Immobilier wiring for a track car, issue.
 

I'm wiring my track car up to a button start and ignition switch.

My initial plan was to slide this off the ignition barrel (Circular plastic piece.):

http://www.rjes.com/assets/images/transponder.JPG

And put the fob inside it else where as the ignition barrel is coming off, this didn't work though.

What i found was that when you slide the circular plastic piece from the ignition barrel it no longer picks up the transponder chip even if the chip is within the circular plastic piece, it will only pick up the chip when the circular plastic piece is pysically on the ignition barrel in the correct place.

Can anyone elplain to me how i can get around this, looking at the circular plastic piece there is no switch or anything that is pushed when it is slid on?

Thanks