TxDOT Terminates IBM From Toll Operations Contract For System Issues
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TxDOT Terminates IBM From Toll Operations Contract For System Issues

Contact: Media Relations

Phone: (512) 463-8700

Date: Aug. 27, 2021

AUSTIN Citing continued challenges with an upgraded toll operations system delivered by IBM nearly a year ago, the Texas Department of Transportation (TxDOT) announced today that it has terminated its remaining contract with the company.

Since the system’s roll-out, TxTag customers and toll road users have experienced unnecessary challenges in managing their accounts. TxDOT has not seen satisfactory results from IBM and is disappointed in the numerous difficulties the system has created for customers.

“We take the responsibility of providing a quality and trusted customer experience very seriously, and regret the impact and inconvenience these past many months of lackluster IBM service have had on our toll road users,” said TxDOT Executive Director Marc Williams. “We will continue to keep customers apprised on our progress to improve our customers’ interactions with TxTag. Our customers deserve better and we are committed to ensuring that they receive that going forward.”

TxDOT has secured new interim technology providers via an emergency contract with SAP and the Department of Information Resources Managed Security Services to help stabilize and improve the back-end system to manage the massive amount of customer data and toll transactions. This will help ensure that the system provides customers accurate, timely and consistent account management, billing and payment capabilities that meet the highest levels of usability and security. In tandem with this step, TxDOT also has begun the process of procuring a new service provider that will assume responsibilities from the interim team to continue rigorous improvements and operations.

“This is not a step we take lightly,” Williams said. “But it is the step we had to take now. We simply could not move forward in the current state.”

With the ongoing transition, customers do not need to take any action at this time. We encourage customers to continue managing their accounts at www.TxTag.org or by contacting the call center at 888-468-9824. As has been the case since the upgraded system transition first began in late 2020, no late fees are being assessed at this time.

For media inquiries, contact TxDOT Media Relations at MediaRelations@TtxDOT.gov or (512) 463-8700. 


The Texas Department of Transportation is responsible for maintaining 80,000 miles of road and for supporting aviation, maritime, rail, and public transportation across the state. Through collaboration and leadership, we deliver a safe, reliable, and integrated transportation system that enables the movement of people and goods.  Find out more at TxDOT.gov. "Like" us on Facebook and follow us on Twitter.

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