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State of Washington DOC Contract-JPay, Amendment No. 1

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State of Washington

Department of Corrections
Contract No. K8262
Amendment No. 1

This Amendment is made by the state of Washington, Department of Corrections,

hereinafter referred to as Department, and JPay, Inc., hereinafter referred to as the Contractor,
for the purpose of amending the above-referenced Contract, heretofore entered into between
the Department and the Contractor.

WHEREAS the purpose of this contract amendment is to modify the Scope of Work;
NOW THEREFORE, in consideration of the terms and conditions contained herein, or attached
and incorporated and made a part hereof, the Department and Contractor agree as follows:
•

Appendix 2.01 Service is deleted in its entirety and replaced by the attached Appendix
2.01.1 Service.

•

Appendix 3.01 Service is deleted in its entirety and replaced by the attached Appendix
3.01.1 Service.

Additions to this text are shown by underline and deletions by ((strikeout)). All other terms and
conditions remain in full force and effect. The effective date of this amendment is upon
execution of the parties.
THIS CONTRACT AMENDMENT, consisting of one (1) page and two (2) attachments, is
executed by the persons signing below who warrant that they have the authority to execute the
contract.
CONTRACTOR

DEPARTMENT OF CORRECTIONS

(Signature)

(Signature)

Gary Banning

(Printed Name)

(Printed Name)

Contracts Administrator

(Title)

(Title)

(Date)

(Date)

Approved as to Form:

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

State of Washington
Department of Corrections

K8262(1)

Page 1 of 1
118365

APPENDIX 2.01.1 SERVICE
Contractor agrees to provide to DOC, the following Services:
1. Hard or soft computer terminal kiosks designed to host a variety of offender service
applications. The kiosk applications may be used by offenders to perform everyday tasks
such as:
• Downloading digital media to an MP3 player
• Sending and receiving e-Messages (Email)
• Receiving Videograms
• Look up Trust account balance
• Conducting video visits.
• Incoming e-mail, screened by the system using keyword search before download is
allowed. Keyword screening would evaluate risk level of e-mail. Unacceptable or
questionable (moderate to high risk) e-mail is held or staged at a central computer
for DOC approval before it is available to an offender for download.
• Keyword search function may be edited at any time.
• System allows all messages for a particular offender to be stored or to be transferred
to DOC storage.
• System provides e-mail send/reply capability (after keyword screening/review
protocols identical to incoming messages).
• System provides translation of foreign language e-mail.
2. Kiosk will be placed in mutually agreeable locations within the following institutions:
Coyote Ridge Corrections Center (CC)
Airway Heights CC
Washington State Penitentiary
Stafford Creek CC
WA CC for Women
Washington CC
Monroe Correctional Complex
Clallam Bay CC
Olympic CC
Cedar Creek CC
Mission Creek CC for Women
Larch Corrections Center
The numbers of Kiosks per institutions will be determined by mutual agreement of the
parties following the Contractor’s survey of the facilities.
3. MP3 Player
o

MP3 player has a video screen capable of displaying e-mail or other required
information.

o

MP3 player connects and accepts downloads only from the secure kiosk or
secure network

o

MP3 player audio is provided through headphone/ear buds only.

o MP3 players use rechargeable batteries.

Player Security Functions
o MP3 players are preloaded with the offender’s name and ID.
1State of Washington
Department of Corrections

K8262(1)
Appendix 2.01.1

Page 1 of 4

o
o

o

To prevent the player from being connected with an unauthorized application,
the device is configured to be constantly “locked.” Locked is defined as
unable to connect to any machine other than the offender kiosk.
Only JPay applications have the ability to access a player. A player may be
accessed in the following cases:
 When the offender logs into the kiosk and the offender’s kiosk account
matches the connected player.
 When the DOC connects a player to their computer and uses the
desktop application.
 When a released contacts JPay to activate the release feature.
In the case of unauthorized use, a notification alert is sent via email to
appropriate DOC personnel. The email contains the name and ID of the
offender kiosk account, kiosk location identifier code as well as the player’s
serial number and owner information.

4. Kiosk Installation Process
1) JPay and DOC conduct preliminary sessions to discuss the scope of work. These
sessions involve central office staff from Information Technology (IT), Finance,
Operations and Security. The purpose of these sessions is to establish
expectations and target dates for the deployment of services and products. In
these sessions, the parties finalize discussions about network and power
solutions. JPay also aligns the product offering with the DOC’s administrative
regulations.
2) JPay and the DOC’s Trust Account Provider, Syscon, establish data integration.
3) Senior level facility staff conduct site tours with JPay for equipment installation.
These tours should include staff who understand the facility network architecture.
Here, JPay works with the staff to identify specific kiosk locations in each living
unit. These locations are then communicated to the technicians for equipment
installation. It is important that the appropriate staff are available when deciding
upon kiosk locations, in order to avoid adjustments. All site tours conclude with a
roundtable discussion to review and confirm the findings.
4) Kiosks are then installed in the living units, libraries and recreational areas.
Computers and printers are installed in the mailrooms to support the email
operation.
5) Tests are conducted onsite and remotely by JPay to ensure the security of each
deployment. JPay tests network connectivity, power, line speed, port security,
application stability and emergency scenarios. JPay also tests remote
monitoring and deployment tools to prepare for ongoing maintenance and
support.
6) Staff training is conducted both onsite (by region) and remotely via WebEx.
These training methods remain available throughout the term of the contract.
7) Training and marketing materials are distributed to each facility (or regional
manager). These materials include offender orientation pamphlets, offender
commercials and instructional videos, commissary bag stuffers (aka “buckslips”),
visitor handouts, visitor deposit slips, web design for the DOC website and
posters in the living units.
8) Sell and distribute MP3 players. JPay works with the DOC to distribute MP3
players to the offenders. MP3 players can be offered for sale on offender kiosks
2State of Washington
Department of Corrections

K8262(1)
Appendix 2.01.1

Page 2 of 4

and through the commissary. JPay is responsible for inventory management,
order processing, and shipment.
9) Contractor shall coordinate with the DOC for the return of any MP3 players. The
DOC shall provide a contact at each facility (i.e. the property room supervisor) to
coordinate returns.
10) Turn on email and media applications on the kiosks.
11) JPay continues to provide support, maintenance and training throughout the
contract. JPay assigns account representatives to support DOC staff.
5. Projected Installation Timeline
The Contractor shall have a wireless network and kiosks with email and MP3
player/media functionality available in at least 90% of the facilities listed in Section 2
above.
If the Contractor does not have MP3 players and media available for sale to
offenders in at least 90% of the facilities listed in Section 2 above as of January 1,
2011, the Contractor agrees to pay the DOC $5,000.00 per month.
6. Operations
•

The Contractor must design and provide the wireless infrastructure necessary to
connect the kiosks in the correctional facilities. This design must be reviewed and
approved by the Washington Department of Information Services (DIS). The design
must include a Wireless Intrusion Detection System (WIDS).

•

The Contractor must provide an online interface (Facility System) for DOC staff to
administer the services. Customizable management reports are available from this
system as described in the Response.

•

The Contractor will operate its Help Desk as described in the Response to resolve
issues raised by DOC, offenders and customers.

•

The Contractor warrants that it has contractual rights to distribute digital media from
major music labels or other entertainment fields that it offers for sale. The Contractor
must maintain insurance to protect against charges of copyright infringement.

•

The Contractor will provide complete reports of offender purchases and can track the
number, source and amount of deposits to offender accounts.
E-mail charges are less than the cost of an equivalent written letter.

•
•
7.

Digital media purchases are comparable to cost from major providers such as
iTunes.
Transfer of Funds to TAS

By March 14, 2011, the Contractor will use its website, phone and cash agent system to
collect funds from Customers to be deposited into one of the following offender
accounts; (1) spendable; (2) education; (3) USPS postage; (4) medical expenses; (5)
funeral expenses; and (6) JPay Prepaid. The Contractor will establish an interface with
the TAS vendor to deposit funds onto offender accounts. All funds corresponding to
each day’s deposits are remitted to DOC’s bank via an Automated Clearing House
(ACH) Credit each banking day.

3State of Washington
Department of Corrections

K8262(1)
Appendix 2.01.1

Page 3 of 4

8.

JPay Prepaid Account
Contractor shall let offenders transfer funds from their spendable account to the JPay
Prepaid account which is an account that may be used by the offender to purchase
Contractor’s products and services. Offenders may transfer a minimum of $5.00 to a
maximum of $200.00 to the JPay Prepaid account in $5.00 increments. In addition,
friends and family of offenders may deposit money into an offender’s JPay Prepaid
account via Contractor’s payment system. All funds transferred into the JPay Prepaid
Account shall be owned by Contractor and no refunds to an offender or an offender’s
family and friends will be required. No restitution will be taken from these transfers.

4State of Washington
Department of Corrections

K8262(1)
Appendix 2.01.1

Page 4 of 4

APPENDIX 3.01
A.

E-mail Plans
Offenders may purchase any of the following pay-as-you-go plans:
$5.00 = up to 20 email messages ($0.40 per email)
$7.50 = up to 35 email messages ($0.21 per email)
$10.00 = up to 60 email messages ($0.16 per email)
Contractor shall not be required to refund any remaining email messages to
offenders upon the offenders release or transfer from the DOC
Customers (family and friends of offenders) can purchase any of the following
monthly email plans on www.jpay.com with a credit/debit card:
$5.00 = up to 20 email messages ($0.40 per email)
$7.50 = up to 35 email messages ($0.21 per email)
$10.00 = up to 60 email messages ($0.16 per email)
The plans will automatically expire one month following the date of purchase.
Customers can also add attachments to their email for the cost of up to two email
messages. The cost for a VideoGram (a 30 second video clip) shall cost up to ten
email messages. There are no additional or hidden costs for setting up accounts,
account maintenance, and/or closing of accounts.
Digital images count as two email messages.
The monthly billing cycle begins when the subscription is purchased. This
subscription recurs each month unless the subscription is cancelled. The
subscription may be cancelled any time which will end the following month’s
subscription renewal. For example, if the subscription is purchased on March 15, the
subscription will automatically renew on April 15 unless the Customer cancels the
subscription.

B.

Offenders purchasing MP3 Players/Media
•

4 GB MP3 players will be made available to offenders for $39.99.

• Song and music video prices are also comparable to suggested retail prices from
the record labels.
o The cost per song ranges between $0.99 and $2.00 depending on the label
and song
o The cost per album ranges between $9.99 and $16.00 depending on the
label and number of songs on the album
o The cost per double album ranges between $18.00 and $22.00 depending on
the label and number of songs on the album.
o The cost per music video ranges between $1.99 and $4.00 depending on the
label and video.
State of Washington
Department of Corrections

K8262(1)
Appendix 3.01.1

Page 1 of 3

C.

Customers purchasing Email/media
Once Contractor completes statewide deployment of email and media, Contractor
will provide, in phases, the ability for Customers to email and media, Contractor will
provide, in phases, the ability for Customers to send money to JPay prepaid
accounts and purchaseMP3 players/ for offenders.

D.

Customers depositing funds to offender accounts
Sending Money With a Credit/Debit Card
Deposit Amount

Internet/Kiosk Fee

Phone Fee

$0.01 - $20.00

$3.95

4.95

$20.01 - $100.00

$7.95

$8.95

$100.01 - $200.00

$9.95

10.95

$200.01 - $300.00

$11.95

$12.95

Deposit Amount

MoneyGram Fee

ACE Fee

$0.01 - $5,000.00

$8.95*

$5.00

Sending Money With Cash

Sending Money at a Lobby Kiosk
Deposit Amount
$0.01 - $100.00

I Cash Fee

I Credit/Debit Card Fee

I $4.00

I $7.95

Sending Money With a US Postal Money Order
Deposit Amount Lock Box Fee
$0.01 $1,000.00

E.

Deposit Amount Lock Box Fee
$0.00

Video Visitation
Video Visitation
Minutes Fee
0-30 Minutes
Each Additional 30 Minutes $12.95

State of Washington
Department of Corrections

K8262(1)
Appendix 3.01.1

Minutes Fee
$12.95
Each Additional 30 Minutes $12.95

Page 2 of 3

F.

Basis for Commissions Paid to DOC
1. Player = $2.00/player sold
2. Music Commission
Song or Video = $0.04
Music Album = $0.20
3. Email = 5% of gross Revenue
4. TAS Deposit = $0.25 (not including lock box)
5. Video Visit = $3.00
6. The commission for the sale of other digital media, e.g. books, will be negotiated
when such media is made available for sale.
7. Contractor shall provide a monthly report to the Department of Corrections indicating
the number of MP3 players sold, the number of songs and albums sold and the gross
revenue from email messaging. The report shall reflect such numbers and amounts on
both a facility level and in aggregate totals for the Department, and shall be submitted to
the Department no later than the 30th day of the following month.

G.

Payment of Commissions
1. The Contractor shall pay the commission to the Department monthly with the
revenue/sales report.
2. Any change in rates or commission will be mutually agreed upon and will not create
a substantial impact to the expenses incurred by the vendor.

State of Washington
Department of Corrections

K8262(1)
Appendix 3.01.1

Page 3 of 3