Telmate Response Securus Ex1

Telmate BAFO Clarification for GDC Solicitation # 46700 GDC000060

TELMATE BAFO CLARIFICATION FOR GDC

Telmate is pleased to provide our clarifications to the GDC regarding our BAFO for the Inmate Telephone Service Solicitation # 46700-GDC0000609.

Response:

Telmate understands the final commission rate calculation as defined in Attachment O.

Response:

Telmate understands the commission rate calculation that whichever is greater will be paid to GDC, the MMG of $725,000 or the agreed upon commission percentage of 82% of Gross Call Revenue.

Telmate Understands:

RFP.

Response:

Telmate understands the current call volume provided by GDC. Telmate assumptions are based upon allowing for additional call types of inmate debit and calls to cell phones as in-cremental to the call assumptions provided to GDC. Telmate also acknowledges the current PAN process at GDC and the time delay of adding new numbers to an offenders allowable call list. Telmate has based our call volume assumptions upon historical Telmate DOC cus-tomers and the Department of Homeland Security contract which Telmate currently pro-vides services.

Telmate expects monthly call volume to be above 12 calls per offender per month with an average monthly spend to exceed $25 per offender using the Telmate platform. This would mean a drastic increase of call volume and call revenue. These increases, combined with a 82% commission, would equal over $1,000,000 per month in commission back to GDC. If these projections are met, GDC could expect a combined contract revenue of $13,000,000 per year consisting of commissions of $12,000,000 and the Financial Incentive of $1,000,000 per year. This revenue projection is based on implementation of all call types at GDC, cou-pled with high adoption rates by offenders and reduction of contraband cell phones. At our other DOC facilities, the average spend per offender exceeds $30 per offender per month with similar expected cost per call as GDC is proposing.

Response:

Telmate understands the initial term verification to be 3 years and then one year renewal options not to exceed 7 years of total contract value.

Telmate BAFO Clarification for GDC Solicitation # 46700 GDC000060

Response:

As discussed on the BAFO Clarification telephone conference, Telmate will pay $250,000 on contract execution within 7 days or release from potential protest. From that memorial-ized date, Telmate will pay to GDC $250,000 per quarter or 90 days from contract execu-tion, within 7 days. Example, contract is executed by both parties on March 12th. Payment will be made on or before March 19th of $250,000. The payment schedule would then be the following:

•March 12-19: $250,000

•June 12-19: $250,000

•September 12-19: $250,000

•December 12-19: $250,000

The only variable to payment schedule would be of protest, if executed contract goes into a protest state then payments and payment cycle would be altered to fit the new pending schedule based upon moving forward by both parties.

Response:

Telmate understands the Minimum Monthly Guarantee to be $725,000 once phone calls be-gin to process through the Telmate platform. Telmate is comfortable with this level of MMG based upon our historical experience within in the DOC marketplace and the information provided by GDC to Telmate. Telmate has always met or exceeded all existing contracts which contain an MMG, during the term of the contract and all renewal periods.

Response:

Telmate understands the required fee structure as outlined by GDC. Telmate understands $4.75 per deposit may be charged however no ancillary fees or deductions from Gross Rev-enue may be applied, examples: Regulatory Recovery Fees, Access Charges, Bill Statement Fees etc. or anything within this type of fee category.

Additional:

Response:

Telmate understands and has no intention of renegotiating the financial terms of this agree-ment during the initial term.