June 28,2021

To Whom It May Concern:

Subject: Request for Information (RFI) for SEPTA Key 2.0

SEPTA is conducting an industry review to gain market insight with the goal of finalizing its Request for Proposal (“RFP”) solicitation documents. SEPTA is seeking an upgrade and or replacement for the existing operating system technology for the Key Program with the goal of assembling the procurement documents for this project. SEPTA is seeking input from experienced vendors.

SEPTA requests that interested parties submit an RFI response document containing responses to the Authority’s questions no later than 3 pm. (Prevailing Eastern Time) Monday August 9, 2021.

SEPTA does not intend to hold discussions at this time; however, SEPTA may contact interested parties to schedule individual meetings with SEPTA’s staff either at our headquarters in or virtually via video conference. When the review is completed and SEPTA has determined what systems are beneficial, SEPTA intends to solicit and then award a multi-year contract for SEPTA Key 2.0.

SEPTA is seeking responses from entities with a proven operating fare collection system.

Interested parties’ submissions will be in the form of responses to SEPTA’s questions regarding the features of the system. The questions and background information are provided in (Exhibit A), which is attached for your consideration.

This is not a vendor selection process.

If your organization is interested in this project, please contact me at the address shown below. Please send an "RFI" letter, to the attention of:

James Coombs – Director, Contract Administration SEPTA’s Procurement, Supply Chain, & DBE Division 1234 Market Street, 11th Floor, Philadelphia, PA 19107-3780 E-Mail: jcoombs@.org

All questions pertaining to this RFI must be submitted in writing to James Coombs, via e-mail, no later than 3 pm (Prevailing Eastern Time) Friday July 16, 2021. The answers to all technical questions submitted will be forwarded to all prospective respondents.

By participating in this RFI the Proposer is unconditionally agreeing to the following: (i) SEPTA will be authorized to use any information submitted, referenced, or presented during this RFI including, but not limited to a potential Scope of Services; (ii) SEPTA shall be authorized to reproduce, distribute, display, and create derivative works from any information received during this RFI; and (iii) SEPTA shall not be obligated to engage or otherwise compensate Proposer in any manner or for any reason for SEPTA’s use of any information and/or material submitted by Proposer during this RFI or information contained therein, or any other right granted hereunder.

This letter must not be interpreted as an award of a contract or as a commitment to reimburse for any costs incurred in the preparation or participation of this RFI.

Thank you for your interest in the Authority.

Sincerely,

James Coombs Director, Contract Administration Procurement, Supply Chain & DBE

EXHIBIT A: SEPTA Key 2.0 Request For Information (RFI)

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The

EXHIBIT A

SEPTA KEY 2.O

REQUEST FOR INFORMATION (RFI)

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Contents 1. Introduction and Purpose ...... 1 1.1 SEPTA Forward: A Vision for a Stronger Future ...... 2

2. RFI Questions for Respondents ...... 3 2.1 Questions ...... 3 General ...... 3 Program Management ...... 3 Data Center ...... 3 Field Equipment ...... 4 Sales & Banking ...... 4 Fare Media, Products and Policy ...... 4 Deployment Approach ...... 4 Customer Service ...... 5 New Functionality ...... 5 Funding & Approach ...... 5

3. RFI Schedule ...... 6

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SEPTA Key 2.0 - Request for Information (RFI)

1. Introduction and Purpose SEPTA Key has been implemented across all of SEPTA’s modes and has processed over 500 million transactions since it opened to the public in 2016. It launched as the “future of fare payment,” propelling SEPTA from an era of tokens to a reloadable, contactless chip card that offers a host of options for seamless travel and self-service flexibility. However, the current SEPTA Key backend data- processing system was designed more than 10-years ago and requires a system upgrade to meet the expectations of today – and tomorrow. As SEPTA continues its focus on implementing SEPTA Forward, our new strategic plan, we are interested to hear from vendors across the industry who can provide valuable insights into the future of fare collection.

The purpose of this Request for Information (RFI) is to gather the latest information, market intelligence, and recommendations from vendors’ recently deployed, operational, and future innovations in Automated Fare Collection (AFC) systems. In addition, SEPTA is looking at potential innovative approaches to system migrations, operational management, and third-party integrations as a view to develop the future SEPTA Key system. SEPTA will take the insights gained during this RFI process and develop a Request for Proposal (RFP) to support SEPTA in developing the next generation of SEPTA Key, known as Key 2.0.

SEPTA may utilize a combination of Federal, state and local funding for procurement and operation of the system and has an interest in receiving suggestions for ways in which the Authority may reduce capital or operating costs of elements of the Key System as well as Public Private Partnerships.

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1.1 SEPTA Forward: A Vision for a Stronger Future

Earlier this year, SEPTA leadership released a new strategic plan called SEPTA Forward - A Vision for a Stronger Future1. The purpose of SEPTA Forward is to assess our impact as an agency; identify the challenges that are disrupting our industry; set the vision for where we need to be headed; and identify the goals and strategies that will get us there. It sets a clear vision for the future with transit at the core of a resilient, prosperous, and equitable community for everyone where SEPTA is more than transit; it is the way we connect to each other.

The Plan is organized around three goals to achieve our vision:

While SEPTA Forward marks an important step to establish a clear direction and priorities, it is only the beginning. A number of exciting initiatives are underway at SEPTA to unify our system, revolutionize our bus network, expand our rail transit network, and strengthen accessibility. With Trolley Modernization, we’re embarking on a once-in-a-generation opportunity to re-imagine one of the nation’s largest light rail networks to dramatically improve transit accessibility, capacity, and reliability.

Key 2.0 is a critical investment to transform our system for the 21st century, catalyzing the regional economy. It is an essential opportunity to directly implement SEPTA’s vision for a stronger future. To guide this effort and ensure coordination with SEPTA’s vision for the future, SEPTA has identified three Key 2.0 Program Goals that directly correlate to the organizational goals in SEPTA Forward:

Examples of additional functionalities that may help SEPTA achieve these goals include: expanded use of mobile devices; enhanced mobile ticketing & mobile payments; integration with other mobility providers; and expanded open payment functionalities.

1 https://planning.septa.org/wp-content/uploads/2021/02/SEPTA-Forward_StrategicPlan2021-2026.pdf

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2. RFI Questions for Respondents SEPTA is requesting feedback from industry vendors as to existing deployments successfully fielded to peer transit agencies across the world, as well as new approaches to achieve SEPTA’s goals. This information will be used by SEPTA to formulate the core functionality for SEPTA Key 2.0. Please answer all questions applicable to your firm, and where possible, include references and contact information for each deployed system.

2.1 Questions General

Question 1. Describe an automatic fare collection (AFC) system/component that your organization has deployed. What components of your deployments are core features and what have you developed for the client? How much Commercial-Off-the-Shelf (COTS) hardware do you integrate into your systems and how much of this hardware is developed in house versus supplied by a third-party? Question 2. Describe how your organization has approached upgrading fare collection systems where you have incorporated existing system elements. Are there examples of system elements that are either difficult or cost effective to reuse or upgrade?

Program Management

Question 3. What is your typical engagement strategy (who’s involved) and approach for each of the phases of an AFC project (Design, Development, Deployment, and Support)? Describe the geographic location of key team personnel, location of development resources and location of senior management. Question 4. What successful public engagement strategies for the development and deployment of a new AFC system have you utilized?

Data Center

Question 5. What are advantages/disadvantages between having a fare system datacenter Cloud Based vs. On-prem vs. Hybrid? How does your approach meet system latency, resiliency and system security targets? What applications and certifications come with any of these options? Question 6. SEPTA encourages open architecture to provide alternative sales channels and to integrate with paratransit (CCT), micro-transit, building access and parking. How would you propose to achieve such goals? Question 7. How would your system provide access to raw system data as well as to real-time sales and ridership data for analysis, customer services, Business Intelligence (BI) and financial reporting? How would you ensure the accuracy of that data? How do you use Application Programming Interface (APIs) for the secure communications with system components, including 3rd party provided equipment? What is your approach to data security and privacy?

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Question 8. What is your organization’s approach to field device (e.g., readers, kiosks, sales equipment, etc.) monitoring and management?

Field Equipment

Question 9. SEPTA has a rolling enhancement program for field equipment. What is the feasibility and challenge of integrating a new data center with existing field devices (bus readers, station platform validators, parking payment stations, sales kiosks, etc.)? What options for these devices does your organization support? Question 10. Provide a recommended approach to station parking, including pay-by-space, monthly permits, used in both gated and ungated lots.

Sales & Banking

Question 11. What strategies have you employed in existing deployment(s) with regards to promoting self-service sales (cash, debit and credit), as well as the deployment of in-station or on- street vending infrastructure? How would you ensure an equitable solution that meets the needs of all SEPTA customers? How have you integrated other merchants, such as pharmacies and supermarkets, into a broader transit sales strategy and what are the key constraints of this approach? What has been your approach to the following: o Mobile and Web Integration and Development? o Issuance of special products such as Senior, Reduced Fare, Event ticketing? Question 12. How have you increased the efficiency of revenue management, including equipment maintenance, cash collection, processing and deposits? Question 13. What is your approach to managing credit and debit card transactions including bank processing and financial reconciliation? What specific capabilities does your system have to mitigate chargebacks?

Fare Media, Products and Policy

Question 14. What types of fare technology does your organization have experience with? What would be your approach to reducing the cost and the number of SEPTA fare media available for purchase? What technology and commercial approach would you recommend? Do you have expertise in accepting third-party issued media (e.g., College Passes)? Question 15. What is your organizations experience in supporting multiple fare products (e.g. Adult or Discount fares, School or Institutional Pass products) as either a card-based, account- based or hybrid approach? What is your approach to fare capping or multi-rider capability? How does your system address changes in fare policy?

Deployment Approach

Question 16. Based on your experience with peer agencies, what would be your approach and timeline to transition from an existing fare collection system to SEPTA Key 2.0? How would you phase-in the various features of the new system?

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Customer Service

Question 17. Describe your standard call center and IVR proposal to ensure customer services can be operated to provide efficient service to all SEPTA customers.

New Functionality

Question 18. What new ideas do you propose to promote ridership recovery and growth? Question 19. Describe how SEPTA can integrate with neighboring transit agencies and other mobility services such as bikeshare, ride-share, etc. How would you approach enabling through- ticketing between regional transit providers such as AMTRAK, NJT, PATCO and DelDOT? Question 20. SEPTA is interested in expanding our mobile payments capabilities. Describe your experience and success with providing mobile payment solutions.

Funding & Approach

Question 21. In financing SEPTA Key 2.0, SEPTA may utilize some or a combination of Federal, state and local funding for the procurement and operation of the system. In addition, SEPTA has an interest in receiving suggestions for ways in which the Authority may reduce capital or operating costs . What innovative funding mechanisms would you recommend? Question 22. What information do you recommend incorporating in an RFP that will allow your organization to respond in a timely and efficient manner?

Please respond to all questions that are applicable to your firm, describing how your organization has deployed these features to existing clients. Please include location and deployment status.

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3. RFI Schedule

Proposed Schedule for Expression of Interest/ Request for Information

Event Date Release RFI Monday, June 28, 2021

Questions from Interested parties 3:00 pm Friday, July 16, 2021

Issue Responses to Questions Thursday, July 22, 2021

RFI Due Date 3:00 pm Monday, August 9, 2021

Internal SEPTA Review TBD

Respondent Clarification Sessions TBD (if required by SEPTA)

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Appendix 1 Current System Overview

A. Transit Operations Surface Operations: SEPTA maintains an active Fleet of approximately 1750 vehicles at 10 Surface District locations. Service is run on 123 fixed routes with 13,000 stations & stops and provides 109M annual trips.

Fare transactions are transmitted through a Verizon APN private cellular network. The installed devices are a Conduent On-Board Processor (validator) communicating to the backend servers through a Sierra Wireless Modem/Router. The On-Board Processor reads SEPTA Key Smart Media Cards using ISO 14443 Communications. SEPTA also uses a traditional GFI Cents-A-Bill Farebox on each Surface vehicle to accept cash payments.

Subway Operations: SEPTA Subway Operations run over the Market-Frankford Line and the . There are of 53 Stations, 24 on the Broad Street Line and 29 on the Market- Frankford Line. These lines provide 67M annual trips.

Each station has a fareline(s) and fare vending equipment. There are 176 Full Function Fare Vending Devices (Sales Kiosks) as well as over 450 Turnstiles, including wide-exit ADA gates and emergency exit gates installed across the SEPTA Subway network.

SEPTA Subway stations are typically hard-wired for communications with back-end servers. Individual pieces of equipment are connected via ethernet to Cisco Level 2 Switches installed in each fareline. The Level 2 Switches are then connected to Level 3 Switches via ethernet or fiber depending on distance to the station communications room. Redundant Cisco Level 3 Switches are connected to a fiber network for communication with back-end servers.

Light Rail: SEPTA Light Rail operations includes five Subway-Surface trolley lines, Girard Avenue Line, two Media-Sharon Hill Lines and the Norristown High Speed Line. There are 185 light rail vehicles serving 692 stations & stops and providing 20M annual trips.

Vehicle fares are collected and transmitted to the backend through a Verizon or AT+T private cellular network, in a manner similar to Surface Operations.

Fareline equipment is installed at 4 station locations, there are 10 Full Function Fare Vending Devices and 29 turnstiles, including wide-exit ADA gates and emergency exit gates. The fareline and vending equipment are configured similar to Subway stations.

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B. Regional Rail Operations

Regional Rail Center City Stations: Access to the 5 Center City Regional Rail Stations is controlled by farelines. These Stations are Suburban, Jefferson, 30th Street, Penn Medicine, and Temple. There are also turnstiles installed at Fernrock Transportation Center at the Mezzanine level. The Center City stations contain the largest concentration of Regional Rail SEPTA Key equipment and these stations, along with the Airport are priority customer locations. Regional Rail turnstiles have a validator at each end of the equipment to process both entry and exit taps, while City Transit turnstiles have only one validator on the unpaid side of the fareline. Customers must tap-on to open a trip and tap-off to close their trip to be charged the appropriate fare. Since a large majority of customer’s trips either begin or end at these locations these units are an integral parent of the SEPTA Key System. There are approximately 185 RR turnstiles in service, concentrated at Suburban, Jefferson, and 30th Street. Proper function is critical since Regional Rail passengers come into direct contact with this equipment as they enter and exit the System.

The Fare Vending Device (FVD) also known as a Fare Kiosk, can dispense the various types of fare products that are available to SEPTA’s customers. There are 109 Kiosks installed on the SEPTA Regional Rail System, these are located primarily at the Center City stations along with the Philadelphia Airport and Fern Rock Transportation Center. There is an additional Kiosk located at the Travel Center at the University of Pennsylvania Bookstore. The FVD can dispense Key Cards (Smart Media), Quick Trips, and provide receipts. The FVD also allows customers access to their SEPTA Key accounts to check products and Travel Wallet balances, purchase passes or add value to their Key Cards. On Regional Rail there are two versions in service, full function and cashless. Full function units accept cash, coin, credit/debit card and smart media for purchase. Cashless units have no bill acceptor or coin handling system installed.

The 6 major Center City stations are typically hard-wired for communications similar to the Subway stations. Media Information Display (MID) (Station Validator): The MID is the piece of equipment used at Regional Rail station locations to record trip opening taps and trip closing taps to assess the proper distance-based fare for each customer. There are approximately 750 MIDs installed at approximately 150 outlying stations throughout the entire SEPTA Regional Rail network, covering over 200 square miles. As with the Surface fleet, communications are accomplished through a Verizon APN, private cellular network. Installed in each MID is a Conduent Smart Media Processor communicating to the backend servers through a Sierra Wireless modem/router. The Smart Media Processor reads SEPTA Key smart media cards using ISO 14443 NFC Communications.

Regional Rail Crew Remittance Office: The Regional Rail Crew Remittance Office has 3 operating windows to process cash fare remittance at the end of each conductor’s shift. This office services over 550 conductors at . Conductors are issued Handheld Sales Devices (HSD) to validate fares and smart media transactions while they are on the train. There are over 700 handheld devices in use using modified smart phone technology. These devices also communicate via a Private Verizon cellular network.

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On-board Regional Rail trains, conductors are responsible for validating customer’s fares or selling to those who need a fare. Conductors sell fares through their handheld device, which can accept cash or credit cards. The cash collected by each conductor is then turned in via the remittance process at the Crew Remittance Office. The Crew Remittance Office is responsible for all the revenue cash collected by Conductors. Conductors remit their cash to the Crew Remittance Office daily, then this cash is reconciled with the on-board sales amount and then submitted to the bank.

C. Customized Community Transportation (CCT) (ADA Paratransit/Shared Ride)

CCT Operations serve over 1M annual trips with 460 revenue vehicles. The service is contracted out with approximately eight garages. The fare collection system is provided by a third-party vendor and is integrated with SEPTA Key so that travel products can be loaded and managed through the SEPTA Key internal sales network.

D. Parking

SEPTA has parking lots at most major Regional Rail stations and post-pandemic, SEPTA intends to re- establish charging for use of these spaces. The parking system is divided into two key areas – pay by space and permit parking. For the pay-by-space product, users can utilize a mobile application to pay for same day parking good for that day. Additionally, some lots have a pay-by-space kiosk available to select the space number and pay in person with cash or credit. The permit parking application is more complex and requires that users register their Key Card with SEPTA, have and maintain a monthly pass, and renew the permit each month. Because the parking spaces are quite limited in some lots, a waitlist has been created to allow the next eligible person to purchase a permit when someone leaves the program. This portion is still under final development, but some important features SEPTA would like to have is the ability automatically manage the permit eligibility and waitlist features. Also the ability to create an autoload job so that the patron doesn’t have to interact with the website every month if they intend to keep the permit active.

SEPTA has approximately 300 Parking Payment Stations installed at Regional Rail station locations to process parking payments. There are 155 SEPTA Controlled Parking Lots across the Regional Rail network. There are also 3 gated parking garages at Norristown, Lansdale, and Frankford Transportation Center that are not currently part of the SEPTA Key network. The Parking Payment Station can also process smart media transactions for opening and closing of customer’s trips. This allows customer to pay for parking and their trip on Regional Rail with one transaction.

As with the surface fleet, communications are accomplished through a Verizon APN, private cellular network. The unit can also accept coins and credit/debit cards for payment as well.

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E. SEPTA Key Data Processing Center

SEPTA Key fare payment system is an account-based payment system serving all transit modes including: Transit (buses, trolleys, trackless-trolleys), Regional Rail and Customized Community Transit (Paratransit). Also included: parking payment, building access, sales, etc.

The system consists of a data processing center at 1234 Market Street (& backup data center at 2nd & Wyoming), networks (fiber & cellular), sales outlets (kiosks, website/mobile app, call center/IVR, sales offices, Expanded Retail Network) and fare processing devices (bus readers, turnstiles, ADA gates, Railroad station validators, parking payment stations, emergency exit gates).

GSM GSM (Global Services Manager) is a multi-function, web-based asset tracking and maintenance services management software package. We use GSM to monitor and control all SEPTA Key equipment. Equipment sends alerts to GSM when service is needed or when various error states are reported. GSM also tracks maintenance and service activity, as well. This system allows SEPTA personnel to log into GSM to acquire any open jobs, enter their service activity, and close jobs properly leaving any necessary notes about the service Incident.

Financial Reporting Reporting is an essential component of providing effective and efficient service. SEPTA Key requires data access, queries and reports on revenue & ridership, status & maintenance, reconciliation, and other areas through Crystal Reports server, ad hoc reporting, and system queries.

F. Sales There are approximately 1.6M Key Cards in circulation with total reloads near 25M transactions and $500M of products. Sales outlets include: station kiosks, website/mobile app, sales offices, call center/IVR, web portal, external retailers and Railroad Conductor sales. There are also sales of Quick Trips (mag stripe) and Partner Passes (disposable smart media).

Sales Kiosks There are 350 sales kiosks located at Subway stations, Regional Rail Center City stations, and bus loops. These account for 54% of Key Card sales and reloads.

Sales Offices The nine SEPTA sales offices account for 8% of Key Card sales. There are 48 POS Sales Devices installed at the 9 sales offices, at customer service locations, and at SEPTA Human Resources. These devices include touch screen controllers, credit card POS readers, check readers, cash drawers, and card printers to produce various forms of fare media. Customer account management functions are also performed using these Sales Devices.

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Web Portals SEPTA’s current Web Portals support multi-tiered client servicing capabilities. Beyond the general public website that currently services all Key cardholders, multiple portals support large and small corporate partners, municipalities, colleges & universities, and the public school system of greater Philadelphia (SDP).

The current SEPTA Key website (www.septakey.org) and the SEPTA mobile app account for 23% of Key sales. These sites allow users to manage their Key cards to check current account balances, see types of fare products to purchase, trip history, and other features such as manage travel benefits, Travel Wallet, autoloads, and credit card information.

The Corporate Portal allows SEPTA to manage both small and large companies as well as social service agencies. Small companies can link employees to load passes and manage the accounts. Large companies can use an upload tool using an Excel interface and manage the accounts and products in a bulk manner. Social service agencies can purchase Partner Passes (disposable smart media) for issuance to clients.

The Student Portal was created for the School District of Philadelphia (SDP) and non-SDP schools to manage and provide transit for the students. Some students are eligible to upgrade their cards for rides on the Regional Rail system, if needed. The cards are ordered in bulk, each school receives an allotment of cards, and when issued, the school admins manage the product loading to the associated card. A school calendar operates in the backend system to prevent travel on holidays and weekends, and certain times of the year when school is out.

External Retail Network There are approximately 500 retailers selling/reloading Key Cards with Travel Wallet and passes throughout the five county region. SEPTA Railroad outer station ticket offices are manned by 3rd party staff and are part of this network. These account for approximately 3% of Key product sales.

G. Fare Media & Products

SEPTA Key system currently accepts multiple forms of fare media and products. Key Cards are MasterCard-branded, banking-standard cards which can be loaded with Travel Wallet as well as daily, 3- day, weekly, monthly passes for various modes and zones. Quick Trips are one-use, mag stripe, paper passes sold at station kiosks, sales offices, and very soon by conductor handheld devices. Partner Passes (PP) are disposable smart media sold to social service agencies and can’t be reloaded. PP products include 1 trip + free transfer, 2 trip + free transfers, day pass, 3-day pass, 7-Day & 30-Day Rolling Passes. Cash is accepted on all modes. Closed-loop cards are issued for free senior travel, reduced fare programs, student passes, CCT (paratransit) riders, and employees.

SEPTA Key also accepts limited use of mobile phones, contactless bank cards, PATCO, NJT & AMTRAK paper/mobile tickets.

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H. Revenue management / cash management

SEPTA’s Revenue Department manages all cash collected for ticket sales, and processes it at a secure facility, before depositing in the bank.

The following diagram shows the SEPTA Regional Rail and Rail Transit networks which are served by the SEPTA Key system.

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