Prison Phone Justice

THE STATE OF IDAHO
DEPARTMENT OF CORRECTION
Volume 2 – Price Proposal
Request for Proposal for
Inmate Phone Service
Section
4

Description
Signature Page
COST AND REVENUE REQUIREMENTS
04.01
Department Priorities
04.01.01 Rate Basis
04.01.02 Franchise Fee/Commission
Subsection 4.A - Time and Distance Rates and Commission
Subsection 4.B – Flat Rate and Commission
Subsection 4.C – Franchise Fee Option

Page Number

4-1
4-4
4-6
4-7
4-9
4-11

State of Idaho
Department of Administration
Division of Purchasing
IRK KEMPTHORNE
Governor

PAMELA I. AHRENS
Director

JAN COX
Admini trator

5569 Kendall Street (83706)
P. O. Box 83720
Boise, 10 83720-0075
Telephone (208) 327-7465
FAX (208) 327-7320
w2 .state. id. us/adm/purchasing

SIGNATURE PAGE For Use with a Manually Submitted Invitation to Bid (ITB) or Request for Proposal (RFP) Response
Bids or proposals and pricing information shall be prepared by typewriter or in ink and shall be signed in ink by an authorized
representative of the submitting vendor. Two (2) copies of the bid or proposal shall be submitted, one (1) original and one (1) photocopy
of the original, unless the RFP solicitation instructions specify otherwise. AT LEAST ONE BID OR PROPOSAL SUBMITTED BY THE
VENDOR MUST BE AN ORIGINAL (NOT PHOTOCOPIED) SIGNATURE.
NO LIABILITY WILL BE ASSUMED BY THE DIVISION OF PURCHASI G FOR A VE DOR'S FAlLURE TO OBTAIN THE TERMS AND
CO DITIO SAD A Y PROPERLY ISSUED SOLICITATIO ADDE DUMS IN A TIMELY MA
ER FOR USE IN THE VE DOR'S
RESPO SE TO THI SOLICITATIO OR
YOTHER FAILURE BY THE VE DOR TO CO SIDER THE TERM ,CO DITIO
A D
THE VE DOR' RE PO E TO THE SOLICITATIO .
A Y ADDE DUMS
The ords" EALED BID" and the bid number mu t be noted on the out ide of our EALED BID package. To insure that your EALED BID is
handled properl the folIo ing information mu t be placed in the 10 er left corner of our bid package:

SEALED BID
BUYER:
SEALED BID FOR:
BID UMBER:
CLOSES:
- ~nd your sealed bid package to:

Division ofPurcha ing

PO Box 83720
Boise, 10 83720-0075
When sending packages b FedE

UPS or other Couriers:
Di i ion of Purcha ing
5569 Kendall treet
Boise ID 83706-1231

This ITB or RFP re ponse is submitted in accordance with all documents and provisions of the specified Bid umber and Title detailed below. By my
signature below I accept the STATE S CO DITIO SAD INSTRUCTIO S TO VE DORS and STATE OF IDAHO STANDARD CO TRACT
TERMS & CO DITIO S dated 7/1/01 as incorporated by reference into this solicitation. As the undersigned I certify I am authorized to sign and
ubmit this respon e for the Bidder or Offeror. I further acknowledge I am re ponsible for revie ing and acknowledging any addendums that have
been is ued for this olicitation.
Plea e complete the folIo ing information:
BIDDE~OFFEROR(Compan

ADDRESS

ame)PublicCommunic~ions e~ice~

Inc. BID

umber:~RF~PO~I~6~9~5~~~~~~~~~~~~~~

11859 Wil hire Blvd., Suite 600

CITY ST ZIP Lo Angeles, CA 90025
TOLL FREE (800) 350-1000

PHO E (310) 231-1000

FAX (310) 473-5401
FEIN/ S # 95-4615-444
THIS SIG ATURE PAGE MU T BE SIG ED WITH A ORIGI AL HA DWRITTE SIG ATURE EXECUTED IN INK A D RETURNED
WITH YOUR BID OR PROPO
R OUR BID OR PROPO AL TO BE CO IDERED!

ovember 11 , 2005

Date
Tommie E. Joe

Chief Operating Officer

Please type or Print Name

Title

State of Idaho Department of Correction
Inmate Phone Service RFP01695

04 Cost and Revenue Requirements
All copies of the cost proposal must be in a separate sealed envelope
from the remainder of the proposal, and no price information may
appear in any other proposal section.
04.01 Department Priorities
•

Functionality and contractor support.

•

Assuring that the lowest possible rates are charged for all call types.
These shall include all charges, including call set-up charges and per
minute charges for any call placed and accepted

•

Types of calls are consistent from all Department facilities.
Local (including extended community) calls
IntraLATA calls
InterLATA calls
Interstate calls

There are a minimal number of international call requests, which are handled on
a case-by-case basis.
The present maximum call length for all locations is thirty (30) minutes. For fiscal
year 2004 (July 1, 2003 – June 30, 2004) the number of calls placed was
513,502 and the total minutes was 10,593,234.
List your proposed rates on the Call Cost Analysis Sheet below. These listed
rates will be used in the measurement of the Vendor’s RFP. There will be only
one set of rates for the entire Inmate Phone System. Rates will be fixed for the
initial period of the contract which shall be three (3) years.
Please provide the total charges, including any call set-up, for the following call
types. If call set-up charges are “wrapped” into per minute charges, indicate so
under the appropriate heading. All call rates will remain constant for calls made
during any time of day or day of week. Please indicate if these charges are
inclusive of any and all surcharges and/or taxes.

4-1

State of Idaho Department of Correction
Inmate Phone Service RFP01695

Call Cost Analysis Sheet
Call Type:

Number of Calls

Local
IntraLATA
InterLATA
Interstate

258,493
122,980
66,064
65,965

Set-up
Charge

Number of Minutes Per Minute Rate:
6,008,363
2,302,786
1,148,067
1,134,018

Evaluation of call cost will be based on fiscal year 2004 actual usage of the IDOC
Inmate phones.
Proposers must describe how time is measured for billing purposes. Explain how
partial minutes are billed. This billing for partial minutes will be used in the call
cost scoring.
PCS agrees and will comply.
PCS Proposal At A Glance
PCS presents to the State of Idaho Department of Corrections the
following offer and options:
•

Consumer cost reductions from 4% to 69% based on call type.

•

The option of “time and distance” or “flat rate” calling costs for
the citizens of Idaho.

•

The option of commissions of 45%, 50% and 55% based on call
type.

•

The option of a franchise fee linked to either call volume or
inmate population to ensure automatic and traceable adjustments
over time.

Partial Minute Billing:
Under the variable rate option calls can be rounded to the next one-half
minute (30 seconds) or to the nearest whole minute.
Cost and Revenue Objectives:
Public Communications Services (PCS) is pleased to present a
creative set of alternatives to the Idaho Department of Corrections.
These offerings are designed around the following five core features:

4-2

State of Idaho Department of Correction
Inmate Phone Service RFP01695

First,
Second,
Third,
Fourth,
Fifth,

meet the mission of the Department of Corrections
treat all inmates and their families equally
provide inmates and their families with consumer choice
provide real and tangible consumer value
reliable and predictable revenues

Consumer Choice and Value:
There are two key elements to consumer satisfaction. First the consumer
must have the option of choice. PCS is pleased to present the citizens of
Idaho, both free and incarcerated, with a tiered set of true choices
between collect, pre-paid collect and debit services with meaningful rate
reductions within each category.
Second, consumers must perceive real value where they not only have
choice but where they can purchase more service for fewer dollars based
upon the choices they make, and there is an underpinning sense of
equality for all.
Our proposed costs to consumers are simple, easily understood, easy to
budget and check, and, perhaps most importantly, are fully disclosed.
With PCS there are no hidden fees or additional charges such as “billing
fees” that so many other providers charge and do not include in their
commission payments.
Equitable Treatment and DOC Mission Accomplishment:
One of the most interesting aspects of inmate telephone services is that
the traditional telecom model for costing a call is directly contrary to the
accomplishment of the correctional mission. Said simply, inmate
telephone calls are traditionally priced based on such factors as time of
day and distance called. Thus, while the correctional mission is to treat
all inmates equally, traditional telephone costs reward inmates and
families who live closest to an institution and punish those who live most
distant from the institution.
Additionally traditional inmate call pricing encourages inmates and their
families to engage in fraudulent behavior through the establishment of
local number and call forwarding services as they attempt to decrease
costs and increase value. This too is behavior counter to the correctional
mission.
Therefore we have not only provided a traditional costing model but have
added a flat rate for a 30 minute call to anywhere in the State of Idaho at
any time of the day or night.

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

The rate tables specified in Section 04 are provided under the following
tabbed Subsections: 04.A, 04.B and 04.C. These contain the following
information:
OPTION ONE
Subsection 04.A

Time and Distance Option including:

This table uses the traditional “time and distance” ratings and
shows the expected gross revenues, rates and estimated cost
savings to the citizens of Idaho by call type of collect, pre-paid
collect and debit.

OPTION TWO
Subsection 04.B

Flat Rate Option including:

This table uses an equal treatment for all “flat rate” and shows the
expected gross revenues, rates and estimated cost savings to the citizens
of Idaho by call type of collect, pre-paid collect and debit.
OPTION THREE
Subsection 04.C

Franchise Fee Option including:

This section provides the additional option of a Franchise fee linked to the
rate selection by the State and adds an automatic adjustment in
anticipation of population changes based on either:
•
•

Franchise Fee Option by Inmate Population or
Franchise Fee Option by Inmate Call Volume

Either of these options may be selected as the State desires.
NOTE: Each Subsection constitutes an offer to the State of Idaho. The PCS
proposal contains standardized rates system-wide but additionally provides
consumer incentives for the use of pre-paid and debit services through price.
Therefore there is a single rate for collect, a single rate for pre-paid and a single
rate for debit calls. Please see Subsections A and B for rate details.

04.01.01 Rate Basis
Charges for telephone calls are generally based on tariffs, regulations and/or
standards as well as the Vendor cost related to providing the service. These may
be under the jurisdiction of the Idaho Public Utilities Commission or the Federal
Communications Commission. If this is the basis for rate calculations, used
above, and the basis is reduced, any reduction must be immediately passed onto
the called parties accepting calls under this contract. Such reductions must be
provided to the Department in writing.

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

Please confirm that any rate reductions will be incorporated into the rate structure
of this contract and the method of notification that will be used. Also provide a
listing of applicable tariffs, regulations and standards used in the calculation of
the proposed rates.
All tariffs, standards, and regulations utilized in pricing calculations must be
provided in the RFP response.
PCS agrees and will comply.
In the event of rate reductions, these will be incorporated and passed
through the consumer. Existing tariffs were not used in our calculations.
However, tariffs will be provided, if desired. All standards and regulations
of the FCC and Idaho PUC are included herein by reference but are not
attached due to volume.
Reduced, Unambiguous & Fully Disclosed Rates:
PCS is pleased to present the following rate alternatives based upon the
standard 30 minute call durations. Additionally PCS does not add
additional bill rendering or other fees to these calls but the rates
presented are in-fact the true costs to consumers.
No Bill Rendering and Other Fees:
The calling costs presented on the following pages are the full and
complete costs to the consumer. For example PCS has no bill rendering
fee on collect calls nor do we charge the consumers fees for the creation
of pre-paid calling accounts, fees for remote banking, fees for the use of
credit cards or any other fees.
Full Value and Fully Commissionable Revenues:
The State of Idaho shall receive full commissions on full revenues from
PCS.
Bill rendering and other fees tend to have two impacts. First they increase
the cost to consumers. Second, as these fees are traditionally outside
the direct call costing revenues they generate no commission for the
State and thus devalue the commission offerings.
Stated directly, a service that charges a bill rendering or other fees and
offers a commission of (for example) 45% on the cost of calls and does
not commission these fees is in reality (for example) offering a true
commission on revenues of 42%.

4-5

State of Idaho Department of Correction
Inmate Phone Service RFP01695

04.01.02 Franchise Fee/Commission
There shall be no charges whatsoever to the State for the proposed inmate
phone services. The successful Contractor assumes responsibility for any fees,
billing and collections, and fraudulent billing and un-collectible charges
associated with the Inmate Phone System.
The proposed percentage of commission payable shall be based on the
Contractor’s gross billings for all calls placed on the Inmate Telephone System.
Total gross billings shall, for the purpose of this RFP, be defined as total calls
placed on or through the Inmate Telephone System, billed at the rates authorized
under the Contractor’s proposal, as accepted by the State or as subsequently
modified pursuant to the proposal specifications. Commission checks shall be
submitted to the Idaho Department of Correction on a monthly basis, and shall be
accompanied by a report which itemizes by facility, minutes of usage, and
number of calls, gross billings and commission for each telephone.
The State will also consider a monthly franchise fee payment in lieu of
commission. The franchise fee shall be a fixed fee payable to the department on
a monthly basis. The franchise fee will be fixed for the initial term of three (3)
years of the contract. Future adjustments will be negotiated with the contractor,
IDOC, and the State of Idaho Division of Purchasing.
Call detail records must be provided for all calls placed on or through the Inmate
Telephone System. All such calls must be billed in the manner outlined above.
No deduction or credit shall be given for any expenses, allowances, bad debts,
disconnects, or for billed calls which for any reason are not collected or which
otherwise do not result in revenue to the Contractor.
All copies of the cost proposal must be in a separate sealed envelope from
the remainder of the proposal, and no price information may appear in any
other proposal section.
PCS agrees and will comply.
The precise commission offerings with corresponding rate scales are
contained in Subsections A & B of this volume.
PCS is pleased to offer a franchise fee alternative. This alternative is
presented in Subsection C reflecting the call rating option elected by the
State and proposing the fee be linked to either inmate population or call
volumes as the Department may desire.
For a detailed review of call detail reports, please see Volume 1, "Usage
Reports", Section 03.07.01, pages 25-33.

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

Subsection 04.A
TIME AND DISTANCE RATES
Commission Offering

45.00% Collect

50.00% Pre-Paid Collect

55.00% Debit
Projected Monthly Gross Revenues: $223,965

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

TIME AND DISTANCE OPTION with COST COMPARISONS
NOTE: Taxes for collect calls are assessed and billed to the called party.
All Debit calls include any taxes and FCC/PUC fees.

VARIABLE RATE: COLLECT
COST REDUCTION
Call
Type
Local
IntraLATA
InterLATA
Interstate

Connect
Rate
$1.30
$1.40
$1.50

Per Minute
Rate
$0.10
$0.14
$0.15

Number
Of Calls
258,493
122,980
66,064

Set Up
Charge
$336,040.90
$172,172.00
$99,096.00

Number
Of Minutes
6,008,363
2,302,786
1,148,067

Per Minute
Rate
$600,836.30
$322,390.04
$172,210.05

$3.60

$0.85

65,965

$237,474.00

1,134,018

$963,915.30

From Current Rate
%
$
-4.44%
$51,699
-10.40%
$79,937
-46.67%
$346,836
-5.06%

$102,246

VARIABLE RATE: PRE-PAID COLLECT
COST REDUCTION
Call
Type
Local
IntraLATA
InterLATA
Interstate

Connect
Rate
$1.25
$1.35
$1.45
$3.40

Per Minute
Rate
$0.10
$0.13
$0.14
$0.75

Number
Of Calls
258,493
122,980
66,064
65,965

Set Up
Charge
$323,116.25
$166,023.00
$95,792.80
$224,281.00

Number
Of Minutes
6,008,363
2,302,786
1,148,067
1,134,018

Per Minute
Rate
$570,794.49
$306,270.54
$163,599.55
$850,513.50

From Current Rate
%
$
-8.89%
$168,020
-14.56%
$645,645
-49.11%
$102,399
-15.50%
$313,334

VARIABLE RATE: DEBIT
COST REDUCTION
Call
Type
Local
IntraLATA
InterLATA
Interstate

Connect
Rate
$1.20
$1.30
$1.40
$3.00

Per Minute
Rate
$0.09
$0.12
$0.13
$0.65

Number
Of Calls
258,493
122,980
66,064
65,965

Set Up
Charge
$310,191.60
$159,874.00
$92,489.60
$197,895.00

Number
Of Minutes
6,008,363
2,302,786
1,148,067
1,134,018

Per Minute
Rate
$513,715.04
$275,643.48
$147,239.59
$737,111.70

From Current Rate
%
$
-16.33%
$189,992
-21.74%
$167,130
-53.36%
$396,549
-26.59%
$537,615

4-8

State of Idaho Department of Correction
Inmate Phone Service RFP01695

Subsection 04.B
FLAT RATE
Commission Offering

45% Collect

50% Pre-Paid Collect

55% Debit

Projected Monthly Gross Revenues: $229,519

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

FLAT RATE OPTION with COST COMPARISONS
NOTE: Taxes for collect calls are assessed and billed to the called party.
All Debit calls include any taxes and FCC/PUC fees.

COST
REDUCTION

FLAT RATE: COLLECT
Call
Type
Local
IntraLATA
InterLATA
Interstate

Connect
Rate
$3.80
$3.80
$3.80

Per Minute
Rate
$0.00
$0.00
$0.00

Number
Of Calls
258,493
122,980
66,064

Set Up
Charge
$982,273.40
$467,324.00
$251,043.20

Number
Of Minutes
6,008,363
2,302,786
1,148,067

Per Minute
Rate
$0.00
$0.00
$0.00

$4.50

$0.85

65,965

$296,842.50

1,134,018

$0.85

COST
REDUCTION

FLAT RATE: PRE-PAID COLLECT
Call
Type
Local
IntraLATA
InterLATA
Interstate

Connect
Rate
$3.60
$3.60
$3.60

Per Minute
Rate
$0.00
$0.00
$0.00

Number
Of Calls
258,493
122,980
66,064

Set Up
Charge
$930,574.80
$442,728.00
$237,830.40

Number
Of Minutes
6,008,363
2,302,786
1,148,067

Per Minute
Rate
$0.00
$0.00
$0.00

$4.35

$0.80

65,965

$286,947.75

1,134,018

$907,214.40

Interstate

From Current Rate
%
$
-20.00%
$232,644
-42.40%
$325,897
-68.00%
$505,390

COST
REDUCTION

FLAT RATE: DEBIT
Call
Type
Local
IntraLATA
InterLATA

From Current Rate
%
$
-15.56%
$180,945
-39.20%
$301,301
-66.22%
$492,177

Connect
Rate
$3.40
$3.40
$3.40

Per Minute
Rate
$0.00
$0.00
$0.00

Number
Of Calls
258,493
122,980
66,064

Set Up
Charge
$878,876.20
$418,132.00
$224,617.60

Number
Of Minutes
6,008,363
2,302,786
1,148,067

Per Minute
Rate
$0.00
$0.00
$0.00

$4.25

$0.75

65,965

$280,351.25

1,134,018

$850,513.50

From Current Rate
%
$
-24.44% $284,342
-45.60% $350,493
-69.78% $518,602

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State of Idaho Department of Correction
Inmate Phone Service RFP01695

Subsection 04.C

FRANCHISE FEE OPTION

4-11

State of Idaho Department of Correction
Inmate Phone Service RFP01695

FRANCHISE FEE OPTION
Public Communications Services (PCS) is pleased to present a creative set of
alternatives to the Idaho Department of Corrections in respect to a franchise fee.
These offerings are designed to facilitate easy monitoring and audit using data common
to the Department and/or immediately available to the Department.
Franchise Fee By Population:
Inmate population drives every aspect of correctional planning, budgets and operations.
PCS therefore proposes a franchise fee option, as follows, based on inmate population
and linked to either the variable or fixed rate option as the State may elect.

FRANCHISE FEE OPTION
BY POPULATION
IDOC

Franchise Fee

Franchise Fee

Population

Variable Rate Model

Fixed Rate Model

6200

$1,000,308

$1,025,665

6400

$1,032,576

$1,058,751

6600

$1,064,844

$1,091,837

6800

$1,097,112

$1,124,923

7000

$1,129,380

$1,158,009

7200

$1,161,648

$1,191,095

7400

$1,193,916

$1,224,181

7600

$1,226,184

$1,257,266

7800

$1,258,452

$1,290,352

4-12

State of Idaho Department of Correction
Inmate Phone Service RFP01695

Franchise Fee By Call Volume:
This call volume model assumes relatively consistent inmate behavior and relatively
consistent DOC polices regarding access.

FRANCHISE FEE OPTION
BY CALL VOLUME
IDOC

Franchise Fee

Franchise Fee

Call Volume

Variable Rate Model

Fixed Rate Model

537600

$1,000,308

$1,025,665

554942

$1,032,576

$1,058,751

572286

$1,064,844

$1,091,837

589628

$1,097,112

$1,124,923

606970

$1,129,380

$1,158,009

624312

$1,161,648

$1,191,095

641654

$1,193,916

$1,224,181

658996

$1,226,184

$1,257,266

676338

$1,258,452

$1,290,352

Franchise Fee Administration:
Franchise fees can be paid monthly, quarterly, semi-annually, annually or linked to a
commission base and then “trued-up” at the close of each fiscal or calendar year. PCS
does not propose to know what the best options are for the State of Idaho but proposes
that such details will be resolved during negotiations.
We look forward to this and all opportunities to work with the Idaho Department of
Corrections.

4-13