ETCC, WsDOT settle - no$s but contract at 520 bridge being extended 4 years
Electronic Transaction Consultants Corp (ETCC) and Washington DOT have reached a settlement of their grievances over a difficult toll systems job at the state route 520 (SR520) bridge.
The settlement involves no cash payment, but ETCC's contract to operate the back office and customer service systems for WSDOT tolling is extended from 2014 to 2018, subject to ETCC meeting some early performance measures. The four-year contract extension ETCC says is valued at $29m but WsDOT gets 10% off that making it $26.1m by our calculator.
ETCC has also agreed to provide WsDOT with a free software license for the toll system that was valued at $4m.
The present 4-year contract is $23m.
The contract dispute was over where responsibility lay for difficulties brining online a large volume all-electronic toll system with tolls being reintroduced at one of the busiest crossings in America - the 520 Floating Bridge over Lake Washington.
The existing bridge has been tolled since December 2011 in order to help finance of a replacement toll bridge that is now under construction. But this was about a year late.
WsDOT complained that toll systems were not ready according to contract deadlines and that accuracy in violations processing was substandard. ETCC for its part said the same system had been up and working at the Tacoma Narrows Bridge and on WS167 toll lanes.
ETCC for its part complained that WsDOT kept making changes to the scope of the contract that made the delays unavoidable. There were arguments about who was responsible for problems with the violations processing at the Tacoma Narrows Bridge.
ETCC says the settlement "avoids what could have been significant costs associated with a dispute review process and potential litigation costs."
Tim Gallagher, ETCC’s CEO, is quoted: “Throughout the project, ETC Corporation has worked as a true partner with WSDOT to deliver one of the industry’s most advanced toll systems, going above and beyond the scope of the contract to support WSDOT and its Good To Go! (electronic toll) program. Now that we have reached this settlement, both ETC Corporation and WSDOT can focus on the future and continuing to provide superior systems and customer service to Good To Go! customers.”