MUSICAL CHAIRS:TransCore re-enables MFS

Toll system integrator MFS/TS (Transp Systems) seems likely to be absorbed into TransCore, the subsidiary of Science Applications International Inc (SAIC) Spawned by big road builder Kiewit, then a subsidiary of the telephone giant WorldCom, it recently passed to Able Telecom a troubled little Miami company (see TRnl#31 Sept 98 p7 “Disabled: MFS’s ‘Dontcha-skim-a-lil’ owners”.) But Able and TransCore announced Oct 7 that they were negotiating “an operating and management agreement to oversee MFS/TS.”

The joint announcement went on: “Upon formalization of the agreement between the two companies, TransCore will provide management and technical personnel and expertise to enable MFS/TS to complete its contracts and operate as a profitable business unit.”

Not announced was an agreement under which TransCore provisionally agreed to buy a two-thirds interest in MFS/TS from Able after a 90-day period for reviewing MFS’s contracts and other balance sheet items. Senior officials confirmed the existence of this agreement and the presence of TransCore officials at MFS offices in Mt Laurel NJ both to review and to help MFS.

Since TransCore is a rival system integrator to MFS an “operating and management agreement” between the two would hardly make sense except as part of a takeover. Officials confirmed that this is envisaged. One said that TRnl’s blunt description of problems at Able was “very helpful” in bringing about the agreement with TransCore. He said the takoever by TransCore would greatly strengthen MFS which during the past year has had serious problems satisfactorily completing work.

The highest profile problem has been with Caltrans and the new ATCAS toll collection system for its 7 Bay area bridges. But work in Denver CO, and the Maritime provinces of Canada has also been running behind. Potentially most damaging was some concern about the condition of MFS in New Jersey, where the state’s most senior transp official wondered aloud whether it was going to be able to complete the huge $500m contract with four state toll agencies.

Comment: A takeover by TransCore, a solid experienced company, seems best for everyone concerned. Then there won’t be any more cause for disAbled jokes.