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regan
Department of Administrative Services
John A. Kitzhaber, M.D., Governor
Office ofBusiness Administration
155 Cottage Street NE U90
Salem; OR 97301-3972
(503) 378-2350
FAX (503) 373-1273
February 4, 2004
Owest Communications
clo Dana Alixander, Sales Manager
1600 7th Avenue
Room 2604
Seattle, WA 98191
RE:
Amendment # 2 for the Inmate and Payphone Equipment and Services and
Public Services Payphone Contract
Enclosed you will find the approved copy of Amendment # 2 for the contract for Inmate and
Payphone Equipment and Services and Public Services Payphones. I appreciate the time,
consideration and hard work that was done by the Owest team, in addition to the members of the
State team, to complete this amendment in the required time frame.
•
One housekeeping item noticed in processing this amendment was the missing signature area
for Owest on the sheet with the heading "Confidential Pursuant to ORS 192.502(5), copy
attached. This was apparently missed the amendment documents were e-mail to Owest.
Please have an authorized Owest representative sign the page on the signature area we have
prepared, and return the page to my attention.
Again, thank you for assisting to bring this matter to a successful resolution.
Sincerely,
~uJ~
Larry Wright, Contracts Manager
DAS/OBA Contract Services
155 Cottage Street NE, U90
Salem, OR 97301-3972
Phone: 503.378.2631
Fax:
503.378.5445
E-mail: larry.w.wright@state.oLus
cc:
Alan Wight, DOJ
Darin Rand, IRMD/ENS
Brad Halvorson, DOC
Shannon Morton, OSA Contract Srvcs.
CONFIDENTIAL PURSUANT TO ORS 192.502(5)
Reference is made to the Contract for Imnate and Payphone Equipment and Services and
Associated Imnate Monitoring & Recording Equipment and Services dated as of July I,
2000 (the "Contract") between US WEST COMMUNICATIONS, INC. and the STATE
OF OREGON, acting by and through its DEPARTMENT OF ADMINISTRATIVE
SERVICES (hereafter "DAS"), and to Amendment No.2 to Contract dated
-Jia,I"l"""""l a<s
, 200':/, between QWEST COMMUNICATIONS, INC., successor in
interest to US WEST COMMUNICATIONS, INC. (hereafter "Contractor") and State.
Pursuant to Section 2.1 of Contract, Contractor and DAS hereby confirm and agree that
the attached are Sections 2.1.2.2 and 2.1.2.3 of Appendix 2.1 of Contract, that the
attached are part of Contract and are incorporated by reference into Contract, and that the
attached shall be held by the State of Oregon, Department of Corrections ("DOC") as
information or records of DOC entitled to confidential treatment under ORS 192.502(5)
and otherwise in accordance with Section 2.1 of Contract.
L
Dated as of ;]'«.,1....... '1 .;t'i ,20(jf.
STATE OF OREGON
STATE:
MINISTRATIVE
:c~"",./j
STATE OF OREGON
BY: DEPT. OF ADMINISTRATIVE
SERVICES
PURCHASING SECTION
By
H/"-udeq,..!.d
r~;SS;rt..PO
State ofOregon Purchasing Manager
BY: DEPT. OF ADMINISTRATIVE SERVICES
PUR
S G SECTION
Qwest:
By:
----------
Date:
_
AMENDMENT NO.2
TO JULy 1, 2000 CONTRACT FOR INMATE ANDPAYPHONE
EQUIPMENT 1\1\'D SERVICES AND PUBLIC SERVICES PAYPHONES
This amendment NO.2 to July 1, 2000 Contract for Inmate and Payphone
Equipment and Services and Public Services Payphones is made as of this 29th day of
January, 2004, by and between State of Oregon, acting by and through its Department of
Administrative Services (hereafter "DAS" or "DAS IRN1I)") and Qwest Corporation,
successor in interest to U S West Commuuications, Inc. (hereafter "Qwest"):
RECITALS
1. DAS and US West Commuuications, Inc. entered into that certain contract
entitled Contract for Inmate and Payphone Equipment and Services and
Associated Inmate Monitoring & Recording Equipment and Services, as of July 1,
2000 (hereafter "Contract").
2. US West Commuuications, Inc., was subsequently acquired and merged into
Qwest, Inc. Qwest Communications, Inc., a Colorado corporation (hereafter
"Contractor"), is the successor in interest to US West Commuuications Inc., and
is duly authorized to perform the contract and to enter into this amendment NO.2.
3. DAS and Qwest want to amend Contract in the respects set forth in this
Amendment No.2; except as amended herein, the Contract will remain in full
force and effect.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES
AND COVENANTS MADE IN TIDSAMENDMENT, THE PARTIES AGREE AS
FOLLOWS:
A) The first sentence ofthe eighth paragraph of Section 2.1 is hereby deleted in its
entirety, and replaced with the follo""ing:
"The VAC Inmate Calling System and the Monitoring and Recording Services are
more fully described in Sections 2.1.2.2 and 2.1.2.3 of Appendix 2.1, which shaU
be delivered to DOC and held by it as information or records ofDOC entitled to
confidential treatment under ORS 192.502(5). Contractor wiU provide State with
the VAC System equipment and services described in amended section 2.1.2.2
and 2.1.2.3 at aU DOC locations in the State of Oregon. The VAC Systems shall
be instaUed and made fully operational at all ORDOC sites by dates to be
mutually agreed upon by ORDOC and Qwest at finalization ofthis amendment.
At a minimum, the VAC equipment shall have the same features at each location
as currently are in operation at CCCF; however, DOC may have custom
applications at various facilities, as a result of different services being provided by
different service providers. Contractor will provide any features that are
necessary to bring the service and equipment levels up to those that are in
operation at CCCF. Contractor will also provide the services that are described in
amended Section 2.1.2.2. T-Netix shall continue to be an eligible subcontractor
for purposes of Section 1.4 of the Contract.
B) Section 4.1 of the Contract is amended to delete the second sentence of Section
4.1, and to substitute therefore the following provision:
"The renewal term after the initial term shall be for six years, commencing at
January I, 2004 and continuing through December 31,2009, on the same terms
and conditions as contained in Contract, except where Contract is changed by this
Amendment No.2. In addition, Contract shall automatically renew after the
extension term for an additional six months, on the same terms and conditions as
are contained in Contract as it exists immediately before the end of the six year
renewal term, unless either party delivers, via certified mail, written notice to the
other party of its desire to terminate Contract, sent at least one hundred eighty
days (180 days) prior to the last day ofthe then current Term of Contract."
C) In Section 2.U.I(b) of Appendix 2.1, the following sentence is deleted in its
entirety:
"The foregoing notwithstanding, except with respect to DOC facilities, unless
otherwise agreed to by Contractor, the number of new Pay Phones which
Contractor shall be required to install shall not exceed (i) during the Initial Term,
thirty (30) Pay Phones, and (ii) during the Extended Term, if any, ten (10) Pay
Phones per each twelve (12) month period during the extended Term."
and replaced with the following:
The parties agree to annually review the installed Pay Phone base and determine a
target number of payphones which can be removed. The number of payphones to
be removed shall be no more than 10% of the base of installed payphone base in
extension years 1-3 and no more than 5% ofthe installed payphone base in years
4-6. This base is to be calculated annually at the start of each calendar year.
Upon request by a State agency, a particular phone targeted for removal that is
necessary to operations may be maintained in service of said phone by paying
semi-public rates. The Contractor agrees to install no more than ten (10) new Pay
Phones annually during the extended term; provided, however, that Contractor
shall install additional Pay Phones if the State agrees to pay semi-public rates on
the additionally installed Pay Phones. Should ENS or any OUS campus request
that an existing Pay Phone be moved to a new location, Contractor shall effect the
move, unless such move would be unduly expensive or substantially increase the
risk of vandalism, and such move shall not be considered a new installation for
purposes of this paragraph."
D) Section 2.1.2.1.1 of Appendix 2.1 is superseded in part by amended section
2.1.2.1.1, which is attached hereto. Amended section 2.1.2.1.1 describes the
telephone stations equipment that Contractor will continue to provide, as well as
the telephone stations equipment that Contractor will remove, by the dates set
forth; except as amended, section 2.1.2.1. I remains in full force and effect.
E) Section 2.1.1 of Appendix 2.1 is replaced in part by amended section 2.1.1, which
is attached hereto. Amended section 2.1.1 shows in tabular fo= the existing
payphones. No payphones at DOC facilities may be removed.
F) The following is added as Section 2.1.1 (c):
Those payphones that are the subject of disagreement will continue to be treated
as public payphones and will not be converted by Contractor to semi-public
payphones without the approval of the appropriate DAS ENS or OUS campus
contact person, or until such time that DAS ENS has dete=ined that they may be
removed."
The primary contact person at each OUS campus that will meet with Contractor
and discuss payphone removal issues are the following:
University of Oregon-Jane Nelson, 541-346-1024, jnelson({iJuoregon.edu
Oregon State University-Shay Dakan, 541-713-3500, Shav.DakanIcLJorst.edu
Portland State University-Tim Johnston, 503-725-2776, johnstontla'Pdx.edu
Southern Oregon University-Tess Dunaway, 541-552-6300, dunawav@sou.edu
Eastern Oregon University-MarY Taylor, 541-962-3606, mtavlor@eou.edu
Western Oregon University-Teresa Bybee, 503-838-8010, bybeetla)wou.edu
Oregon Institute of Technology-Agnes Box, 541-885-1728, boxa@oit.edu
GeneralOUS Contact (anyone of3)Tim Johnston, 503-725-2776, jolmstont@pdx.edu
Shay Dakan, 541-713-3500, Shay.Dakan@orst.edu
Dave Barta, 541-346-1012, dbarta@uoregoll.edu
The primary contact person at DAS ENS that wiIl meet with Contractor and
discuss payphone removal issues is Darin Rand 503-378-3366,
darin.rand@.state.or.us
G) Section 2.1.2.2 of Appendix 2.1, entitled "T-NETIX Inmate Calling" System, is
deleted in its entirety and replaced with the amended Section 2.1.2.2 of Appendix
2.1, entitled "VAC Inmate Calling System," attached hereto.
H) Section 2.1.2.3 entitled Inmate Call Monitoring and Recording System is replaced
in its entirety by amended Section 2.1.2.3, attached hereto. Amended section
2.1.2.3 describes the call monitoring and recording systems that will be installed
at various DOC sites across the State of Oregon. Amended section 2.1.2.3 has
been delivered to DOC to be held by DOC as information orrecords of DOC
entitled to confidential treatment under ORS 192.050(5), which document is
incorporated by this reference.
I) Appendix 3.1, which describes rates and surcharges that shall be charged to users
of Pay Phones and Inmate Phones (which in the case of collect calls, shall be the
recipients of the calls), has been reviewed at the end of the initial term as required
under section 3.1 of the contract, and Appendix 3.1 is replaced in its entirety by
Amended Appendix 3.1., a copy of which is attached hereto and by this reference
made a part hereof.
J) Appendix 3.2 is replaced in its entirety by this provision: "Contractor shall pay to
DOC for each of the last two quarters of calendar year 2003 the sum of$750,000
per quarter. For each year of the extension term, Contractor shall pay to DOC a
minimum of$3 million per year, in payments of$750,000 per quarter. The
minimum commission will apply and be paid in all years in which gross revenues
from payphones and other equipment provided by Qwest to DOC is $6 million or
less. At the end of every year (January 1 through December 31), Contractor will
total the gross revenues generated from all Contractor-provided equipment, in all
DOC facilities throughout the State of Oregon. Qwest will pay commissions to
DOC for gross revenues that exceed $6 million, based on the following formula:
a. The yearly revenue will be broken down by the percent of the type of call,
into percentage of collect calls, percentage of debit calls, and percentage
of prepaid debit calls
b. If the Gross Billings by Contractor for the period are over $6 million, the
additional commissions will be paid by Contractor to DOC based on the
percentage of the type of calls. For example, if there is $6,500,000 in
Gross Billings, the additional commissions will be paid on the $500,000,
as follows:
1.
ll.
111.
The percentage of additional billings that represent collect calls
will be paid at a 50% commission
The percentage of additional billings that represent calls initiated
as prepaid debit will be paid at 60% commission
The percentage of additional billings that represent debit calls will
be paid at 60% commission
VAC equipment will be promptly installed by Contractor so as to enable both
parties to best reach their revenue goals.
VAC will track the revenue received for Debit accounts, and will forward refunds
to Oregon DOC Inmate Trust Section. VAC will process remaining account
balances for paroled inmates and issue to DOC Inmate Trust a batch check twice
each month.
K) Appendix 6.13 shall be amended to eliminate Dictaphone and Sprint as eligible
subcontractors. Value Added Communications (VAC) will be added to Appendix
6.13 as an eligible subcontractor to Qwest.
L) ENS shall handle all orders relating to payphones except for those on DOC or
OUS facilities. DOC and OUS shall work directly with Contractor to place orders
or handle issues relating to payphones on their facilities.
M) Orders from ENS, DOC or OUS may be faxed or e-mailed to Contractor;
provided that in the event an order is sent by fax, an e-mail notification shall also
be sent to the Contractor. The e-mail address to be used for both purposes is
psinmat@gwest.com. Upon receipt of an order, Contractor will send an
. ackuowledgment to the submitting entity by means of return e-mail and fax.
N) Qwest Corporation affirms that all promises, terms, conditions, and warranties
contained in Contract are applicable to it, as though it was the original contracting
entity, and that it is duly organized and qualified to do business in the State of
Oregon, and will continue to be duly organized and qualified in the State of
Oregon during all renewal terms of Contract. Qwest Communications, Inc. will
notify State of Oregon of any proposed change of name, or transfer of assets or
obligations.
Qwest~
By
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State of Oregon
By-----h1.~",;;:z-~~~~_Date:---=-zdZ____t4_'~"--",.=&+1--..
DAS 0ftA:>contract,Manager:
By:
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'ons Authorized Signature
V~;L.¥~~~~~Date:
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PrIor/
roved by the DAS State Procurement Offices:
By: N/A-D~'11Ju\ f*»'4 s-~ Date:
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