Consider advantages of open-source designs and beware of legal challenges in road pricing systems procurement.
Experience from road pricing programs in Europe and Asia
- Consider advantages of open-source designs in road pricing systems procurement. Open-source system designs create a competitive bidding environment for capital and operating costs associated with initial implementation, including system development and integration, roadside and in-vehicle equipment, construction, and back office.
Germany, The Netherlands: The German truck tolling system contract required a minimum of two vendors capable of providing in-vehicle units to ensure a competitive pricing environment. The Dutch system planning has expanded on this concept by proposing to allow multiple vendor solutions, creating a competitive environment for equipment and systems development and an open environment for value-added services that may defray costs and support public acceptance.
Singapore: In Singapore, second-generation stored-value smart cards for in-vehicle units are designed with an open standard to be interoperable with the transit system and permit interfaces with financial institutions and businesses. The new smart cards will allow value-added services and cashless payment options for many goods and services.
- Beware of potential legal challenges to procurement decisions and build contingencies in schedule.
Czech Republic, Germany,Sweden: Road pricing system contracts have been competitive and lucrative for the businesses supporting them, inviting contentious legal challenges to procurement decisions. Legal procurement challenges from vendors in the Czech Republic, Germany, and Stockholm affected implementation schedules and some system requirements. Procurements of this type are often delayed by challenges to the selection process, so it is advisable to build in schedule contingencies to accommodate these circumstances.
The Netherlands: The complexities of the Dutch procurement plans for open systems designs and significant private sector participation led the Netherlands to employ extensive risk assessment and cost estimation planning to assess private sector procurement options.
Author: Robert Arnold, Vance C. Smith, John Q. Doan, Rodney N. Barry, Jayme L. Blakesley, Patrick T. DeCorla-Souza, Mark F. Muriello, Gummada N. Murthy, Patty K. Rubstello, Nick A. Thompson
Published By: Federal Highway Administration, U.S. DOT
Source Date: 12/01/2010URL: http://international.fhwa.dot.gov/pubs/pl10030/pl10030.pdf
Average User Rating
Lesson of the Month for October, 2011 !