01 September 2008
IT provider EDS has secured a court order to prevent Transport for London (TfL) awarding a new contract for its Oyster card system.
Last month TfL scrapped its £100 million-a-year deal with consortium TranSys (of which EDS is a part) for the electronic ticketing system. It argued a new contract "will deliver enhanced services for less money, driving significant savings".
But EDS has blocked any future negotiations by Transport Trading Ltd (TTL) - a TfL subsidiary responsible for ticketing - following the termination of the current deal.
The court order was revealed in a filing to the US Securities and Exchange Commission by technology firm Cubic, another member of the TranSys consortium. The filing said during re-tendering, negotiations between TTL and EDS broke down.
TTL held discussions with Cubic to perform the whole contract from 2010. A Future Ticketing Agreement (FTA) was set to be signed after the termination of the TranSys deal in August. Cubic understands the court order expires at the end of the year and once lifted, it intends to sign the FTA with TTL.
A spokesman for TfL said: "EDS has sought to challenge the procurement arrangements for the new contract. TfL are vigorously defending this challenge and have appealed against the interim court order."
"We remain committed to delivering better value for money and to ensuring a seamless transition to any new contract from 2010."
EDS declined to comment.