Since 1999, Sydney has been in the procurement phase for the technology upgrade and integration of its ticketing system. During this time, it has developed an organisation structure, procurement strategy, business case, negotiated a build, operate and maintenance contract and commenced design activities.

In parallel, significant process changes will need to occur within stakeholders’ operations to accommodate the technology and processes. These have been factored into the project specification. Funding structures have been settled, which need to take in to account ownership, borrowing and repayment issues.

The Project formally commenced in February 2003, and is expected to be completed across the greater Sydney metropolitan area by the end of 2006.

From the perspective of the Government, this is regarded as a high risk undertaking; commercially, technically, operationally and in terms of meeting customer expectations.

From the industry point of view, there have been changes in technology, industry participants and alliances. Cost bases and revenue expectations have changed, and business models are evolving. Again, this represents a high risk environment.

Additionally, the lengthy tendering and negotiation processes have presented significant cost and resourcing challenges. While the outcome will undoubtedly deliver a superior solution, there Are valuable lessons to be drawn from the experience for similar complex multiple stakeholder procurements.

This paper is jointly presented by the NSW Department of Transport and Integrated Transit Solutions. It identifies key challenges of the project to date from both an industry and Government perspective.

The objective of the paper is to promote discussion on improving procurement efficiency for all parties. Resolving this will assist the development of smartcard based projects, which we believe will secure the future of a significant industry, ensure customer satisfaction while meeting Government and private sector buyers' objectives.