Item - 2026.TTC16.9

The TTC Board:

1. Adopted the recommendations in Confidential Attachment 2; and

2. Authorized the information in Confidential Attachment 2 to remain confidential until such time as the final negotiations have been completed and all necessary agreements have been executed.

3. Directed TTC staff to complete the evaluation of the RFI submissions, including vendor interviews, and undertake any additional market engagement considered appropriate to further assess market capabilities and value-for-money considerations in support of future automated fare collection system decisions.

The purpose of this report is to provide the TTC Board with an update on the TTC-Metrolinx Master E-Fare Collection Outsourcing Agreement.

The 2012 TTC-Metrolinx Master E-Fare Collection Outsourcing Agreement (the “Agreement”) has an initial term of 15 years, which expires on November 28, 2027. The automatic renewal clause for five years (to 2032), is no longer applicable as Metrolinx provided notice to the TTC to opt-out of the automatic renewal and their intent to negotiate a new contract in May 2025.

At the April 16, 2026 meeting, the TTC Board directed TTC staff to complete a market sounding to understand value for money of current industry offerings for an automated fare collection system. A request for information (RFI) was publicly posted on May 27, 2026, for submissions until July 17, 2026. TTC staff will evaluate RFI submissions upon closure date.