Project Profile: Massachusetts Automated Fare Collection System, Boston, Massachusetts

Massachusetts Automated Fare Collection System

Boston, Massachusetts

Massachusetts Bay Transportation Authority, Boston AFC 2.0 OpCo LLC (Cubic Transportation Systems, John Laing)

Special Assessment, Dedicated Sales Tax & Dedicated Local Assessment

Multimodal (passenger rail and bus)

To provide a seamless commute experience with a modernized contactless payment system, Cubic Transportation Systems and the Massachusetts Bay Transportation Authority (MBTA) partnered to implement an Automated Fare Collection (AFC) system for transit riders and commuters.

The new AFC system replaced the MBTA’s current CharlieTicket/CharlieCard fare collections system to provide for an integrated, reliable, and convenient fare payment and collection system, enabling transit riders to pay fares by tapping contactless bank cards, mobile phones, and fare cards across the entire transportation network.
Some additional benefits include:

• More payment options ranging from mobile payments, contactless debit or credit cards, and agency-issued fare media;
• Zone and distance-based fares, time of day fares, and fare capping;
• Shorter wait times for bus boarding; and
• Unified fare transfers across all MBTA modes of transportation.

The program will be addressed in five phases, with each phase starting at the beginning of each calendar year, completing in 2024.

• Phase 1 - Addressing key issues with previous fare collection system
• Phase 2 - Making it easier for consumers to obtain a CharlieCard
• Phase 3 - Introducing and implementing new AFC and bus and train boarding strategies
• Phase 4 - Implementing faster trip times, buses, and Green Line trains due to AFC
• Phase 5 - Achieving uniform AFC method between all MBTA modes of transportation

With the project complete, cash will be removed from on-board buses, Green Line trains, and commuter rail, and will enable integrations with other transit services (like parking, paratransit, bike share, ride share, and Regional Transit Authorities). The new system will have fully reconciled, auditable, and accurate revenue deposits and reports, and provide improved uptime and performance under performance-based contracts.

$935.4 million, including both the full capital cost of the system and a ten-year stream of operations and maintenance payments.

• $723.3 million for the capital cost and a reduced ten-year stream of $212.1 million in operations and maintenance payments, for a total of $935.4 million

Availability Payment (Dedicated Sales Tax & Dedicated Local Assessment)

• $27.00M Equity: John Laing $24.3M & CUBIC $2.7M
• $437.42MSenior Security Facility, Boston AFC 2.0 OpCo LLC
  • $ 246.80M Senior Security Facility; 7-year term loan and
  • $174.80M Senior Security Facility; 4-year term loan*
  • $ 15.82M Letter of Credit, 7-year term

* The SCF is repaid following construction by a MBTA milestone payment

Design-Build-Finance-Operate-Maintain P3 procurement model; 13-year Availability Payment concession for the exclusive right to design-implement-finance-operate-maintain a new automated fare collection system for the Massachusetts Bay Transportation

Boston AFC 2.0 OpCo LLC

• Cubic Transportation Systems
• John Laing

• Canadian Imperial Bank of Commerce (CIBC)
• Metropolitan Life Insurance Company (METLIFE)
• Mitsubishi UFJ Financial Group (MUFG & BTMU)
• National Bank of Canada (NBC / NBF)
• Pensionskasse des Bundes PUBLICA
• Sumitomo Mitsui Banking Corporation (SMBC)

On June 15, 2020, the MBTA and the Cubic | John Laing Consortium finalized the contract amendment memorializing the terms and conditions necessary to fulfill the direction and authorization provided by the Fiscal and Management Control Board on April 27, 2020. The project is anticipated to be complete by 2024.

The amended contract totals $935.4 million, including both the full capital cost of the system and a ten-year stream of operations and maintenance payments. Although this represents an increase of $212.1 million in project costs compared to the contract approved in 2018, the new fare collection system remains cost-effective and is projected to collect over $8 billion in fare revenue during its first ten years of operation.

• Better customer experience: Making paying for transit easier and more convenient via contactless credit and debit card payment options; Digital fare readers at all vehicle doors for faster boarding; More fare vending machines in more locations and other ways to replenish CharlieCards including retailers near where riders live and travel, online, over the phone, through employers and schools, and more.
• Focus on core operations: Removing on-board cash from buses, Green Line trains, and Commuter Rail by supporting more options for customers to pay before they board. Integrating ferries and the entire commuter rail network into the CharlieCard system. Vehicles will complete routes faster (by up to 10 percent according to some estimates).
• Support for the future MBTA: Enabling future flexibility for fare policy innovation and integrations with other transit services and modes of transport.
• Equal access: Offering expanded language support and accessibility improvements for seniors and people with disabilities.
• Improved revenue control: Delivering fully reconciled, auditable and accurate revenue deposits and reports, and controlling fare evasion.
• Upgraded assets: Replacing worn equipment and improving system uptime and performance under performance-based contract.
• Innovative Project Delivery-P3 Availability Payment: Pay-for-performance contract gives MBTA leverage to enforce system requirements, giving it some protection against technology obsolescence, a key concern in a long-term contract. Milestone and monthly availability payments begin only after acceptance, and up to 50% of payments can be withheld by MBTA in the event of poor system performance, including the work of subcontractors. Cubic/Laing will have the opportunity to earn back 75% of deductions by providing "exceptional service."
• Cost savings predicted during the initial 10-year operational phase to 2031 include:
• Cashless boarding is predicted to reduce bus stop dwell times by 25%, and increase bus speeds by 10%.
• Lifecycle savings to MBTA of $65 million over 10 years,
• Fare evasion savings of $35 million over that time.

• Businesswire - Cubic and Boston MBTA Announce New Agreement for Delivery of Next-Generation Fare Payment System
• MBTA - Fare Transformation Project Timeline
• MBTA - What is Fare Transformation?
• MBTA - Fare Transformation Update

Adam Veneziano
Director of Fare Systems
Charlie@mbta.com