A consortium led by Cubic and John Laing has been approved by the MBTA Fiscal Management and Control Board (FMCB) to become the systems integrator, responsible for the design-installation-finance-operations and maintenance of the system, including a 13-year initial term and two five-year extension options.
Financial close is expected in March 2018. There is a separate design-build procurement process for the AFC 2.0 project.
Proposers were required to include committed financing as part of their proposals. Debt providers independently assessed the risk of the proposer being able to deliver the project on-time and on-budget.
The MBTA makes no progress payments to the systems integrator for performance of implementation work. Payments will be phased in as milestones are successfully achieved.
The runner up was Greater Boston Mobility Partners, consisting of Conduent (formerly Xerox) Transport Solutions and InfraRed Capital Partners. Bids were also submitted by a team led by Scheidt & Bachmann and Star America, and an Accenture/Plenary Group team.
Advisors to the MBTA include Hawkins Delafield & Wood, and EY.
Last week, a joint meeting of the Massachusetts Department of Transportation board and the FMCB discussed P3 for a major multi-modal project in Boston.