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SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
SERVICES AND PRICES/COSTS
Services Being Acquired
The Contractor shall provide a statewide turnkey Offender Telephone System (OTS) for the
Texas Department of Criminal Justice (TDCJ). This Contract is a revenue based Contract, as
stipulated by Subchapter B, Chapter 495, Texas Government Code, Section 495.027, INMATE
PAY TELEPHONE SERVICE.
The Contract Term will consist of a Base Period of seven (7) years (September 1, 2018 through
August 31, 2025) and three (3) additional two (2) year renewal Option Periods.
B.1.2 Pricing Instructions
Commission revenues shall be calculated as a fixed percentage based on the gross monthly
call revenues for all calls completed by Offenders. Commission revenues for eMessaging shall
be calculated as a fixed percentage based on monthly postage used for all eMessages and
attachments sent to Offenders. All commissions the State realizes from the OTS are to be
described in detail in this item including the percentage of the commission. The Contractor shall
pay the Department monthly, a commission of not less than forty percent (40%) of Gross
Commission revenue begins to accrue when the first completed telephone call is made by an
Offender. Only completed telephone calls are to be billed from the time that the end user accepts
the call and conversation begins. Incomplete calls are not billable.
Should any relevant entity (e.g. Federal Communications Commission (FCC), the Public Utilities
Commission of Texas (PUCT)) or legislative entity modify, eliminate, or establish additional
rates, fees or other charges that are allowed or required to be collected for the services provided
by Contractor during the term of the Contract; the Contractor shall notify the Department in
writing at least sixty (60) business days prior to implementation of any required or permitted
rates, fees, or other charges. Notification shall include documentation from the appropriate
regulatory or legislative entity detailing the changes.
Should Federal or State statutes or regulations change in the future either reducing or
eliminating commissions or reducing the rates, fees or other charges that are allowed or required
to be collected by the Contractor for Offender calling services provided under this Contract, the
Department and Contractor will renegotiate such commissions and/or Contract rates, fees or
other charges to preserve the economic benefits of this Contract.
Should a system failure prevent the accumulation of call data resulting in the loss of records
reflecting revenue, commission revenue shall be derived based on historical data.
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