages ofthe Regional TAP Service Center program.

Contractor shall establish a cardholder support service to respond to the TAPcardholder calls and inquiries. Customer service representatives shall assistcardholders with, but not be limited to:


Answers to questions regarding the TAP service

Resolution of TAP related problems, such as card malfunctions, Autoload, lost orstolen cards

Card replacement and value refund requests, and verbal reports on the status ofsuch requests

Information on the unused value remaining on a TAP card. Unused valueinformation shall be as of the last data upload for remote inquiries

Reporting lost and stolen cards

Autoload set-up and discontinuance.

Contractor shall use the MT A supplied API to develop and implement the interfacebetween Contractor-provided call center system and the Regional CDCS database thatshall provide the information needed to answer TAP cardholder inquiries (e.remaining balance).

3.4.5 Internet-based Service

Contractor shall provide a website through which customers can purchase and registerTAP cards and select Autoloading via the Internet. The site shall enable customers tocomplete the entire transaction via the Internet and alternatively, to print applicationsthat can be submitted via mail or fax. Contractor shall also provide customers with thecapability to manage and change their account information and options via thispassword-protected, secure website. (In addition to use of passwords, the site shallincorporate industry-standard security features to protect against theft of personalinformation, TAP card activity, and payment card and financial data.) This websiteshall also permit customers to:

Order TAP cards, with options to register them and select Autoload at the sametime

View recent financial transactions associated with customer-designated credit ordebit cards

View most recent TAP uses and value loads

View and print TAP account statements

Update account information

Select or de-select account options (including method of statement delivery, forwhich customers may select Web-based display, e-mail or US Mail)


Select method of confirmation of account changes (e-mail or US Mail)

Make payment for purchases and Autoloads (both lIone-offll value loads andrecurring Autoloads)

Customers shall be provided with a unique event confirmation number of each changemade to their account information.

Contractor shall develop the automated interface between Contractor-provided Internetservice and the Regional CDCS database (via GUIs and/ or MT A provided RegionalCDCS APIs) to ensure automatic updating of the Regional CDCS card database. Thedesign of the Internet service shall be approved by MT A and the participants. Thefunctions, flow, security and the look and feel of the on-line Internet service shall bedescribed in CDRL 15, Card Holder Internet Access Service

3.4. Customer Inquiries, Complaints and Discrepancies

Contractor shall provide efficient handling, investigation, and resolution of customerinquiries, complaints, discrepancies, and fare disputes. Fare disputes are governed bythe fare structure and fare policies of each of the Participants. An example of a disputewould be a denied time limited transfer between one transit operator and another thatthe TAP cardholder claims was attempted within the specified time window. Faredisputes resolved in the customer s favor would cause additional funds to be due fromthe relevant Participant. In order to resolve fare disputes, customer servicerepresentatives shall be knowledgeable about all Participants ' fare structures and farepolicies, or at least shall have reference materials listing them at their individualworkstations for fast and easy lookups. Contractor shall work with the Participants todevelop further policy as required.

3.4.7 Walk-in Service (Option)

MT A's option, Contractor shall provide, and appropriately staff, equip and operatewalk-in customer service centers in the greater Los Angeles area. Proposed walk-centers shall be located at heavily used points where customers transfer between transitoperations, or other locations nominated by Contractor or the Participants. Asapproved by MT A, walk-in centers may be co-located with existing businesses orfacilities to increase customer convenience and reduce costs. While MT A has expressedthe initial interest in the Walk-in Service, the participating Munis also expect tointroduce a similar service at their own outlets. Contractor shall submit, for approval,the cost, location, design, implementation details of each proposed walk-in servicelocation. Contractor shall describe the equipment required to operate the services at theWalk-in centers. Only the MPOS will be supplied by the MT A. All costs associated with


walk-in center space rental (not including utilities or communications costs) shall beinvoiced monthly by Contractor as a direct pass-through operating cost. Contractorshall not add cost mark-up to space rental pass-through costs.

The walk-in customer service centers shall provide the following services but not belimited to:

Provide printed information on all participating servicesProvide information on TAP and applications for TAP cardsIssue and register TAP cards (including administration of Autoload)Accept cash, check, money order, and debit/ credit paymentsResolve disputes and provide in-person TAP card troubleshooting and guidance

Walk-in centers will not be required to handle non-TAP fare media (e.g. papermagnetic). Walk-in service shall be provided 7:00 AM to 7:00 PM on weekdays. It isnot required that walk-in centers be open on weekends or on Thanksgiving Day,Christmas Day and New Years Day.

Contractor may be required to provide detailed pricing for walk-in service centers bylocation, or by number of locations should MT A and the Participants elect to exercisethis option. If exercised in any quantity, walk-in service shall become an integral part ofContractor work and all other relevant sections of this Scope of Work shall apply towalk-in as a distribution channel.

3.5 DISTRIBUTION MANAGEMENT

Distribution management includes the distribution of new and replacement TAP cardsto customers and provides Participants and third-party vendors with a stock of TAPcards. All of these distribution services shall be performed in conformance withContractor-submitted "Distribution Management Plan" (CDRL 16), which shall addressdistribution through all channels, including Participant premises (Ticket Offices andTVMs) third parties, mail, and employer/institutional programs.

Contractor shall accept and manage orders for additional cards from all carddistributors. Contractor shall set up systems and processes to accept orders fromdistributors:

Over the phoneVia mailVia InternetVia fax


Contractor shall ship cards to authorized TAP distributor locations in a secure manner.Cards shall be shipped in their sealed packets. Contractor shall bill authorized carddistributors for card purchase fees via a monthly invoice. Card purchase fees will be setby MT A.

3.5. Card Returns, Refunds and Replacements

Defective TAP cards that fail due to no fault of the customer shall be replaced free ofcharge. If the customer has registered the TAP card, the value shall be transferred tonew card and the old card hotlisted. Customers who lose or damage their card shall beassessed a card replacement fee based on a policy established by the Contractor andapproved by the MT A. Contractor shall not be expected to pursue the return of unusedcards from individuals. If Participants allow refunds, then, MT A will refund throughContractor the purchase fee for any customer dissatisfied with the card once the card isreturned. If the card shows no evidence of physical damage, the card may be acceptedfor refund. Refunds shall consist of value transfers to a new card at in-person servicefacilities, and these facilities can accept cards and take information in order to issue arefund check to a customer by mail. Contractor shall record and classify, and providestatistical reports on damaged and non-functional cards by type of damage or failure.These reports shall also cover cards that cannot be issued from inventory as well ascards customers returned having been reported as defective. MT A will bear the cost ofthe defective cards acquired in any card purchase that MT A completes.

Contractor shall survey customer behavior and experience with the card to determinereasons for returning cards. The damaged, non-functional cards shall be returned toMT A for disposition. Contractor shall provide a method of damaged and non-functional card disposition that meets with industry standards and MT A's policies forasset and information disposal. Contractor shall provide data in such a way as to assistMT A in developing a TAP card life cycle profile.

3.5.2 Participant Ticket Office and TVM Distribution

MT A and Participant ticket offices and TVMs will serve the public as standard TAPcard sales locations. Contractor shall distribute, manage, and inventory of TAP cardsfor these locations. Contractor is not expected to stock TVMs directly. Participant staffor their agents will perform that function.

Mail Distribution

TAP cards distributed by mail with no value shall be activated cards, available for usein the system upon an add value transaction by the customer. If a customer orders TAP card with a pre-loaded value, the card shall also be distributed as activated.However, customers shall receive a notification with their card, that they must call the


TAP Service Center to activate the card. If the customer has not called within aspecified period of days (to be agreed upon by MT A and Contractor), Contractor shalladd the card serial number to the Hotlist. However, Contractor shall accept a verifiedcard activation request and remove the card from the Hotlist at any time following,unless the card is reported lost or stolen. Contractor shall respond to this requirementbut can furthermore provide an alternative method of positive passenger identificationduring card activation.

Should a TAP card be lost or stolen prior to activation by the cardholder, the card shallbe Hotlisted and the cardholder sent a new card at no additional cost to the cardholder.

To minimize the risk of cards lost or stolen through this distribution channelContractor shall institute the above procedures and may develop additional measures.Contractor shall document all such procedures in the Distribution Management Plan.

Once the card has been successfully activated, any link between cardholder informationcollected on the card order form (e. , name, address) and the card serial number will bedestroyed in all media forms (including back-up files) unless the cardholder hasregistered the card, or has established an Autoload account.

3.5. Internet Distribution

The Contractor s TAP Website shall be capable of receiving complete customer TAPcard orders and shall automatically populate the Regional CDCS card accountdatabases.

3.5.5 Walk-in Centers (Option)

TAP cards shall be available at Contractor-provided walk-in customer service centers.See Section 3.4.

, "

Walk-in Service.

VENDOR ENROLLMENT AND MANAGEMENT

Contractor shall be fully responsible for all activities pertaining to the third-partyvendor equipment and network, including both existing vendors and future vendors.Vendor equipment will be the Compact Point-of-Sale (CPOS) terminal that will besupplied to Contractor by MTA. No unattended sites are required. A location (or site)is defined as a geographically unique outlet with one or more CPOS units. Forexample, a particular store with multiple CPOS units is considered one location. MT currently has over 800 vendor locations, approximately 200 of which are responsible for80% of vendor sales volume.

See Appendix E for MPOS and CPOS Specifications


Contractor shall be fully responsible for establishing, administering, and managingvendor agreements in co-ordination with MT A. Although Contractor bears theresponsibility of third-party vendor recruitment and the management of the third-partyvendor relationship, the contractual arrangement shall be between the MT A and thethird-party vendors.

Contractor shall provide TAP card third-party vendors with procedures for issuing andloading value on TAP cards. Procedures must also allow for the return of cards by thevendor. The procedures shall include guidelines on TAP card inventory security,billing, funds collection and handling. Contractor shall provide these procedures as aseparate attachment to the Distribution Management Plan (CDRL 16). Third-partyvendors shall be required to offer TAP educational materials to customers. Contractorshall supply vendors with this material and replenish vendor stock as needed. MT will design these materials and Contractor shall have them produced passingproduction costs through to MT A without mark-up. MT A will perform press checksand other quality assurance steps prior to approving full production runs. Contractorshall order, inventory, and distribute the materials to the vendors.

Contractor shall be fully responsible for collecting all funds from contracted third-partyvendors resulting from the issuance of TAP cards or from loading value onto TAPcards. Initially for only MT A contracted vendors but anticipated for all Participantcontracted vendors, Contractor shall by the 7th working day of the month, collect 65 (sixty-five) of each vendor s projected monthly sales. Contractor shall be responsiblefor establishing the projected current monthly sales to within + /- 10% of last threemonths actual vendor sales. Contractor shall payout the full value due to theParticipants regardless of the amount of funds actually collected from the vendors.Contractor shall report to MTA Contracts office within 5 (five) business days, any third-party transactional revenue losses caused by third-party default, dispute etc. MT A shallreimburse Contractor for any transaction revenue loss incurred by Contractor reportedthird-party default, dispute etc

Third-party vendors shall use their own acquiring relationships for credit and debittransaction processing services. Credit/Debit services will not be extended to Vendorsvia processing at the Regional CDCS.

Contractor shall perform the following functions, but not be limited to:

Convert ticket sales to smart card sales and value loads at third-party vendorlocations, by installing CPOS units

Negotiate with and manage the region s third-party vendor network forParticipants


Expand the network as required

Provide technical and account support to network participants.

It is anticipated that during the transition of the current sales locations to TAP carddistribution using a CPOS, those businesses could, at their option, continue sellingpaper fare media such as EZPass. Any new sales locations are foreseen as only issuingTAP cards from CPOS units and not paper fare media.

1 Third-Party Vendor Recruitment

Contractor shall sign-up retailers, corporate sites, and public sector entities as third-party vendors, in cooperation with Participants. Third-party vendor recruitment shallinclude the following activities, but not be limited to:

Soliciting of prospective third-party vendors (both by telephone and in-person)Developing a standard contract between the third-party vendor and MT A (to bedeveloped jointly by Contractor and MT

Ensuring adequate coverage with locations by geography and appropriatebusiness type (while avoiding over-saturation)

Performing third-party vendor qualification and credit checks

Arranging for third-party vendors to remit and receive funds via the ElectronicFunds Transfer (EFT)

Installing terminals, and giving instruction on sales procedures, terminaloperation, TAP program information, and settlement requirements andprocedures

Posting, replenishment and replacement of TAP signage and promotional andeducational materials.

2 Third-Party Vendor Commissions

Commissions for TAP card issuance and value loads will be established by MT A andpaid out to the vendors by Contractor. Any such commissions shall be passed throughdirectly to the MT A, without mark-up, and are considered to be beyond the quotedprice in Contractor s proposal. Contractor shall not offer commissions above those setby MT A.

3 Third-Party Vendor Locations


Contractor shall review and assess the status of MT A vendor network locations byreviewing documentation provided by MT A. Contractor shall submit a "Third PartyVendor Plan" (CDRL 17) to document the plan for transitioning the existing vendornetwork to TAP cards once the Regional TAP Service Center is in operation. Contractorshall include a proposal for expansion of the vendor network locations for MT A reviewand approval.

The Participants reserve the right to also sign third-party vendor participants such aslarge retail chains and government accounts. Contractor shall be required to run creditchecks of these entities, and after the Participant executes agreements with theseaccounts, Contractor shall be required to set-up these Participants ' accounts, deployterminals, provide and post signage and educational materials, but not be limited to.

6.4 Management of Third-Party Vendor Network

Contractor shall arrange for all participating vendors and new vendors who join theThird Party network to receive new or replacement CPOS or MPOS units. MT A willsupply the CPOS units to Contractor. Contractor shall deploy CPOS units and shallsupport the participating third party vendors by receiving support calls via theRegional TAP Service Center Call Center. Contractor shall update the asset trackingand maintenance databases of the Regional CDCS. Contractor shall perform thephysical support of the CPOS units and the third party vendor network. Contractorshall monitor the health of the Vendor network. Vendors are solely responsible fortheir own dial-up lines to Regional CDCS. In the event a CPOS unit is not functioningcorrectly, the Regional TAP Service Center will provide the third party vendor with areplacement device and send the defective CPOS unit to the manufacturer or othervendor as defined by the MT A. See Appendix A for a sample MT A Vendor Agreement.

FUTURE TAP CARD APPLICATIONS

Contractor shall employ Regional TAP Service Center systems and services which tofacilitate and not inhibit, the introduction of future applications on the TAP card. It isMT A' s intent to explore the introduction of future transit-related and non-transitapplications of the TAP card. MT A will negotiate with Contractor on behalf of theParticipants to introduce future applications. Activity to expand the TAP cardapplications will be controlled and managed by MT A. Contractor shall complete noactivity in this expansion without the prior written approval of the MT A.

Transit-related Applications

Contractor shall design the TAP Service Center to support the current TAP product andplatform with provisions for, and no restrictions against, the MTA' s anticipateddevelopment of the TAP card to a multi-application card. Examples of the types of


transit-related applications that MT A may be interested in pursing in the future include,but are not limited to:

ParkingBridge tollsHighway tollsCalifornia Driver s License.

2 Non-Transit TAP Card Applications

Contractor s Regional TAP Service Center design shall not inhibit the futureintroduction of non-transit applications on the TAP card. Examples of the types of non-transit related applications that MT A may be interested in pursing in the future include,but are not limited to:

Merchant loyalty programsBank A TM servicesBank, or credit union e-purseSecure identification/ authentication using Public Key Infrastructure (PKI).

MT A reserves the right to explore alternatives to distribution of the TAP application inthe future. The TAP application may be carried on another card issuer s platform orissued by an entity that is not a transit authority. In addition, MT A reserves the right toexplore issuance of the future TAP application by alternate means. Alternativesinclude, but are not limited to:

Magnetic stripe combination cardOther chips such as ISO 7816 and ISO 15693Chip or SIM cards inside a cell-phone.


FINANCIAL MANAGEMENT

For the purposes of this program

, "

Clearing" is defined as the processing of all TAPtransactions to determine Participant end-of-day account position based on the TAPtransactions provided by the Participants by the end-of-day cut-off. "Settlement" is theactual movement of funds to and between Participant bank accounts and is expected tooccur monthly. The Regional CDCS will complete the Clearing process for the TAPprogram. The TAP Service Center will complete the Settlement via instructions to theParticipants' banks.

Clearing will occur daily; however, the end-of-day Participant account positions will becumulative for the days since the last Settlement. The account positions are expected tobe settled monthly and most likely up to and including the last calendar day of themonth. However, Contractor must design a service that allows the Participants to askfor more frequent settlements both on regular and irregular calendar schedules. It ispossible that the monthly settlement will become weekly or daily. The system ofsettlement must be designed to make possible that while operating in a monthly cycleof 31 days that the Participants decide to settle on the 23rd day and again on the 31 st soas to start the new settlement month on the 1 st. Contractor shall provide for a series alternatives for the scheduling and execution of the actual settlement and theconsequent movement of funds via ACH Debit or ACH Credit instructions to theParticipants ' banks. MT A will establish a TAP Service Center bank account for the soleuse of the Regional TAP Service Center. The account will operate between theParticipant bank accounts. The ACH instructions will originate from this account at theMT A bank. The Regional CDCS will create an ACH file for the Regional TAP ServiceCenter bank that will be automatically routed to the Regional TAP Service Center.

DISTRIBUTION OF SALES THROUGH THE TAP SERVICE CENTER

Funds received by the Regional TAP Service Center for the sale of the TAP card,registration fees and initial e-purse loads shall be deposited into the Regional TAPService Center bank account established by MT A.

Contractor, acting as MT A's agent in this role, is responsible for the collection anddistribution of all revenue from sales conducted via the Regional TAP Service Centerand TAP Website.

4.2 TAP SERVICE FEE ALLOCATION

Contractor shall provide a method to recover the shared service costs for TAP servicesprovided to the Participants. The allocation formulae shall be submitted to theParticipants for approval.


Contractor shall supply the accounting, billing and invoicing of the Participants for theoperating cost of all of the shared TAP services and products. The TAP services andproducts are those supplied by the Regional CDCS purchased from CubicTransportation Systems, the Regional TAP Service Center, and the contracted RegionalCDCS debit/ credit card processor.

TAP service fees may be both fixed and variable; however, these fees may not be thesame for each Participant. Contractor s system for billing the fees shall be a flexibleparameter driven model that allows for fee recovery based on a single or a combinationof factors, for example:

Total number of transactions attributable to a ParticipantTotal fare revenue earned by a ParticipantNumber and length of customer service callsNumber of active cards.

Contractor shall submit the fee allocation plan in (CDRL 19) "TAP Service CostAllocation and Recovery.

BANK ACCOUNT DEPOSIT PROCEDURES

Bank Account Deposit Procedures

All settlement funds when due to the Participants must be deposited to the Participantsbank accounts immediately and in no instance later than one business day of the receiptof the funds by the TAP Service Center bank. Contractor shall electronically transmitACH instructions to the TAP Service Center bank at an agreed upon time and day.

All sales funds and revenues received by the TAP Service Center and the optionalWalk-in Customer Service Kiosks must be deposited daily in the TAP Service Centerbank account established by MT A. Each day s deposits will be batched and identifiedby each cash drawer. Supporting the batch will be a cash drawer register tape that willbe signed by the cashier. Cash will only be accepted at the Walk-in Customer ServiceCenters.


REFUND PROCESSING

4.4. Refund Handling for Check Customers

The Regional TAP Service Center refunds processing and service levels shall be basedon Participants' current fare policies. Refunds, projected at 20 (twenty) per month shallbe issued to customers by check, processed, and mailed by the Regional TAP ServiceCenter. Cash refunds shall not be available.

4.4.2 Refund Handling for Credit Card Customers

Contractor shall work to resolve customer credit or debit card disputes related to TAPcard purchases or loads. If necessary, credit and debit card disputes are to be referredto the card-issuing bank. The TAP Service Center shall have no responsibility forblocking the bank issued credit or debit cards. No credits or adjustments shall be issuedby the Regional TAP Service Center outside of the refund process outlined in this Scopeof Work. Contractor shall respond to customer inquiries for information on recentcredit activity. Contractor shall be responsible for security of information and shallHotlist any TAP cards known to be or suspected of being purchased with a stolen creditor debit card, and shall block the use of credit and debit cards known to be or suspectedof being used fraudulently.

4.5 FUNDS SECURITY

There shall be no cash transactions at the Regional TAP Service Center, however cashshall be accepted at walk-in centers (if provided).

Payments received in the mail will be checks or money orders and Contractor shallprovide a full payment receipt, recording, accounting, and bank deposit service.Deposits are to be daily and included in the daily financial accounting of the RegionalTAP Service Center. Products and services purchased or paid for by mailed in checkand or money order shall not be issued to the customer until they have cleared and thefunds deposited in MT A's TAP Regional account.

Payments in the form of checks or money orders received in person at the Regional TAPService Center shall be verified by one of the top three online check verification services,(e.g. Equifax, TeleCheck, and ECHO)

RECONCIUA nON

Reconciliation for fare payments and value loads (including Ticket Vending Machinesand Autoload) through Participant networks will be completed by the Regional CDCS.


Credit Card Reconciliation

Contractor shall provide a reconciliation of all of the credit card activity in the TAPsystem with the bankcard settlement statements and deposits. The reconciliation to becompleted at varying periods set by MT

Bank Account Reconciliation

Contractor shall reconcile the TAP Service Center bank account monthly statements andprovide to MT A within ten days from receipt of the bank statements, printed copies ofthe reconciled bank account statements, approved and signed by the TAP ServiceCenter manager. At MTA's discretion, the account reconciliation frequency maybedaily or weekly.

Fiscal Year

The fiscal year for all of the Participants ends on June 30th

FRA UD LOSSES AND OTHER REVENUE LOSSES

Contractor shall be fully responsible for collecting all funds resulting from TAP ServiceCenter and Vendor sale of TAP cards and the loads for TAP Service Center, Vendor andinstitutional and walk-in services (if provided). Contractor shall deposit the full valueof funds due in the Participants ' TAP Regional account regardless of the amount offunds actually collected from the customer, employer, or organization. Contractorbears the risk of all transactional losses. Contractor shall be liable for the credit risksassociated with payment from any participating customer or employer.


REGIONAL TAP SERVICE CENTER SYSTEMS

CAPACITY OF SYSTEMS

Contractor shall size all system hardware and software, based on Participants' suppliedtransit ridership volumes, to ensure that they can accommodate the program operationthroughout the contract term by meeting all performance requirements andfunctionality requirements in this Scope of Work. Contractor shall create an overview-level document explaining all of the Regional TAP Service Center systems andinterfaces (CDRL 20) " System Functions and Interfaces Overview.

Any upgrade of hardware and software required (beyond what is proposed) in order tomeet the performance or capacity requirements of the operation as defined herein shallbe the financial responsibility of Contractor at no cost to the Participants.

Data Requirements

Contractor shall meet the following data requirements, but not be limited to:

Daily reports shall be available by 07:00 hrs PST the next business dayMonthly reports shall be available by the second business day of the followingmonthData extracts for the Operators shall be available by 07:00 hrs PST the nextbusiness dayAt a minimum, but not limited to, data shall be uploaded and downloaded onceevery 24 hoursWeb based access will return pages in less than 500 milliseconds. (Thisrequirement takes into consideration the time it takes to system to generate thepage. It does not include the loading time to the customer s browser but it doesinclude the internal TAP service center representatives web page loading)

FEATURES OF SYSTEMS

All systems developed by Contractor shall include, but are not limited to the followingfeatures:

Menu-driven user-friendly system or graphical interfaceModular system design to allow for cost-effective and expeditious changesdictated by program changes as directed by the Participants or as needed to meetthe performance requirements of the Scope of WorkSecurity measures, including, but not limited to, such features as userauthentication tokens, passwords and network security and firewalls


Ability for customer service representatives to type text notes on accounts totrack various situationsUse of data validation techniques and file transmission verification techniques inall data communications between all locations to assure validity of all user dataInactivity time-outs and automatic reboots in application software, both userdefined and system definedReasonableness checks on the ACH data received from the Regional CDCS andon information provided to customers; recovery or investigation proceduresshall be established for the cases when "unreasonableness" is indicated by suchchecksAppropriate data connectivity and bandwidth between the Regional TAP ServiceCenter and the Regional CDCS. Contractor is responsible for establishing andmanaging the network connection and the related costs, includingtelecommunication costs, between the Regional TAP Service Center and theRegional CDCS.

5.3 HARDWARE AND SOFTWARE

System Software

All software shall be either COTS or software that Contractor has already developedand deployed unless Contractor can show good justification to otherwise describefunctions and services that require the use and development of new proprietaryproducts.

System Hardware

Contractor shall provide all system components required to perform all Regional TAPService Center activities and functions at the Regional TAP Service Center facilitylocation(s). Required components include, but are not limited to:

ComputersImage scanning workstations for storing TAP card applications and otherdocumentsWeb severs and associated network componentsCommunication linesNetwork communications services (e.g., frame relay, ISDN)PrintersPhone system equipmentMail processing equipmentRemotely managed Uninterrupted Power Source (UPS) for critical componentsAll consumable supplies (e.g. including paper, disks, tapes)


Site preparation and installation design, including all necessary civil, electricaland mechanical drawings and construction packages.

Contractor shall provide and regularly update a "Detailed Configuration Plan" (CDRL21) for all system hardware and software, including component level lists, quantitiesdescriptions, costs, and locations.

Contractor shall provide equipment needed for online processing (e.g. for customerservice representative handling of customer inquires).

OPERATION, MONITORING AND RECOVERY OF SYSTEMS

Contractor shall provide Systems Administration activities including, but not limited to,system operation, monitoring, and recovery for all Contractor provided systems anddata proposed to meet the requirements of the Regional TAP Service Center.

The Regional CDCS will supply the systems and procedures for monitoring,diagnosing, and recovering all of MT A provided TAP systems.

The TAP Systems Administration is responsible for making sure that all the datacollected by all of the system s devices is sent up to the Regional CDCS for processing.

Regional TAP Service Center Contractor shall also supply MT A with the staff toperform the Regional CDCS Operation, Monitoring and Recovery functions to ensurethat the system is operational 24 hours a day, seven days a week and 365 days a year.Contractor shall notify the Regional CDCS Supplier of any maintenance actionsnecessary at any of the Regional CDCS end points immediately upon detection of theproblem. MTA will retain the right to outsource the entire Regional CDCS Housing,Operation, Monitoring and Recovery functions to a 3rd Party at anytime. The noticeperiod for this option will be established in the contract but will be no less than 120days.Contractor shall have access to documentation material that describes the functionslisted below. Contractor shall be responsible for developing the training material fortheir personnel to perform the function.

Contractor shall supply trained personnel to perform the functions of administering theRegional CDCS. These functions include, but are not limited to:

Network monitoring, diagnosis and recoveryEquipment monitoring, diagnosis and recoveryBatch and on-line process scheduling, monitoring diagnosis and recoveryDatabase monitoring, management, diagnosis and recoveryFraud monitoring, detection, analysis and reporting


System intrusions, monitoring, diagnosis and recovery.

Contractor shall supply the on-site staff to provide full time coverage of the RegionalCDCS during the operational shift. The operational shift will begin at 0600 hours andend at 2300 hours. Contractor shall provide details of the preparations they shall take toprevent any disruption of their operational support caused by a loss of trained andexperienced staff.

5.5 INTERFACES TO SYSTEMS

5.5.1 TAP Service Center Access to the Regional CDCS

The Regional TAP Service Center will have a critical interface with the Regional CDCSthat will provide Contractor s staff with access to the systems needed to process all ofthe customer initiated activity as well as answering questions by MT A and theParticipants.

MT A will provide Contractor with an API (see Appendix D) from the Regional CDCSSupplier to enable access to the Regional CDCS functions listed below. This is inaddition to the GUIs available to the TAP Service Center to access the Regional CDCS.Sample GUIs are available upon request from MT A. Contractor shall develop theinterface to the Regional CDCS systems using the Regional CDCS supplied API forinterfacing their systems such as, the IVR, Customer Web access and Employer BenefitProgram Management, to the functions provided by the Regional CDCS.

If any of the functions identified below have more than one entry or exit point, theconditions and data alternatives must be identified. The API will allow a signed-onsession to switch between the functions listed below.

The API will specify the process and the data for session authentication and closure andprovide sufficient data field specifications and condition fields for each function.

The interface employing the API for web-based services shall be document as (CDRL22) "Internet-based Services Design.

The key functions of the web-based application will allow customer service agentsemployers, organizations, and customers to:

Order TAP cards, with options to register them and select Autoload at the sametimeView recent financial transactions associated with customer-designated credit ordebit cardsView most recent TAP uses and value loads


Update account informationSelect or de-select account options (including method of statement delivery, forwhich customers may select web-based display or e-mail)Select method of confirmation of account changes (web-based display or e-mail)Make payment for purchases and Autoloads (both "one-off" value loads andrecurring Autoloads).

Customers shall be provided confirmations of each change made to their accountinformation and options. Contractor shall propose the most effective method ofsupplying the confirmation (a system of unique confirmation numbers as used inreservations systems would be acceptable).

The key functions of the employer web based application will allow employers to:

Add or delete cardholders to the employer-based program (e.g. , transit benefitsprogram)Change a cardholder s fare payment optionChange the amount of an employer s subsidyHotlist designated cards to prevent further use of the TAP card in the case of achange in a cardholder s employment or subsidy status.

Contractor shall provide additional systems and hardware that may require an interfaceto the Regional CDCS, including but not limited to, call routing software, IVR and theRegional TAP Service Center Website. However, many of the functions that shall beperformed by the Regional TAP Customer Service staff require Contractor to interfacedirectly to the Regional CDCS. Contractor shall work with MT A and the RegionalCDCS supplier to develop the secure web based interface.

5.5.2 Public Access to the Regional CDCS

For security reasons, the public web based access to the data and functions at theRegional CDCS (i.e. registering for Autoload) must be on a separate web server fromthe one used by the Contractor staff at the TAP Service Center. Contractor shall providethis web access and a design that demonstrates a strong resilience to hacking and adenial-of-service attack.

5.5.3 E-mail Service

The Regional TAP Service Center website(s) shall each have an email service forreceiving and sending email messages,


Contractor shall provide and host an email service that can extract, within specificcustomer profiles, the corresponding email addresses and cardholder information fromthe Regional CDCS master database and send individual or form-letter emails.

FILE TRANSMISSIONS

File transmissions between the Regional TAP Service Center and the Regional CDCS(such as Automated Clearing House (ACH) files) are critical to the daily operation ofthe system and shall be facilitated by the use of the Virtual Private Networks (VPNs).As the cost of the data transmission between the Regional CDCS and the TAP ServiceCenter is borne by the TAP Service Center the Contractor can suggest other securetransmission services that meet the performance and security requirements. Workingwith the Regional CDCS Supplier, Contractor shall identify the process andconfiguration of a token-based identification and authentication system for all dataaccess and exchange between the TAP Service Center and the Regional CDCS.

SYSTEM CONFIGURA nON MANAGEMENT

Contractor shall establish a formal Configuration Management process for handling allTAP Service Center system changes over the course of the contract

Changes will originate in several systems:

TAP Service CenterRegional CDCSMT A CDCS

Contractor shall participate in TAP system-wide integration testing for any changedetermined to affect Contractor s system.

Changes shall include but not be limited to any of the following whether identified bythe MT A or by Contractor:

Fixes: corrections of malfunctions ("bugs ) that are required in order to meetperformance and functional requirements as specified in the Scope of WorkUpdates: new software releases provided by Contractor, whether for applicationsoftware, operating system software, or third-party softwareRegional CDCS Updates: new software releases provided by Regional CDCSSupplier that necessitate validation and/ or retest of Contractor provided systemsEnhancements: changes that provide improvement in the operationModifications: changes necessitated by program changesUpgrades: augmentation and/ or replacement of any system hardware


Documentation revisions: updates to instructional documents or users l guides to

reflect modifications to any existing software or other changes to the RegionalTAP Service Center systems I functionality

The Configuration Management process shall include a strict testing procedure to befollowed before any system change is implemented in production. This testing processshall include reporting of results to MTA and acceptance of test results by MTA toverify successful completion before implementation.

The Configuration Management process shall include a plan for implementing-on ascheduled basis as appropriate (e.g. monthly)-system changes that incorporate allcategories explained above. This process shall include a means by which all systemchanges are prioritized and scheduled for these regular releases. This process shallinclude provisions for more frequent interim releases when events necessitate asdetermined by Contractor and/ or by MT A. A Daily Changes Log report shall berequired from Contractor as part of the Configuration Management process.

SYSTEMS ADMINISTRATION

System and Data Security

Contractor shall provide for all aspects of TAP Service Center system security,including current and archived data security and unwanted data disposal. CDRL 9Data Security.Contractor shall describe how ~ystem communications, programs, and data shall beprotected, how access and other security arrangements shall be monitored, and howContractor shall protect customer data from unauthorized disclosure and use.

8.2 System Backup and Archiving

Contractor shall be responsible for all data in all formats stored at the Regional TAPService Center. Contractor shall provide the ability to store and recall the data from anyday for a period of seven years. Contractor shall provide for the removal anddestruction of all data at the end of its useful life. The timing and the methods for theremoval and destruction of data will be provided to the Contractor in the Audit Reportdetailed in Section 9.

Control for Internal and External System Access

Contractor shall be solely responsible for controlling all access to the Regional TAPService Center systems. The system design shall provide for user and system security.Contractor staff and Participants shall only have access to data and/ or functionsconsistent with their assigned level of authority. Access to systems shall be controlled


by an identification/ authentication physical security token with a user identificationand password. Contractor shall administer computer access accounts (token, log onidentifications and passwords), access controls, network controls, maintainconfidentiality of information, track security violations, provide local and remote accesscontrols and segregate functions within Contractor s facilities.

Contractor shall utilize physical security tokens and access control software to provideprotection for direct and remote access, call back for remote access, and violation andactivity reporting capabilities. The internal security system shall monitor, based on theuser s token, ID, and password, what level of user programs, database files, andmaintenance files are accessed. Appropriate security measures shall be built intosystems to prevent unauthorized access, identify, and track any instances in whichaccess has been denied. In such an event, a message shall be generated and storedindicating the time, date, location, and the identification of the equipment, software, orfile to which access was denied.

Contractor shall ensure that it is not possible to access internal TAP systems, includingthe Regional CDCS, via the Regional TAP Service Center Website. Contractor shall usea separate web server to host the Regional TAP Service Center Website. The web servershall have no connectivity to the web-based interface to the Regional CDCS.


FACILITY OPERATIONS

Contractor shall provide all facilities for housing customer service staff and systemsrequired to operate the Regional TAP Service Center. The term "Contractor shallprovide all facilities" is used to express the MT A' s requirement that neither they nor theParticipants shall provide any staff, real estate, office space, office or computer ornetwork equipment or services to the Contractor.

The Regional CDCS will be housed at an MTA facility.

It is preferable, though not required for Contractor s facilities to be located in theGreater Los Angeles Area and but not be limited to shall be located in the US.Contractor shall provide an additional secure storage area containing TAP card stockseparate from the main inventory location for Disaster Recovery.

REGIONAL CDCS HOUSING (OPTION)

Contractor shall describe the optional capability of housing the Regional CDCS.Contractor shall include a migration plan that addresses the transfer of the RegionalCDCS already operational and housed at an MT A facility in Los Angeles to Contractoroperations.

PHYSICAL SECURITY

Contractor shall provide for security and reliability of their facilities, Contractor shallprovide the appropriate physical site access controls, environmental controls, datasecurity, and inventory security to safeguard their operations. This includes any MT assets Contractor may be in possession of for providing the services described in thisRFP (e.g. CPOS units). Security methods may include, but are not limited to, a card keyaccess system, security cameras, alarm systems, and security guards.

Common work areas shall be separated from inventory storage areas. Access toinventory areas shall be controlled. Contractor shall establish authorization andapproval controls for TAP card distribution. Contractor shall take necessary measuresto limit the risks associated with TAP card delivery through the mail or commoncarners.

Contractor shall maintain normal business hours for five days per week for businessoperation and management of the TAP Service Center. Specific hours for other rolessuch as Customer Service Representatives shall be as required to meet performance andservice levels described in other sections of this Scope of Work.


STAFFING PLAN

Contractor shall submit a Staffing Plan (CDRL 23) for MT A to approve, both initiallyand annually thereafter. The plan shall include organization charts and job descriptionsby position for all Regional TAP Service Center operations staff. Contractor shallsubmit ADA-compliant position descriptions for each position.

Contractor shall identify personnel policy for both permanent and temporary personnelof the Regional TAP Service Center. Contractor shall perform annual performanceevaluations for full-time permanent personnel.

Contractor shall provide for personnel security as appropriate. Staff who performfunctions such as customer account management, computer operations, and data entryshall either be bonded or have some other form of insurance or indemnificationacceptable to MT A.

Contractor shall list personnel by title, the staff that shall be bonded or required to carrysome other form of insurance, along with the type of insurance and the dollar limits ofthe coverage.


REGIONAL TAP SERVICE CENTER MANAGEMENT ANDADMINISTRATION

QUALITY ASSURANCE

Contractor shall establish a quality assurance program that shall include, but not belimited to:

The prevention, notification and detection of systematic problems that may affectcustomersThe avoidance and elimination of any security breaches within Contractoroperations.

Contractor shall detect and correct deviations from any performance requirements andreport such to MT A.

Contractor shall document their Quality Assurance program in (CDRL 24) "QualityAssurance Program Plan." Contractor shall ensure that corrective action is taken assoon as possible and that notification is timely. Operating procedures, lines ofauthority, and methods of communication shall be established and documented.

7.2 CONTRACT ADMINISTRATION

The Statement of Work for the TAP Regional Service Center will be administered by theMTA on behalf of all Participants in the TAP program.

7.3 REPORTING

Contractor shall submit a final design format for all reports, financial, non-financial, andmanagement information, to the MT A for approval. Contractor shall provide thefollowing submittals outlining report format and layout to MT A for approval. Requiredreport submittals include:

Financial Report Formats" (CDRL 25)T AP Non-Financial Report Formats" (CDRL 26)

" TAP Management Information Report Formats" (CDRL 27)

Contractor s Regional TAP Service Center reports shall be run from the Regional CDCSData Warehouse. The Regional CDCS Data Warehouse will be provided by theRegional CDCS Supplier. Using MT A provided Hummingbird Report tool runningagainst the Regional CDCS Data Warehouse, Contractor shall provide for system-generated reports that are automatically produced, printed and distributed using


available COTS reporting software. Contractor s Regional TAP Service Center staff areresponsible for, but not be limited to:a) Generating pre-programmed reports and ad-hoc reports

Performing ad-hoc queries of the Regional CDCS Data Warehouse and otherdatabases necessary to complete the analysis required for each of the reports

Analyzing data to criteria established by the Participants

Creating "linked-trip" reports - see 7.

Viewing reports and query results on a computer screen, download them to a filein common format and print them locally or emailing as requested.

Contractor s use of manual reporting techniques shall be minimized. Contractor shallmodify reports as directed by MT A. MT A reserves the right to require up to twentyadditional reports to those identified in this specification.

7.3. Linked Trip ReportsReports shall be automatically generated to provide for reporting of linked trips. Alinked trip is defined as the combination of individual boardings used by the same TAPcard across all modes of travel, from first to last transaction. Linked trips reports shallbe available for:

Total linked trips by ParticipantLinked trips by location of the first and last TAP transaction for each linked tripLinked trips by the time of the first and last TAP transaction for each linked tripLinked trips by origin and destination of the first and last TAP transaction for eachlinked trip


3.2 Card Base Management Reports

Contractor shall provide the Card Base Management reports documented in Figure 7., but not be limited to:

Figure 7. 1: Card Base Management Reports

Report Category Report Description Frequency AvailabilityTAP Card Base Number of TAP Applications Weekly Next business dayManagement Received Monthly 3 business days

Number of a lications acce ted Quarterly 5 business daysNumber of applications returned for Annually 5 business daysmore information and to 3 reasonsBacklog of applications to beprocessed, including numberbacklo ed and da s since recei tNames and account numbers of largecom an licantsNumber of individual andcommercial accounts 0 enedTotal number of accounts by accounttype, including individual vs.commercial, and with individual andcommercial accounts, number of TAPsmart cards issued to each.

Ad-hoc Card Base Queries and reports as requested by Daily Next business dayManagement Participants Weekly Next business dayReports Monthly 3 business days

Quarterly 5 business daysAnnuall 5 business da s


3.2 Customer Service Reports

Contractor shall provide the Customer Service reports documented in Figure 7. , butnot be limited to:

Figure 7. 2: Customer Service Reports

Report Category Report Description Frequency A vail a bility

TAP Customer Type and number of all customer Weekly Next business dayService - Customer complaints received by method Monthly 3 business daysComplaints (telephone, written, in-person), and Quarterly 5 business days

by subject (e. , rude service, incorrect Annually 5 business daysstatement) and resolution

TAP Customer Number of refunds to customers, Weekly Next business dayService - Customer value of refund, customer service Monthly 3 business daysRefunds representative responsible, reason for Quarterly 5 business days

refund Annually 5 business daysTAP Call Center Number of customer service calls Daily Next business daySpecific Reports (total, number handled by live Weekly Next business day

operator, number handled by Monthly 3 business daysautomated voice response system) Quarterly 5 business daysTop three reasons for customers Annually 5 business dayscallinRNumber and percent of customerservice calls not resolved on a firstcall basisNumber and percent of all customerservice calls handled by automatedvoice response system and durationof such calls; response time to pick upsuch callsCount of automated voice responsesystem menu options selected

menu branchNumber and percent of all customerservice calls requiring the support ofContractor personnel; duration of

such calls; response time to pick upsuch callsAverage on-hold time and maximumhold time for all calls receivedAbandon rate for voice responsesystem and customer servicerepresentatives after variable waits bycustomer in queue (e.g., 15 seconds,30 seconds)Number and description of customercalls to report problems using,buying, or reloading TAP cards-Participant specuac


Report Category Report Description Frequency Availability

Mail ProcessingActivity

TAP Website andService Center FaxProcessing ActivityReports

Ad-hoc CustomerService Reports

Percentage of calls handled (captureratePercentage of calls who select to usethe IVRs that are eventuallytransferred to an a entCalls handled er erson-hourPercent of representative s time spenton- hone

Number of pieces of outgoing mail by

Number of pieces of incoming mailby type (e.g., applications,replenishment payments, generalin uiries

Backlog of incoming mail/ inquiriesunresolved, if anTop three reasons for customerswritin and Avera e res onse time

Number of incoming customerqueries via fax, email or TAP Websiteform by type (e.g., applications,replenishment payments, generalin uiries

Backlog of incoming inquiries via faxemail or TAP Website formunresolved, if anTop three reasons for customerswritin and Avera e res onse time

Description of incidents when thephone system is not operational,within 24 hours of occurrenceincludin reason and time to re airCom laints er active card ratioCom laints and refund trendsType and number of customer servicetransactions (e.g., registration,Autoload, replacement, bankedmone

WeeklyMonthlyQuarterlyAnnually

WeeklyMonthlyQuarterlyAnnually

DailyWeeklyMonthlyQuarterlyAnnually

Next business day3 business days5 business days5 business days

Next business day3 business days5 business days5 business days

Next business dayNext business day3 business days5 business days5 business days


3 Distribution Management Reports

Contractor shall provide the Distribution Management reports documented in Figure, but not be limited to:

Figure 7. 3: Distribution Management Reports

TAP Card OrderProcessing

Report Category Report Description Frequency Availability

TAP CardInventoryManagement

TAP CardDistribution

Ad-hocDistribution

TAP cards orderedTAP cards received

Quantity of TAP cards remaining ininvento b Invento reconciliationTAP card returns b reasonCards returned to the manufacturerPercentage of TAP cards distributedwithin 48 hours of a Iication recei tTAP cards in circulation as result oftransit benefit programs

Problem cards re ortMethod of distribution re ortThird- ar vendor network re ortsTotal number of devices deployed,with percentage operational, andnetwork access availabiliTop five third-party vendor locationswith business name and address,based on sales volume.

MonthlyQuarterlyAnnuallMonthlyQuarterlyAnnually

DailyWeeklyMonthlyQuarterlyAnnuallDailyWeeklyMonthlyQuarterlyAnnually

3 business days5 business days5 business da s3 business days5 business days5 business days

Next business dayNext business day3 business days5 business days5 business da sNext business dayNext business day3 business days5 business days5 business days


3.4 TAP System Operations Reports

Contractor shall provide the TAP System Operation reports documented in Figure 7.but not be limited to:

Figure 7:3-4: TAP System Operation Reports

Report Category Report Description Frequency A vaiiabiIity

System Availability Average system availability Weekly Next business daypercentage to the end user Quarterly 3 business daysDistribution of time it takes for Annually 5 business dayscustomer service representatives toaccess Regional CDCS databases viathe secure web interfaceAverage system availabilitypercentage of on-line accountinformation and voice responsesystem

Ad-hoc System Timeliness of file transmissions Daily Next business dayReports Timeliness of transaction processing Weekly Next business day

Reports as needed for description of Monthly 3 business daysincidents when the computer system Quarterly 5 business daysis not operational, including reason, Annually 5 business daysand time to repair, within 24 hours ofoccurrence.

7.3.5 TAP Financial Management Reports

Contractor shall provide the Financial Management reports documented in Figure 7.but not be limited to:

Figure 7:3-5: TAP Financial Management Reports

Report Category Report Description Frequency A vailabiIitySettlement Activity TAP Service Center settlement Weekly Next business day

transactions Quarterly 3 business daysAnnually 5 business days

Ad-hoc Financial Timeliness of file transmissions Daily Next business dayReports Weekly 3 business days

Monthly 3 business daysQuarterly 5 business daysAnnually 5 business days


6 Other Reports

TAP Card Trip Origin and Destination Reports

Contractor shall provide daily, monthly and annual reports on origins and destinationsincluding intra-trip transfers, of trips taken with all TAP cards, whether the cards areanonymous or registered. The reports shall be created from the Regional CDCS DataWarehouse and made available to all TAP Participants. Participants will use thesereports for studying customer volumes and patterns (including system entries, existsand transfers) and for service planning. The reports shall not list specific cards ' activityor track travel history of individual customer, however, the Participants may requestaccess to this data later. Contractor shall also capture this origin and destination into arelational database that Contractor shall create and maintain, however, the Participantswill own this database and all versions of the data in it.

TAP Management Information and Research Analysis Reports

Contractor shall supply up to 1.5 full-time-equivalent (FTE) staff to work under thedirection of MT A for one year to develop the set of TAP Management Information andResearch Analysis Reports and provide as-requested research and analysis.

Contractor shall provide staff with appropriate educational background and years of

experience appropriate to conduct this type of reporting and analysis. The sameContractor staff shall have the appropriate technical skills to access, extract, modelanalyze, format and display the data stored at the Regional CDCS Data Warehouse.Data display shall be available simultaneously available in graphical form, for example,route maps, graphs, histograms, pie charts as well as lines of alpha-numeric displaycharacter form. The following list of information is, required, but not be limited to:

vi.

Executive Level Reports at Participant Level and Aggregated, Current Periodand Trend over days/ months/ years (five maximum)i. Top 10 (or other quantity) High/Low Lines based on customers carried11. Total Volume of Boardings by Lines/Station111. Performance (Trouble Tickets)IV. TAP Card Statistics:

Total Cards IssuedNew Cards IssuedCards Active in Last 10 DaysNumber of TAP Cards Inactive 30, 60, 90, 180 daysHigh/Low / Average Card Usage by day, week, month, year, card-life (4 years)

Complaints Received, Resolved, OutstandingDollar Claims Received, Resolved, Outstanding


Contractor s 1.5 FTE staff shall extract files of transaction level data from the RegionalCDCS Data Warehouse and provide each Participant the option to receive the data intothe Participants' own MIS data store.

11.

111.

Management Information Reportsi. Linked-trips - Requires rules for determining or inferring a link-trip

event. Rule definition and/ or selection shall be entered by Participantsvia a GUI report generatorTop 25 (or other quantity) Boarding and Destination PointsVolume by Line by Fare Type/Media

By Location

By Time of DayBy Day of WeekBy Groups of Lines

Full Revenue Reports by Participant by line - All fare collections, TAPmagnetic and cash

IV.

11.

Management Research Analysis Reportsi. Bus Passenger Full Trip - Requires trip inference and reverse engineeringto determine if there are patterns over several day s usage that candetermine the customer s probable trip start and end points from farecollection records that only record boarding information.Random Samples - Groups of TAP events to report characteristics of traveland use

Route/Bus Profitability - Fare revenue per mile111.


PERFORMANCE MONITORING

Contractor shall enable MT A to monitor the performance of the TAP Service Center byreporting on Key Performance Indicators (KPI) in clearly measurable terms usingautomated means. The following levels of performance shall be met and demonstratedthrough ongoing data capture and reporting.

Contractor shall provide a "Performance Monitoring Plan" (CDRL 28), containing theapproach, technology, and methods for capturing and recording the KPI metrics.Contractor shall provide "Performance Monitoring Reports" (CDRL 29) to describe theMonthly and Year-to-Date Performance Reports.

Contactor shall be prepared to successfully negotiate with the MT A to establish certainfinancial penalties on some of KPI.

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AUDITS

Contractor shall support and participate in, an annual SAS/70 Type II audit of theRegional CDCS and TAP Service Center, to validate accuracy of all systems processing,financial management, participant settlement and TAP Service Center and RegionalCDCS performance.

An external auditor shall be selected, organized and paid by the MT A. Contractor shallsupport all auditor requests, participate in both of the audit planning meetings, andbecome familiar with the audit processes. Contractor shall provide for the retention andstorage of all data and records that record events that generate data activity in the TAPsystem and services that they are supplying to the Participants and the Card Holders.Contractor will be advised in the Audit Report the time and the process for thedestruction of the data.The final approval for the destruction of any TAP data will be given by the MT

Participants will have the right to audit the performance of the TAP Service Center andany equipment, systems, databases and operations at any time, using eitherParticipants' internal audit staff or a third-party auditor or consultant retained by theParticipant. Contractor shall support any audit of the TAP Service Center required bya Participant. The cost of supporting these audits shall be paid by:

The Participant, if no problem is identified

Contractor, if a problem is identified with the product, service or functionsupplier and/ or perfonned by Contractor

At no time will Contractor be required to participate in more than three audits in a 12-month period.

Contractor shall bear the cost of addressing and resolving to MT A's satisfaction, theindependent audit findings for the first two years following the integration of both theMTA CDCS and the Regional CDCS with the TAP Service Center.


10. CONTINGENCY OPERATION AND DISASTER RECOVERY

Contractor shall provide a Business Continuity Plan (BCP) to enable the Regional TAPService Center to continue operations in the event of the loss of certain services,capabilities and connections, specifically:

Loss of electrical power for 1 hour, 4 ills, 12 ills and 2 daysLoss of the IVR for 1 hour, 4 ills, 12 ills and 2 daysWeb server performance degraded by 50%, 75% and 98%Loss of Web server for 1 hour, 4 ills, 12 ills and 2 daysLoss of link to the Regional CDCS for 1 hour, 4 ills, 12 ills and 2 daysLoss of link to ACH Processor for 2 daysLoss of 1-800 service for 1 hour, 4 ills, 12 ills and 2 daysLoss of the Regional TAP Service Center facility (e.g. fire or earthquake)

The operations required to be continuously run are but not be limited to, the following:

800 service

Bank transfers and depositsAccess to the Regional CDCS

Contractor shall provide a "Contingency Operation and Disaster Recovery Plan(CDRL 30) for the TAP Service Center. " The CDRL shall describe the following, but notbe limited to:

Limited or partial Customer Services that can be providedReceiving and holding customer applications and change requestsHandling and clearing the accumulated back-log of workValidating the system integrity when the grid power has been restoredValidating processes that were interrupted and had to be re-startedValidating the fe-connection of lost linksCommunicating status to Participants and the public

As part of this Scope of Work, Contractor shall operate to the approved ContingencyOperation Plan and approved Disaster Recovery plan should the need arise.


11. TRANSITION PLAN AND SUCCESSION

This section requires two plans that deal with start-up and conclusion of Contractorobligations under this Contract. The two plans are the Transition Plan and theSuccession Plan respectively.

11. TRANSITION PLAN

Contractor shall address the transition from existing operations that include MT Participants, and/ or Regional CDCS Service Provider operation of the TAP card systempre-Regional TAP Service Center" to the operation of the TAP Service Center as

specified in this Scope of Work.

The Transition Plan shall describe all activities required of Contractor and theParticipants during the Transition Period. The Transition Period shall be defined as theperiod during which operations and responsibilities transfer from the currentParticipant customer service centers to the TAP Regional Customer Service Center. TheTransition Plan shall clearly identify the nature and timing of any interaction with theParticipants and any other contractors, or consultants operating on their behalf. TheTransition Plan shall also delineate responsibilities of Contractor and the Participantsthroughout the transition period. The changeover to Contractor shall be seamless to thecustomer.

Contractor shall submit a final "Transition Plan" (CDRL 31) at least 90 days before thebeginning of the Transition Period. The Transition Plan shall be fully integrated withthe overall Program Management Plan.

The Transition Plan shall include:

Formation of a Transition TeamDetailed milestones and schedule for the Transition PeriodReview of existing operationsTransfer and disposal of equipmentAcquisition and installation of equipmentTransition from paper based media to smart card mediaStaff recruitment and trainingTesting and acceptanceCustomer communicationsContingency Plan in the event Contractor is not readyDetailed Cutover PlanEvaluation.


11. 1 Review of Existing Operations

Contractor shall identify which system hardware and software, office equipment, leasesand materials that will be retained by Contractor during the Transition. Members of theTransition Team will visit the existing operations and review materials to orientthemselves to the existing operational policies and procedures.

11.2 SUCCESSION PLAN

The initial TAP Service Center contract shall be for a minimum period of 5 (five) yearscommencing on the first day of production ready service to the TAP service users.Contractor shall provide a TAP Service Center Operation "Succession Plan" (CDRL 32),the purpose of which is to provide for continued operations in the event that theContract with Contractor is not renewed or is terminated for convenience, or thatContractor is declared in breach of Contract or has failed to meet the KPIs. The MT Aand Participants require that TAP Service Center Operations continue withoutinterruption under all circumstances.

The TAP Service Center Operation Succession Plan shall assume MT A and Participantunlimited use of all assets used for TAP Service Center Operations (e.g. computersystems, hardware and software) and for MTA's immediate/automatic right to assumeor use any other elements required for uninterrupted TAP Service Center functions (e.assignment of leases on facilities, Contractor-developed operating software andprograms). The TAP Service Center Operation Succession Plan shall include processes,procedures, costs and licensing agreements for transferring ownership of any elementof the TAP Service Center required for the operation of the TAP Service Center notowned by the MT A, including networks, computer equipment, software, data,databases, office equipment and leased facilities from Contractor to MT

The TAP Service Center Operation Succession Plan shall describe how Contractor s dataprocessing operations would continue under MT A's control; how all aspects ofCustomer service, including the TAP Web Site and TAP Call Center by the MTA or itsdesignated successor; and how account data would be turned over to MT A or itsdesignated successor. At a minimum, the plan shall cover the following areas:

Transfer of assets, including equipment, inventories of tags and other materialsand supplies

Transfer of all TAP data

Transfer of system hardware and software

Identification of any contractual agreements which are assumable by theParticipants, including but not limited to leases, maintenance agreements


Staffing and training required to actually accomplish the succession

Customer communication regarding changes in policy, procedures, and forms


12. TRAINING COURSES AND MANUALS

12. TRAINING COURSES

Contractor shall provide TAP program training courses and material for theParticipants and third-party vendors. Contractor training courses shall be modularallowing the Participants to "mix-and-match" courses as needed over the duration ofthe Contract. Contractor shall document these training requirements and the schedulenecessary to prepare Contractor personnel for use Regional TAP Service Center ofequipment and systems in (CDRL 33) II Training Program Plan.

Contractor shall deliver the Participant training (management and staff) in classroomsettings using manuals, documentation and handouts that the students can take fromthe course for reference. The maximum size of a class shall not exceed 20 students.Contractor shall submit a "Training Schedule" (CDRL 34) that addresses the trainingdelivery for each of the required courses in this section. Participants shall have the rightto observe and monitor all Contractor training sessions.

Contractor shall provide training for, but not be limited to:Participant Senior Management

Participant TAP Program Management staff

Other Participant staff (e.g. Finance, Marketing, Customer Service)

. Third-Party Vendors

Contractor Regional TAP Service Center staff

Additional personnel who interact with Contractor, as requested by the MT A

The allocation of training hours shall be refined after Contract award, howeverContractor shall prepare to provide the non-Contractor personnel training, illustrated inFigure 12. , but not be limited to:

Figure 12.1-1: Expected Training Requirements

Expected Course Length Number of CoursesInitial On-going


12. 1 Participant Senior Management Training

Contractor shall provide training for Participant Senior Management that includes, butis not limited to, an overview of the TAP system and provide a comprehensiveoperational understanding of both the TAP Service Center and the Regional CDCS.Contractor shall work with MT A to schedule the sessions for Participant SeniorManagement Training.

12.1.2 Participant TAP Program Management Staff Training

Training for the Participant Program staff shall provide detailed orientation of theprocesses used by the TAP Service Center and at the Regional CDCS in support of theParticipants' programs, including, but not limited to:

. TAP reporting and data analysis

. TAP device monitoring

. TAP card distribution

Administering employer/employee transit benefits.

MT A may request additional Participant TAP Program Management training sessionsat any time during the term of the Contract.

12. 3 Other Participant Staff Training

Contractor shall provide training for other Participant staff, including, but not limitedto:

Customer Service

Marketing

Finance

This training shall address, but not be limited to, the overlaps and business processinterfaces between Contractor s activities and the relevant activities of the Participantstaff department. In addition, Contractor shall include the TAP Program overviewtraining for these staff members as well.

12.1.4 Third-Party Vendor Training

Contractor shall train third-party vendors on the operation of the CPOS units and theprocedures for distributing and loading TAP cards. Contractor staff shall demonstratethe use of the CPOS unit and provide a "step-by-step" walkthrough for CPOS


installation, set-up and use with each third-party vendor. In addition, Contractor shalloffer training or reference material for vendors to aide in dealing with customers whohave questions regarding the TAP program. These materials shall include, but not belimited to, up-to-date TAP program customer education materials and a completetelephone list of relevant TAP program phone numbers.

12.1.5 Contractor Regional TAP Service Center Staff Training

Contractor shall train their own staff to meet all the functional and performancerequirements of this Scope of Work. Where appropriate, simulated customerinteraction, role-playing, and sensitivity training shall be used in the training ofcustomer service representatives.

Contractor shall make staff available to attend classroom-training sessions on theoperation of the Regional CDCS conducted by the Regional CDCS Supplier. Contractorshall attend the following Regional CDCS training courses, but not be limited to:

Systems Management (2 day course)

Graphical User Interfaces (2 day course)

Reporting (1 day course)

The training should include evaluation criteria and procedures for determining thatintended training has been completed successfully. For example, the telephone-basedservice plan should include provisions for listening to and recording calls for trainingand disciplinary purposes.

12. TRAINING MANUALS

Contractor shall develop and supply the training curriculum, guides and referencematerial to be included in the training manual for each course. Contractor shall provide

a training manual content outline for each course developed to MT A for approval(CDRL 35) " Training Manual Content" Contractor submittal shall include thefollowing information, but not be limited to:

Course subject

Course outline

Course materials to be developed

Time frames for preparing the courses

Qualifications of training course Instructors

Training session times, duration location.


Contractor shall submit a "Training Manuals Schedule" (CDRL 36) that lists all manualsthat Contractor is required to create and update, the frequency with which each manualis to be updated and the date on which each manual was last updated. The finaltraining manual for each class shall be provided to MT A for approval, a minimum of 30days before conducting the training.


13. STATEMENT OF WORK DATA REQUIREMENTS LIST (CDRLS)

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CDR PDR FDR Other

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Policies and Procedures Manual

..---,...--.... .-.'.....-'.'----..,.---...-,.---...... -'_..,..'.._-,--,-.. -----,_.., ,-,._,--, ....-..-., '....--.., ..,..,-..-......-.,-...-...,.--.........-....,........,.......,.-,..,..,......!~,_.. ~..~~,

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Card Holder Internet Access15 Service 3.4.5X

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TAP Service Cost Allocation and

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System Functions and Interfaces20 Overview 5.

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25 Financial Reports Format 7.

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TAP Non-Financial Report26 Format 7.

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COR POR FOR Other

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Transition Plan 11.

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TraininR Manual Schedule 12.


APPENDICES

Appendix AAppendix B

Appendix CAppendix DAppendix E

Sample Vendor AgreementRegional CDCS ReportsImmediate Needs Transportation Program (INTP)Regional CDCS API SpecificationMPOS and CPOS Specifications

As some of the appendices contain proprietary Cubic Transportation Servicesinformation they will be provided only after the reader has entered into a NonDisclosure Agreement with Cubic Transportation Services.