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State of Nebraska
Request for Proposal for Co~tractual Services
Inmate Calling Services RFP # 2505Z1
Section 7: Cost Proposal
We believe inmates should be able to talk with family and friends at a reasonable price. Therefore,
PCS is pleased to offer the following low rates to NDCS inmates and their loved ones, as depicted
in the table below (Figure 5.1: Calling Rates):
Fig ure 5.1: Calling Rates
*The above rates do not include any applicable federal, state or loeaf taxes, regulatory fees, or surcharges.
Additionally, international calling is available through the Debit calling option at a rate of $0.50 per
minute, with a $0.70 connect fee·,
These rates represent an average savings of 39% over the State of Nebraska's current inmate
telephone service.
pes's Simplified Rate Structure
PCS is proposing a low and simplified rate program for all calling options. For all calling within the
United States, the connect fee for Collect calling is $0.70, and it drops to $0.50 for Prepaid Collect
and Debit calling. PCS will charge no per-minute fee for local calls; all other domestic calling will
incur a flat $O.05-per-minute charge.
This program will create equal, equitable, and easy-to-understand rates for all inmates.
Fair Rates and pes's Full Disclosure Policy
PCS frequently offers the lowest calling rates in the industry, because we believe that inmates
should be able to communicate with loved ones by making calls that are reasonably priced.
Research shows that communications between inmates and their families and friends improves
inmate morale and lowers the rate of recidivism. Inmate consumer advocacy groups like CURE
have long supported PCS in our efforts to propose fair and reasonable rates to facilitate this
communication. We are also one of the biggest proponents of providing quality customer care to
end users and the inmates using our services.
Recently in the Inmate Telecommunications Industry, there have been several vendors that have
added extra fees to collect call recipient bills. These fees are often referred to as:
Single Bill Fees
USF Recovery or USF Admin Fees
Bill Rendering Fees
Bill Statement Fees
Cost Proposal
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State of Nebraska
Request for Proposal for Contractual Services
Inmate Calling Services RFP # 2505Z1
PCS does not charge these additional fees. They are not government sponsored; they are only fees
added to customers' bills in an attempt to increase the revenue recovered from collect call clients.
For example, the sample bill below shows a May Bill Statement Fee and a May USF Admin Fee, as
charged by some other vendors. These fees are imposed in addition to the Itemized Call Charges,
the Local/State Tax, and the Federal Universal Service Fund.
Current Charg es
ltemhed Cbarguand Credits
aem
No. Date Description
inii;.r;;&half of GLOBAl..TELlllJf\lK
Uuestinns? Call:
·::f
1 800 844-5591
CJmr!J~r
91662.4-2919
1. 5-10
MAVRILLSTATEMENTFEE
2. 5-22
MAY FEGERAlUN IV SRVC fUND CHRG
3. 5·2.2
MAYUSFADM!N FEE
Total Char-gesfar 9lU@' Mil
.$9
a.!i4
l.54
TotaUor GLOBALTEL*UNI
Tot1IJltemized Ciunyes an:rJ Credits
3.54
long Distanr,:.D
Item
No. Oate Time Place. CaUed rlJumber
Coos
Min
(lSO-
1.0
Silled 011 BehaIfof GLOBAL Ta..,UIlK
Uue.sfio-ns'! Cal: 1 800:844-659\
5."/
CIlargesfor 9Hili!:t MO
kemi2ed calls
4.5-10 1.23112 ROCIlESTER,... S$5 295-1200
Key to Calling Codal>
B Collect
o Oper-Oi5l1 Rates
D Dav
8.68
Total CO RR ECTtO NAL BilLING
The Provider above assesses a charge of $5.14 for a one-minute Interstate Collect Call made from
a facility in Rochester, NY. However, the provider also adds a $1.95 Bill Statement Fee and a $0.99
USF Admin Fee, which adds an additional $2.94 to the cost of the call. In effect, the total charge for
a one-minute phone call is increased by $2.94 - and these extra fees often are not disclosed to the
correctional facility not disclosed to the caffed party at the time the caff is made.
These charges would not appear on a PCS bill.
PCS has adopted a FuJI Disclosure Policy, because we believe in open, honest, and fair
communication with our clients and their ITS users. In terms of rates and fees, our Full Disclosure
policy means pes does not charge any undisclosed fees or surcharges to inmates or inmates'
Cost Proposal
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State of Nebraska
Request for Proposal for Contractual Services
Inmate Calling Services RFP # 2505Z1
friends and families. These fees can be a rude surprise to the inmates' families when they find out
that the costs of the calls they have accepted are more than quoted.
In compliance with the State's requirements, PCS will reduce our credit card processing fee to no
more than 5% of each total transaction. PCS will not charge additional fees for any other payment
method, other than insufficient funds charges, when appropriate.
How
pes Computes Rates and Other Charges
PCS computes rates by analyzing cost information related to the specific call type. For each call
type (Collect, Prepaid Collect, and Debit), there may be distinct cost elements related to the way the
call is processed, network costs, and administrative processes, as well as fraud and unbilJables.
For example, PCS will analyze the following cost elements for Collect calls to determine the
appropriate rate:
•
•
•
•
•
•
•
•
•
Local Exchange Carrier Fees
Bill Processing Costs
Unbillables
Network Termination Costs
Network Maintenance Costs
Fraud
Hardware Port Costs
General G&A Costs
Site Administrator and Local Support
Once PCS has determined the baseline costs for the average call, PCS will apply a reasonable
business return and set the call rate. Rates are then checked against the state rate caps to ensure
compliance, and they are analyzed for competitive appropriateness.
The same process is used for setting rates for Prepaid and Debit calls; however, some cost
elements may not apply, while other new elements will. For example, when considering Debit call
rates, PCS will not include unbillable costs, as they do not apply. Similarly, when considering
Prepaid costs, credit card processing fees must be considered in the cost evaluation, as well as
operator call center costs.
In all cases pes will evaluate proposed costs to set rates within the context of appropriate market
pricing, PRC or PUC guidelines, and mandated rate caps. PCS will always file rates with the
appropriate state regulatory body when required.
Cost Proposal
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State of Nebraska
Request for Proposal for Contractual Services
Inmate Calling Services RFP # 2505Z1
pes
How PCS Maintains Costs for the Term of the Contact
PCS intends to maintain the proposed rates during the term of the agreement by carefully
managing costs (identified above) to the extent possible and by monitoring regulatory mandates
that affect rates.
The State of Nebraska Department of Correctional Serv'lces will receive a monthly summary report
identifying the total number of calls made by the inmates in the NDCS and all costs charged. This
will help to ensure that costs are maintained throughout the life of this agreement
Identifying Call Cost Elements
Total call costs will be computed using three charges.
•
•
•
Call Connect Charges
Call Per-Minute Charges
Taxes based on Connect and per minute Charges.
Taxes include those imposed by city, county, state, and federal governing bodies.
Cost Proposal
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