State of Washington
Department of Corrections

Contract No. CDOC6840
Amendment No. 6

1rhl6 Ame1rndlment to Contract No. CDOC6840 is made by the Washington State Department of
Corrections, hereinafter referred to as "Department" or "DOC", and Value-Added Communications, Inc.
hereinafter referred to as "VAC:', for the purposes set forth herein.

WHEREAS the p·arties have expressed interest in moving the hosting of the platform used to support the
Inmate Calling Services (ICS) equipment; and

WHEREAS the parties desire to establish a sound plan to implement reduced ICS rates for telephone calls
placed by Department offenders, to be compliant with and in accordance with Order 15-136 adopted by the
Federal Communications Commission (FCC) on October 22, 2015 ("FCC Order");

WHEREAS the parties agree to eliminate the current Minimum Amount Guaranteed (MAG) and
establish a revenue sharing amount calculated as a percentage of total revenue;

WHEREAS the parties desire to memorialize the end date of the Cot,tract, which is extended to align with

Ute termination date of other offender communications services, thereby facilitating the Department's intent

to pursue competitive procurement of bundled communication services at the end of the Contract term;

NOW THEREFORE, in consideration of the terms and conditions contained herein the Department and
VAC agree as follows:

1, VAC will complete, al its own expense, the following changes to the inmate telephone system and
associated equipment supplied by VAC under the Contract:

a. Update of hosting platform. Update the current platform used to Sllpport the inmate
telephone equipment to a hosted solution. This includes an update to all software and
hardware used in connection with the platform, including, but not limited to, the monitoring
and recording systems to be compatible with the most current version of the Microsoft
Windows ope1 ating system. A list specifying the upgrade is provided in Exhibit B to this
Amendment. On-site training for the new system will be provided to Department personnel
at VAC's expense on an as needed basis as communicated to VAC by the Department
Contract Manager; and

b. Removal of unused equipment. Remove all equipment and supplies replaced by V AC in
response to Department requests £or technology refreshes, as allowed in the Contract.
Removal of equipment will be completed at VAC's expense, within ten (10) business days of
tl1e technology refresh.

2. Effective March 17, 2016, VAC will reduce the rates and charges for intrastate and interstate inmate
telephone calls made using the inmate telephone system (ITS) to rates and charges that are no greater
than those allowed by Order 15--135 adopted by the FCC on October 22, 2015,

The parties hereby agree that the rates charged to users of the [CS will at no time exceed the
following:

a. Inmate Telephone Service Call Rates. llie per-minute-of-use call rate shall llOI exceed the
maximum rates authorized by the Washington Utilities and Transportation Commission
(UTC) and the FCC. Interstate and intrastate ffS calls, whether made using a collect, debit,

State of Washington

Department of Corrections

CDOC6840(6)

Page 1 of3
168364

prepaid/ AdvancePay™ format, or any other format shall at no time exceed the maximum
eleven cents ($0.11) per minute of use.

The rates charged are exclusive of taxes, and other amounts collected by VAC on behalf of, or
paid to, third parties, including but not limited to payments in support of statutory or
regulatory programs mandated by governmental or quasi"governmental authorities, such as
the Federal Universal Service Fee, and any costs incurred by VAC in connection with such
programs.
b. Ancillary Fees. VAC may charge certain ancillary fees, which al no time shall exceed the
maximum rates as authorized by the state UTC and the FCC Order. The parties agree that the
maximum allowed fees shall be:
Fee for automated payment for credit card,
debit card, and bill processing fees

$3.00 per use

Fee for payment using Jive operator

$5.95 per use

Fee for paper bill/statement

$2.00 per use

Fee for use of third-party n,oney transmitter The exact fee from the third-party
(e.g., MoneyGram, Western Union, credit
provider passed through directly to
card processing, transfers from third-party customer with no markup
commissary accounts)
3, Elimination of the MAG. The parties hereby agree to the complete elimination of the MAG effective
March 17, 2016, The prorated MAG, due to the Department for the period of January 1, 2016 through
March 16, 2016, shall be paid to the Department no later than April 30, 2016,

Effective March 17, 2016 the MAG and other commission and revenue share payable by VAC under
the Contract will be replaced with a fifty six percent (56%) call revenue sharing amount calculated
monthly, as further described below. Call revenue shall mean all revenue generated by every
completed Intrastate cail that is accepted by an end user and billed via a local exchange carrier or
prepaid to VAC. Call revenue on which monthly revenue share will be paid does not include: (i)
taxes and tax"related surcharges; (ii) credits; (iii) ancillary fe<!s; (iv) reve.ttue from interstate calls; and
(v) any amount Company collects for, or pays to, third parties, including but not limited to payments
in support of statutory or regulatory programs mandated by governmental or quasi-governmental
authorities, such as the Federal Universal Service Fee, and any costs incurred by Company in
connection with such programs. Titls call revenue sharing amount shall be due to the Department in
quarterly payments in arrears due no later than the 301h day of each of these months: July, October,
January, and April. Final call revenue sharing payments due under the Co11tract shall be paid within
60 days of the Contract end date.

4. Contract Termination Date. The Department previously intended to pursue competitive solicitation
of the !CS to begin following the end of the original Contract term. However, the Department
delayed competitive procurement due to uncertainty in the ICS market associated with pending FCC
proceedings. In light of a recent partial stay granted for the FCC Order, and in an effort to align
contract termination dates for offender communications services, including telephone services, so as
to facilitate competitive procurement of bundled commwtication services at the end of this Contract
term, Ute parties agree that the Contract term shall extend until December 31, 2018 or until full
implementation of a new Contract resulting from the competitive solicitation, whichever is later. The
State of Washington
Department of Corrections

CDOC6840(6)

Page2 of3
168364

Oepartme11t agrees to give VAC ninety (90) days advanced written notice of the full implementation
date.

5. VAC Cooperation at End of Contract. Upon final termination of CDOC6840, VAC agrees to
reasonably cooperate with the Department and any new Contracted vendor in accomplishing an
efficient and effective transfer of responsibilities. All equipment and supplies currently owned or
serviced by VAC under the current Contract at the time of full implementation of the new Contract
wlll be removed within ten (10) business days of full implementation. TI1e removal of equipment and
supplies will be conducted at VACs own expense.

All other terms and conditions remain in full force and effect. The effective date of this amendment is the
date of final execution.

THIS AMENDMENT, consisting of three pages and two (2) exhibits is executed by the persons signing below
who warrant �,at they have the authority to execute the Contract amendment.
VALUE-ADDED COMMUNJCATIO NS, INC.

-

�--�--

��
(Signature)

Jeff�,y B. Haidln,.,ge:crc...-_,________
(Printed Name)
President and COO
· (Title)

DEPARTMENT OF CORRECTIONS

_OYA/.
�?d:
(

s�
John R. Nispel
(Printed Name)
�ting C.9ntracts Administrator
(Title)
f

_/

3J7{!_(,

Approved as to POl'm:

This amendment format was approved
by the office of the Attorney General.

Approval on file.

State of Washington
Department of Col'tections

CDOC6840(6)

Page3of3
168364

EXHIBIT A
Inmate Telephone Handsets

WINTEL 7090SSE Cord-On-Top Inmate Telephone
• Built-in user controlled volume "LOUD" button for
ADA mandated volume control (must be user­
controlled volume amplification AND volume must
reset to normal with on-hook to meet ADA
requirements).

• 180 rotating swivel elbow with at least 1,000# pull
strength
• Allows for handsets with extremely short cords to be
hung.
• Raised bump on '5' digit key.
• Heavy duty 14 gauge brushed stainless steel provides
rugged vandal resistant telephone housing designed
and built for inmate use.
• Confidencer technology, built into every dial, filters out
background noise at the user's location, allowing better
sound to the called party.
• AU�in-one electronic dial features modular incoming
line and handset connections for quick maintenance.

Carbon and DuraC[ear® Handsets have separate 4-pin

connections.

• Heavy chrome metal keypad bezel, buttons, and
hookswitch lever withstand abuse and vandalism.
• Armored handset cord is equipped with a
steel lanyard (1000# pull strength) and
secured with a 14 gauge retainer bracket for
maximum vandal resistance.

I-

• Handset has sealed transmitter and l'eceiver caps,
suitable
for heavy use and abuse locations.

• Pin�in-head security screws minimize tampering
• Hearing aid compatible and FCC registered

• US: lDATEOSB!TC-254, JC: 3267A-ITC254

State of Washington
Department of Corrections

Exhibit A

Page 1 ofl
168364

EXHIBIT B
Upgraded Inmate Telephone Service Platform

Focus HMP
• Focus HMP (Host Media Processing) Single Tenant System hosted in Data Center
• V-Track VS Secure Investigative Interface with Expanded Feature Set
• Web!TS Secure Administrative Interface
• Import of Existing Call Records and Recordings
• Hosted Correctional Industries Commissary IVR
• FUii Compatibility with existing Washington DOC Interfaces
o STG (Security Threat Group) Data Exchange
o Commissary Ordering via Inmate Phones
o Inmate Mugshot Data Exchange
o OMNI JMS 0ail Management System) Interface

State of Washington

Department of Corrections

Exhibit B

Page 1 of 1
168364