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Introduction 5 Visual Visual Ticket Ticket Inspection Inspection Manual Manual System System Collect Collect Paper Paper Media Media Participant Participant Agreements Agreements All Single Single Source Source No All Agencies Agencies Procure Reliant Reliant onon one one supplier supplier Procure Equipment Equipment From From Supplier Supplier hashas $ $ power power Is the One Little Little incentive incentive to to innovate innovate IsIs the the One Supplier Supplier Automatic System Automatic Fare Fare System System Collection Collection System System Standard Inter- or Inter- Proprietary? operable? Multi-Sourcing Multi-Sourcing All All Agencies Agencies Increased Increased competition competition Adopt Adopt AA Common Common Product Product improvements improvements Data Data Format Format Greater Greater flexibility flexibility in in Yes standard participation participation Figure 1. Interoperability model. Items controlled by participants; Dispute resolution; and Legal framework. The Participation Agreement drives the information requirements for institutional interop- erability. Chapter 1 discusses the issues associated with institutional interoperability in detail. The next step is to define the technical information required to achieve interoperability. The business rules articulated in the Participation Agreement define the information to be exchanged by the interoperable smartcard system. At a minimum, the card-to-reader data for- mat and the data format for transferring the transaction records to a central clearinghouse need to be defined. The minimum requirements for implementing an interoperable smartcard system can be accomplished by using one of the following approaches: 1. Procuring the technology from a single supplier, similar to Washington, DC, with the EZ Pass Interagency Group (IAG) 2. Developing an interface specification that defines the requirements with which each partici- pant's supplier has to comply, similar to what is done in the financial services or telecommu- nications industries 1.3 Interoperability Across Regions Most regional systems implemented across the United States and Canada use a single sup- plier for a specific region. Each system has unique characteristics and features. To achieve intra- regional interoperability, the business rules and technology need to be synchronized. Figure 2 illustrates the process for analyzing and identifying gaps in the business rule and technology for a specific group of regions. Each time a new region is added, the entire process needs to be repeated. The primary factor for intra-regional interoperability is the cost of making the nec- essary systems modifications. The most difficult situation to manage is where two competing