State buys high, sells low on transponders
The Maryland Transportation Authority has reached an agreement to buy approximately 160,000 E-ZPass transponders to meet the needs of the system over the next year.
The agreement calls for the state to pay an amount that won't exceed $3.5 million for the devices, supplied by Kapsch Trafficcom of Mississagua, Ontario. The contract is on the Board of Public Works agenda for July 6.
If Maryland pays the full price for 160,000 transponders, that would come to $21.875 each. Since the authority charges $21 per transponder, that would appear to be a bargain of sorts.
The authority says it issues about 160,000 of the devices a year but expects that total to rise with the full opening of the Intercounty Connector late this year or early in 2012. (It's partially open now.)
Of course, the authority is also proposing to give a 10 percent discount to E-ZPass users as part of its toll increase plan. Maybe 160,000 won't be enough.
According to the agenda, the E-ZPass Group -- made up of the 38 states and toll agencies that make up the network -- is currently in the process of soliciting an entirely new bid for a contract to replace the existing agreement that expires Aug. 16. But because the group has had an influx of new members, it plans to extend the existing agreement by a year.
Maybe after that, the expanded group can negotiate a volume discount that will bring the price per transponder down. One can only hope.
Categories: Maryland toll facilities
