0A1246_AMD_2_and_Renewal_Final_Signed.pdf

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 1 of 14

Version 5/24

JADETRACK LLC (0A1246)

REQUEST FOR PROPOSALS

AMENDMENT 2 AND RENEWAL

This Amendment and Renewal of contract #0A1246 (the “Renewal”) is between the State of Ohio, Department of Administrative Services (the “State”) and JadeTrack LLC (the “Contractor”). This Renewal renews Request for Proposals contract (0A1246) (the “Contract”) for the term set forth below.

WHEREAS, the State and Contractor entered into the Contract on December 13, 2018, expiring on June 30, 2025;

WHEREAS, the State and Contractor desire to renew the Contract; and

WHEREAS, the State and Contractor determined that an amendment is necessary to address certain revisions to the Contract.

NOW, THEREFORE, the Contract is amended and renewed as follows:

1. Pursuant to Attachment Four: General Terms and Conditions, Part One: Performance and Payment, Term, the term of the Agreement is renewed for an additional term of two years, beginning on July 1, 2025 and ending on June 30, 2027.

2. In Attachment Four, Part Two: Work and Contract Administration, delete the Audits Section in its entirety and replace it with the following:

Audits. The Contractor must keep all financial records in a manner consistent with Generally Accepted Accounting Principles (GAAP) or equivalent accounting principles. Additionally, the Contractor must keep separate business records for this Work, including records of disbursements and obligations incurred that must be supported by contracts, invoices, vouchers and other data as appropriate.

During the period covered by this Contract and until the expiration of three (3) years after final payment under this Contract, the Contractor agrees to provide the State, or any authorized representatives providing financial support to the work undertaken hereunder, with access to and the right to examine any books, documents, papers and records of the Contractor involving transactions related to this Contract.

The Contractor must, for each subcontract in excess of $25,000, require its subcontractors to agree to the same provisions of this Section. The Contractor may not artificially divide contracts with its subcontractors to avoid requiring subcontractors to agree to this provision. This provision does not apply to contracts where federal funds are used and the federal government requires audits of all subcontracts regardless of the amount of the contract.

The Contractor must provide access to the requested records at the location specified by the State no later than five (5) business days after the request by the State, the State’s designee or any party with audit rights. If an audit reveals any material deviation from the Contract requirements, any misrepresentations, or overcharge to the State or any other provider of funds for the Contract, the State or other party will be entitled to recover damages as well as the cost of the audit.

If any audit reveals any material misrepresentation, overcharge to the State, or violation of the terms of this Contract, the State will be entitled to recover its damages, including the cost of the audit.

3. In Attachment Four, Part Two: Work and Contract Administration, Changes Section add the following:

Change Orders must be added to the Contract through a Contract Amendment as described in Attachment Four, Part Six: Construction, Amendments – Waiver.

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 2 of 14

4. In Attachment Four, Part Two: Work and Contract Administration, Independent Contractor Acknowledgement Section, delete the PEDACKN form link and replace it with the following:

https://www.opers.org/forms-archive/PEDACKN-Non-Member-Acknowledgment.pdf.

5. In Attachment Four, Part Two: Work and Contract Administration, add the following:

OhioBuys. This Contract may become part of OhioBuys, an electronic procurement system which provides electronic contract and catalog hosting and management services. Ordering Agencies access this system to place orders for the procurement of goods and services using State of Ohio contracts. When the Contract becomes part of OhioBuys, the Contractor agrees to establish, maintain and support its contract and catalog in OhioBuys.

6. In Attachment Four, Part Seven: Laws and Courts, delete the Drug-Free Workplace Section in its entirety and replace it with the following:

Drug Free Workplace. The Contractor agrees to comply with all applicable state and federal laws regarding drug-free workplace and shall make a good faith effort to ensure that all Contractor employees, while working on State property or performing work on behalf of the State, will not purchase, transfer, use, be under the influence of, or possess illegal drugs, non-medical cannabis (recreational marijuana), or alcohol, or abuse prescription drugs or medical marijuana in any way.

7. In Attachment Four, Part Seven: Laws and Courts, delete the Governing the Expenditure of Public Funds on Offshore Services (EO 2011-12K) Section in its entirety and replace it with the following:

Prohibition of the Expenditure of Public Funds for Offshore Services. No State Cabinet, Agency, Board or Commission will enter into any contract to purchase services provided outside the United States or that allows State data to be sent, taken, accessed, tested, maintained, backed-up, stored, or made available remotely outside (located) of the United States, unless a duly signed waiver from the State has been attained. Notwithstanding any other terms of this Contract, the State reserves the right to recover any funds paid for services the Contractor performs outside of the United States for which it did not receive a waiver. The State does not waive any other rights and remedies provided the State in the Contract.

Further, no State agency, board, commission, State educational institution, or pension fund will make any purchase from or investment in any Russian institution or company. Notwithstanding any other terms of this Contract, the State reserves the right to recover any funds paid to Contractor for purchases or investments in a Russian institution or company in violation of this paragraph. The provisions of this paragraph will expire when the applicable Executive Order is no longer effective.

The Contractor must complete the Contractor/Subcontractor Affirmation and Disclosure Form affirming the Contractor understands and will meet the requirements of the above prohibition. During the performance of this Contract, if the Contractor changes the location(s) disclosed on the Affirmation and Disclosure Form, Contractor must complete and submit a revised Affirmation and Disclosure Form reflecting such changes.

8. In Attachment Eight, delete the Affirmation and Disclosure Form.

9. In Part Two: Structure of this RFP, delete Supplement 2 State Security, Privacy and Data Handling Requirements, in its entirety and replace it with the following:

DATA SECURITY AND PRIVACY TERMS

These Data Security and Privacy Terms (“Terms”) describe the responsibilities for the Contractor relating to State information security and privacy standards and requirements for all proposed https://www.opers.org/forms-archive/PEDACKN-Non-Member-Acknowledgment.pdf https://dam.assets.ohio.gov/image/upload/procure.ohio.gov/pdf/StateLocalAgencies/Resources_Forms/04-Affirmation%20and%20Disclosure%20Form_3-4-22.pdf

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 3 of 14 solutions, whether cloud, on-premises, or hybrid based. These Terms apply to all work, services, and personnel across all environments, and State of Ohio (“State”) and Contractor locations (e.g., cloud (Software as a Service, Platform as a Service, or Infrastructure as a Service), on-premises, or hybrid) along with the computing elements that the Contractor will perform, provide, occupy, or utilize in performing the work, and any Contractor access to State resources in conjunction with the delivery of work.

The Contractor must comply with these Terms as they apply to the services being provided to the State. The Contractor is responsible for maintaining information security in any environments under the Contractor’s management in accordance with these Terms.

These Terms are in addition to the Contract terms and conditions. In the event of a conflict between the Contract and these Terms, the most stringent standard will prevail.

Definitions

1. Contract means the contract entered into between the Contractor and the State to which these Terms are attached and/or incorporated.

2. Contract Data means State Data that the Contractor has access to, transmits, processes, possesses, creates or stores in providing services to the State.

3. Contractor means the person or entity with whom the State has entered into the Contract and, for purposes of these Terms, includes subcontractors or other personnel under the authority or control of the Contractor performing the work or providing the services under this Contract.

4. Personally Identifiable Information as defined in the Ohio Revised Code means information that can be used directly or in combination with other information to identify a particular individual. It includes:

A. A name, identifying number, symbol, or other identifier assigned to a person, B. Any information that describes anything about a person, C. Any information that indicates actions done by or to a person, D. Any information that indicates that a person possesses certain personal characteristics.

5. Security Event is any observable occurrence that is relevant to information security within normal operational noise levels and below pre-defined incident thresholds that does not adversely impact or potentially impact Contract Data or information systems.

6. Security Incident means there is successful unauthorized access, use, disclosure, modification, or destruction of information or interference with system operations in an information system.

7. State Data means all data and information provided by, created by, created for, or related to the activities of the State and any information from, to, or related to all persons that conduct business or personal activities with the State, including, but not limited to Confidential Data. All State Data is and will remain the property of the State and, unless specifically provided otherwise in the Contract, Contractor acquires no right, title, or interest in or to State Data.

8. Confidential Data means any type of data that is required to be protected by law or regulation, is intended for confidential use, and may not be copied or removed from the State’s operational control without authorized permission. Confidential Data includes data that, if compromised, may result in loss of life, serious injury, or other harm to an individual

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 4 of 14 or group, or disruption to critical State operations. Confidential Data is included in the definition of Confidential Information in the Contract.

Confidential Data includes, but is not limited to:

A. Personally Identifiable Information (PII);

B. Student information under the Family Educational Rights and Privacy Act (20 U.S.C. §

1232g);

C. Federal Tax Information (FTI) under IRS Publication 1075 - Tax Information Security

Guidelines for federal, state, and local agencies;

D. Protected Health Information (PHI) under the Health Insurance Portability and

Accountability Act (45 CFR Part 160 and Subparts A, C, and E of Part 164); United States Code 42 U.S.C. 1320d through 1320d-9 (HIPAA); and Code of Federal Regulations for Public Health and Public Welfare: 42 C.F.R. 431.300, 431.302, 431.305, 431.306, 435.945, 45 C.F.R. 164.502(e) and 164.504(e);

E. Criminal Justice Information (CJI) under the Federal Bureau of Investigation’s Criminal Justice Information Services (CJIS) Security Policy available at https://le.fbi.gov/cjis-division/cjis-security-policy-resource-center;

F. Payment Card Industry Data Security Standards (PCI DSS);

G. Social Security Administration (SSA) Data which is data received by the State from the

Social Security Administration in accordance with the current Computer Matching and Privacy Protection Act between the State of Ohio and the Social Security Administration;

and

H. Other types of information not associated with an individual such as security and infrastructure records, trade secrets, and business bank account information.

9. State IT Security Policies and Standards means the policies and standards available at https://das.ohio.gov/technology-and-strategy/information-security-privacy/information-security-governance.

Requirements

1. The Contractor’s Responsibilities Generally

At a minimum, the Contractor must maintain the security of Contract Data in accordance with the moderate level security baseline of the current published version of the National Institute of Standards and Technology Special Publication 800-53, “Security and Privacy Controls for Federal Information Systems and Organizations,” (NIST 800-53). In the alternative, the Contractor may maintain the security of Contract Data in accordance with International Organization for Standardization 27001 (ISO 27001) if the Contractor implements the additional necessary controls to achieve compliance with the requirements of NIST 800-53. Hereinafter, references in these Terms to “NIST 800-53" means both of the frameworks defined in this paragraph.

The Contractor must implement the information security policies, standards, and capabilities set forth in the Contract, support the State’s adherence to the State IT Security Policies and Standards, and use procedures in a manner that does not diminish established State capabilities and standards.

If the Contractor accesses the State’s facilities or networks, or provides products, solutions, or services that will be implemented or integrated in the State’s controlled environment, the Contractor must ensure its products, solutions, or services comply with State IT Security Polices and Standards, as appropriate (available at the link provided above in the definition of State IT Security Policies and Standards).

The Contractor’s information security and technology responsibilities with respect to the work and https://le.fbi.gov/cjis-division/cjis-security-policy-resource-center https://le.fbi.gov/cjis-division/cjis-security-policy-resource-center https://das.ohio.gov/technology-and-strategy/information-security-privacy/information-security-governance https://das.ohio.gov/technology-and-strategy/information-security-privacy/information-security-governance

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 5 of 14 services the Contractor is providing to the State include the following, where applicable:

A. Assist in the implementation of associated security procedures with the State’s review and approval, including physical access requirements, User ID approval procedures, and a Security Incident action and response plan.

B. Support implementation and compliance monitoring as per the State IT Security Policies and Standards.

C. Upon identification of a potential issue with maintaining an “as provided” State infrastructure element in accordance with a more stringent State level security policy, the Contractor must identify and communicate the nature of the issue to the State, and, if possible, outline potential remedies for consideration by the State.

2. Protection and Handling of Contract Data

The Contractor must maintain an information security program made up of policies, procedures, technical and organizational safeguards, and training designed to protect Contract Data against unauthorized loss, destruction, alteration, access, or disclosure. To protect Contract Data, the Contractor must use due diligence to ensure that computer and telecommunications systems and services involved in storing, using, or transmitting Contract Data are secure and prevent Contract Data from unauthorized disclosure, modification, use, or destruction. To accomplish this, the Contractor must adhere to the following requirements regarding Contract Data in addition to the confidentiality requirements in the Contract:

A. Assume all Contract Data is both confidential and critical for State operations.

B. Maintain, in confidence, Contract Data it may obtain, maintain, process, or otherwise receive from or through the State during the term of the Contract and pursuant to the provisions of the Contract and these Terms.

C. Use and permit its employees, officers, agents, and subcontractors to use any Contract Data received from the State solely to perform its obligations under the Contract.

D. Not sell, rent, lease, disclose, or permit its employees, officers, agents, and subcontractors to sell, rent, lease, or disclose, any Contract Data to any third party, except as permitted under the Contract or required by applicable law, regulation, or court order.

E. Take all commercially reasonable steps to (a) protect the confidentiality of Contract Data received from the State and (b) establish and maintain physical, technical, and administrative safeguards to prevent unauthorized access by third parties to Contract Data received by the Contractor from the State.

F. Apply appropriate risk management techniques to balance the need for security measures against the sensitivity of Contract Data.

G. Ensure that the Contractor’s internal security policies, plans, and procedures address the basic security elements of confidentiality, integrity, and availability of Contract Data, and periodically review and update these policies, plans, and procedures as needed.

All Contract Data at rest in systems supporting the Contractor’s services must reside within the contiguous United States with a minimum of two data center facilities at two different and distant geographic locations, ensuring physical and environmental protection controls are implemented as defined in State IT Security Policy 2100-15, and be handled in accordance with the requirements of these Terms at all Contractor locations. All Contract Data that is not classified as public by the State must be encrypted at rest and while in transit utilizing industry standards

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 6 of 14 that meet Federal Information Processing Standards (FIPS) validated algorithms and comply with State IT Security Policy IT-14, Securing Confidential Data.

If the Contractor will be accessing, processing, transmitting, possessing, creating, or storing Confidential Data, the State may require additional documentation from the Contractor and/or input to complete State documentation.

3. Security Standards and Warranties

All solutions shall operate at the moderate level baseline as defined in the current published version of NIST 800-53, be consistent with Federal Information Security Management Act, 44 U.S.C. § 3551 et seq.

(FISMA 2014) requirements and offer a customizable and extendable capability based on open-standards APIs that enable integration with third party applications.

The Contractor’s information security program must be designed to protect Contract Data by implementing an industry security and privacy standard including, at a minimum:

A. Security and confidentiality of Contract Data.

B. Protection against anticipated threats or hazards to the security or integrity of Contract Data.

C. Protection against unauthorized access to, disclosure of, or use of Contract Data.

D. Giving access to Contract Data only to those individual employees, officers, agents, and subcontractors who need to know such information in connection with the performance of the obligations under the Contract.

E. Cooperating with any attempt by the State to monitor compliance with the foregoing obligations as reasonably requested by the State.

F. Promptly destroying or returning to the State, in a format designated by the State, all Contract Data received from or through the State upon completion of the work under the Contract or upon termination or expiration of the Contract. Notwithstanding the foregoing, the Contractor may keep a copy of the Contract Data to comply with contractual, legal, or record keeping obligations, and any such retained Contract Data is subject to the requirements of this Contract for so long as the Contractor has the Contract Data in its possession.

G. Maintaining appropriate and effective business continuity and disaster recovery plans to ensure resiliency of Contract Data and business operations.

H. Maintain a privacy policy that includes, at a minimum, processes for the State to obtain individual privacy consent for the use of PII, at the determination of the State, and to respond to individuals’ requests to access, correct, and delete their PII unless otherwise expressly agreed to in the Contract. All PII, including PII that has been de-identified, is considered Contract Data and Confidential Information under this Contract.

The Contractor must scan all source code for vulnerabilities, including before and after any source code changes are made, must promptly remediate vulnerabilities, and/or provide the State with patches to address the vulnerabilities at no cost to the State. The Contractor must follow best practices for application code review and the most current version of the Open Source Foundation for Application Security (OWASP) top 10.

In addition to the warranties provided and pursuant to the terms of the warranties section of the Contract (i.e., notification, correction, and indemnification), the Contractor warrants that its software is free from viruses, malware, and other harmful or malicious code.

4. Permitted Disclosure to Third Parties

Disclosure of Contract Data is permitted as set forth in the Contract. Additionally, disclosure of Contract Data is also permitted when required by applicable law, regulation, court order, or subpoena. If the

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 7 of 14

Contractor or any of its representatives are ordered or requested to disclose any information provided by the State, whether Confidential Data or otherwise, pursuant to court or administrative order, subpoena, summons, or other legal process or otherwise believes that disclosure is required by any law, ordinance, rule or regulation, the Contractor must notify the State within 24 hours of receipt of the order or request in order for the State to seek a protective order or take other appropriate action, as desired. The Contractor must also cooperate in the State’s efforts to obtain a protective order or other reasonable assurance that confidential treatment will be accorded the information provided by the State.

If, in the absence of a protective order, the Contractor is compelled as a matter of law to disclose the information provided by the State, the Contractor may disclose to the party compelling disclosure only the part of such information as is required by law to be disclosed (in which case, prior to such disclosure, the Contractor must advise and consult with the State and its counsel as to the scope of such disclosure and the nature of wording of such disclosure) and must use commercially reasonable efforts to obtain confidential treatment for the information disclosed.

The Contractor may disclose Confidential Information to the following people, subject to the requirements of the Contract and these Terms:

A. To State or Federal auditors or regulators.

B. To service providers and agents of either party as permitted by law, provided that such service providers and agents are subject to binding confidentiality obligations.

C. To the professional advisors of either party, provided that such advisors are obligated to maintain the confidentiality of the information they receive.

The State may, at any time in its sole discretion, elect to perform a security and data protection audit. This includes a thorough review of Contractor controls, security and privacy functions and procedures, data storage and encryption methods, and backup and restoration processes. The State may utilize a third-party contractor to perform such activities to demonstrate that all security, privacy, and encryption requirements are met. The State will provide its request in writing and will work with the Contractor to schedule time to conduct the audit.

5. Background Investigations of Contractor Personnel

Any person who (a) has been convicted at any time of any criminal offense involving dishonesty, a breach of trust, money laundering, or who has entered into a pre-trial diversion or similar program in connection with a prosecution for such offense, (b) is named by the Office of Foreign Asset Control (OFAC) as a Specially Designated National, or (c) has been convicted of a felony may not perform certain services under the Contract.

The Contractor must conduct background investigations on Contractor personnel that may have access to Contract Data. The State may conduct background investigations on Contractor personnel that have or may have access to Confidential Data, critical infrastructure systems, or when required by law, rule, or regulation. The State will conduct initial background investigations on Contractor personnel who will have access to FTI and/or CJI that must be favorably adjudicated before being permitted to access the FTI and/or CJI, and ongoing background investigations every five years thereafter for personnel who already have access to FTI and/or CJI.

If any Contractor personnel refuses to have a background investigation completed or has an unfavorably adjudicated background investigation completed, the State may terminate that personnel’s access to the Contract Data.

6. Security Incidents and Events

A. Categories

Security Incidents may fall into one or more of, but are not limited to, the following categories:

i. Loss or Theft

ii. Denial of Service (DoS)

iii. Improper Usage or Access

iv. Information Spillage

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 8 of 14

v. Malicious Code

vi. Phishing Messages

vii. Scans/Probes/Attempted Access

viii. Social Engineering

ix. Unauthorized Access

Security Events may fall into one or more of, but are not limited to, the following categories:

i. Unsuccessful log-on attempts

ii. Unsuccessful denial of service attacks

iii. Unsuccessful phishing attacks

iv. Unsuccessful network attacks such as pings, probes of firewalls, or port scans.

B. Security Incident Response and Reporting

The Contractor is responsible for Security Incident response, including containment, eradication, and recovery, to minimize the impact to the State. In addition to the requirements in the Contract, the Contractor must perform the following in response to a Security Incident involving Contract Data.

The Contractor is not required to report Security Events unless a pattern of attacks significantly increases the risk of impact.

The Contractor must report in writing to the State within 24 hours of the Contractor becoming aware of any Security Incident and/or use or disclosure of Contract Data not authorized by the Contract, including any reasonable belief that unauthorized access to or acquisition of Contract Data has occurred, and fully cooperate with the State to mitigate the consequences of the Security Incident. Within five business days of the initial Security Incident report to the State, the Contractor must document and begin providing follow-up reports for all Security Incidents to the State. The Contractor must provide updates to the follow-up reports until the investigation is complete. At a minimum, the Security Incident reports will include:

i. Data elements involved, the extent of the Contract Data involved in the Security Incident, and the identification of affected individuals, if applicable.

ii. A description of the unauthorized persons known or reasonably believed to have improperly used or disclosed Contract Data, or to have been responsible for the Security Incident.

iii. A description of where the Contract Data is believed to have been improperly transmitted, sent, or utilized, if applicable.

iv. A description of the probable causes of the Security Incident and, in the final report, the root cause.

v. A description of the proposed plan for preventing similar future Security Incidents, including a recommended risk remediation plan.

vi. A description of the corrective actions taken, including repair (elimination of a defect or incident and/or restoration of system functionality requirements according to the Contract) and resolution (a temporary workaround to enable system function).

vii. Whether the Contractor believes any federal or state laws requiring notifications to individuals are triggered.

The Contractor must comply with all applicable laws that require the notification of individuals, or with other reasonable direction of the State for notification, in the event of a Security Incident involving personally identifiable information, or any other event requiring such notification. The State may, in its

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 9 of 14 sole discretion, choose to provide notice to any or all parties affected by a Security Incident, but the Contractor shall reimburse the State for the cost of providing such notification. Contractor further agrees to provide, or to reimburse the State for its costs in providing, any credit monitoring or similar services that are necessary as a result of Contractor’s Security Incident. Under Ohio law, Contract Data is State property and any illegal activity involving State property is subject to a criminal investigation. The Contractor shall preserve sufficient evidence to ensure accurate Security Incident records, facilitate an investigation, and determine the extent of the Security Incident.

The Contractor shall work with the State to establish a Security Incident reporting communications procedure including Contractor and State contacts, communication methods and tools. If there is no procedure established, the Contractor must report Security Incidents to the primary contact listed in the Contract or that contact’s successor and the Contractor must report the Security Incident to the State via email at CSC@ohio.gov or call 877.644.6860.

The State reserves the right to conduct an independent investigation of the Security Incident, and the Contractor shall cooperate with the investigation. The independent investigation may be conducted by a State agency or a third party acting on behalf of the State.

7. Generative Artificial Intelligence

The Contractor must disclose the use of generative artificial intelligence (AI) to the State when producing work that will be owned by the State or the integration of generative AI in products or services used by the State. The Contractor must work with the State to ensure the use of generative AI is reviewed, approved, and complies with the State IT Policy IT-17, Use of Artificial Intelligence, prior to utilizing the generative AI components. The Contractor is not permitted to utilize Confidential Data in training generative AI models except as specifically approved by the State.

8. Contractor Access

When the Contractor accesses State network systems, data, and facilities, including remotely, the Contractor must maintain a robust security capability that incorporates generally recognized system hardening techniques. The Contractor must use appropriate measures to ensure that Contract Data is secure before transferring control of any systems or media on which Contract Data is stored. The method of securing the Contract Data must be in alignment with the required data classification. The Contractor may permit Contract Data to be loaded onto portable computing devices or portable storage components or media only if adequate security measures are in place to ensure the integrity and security of Contract Data and the Contract Data is encrypted. The transfer of any such system or media must be reasonably necessary for the performance of the Contractor’s obligations under the Contract.

The Contractor shall use multifactor authentication to limit access to systems that contain Confidential Data.

The Contractor must also maintain an accurate inventory of all such devices and the individuals to whom they are assigned. The Contractor must have reporting requirements for lost or stolen portable computing devices authorized for use with Contract Data and must report any loss or theft of such devices containing Contract Data to the State in writing as defined in Section 7.

9. Family Educational Rights and Privacy Act

When the Contractor is handling Contract Data that includes student information, the Contractor must comply with all applicable provisions of Ohio and federal laws regarding student information, including Parts B and C of the Individuals with Disabilities Education Act (20 U.S.C. 1400 and Title 34 of the Code of Federal Regulations Part 300, and 20 U.S.C. 1400 and Title 34 of the Code of Federal Regulations Part 303, respectively) and the Family Educational Rights and Privacy Act (20 U.S.C.

1232) (FERPA) or its State equivalent including any amendments or other relevant provisions of federal law as well as all requirements of Chapter 99 of Title 34 of the Code of Federal Regulations. Nothing in this Contract shall be construed to allow either party to maintain, use, disclose, or share student

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 10 of 14 information in a manner not allowed by either state or federal laws or regulations.

10. HIPAA Compliance

When the Contractor is handling Contract Data that includes health or medical data, the Contractor must comply with the data handling and privacy requirements of HIPAA and its associated regulations.

Additionally, some or all of the Contract Data may be client identifying information covered by 42 C.F.R.

Part 2. Contractor may only disclose such client identifying information back to the State and is bound in all respects by the regulations of 42 C.F.R. Part 2. If required, the Contractor must execute a business associate agreement with the State when handling protected health information.

11. Federal Tax Information

When the Contractor is handling Contract Data that includes Federal Tax Information (FTI), the Contractor must comply with the IRS Publication 1075 safeguards below.

All computer systems receiving, processing, storing, or transmitting FTI must meet the requirements defined in Internal Revenue Service (IRS) Publication 1075. The language in this Section may not be modified by Contractor and any proposed language changes listed in Contractor’s responses in this section will not be considered. For purposes of this section, “agency” means the applicable State entity.

A. Performance

In the performance of the Contract, the Contractor agrees to comply with and assume responsibility for compliance by officers or employees with the following requirements:

i. All work will be performed under the supervision of the contractor.

ii. The contractor and contractor’s officers or employees to be authorized access to FTI must meet background check requirements defined in IRS Publication 1075. The contractor will maintain a list of officers or employees authorized access to FTI. Such list will be provided to the agency and, upon request, to the IRS.

iii. FTI in hardcopy or electronic format shall be used only for the purpose of carrying out the provisions of this contract. FTI in any format shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Inspection or disclosure of FTI to anyone other than the contractor or the contractor’s officers or employees authorized is prohibited.

iv. FTI will be accounted for upon receipt and properly stored before, during, and after processing. In addition, any related output and products require the same level of protection as required for the source material.

v. The contractor will certify that FTI processed during the performance of this contract will be completely purged from all physical and electronic data storage with no output to be retained by the contractor at the time the work is completed. If immediate purging of physical and electronic data storage is not possible, the contractor will certify that any FTI in physical or electronic storage will remain safeguarded to prevent unauthorized disclosures.

vi. Any spoilage or any intermediate hard copy printout that may result during the processing of FTI will be given to the agency. When this is not possible, the contractor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts and will provide the agency with a statement containing the date of destruction, description of material destroyed, and the destruction method.

vii. All computer systems receiving, processing, storing, or transmitting FTI must meet the requirements in IRS Publication 1075. To meet functional and assurance requirements, the security features of the environment must provide for the managerial, operational, and technical controls. All security features must be available and activated to protect against unauthorized use of and access to FTI.

viii. No work involving FTI furnished under this contract will be subcontracted without the prior written approval of the IRS.

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 11 of 14

ix. Contractor will ensure that the terms of FTI safeguards described herein are included, without modification, in any approved subcontract for work involving FTI.

x. To the extent the terms, provisions, duties, requirements, and obligations of this contract apply to performing services with FTI, the contractor shall assume toward the subcontractor all obligations, duties and responsibilities that the agency under this contract assumes toward the contractor, and the subcontractor shall assume toward the contractor all the same obligations, duties and responsibilities which the contractor assumes toward the agency under this contract.

xi. In addition to the subcontractor’s obligations and duties under an approved subcontract, the terms and conditions of this contract apply to the subcontractor, and the subcontractor is bound and obligated to the contractor hereunder by the same terms and conditions by which the contractor is bound and obligated to the agency under this contract.

xii. For purposes of this contract, the term “contractor” includes any officer or employee of the contractor with access to or who uses FTI, and the term “subcontractor” includes any officer or employee of the subcontractor with access to or who uses FTI.

xiii. The agency will have the right to void the contract if the contractor fails to meet the terms of FTI safeguards described herein.

B. IRS 1075 Criminal/Civil Sanctions

i. Each officer or employee of a contractor to whom FTI is or may be disclosed shall be notified in writing that FTI disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any FTI for a purpose not authorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as 5 years, or both, together with the costs of prosecution.

ii. Each officer or employee of a contractor to whom FTI is or may be accessible shall be notified in writing that FTI accessible to such officer or employee may be accessed only for a purpose and to the extent authorized herein, and that access/inspection of FTI without an official need-to-know for a purpose not authorized herein constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000 or imprisonment for as long as 1 year, or both, together with the costs of prosecution.

iii. Each officer or employee of a contractor to whom FTI is or may be disclosed shall be notified in writing that any such unauthorized access, inspection or disclosure of FTI may also result in an award of civil damages against the officer or employee in an amount equal to the sum of the greater of $1,000 for each unauthorized access, inspection, or disclosure, or the sum of actual damages sustained as a result of such unauthorized access, inspection, or disclosure, plus in the case of a willful unauthorized access, inspection, or disclosure or an unauthorized access/inspection or disclosure which is the result of gross negligence, punitive damages, plus the cost of the action. These penalties are prescribed by IRC sections 7213, 7213A and 7431 and set forth at 26 CFR 301.6103(n)-1.

iv. Additionally, it is incumbent upon the contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a.

Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to contractors by 5 U.S.C.

552a(m)(1), provides that any officer or employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is so prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000.

v. Granting a contractor access to FTI must be preceded by certifying that each officer or employee understands the agency’s security policy and procedures for safeguarding FTI. A contractor and each officer or employee must maintain their authorization to access FTI through annual recertification of their understanding of the agency’s security policy and procedures for safeguarding FTI. The initial certification and recertifications must be documented and placed in the agency's files for review. As part of the certification and at

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 12 of 14 least annually afterwards, a contractor and each officer or employee must be advised of the provisions of IRC sections 7213, 7213A, and 7431 (see Exhibit 4, Sanctions for Unauthorized Disclosure, and Exhibit 5, Civil Damages for Unauthorized Disclosure). The training on the agency’s security policy and procedures provided before the initial certification and annually thereafter must also cover the incident response policy and procedure for reporting unauthorized disclosures and data breaches. (See Section 10) For the initial certification and the annual recertifications, the contractor and each officer or employee must sign, either with ink or electronic signature, a confidentiality statement certifying their understanding of the security requirements.

C. Inspection

The IRS and the Agency, with 24-hour notice, shall have the right to send its inspectors into the offices and plants of the contractor to inspect facilities and operations performing any work with FTI under this contract for compliance with requirements defined in IRS Publication 1075. The IRS’ right of inspection shall include the use of manual and/or automated scanning tools to perform compliance and vulnerability assessments of information technology (IT) assets that access, store, process or transmit FTI. Based on the inspection, corrective actions may be required in cases where the contractor is found to be noncompliant with FTI safeguard requirements.

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 13 of 14

This Renewal shall become effective as of the date of the State’s signature and shall remain in full force and effect for the term of the Contract. Except as modified by this Renewal, all other terms, conditions and pricing of the Contract shall remain the same and in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Renewal as of the dates appearing below.

JADETRACK LLC STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

By: By:

Name: David Lim Name: Kathleen C. Madden

Title: Senior Director, Commercial Energy Services Title: Director

Date: Date:

JadeTrack LLC 0A1246, Amendment 2 and Renewal Page 14 of 14

SUMMARY OF AMENDMENTS

Amendment Number

Effective Date Description

2 Pending

Contract renewal and revision to add the following sections: Audits, Changes, Independent Contractor Acknowledgment, OhioBuys, Drug Free Workplace, Prohibition of The Expenditure of Public Funds For Offshore Services, and Data Security and Privacy Terms Services.

1 2-8-19 To stricken language in cost summary to allow for annual payments at the beginning of the service period.