Federal Register - July 28, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 142 / Wednesday, July 28, 2021 / Rules and Regulations
contracts, due to limitations of the reported cost data. Additionally, at least three of the direct cost per-minute entries are misleading:
Two carriers, REDACTED and REDACTED, report zero direct costs, while GTL only reports bad debt as a direct cost.
These three providers almost certainly have substantially larger direct costs and hence substantially larger direct costs per minute.
TABLE 8INMATE CALLING SERVICES PER-MINUTE REVENUES AND COSTS INCLUSIVE OF SITE COMMISSIONS BY
PROVIDER AND FACILITY TYPE IN 2018
Firm
Number of contracts
Type
Jail Jail Jail Jail Jail Jail Jail Jail Jail Jail
Percent share of contracts
Average per-minute revenues $
Average per-minute costs $
Average per-minute profits $
Average per-minute direct costs $
ATN
CenturyLink
Correct
CPC
GTL
ICSolutions
Legacy
NCIC
Pay Tel
Securus
Larger Larger Larger Larger Larger Larger Larger Larger Larger Larger
..
..
..
..
..
..
..
..
..
..
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
Industry
Larger Jail ..
182
100
0.247
0.218
0.029
0.026
CenturyLink
GTL
ICSolutions
Legacy
NCIC
Securus
Prison Prison Prison Prison Prison Prison
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
REDACTED
Industry
Prison
129
100
0.148
0.137
0.011
0.010
NOTES: Direct costs are costs, excluding site commissions, recorded at the contract level in the Second Mandatory Data Collection responses. Averages are calculated across contracts.
khammond on DSKJM1Z7X2PROD with RULES2
67. Recovery of Allocated Costs Under the New Interim Provider-Related Rate Caps. The Commission estimates the inmate calling services revenues that providers would have earned in 2018 under the new interim caps, assuming no change in minute volumes.
Table 9 presents the number and percentage of contracts for which these estimated inmate calling services revenues would exceed allocated costs or would exceed reported direct costs, first excluding automated payment and paper billing revenues, and second including these revenues referred to as ancillary revenues in the table. The number of REDACTED and GTL contracts that cover direct costs as reported in the third-to-last and last columns are overstated because REDACTED did not record any direct costs, and GTL only recorded bad debt.
On this basis, the Commission finds that providers would recover their allocated costs under 71% of prison contracts. All of the other REDACTED prison contracts are contracts REDACTED held in 2018. Based
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on its reported costs, REDACTED would incur per-minute losses ranging from REDACTED to REDACTED with a median loss of REDACTED per minute. If automated payment and paper billing fees are excluded, REDACTED contracts would have perminute costs above the $0.12 interim cap, ranging from REDACTED to REDACTED.
Of these contracts, all held by REDACTED, REDACTED have per-minute revenues of less than $0.12. Providers would recover their allocated costs under 99% of larger jail contracts. The other 1% or two contracts were contracts REDACTED and REDACTED held in 2018. Based on their reported costs, these providers would incur per-minute losses of REDACTED and REDACTED, respectively. If automated payment and paper billing fees are excluded, REDACTED contracts would have perminute costs above the $0.14 interim cap, ranging from REDACTED to REDACTED.
Of these REDACTED contracts, REDACTED were allocated per-minute costs
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below REDACTED. All REDACTED
contracts with per-minute costs above REDACTED reported revenues below their allocated costs. The 71% and 99% figures are likely underestimates for several reasons:
many providers reported costs may be overstated; the full range of ancillary fees that contribute toward recovering inmate calling services costs may not be reported, while some costs associated with these may be included in inmate calling services costs;
some contracts where subcontracting occurs likely double count costs; and minutes of use may over-allocate costs to certain contracts.
Revenues from automated payment fees and paper billing fees alone covered the costs of five, or 3%, of larger jail contracts in 2018.
The importance of these revenues is shown in Table 9 when comparing total costs covered by project revenues with and without ancillary revenues, as the overall industry costs covered increases from 92%
without to 99% with.
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