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Identification

Reference Number: 22041971
Request ID:18-000000108679
Date First Offered01/31/2018
Title:THA - 18-0026 Merchant Card Services

Agency Reference Number:THA - 18-000000108679
Agency:THA - Toll Highway Authority
Purchasing Agency:THA - Toll Highway Authority
Purchasing Agency SPO:Victoria Santiago

Status: Closed

Overview

Description and Specifications:
The Illinois Toll Highway is seeking a sole source contract with Vantiv LLC.

The Tollway currently accepts VISA, MasterCard, Discover Card, and American Express as methods of payment for its I-PASS and Violation programs. The Tollway's current sole source with Vantiv LLC expires 05/31/2018. After a new RFP, a competitively bid contract was entered into with a new merchant card processor (First Data) on 11/14/2017. The sole economically feasible source procurement with the current card processor now being requested allows for these services to continue while the extensive transition to the new card processor is thoroughly tested and successfully implemented.

This sole economically feasible source request with the current vendor, Vantiv LLC, will allow the Tollway to have time required to transition and onboard the new merchant card processor. The new term of up to 13 months includes time for ongoing development, implementation of equipment, and testing of the new card processor with the Tollway’s back-office system and with the new ATPMs.

A hearing is scheduled for 2:00 p.m. on Wednesday, March 7, 2018 at the Stratton Office Building, 401 S. Spring St., Room 511, Springfield, IL 62706. Call-in information for those unable to attend in person will be provided upon request.

Interested parties wishing to request a hearing or submit comments must do so in writing and submit their request to the notice contact. Request for a public hearing by an interested party or written comments shall be made by Friday, March 2, 2018 at 5:00 p.m. to:

Dianne Richman
712 Stratton Office Building
401 S. Spring Street
Springfield, Il 62706
E-mail: Dianne.Richman@illinois.gov
Phone: 217-558-6897
Fax: 217-558-1399

The hearing will be cancelled, unless an interested party submits a written request for public hearing by Friday, March 2, 2018 at 5:00 p.m. to the notice contact listed above.

If a public hearing is requested, the purchasing agency shall present testimony justifying the procurement method. Any interested party may present testimony for or against the sole source determination as described in this notice. The purpose of the hearing will be to receive information from the public regarding whether a sole source award is appropriate and in accordance with the Illinois Procurement Code. Formal rules of evidence will not apply. Hearings may be recorded in order to aid in the production of minutes. Parties may submit written comments in lieu of attending the hearing. Written comments will be afforded the same weight as oral comments received at the hearing.

After consideration of the testimony, the Chief Procurement Officer may approve the purchasing agency's request to contract by the sole source procurement method.

Key Information

Notice Type:Sole Economically Feasible Source
Notice Stage:
Hearing Notice of Decision Upheld

Published:02/20/2018
Notice Expiration Date:03/20/2018
Sole Source Only Justification:On 12/01/2011, the Tollway entered into a competitively bid contract with Vantiv via an RFP, and that contract totaled $85 million when it ended on 11/30/2016. In 2015, the Tollway began migrating to a new I-PASS and Violation processing back-office system. Due to the complexity and the impact on implementing this migration with Vantiv, an 18-month sole economically feasible source contract was entered into on 12/01/2016 (expiring 05/31/2018). This allowed the Tollway to properly develop, integrate, set up, and test merchant card functionality with the new back-office system. While this was happening, the Tollway was able to issue a new RFP for merchant card processing services in August 2016. This led to First Data being chosen as the new merchant card processor in March 2017. In April 2017, Vantiv protested the contract award to First Data. Vantiv also informed the Tollway that the current processing platform being used would be removed effective May 2018. If the Tollway wanted to continue to use Vantiv during the conversion to First Data, they would need to complete system development and move to a new platform. The Tollway entered into protracted discussions to see if Vantiv would continue to allow the current platform retirement date to be extended. This effort was not successful.

In May 2017, the Tollway began contract negotiations with First Data. A final contract was fully executed on 11/14/2017. The negotiation was extended due to modification of First Data's boilerplate Merchant Services Agreement language. The Tollway needed to make sure this language was not in conflict with other agreements currently in force. The new contract also needed to contain an ATPM gateway addendum. (The original ATPM document was written to interface solely with Vantiv.) During this contract negotiation process, the vendor maintaining the back-office system could only enter into high-level development discussions with the new merchant card processor. First Data would not assign an implementation manager until the contract documents were signed. Upon signature in November 2017, the back-office provider began developing a proof of concept to note what changes would need to be made to integrate the ATS system (I-PASS and Violation processing) with First Data. The Tollway will need to convert the current 400-plus pin pads to First Data's proprietary network, untokenize and retokenize over 5 million credit cards of I-PASS accountholders on file, reconfigure the back-office system (including the payment website), account for the merchant processing busy holiday period (no testing available November through January), all while maintaining Payment Card Industry (“PCI”) Data Security Standards (“DSS”) compliance. Each step noted above will need to be developed and tested extensively prior to implementation. The Tollway cannot allow customers' credit card numbers to be compromised.

With the estimated time to accomplish the First Data integration, it was decided to have the current Vantiv platform converted (date of completion April 2019) and request this new term of up to 13 months sole economically feasible source contract with Vantiv. This would ensure First Data is securely implemented with the Tollway's back-office system. Credit card processing is the Tollway’s biggest security risk, as well as the primary mechanism of revenue collection. Rushing the new card processor's implementation, build, and test processes would put the Tollway at risk of compromising its main revenue stream. In addition, the Tollway is continuing to implement ATPM machines in the lanes that are already being processed through the new card processor.

Invoice payment to Vantiv includes pass-through costs from VISA, MasterCard, and Discover which is made up of interchange and other associated fees. These pass-through costs, which would be maintained regardless of the card processing vendor, make up approximately 94% of the value of this sole source request.
Accordance with Admin Rule:< Compatibility of equipment, accessory, parts, or service is paramount consideration

Professional & Artistic:No
Small Business Set-Aside:No

Does this solicitation contain a BEP or DBE requirement?:Yes

Does this solicitation contain a Veteran requirement?:No

Relevant Category:General Services

Total Amount of Award:$32,000,000.00 (Total Dollar Value Only/Includes Any Renewal Options)
Estimated/Actual Value Description:
Length of Initial Term:13
Contract Begin Date:04/01/2018
Contract End Date:04/30/2019
Renewal Terms:0

Bidder(s)


Number of Responding Bidders:0
Number of Unsuccessful Bidders:0
Total Number Awarded:0

Listing of All Bidders/Offerors Considered But Not Selected:
N/A
Source Selection:N/A

Vendor(s) Selected for Award
Vendor NameAmount of Award BEP Goal % DBE Goal %
VANTIV LLC$32,000,000.000%0%

Notice Contact
Name: Dianne Richman
Street Address:712 Stratton Office Building
401 S. Spring Street
City:Springfield
State:IL
Zip Code:62706
Phone: 217-558-6897
Fax Number:217-558-1399
EMail Address:Dianne.Richman@illinois.gov

Class Code

Class Codes:

NIGP Code

NIGP Commodity/Service Code:204 00 COMPUTER HARDWARE AND PERIPHERALS - All
208 00 COMPUTER SOFTWARE FOR MICROCOMPUTERS - All
209 00 COMPUTER SOFTWARE FOR MINI AND MAINFRAME - All
939 00 EQUIPMENT MAINTENANCE AND REPAIR SERVICES FOR COMPUTERS; - ...


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