SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT ON FORM 8-K
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report, March 3, 1998
Commission File Number: 0-20307
AVALON COMMUNITY SERVICES, INC.
(Exact name of Registrant as
specified in its corporate charter)
Nevada 13-3592263
(State of Incorporation) (I.R.S. Employer I.D. Number)
13401 Railway Drive, Oklahoma City, Oklahoma 73114
(Address of Principal executive offices)
(405) 752-8802
(Issuer's telephone number)
ITEM 5. Other Events
The Company was awarded a five year contract in March 1998 with the Oklahoma
Office of Juvenile Affairs. The contract is to provide services for 80 youthful
delinquent offender males ages 13 to 19. The Company will design, build and
operate a new medium security facility to provide for housing, education,
program and recreation areas for these offenders. The contract is expected to
generate annual revenues of approximately $3,700,000 beginning in the fourth
quarter of 1998. The contract is expected to generate revenues of $18,800,000
over a five year period. The Company will complete the construction of the
facility and commence operations under this contract by December 1, 1998.
Services under the contract will include educational programming, counseling
and treatment programs, recreational therapy, independent living skills to
assist youths with reintegrating into a school or work program, and a job
training program. The facility will include housing units, educational
classrooms, program areas, and indoor and outdoor recreation areas.
ITEM 7(c). Exhibits
Contract Number R060692 with the Oklahoma Office of Juvenile Affairs dated
March 3, 1998.
AVALON COMMUNITY SERVICES, INC. AND SUBSIDIARIES
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
Date: March 19, 1998 AVALON COMMUNITY SERVICES, INC.
By: \Jerry Sunderland
Jerry Sunderland, President
PAMELA M. WARREN FRANK KEATING
DIRECTOR GOVERNOR
STATE OF OKLAHOMA
DEPARTMENT OF CENTRAL SERVICES
CENTRAL PURCHASING DIVISION
March 3, 1998
Southern Corrections Systems, Inc.
Attn: Mr. Jerry Sunderland
13501 Railway Drive
Oklahoma City, OK 73114
Subject: Invitation to Bid H044241 for the Office of Juvenile Affairs 80 Bed
Medium Security Residential Treatment Center for Youthful Offender and Class I,
II and III Delinquents
Dear Mr. Sunderland:
Your offer submitted in response to the subject Invitation to Bid has been
accepted, and a fully executed copy of Contract Number R060692 is attached.
Administration of this Contract will be by the Specialized Contracting Branch of
the Central Purchasing Division. All written communications pertaining to the
terms and conditions of Contract R060692 must be addressed to Central Purchasing
Division, Specialized Contracting Branch, Room B-12, State Capitol Building,
Oklahoma City, OK 73105.
You may call Ms. Liza Herrera at 405/521-3780 or Ms. Irene Polk at 405/521-4058
for telephone inquiries.
Sincerely,
Tom Jaworsky
Director
Central Purchasing
1. Vendor's Office Copy
Page 1 State of Oklahoma
Department of Central Services PO# R060692
Purchase Order
Date Agency Delivery
Issued: 03/03/98 Reqn.#: H044241 Reqn.#:9800000000995 Terms: NET Date:03/03/98
- --------------------------------------------------------------------------------
To: 7313562912
ATTN JERRY SUNDERLAND
SOUTHERN CORRECTIONS SYSTEMS INC
PO BOX 57012
OKLAHOMA CITY OK 73157
Ship To: 40000
OFFICE OF JUVENILE AFFAIRS
3814 N. SANTA FE, 4TH FLOOR
OKLAHOMA CITY, OK 73118
Charge & 4001A
Invoice To: OFFICE OF JUVENILE AFFAIRS
P.O. BOX 268812
OKLAHOMA CITY, OK 73126-8812
- --------------------------------------------------------------------------------
Item Quantity Unit Commodity Code Description Unit Price Amount
- ----- -------- ---- -------------- ----------- ---------- -------
001 12.00 MOR 0952-95-65 303,999.61 3,647,995.32
80-BED MEDIUM SECURITY RESIDENTIAL TREATMENT
CENTER FOR YOUTHFUL OFFENDERS AND CLASS I, CLASS
II AND CLASS III DELINQUENTS
THIS IS A REVISED PURCHASE ORDER. THIS DOCUMENT
SUPERCEDES ANY PREVIOUSLY ISSUED PURCHASE ORDERS
001A- OPTION YEAR I: $ 309,406.05 MONTH
$ 3,712,872.62 ANNUAL
OPTION PERIOD I CONTRACT TERM SHALL BE FOR AN
ADDITIONAL 12 MONTH PERIOD.
001B - OPTION YEAR II: $ 313,118.48 MONTH
$ 3,757,421.72 ANNUAL
OPTION PERIOD II CONTRACT TERM SHALL BE FOR AN
ADDITIONAL 12 MONTH PERIOD.
001C - OPTION YEAR III: $318,453.96 MONTH
$ 3,821,447.51 ANNUAL
OPTION PERIOD III CONTRACT TERM SHALL BE FOR AN
ADDITIONAL 12 MONTH PERIOD.
001D - OPTION YEAR IV: $ 332,629.53 MONTH
$ 3,871,554.36 ANNUAL
OPTION PERIOD IV CONTRACT TERM SHALL BE FOR AN
ADDITIONAL 12 MONTH PERIOD.
TOTAL 60 MONTH PRICE: $ 18,811,291.49
TERMS:
THE CONTRACT EFFECTIVE DATE FOR THE OJA MSRTC PROGRAM IS 3/3/98. THE
CONTRACTOR SHALL BE REQUIRED TO HAVE THEIR PROPOSED FACILITIES
OPERATIONAL NO LATER THAN 9 MONTHS FROM THE CONTRACT EFFECTIVE DATE. THE
EFFECTIVE DATE FOR SERVICES TO BE PROVIDED SHALL COMMENCE NO LATER THAN
DECEMBER 3, 1998 AND END ON DECEMBER 2, 1999 FOR THE ASIC CONTRACT
PERIOD. OPTIONAL PERIODS SHALL COMMENCE OF DECEMBER 3 AND END ON DECEMBER
2 OF THE RESPECTIVE CALENDAR YEARS.
THIS CONTRACT INCORPORATES ITB H044241 REQUIREMENT
AND SOUTHERN CORRECTIONS INC. BID PROPOSAL
RESPONSE DATED 2-9-98 BY REFERENCE
VENDOR CONTACT: JERRY SUNDERLAND AT 405-752-8802
FAX: 405-752-8852
Prices exclusive of Federal and State Taxes. Prices are FOB destination unless
stated otherwise.
VENDORS READ AND FOLLOW CLOSELY:
1. This order void one year from date of issuance.
2. The above order is issued in conformity with
your quotation and constitutes a contract.
3. If payment is received in excess of 45 days
after submitting proper invoice, vendor may be entitled to claim interest
penalty. For a copy of these regulations contact OFFFICE OF STATE FINANCE
Room 122, State Capitol Bldg, OKC OK 73105
Tom Jaworsky
----------------------
Signed
Director/Designee
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