|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.