Award

cEMV Middle and Transitional Back Office Agreement

TRANSPORT FOR GREATER MANCHESTER

This public procurement record has 2 releases in its history.

Award

10 Sep 2024 at 16:57

Award

20 Apr 2022 at 18:03

Summary of the contracting process

Transport for Greater Manchester (TfGM) has awarded a contract to Vix Technology (UK) Ltd for a cEMV Middle and Transitional Back Office Agreement. The procurement exercise began in May 2022, culminating in the awarding of a 2-year contract, with two options for twelve-month extensions, totalling £5.35 million. This contract aims to provide a middle and back office system to manage contactless bank card transactions across Greater Manchester’s transport network. The procurement is in the Award stage and will allow for a smooth transition to a new Contactless Bankcard Middle and Back Office (CBMBO) service, expected to commence competitive bidding in October 2024. The current contract will be extended to ensure seamless service until June 2027, supporting TfGM’s rail pilot scheme in Greater Manchester.

This tender is a lucrative opportunity for businesses in the software development and transport service sectors, particularly those with expertise in secure, industry-specific software packages and contactless payment systems. SMEs and large enterprises that can offer scalable, reliable middle and back office solutions to maintain and improve TfGM’s contactless ticketing options will find this contract key to expanding their portfolio. Businesses capable of working within highly regulated environments, ensuring the protection of consumer bank card data while maintaining service quality, will be well-suited to compete for the upcoming CBMBO procurement.

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Notice Title

cEMV Middle and Transitional Back Office Agreement

Notice Description

Following a procurement exercise in May 2022, Vix Technology (UK) Ltd (Vix) were awarded a 2-year contract (with two options to extend the agreement by a further twelve months) to provide TfGM with a middle and back office service to process contactless bankcard transactions in conjunction with Field Equipment infrastructure and TfGM's Merchant Acquirer, and accordance with the transit rules that are set by the relevant card schemes. Information on this contract can be found on Contracts Finder: Agreement for a cEMV Middle and Transitional Back Office System Service - Find a Tender https://www.find-tender.service.gov.uk/Notice/010330-2022?origin=SearchResults&p=1 A Prior Information Notice (PIN) has been issued by TfGM in relation to the procurement of a Contactless Bankcard Middle and Back Office (CBMBO) service. This notice sets out the anticipated scope of the Contactless Bankcard Middle and Back Office as a replacement to current cEMV Middle and Transitional Back Office and the proposed timing of the procurement . It is anticipated that the proposed procurement will follow the Open Procedure and issue of a call-for competition during October 2024. A copy of this notice may be accessed on Contracts Finder by activating the following link: https://www.find-tender.service.gov.uk/Notice/028525-2024 Whilst TfGM are proposing to initiate the procurement of a Contactless Bankcard Middle and Back Office, its considered necessary to enter into a new agreement (until 30th June 2027) in respect of an extension to the current cEMV Middle and Transitional Back Office service with Vix Technology (UK) Ltd. This notice provides transparency around the reasons for this single source requirement, alongside the procurement of the new Contactless Bankcard Middle and Back Office. The decision to enter into a new contract with Vix Technology (UK) Ltd is necessary for the following reasons: * Although TfGM has initiated a procurement exercise for a Contactless Bankcard Middle and Back Office contract, any transitional arrangements that may be required in order to on-board the new service is likely to need to be progressed in tranches so as to minimise the impact on customer experience and service before, during and after transition to a new contract. Transitional arrangements will need to reflect that the services in question are complex and require the protection of consumer bankcard data and as a consequence are highly regulated, Maintaining the cEMV Middle and Back Office contract until June 2027 will enable Tenderers that are participating in the Contactless Bankcard Middle and Back Office (CBMBO) procurement to consider a phased approach to the implementation of their services; * TfGM is committed to implement a Rail pilot scheme that is expected to require initiation before the current cEMV Middle and Back Office expires and would require migration to the new Contactless Bankcard Middle and Back Office agreement, once awarded. To minimise the impact on customer experience and service, TfGM proposes that its Rail pilot scheme in Greater Manchester will be supported by the current cEMV Middle and Back Office contract until such a time as the scheme may be migrated (as a final stage of transition) to the new Contactless Middle and Back Office Agreement. Although the additional services were not included in the original procurement, a change in contractor at this stage would cause significant disruption and cannot be made for economic and technical reasons, as there is a significant risk of disruption to the operation of light rail, bus and Rail pilot services in Greater Manchester, including the risk of disrupting the customer experience and service to the travelling public.

Lot Information

Lot 1

The services provided under the proposed contract include the operation and maintenance of the current TfGM cEMV Middle and Transitional Back Office for further period of 2 years and one month (following expiry of the option to extend the current agreement in May 2025) during which the procurement of a new Contactless Bankcard Middle and Back Office contract may be progressed and transitional arrangements to migrate to the new service may be executed.

Options: The agreement includes two options to extend the agreement in each case for a further 12 months, and is scalable to meet potential future contactless ticketing requirements. The scaleable nature of the agreement allows TfGM to exercise four separate options, when required.

Procurement Information

Although the additional services were not included in the original procurement, a change in contractor without proper consideration of the transitional arrangements to a new contract and service has the potential to cause significant disruption and cannot be made for economic and technical reasons, as there is a significant risk of disruption to the customer experience and service for the travelling public in Greater Manchester, including customer purchasing and payments for fares and ticketing products. The proposed contract allows for maintenance and continued operation of the current service provision during which the procurement of the Contactless Bankcard Middle and Back Office and Platform Validator Agreements may be progressed, with co-termination of both agreements and transitional arrangements planned and executed.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-032ef7
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/029013-2024
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

48 - Software package and information systems


CPV Codes

48100000 - Industry specific software package

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£5,350,000 £1M-£10M

Notice Dates

Publication Date
10 Sep 20241 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
19 Apr 20223 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
TRANSPORT FOR GREATER MANCHESTER
Contact Name
Mr Julian Benson
Contact Email
julian.benson@tfgm.com, procurement@tfgm.com
Contact Phone
+44 1612441158

Buyer Location

Locality
MANCHESTER
Postcode
M1 3BG
Post Town
Manchester
Country
England

Major Region (ITL 1)
TLD North West (England)
Basic Region (ITL 2)
TLD3 Greater Manchester
Small Region (ITL 3)
TLD33 Manchester
Delivery Location
TLD3 Greater Manchester

Local Authority
Manchester
Electoral Ward
Piccadilly
Westminster Constituency
Manchester Central

Supplier Information

Number of Suppliers
1
Supplier Name

VIX TECHNOLOGY

Open Contracting Data Standard (OCDS)

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