20 November 2008 | Jake Kanter
Transport for London (TfL) has awarded the new contract for its Oyster card system to technology firm Cubic and its partner EDS.
They will take over the contract in 2010 and manage the electronic ticketing system for three years. TfL said the value of the deal was commercially sensitive. Cubic is the principle vendor in the deal, but sections of the work will be subcontracted to EDS.
In August TfL evoked a break clause in the original £100 million-a-year Oyster card deal with consortium TranSys. Both Cubic and EDS were part of the original TranSys consortium, which also included Fujitsu Services and consultancy WS Atkins.
Transport Trading Ltd (TTL) - a TfL subsidiary responsible for ticketing - had been in talks with EDS about the new deal, but when negotiations broke down, TTL began discussions with another supplier - Cubic. EDS then secured a court order to stop TTL awarding the new deal (News, 4 September). But following further negotiations, EDS dropped its injunction, and Cubic and EDS formed an alliance.
The transport organisation believes the arrangement will deliver better value for money. It will also help contribute to TfL's target of saving £2.4 billion over the next 10 years.
Shashi Verma, director of fares and ticketing for TfL, said in a statement: "This new deal will see Oyster in the pockets of Londoners for years to come and will save significant money that TfL will invest in improving transport in the capital."