Securus Technologies Chooses to No Longer Bid on Praeses-Managed Accounts
DALLAS, Aug. 12, 2013 /PRNewswire/ -- Securus Technologies, Inc., a leading provider of inmate communications services, announced today that it is making the strategic decision to no longer bid on certain Praeses-managed proposal requests (RFPs). After multiple years of responding to Praeses-managed opportuntities, Securus believes the resulting agreements are not in the best interest of the customer and its constituents, and that they are not objective contests aimed at finding the best provider. Securus is the latest service provider to make the decision to not engage in certain Praeses-led opportunities.
"In an environment where minimizing the cost of calls for friends and family is being balanced by a constant need to improve security and investigative capabilities for our correctional facilities, it's impossible to justify building in costs for non value-adding channels," said Rick Smith CEO of Securus Technologies. In Securus' opinion, Praeses' RFP criteria and requirements are slanted towards having the provider focus money and development resources on making Praeses' job easer. In many cases, Praeses still uses criteria from many years ago in their RFPs, despite the enormous changes that have occurred in technology and in the needs of law enforcement. Securus sees Praeses awarding contracts disproportionately to a single provider that holds a very small market share. The public data shows that Praeses contracts are awarded to this same provider nearly 60% of the time. When Praeses is not involved in an account, Securus' data shows this competitor wins less than 2% of the market. Securus contends that this shows a bias.
"I do not see that Praeses is acting in an independent manner, nor acting in the best interests of law enforcement, corrections, victims, inmates, or their friends and family," said Rick Smith, "That's why we are going to focus our time working with agents and facilities who value the technology that helps law enforcement do its job better, drives better customer economics, and deploys today's innovations. In our opinion, Praeses has done their accounts a disservice and we question the value they provide in our industry."
Public data shows that Praeses proposes charging up to 9% of a contract's revenue for their services. Ted Hull, Superintendent of Northern Neck Regional Jail in Virginia stated, "While the benefits of RFP preparation, review, and contract management by a third party are individualized and hard to assess, the value proposition afforded by the model is difficult to justify and realize financially."
Securus will continue to work with its base of Praeses-managed accounts. "We will continue to work closely with our accounts that have chosen Praeses as an agent. We deeply value our customer relationships and will work hard to make sure our customers always have the best service possible—regardless of who they choose to represent them," said Joshua Conklin, Securus' Vice President of Sales. Securus will now selectively focus its attention on only those new opportunities where it can effectively demonstrate how a modern approach and recent innovations can create safer communities and more secure environments.
Securus' mission will remain as it always has: to improve the capabilities of investigators, create more secure jail/prison environments, and promote programs that help inmates stay in contact with their families and reduce recidivism. "Securus is simply committed to a different and better mission, one that embraces more than what Praeses cares about," Smith said.
Securus Technologies, Inc. is the leading provider of detainee communications and information management solutions, serving approximately 2,200 correctional facilities and more than 850,000 inmates nationwide. Securus' sole focus is the specialized needs of the corrections and law enforcement communities. Securus is headquartered in Dallas, TX, and has regional offices in Montreal, Quebec; Atlanta, Georgia; and Melbourne, Florida. For more information, please visit the Securus website at www.securustech.net
SOURCE Securus Technologies, Inc.
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