TxTag eyeing new contract for toll transactions management

TEXAS (KXAN) — The Texas Department of Transportation (TxDOT) is considering a possible contract with the Harris County Toll Road Authority (HCTRA) to oversee TxTag transaction processing and management work, officials shared online.

The notice said TxDOT and HCTRA are "taking the necessary steps" in preparations for the potential transition, but TxDOT officials said the state agency can end transition-related activities until a toll services agreement contract has been finalized.

Should the transition go through, HCTRA will oversee toll collections for tag and non-tag drivers on these TxDOT-owned toll roads:

• SH 130
• SH 45N
• SH 45SE
• MoPac Expressway/Loop 1
• SH 99
• SH 249

In an email to KXAN, a TxDOT spokesperson said TxDOT hasn't switched the HCTRA for TxTag billing yet, adding the transition to HCTRA oversight would need to be approved by the Texas Transportation Commission. Should that transition be approved, the spokesperson added it would be a phased approach, beginning in late 2024 and continuing into 2025.

Per TxDOT's notice, TxTag customers will be able to continue using their current TxTag account to cover the costs of tolls, so long as the TxTag has been properly installed and linked to their vehicle with up-to-date information and money available to cover the fees. TxDOT recommended customers check their current account to confirm the linked information is accurate and any overdue toll bills have been paid off.

Should the transition go through, HCTRA will oversee the customer service management and billing end of things, but TxDOT officials said the state agency will continue to both own and maintain its toll roads and related equipment. The Texas Transportation Commission will still be the responsible agency for setting any rates for TxDOT-owned toll roads, per the notice.

The notice added toll rates won't be impacted following the possible pivot to HCTRA.

"HCTRA is an experienced tolling authority that performs toll services as its core business and, if a contract is approved, would provide an enhanced experience for customers," the notice read in part. "TxDOT and HCTRA are taking the necessary steps to prepare for a transition, but TxDOT has the option to stop all transition activities until a Toll Services Agreement is executed."

In May 2023, KXAN debuted TxTag Troubles: A Viewer-Driven Investigation. The investigative series explored auto-payment issues, double billing problems, incorrect billing statements and customer service issues within the TxTag system, with the investigation revealing issues that had persisted for almost a decade.

Vendor history

TxDOT has gone through multiple TxTag vendors in the past decade.

In 2013, TxDOT announced a five-year contract with data-systems giant Xerox for management of TxTag tolling and customer service. In 2017, Xerox and Conduent split, with Conduent taking over the contract.

TxDOT hired IBM to begin work on the TxTag “back office system” in 2019. That same year, TxDOT contracted with Faneuil, which later became TTEC in an acquisition, to operate the customer service center.

Along the way, TxDOT has found problems with vendor performance. The agency fined Xerox and Conduent more than $2.4 million between 2014 and 2018 for failing to meet benchmarks in the contract, according to the agency and records obtained by KXAN.

TxDOT terminated IBM’s contract in November 2021 and fined the company more than $6 million for not meeting its obligations, KXAN previously reported. An IBM spokesperson disagreed with TxDOT’s assessment and said the company’s work exceeded operational requirements.

TTEC’s contract was originally worth $145 million. TxDOT has assessed more than $3 million in liquidated damages against the company for failing to meet standards in its contract, according to TxDOT.

TTEC did not immediately respond to KXAN’s request for comment on the TxDOT’s potential shift to HCTRA for billing and customer service.

More details on the proposed changes are outlined online.