ST. LOUIS, MO - Family and friends of Missouri's prison inmates could have collectively saved about $3.4 million a year more in phone charges under a proposal that was rejected by the state last month.

Instead, Missouri awarded its prison phone contract to a company whose charges for certain local calls are more than four times as high as rates offered by a competing bidder.

Three of the four companies that were passed over by the state have filed protest letters claiming the bid process was unfair. Joining them are some lawmakers who wonder why the state would reject a chance to save consumers millions of dollars.

“Why allow this money to go into the pockets of providers?" asks Sen. Maida Coleman, D-St. Louis, who has written Gov. Matt Blunt demanding an explanation.

State officials stand behind the bidding process, saying it was based on a wide range of criteria aside from cost.

James Miluski, director of the state's Division of Purchasing, said the state also had to look at the track record of each phone company with other prison systems, as well as whether they had the technology to record and monitor inmate phone calls.

Even so, Miluski said, the new phone contract will result in lower rates than those currently charged. He estimated the savings at about $2 million a year.

The contract was awarded last month to Public Communications Services. The California company earned high marks for its track record in New Hampshire, Vermont and Iowa, and for the technological support it promised to provide.

The company's rates were second-highest among the five bidders. Under those rates, consumers would pay about $3.4 million more than under the lowest bid by Consolidated Communications Public Services, based in Mattoon, Ill. The estimate is based on projected call volume.

That company would have charged 7 cents a minute for long-distance calls, compared with 10 cents under the winning bid.

The price differences are more pronounced for local calls. Under the cheapest proposal, calls would have cost 95 cents, regardless of duration. Under the winning contract, a 35-minute local call would cost $4.50, including a $1 surcharge.

Kelly Cole, a general manager for Consolidated Communications, said the state has a responsibility to seek out the lowest bidder even it isn't paying for the phone calls directly.

Missouri has a reputation for its affordable inmate calling system. Five years ago, the state reduced surcharges on calls. Many other states, including Illinois, collect a surcharge above and beyond their costs on each call. A typical long-distance call in Illinois costs 40 cents a minute, Cole said.