DocuSign Envelope ID: AFA335FF-4876-46CC-BEA3-34729FB1632D



6/7/2021

STATE OF CALIFORNIA — DEPARTMENT OF CORRECTIONS AND REHABILITATION

GAVIN NEWSOM, GOVERNOR

ENTERPRISE INFORMATION SERVICES
OCIO - ITAU
1900 Birkmont Drive, Rancho Cordova, CA 95742

June 7, 2021
JPay Inc.
12864 Biscayne Blvd, Ste. 243
Miami, FL 33181
Dear Ms. Samuels:
AGREEMENT NUMBER: C5607126 – AMENDMENT 2
TERM OF AGREEEMENT: JULY 1, 2017 THROUGH JUNE 30, 2022.
SERVICE: LOCKBOX AND DEBIT CARD SERVICES
Enclosed for your files is a fully executed Agreement regarding the services(s) described
above with the California Department of Corrections and Rehabilitation (CDCR).
Amendment 2 Revisions:



Amendment 2 - extends the end date from June 30, 2021 to June 30, 2022.
IT Contract Administrator Change to Robin Adams.

All other terms and conditions remain the same.
If you have any questions or need assistance, contact me at (916) 594-1011.
Sincerely,

Robin Adams
Robin Adams
IT Specialist I
EIS OCIO – IT Acquisitions Unit
California Department of Corrections & Rehabilitation

JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

A. INTRODUCTION
The Contractor shall provide to the California Department of Corrections and Rehabilitation
(CDCR) cost-free Lock Box Services for expedient transmittal of funds to inmate trust
accounts on behalf of inmates that are housed in one of CDCR Adult Institutions. The
Contractor shall provide a single depository point for inmate deposits for all locations with
reporting capabilities, by location. The Contractor shall also provide cost-free Debit Card
services to CDCR for the issuance of parole release funds and personal funds to eligible
parolees.
Furthermore, this Agreement shall allow CDCR to utilize the Contractor’s secure internet
website to assign debit cards to Parolees and apply value to cards provided by the
Contractor in two (2) categories—one (1) for the Release Funds and one (1) for the Trust
Funds.
B. COMPANY QUALIFICATIONS
1. Mandatory Qualifications
a. Minimum five (5) years’ experience working with federal, state or local government in
developing and implementing Debit Card and Lock Box applications, similar in nature
as defined in this SOW
b. Minimum five (5) years’ experience and primary business focus in managing,
developing, and implementing multi-tier web based applications
c. Minimum two (2) years’ experience working in a correctional environment in
developing and implementing IT applications designed to issue funds, reconcile, and
track detailed account activity related to these funds
d. Certification of Payment Card Industry Data Security Standard (PCI-DSS)
compliance
e. License from California Department of Business Oversight to provide money
transmission services
2. Desirable Qualifications
Minimum of two (2) years’ experience working with a large correctional environment with
a minimum population of 100,000 inmates
C. CONTRACTOR TASKS/DELIVERABLES
1. Lock Box Services
a.
b.
c.
d.

Provide cost free Lock Box Services to CDCR inmates’ family and friends free of
cost.
Provide Lock Box Services to CDCR inmates’ family and friends according
Contractor’s fee schedule.
Provide Lock Box services to CDCR inmates’ family and friends free of cost.
Guarantee and assume full liability for all Lock Box funds transferred and deposited
into the CDCR bank account. CDCR will not be held responsible for any fraudulent
funds transferred by the contractor on behalf of CDCR.

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK
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Agreement C5607126
Amendment 2
Exhibit A

Image front and back of all envelopes and negotiable items (i.e. checks, money
orders) and retain all imaged data for a period of current plus 3 years from the time
of deposit.
The Contractor shall disclose all exceptions, limitations and full cost to the sender.
The disclosure shall be stated on the Lock Box Service Remittance Coupon in
multiple languages (at a minimum English and Spanish).
Provide CDCR staff system user training on the Lock Box Service during the term
of this contract as requested by CDCR at no additional cost to CDCR.
Provide Remittance Coupon in multiple languages (at a minimum English and
Spanish) to be used by family and friends to aid in the processing of funds through
the Lock Box Service. The Remittance Forms should be made available in all
CDCR facilities (i.e. visiting rooms, inmate orientation packets and online). The
Remittance Form must state “For Inmate Trust Funds Only.” The Remittance Form
shall include an area for:
 Inmate Name
 CDCR Identification Number
 Institution
 Sender’s name, address and phone number
 Deposit Amount
 Remittance Coupons shall state the following disclosure statement:
“All Deposits are subject to Restitution unless specifically exempt from
Restitution, per Title 15, Section 3097.”
Keep all names and identification numbers of inmates confidential.
The Contractor shall provide Lock Box informational materials, (i.e. posters and
pamphlets) to be displayed in each CDCR correctional facility, in multiple
languages, (at a minimum, in English and Spanish), for the purpose of notifying
family and friends about the availability of the Lock Box Services. Material must be
reviewed by Accounting Services Branch – Inmate Accounting and the Division of
Adult Institutions. Any advertising for Services covered under this contract must be
reviewed and approved by CDCR prior to its use. Any advertising for services not
under this Agreement is strictly prohibited.
Respond to and resolve all inquiries and complaints (within 24 hours of receipt)
from CDCR inmates’ and parolees’ family and friends regarding failure of
transmittal of funds.
Comply with all applicable California banking regulations.
Assist CDCR Investigative Services Unit (ISU) and Criminal Intelligence Analysis
Unit (CIAU) with requests for information pertaining to money laundering, fraud, or
illegal activities as needed. Provide at a minimum investigative reports that contain
transaction history by inmate name, CDCR number, and sender information.
The Contractor shall create an automated interface of the payment file with the
Trust Restitution Accounting Canteen System (TRACS)
 CDCR has a licensing agreement with a third party vendor for the TRACS
system, Advanced Technologies Group (ATG).
 The Contractor is responsible for contacting ATG, negotiating an agreement
with ATG to allow interface activities on behalf of the Contractor with TRACS,
and all development activities required in setting up their interface with ATG.
This could include a “per transaction” fee, or a licensing fee. The Contractor’s
rates as identified on the Rate Sheet (Exhibit B-2) shall be inclusive of any and
all fees anticipated for this Service.

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California Department of Corrections and Rehabilitation
STATEMENT OF WORK
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Agreement C5607126
Amendment 2
Exhibit A

Process Receipts on a daily basis.
 The front of the negotiable instrument will be imaged, and the front and back of
envelopes will be imaged. If the negotiable instrument is damaged and cannot
be imaged, it will be rejected. If the envelope is damaged and cannot be
imaged, processing of the negotiable instrument will proceed without the
associated envelope data.
 Negotiable instruments will be stamped with the Contractor’s standard
endorsement during the encoding process.
 Capture data for all negotiable instruments including the amount, CDCR
Identification Number, sender name, address and zip code, the fund source
type of cashier’s check, personal check or money order, and date of negotiable
instrument.
 Produce a standard audit trail.
 Make daily deposits.
 Report any variance or reconciling item.
 Report any misapplication of funds.
Provide secured database access to CDCR Accounting of funds transferred to
CDCR.
Provide a Daily Transaction Report by Institution. This report must contains the
inmate name, inmate CDCR number, Sender’s name, address, phone number ,
funds transfer date, “Lock Box” as the Fund Source Type, dollar amount,
transaction count, deposit number or batch number, Institution total.
Provide a Daily Transaction Summary Report by Institution, transaction counts,
transferred amount, transfer date, deposit number or batch number. (As described
in item bb)
Provide a Monthly Transaction Summary Report by Institution, transaction counts,
transferred amount, transfer date, deposit number or batch number. All reports
should be available within 24 hours of Lock Box transactions and must be
accessible to CDCR staff on the Contractors website at 06:00 a.m. PST the
following business day. (As described in item cc)
Contractor will maintain a retention schedule of CDCR data for a minimum of
current plus three years from the date of transaction. The retained data must be
accessible by CDCR staff for research or investigative purposes. The destruction
of this data must be kept confidential for security purposes.
Establish audit trail accountability.
 A tracking log, various processing steps and a database support activities will
be maintained.
 All mail receipts will be processed through extraction and imaging prior to any
reject evaluation processing.
 When an item is identified as a candidate for rejection and subsequent returnto-sender action, the name and address, processing date, batch ID, sequence
number of the transaction, and the inmate’s last name and CDCR number will
be entered into a database file. Applicable information from the database file is
imported into the labeling program for printing.
 A mailing log corresponding to each day’s returned-to-sender items will be
appended to the image system reject report file, thus enabling query search
capabilities by address, sender name, inmate’s CDCR number, or inmate

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California Department of Corrections and Rehabilitation
STATEMENT OF WORK

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Agreement C5607126
Amendment 2
Exhibit A

name. It also will enable the recreation of facsimile copies of the original
instrument and envelope.
 The return-to-sender database information will be appended to the daily
Receipts Report. The data file will contain sender name, sender address and
zip code, batch number, sequence number, mail received date, dollar amount,
inmate’s last name, inmate’s CDCR number and return-to-sender reason code.
Not accept cash
Not accept the following:
 Any payment designated for any purpose other than deposit into an inmate’s
Trust Account
 Any form of payment except for Personal Checks, Certified Checks, Cashier’s
Check and Money Orders.
Reject a deposit and perform the action indicated if any of the following conditions
exist:
 The negotiable instrument or remittance form does not contain an inmate
name, the contractor will return to the sender.
 The negotiable instrument does not contain a valid CDCR Identification
Number, the contractor will return to the sender.
 The name on the negotiable instruments with a valid CDCR Identification
Number but a mismatch between the inmates name on file and the payee
name on the instrument of payment, the contractor will return to the sender.
 Negotiable instrument does not have a valid date and signature per banking
industry standards, the contractor will return to the sender.
 Stale dated payments, the contractor will return to the sender.
 Third Party Checks, the contractor will return to the sender.
 Foreign drawn negotiable instruments, the contractor will return to the sender.
 For negotiable instruments with multiple CDCR Identification Numbers, the
contractor will return to the sender. Note: There should be only one CDCR
Number for each Remittance Form.
 Parcels. Parcels will remain unopened. The contractor will return to the
sender.
 Attachments to the negotiable instrument found in the mailing, the contractor
will return to the sender.
 All correspondence, the contractor will return to the sender.
 Any form of payment except for Personal Checks, Certified Checks, Cashier’s
Check and Money Orders, the Contractor shall return to sender.
 If no return address, the contractor will forward the payment to:
CDCR Trust Accounting
Unknown Funds
P.O. Box 276088
Sacramento, CA 95827
Contractor shall mail and transmit all applicable items and data on a daily basis.
Provide daily processing reports summarizing the following:
 Number of remittances received by instrument type
 Listing of type of negotiable instrument, CDCR Identification Number and dollar
amount
 Total dollar amount deposited
 Listing of items rejected and the reason

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK
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Agreement C5607126
Amendment 2
Exhibit A

Provide a monthly report of cumulative data summarizing the following:
 Number of remittances received by instrument type
 Listing of type of negotiable instrument, CDCR Identification Number and dollar
amount
 Total dollar amount deposited
 Listing of items rejected and the reason
Establish quality controls that provide quality assurance and meet acceptable
quality standards for scanned image and data entry accuracy as defined by CDCR.
Provide security and confidentiality of all CDCR financial information, staff and
personnel, and inmates housed at CDCR facilities.
Provide excellent customer service.

2. Debit Card Services
a.

b.

c.

d.

Provide cost free Debit Card Services to CDCR for the issuance of Parole Release
funds and personal funds (Trust Funds) to Parolees. Services to include set-up and
maintenance of accounts, training and training materials, providing CDCR with
web-based access to vendor program, debit card stock, electronic and printed
reports and all other materials, supplies, programs and interfaces required to
providing this service.
Contractor is to provide to the CDCR client (inmate, parolee, ward) access to
release and trust funds through the use of a branded debit card at point-of-sale
(POS) devices and automated teller machines (ATMs) wherever the VISA and/or
MasterCard logo (and/or the various network partners of Contractor, Ex: Cirrus,
Plus, Star) is accepted.
Contractor must have all of the resources to successfully perform under the
contract. This includes, but is not limited to, personnel in the number and with the
skills required, experience providing similar services, and financial resources
sufficient to complete performance under the contract.
Contractor must demonstrate experience with account setup and authorization,
card maintenance, training, customer account maintenance, transaction
processing, customer service, managing acquirer participation, settlement and
reconciliation, reporting and risk management.
 Debit card may be used throughout the United States.
 Debit card must have unique card numbers and assigned Personal
Identification Number (PIN).
 Assigned PIN may be changed by the client/cardholder only.
 No fee charged cardholder by Contractor for first four (4) transactions at
Contractor/partner ATMs including account balance requests. Minimal
transaction fees thereafter charged to client (cardholder). Client (cardholder)
fees must be listed on Contractor’s rate sheet and included with bid.
 No card fees for use at POS terminals.
 Transaction fees from third-party vendor(s) must be disclosed in advance and
be charged to debit card client/cardholder upon acceptance of those fees.
 Account transaction receipts will include the account balance.
 After issuance to client by CDCR, lost, stolen, or demagnetized cards will be
replaced by Contractor at specified rate charged to client. Fees must be listed
on Contractor’s rate sheet.

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

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Contractor to have sufficient resources to pre-fund cards (advance funds) and
invoice CDCR in the specified format twice monthly for reimbursement of
advanced funds. Contractor will not charge CDCR or cardholders a fee or
interest for providing this pre-funding service.
 Contractor to guarantee and assume full responsibility for funds on deposit for
all active cards and ensure funds are available to client/cardholder once the
card is activated.
 Assist CDCR Investigative Services Unit (ISU) and Criminal Intelligence
Analysis Unit (CIAU) with requests for information pertaining to money
laundering, fraud, or illegal activities as needed. Provide at a minimum
investigative reports that contain transaction history by inmate name, CDCR
number, and store or ATM location, date and time when transaction occurred.
 Customer Service to client/cardholder available in Spanish and English.
 Service available to client/cardholder 24 hours a day via toll-free telephone
number, at no charge to client or CDCR.
 Surcharge-free ATM’s must be available in all counties within California
(Contractor must identify Partner Network(s) Locations/Options with bid)
Provide all services necessary to implement debit card program at specified
locations. See Exhibit A-1 for list of locations.
Deliver debit card stock inventory to CDCR offices/facilities (Cost Center) as
requested through the secure internet website by authorized CDCR super user(s)
within five (5) business days of request (postage paid by Contractor). Identify
minimum quantity, if any on Exhibit B-1, Rate Sheet. See Exhibit A-1 for list of
locations.
Provide CDCR with monthly report of cards issued by location (Cost Center).
Responsible for maintaining the database of cardholder accounts including Parolee
Name, CDCR number, amounts, dates loaded, CDCR Personal Identification
Number (PID) and incarceration date.
Responsible for recruiting and connecting with retailers.
Provide toll-free telephone number, printed on the back of the card for 24 hour
customer service to cardholders and retailers, to include lost, stolen or inoperative
cards.
Provide transaction processing system and gateway services.
Provide settlement services to client to close out cards with minimum balances,
that cannot be withdrawn from ATM (less than $20.00) and refunds for invalid
charges.
Settle and reconcile the movement of money within the banking system.
Provide CDCR with necessary secure website to interface with the contractor’s
debit card system.
Provide real-time printable report through the secure website of cards loaded with
date, client name, CDCR number and amount of Release Funds and Trust Funds
applied to the card, to be verified by CDCR staff against the request for funds
(CDCR form CDCR 102 Release Statement)
Provide training materials, webinar training, and account profiles to appropriate
CDCR staff authorized by the CDCR PM.
Provide live or webinar training to super-users at each location (institution(s),
camp(s), parole office(s), accounting office(s)), who will then be responsible for onsite training of other staff.
Provide web-based training manual for new users at no additional cost.

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California Department of Corrections and Rehabilitation
STATEMENT OF WORK
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Agreement C5607126
Amendment 2
Exhibit A

Provide toll-free phone and web-based support to all authorized users.
To the extent possible, provide security access levels to promote and maintain
separation of duties:
 Super-user: Full entry, view and report capabilities. Access to training materials
and ability to troubleshoot issues
 User: Enter data necessary to complete transaction to establish client
information, fund card, execute searches and low level release of funds to
specified amount.(not able to reverse, void, cancel transactions)
 Approver: Approve large dollar transactions which exceed limit established by
project manager prior to posting to card and approve/release all reversal
transactions/void/cancels
Provide written training materials for client/cardholder in English and Spanish to be
issued with each card.
Including how to use the card, process for reporting/replacing lost, stolen or
damaged card, toll free customer service number, information on fees charged by
Contractor and potential fees from third-party vendors.
Develop and provide various reports to accommodate the informational and
security needs of CDCR, exportable to Microsoft Excel.
Reports to include:
 Electronic report(s) (Excel format) in specified configuration to include fields
required by the State Controller’s Office to process Electronic Claim
processing, suitable for uploading into CDCR’s accounting system (SAP).
 Daily List of Cards issued/activated by location (cost center/institution)
including card number, parolee/client name, CDCR number, amount and
source of funds, PID number, release date, incarceration date, name of staff
who entered the transaction.
 Monthly, Quarterly, Annual report of cards issued.
 Inventory record/reconciliation of cards received, issued, or in stock.
 Void/Damaged Card report
 Report of deposits and disbursements of funds on deposit with vendor.
Provide connectivity to all state and national networks required to implement this
contract.
Provide retailer management services.
Maintain interface with CDCR’s system to facilitate daily data exchange that is
compatible with CDCR existing equipment/software.
Keep all client names and identification numbers confidential.
Comply with all California Banking regulations (licensed with the state).
Establish an account with CDCR to fund debit cards. This account will maintain a
permanent advance with regularly scheduled replenishment; or, Electronic Fund
Transfer from state to Contractor at scheduled intervals based on cards issued.
Provide client with secure website to view card activity/balance and obtain
electronic customer service.
Mail replacement cards to client(s).
Stop/cancel the approval of funds expenditure on an activated card when
necessary as determined by CDCR. Refund any remaining funds transferred from
CDCR to vendor/vendor’s bank for a canceled card.

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California Department of Corrections and Rehabilitation
STATEMENT OF WORK
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Agreement C5607126
Amendment 2
Exhibit A

All Contractor correspondence and communication shall be directed through the
Accounting Services Branch- Bakersfield or Designee as the single point of
contact. No solicitation of any products or Services will be made to institution staff.
Comply with all Payment Card Industry Data Security Standards (PCI-DSS).
Provide security and confidentiality of all CDCR financial information, staff and
personnel, and inmates released from CDCR facilities.
Contractor will maintain a retention schedule of CDCR data for a minimum of
current plus three years from the date of transaction. The retained data must be
accessible by CDCR staff for research or investigative purposes. The destruction
of this data must be kept confidential for security purposes
Establish audit trail accountability.
Provide excellent customer service.

3. Third Party Account Reimbursement Provisions
a.
If required and in accordance with section C – Contractor Tasks/Deliverables,
items 2.a and 2.cc, contractor will reimburse CDCR for all costs for an account
established outside the State Treasury.
b.
CDCR will establish and retain title to and ownership of the account outside the
State Treasury.
c.
CDCR will deposit an advance in the account in an amount to be determined by
CDCR and replenish the account as necessary per the limits set by the State of
California, Department of Finance, Fiscal Systems and Consulting Unit.
d.
Upon receipt, audit and approval of itemized semi-monthly invoice from contractor,
CDCR, Accounting Services Branch (ASB), Bakersfield will authorize Automated
Clearing House (ACH) transactions no less than twice monthly to transfer funds
from CDCR’s account to a bank account specified by contractor.
e.
Contractor will provide ASB-Bakersfield with the routing instructions for the fund
transfer.
f.
CDCR will invoice contractor monthly, in arrears, for all charges associated with
the account outside of the State Treasury, as billed by the financial institution.
g.
Contractor will remit invoice payments within 30 calendar days from the date on the
invoice to:
CDCR, ASB-Rancho Cucamonga
PO Box 6000
Rancho Cucamonga, CA 91729-6000
D. DELIVERABLE ACCEPTANCE CRITERIA
All concluded work shall be submitted to the CDCR Project Manager (PM), or a selected
representative, for review, approval and/or rejection. It shall be CDCR’s sole determination
as to whether the projects have been successfully completed and is acceptable to CDCR.
Signed acceptance is required from the CDCR PM, or a selected representative, before
approving a deliverable.
Throughout the Agreement, CDCR shall review and validate the project prior to final
acceptance. In addition, the CDCR PM, or a selected representative, shall verify and
approve the Contractor’s invoices.

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California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

Acceptance criteria shall consist of the following:
1.
2.

3.
4.

5.

Documentation shall be submitted to the CDCR PM both electronically and in paper
copy as appropriate.
Requirements Analysis and Design documents shall be produced and submitted to the
CDCR PM for approval prior to commencement of work related to those documents.
The CDCR PM may direct further refinements.
The Contractor shall submit for CDCR PM’s signature, a weekly status report,
recording all tasks performed.
Within five (5) business days, the CDCR PM shall review the quality of all contract
work performed by the Contractor and submit documentation to identify any
deficiencies observed in the level of services provided by the Contractor. The
Contractor shall comply with making the necessary changes within five (5) business
days, based on the CDCR PM’s findings. Once the CDCR PM approves a course of
action to address the noted deficiencies, work can continue toward completion for the
noted task.
Lock Box Specific:
a. All requested reports meet CDCR needs and have signed off approval of format.
b. Lock Box program is functioning as required by CDCR at all locations.
c. Vendor provided training materials for staff meets the criteria specified in the SOW.
d. Web-based program is working effectively and efficiently.
e. Issues are confirmed within 24 hours and resolved within 72 hours.
f.

A proper audit trail is established and maintained within the Lock Box program.

g. Changes/modifications requested during pilot are complete and acceptable to
CDCR.
h. Log and track all issues and provide a report to CDCR monthly.
i.
6.

Re-submit a failed uploaded file within 24 hours.

Debit Card Specific:
a. All requested reports meet CDCR needs
b. Debit card program is functioning as required by CDCR at all locations.
c. Debit card stock is received timely at all CDCR locations.
d. Vendor provided training materials for staff and parolees meets the criteria
specified in the SOW.
e. All parolees are adequately informed of the debit card program process for use,
reporting of lost/damaged/stolen cards and fees they will be charged.
f. CDCR staff are properly trained and proficient in issuance of debit cards.
g. Funds on deposit with vendor and disbursements to cardholder’s accounts are
properly recorded and processed timely.
h. Web-based program is working effectively and efficiently
i. Issues are resolved timely.
j. CDCR realizes anticipated efficiencies/savings in the processing of release funds
to parolees.
k. A proper audit trail is established and maintained within the debit card program.

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STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

l. Parolees have access to funds upon receipt of the card (charge transactions)
m. Parolees successfully obtain/change PIN for PIN-based transactions (ATM/Debit
card transactions)
n. Parolees have easy access to network ATM machines throughout all areas of
California.
o. Changes/modifications requested are complete and acceptable to CDCR.
E. AGREEMENT COMPLETION CRITERIA
Status monitoring and acceptance of detailed activities and tasks as outlined above in
Section C, Contractor Tasks/Deliverables, and D, Deliverable Acceptance Criteria shall be
carried out by the CDCR PM, or a selected representative, and assisted by the selected
vendor. Following the submission of the final criteria, the CDCR PM, or a selected
representative, may inform the selected vendor by both mail and e-mail when the vendor’s
services are completed. Following this notification, the vendor shall complete and submit a
handover report to the vendor’s Project Manager and the CDCR PM, or a selected
representative, confirming the completed tasks and the current status of related work at the
time the services were rendered complete.
F. EVALUATION OF CONTRACTOR
The CDCR PM shall complete a written evaluation of the Contractor’s performance under
this Agreement within sixty (60) days following the term end date. The evaluation shall be
prepared on the Contract/Contractor Evaluation Form (STD 4), and maintained in the
Agreement file for three (3) years. If the Contractor’s performance was unsatisfactory, a
copy of the evaluation shall be sent to the DGS, Office of Legal Services, within five (5)
days, and to the Contractor within fifteen (15) days, following the completion of the
evaluation.
G. PROJECT ASSUMPTIONS AND CONSTRAINTS
1.

2.
3.

4.

5.

The Consultants’ work hours must be consistent with CDCR’s key staff on-site. CDCR
normal business hours are 8 A.M. to 5 P.M., Monday through Friday, except for State
holidays. Maintenance that may disrupt connectivity occurs during non-business
hours. It is expected that Consultant(s) shall be available during implementations that
are scheduled within these windows.
No overtime pay shall be authorized for non-standard work hours.
Time off for the Contractor’s staff shall be authorized if there is no foreseeable impact
to the expected rollout schedule, as determined by the CDCR PM, or selected
representative.
If onsite work is required, the primary work locations shall be at Accounting Services
Branch 5100 Young Street, Building A, Suite 110, Bakersfield, California, and/or 1515
K Street, Sacramento, California (Lock Box services), but may be subject to change
upon CDCR PM, or selected representative approval.
Any modifications to tasks within the SOW of this Agreement shall be defined,
documented and mutually agreed upon by the Contractor and CDCR PM, or selected
representative, prior to starting work on the modified task. Modifications outside the

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Agreement C5607126
Amendment 2
Exhibit A

original scope of services shall require Agreement amendment and control agency
approval prior to commencement of work.
The Contractor must submit a resume for review of all personnel substitutions in
advance. The proposed substitute must meet or exceed all mandatory qualifications
listed under Section B.2.a., Mandatory Qualifications. All Contractor personnel
substitutions must be approved by the CDCR PM.
The CDCR PM, or selected representative, reserves the right to renegotiate services
deemed necessary to meet the needs of the project according to State priorities.
CDCR and the Contractor shall mutually agree to all changes; renegotiated services
outside the scope of the original Agreement shall require control agency approval prior
to commencement of work on the renegotiated services.
If this is an IT Consulting Agreement, the Contractor represents that it has, or shall
secure, at its own expense, all staff required to perform the services described in this
Agreement. Such personnel shall not be employees of, or have any contractual
relationship with, any governmental entity.
The CDCR and the Contractor are mutually obligated to keep open and regular
channels of communication in order to ensure the successful execution of this
Agreement. Both parties are responsible for communicating any potential problem or
issue to the CDCR PM, or selected representative, and the Contractor, respectively,
within forty-eight (48) hours of becoming aware of said problem.
The Contractor certifies that it has appropriate systems and controls in place to ensure
that State funds shall not be used in the performance of this Agreement for the
acquisition, operation, or maintenance of computer software in violation of copyright
laws.

H. CDCR ROLES AND RESPONSIBILITES
The CDCR shall perform and/or provide the following:
1.
2.
3.

4.
5.
6.
7.
8.
9.
10.
11.

Provide any bank account changes in writing within five (5) days to the Contractor.
Credit the Lock Box funds to the designated inmate’s or parolees’ account within three
business days after the receipt of the file.
Respond to and resolve all inquiries and complaints from CDCR inmate’s and parolees
family and friends regarding failure of CDCR to promptly and properly credit the
inmate’s or parolees’ account.
Provide a hyperlink to the Lock Box web site through CDCR’s web site.
Provide a Secured File Transfer Protocol (FTP) site for the contractor to transfer their
Lock Box transaction files to the ATG TRACS server for processing transactions.
Provide secured, Internet access. Each CDCR office will assign limited staff access to
the system.
Provide the required banking information to Contractor.
Provide any changes to banking information to Contractor in writing within five (5) days
to the Contractor.
Establish procedures to ensure the security and accountability for debit cards delivered
to CDCR to be issued to clients through applicable CDCR offices.
Provide Contractor with list of CDCR institutions/offices where cards will be delivered.
Provide the Department’s mission, strategies, and programs;

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK
12.
13.
14.
15.
16.
17.
18.
I.

Agreement C5607126
Amendment 2
Exhibit A

Help resolve and escalate project issues within the CDCR organization, as necessary;
CDCR PM, or a selected representative, shall review and approve the work plan for
each rollout before the Contractor can commence work;
CDCR PM, or a selected representative, shall review and approve all work products;
Provide Contractor access to applicable files, reports, contracts, documents, and other
relevant information;
Provide staff availability for consultation meetings;
Provide security access to CDCR’s facilities, should Contractor need access; and
Provide any assistance of a clerical nature for documents or telephone support.

CONTRACTOR ROLES AND RESPONSIBILITIES
The Contractor shall perform and/or provide the following:
1.
2.
3.
4.
5.
6.

7.

8.

9.
10.

11.

12.
13.

Provide experienced Consultant(s) with skills and knowledge appropriate to carry out
the services.
Support the CDCR with advice and assistance as may be reasonably requested from
the assigned.
Submit all work products for review and will make any corrections as required by the
CDCR PM, or selected representative.
Prioritize all tasks so as to keep within each planned enhancement release’s schedule.
Work with the CDCR PM, or selected representative, to ensure any issues or risks
affecting the schedule, budget, resources, or scope are uncovered and reported.
Shall be obligated to keep open and regular channels of communication in order to
ensure the successful execution of the services provided within this contract. The
contractor is responsible for effectively communicating any potential problems or
issues to the CDCR PM, or selected representative, immediately within becoming
aware of said problems.
Provide assistance to the CDCR PM, or a selected representative, in planning,
monitoring, and controlling the activities and tasks to be carried out by the
Consultant(s).
Monitor the performance of the Consultant(s) and adjust staffing levels appropriately to
ensure completion of tasks listed in Section C, Contractor Tasks/Deliverables, within
the stated Period of Performance.
Comply with all applicable CDCR and EIS policies and procedures including, but not
limited to, the EIS Project Management Office guidelines.
Comply with all laws, orders, rules, applicable regulations and industry standards that
are associated with the performance of their duties and obligations under this
Agreement.
All Contractor correspondence and communication shall be directed through the
CDCR PM, or selected representative, as the single point of contact. The Contractor
shall not solicit any products or services to any institution staff.
Be responsible for its own personnel, fiscal, and general administrative services to
support this Agreement.
Once the Agreement has been awarded, the Contractor shall be provided bank
account information to transmit the Lock Box funds to the CDCR Bank Account.

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

J. PAYMENT CARD INDUSTRY DATA SEVURITY STANDARDS
CDCR requires that the Contractor shall at all times maintain compliance with the most
current PCI DSS. Contractor shall be required to:
1. Provide written confirmation of compliance annually
2. Acknowledge responsibility for the security of cardholder data as defined within PCI DSS
3. Acknowledge and agree that cardholder data may only be used for completing the
contracted services as described in the full text of this document, or as required by the
PCI DSS, or as required by applicable law.
In the event of a breach or intrusion or otherwise unauthorized access to cardholder data
stored at or for the Contractor, Contractor shall immediately:
1. Notify CDCR’s Information Security Office to allow the proper PCI DSS compliant breach
notification process to commence
2. Provide appropriate payment card companies, acquiring financial institutions, and their
respective designees access to the Contractor's facilities and all pertinent records to
conduct a review of the Contractor's compliance with the PCI DSS requirements
In the event of a breach or intrusion Contractor:
1. Acknowledges any/all costs related to breach or intrusion or unauthorized access to
cardholder data entrusted to Contractor deemed to be the fault of Contractor shall be the
liability of the Contractor
2. Agrees to assume responsibility for informing all such individuals in accordance with
applicable law
3. Indemnify and hold harmless CDCR and its officers and employees from and against
any claims, damages or other harm related to such breach
K. PERIOD OF PERFORMANCE
The original Period of Performance for this SOW is July 1, 2017, or upon approval by all
parties, whichever is later, through June 30, 2020. Services under this SOW shall
commence immediately upon execution of this Agreement and shall be provided to all
CDCR adult institutions for each service. If it is determined to be in the best interest of the
State, CDCR may exercise two (2) optional two (2) year extensions. Any Amendments to
the resulting Agreement shall be consistent with the original Scope of Services.
Amendment 1 will extend the period of performance through June 30, 2021.
Amendment 2 will extend the period of performance through June 30, 2022.
Funding for this Agreement is subject to approval of the project funding requests and
appropriation of such funds.

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

L. CONTACTS
The Contacts during the term of this Agreement is as follows:
1. Lock Box Services


Project Manager
Michele Gomez-Essex, Accounting Administrator II
Accounting Services Branch - Sacramento
Inmate Welfare Fund/Trust Accounting Section
P.O. Box 276088
Sacramento, CA 95827-6088
(916) 255-1064
Michele.Gomez-Essex@cdcr.ca.gov



Advanced Technologies Group (ATG)
Ajit Kummar, Vice President – Fiduciary Systems
1601 48th Street, Suite 220
West Des Moines, IA 50266
(515) 221-9344
ajitk@a-t-g.com

2. Debit Card Services Project Manager
Walter Mazza, Accounting Administrator II
Accounting Services Branch-Bakersfield
P.O. Box 12050
Bakersfield, CA 93389
(661) 664-3417
Walter.Mazza@cdcr.ca.gov
3. IT Contract Administrator
Robin Adams, IT Specialist I
Enterprise Information Services
1940 Birkmont Drive
Rancho Cordova, CA 95742
(916) 594-1011
Robin.Adams@cdcr.ca.gov

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JPay Inc.
California Department of Corrections and Rehabilitation
STATEMENT OF WORK

Agreement C5607126
Amendment 2
Exhibit A

Cheryl Southerland, Contract Analyst
Enterprise Information Services
1940 Birkmont Drive
Rancho Cordova, CA 95742
(916) 358-1868
Cheryl.Southerland@cdcr.ca.gov

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JPay Inc.
California Department of Corrections and Rehabilitation
RATE SHEET

C5607126
Exhibit B-1

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JPay Inc.
California Department of Corrections and Rehabilitation
RATE SHEET

C5607126
Exhibit B-1

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