ATTA.t;DMENT V
Illustration
Off-site Serri~es Medi~l (;are Pool
Risk/Reward Sharing (;oJDpntations
Calculation of Annual Pool aased on Actual Average Daily Population (ADP) X
Total annual Off-Site Services Pool.
annual cost per inmate = $

l;ontra~ted Fa~ility

A) Greater than 17% Excess Cost:

Actual Cost minus Line B

DOC100%

B) Up to 17% Excess Cost:

Line C X 117%

PHS/DOC
50/50 Split

C) Off-site Services Pool

ADPX annual
cost/inmate

ex 83%

D) Up to 17% Savings Below Pool:

Line

E) Greater than 17% Savings:

Line D minus actual cost

PHS/DOC
50/50 Split
DOC 100%

40

1241

Attachment VI
IUustration
Staffing Pool
Risk/Reward Sharing CoDipntation.s

Contracted Facility
A) Greater than 10% Excess Cost:

Actual minus Line B

DOC 100%

B) Up to 1 0% Excess Cost:

Line ex 110%

PHS/DOC 50/50
Split

C) Staffing Pool:

Per IV. B.

D) Up to 10% Savings:

Line ex 90%

PHS/DOC 50/50
Split

E) Greater than 1 0% Savings:

Line D minus Actual

DOC 100%

41

1241

DEPARTMENT OF CORRECTIONS
6900 ATMORE DRIVE
RICHMOND, VIRGINIA 23225
CONTRACT DOC-05-024-PHS
This contract entered into this _ day of April 2006 between Prison Health Services, Inc. a
corporation under the laws of the State of Delaware hereinafter called the "Contractor or PHS"
and the Commonwealth of Virginia, on behalf of the Virginia Department of Corrections
hereinafter called "Purchasing Agency or DOC."
WITNESSETH that the Contractor and the DOC, in consideration of the mutual covenants,
promises and agreements herein contained, agree as follows:
SCOPE OF CONTRACT: The Contractor shall provide the Services to the Purchasing Agency
as set forth in the Contract Documents.
PERIOD OF PERFORMANCE: May 1, 2006 through April30, 2008 and renewable for five
(5) one-year periods.
The contract documents shall consist of:
1.

This signed Contract including the attached Memorandum of Understanding and
Attachments I through VII;

2.

The Request for Proposal# DOC-05-024 dated March 20, 2005 sections and
attachments as follows: Section II: Small, Women and Minority-Owned
Business Participation, Section III: Purpose, Section IV: Background, Section V:
Statement of Needs, and Attachments A through J; and

3.

The Contractor's proposal dated August 1, 2005 excluding the fee proposal in
section 1. A and B. of the Proposal Form.

To the extent that the terms of the contract documents as listed above are in conflict, the specific
provisions as stated in this Contract, Memorandum of Understanding and Attachments I through
Vll shall prevail. Other contract documents listed in #2 through #3 above shall take precedence
based upon the order in which they are listed.
IN WITNESS WHEREOF, the parties have caused this Contract DOC-05-024-PHS to be duly
executed intending to be bound thereby.

Signature:

PURCHASING AGENCY
Signature:

Title:

Title: Director

Date:

Date:

CONTRACTOR·

Note: This public body does not discriminate against faith-based organizations in accordance with the Code of Virginia, 2.24343.1 or against a bidder or offeror because of race, religion, color, sex, national origin, age, disability, or any other basis
prohibited by state law relating to discrilninatl9n in employment.

1

1237·

2

1237

Memorandum of Understanding
Contract DOC-05-024-PHS

As a result of the competitive negotiation process applicable to Request for Proposals (RFP) DOC-05-024
for the procurement ofHealthcare Management and Services, the Contractor, Prison Health Services, Inc.,
hereinafter referred to as the "Contractor" or "PHS" and the Virginia Department of Corrections,
hereinafter referred to as the "Purchasing Agency" or "Department of Corrections" or "DOC", do hereby
agree to the following:

I.

SERVICES TO BE PROVIDED BY THE CONTRACTOR

The parties agree as follows:
I.

SERVICES TO BE PROVIDED:
A.

General Contractor Responsibilities: Except as otherwise explicitly
provided in this Memorandum of Understanding, PHS shall, at its own
expense, provide all medical, dental and mental health services
(including, but not limited to, all primary care, preventative care,
specialty consultations, inpatient hospital care, infirmary care,
medications, equipment maintenance, medical and dental supplies, x-ray
services, laboratory services, optometric services, ambulance services,
and infectious waste disposal) needed to provide adequate and necessary
health care for all inmates at the Greensville Correctional Center
(including the Greensville Work Center), the Sussex I State Prison, the
Sussex II State Prison, Powhatan Correctional Center (including the
Powhatan Reception & Classification Center) and the Fluvanna
Correctional Center for Women and to provide health care services for
DOC employees and DOC on-site contract vendors required by these
contract documents. PHS shall, at its own expense, provide all
professional and non-professional personnel necessary to provide these
services.

B.

Standards ofPerformance: All services shall be provided in accordance
with American Correctional Association (ACA) health care standards
and in accordance with the DOC's Department Operating Procedures
(DOP's), DOC's Institutional Operating Procedures (lOPs), DOC's
Inmate Health Care Plan and the Virginia Board of Corrections'
standards, as they now or hereafter may exist. In addition, PHS must
comply with the Centers for Disease Control (CDC) Corrections
standards and treatment protocols adopted by DOC from time to time, as
those standards now or hereafter may exist. To the extent that a change
in such health care standards or DOC procedures or protocols or any
change in applicable laws or regulations result in a change in the scope
of work under this agreement that result in increased or decreased costs,
PHS and DOC will negotiate an increase or reduction in compensation in
accordance with Section L of Attachment I.

C.

Medical Infirmaries: PHS shall operate DOC's medical infirmaries at
Greensville Correctional Center, Powhatan Correctional Center and
Fluvanna Correctional Center for Women (hereinafter, "Greensville",

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1237

"Powhatan" and "Fluvanna" respectively). The major infirmaries at
Greensville, Powhatan and Fluvanna shall not only provide health care to
the inmates permanently assigned to these Institutions, but shall also
provide health care service to inmates from various other Institutions
who are temporarily assigned to these Institutions for a level of health
care that cannot be provided at the Institution where they are
incarcerated. The cost of infirmary care for such inmates coming from
other Institutions or from other jurisdictions to Greensville, Powhatan or
Fluvanna is included within the pricing structure of this Contract,
however, all off-site services for infirmary inmates permanently assigned
to another Institution will be the responsibility of the Institution to which
the inmate is permanently assigned. For the purposes of this Contract,
"off-site medical services" are defined as only inpatient hospitalization,
outpatient hospital care, and physician care provided by some entity
other than PHS away from the Institutions where PHS provides health
services, which are of a type beyond the capability of PHS at the major
medical infirmary and which are not normally provided by PHS at the
major medical infirmary in question.
D.

Janitorial Services: PHS shall provide all janitorial services (including
the cost of supplies) related to areas associated with services in the health
care unit. All cleansers used by PHS must receive prior approval from
the DOC.

E.

ACA Accreditation: All Institutions in which PHS will provide health
services are currently accredited by the American Correctional
Association (ACA). While these Institutions are accredited as a whole
and the health services operation is not accredited separately, it is
necessary that the health services operation meet ACA standards so that
the whole Institution may continue to be accredited. Therefore, the
Contractor must do all things necessary to assure that the health care
operation at each Institution meets American Correctional Association
accreditation standards at all times. PHS's health care operations may be
audited, at anytime, by DOC or at the request of PHS (no more than
twice during each contract year) for continuous ACA standard
compliance.

F.

Mental Health Licensure: PHS must do all things necessary to assure that
the Mental Health Units at Greensville, Powhatan and Fluvanna
Correctional Centers are licensed by the Virginia Department of Mental
Health, Mental Retardation and Substance Abuse Services at all times.

G.

Costs For Which PHS Is Not Responsible: PHS is responsible for
providing the following services or arranging to have them provided~ as
the case may be, but PHS is not responsible for bearing the cost of said
services as a prut of its basic fee. For these services DOC will reimburse
PHS its actual costs without markup for overhead or profit.

1.

PHS will not be responsible for costs associated with organ
transplant surgery costs (admission through discharge), however,

4

123~

all other costs associated with the organ transplant are the
responsibility of the Contractor. All organ transplant surgery
must be approved in advance in writing by the DOC Health
Services Director. If PHS fails to obtain DOC advanced written
approval, PHS shall be responsible for all costs associated with
the organ transplant costs.

H.

I.

2.

PHS shall not be fmancially responsible for the cost of
antiretroviral medications specifically required for the treatment
of HIV +/Aids or medications prescribed for the treatment of
Hepatitis C. Such medications will be provided by the DOC
through its contracted DOC pharmacy providers. PHS is
responsible for the storage and administration of such
medications, as well as all costs other than the above described
medications associated with the treatment of inmates requiring
such medications. The cost of medication for the treatment of
opportunistic infections are the responsibility of PHS

3.

PHS sh~ll provide Factor 8 treatment, other blood products and
treatment required for inmates suffering from hemophilia, but
the DOC shall reimburse PHS for the cost of Factor 8
medications and blood products. PHS shall provide all other
health care services for hemophiliacs including all other
medications necessary for general health care treatment without
additional compensation as a part of its basic services.

Hemodialysis
1.

Fluvanna Correctional Center for Women
a.) PHS is responsible for providing and paying for all
hemodialysis treatments;

2.

Greensville Correctional Center
On-site hemodialysis treatments at the GRCC will be provided
under a separate DOC Contract, however, PHS shall be
responsible for the following:
a.) providing the nephrologist and all of the labs ordered by him.
PHS will charge the DOC a dialysis lab surcharge of $7.00 per
dialysis patient visit. The dialysis lab surcharge is in addition to
the base fee. These lab tests must be billed directly to PHS and
paid by PHS, not billed to the DOC's third party administrator
nor included in the off-site medical care pool;
b.) all other medical care, including if dialysis is provided
elsewhere from Greensville Correctional Center; and
c.) the janitorial services of the dialysis areas.

Miscellaneous:
1. If the DOC becomes dissatisfied with any health care persmmel
provided by PHS, PHS will, upon notification by the DOC

5

1238

detailing the matter of concern, exercise its best effort to resolve
the problem. If the problem is not resolved to the satisfaction of
the DOC, PHS will remove the individual(s) from the
correctional center at the DOC's request.
2. Upon request by the DOC, for no additional compensation, PHS
will provide reports to the DOC in a timely manner to aid the
DOC in its administration of health services and/or oversight of
this Contract. PHS's records and inmate medical records shall
be available to the DOC for inspection by its personnel at all
times during the course of this Contract and subsequent thereto.
The Contract parties agree that these peer review records are
priviledged documents and therefore are not subject to release.
Also, as a part of its basic services, PHS will respond to inmate
grievances involving health care issues in accordance with the
procedures and within the time limits provided in DOC's DOP
866.
3.

PHS shall use telemedicine whenever possible to reduce
transportation costs. Telemedicine shall be used for clinical
consultations whenever and wherever available, unless directed
otherwise by the DOC. The cost of the consultations will be the
responsibility of PHS and will be included in the Off-Site
Medical Pool. The DOC will be responsible for the costs
associated with maintaining the telemedicine communication
system and equipment.

4.

When PHS uses a hospital or other health services provider away
from the Institutions where it serves either by face-to-face
consultations or telemedicine, charges for such off-site services
shall be paid through the DOC's contractor for Third Party
Administration Services (TPA) in accordance with the TPA's
procedures. All such costs, plus administrative fees charged by
the TP A, will be billed to PHS by the DOC and will be
reimbursed to the DOC by PHS within 30 days after the invoice
is received. It will be presumed that the billing from the DOC to
PHS was received not more than five days after it was sent,
unless PHS demonstrates that it was received at a later date.
Late payments by PHS shall accrue interest in the manner
provided for late payment by public bodies in accordance with
the Prompt Payment Act §2.2-4347 et.seq. Code of Virginia.
The DOC may offset any amounts, which it determines to be due
from PHS under this paragraph or any other amounts, which it
determines to be due from PHS for other reasons, from any
amounts, which it owes to PHS . Before exercising its right to
offset, the DOC will give PHS written notice of its intent to
offset, the amount it intends to offset and the justification
therefore. In the event PHS disputes such offset, PHS will have
20 calendar days from receipt of the DOC's written notice to
respond to the DOC with information disputing such offset and
the DOC shall render a decision within 30 calendar days from

6
123~

receiving PHS' response. Upon rendering its decision, the DOC
may then, if applicable, proceed with the offset.
Notwithstanding the foregoing, in the event PHS continues to
dispute the offset, the parties shall follow the procedure for
disputes specified in Attachment II Section J.
5.

Inmate Co-Pay: Each time an inmate seeks treatment, PHS will
make a determination as to whether a co-pay amount is due from
the inmate in accordance with the DOC policies, as they may be
. amended from time to time. PHS shall communicate that
information to the DOC daily in accordance with DOP 733.
Failure to do so shall make PHS liable for said co-pays. All copays shall be the property of the DOC.

6.

The Contractor shall adhere to the background check
requirements detailed in Department of Corrections Procedure
Manual, Chapter 10, Procedure #10-9- Background
Investigation Program. However, a background investigation is
not required when it is imperative that the Contractor must make
an immediate hiring decision before completion of the
background investigation, regarding a candidate for a highly
professional or technical position. If approved by the
appropriate Deputy Director or his designee, the applicant may
be hired on a probationary basis pending the completion of a
favorable VCIN/NCIC and DMV check. A background
investigation will then be made and a report provided. The
Contractor will communicate to all new employees that their
continued employment at any DOC site is contingent upon
successful completion of the complete background check.

7.

The Contractor shall not request reimbursement of any costs
from the DOC, except for (i) the cost of actual organ transplant
surgery, (ii) the cost ofFactor 8 medications and other blood
products for inmates suffering from hemophilia.

8.

The Contractor shall provide medical discharge planning to
effect an appropriate transition for inmates who are being
released from the DOC into the community.

9.

The Contractor shall provide all DOC Employee/DOC
Contractors, health care in accordance with the RFP Section V,
Statement ofNeeds, #5. Additionally, the Contractor shall
provide, subject to availability, all vaccines for inmates and
DOC employees/Contractors health and provide chest x-rays
(including radiological services) for all positive PPD's at no
additional cost to the DOC.

10.

The Contractor shall comply with all federal and state laws and
regulations pertaining to pharmaceuticals.

7

1238

11 .

When an inmate is transferred from another DOC Institution, to
an Institution in which health care services are provided by the
Contractor, the Contractor will not cancel a medical
appointment without first conferring with the sending
Institution's medical provider and notifY the inmate for the
reason for cancellation..

12.

Dental Clinics must follow the Dental Department Operating
Procedure (DOP) including submission of monthly activity
reports. Emergency and urgent dental care has the highest
priority and are not to be put on a waiting list. Emergency
patients will be seen the same day and urgent patients the same
day or next available clinical day. Routine dental treatment will
be initiated with a request form.
a.) Patients will be scheduled for their initial routine
appointment in the chronological order their request was
received.
b.) A written treatment plan will be developed for each
patient and the treatment plan will guide the course of
treatment.
c.) Patients do not have to submit a request form for
reappointment but they should indicate their desire to
continue with the treatment plan before they are
reappointed. The waiting time between appointments
should be based on the severity of treatment needs.
There should be no routine "go to the bottom of the list"
reappointment protocol. If the patient declines to
continue with the treatment plan, a new request form
must be submitted to restart treatment and the patient
will be appointed in chronological order of receipt of his
request.
d.) Dental Clinics will not maintain separate lists for
extractions, fillings, prosthodontics and endodontics.
e.) Oral hygiene care is an integral part of the DOC Dental
Program. Such care will be included in the treatment
plan according to DOC dental procedure. A separate list
may be maintained for oral hygiene care. Appointments
will be made from this list on a planned and regular
basis.

13.

Contractor shall provide all psychiatric care including
psychiatrists and medications at all PHS contracted the
Institutions. Additionally, the contractor will provide:
a) all staffing required for mental health care at the Fluvanna
Correctional Center for Women, Sussex I State Prison and
Sussex II State Prison, and

8

1238

b) all staffmg required for mental health care at the Greensville
Correctional Center's residential treatment mental health and
special housing units.

11.

14.

Any Medical supplies or medications on hand as of the
termination date of this Contract shall become the property of the
DOC.

15.

The Contractor shall abide by the DOC Employee drug testing
policy. The Contractor Health Services Administrator shall
arrange, in advance with the DOC Institutional Human Resource
Officer, for testing of all prospective health care workers, at the
time of first interview.

16.

Any inmate admitted to a hospital prior to Contract expiration
shall be the financial responsibility of the Contractor even if the
hospital discharge is after the Contract expiration.

17.

The Contractor shall be financially responsible for any
debts incurred due to not following DOC procurement
procedures in the purchase of goods and services to support
this Contract.

18.

During the term of the Contract, the DOC reserves the right to
add or delete DOC Institutions to the Contract as deemed
desirable for the provision of healthcare services. It is
understood that any addition or deletion will be documented as a
Contract Modification.

19.

In the event inmates from Coffeewood Correctional Center,
Lunenburg Correctional Center and/or Indian Creek Correctional
Center are assigned to major infirmaries managed by PHS and
they are required to have off~site medical care, PHS will notify
Armor.

20.

The Contractor will comply with the training requirements in
Section V. A. 7 of the RFP.

DOC SERVICE SUPPORT

A.

The following are responsibilities of the DOC with respect to this
Contract:
1.

The DOC will provide transportation services and security
personnel required for off~site hospitalization care and specialty
services, provided that PHS requests and schedules
transportation needs in advance, except in case of emergencies.
PHS will be responsible for the arrangement and associated cost
of ambulance services when transportation by ambulance is
req1;1ired.

9

1238.

2.

The DOC shall be responsible for the physical security of the
Correctional Center facilities and the continuing security of
inmates, however, it shall be an affirmative duty of PHS to
follow the rules and directions of the DOC with respect to
security and conduct its operations in a secure manner in
accordance with those rules and directions.

3.

The DOC will provide food, clean linens and security for
inmates in the infirmaries.

4.

The DOC will provide office space and the DOC owned office
furniture and equipment now in place at the Correctional
Centers. All such property will at all times remain the property
of the DOC and must be accounted for by PHS. Any new
additional equipment and supplies required by PHS, together
with the maintenance of such equipment, shall be the
responsibility of PHS. The DOC will be responsible for regular
maintenance and replacement of the DOC owned equipment,
however, PHS shall reimburse the DOC for any costs of repairs
resulting from abuse of the DOC equipment. At the termination
of this contract, PHS shall return to the DOC possession and
control of all the DOC owned medical and office equipment. At
such time, the medical and office equipment shall be in good
working order, reasonable wear and tear excepted.

5.

PHS will retain the title to computers provided by PHS for
administrative services; but any software purchased by PHS for
use at the Institutions shall to the extent permitted under the
applicable software licensing agreement(s), be licensed to the
DOC and shall become the property of the DOC. It is
understood that PHS owns all right, title and interest to any
software developed by PHS and used by PHS in conjunction
with the services under this Contract.

6.

The DOC will provide public utilities, including: water and
electrical services, but PHS shall be responsible for payment of
its monthly telephone/fax bill and for any computer lines not
provided by the DOC. The DOC will provide PHS access to the
DOC's electronic mail network for the purpose of
communication with the DOC and between Institutions.

7.

Subject to the Commonwealth ofVirginia's Privacy Protection
Act and any similar state or federal law now or hereafter
existing, the DOC will provide, as-needed, information in the
DOC's possession pertaining to inmates that is reasonable and
necessary for PHS to adequately perform its obligations to the
DOC. PHS shall safeguard and protect such information about
inmates or about the DOC personnel from disclosure to any other

10

1238

party, except as may be necessary to obtain medical care for the
inmates or the DOC employees.
8.

III.

The DOC shall retain full responsibility for updating OBSCIS
records (which shall be termed CORIS records when the DOC's
new offender management software is installed), but it shall be a
duty of PHS as a part of its obligations under this Contract to
provide all medical, dental, and mental health information to the
DOC, which is needed to update those records.

STAFFING
A.

The negotiated staffmg plans for the Institutions are attached hereto as
Attachment III. In addition to the. staffing plans, the base staffmg plans,
attached hereto as Attached III-A, will serve as the basis for determining
liquidated damages. At the end of each monthly reconciliation period,
liquidated damages shall be assessed by DOC for the Contractor's
failure, if any, to provide health service workers in accordance with the
base staffmg plans of Attachment III-A. It shall be the duty of the
Contractor to promptly supply poe within twenty (20)calendar days
after the end of each monthly reconciliation period, with all information
deemed necessary by DOC to determine whether liquidated damages
should be assessed. Furthermore, DOC shall have the right to inspect the
Contractor's records, as it deems necessary, to ascertain and/or verifY
data. Once DOC has requested additional information, there will be
seven calendar days to submit the requested information. At the end of
the seven calendar day reconciliation period, deliberation is over and the
DOC may continue its collection of liquidated damages.
Notwithstanding the foregoing, in the event PHS continues to dispute the
liquidated damages, the parties shall follow the procedure for disputes
specified in Attachment II Section J. The DOC may, however, proceed
with the deduction of liquidated damages as the parties settle the dispute.
The Contractor shall provide an automated time and attendance system to
document the actual arrival/departure times of its staff at each Institution.
1.

It is the duty of the Contractor to manage its workforce so that
there is sufficient staffing on each and every shift at each
Institution in order to assure the delivery of both routine and
emergency health care services to all inmates at all times. The
following specific rules apply with respect to primary care
physicians.

At each Institution, at least one primary care physician must be
present for duty during the day shift each weekday, except
holidays, weekends, or two continuous days of absence (e.g.
training, sick time) from the Institution when no primary care
physicians need be present, but at least one must be on call per
Institution and readily available for emergencies.

11

2.

With respect to nursing, the minimum permissible nursing staff
for each shift on weekdays, weekends and holidays is· shown on
Attachment III to this Memorandum of Understanding. These
minimum staffing levels of nurses and nursing assistants shall be
referred to as "Base Staffing" (Attachment III). Liquidated
damages for failure to maintain base staffmg at all times shall be
assessed in the following manner.
a.

B.

Beginning on May 1, 2006, if the Contractor fails to
maintain the base staffing level of Registered Nurses,
Licensed Practical Nurses and/or nursing assistants on
any shift, then liquidated damages will be assessed for
that shift at that fustitution by multiplying the number of
hours short in that particular category of employee (i.e.,
RN, LPN, etc.) times the dollar rate per hour shown in
Attachment IV. Monthly aging of these categories of
employees is explained in Attachment IV.

3.

RN's may be substituted for LPN's and LPN's may be
substituted for certified nursing assistants to avoid a shortfall in
staffing, but certified nursing assistants cannot be substituted for
LPN's or RN's and LPN's cannot be substituted for RN's.

4.

Health services workers employed by the Contractor at one of
the Institutions may not be used at another facility as substitute
workers unless they are working overtime in addition to their
regular work at the facility to which they are assigned.

5.

Health services worker hours may be covered by use of overtime
work, by use of qualified Contractor staff or by the use of
"locum tenens" health services workers. Any "locum tenens"
health services worker or any other health services worker not
regularly assigned to a facility must have a satisfactory DOC
background investigation completed prior to being allowed into
the Institution just the same as any permanent employee. . If
approved by the appropriate Deputy Director or his designee, the
applicant may be hired on a probationary basis pending the
completion of a favorable VCIN/NCIC and DMV check. A
background investigation will then be made and a report
provided. The Contractor will communicate to all new
e,mployees that their continued employment at any DOC site is
contingent upon successful completion of the complete
background check.

Liquidated damages for failure to staff in accordance with the base
staffing levels of Attachment III-A may be determined by the DOC and
withheld from payments due to the Contractor in accordance with the
procedure described in Section III. A. above. To the extent that
liquidated damages exceed the payments due to the Contractor, if ever,

12

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the Contractor shall make payment to the DOC within thirty days after
receiving the DOC's invoice.

N.

RISKIREWARD SHARING POOLS
A.

Off-Site Medical Services Pool: Due to the uncertainty of future health
care cost trends, an "Off-Site Medical Services Pool" has been
incorporated into the contract pricing. For the purposes of this contract,
"off-site medical services" are defined as only telemedicine
consultations, inpatient hospitalization, outpatient hospital care and
physician or other health care provided by some entity other than PHS
away from the DOC fustitutions and billed through the DOC third party
administrator.
Annually, a computation of off-site medical costs will be performed by
comparing the total medical expenditures paid by the DOC third party
administrator on behalf of the contractor during the contract year to the
Off-Site Medical Services Pool dollar amount for the comparable period.
See Attachment V for illustration of annual settlement computation.
Based on the variance between actual off-site medical costs incurred and
the Medical Services Pool amounts (determined by multiplying the
Medical Services Pool Per fumate amount times the actual ADP for the
contract period), PHS will be paid for additional costs incurred, or the
DOC will be reimbursed for savings achieved according to the settlement
computations shown on Attachment V.
Medical Care Off-Site Services Risk/Reward Pool Amounts per
inmate:
5/1/06-4/30/07
Fluvanna
$1,461
$1 ,212
Greens ville
Sussex I
$ 592
$ 417
Sussex II
Powhatan
$1,920

B.

Staffing Pools: Based on the staffing costs, a "Staffing Pool" has been
developed to provide a risk/reward cost sharing relationship between the
DOCandPHS.
Annually, a reconciliation of the total actual staffmg costs (computed by
totaling the actual payroll dollars plus benefit costs computed at 22% of
payroll dollars plus all on-site contract physician and agency nursing
costs) will be performed utilizing pay period reports comparing the total
actual staffing costs. Within 180 days of the end of each contract year
(90 days for PHS to send pay period reports to DOC and then 90 days for
DOC to verify PHS staffmg costs), a reconciliation and settlement will
be done. The DOC and PHS will share costs equally up to 10% in excess
or 10% below the staffing pool dollar amount. Costs incurred which
exceed 10% of the staffing pool dollars will be reimbursed to PHS by the

13
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DOC. All savings below 10% of the staffing pool dollars will go to the
DOC. See Attachment VI for illustration of annual settlement.
Staffing Pool Dollar amounts for the first year ending 4/30/07:
5/1/06 - 4/30/07
Fluvanna
$3,957,000
Greensville
$7,533,000
$2,276,000
Sussex I
$2,091,000
Sussex II
Powhatan
$4,290,000

V.

NON-COMPLIANCE WITH STANDARDS OF PERFORMANCE
A.

fu order to provide quality health services for the inmates entrusted to the
care and keeping of the Department of Corrections, the Contractor shall
at all times meet ACA Health Care Standards as contained in the
Standards for Adult Correctional fustitutions, with supplements, as
amended or superseded from time to time. DOC will seek ACA
Accreditation for each of the facilities covered by this Contract. ACA
accreditation audits will be conducted approximately every three years.
If, during an ACA accreditation audit, a facility is found to be deficient
in any health care standards, the Contractor shall pay to DOC as
liquidated damages the sum of$10,000 for any deficient mandatory
standard and $7,500 for any deficient non-mandatory standard. If a
facility fails an ACA Accreditation Audit and receives a reconsideration
audit, the liquidated damages for any health care standard found deficient
shall be twice the liquidated damages stated above. fu no event shall
PHS be responsible for liquidated damages in the event a deficiency was
the result of actions or inactions on the part of the DOC.

B.

The Contractor shall also at all times meet the Virginia State Board of
Corrections Standards pertaining to health care, as amended or
superseded from time to time. State Board of Corrections audits are
conducted approximately every three years. For each health care
standard for which an fustitution is deficient during a State Board of
Corrections audit, the Contractor shall be assessed liquidated damages of
$3,000. On any re-audit by the State Board of Corrections, the
Contractor shall be assessed liquidated damages of $6,000 for any
deficient health care standard.

C.

fu between ACA Accreditation Audits and State Board of Corrections
audits, DOC may conduct ongoing evaluations of the Contractor's
performance using ACA and State Board of Corrections standards. If the
DOC determines that the Contractor is persistently failing to meet one or
more of the standards contained in either the ACA or State Board of
Corrections Standards, the DOC may notify the Contractor that it will
conduct a formal audit of its own within the next 30 to 60 days, using
ACA Standards, State Board of Corrections Standards, or both. The
DOC will assess the same liquidated damages for deficiencies found

14

1238

during these audits as it would during an official ACA or State Board of
Corrections Audit.

VI.

D.

At PHS' request, not more than once in any contract year per Institution,
with respect to each of the following standards, the DOC will do a
courtesy evaluation of PHS in accordance with ACA Standards and/or
State Board of Corrections Standards.

E.

Liquidated damages for failure to comply with standards of performance
referenced in Section V. may be determined by the DOC and withheld
from payments due to the Contractor. To the extent that liquidated
damages exceed the payments due to the Contractor, if ever, the
Contractor shall make payment to the DOC within thirty days after
receiving the DOC's invoice.

MISCELLANEOUS PROVISIONS
A.

Renewal of the Contract: This contract may be extended at the option of
the DOC, for five (5) additional renewal periods of one year each, under
the same terms and conditions, subject only to a change in compensation
as provided by below. The DOC will provide PHS with 60 days notice
prior to the end of the current term of its intent to renew or cancel this
Contract.
Fee Adjustments: Upon the Contractor's written request and DOC's
written approval, commencing on May 1, 2007 and each year thereafter,
the fees paid by the DOC shall be increased subject to negotiation but not
to exceed the Consumer Price Index (CPI-W) for Medical Care category
of the U.S~ Department of Labor Consumer Price Index for the
following: Price schedules, liquidated damage rates, dialysis lab
surcharge, staffmg and off-site medical pool amounts. Any increase or
decrease in the fee resulting from negotiations shall be adjusted and set
forth as a Contract Modification at the time of contract renewal. The fact
that health care provider contracts entered into by DOC's Third Party
Administrator may or may not increase or decrease at different rates or
on different dates shall not give PHS any claim to an adjustment in its
compensation :

B.

Termination of Contract:

1.

Termination for Breach by the Contractor: In the event of breach
of the contract by PHS, the DOC may elect to send the President
ofPHS a Cure Notice, specifying the nature of the breach and
giving PHS a specific period of time in which to cure the breach.
The time period to cure the breach shall be not exceed thirty (30)
days from the date of receipt of the Cure Notice by PHS or ifthe
breach is of such nature as cannot be completely remedied within
said thirty (30) day time period, then PHS shall have commenced
such cure within that thirty (30) day time period and shall

15

1239

request from the DOC a reasonable extension to complete the
Cure. Any extension of the Cure period shall be subject to DOC
approval and shall be confirmed in writing (request from PHS in
writing and approval from the DOC in writing). If the DOC
elects to give PHS a cure notice and PHS fails to cure the breach
to the reasonable satisfaction of the DOC after the Cure Notice
time period, the President of PHS shall be notified of termination
for breach by a written Termination Notice, which may specify
that the contract is terminated immediately, as of a specific date,
or in stages. In the event a court of competent jurisdiction or any
other method of conflict resolution adopted by the parties
determines that PHS did not, in fact, breach the contract, the
termination shall be deemed to have been a termination by the
DOC for the convenience of the Commonwealth, except that no
prior notification or other procedures required herein for
termination for the convenience of the Commonwealth shall be
required.
A provision of twenty-five percent (25%) retainage of the annual
value of the contract is owed to the DOC by the Contractor if the
Contractor defaults or breaches the Contract.
Notwithstanding any other Contract provision to the contrary, if
the Contractor shall have refused to perform the Contract or shall
have otherwise defaulted and failed to cure the default within the
Cure Notice time period and/or, if there are unpaid providers of
materials and/or labor at the time the Contract ends or is
breached by the Contractor, and the Contractor has failed to cure
within the Cure Notice time period then the DOC shall have the
right to retain from any amounts due to the Contractor the sum of
the twenty-five percent (25%) annual value of the Contract. The
DOC shall have the right to use said retained money to pay any
providers of materials and/or labor for the materials and/or labor
provided; to reimburse itself for all reasonable costs to itself, if
any, arising from the Contractor's breach; and to reimburse itself
for any money, which may be owed to it by the Contractor. Use
of said money for said purposes shall not release the Contractor
from liability for damages or any money owed in excess of the
amount retained and used for said purposes. The DOC shall
account to the Contractor for all such money retained and the
manner of its disposal. All such money not paid out for the
allowed purposes shall be paid to the Contractor. The DOC's
right to reimburse suppliers of material and labor shall not
constitute an obligation to do so, nor shall the DOC's decision to
pay the remaining monies over to the Contractor constitute a
guarantee that any or all such suppliers have been paid. The
right to retain such sums from monies due to the Contractor and
to utilize them in the manner described in this paragraph shall be
in addition to and not in lieu of any other rights, which the DOC
may have under the terms of this Contract and in law and at
equity. The DOC may exercise the rights granted it in this

16

1239

paragraph without reducing its claims against the Contractor to
judgment and may pay suppliers of materials and labor without
requiring that they reduce their claims against the Contractor to
judgment prior to payment by the DOC.
2.

Termination for Breach by the DOC: In the event of breach of
contract by the DOC, PHS may elect to send the DOC a Cure
Notice, specifying the nature of the breach and giving DOC a
specific period of time, not less than 30 days, in which to cure
the breach. If PHS elects to give the DOC a cure notice and the
DOC fails to cure the breach to the satisfaction of PHS, the DOC
shall be notified of termination for breach by a written
Termination Notice, which may specify that the contract is
terminated immediately or as of a specific date.

3.

Termination Due to Unavailability of Funds: The DOC shall
request an appropriation from the General Assembly of Virginia
sufficient to funds its needs, including but not limited to the
funding of this contract. Nevertheless, the payment of money by
the DOC under any provision of this Contract is contingent upon
the availability of funds appropriated by the General Assembly
of Virginia. In the event that sufficient funds for this contract
become unavailable due to non-appropriation or an insufficient
appropriation to the DOC to cover all of its monetary needs, the
DOC shall promptly notify the Contractor of such
nonappropriation or insufficient appropriation and the DOC shall
have the right to terminate this Contract without payment of
damages as of the date upon which, in the judgment of the DOC,
sufficient funds will no longer be available. Ifterminated under
this provision, the Contractor shall not be entitled to lost profits
or any other type of damages, except that it shall be paid for all
amounts then due under the terms of this Contract, if any, and
the fees and reimbursements which become due under the terms
of this Contract for services actually rendered subsequent to
Notice ofTermination. -

4.

Termination for the Convenience of the Commonwealth: The
DOC may terminate this Contract in whole or in part whenever,
for any reason, the Department determines that it is in the best
interest of the DOC, an agency of the Commonwealth of
Virginia, to do so. The DOC shall give PHS written Notice of
Termination at least sixty (60) days prior to termination date,
specifying the extent and effective date(s) of the termination or
termination by stages. Upon termination for the convenience of
the Commonwealth, the Contractor shall have no right to any
general, special, incidental or other damages or any description
or amount, except that it shall be paid for all amounts then due
under the terms of this Contract, if any, and the fees and
reimbursements which become due under the terms of this
contract for services actually rendered subsequent to Notice of
Termination.

17

1239

5.

Contractor's Right of Termination Other Than for Breach: The
Contractor may not terminate the Contract except for the DOC's
breach of the Contract during the first two contract years.
Subsequent to the first two contract years, the Contractor may
terminate the Contract for any reason simply by giving not less
than ninety (90) days advance written notice to the Director of
the DOC, which notice shall be effective upon receipt. Although
the Contractor may not terminate the Contract under this
provision with respect to the first two contract years, the
Contractor may give notice at any time during the first two years
with respect to any of the subsequent years.

6.

Contractor's Duties in Event of Termination: In the event of
termination, whether because the term of the Contract has ended,
because of breach by the Contractor, because of breach by the
DOC, because of lack of funding, or because of termination for
the convenience of the Commonwealth, the Contractor shall
cooperate with the DOC in the transition to the follow-on health
services provider, whether it be another company or the DOC
itself. During the transition it shall be the duty of the Contractor:
a.

to continue providing health·services to the inmates in
all Institutions until such duties are actually taken over
by the successor health services provider, so that at no
time are the inmates in the Institutions served by PHS
without health services;

b.

to coordinate the transition with the successor health
services provider and to fully inform the successor
health services provider about the medical conditions of
all inmate patients;

c.

to preserve and turn over to the DOC all records of any
type, whether electronic or paper, which are maintained
by the Contractor with respect to the performance of the
Contract, including, but not limited to, inmate medical
records and PHS employee records;

d.

to preserve, inventory, account for and tum over to DOC
all property belonging to DOC, including, but not
limited to, computers and office furniture;

e.

to preserve, inventory, account for and tum over to the
DOC any and all pharmaceuticals and supplies on hand
at the Institutions or in shipment to the Institutions; and,

f.

to allow the successor health services provider timely
access to PHS's employees at the Institutions to

18

1239

interview them and to offer any or all of them future
employment.
7.

The DOC's Duties in Event of Termination: In the event of
termination, whether because the term of the Contract has ended,
because of breach by the Contractor, because ofbreach by the
DOC, because of lack of funding, or because of termination for
the convenience of the Commonwealth, the DOC shall facilitate
the Contractor's transition out of service and shall require the
successor health services provider, whether it be another
company or the DOC, to interview and offer continuing
employment to as many of the Contractor's willing employees at
each Institution as the successor health services provider deems
suitable and needed in its operations.

8.

Payments upon Termination: ill the event of termination,
whether because the term of the Contract has ended, because of
breach by the Contractor, because of breach by the DOC,
because of lack of funding, or because of termination for the
convenience of the Commonwealth, the DOC shall promptly pay
the Contractor all amounts due to it in accordance with the
normal schedule for monthly payment, subject to withholding
any amounts in dispute, any liquidated damages, or any amounts
(per VI, B.l.) which the Contractor may owe to the DOC. The
DOC may also withhold amounts which it deems sufficient to
offset any amounts which its Third Party Administrator may
have paid, or will pay, on behalf of the Contractor, any
anticipated liquidated damages, or any other amounts which it
believes the Contractor owes or will owe to the DOC, and, when
it has ascertained to its satisfaction the amounts owed to it by the
Contractor, it may offset the amounts owed to it against the
amounts which it owes to the Contractor and shall pay the
remainder to the Contractor with a full accounting of the
amounts owed and the amounts offset.
The third party administration accounting withhold will be
calculated by multiplying 110% by the total of 25% of the latest
twelve (12) months Third Party Administrator charges related to
the contracted facility, adjusted for the estimated Staffing Pool
and Of-Site Medical Services Pool settlements. Final settlement
of any amounts withheld will be based on the date on which no
Third Party Administrator charges paid subsequent to the
termination date of the contract are made for two (2) successive
months or eighteen (18) months, whichever is sooner. PHS shall
be paid interest on the average outstanding balance of any
amount withheld by the DOC at a rate determined by the Prime
Interest Rate as published in the Wall Street Journal on the date
on which the contract terminates, plus 2.0%.
Should the contract be terminated as of a date other than the end
of a contract year, the annual Staffing Pool and Off-Site Medical

19

Service Pool baseline amounts will be pro-rated for the number
of days during which the contract was in force during the year,
calculated using a formula based on a thirty (30) day month and
three hundred sixty (360) day contract year.
C.

VII.

The assessment and collection of liquidated damages for PHS's failure to
staff or failure to meet standards is not an exclusive remedy and shall not
preclude the DOC from terminating the Contract in whole or in part,
because of such failures.

FEE STRUCTURE
A.

The basic fees for services provided by PHS at each Institution which it
serves shall be calculated by determining the Average Daily Population
(ADP) for that Institution during the month in question, using the
·
Institution's headcount plus any assigned to the Institution who are
receiving medical care elsewhere and are still the responsibility of PHS
and adding together the monthly costs of medical, dental and mental
health services shown for that ADP on the Pricing Schedule for that
Institution, as listed on Attachment VI. Attachment VI includes Pricing
Schedules for Greensville Correctional Center, Greensville Work Center,
Powhatan Correctional Center, Fluvanna Correctional Center, and
Sussex I State Prison and Sussex II State Prison.

B.

The Average Daily Population (ADP) used for calculating the fee for
service will be calculated by adding the official DOC Institutional daily
inmate count for each day during the month in question at the Institution
in question, plus the number of inmate/days for inmates admitted to
hospitals from that Institution during that month, divided by the number
of days in that particular month.

C.

PHS shall invoice for services rendered during the course of each
calendar month within 5 work days after the end of each calendar month.
DOC shall pay all undisputed amounts fot services rendered during each
calendar month within 30 days after receipt of the PHS invoice, less any
offsets as described above herein.

IN WITNESS WHEREOF, each ofthe parties has caused this Memorandum of Understanding to
be executed on its behalf by the undersigned.
PRISON HEALTH SERVICES, INC.

COMMONWEALTH OF
VIRGINIA
DEPARTMENT OF
CORRECTIONS

A corporation under the laws of the
State ofDelaware
BY: _______________________

BY: ______________________
Gene Johnson, Director

Date: - -- - -- -- - - -- -

Date: -- - -- - -- - - - - -

20

1239

ATTACHMENT I

GENERAL TERMS AND CONDITIONS

A.

VENDORS MANUAL: This contract is subject to the provisions of the
Commonwealth of Virginia Vendors Manual and any revisions thereto, which are
hereby incorporated into this contract in their entirety. A copy of the manual is
normally available for review at the purchasing office and in addition a copy can
be obtained by calling the Division of Purchases and Supply (804) 786-3842.

B.

APPLICABLE LAWS AND COURTS: This contract shall be governed in all
respects by the laws of the Commonwealth ofVirginia and any litigation with
respect thereto shall be brought in the courts of the Commonwealth. The
Contractor shall comply with all applicable federal, state and local laws, rules
and regulations.

C.

ANTI-DISCRIMINATION: The Contractor certifies to the Commonwealth that
it's firm will conform to the provisions of the Federal Civil Rights Act of 1964,
as amended, as well as the Virginia Fair Employment Contracting Act of 1975,
as amended, where applicable, the Virginians With Disabilities Act, the
Americans With Disabilities Act and §11-51 ofthe Virginia Public Procurement
Act.
In every contract over $10,000 the provisions in 1. and 2. below apply:

1.

During the performance of this contract, the Contractor agrees as
follows:
a.

The Contractor will not discriminate against any employee or
applicant for employment because of race, religion, color, sex,
national origin, or disabilities, except where religion, sex or
national origin is a bona fide occupational qualification
reasonably necessary to the normal operation of the Contractor.
The Contractor agrees to post in conspicuous places, available to
employees and applicants for employment, notices setting forth
the provisions of this nondiscrimination clause.

b.

The Contractor, in all solicitations or advertisements for
employees placed by or on behalf of the Contractor, will state
that such Contractor is an equal opportunity employer.

c.

Notices, advertisements and solicitations placed in accordance
with federal law, rule or regulation shall be deemed sufficient for
the purpose of meeting these requirements.

21

2.

The Contractor will include the provlSlons of 1. above in every
subcontract or purchase order over $10,000, so that the provisions will be
binding upon each subcontractor or vendor.

D.

ETIDCS IN PUBLIC CONTRACTING: The Contractor certifies that it's
proposal was made without collusion or fraud and that they have not offered or
received any kickbacks or inducements from any other Offeror, supplier,
manufacturer or subcontractor in connection with their bid, and that they have
not conferred on any public employee having official responsibility for this
procurement transaction any payment, loan, subscription, advance, deposit of
money, services or anything of more than nominal value, present or promised,
unless consideration of substantially equal or greater value was exchanged.

E.

IMMIGRATION REFORM AND CONTROL ACT OF 1986: The
Contractor certifies that it's firm will not during the performance of this contract
employ illegal alien workers or otherwise violate the provisions of the federal
Immigration Reform and Control Act of 1986.

F.

DEBARMENT STATUS: The Contractor certifies that it's firm is not currently
debarred by the Commonwealth of Virginia from submitting bids or proposals on
contracts for the type of goods and/or services covered by this solicitation, nor
are they an agent of any person or entity that is currently so debarred.

G.

ANTITRUST: By entering into a contract, the Contractor conveys, sells,
assigns, and transfers to the Commonwealth of Virginia all rights, title and
interest in and to all causes of action it may now have or hereafter acquire under
the antitrust laws of the United States and the Commonwealth of Virginia,
relating to the particular goods or services purchased or acquired by the
Commonwealth of Virginia under said contract.

H.

PAYMENT:
1.

To Prime Contractor:
a.

Invoices for items ordered, delivered and accepted shall be
submitted by the Contractor directly to the payment address
shown on the purchase order/contract. All invoices shall show
the state contract number and/or purchase order number, social
security number (for individual Contractors) or the federal
employer
identification
number
(for proprietorships,
partnerships, and corporations).

b.

Any payment terms requiring payment in less than 30 days will
be regarded as requiring payment 30 days after invoice or
delivery, whichever occurs last. This shall not affect offers of
discounts for payment in less than 30 days, however.

c.

All goods or services provided under this contract or purchase
order, that are to be paid for with public funds, shall be billed by
the Contractor at the contract price, regardless of which public
agency is being billed.

22
123~

2.

d.

The following shall be deemed to be the date of payment: the
date of postmark in all cases where payment is made by mail, or
the date of offset when offset proceedings have been instituted as
authorized under the Virginia Debt Collection Act.

e.

Unreasonable Charges.
Under certain emergency
procurements and for most time and material purchases, final job
costs cannot be accurately determined at the time orders are
placed. In such cases, Contractors should be put on notice that
final payment in full is contingent on a determination of
reasonableness with respect to all invoiced charges. Charges,
which appear to be unreasonable, will be researched and
challenged, and that portion of the invoice held in abeyance until
a settlement can be reached. Upon determining that invoiced
charges are not reasonable, the Commonwealth shall promptly
notify the Contractor, in writing, as to those charges, which it
considers unreasonable, and the basis for the determination. A
Contractor may not institute legal action unless a settlement
cannot be reached within thirty (30) days of notification. The
provisions of this section do not relieve an agency of its prompt
payment obligations with respect to those charges, which are not
in dispute (Code of Virginia, § 11-69).

To Subcontractors:
a.

b.

A Contractor awarded a contract under this solicitation is hereby
obligated:
(1).

To pay the subcontractor(s) within seven (7) days of the
Contractor' s
receipt
of
payment
from
the
Commonwealth for the proportionate share of the
payment received for work performed by the
subcontractor( s) under the contract; or

(2).

To notify the agency and the subcontractor(s), in writing,
of the Contractor's intention to withhold payment and
the reason.

The Contractor is obligated to pay the subcontractor(s) interest at
the rate of one percent per month (unless otherwise provided
under the terms of the contract) on all amounts owed by the
Contractor that remain unpaid seven (7) days following receipt
of payment from the Commonwealth, except for amounts
withheld as stated in (2) above. The date of mailing of any
payment by U. S. Mail is deemed to be payment to the
addressee. These provisions apply to each sub-tier Contractor
performing under the primary contract.
A Contractor's
obligation to pay an interest charge to a subcontractor may not
be construed to be an obligation of the Commonwealth.

23

1239f

I.

PRECEDENCE OF TERMS: Paragraphs A-H of these General Terms and
Conditions shall apply in all instances. In the event there is a conflict between
any of the other General Terms and Conditions and any Special Terms and
Conditions in this solicitation, the Special Terms and Conditions shall apply.

J.

TESTING AND INSPECTION: The Commonwealth reserves the right to
conduct any test/inspection it may deem advisable to assure goods and services
conform to the specifications.

K.

ASSIGNMENT OF CONTRACT: A contract shall not be assignable by the
Contractor in whole or in part without the written consent of the Commonwealth.

L.

CHANGES TO THE CONTRACT: Changes can be made to the contract in
any of the following ways:
1.

The parties may agree in writing to modify the scope of the contract. An
increase or decrease in the price of the contract resulting from such
modification shall be agreed to by the parties as a part of the written
contract to modify the scope of the contract.

2.

The Purchasing Agency may order changes within the general scope of
the contract at any time by written notice to the Contractor. Changes
within the scope of the contract include, but are not limited to, things
such as services to be performed, the method of packing or shipment, and
the place of delivery or installation. The Contractor shall comply with
the notice upon receipt. The Contractor shall be compensated for any
additional costs incurred as the result of such order and shall give the
Department of Corrections a credit for any savings. Said compensation
shall be determined by one of the following methods:
a.

By mutual agreement between the parties in writing; or

b.

By agreeing upon a unit price or using a unit price set forth in the
contract, if the work to be done can be expressed in units, and
the Contractor accounts for the number of units of work
performed, subject to the Department of Correction's right to
audit the Contractor's records and/or to determine the correct
number ofunits independently; or

c.

By ordering the Contractor to proceed with the work and keep a
record of all costs incurred and savings realized. A markup for
overhead and profit may be allowed if provided by the contract.
The same markup shall be used for determining a decrease in
price as the result of savings realized. The Contractor shall
present the Department of CorreCtions with all vouchers and
The
records of expenses incurred and savings realized.
Department of Corrections shall have the right to audit the
records of the Contractor, as it deems necessary to determine
costs or savings. Any claim for an adjustment in price under this
provision must be asserted by written notice to the Department
of Corrections within thirty (30) days from the date of receipt of

24

1239

the written order from the Department of Corrections. If the
parties fail to agree on an amount of adjustment, the question of
an increase or decrease in the contract price or time for
performance shall be resolved in accordance with the procedures
for resolving disputes provided by the Disputes Clause of this
contract or, if there is none, in accordance with the disputes
provisions of the Commonwealth of Virginia Vendors Manual.
Neither the existence of a claim nor a dispute resolution process,
litigation or any other provision of this contract shall excuse the
Contractor from promptly complying with the changes ordered
by the Department of Corrections or with the performance of the
contract generally.
d.

During the term of the Contract, the DOC will not process a
Contract Modification involving money unless the change has an
annualized impact to the Contractor of greater than $100,000
and/or will be implemented at the time of Contract renewal
subject to section VI. A. of this Contract.

M.

DEFAULT: In case of failure to deliver goods or services in accordance with
the contract terms and conditions, the Commonwealth, after due oral or written
notice, may procure them from other sources and hold the Contractor responsible
for any resulting additional purchase and administrative costs. This remedy shall
be in addition to any other remedies, which the Commonwealth may have.

N.

TAXES: Sales to the Commonwealth of Virginia are normally exempt from
State sales tax. State sales and use tax certificates of exemption, Form ST-12,
will be issued upon request. Deliveries against this contract shall usually be free
of Federal excise and transportation taxes. The Commonwealth's excise tax
exemption registration number is 54-73-0076K.

0.

INSURANCE: The Contractor certifies it will have the following insurance
coverage at the time the contract is awarded. For construction contracts, if any
subcontractors are involved, the subcontractor will have workers' compensation
insurance in accordance with §§ 2.2-4332 and 65.2-800 et seq. of the Code of
Virginia.
·
The Offeror further certifies that the Contractor and any subcontractors will
maintain the insurance coverage during the entire term of the contract and that all
insurance coverage will be provided by insurance companies authorized to sell
insurance in Virginia by the Virginia State Corporation Commission.
INSURANCE COVERAGES AND LIMITS REQUIRED:
1.

Worker's Compensation - Statutory requirements and benefits; require
that the Commonwealth of Virginia be added as an additional named
insured on Contractor's policy.

2.

Employers Liability- $100,000.

25

12401

3.

Commercial General Liability - $500,000 combined single limit. The
Commonwealth of Virginia must be named as an additional insured with
respect to the services being procured. These coverages are to include
Products and Completed Operations Coverage.

4.

Automobile Liability- $500,000- Combined single limit.

5.

Health Care Practitioner (to include Dentists, Optometrists, Nurses,
Pharmacists, Doctors, etc.) - $1,000,000 per occurrence, $3,000,000
aggregate

The Commonwealth of Virginia is to be named as additional insured with respect
to the services being procured. In addition, at the request of the Virginia
Department of Corrections, the Contractor shall cause any state, territory of the
United States, the United States, the United States of America itself, other
political entity and/or the corrections department of any of the foregoing, whose
felons are incarcerated in facilities of the Virginia Department of Corrections, to
be an additional insured under the Contractor's liability policies described above,
including but not limited to the Contractors policies of insuring against the
professional liability of health care practitioners.

P.

DRUG FREE WORKPLACE: The Contractor acknowledges and certifies that
it understands that the following acts by the Contractor, its employees, and/or
agents performing services on state property are prohibited:
1.

The unlawful manufacture, distribution, dispensing, possession or use of
alcohol or other drugs; and

2.

Any impairment or incapacitation from the use of ~lcohol or other drugs
(except the use of drugs for legitimate medical purposes).

The Contractor further acknowledges and certifies that it understands that a
violation of these prohibitions constitutes a breach of contract and may result in
default action being taken by the Commonwealth in addition to any criminal
penalties that may result from such conduct.
The Contractor's employees will be subject to a pre-employment drug screening.
All contract personnel shall be subject to post accident drug testing and testing
where reasonable suspicion exists that the terms of this clause have been
violated. In addition, Contractors who work in correctional facilities, detention
centers, boot camps, diversion centers, probation and parole offices, day
reporting centers, and central or regional offices or with offenders will be subject
to random urinalysis testing.

26

1240:

ATTACHMENT II
SPECIAL TERMS AND CONDITIONS:
A.

ADVERTISING: In the event a contract is awarded for supplies, equipment, or
services resulting from this bid/proposal, no indication of such sales or services
to the Department of Corrections will be used in product literature or advertising.
The Contractor shall not state in any of its advertising or product literature that
the Commonwealth of Virginia or any agency or Institution of the
Commonwealth has purchased or uses its products or services.

B.

AUDIT: The Contractor shall retain all books, records, and other documents
relative to this contract for five (5) years after final payment, or until audited by
the Commonwealth of Virginia, whichever is sooner. The Department of
Corrections, its authorized agents, and/or state auditors shall have full access to
and the right to examine any of said materials during said period.

C.

AVAILABILITY OF FUNDS: It is understood and agreed between the parties
herein that the Department of Corrections shall be bound hereunder only to the
extent of the funds available or which may hereafter become available for the
purpose of this agreement.

D.

INDEMNIFICATION: Contractor agrees to indemnify, defend and hold
harmless the Commonwealth of Virginia, its officers, agents, and employees
from any claims, damages and actions of any kind or nature, whether at law or in
equity, arising from or caused by the use of any materials, goods, or equipment
of any kind or nature furnished by the Contractor/any services of any kind or
nature furnished by the Contractor, provided that such liability is not attributable
to the sole negligence of the using agency or to failure of the using agency to use
the materials, goods, or equipment in the manner already and permanently
described by the Contractor on the materials, goods or equipment delivered.

E.

INSPECTION OF JOB SITE: The Contractor certifies that it's staff has
inspected the job site and are aware of the conditions under which the work must
be accomplished. Claims, as a result of failure to inspect the job site, will not be
considered by the Commonwealth.

F.

MINORITY/WOMEN OWNED BUSINESSES SUBCONTRACTING AND
REPORTING: Where it is practicable for any portion of the awarded contract to
be subcontracted to other suppliers, the Contractor is encouraged to offer such
business to minority and/or women-owned businesses. Names of firms may be
available from the buyer and/or from the Division of Purchases and Supply.
When such business has been subcontracted to these firms and upon completion
of the contract, the Contractor agrees to furnish the purchasing office the
following information: name of firm, phone number, total dollar amount
subcontracted and type of product/service provided.

G.

PRIME CONTRACTOR RESPONSffiiLITIES: The Contractor shall be
responsible for completely supervising and directing the work under this contract
and all subcontractors that he may utilize, using his best skill and attention.
Subcontractors who perform work under this contract shall be responsible to the

27
124~

prime Contractor. The Contractor agrees that he is as fully responsible for the
acts and omissions of his subcontractors and of persons employed by them as he
is for the acts and omissions of his own employees.

H.

SUBCONTRACTS: No portion of the work shall be subcontracted without
prior written consent of the Department of Corrections. In the event that the
Contractor desires to subcontract some part of the work specified herein, the
Contractor shall furnish the Department of Corrections the names, qualifications
and experience of their proposed subcontractors. The Contractor shall, however,
remain fully liable and responsible for the work to be done by its subcontractor(s)
and shall assure compliance with all requirements of the contract.

I.

WORK SITE DAMAGES: Any damage to existing utilities, equipment or
finished surfaces resulting from the performance of this contract shall be repaired
to the Commonwealth's satisfaction at the Contractor's expense.

J.

CONTRACTUAL DISPUTES: In Accordance with Section 12.2-4363 of the
Code of Virginia, claims arising out of this contract, whether for money or other
relief, may be submitted by the Contractor for consideration by the DOC, by
submitting the claim in writing, with all necessary data and information to
substantiate the claim attached, to the Director, Department of Corrections, 6900
Atmore Drive, Richmond, VA 23225, no later than sixty (60) days after a
payment by the DOC on the contract; provided, however, that no claim may be
submitted unless written notice of the Contractor's intention to file the claim has
been submitted at the time of the occurrence or at the beginning of the work upon
which the claim is based. The DOC shall render a fmal written decision upon the
claim within 90 days after the claim is submitted unless the parties agree to an
extension of time in which the DOC may make its decision. If the DOC should
fail to render its decision within ninety (90) days, the Contractor's sole remedy
for such failure will be that the Contractor then has the right to institute legal
action pursuant to Section 11-70 of the Code of Virginia. The Contractor shall
not be granted his claim or any other relief by the DOC or any court simply as a
result of delay in rendition of a decision by the DOC. Pending fmal decision of a
dispute hereunder, the Contractor shall proceed diligently with performance of
this contract, and failure to do so shall be deemed a default. All time periods
specified above (except the initial sixty (60) day filing period) may be extended
by mutual agreement.

K.

DEFENSE AGAINST LAWSillTS: Any staff member provided by the
Contractor will fully cooperate with the DOC and Virginia Office of the Attorney
General in the defense of any lawsuits initiated against the DOC or any of its
employees. These staff members will work together with the Office of the
Attorney General in the preparation and execution of affidavits which the Office
of the Attorney General requests, and will provide the Office with any inmate
medical records which may be needed in the defense of any lawsuit against the
DOC or any of its employees. The Contractor further agrees that staff persons
will be available to testify in court proceedings when the Office of the Attorney
General informs these persons that their testimony is needed in the trial of any
action brought against the DOC or any of its employees.

28

1240

L.

OWNERSIDP OF MATERIAL: Ownership of all data, material and
documentation originated and prepared for the State pursuant to the RFP shall
belong exclusively to the Commonwealth of Virginia and be subject to public
inspection in accordance with the Virginia Freedom of Information Act. Trade
secrets or proprietary information submitted by a Contractor shall not be subject
to public disclosure under the Virginia Freedom of Infonnation Act; however, the
Contractor must invoke the protection of this section prior to or upon submission
of the data or other materials, and must identify the data or other material to be
protected and state the reasons why protection is necessary.

M.

MEDICAL RECORDS: The Selected Contractor shall maintain, cause, or
require to be maintained complete and accurate medical records for each inmate
who has received healthcare services utilizing the DOC's approved forms for
documenting such contracts. Each medical record will be maintained in
accordance with applicable laws, ACA standards, and the Virginia Board of
Corrections Standards. The medical records shall be kept separate from the
inmate's confinement record. A complete legible copy of the applicable medical
record shall be available to accompany each inmate who is transferred from the
facility to another location for off-site services or transferred to another
Institution. Medical records shall be kept confidential. Subject to applicable
law regarding confidentiality of such records, the Selected Contractor shall
comply with Virginia law with regard to access by inmates and staff to medical
records. No information contained in the medical records shall be released by the
Selected Contractor except as provided by the Correctional Institution's
Operation Procedure, by court order, or otherwise in accordance with applicable
law. The Selected Contractor shall, at its own cost, provide all medical records,
forms, jackets, and other materials necessary to maintain medical records. At the
expiration of the contract period, the DOC shall provide the Selected Contractor
with reasonable ongoing access to all medical records even after expiration of the
contract for the purpose of defending litigation. The medical records of inmates
shall at all times be the property of the Commonwealth of Virginia.

N.

CONFIDENTIAL INFORMATION: Any information provided by the DOC to
the Contractor that the DOC considers confidential shall be kept confidential by
the Contractor and shall not, except as may be required by law, be distributed to
any third party without prior written approval by the DOC. Notwithstanding any
provision of this contract to the contrary, the DOC's internal affairs investigation
records shall not be required to be provided to the Selected Contractor or any
other person or entity, except as required by law.

0.

NON-COMPETITION AGREEMENTS: The Contractor shall not include any
provision in the contract or terms of employment of any person working for the
Contractor to provide health services in DOC's intuitions, whether as an
employee or otherwise, which would preclude that persons from working for
DOC or a successor to the Contractor within the facilities.
The Contractor is prohibited from hiring DOC healthcare personnel for six (6)
months following their last date of DOC employment. If a DOC medical unit of
an Institution is added to the contract, then the Contractor may immediately hire
former DOC health-care personnel from the Institution.

29

124(

P.

HIRING PRACTICES: In the event a Contractor proposes to employ
ex-offenders, the DOC may determine that it is not in the best interest to
allow some ex-offenders to provide service. Some of the factors that the
DOC may consider are: where the ex-offender served time, the nature of
the crime and the length of time since sentence obligation was completed.

Q.

BACKGROUND CHECKS: The DOC may require full or partial
background checks for Contractor staff. The Contractor shall be required
to pay for all background checks processed for its on-site staff at the
current rate for a full background check - fees are on a per background
check basis.

30

1240

A'ITACHMENT III
Negotiated Staff
Greensville Correctional Center (GVCC)
Staffing Plan

Services

31

12401

Powhatan Correctional Center (PCC)
Staffmg Plan

32

1240'

Fluvanna Correctional Center for Women (FCCW)
Staffing Plan

33

124(

Sussex I State Prison (SISP)
Staffing Plan

34

1240 1

Sussex ll State Prison (SIISP)
Staffing Plan

VDOC Regional Office
Staffing Plan

*Dedicated to the UM program at tlte VDOC

35

1241

ATTACHMENT III-A
Base Staffing
Base Staffing is defmed as the minimum essential staff needed to be present at the
facility.

Fluvanna CC
Day

Evening

Night

RN
LPN
C.N.A.
RN
LPN
C.N.A.
RN
LPN
C.N.A.

2

RN
LPN
C.N.A.
RN
LPN
C.N.A.
RN
LPN
C.N.A.

2

2 (1 may be C.H.Al
0
2

3 (1 may be C.H.A.)2
0
2
2

1

Greensville CC
Day

Evening

Night

10 (3 may be CHA)
1
2

9.5 (4 may be CHA)
1
2

5

(3 may be CHA)

1

Sussex I State Prison
Day

Evening

Night

1

RN
LPN
C.N.A.
RN
LPN
C.N.A.
RN
LPN
C.N.A.

3 (2 may be CHA)2
0
1
2 (1 may be CHA)
0
1

2 (1 may be CHA)
0

1

CHA = Correctional Health Assistant. The Contractor must follow the same
credentialing requirements as the DOC.
2
Three LPN's Monday-Friday, Two LPN's Saturday, Sunday & Holidays.

36

1241

Sussex ll State Prison
Day

Evening

Night

RN

1

LPN

3 (2 may be CHA) 2

C.N.A.
RN
LPN
C.N.A.
RN

0
1

LPN

2
0

2 (1 may be CRA)
0

1

C.N.A.

PowhatanCC
Day

RN

Evening

LPN
RN

Night

1
6
1

LPN

5

RN

1
4

LPN

37

1241:

ATTACHMENT IV
ILLUSTRATION OF AGING ANALYSIS & LIQUIDATED DAMAGE HOURLY RATES
Development of Aging Analysis:

Aging Category
Total Hours
Deficient for
Contract Period

Period
#1

May, 2006

10

10

June, 2006

17

7

10

July, 2006

32

15

7

10

August, 2006

23

0

6

7

10

September,
2006

8

0

0

0

0

8

October, 2006

0

0

0

0

0

0

0

November,
2006

15

15

0

0

0

0

0

Contract
Period

Period
#2

Period
#3

Period
fM.

Period
#5

Period
#6

Period
#7

0

Narrative ofhow to compute the# of hours to be allocated to each Agmg Category:
As a general rule, the aging of deficient hours for any contract period be performed as follows:
1.

Shift the hours per each Aging Category of the prior contract period' s aging
analysis to the next older Aging Category.
If the total# of hours deficient in the current contract period is
a.
greater than the total # of deficient hours per the previous contract
period, enter the additional hours in the Period #1 Aging Category.

2.

b.

If the total# of hours deficient in the current contract period is less than
the total # of deficient hours per the previous contract period, deduct
the # of hours reduced from the left to right commending with Aging
Category Period #2.

May,2006

The first month that any deficiency exists, the total # of hours deficient is to be
allocated to Period #1.

June, 2006

Since the total of 17 hours deficient in the June, 2006 period exceeds the total #
of 10 hours deficient in the May, 2006 contract period, the aging should be
performed as follows: Shift the 10 hours classified in Period #1 on the May,
2006 aging to the next Aging Category to the right (Period #2) and insert the
increase in the# of hours deficient in the Period #1 Aging Category.

July, 2006

Because the 32 hours deficient in July, 2006 is greater than the total17 hours
deficient in the June, 2006 contract period, the aging should be developed by
shifting the hours aged in June, 2006 to the next Aging Category to the right,
and assigning the additional hours to the Period #l Aging Category.

August, 2006

In order to age the 23 hours delinquent in August, 2006, shift the hours aged in
April, 2004 to the next Aging Category to the right, and deduct any reduction in
delinquent hours from the Aging Categories starting at the left (Period #2,

38

1241

Period #3, etc.) until the total# of hours reduced from the April, 2004 contract
period have been allocated.
September, 2006

In August, 2006 the total # of deficient decreased to an amount less than any
previous period. This aging should be performed utilizing the same method as
for July, 2006. The July, 2006 aging should be shifted to the next older Aging
Category, and the# of hours reduced from the July, 2006 contract period should
be deducted from the# of hours assigned to each Aging Category starting at the
left, until the total# of hours reduced from the July, 2006 contract period have
been allocated.

LIQUIDATED DAMAGE HOURLY RATES

COMPUTATION OF LIQUIDATED DAMAGES:
RN

$70.00/hour

LPN/CHA

$52.00/hour

CNA

$30.00/hour

Development of Aging Analysis and Computation of Liquidated Damages
1. D.evelop the aging analysis, by position type and the number of hours deficient (see
previous page) in each position type.
2. Multiply the number of hours deficient, by position type, times the "Hourly Liquidated
Damages Rate" (above) for each aging category.
3. Multiply the dollar amount of liquidated damages computed through step #2 above
times the following rates for each successive aging category:
1st period:

100%
110%
125%
150%

period:
3rd period:
41h & Succeeding Periods:

2nd

The below computation is based on the assumption that the above aging is for the LPN
I R ate= $52 00
pos1t1ons where t h e Lit_qu.tc"dated D am age H our1y
Liquidated Damage Dollars
Contract Period

Period
#1

Period
#2

Period
#3

Period
#4

Period
#5

Period
#6

Period
#7

May, 2006

520.00

-

-

-

-

-

June, 2006

364.00

572.00

-

-

-

July, 2006

780.00

400.40

650.00

-

August, 2006

-

343.20

455.00

780.00

-

September, 2006

-

October, 2006

-

-

-

780.00

-

-

-

-

-

November, 2006

624.00

-

-

Total
520.00
936.00
1830.40
1578.20
624.00

780.00

39

1241·

ATTACHMENT VII
PRICING SCHEDULES

Virginia Department of Corrections
Monthly pricing schedule
FLUVANNA CORRECTIONAL CENTER FOR WOMEN
(500-1500)
ADP
500
501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531

Monthly Cost
527,314
527,523
527,733
527,943
528,152
528,362
528,572
528,782
528,991
529,201
529,411
529,620
529,830
530,040
530,249
530,459
530,669
530,878
531,088
531,298
531,508
531,717
531,927
532,137
532,346
532,556
532,766
532,975
533,185
533,395
533,605
533,814

42

1241'

532
533
534
535
536
537
538
539
540
541
542
543

544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573

574
575
576
577
578
579
580
581

534,024
534,234
534,443
534,653
534,.863
535,072
535,282
535,492
535,701
535,911
536,121
536,331
536,540
'536,750
536,960
537,169
537,379
537,589
537,798
538,008
538,218
538,427
538,637
538,847
539,057
539,266
539,476
539,686
539,895
540,105
540,315
540,524
540,734
540,944
541,154
541,363
541,573
541,783
541,992
542,202
542,412
542,621
542,831
543,041
543,250
543,460
543,670
643,880
544,089
544,299

43

1241:

582
583
584
685
586
587
586
569
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631

544,509
544,716
544,928
545,138
545,347
545,557
545,767
545,977
546,186
546,396
546,606
546,815
547,025
547,235
547,444
547,654
547,864
548,073
548,283
548,493
548,703
548,912
549,122
549,332
549,541
549,751
549,961
550,170
550,380
550,590
550,799
551,009
551,219
551,429
551,638
551,848
552,058
552,267
552,477

ss2.6e1
552,896

553,106
553,316
553,526
553,735
553,945
554,155
554,364
554,574
554,784

44

1241'

632
633
634
635
636
637
638
639
640
641
642
643
644
645
646

647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
668
669
670
671
672
673
674
675
676
677
678
679
680
681

554,993
555,203
555,413
555,622
555,832
556,042
556,252
556,461
556,671
556,881
557,090
557,300
557,510
557,719
557,929
558,139
558,348
558,558
558,768
558,978
559,187
559,397
559,607
559,816
560,026
560,236
560,445
560,655
560,865
561,075
561,284
561,494
561,704
561,913
562,123
562,333
562,542
562,752
562,962
563,171
563,381
563,591
563,801
564,010
564,220
564,430
564,639
564,849
565,059
565,268

45

12421

682
683
684
685
686
687
688
689
690
691
692
693
694
695
696
697
698
699
700
701
702
703
704
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728
729
730
731

565,478
565,688
565,897
566,107
566,317
566,527
566,736
566,946
567,156
567,365
567,575
567,785
567,994
568,204
568,414
568,624
568,833
569,043
569,253
569,462
569,672
569,882
570,091
570,301
570,511
570.,720
570,930
571,140
571,350
571,559
571,769
571,979
572,188
572,398
572,608
572,817
573,027
573,237
573,447
573;656
573,866
574,076
574,285
574,495
574,705
574,914
575,124
575,334
575,543
575,753

46

1242

732
733
734
735
736
737
738
739
740
741
742
743
744
745
746
747
748
749
750
751
752
753
754
755
756
757
758
759
760

761
762
763
764
765
766
767
768
769
770
771
772
773

774
775
776
777
778
779
780
781

575,96.3
576,173
576,382
576,592
576,802
577,011
577,221
577,431
577,640
577,850
578,060
578,269
578,479
578,689
576,.899
579,108
579,318
579,528
579,737
579,947
580,157
580,366
580,576
580,786
580,996
581,205
581,415
581,625
581,834
582,044
582,254
582,463
582,673
582,883
583,092
583,302
583,512
583,722
583,931
584,141
584,351
584,560
584,770
584;980
585,189
585,399
585,609
585,818
586,028
586,236

47

1242

782
783
784
785
786
787
788
789
790
791
792
793
794
795
796
797
798
799
800
801
802
803
804
805
806
807
808
809
810
811
812
813
814
815
816
817
818
819
820
821
822
823
824
825
826
827
828
829
830
831

586,448
586,657
586,867
587,077
587,286
587,496
587,706
587,915
588,125
588,335
588,545
588,754
588,964
589,174
589,383
589,593
589,803
590,012
590,222
590,432
590,641
590,851
591,061
591,271
591,480
591,690
591,900
592,109
592,319
592,529
592,738
592,948
593,158
593,367
593,577
593,787
593,997
594,206
594,416.
594,626
594,835
595,045
595,255
595,464
595,674
595,884
596,094
596,303
596,513
596,723

48

1242:

832
833
834

835
836
837
838
839
840

841
842
843
844
845
846

847
848
849
850
851
852
853
854
855
856
857
858
859
860
861
862
863
864
865
866
867
868
869
870

871
872
873
874
875
876
877
878

879
880
881

596,932
597,142
597,352
597,561
597,771
597,981
598,190
59.8,400
598,610
598,820
599,029
599,239
599,449
599,658
599,868
600,078
600,287
600,497
600,707
600,916
601,126
601,336
601,546
601,755
601,965
602,175
602,384
602,594
602,804
603,013
603,223
603,433
603,643
603,852
604,062
604,272
604,481
604,691
604,901
605,110
605,320
605,530
605,739
605,949
606,159
606,369
606,578
606,788
606,998
607,207

49

1242

882
883
884
885
886

887
888
889
890
891

892
893
894
895
896
897
898
899
900
901
902

903
904
905
906
907

908
909
910
911

912
913
914
915
916
917
918
919

920
921

922
923
924
925
926

927
928

929
930
931

607,417
607,627
607,836
608,046
608,256
608,466
608,675
608,885
609,095
609,304
609,514
609,724
609,933
610,143
610,353
610,562
610,772
610,982
611,192
611,401
611,611
611,821
612,030
612,240
612,450
612,659
612,869
613,079
613,288
613,498
613,708
613,918
614,127
614,337
614,547
614,756
614,966
615,176
615,385
615,595
615,805
616,015
616,224
616,434
616,644
616,853
617,063
617,273
617,482
617,692

50

1242!

932
933
934
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949

950
951
952
953
954
955

956
957
958
959
960
961
962
963
964
965
966
967
968
969
970
971
972
973
974
975
976
977
978
979
980
981

617,902
618,111
618,321
618,531
618,741
618,950
619,160
619,370
619,579
619,789
619,999
620,208
620,418
620,628
620,837
621,047
621,257
621,467
621,676
621,886
622,096
622,305
622,515
622,725
622,934
623,144
623,354
623,564
623,773
623,983
624,193
624,402
624,612
624,822
625,031
625,241
625,451
625,660
625,870
626,080
626,290
626,499
626,709
626,919
627,128
627,338
627,548
627,757
627,967
628,177

51

12421

982
983
984
985
986
987
988
989
990
991
992
993
994
995
996
997
998
999
1000
1001
1002
1003
1004
1005
1006
1007
1008
1009
1010
1011
1012
1013'
1014
1015
1016
1017
1018
1019
1020
1021
1022
1023
1024
1025
1026
1027
1028
1029
1030
1031

628,386
628,596
628,806
629,016
629,,225
629,435
629,645
629,854
630,064
630,274
630,483
630,693
630;903
631,113
631,322
631,532
631,742
631,951
632,161
632,371
632,580
632,790
633,000
633,209
633,419
633,629
633,839
634,048
6.34,258
634,468
634,677
634,887
635,097
635,306
635,516
635,726
635,936
636,145
636,355
636,565
636,774
636,984
637,194
637,403
637,613
637,823
638,032
638,242
638,452
638,662

52

1242

1032
1033
1034
1035
1036
1037
1038
1039
1040
1041
1042
1043
1044
1045
1046
1047
1048
1049
1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064
1065
1066
1067
1068
1069
1070
1071
1072
1073
1074
1075
1076
1077
1078
1079
1080
1081

638,871
639,081
639,291
639,500
639,710
639,920
640,129
640,339
640,549
640,758
640,968
641,178
641,388
641,597
641,807
642,017
642,226
642,436
642,646
642,855
643,065
643,275
643,485
643,694
643,904
644,114
644,323
644,533
644,743
644,952
645,162
645,372
645,581
645,791
646,001
646,211
646,420
646,630
646,840
647,049
647,259
647,469
647,678
647,888
648,098
648,307
648,517
648,727
648,937
649,146

53 .

1242l

1082
1083
1084
1085
1086
1087
1088
1089
1090
1091
1092
1093
1094
1095
1096
1097
1098
1099
1100
1101
1102
1103
1104
1105
1106
1107
1108
1109
1110
1111
1112
1113
1114
1115
1116
1117
1118
1119
1120
1121
1122
1123
1124
1125
1126
1127
1128
1129
1130
1131

649,356
649,566
649,775
649,985
650,195
650,404
650,614
650,824
651,034
651,243
651,453
651,663
651,872
652,082
652,292
652,501
652,711
652,921
653,130
653,340
653,550
653,760
653,969
654,179
654,389
654,598
654;808
655,018
655,227
655,437
655,647
655,856
656,066
656,276
656,486
656,695
656,905
657,115
657,324
657,534
657,744
657,953
658,163
658,373
658,583
658,792
659,002
659,212
659,421
659,631

54
1242 ~

1132
1133
1134
1135
1136
1137
1138
1139
1140
1141
1142
1143
1144
1145
1146
1147
1148
1149
1150
1151
1152
1153
1154
1155
1156
1157
1158
1159
1160
1161
1162
1163
1164
1165
1166
1167
1168
1169
1170
1171
1172
1173
1174
1175
1176
1177
1178
1179
1180
1181

659,841
660,050
660,260
660,470
660,679
660,889
661,099
661,309
661,518
661.728
661,938
662,147
662,357
662,567
662,776
662,986
663,196
663,405
663.615
663,825
664,035
664,244
664,454
664,664
664,873
665,083
665,293
665,502
665,712
665,922
666,132
666,341
666,551
666,761
666,970
667,180
667,390
667,599
667,809
668,019
668,228
668,438
668,648
668,858
669,067
669,277
669,487
669,696
669,906
670,116

55

12431

1182
1183
1184
1185
1186
1187
1188
1189
1190
1191
1192
1193
1194
1195
1196
1197
1198
1199
1200
1201
1202
1203
1204
1205
1206
1207
1208
1209
1210
1211
1212
1213
1214
1215
1216
1217
1218
1219
1220
1221
1222
1223
1224
1225
1226
1227
1228
1229
1230
1231

670,325
670,535
670,745
670,955
671 ,164
671 ,374
671 ,584
671.793
672,003
672,213
672.422
672,632
672,842
673,051
673,261
673.471
673,681
673,890
674,100
674,310
674,519
674,729
674,939
675,148
675,358
675,568
675,777
675,987
676,197
676,407
676,616
676,826
677,036
677,245
677.455
677,665
677,874
678,084
678,294
678,504
678,713
678,923
679,133
679,342
679,552
679,762
679,971
680,181
680,391
680,600

56

1243:

1232
1233
1234
1235
1236
1237
1238
1239
1240
1241
1242
1243
1244
1245
1246
1247
1248
1249
1250
1251
1252
1253
1254
1255
1256
1257
1258
1259
1260
1261
1262
1263
1264
1265
1266
1267
1268
1269
1270
1271
1272
1273
1274
1275
1276
1277
1278
1279
1280
1281

680,810
681,020
681,230
681,439
681,649
681,859
682,068
682,278
682,488
682,697
682,907
683,117
683,326
683,536
683,746
683,956
684,165
684,375
684,585
684,794
685,004
685,214
685,423
685,633
685,843
686,053
686,262
686,472
686,682
686,891
687,101
687,311
687,520
687,730
687,940
688,149
688,359
688,569
688,779
688,988
689,198
689,408
689,617
689,827
690,037
690,246
690,456
690,666
690,875
691 ,085

57

1243

1282
1283
1284
1285
1286
1287
1288
1289
1290
1291
1292
1293
1294
1295
1296
1297
1296
1299
1300
1301
1302
1303
1304
1305

1306
1307
1308
1309
1310
1311
1312
1313
1314
1315
1316
1317
1316
1319
1320
1321
1322
1323
1324
1325
1326
1327
1328
1329
1330
1331

691,295
691,505
691,714
691,924
692,134
692,343
692,553
692,763
692,972
693,182
693,392
693,602
693,811
694,021
694,231
694,440
694,650
694,860
695,069
695,279
695,489
695,698
695,908
696,118
696,328
696,537
696,747
696,957
697,166
697,376
697,586
697,795
698,005
698,215
698,42.5
698,634
698,844
699,054
699,263
$99,473
699,683
699,892
700,102
700,312
700,521
700,731
700,941
701,151
701,360
701,570

58

1243.

\

\

\

DEPARTMENT OF CORRECTIONS
6900 ATMORE DRIVE
RICHMOND, VA 23225
CONTRACT MODIFICATION AGREEMENT
Date:

April 10, 2007

Contract Number:

DOC-05-024

Modification Number:

. 001

Issued By:

Department of Corrections
Procurement and Risk Management
6900 Atmore Drive
Richmond, VA 23225

Contractor:

Prison Health Services, Inc.
America Service Group, Inc.
105 Westpark Drive, Suite 200
Brentwood, TN 37027

Commodity:

Health Care Services

This contract modification is entered into pursuant to Attachment I, paragraph L. of the Contract.
Description of Modification:
1.

Effective May 1, 2007, Memorandum of Understanding paragraph 1., remove H. 2. a.)
and replace with the following:
a.) Providing the nephrologist and all of the labs ordered by the nephrologist. PHS will

charge the DOC a dialysis lab surcharge of $7.31 per dialysis patient visit. The dialysis
lab surcharge is in addition to the base fee. These lab tests must be billed directly to PHS

and paid by PHS, not billed to the DOC's third party administrator nor included in the
off-site medical care pool;
2.

Effective May 1, 2007, Memorandum of Understanding Section IV., for paragraphs A.
. and B. remove Medical Care Off-Site Services Risk/Reward Pool Amounts per inmate and
replace with the following:
Medical Care Off-Site Services Risk/Reward Pool .Amounts per inmate:
5/1/07 - 4/30/08

Fluvanna

Greensville

$1,525
$1,265

Sussex I
Sussexn

$ 618
$ 435

DOC-OS~24, Prison Health Services, Inc.
4/10/2007; 2:24:35 PM

Page 1

1254

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·,

~

i

Powhatan

$2,004

Staffing Pool Dollar amounts for the first year ending 4/30/08:
5/1/07-4/30/08
$4,131,000
$7,864,000
$2,376,000
$2,183,000
$4,479,000

Fluvanna
Greensville
Sussex I
Sussex II
Powhatan
3.

Effective May 1, 2007, Attachment IV, remove LIQUIDATED DAMAGES HOURLY
RATES and replace with the following:
LIQUIDATED DAMAGE HOURLY RATES

COMPUTATION OF LIQUIDATED DAMAGES:

4.

5.

RN

$73.08/bour

LPN/CHA-

$54.29/bour

CNA

$31.32/hour

Effective May 1, 2007, remove current Attachment VII, PRlCING SCHEDULES and
replace with new PRICING SCHEDULES attached.
Attachment l, General Terms and Conditions add Paragraph Q.

Q.

eVA Business-To-Government Vendor Registration: The eVA Internet
electronic procurement solution, web site portal www.eVA.virginia.gov,
streamlines and automates government purchasing activities in the
Commonwealth. The eVA portal is the gateway for vendors to conduct business
with state agencies and public bodies. All vendors desiring to provide goods
and/or services to the Commonwealth shall participate in the eVA Internet eprocurement solution either through the eVA Basic Vendor Registration Service
or eVA Premium Vendor Registration Service. All bidders or offerors must
register in eVA; failure to register will result in the bid/proposal being rejected.
a.

eVA Basic Vendor Registration Service: $25 Annual Registration Fee plus
the appropriate order Transaction Fee specified below. eVA Basic Vendor
Registration Service includes electronic order receipt, vendor catalog
posting, onwline registration, electronic bidding, and the ability to research
historical procurement data available in the eVA purchase transaction data
warehouse.

b.

eVA Premium Vendor Registration Service: $25 Annual Registration Fee
plus the appropriate order Transaction Fee specified below. eVA Premium
Vendor Registration Service includes all benefits of the eVA Basic

DOC-05-024, Prison Health Services, Inc.
411012007; 2:24:35 PM

Page2

12541

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Vendor Registration Service plus automatic email or fax. notification of
solicitations and amendments. ·

6.

c.

For orders issued prior to August 16,2006, the Vendor Transaction Fee is
1%, capped at a maximum of $500 per order.

d.

For orders issued August 16, 2006 and after, the Vendor Transaction Fee
is:
(i) DMBE-certified Small Businesses: 1%, capped at $500 per order.
(ii) Businesses that are not DMBE-certified Small Businesses: 1%, capped
at $1,500 per order.

Attachment II, Special Terms and Conditions add Paragraph R.
R.

eVA Business-To-Government Contracts and Orders: The solicitation/contract
will result in 1 purchase order(s) with the eVA transaction fee specified below
assessed for each order.
a.

b.

For orders issued prior to August 16, 2006, the Vendor Transaction Fee is
1%, capped at a maximum of $500 per order.
For orders issued August 16, 2006 and after, the Vendor Transaction Fee

is:
(i) DMBE-certified Small Businesses: 1%, Capped at $500 per order.
(ii) Businesses that are not DMBE-certified Small Businesses: 1%,
Capped at $1,500 per order.
The eVA transaction fee will be assessed approximately 30 days after each
purchase order is issued. Any adjustments (increases/decreases) will be
handled through eVA change orders.
Internet
electronic
procurement
solution,
web
site portal
www.eva.virginia.gov, streamlines and automates government purchasing
activities in the Commonwealth. The portal is the gateway for vendors to
conduct business with state agencies and public bodies.
Vendors desiring to provide goods and/or services to the Commonwealth
shall participate in the eVA Internet e-procurement solution and agree to
comply with the following:
If this solicitation is for a term contract, failure to provide an electronic catalog
(price list) or index page catalog for items awarded will be just cause for the
Commonwealth to reject your bid/offer or tenninate this contract for default. The
format of this electronic catalog shall confonn to the eVA Catalog Interchange
Format (CIF) Specification that can be accessed and downloaded from
www.eV A.virginia.gov. Contractors should email Catalog or Index Page
infonnation to eVA-catalog-manager@dgs.virginia.gov."
DOC-05-024, Prison Health Services, Inc.
4110/2007; 2:24:35 PM

Page3

1254

(

This contract renewal is contingent upon the Contractor providing the required catalog or
index page as outlined in the eVA Business-to-Government Contracts Special Term and
Condition stated above. When submitting, please copy the contract officer, J.D. Oates III
at jd.oates@vadoc.virginia.gov. If you need assistance with this requirement, please
contact me at (804) 674-3308, ext. 1405.
Except as provided herein~ all terms and conditions of contract DOC-05-024-PHS, dated April
18, 2005, as h~retofore changed, remain unchanged and in full force and effect.
PURCHAS

BY:

BY:

f

TITLE:

(c:;zJ

GENCY:

"-~

TITLE:
DATE:

DATE:

c-1 -. ~ r/'

,..

Note: This public body does not discriminate against faith-based organizations in accordance with the Code
o.f Virginia, §§2.2-4343.1 or against a bidder or offeror because of race, religion, color, sex, national origin,
age, disability, or any other basis prohibited by state law relating to discrimination in employment

Af.l~RQVED AS TO FORM
~ L.e.GAL DEPT.

-~

DOC-05..Q24, Prison Health Services, Inc.
4/10/2007; 2:24:35 PM

Page4

1254

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i
/

DEPARTMENT OF CORRECTIONS
6900 ATMORE D~IVE
RICHMOND, VA 23225
CONTRACT MODIFICATION AGREE"MENT
Date:

January 25, 2008

Contract Number:

DOC-05-024~PHS

Modification Number:
Issued By:

,_.

Department of Corrections
Procurement and Risk Management
6900 Atmore Drive
Richmond, VA 23225
'-.t.

Con tractor: ,.

Prison Health Services, Inc.

Commodity:

Healthcare Management and Services

This contract modification is entered into pursuant to Attachment I. L. of the Contract.
Description of Modification:
1.

Effective May 1, 2007 the Powhatan Medical Unit (Infirmary) was closed by the
DOC for replacement of the electrical and HVAC systems. The DOC
· construction project required PHS to modify its nursing staff and radiological
operation in order to provide the required healthcare services.
The temporary relocation of the Powhatan Infirmary to the Deep Meadow·
Correctional Center necessitated the addition of a Registered Nurse positittn to
provide coverage of the Powhatan Correctional complex and the ·Monday through
Friday evening and night shifts and all shifts on Saturday and Sunday. this
coverage had previously been provided by the infirmary staffing. Additionally,
due to the temporary closing of the Powhatan radiology suite, PHS has boon
required to rent mobile x~ray equipment starting in July of 2007 in order to
provide continuity of care for non-infirmary inm(l.tes at the Powhatan Correctional
Center and Powhatan Reception and Classification Center.
PHS shall be reimbursed for the above detailed nursing services and for the rental
of the mobile x~ray equipment based upon the following negotiated fees:
Registered Nurse position for the period of May 23, 2007 through Sept(1ttlber 30,
2007- $107, 109.15. In addition, the Registered Nurse position will be
reimbursed at a rate of $25,000,00 per month through the completion of the DOC
construction at Powhatan Medical Unit (anticipated construction completion
between August- December 2008).
1 of2

1254•

_,...-(

\

'
I

Mobile X-ray Equipment rental effective July 2008 through the completion of the
DOC construction at Powhatan Medical Unit (anticipated construction corri.pletion
between August- December 2008)- $1,000.00 per month.

2.

PHS was requested by the DOC to rent special mattresses for an eight (8} .tnonth
period of time. The specialty mattresses were required for patients with litnited
mobility which restricts blood flow of patients confined to bed which can fesult in
pressure sores or decubitus ulcers at point of patient contact with the bed.
PHS shall be reimbursed for the above detailed rental of specialty mattreS-ses
based upon the following negotiated fee:
Rental of Specialty Mattresses for a period of eight (8) months - $80,000~

Except as provided herein, all terms and conditions of contract DOC-05-024-PHS, which went
into effect on May l, 2006, as heretofore changed, remain unchanged and in full force and effect.

CY: .

BY:
TITLE:
DATE:

DATE:

Note: This public body: does not discriminate against faith-based organizations in accordance with the Code ·
of Virginia, §§2.2-4343.1 or against a bidder or offeror because of race, religion, color, sex, nati<itii'd origin,
age) disability, or any other basis prohibited by state law relating to discrimination in employment.

2of2

1255

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DEPARTMENT OF CORRECTIONS
6900 ATMORE DRIVE
RICHMOND, VA 23225
CONTRACT MODIFICATION AGREEMENT
Date:

AprilS, 2008

Contract Number:

DOC-05-024-PHS

Modification Number:

003

Issued By:

Deprutment of Corrections
Procurement ru1d Risk Management
6900 Atmore Drive
Richmond, VA 23225

Contractor:

Prison Health Services, Inc.

Commodity:

Healthcare Management and Services

,_

This contract modification is entered into pursuant to Attachment I. L. of the Contract.
Description ofModification:

1.

2.

Whereas the Contract# DOC-05-024-PHS will yXpire on April 30, 2008, the Commonwealth
desires to renew the contract perfonnance period, it is agreed that the contract perfonnance pedod
shall be renewed from May 1, 2008 through April 30, 2009.
Effective May 1, 2008, the Medical Care Off-Site Service Risk/Reward Pool Amounts

per inmate detailed in Contract Modification 001 dated AprillO, 2007 shall be removed
and replaced with the following:

5/1/08-4/30/09
Fluvanna

Greens ville
Sussex I
Sussex II
Powhatan

3.

$1,597
$1,324

$ 647
$ 455
$2,098

Effective May 1, 2008, the Staffing Pool Dollar amounts detailed in Contract
Modification 001 dated April 10, 2007 shall be removed and replaced with the following:
ofll30

1255

\

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\

...

,,.

5/1/08-4/30/09
Fluvanna
Greensville
Sussex I

Sussex II
Powhatan

$4,325,000
$8,234,000
$2,554,000
$2,286,000
$4~690,000

Effective May 1, 2008, the Liquidated Damages Hourly Rates detailed in Contract
Modification 001 dated April 10, 2007 shall be removed and replaced. with the following:

LIQUIDATED DAMAGES HOURLY RATES
COMPUTATION OF LIQUIDATED DAMAGES:

RN

$76.51/hour

LPN/CHA

$56.84/hour

CAN

$32. 79/hour

4.

Effective May 1, 2008 Attaclunent III: Negotiated Staff for Sussex I State Prison, Powhatan
Correctional Center and Greensville Con·ectional Center shall be removed and replaced with the
revised Attachment III for those facilities. Attachment IliA Base Staffing for Greensville
Correctional Center shall be removed and replaced with the revised Attachment IliA for that
facility.

5.

Effec6ve May 1, 2008, the dialysis surcharge will increase to $7.65 per dialysis patient visit
(reference Contract section 1.1. H. 2.).

6.

Effective May 1, 2008, Contract Attachment VII: Pricing Schedules, detailed in Contract
Modification 001 dated April 10, 2007 shall be removed and replaced with the new
Attachment VII: Pricing Schedules (attached).

,......

Except as provided herein, all terms and conditions of contract DOC-05-024-PHS dated Apri118,
2006; Contract Modification 001 dated AprillO, 2007; and Contract Modification 002 dated
January 25, 2008, remain unchanged and in full force and effect.

BY:

BY:

TITLE:

TITLE:

DATE:

DATE:

. ..... ~ ,..
APPROVE AS TO FORM

'"~

ofJ30

1255

r·'
,.. ..

.····
'·

,- ...

Nnt.e: This ·public b.mly does .not dlserin;lbtate agaitr.n ((tfth.;based orl~&l'llalatfDllB i:o: ~~otdtJnce WitJt d\.e Codt

of Virginia, §§2.2-4343.1 or against a bidder or offeror' bec~tU$e ~f race, religiou, cOlor, sex, national c);:fgpt~
age, disability, or any otlter basis prohibited by stutc law -t·elating·to discrimination In employment.

..

.· ·

....... ·'
of330

1255

Attachment III
Sussex I State Prison (SISP)

Plan.

i
\

.. .

..
... _ i

of430

1255

( ...

.....

~

l Total

ltol.lsl

- All Shifts

ATTACHMENT fil-A
Base Staffing
Base Staffing is defined as the minimum essential staff needed to be present at the facility.

Fluvanna CC
Day

Evening

Night

RN
LPN
C.N.A.
RN
LPN
C.N.A.
RN
LPN
C.N.A.

2
2 (1 may be C.H.A.) 1

RN
LPN
C.N.A.
RN
LPN
C.N.A.

2
10 (3 may be CHA)
1
2
9 (4 may be CHA)
1
1
S (3 may be CHA)

0
2

3 (1 may be C.H.A.) 2
0
2
2
1

Greensville CC
,~ ·

Day

(
Evening

Night

RN
LPN
C.N.A.

1

Sussex I State Prison
Day

1
3 (2 may be CHA)2
0
1
2 (1 may be CHA)
0
1
2 (1 may be CHA)

RN

LPN
Evening

Night

C.N.A.
RN
LPN
C.N.A.
RN
LPN
C.N.A.

0

1

. ,,•..

CHA = Con·ectionat Health Assistant. The Contractor must follow the same credentialing
requirements as the DOC.
2
Three LPN's Monday-Friday, Two LPN's Saturday, Sunday & Holidays .
of1.30

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