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The company that developed myki has won a new, seven-year contract worth $700 million to continue running the state's public transport ticketing system.
Incumbent operator NTT Data was selected ahead of a competitive field that included Cubic, which operates smartcard systems in London and Sydney, following a two-year tender process.
The new contract - with the same operator that was involved in a $550 million blowout in the cost of the original contract - contains tough new performance provisions, the Andrews government said.
Under the contract's terms, NTT Data will have to pay for any unforeseen cost overruns, not the state.
The operator will also have to meet 13 new performance benchmarks or face financial penalties, Public Transport Victoria's acting chief executive, Jeroen Weimar, said.
These include meeting a 99.5 per cent availability target for the myki system, ensuring online payments are processed within 90 minutes and that myki readers are clean and scratch-free.
But there are no moves to introduce a single-use ticket, the absence of which is a regular source of complaint among public transport users.
The government claimed it would also begin to investigate the introduction of new contactless technology for myki, including the ability for passengers to touch on and off with their credit card or smart phone.
The vast majority of myki gates and readers in Victoria predate contactless technology and would have to be replaced, at an unstated cost, to enable this to occur.
Unsuccessful tenderer Cubic has introduced contactless payments for London's Oyster card system and will trial them with Sydney's Opal card.
The government struggled to keep Tuesday's announcement under wraps. The Age revealed in May that NTT Data had moved ahead of Cubic in the tender process.
The Andrews government's ten-and-a-half-year, $1.58 billion myki contract with NTT Data will end this year, having survived a disastrous $550 million cost blowout and a three-year delay in its early stages, and many infuriating glitches in the years since going live.
The new myki contract will begin on January 1.
Victoria's Auditor-General and its Ombudsman have both issued critical reports on how the 10-year myki contract has been handled including, according to the Ombudsman, the original and costly decision to contract "an unproven vendor to deliver a significant product in an unproven operating environment".
This article first appeared on www.theage.com.au
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