EDS Takes TFL To Court After Oyster Contract Handled To Competitor

The GBP 100 million Oyster Saga promises even more bumps than on a tube ride as EDS, one of the majority partners in Transys - the company that runs the Oyster scheme, convinced a high court to hand a restraining order to Transport Trading Limited, a subsidiary of Transport for London (TfL).

TFL was planning to give the contract to Cubic Corporation, the remaining partner in the Transys Consortium but a filing by Cubic to the US Securities and Exchange Commission shows that former ally EDS has managed to stop the move with a court order.

The filing revealed that there were two rounds of negotiations, both of which failed, after which, TFL decided to side with Cubic for three years starting from 2010, when the contract with Transys gets canned; the contract was initially allocated for 17 years.

It is the third time that TFL has cancelled public-private partnerships after Metronet and Croydon's Tram.

Boris Johnson announced earlier this month that the consortium would be given a two year notice and TFL has demanded a GBP 1 million compensation for the two Oyster card outages that happened last month.

A Spokesperson for TFL told Computerworld UK that "TranSys should meet these costs rather than TfL or the ratepayer".