36C10D23Q0092.docx

36C10D23Q0092

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY

CODE

10. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

UEI:

EFT:

PHONE:

FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only) 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. NOV 2021)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

VA

3223-000015 3223-000016 36C10D23Q0092 09-19-2023 Tina Angela Brooks 202-461-9098 09-25-2023 09:00

EDT

00101 Department of Veterans Affairs Veterans Benefits Administration Acquisition Directorate 1800 G Street NW Washington

DC

20006 X X Y 624310 $15 Million N/A X 00322 Department of Veterans Affairs Veterans Benefits Administration VRE Montgomery Regional Office (322) 345 Perry Hill Road Montgomery

AL

36109 00101 Department of Veterans Affairs Veterans Benefits Administration Acquisition Directorate 1800 G Street NW Washington

DC

20006

All invoices must be e-mailed to:

jamie.wilder@va.gov tina.brooks@va.gov

See CONTINUATION Page

- SDVOSB set-aside Solicitation: Discrete Services in accordance with B.2 Performance Work Statement (PWS).

- Complete all applicable sections of this solicitation, sign, and email to: tina.brooks@va.gov by due date and time in Block 8 above.

- Purchase order will be awarded to a vendor with active registrations and certificates in SAM.gov, veterans.certify.

sba.gov as well as accurate and current vendorization information with the Financial Service Center (FSC).

- Quotes will be evaluated in accordance with FAR 13.106-2 Evaluation of quotations or offers. Best Value.

* NOTE: In addition to quote with supporting documentation.

This completed form in its entirety must be signed and emailed to: tina.brooks@va.gov Questions due by: 09/20/2023; no response after this date.

*Please provide you best and final quote with discounts.

$0.00 See CONTINUATION Page See Price/Cost Schedule Obligation number:

Obligation amount:

X X Tina Angela Brooks

VA-VBA-2019-D88CC7C8

Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

1. Contract Administration: All contract administration matters will be handled by the following individuals:

a. CONTRACTOR:

b. GOVERNMENT: Contracting Officer 36C10E Tina Angela Brooks Department of Veterans Affairs Veterans Benefits Administration Acquisition Directorate 1800 G Street NW Washington DC 20006

2. CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with:

3. INVOICES: Invoices shall be submitted in arrears:

4. GOVERNMENT INVOICE ADDRESS: All Invoices from the contractor shall be submitted electronically in accordance with VAAR Clause 852.232-72 Electronic Submission of Payment Requests.

jamie.wilder@va.gov tina.brooks@va.gov ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

B.2 PERFORMANCE WORK STATEMENT

VOCATIONAL REHABILITATION AND EMPLOYMENT DISCRETE SERVICES

1.0 BACKGROUND

The Department of Veterans Affairs (VA) has authority, pursuant to Title 38 USC Chapters 18, 31, 35 and 36, to provide all services and assistance necessary to enable eligible Veterans with service-connected disabilities to obtain and maintain suitable employment and, if not employable, achieve independence in daily living to the maximum extent feasible. To accomplish this responsibility, the Vocational Rehabilitation and Employment Service Division (VR&E) within each Veterans Benefit Administration (VBA) Regional Office’s (RO) jurisdiction undertakes an initial evaluation of the Servicemember/Veteran to determine his or her entitlement for these services and assist and develops, in cooperation with the Servicemember/Veteran, an Individualized Written Plan of Services. Rehabilitation plans include: an Individualized Written Rehabilitation Plan (IWRP) that outlines training and job placement services needed to achieve employment goals; an employment placement under an Individualized Employment Assistance Plan (IEAP); an Individualized Extended Evaluation Plan (IEEP) to determine feasibility for employment; or if employment is not possible, services to enhance the Veteran’s independence in daily living under an Individualized Independent Living Plan (IILP).

The VA is charged with providing assistance to Veterans with service-connected disabilities through VR&E services. In order to assure services in close geographic proximity to Veterans and to provide timely services when staff turnover occurs, Contractor assistance may be required to supplement VR&E services. Specialized services may also be required to complement services typically provided by VBA Staff.

In order to provide these services, VR&E requires Contractor assistance in the following areas: Comprehensive Independent living Assessment and Job Site Analysis. The objective of the contract is to assist Servicemember/Veterans to obtain and maintain suitable employment and to live as independently as possible in their homes and communities.

Department of Veterans Affairs, Veterans Benefits Administration (VBA), is conducting a national program for Vocational Rehabilitation and Employment Services (VR&E). Under the terms of any contract awarded as a result of this solicitation, an authorized VR&E official will be responsible for: (1) Approval of a rehabilitation plan and; (2) Approval or authorization of any specific expenditure or benefit to, or on behalf of, the Veteran whose case is referred to the Contractor. It is understood that no obligation will be incurred under this contract by the Government for any services or benefit to, or on behalf of, a Veteran without prior authorization issued by the designated VR&E official.

2.0 PERIOD OF PERFORMANCE

The period of performance (POP) for any resultant contract shall be 12 months from date of award, with four (4) 12 month option periods. The exercising of any option periods is at the sole discretion of the Government.

All task orders issued in accordance with this contract will be issued by a Contracting Officer (CO). Referrals issued under the task order(s) will be issued by delegated staff members within the VR&E Division, to meet the Montgomery, AL Regional Office’s anticipated needs.

3.0 GEOGRAPHICAL SERVICE AREAS FOR COUNSELING SERVICES

Requests for counseling services shall be referred by VBA to Contractors from among those Veterans living in the Montgomery Regional Office jurisdiction.

Contractors must be available to provide services within major population areas no more than fifty (50) miles in major metropolitan areas, and 100 miles in rural areas, from the Veteran’s residence for at least 90% of all referrals made under this solicitation. Travel Cost outside the aforementioned parameters shall not be included in the vendors proposed price for any of the services provided. The VR&E Officer or designee shall authorize all vendor travel, in writing, prior to the start of the travel. Travel and per diem shall be separately reimbursed in accordance with VA/Federal Travel Regulations. The current GSA reimbursement rate for privately owned vehicles will prevail. http://www.gsa.gov/. VA may authorize at time of referral for specialized cases, such as independent living cases requiring the vendor to meet with the Veteran at his or her home.

If the Contractor has more than one business location, the Veteran shall be scheduled by the Contractor to appear for counseling services at the location closest to the Veteran’s residence. Case management services shall be provided at the school facility if the Veteran is enrolled in a training program, based on availability of private meeting space and based on Veteran preference for meeting place.

4.0 QUALIFICATION REQUIREMENTS FOR COUNSELORS

Contract Counselors, in the performance of services under this contract, shall use standard counseling principles and procedures generally recognized within the counseling profession by the Commission on Rehabilitation Counselor Certification at http://www.crccertification.com.

Each Contract Counselor recommended to perform counseling services under this contract must be approved by the VR&E Officer prior to the provision of any services under this contract. Contract Counselors must possess a minimum of a Master’s Degree in Rehabilitation Counseling, Counseling Psychology, Counselor Education, or a closely related counseling discipline, from an accredited college or university. Contractor shall submit, to VA, curriculum vitae, résumé, or a verifiable form of documentation for each Contract Counselor proposed under this solicitation and for any proposed Counselor during the life of this contract. Résumés are also required for Contractor personnel performing Employment Services, demonstrating a minimum of two years job placement experience. Only those individual Contract counselors, case managers, and project staff that meet the minimum qualifications of the contract, and have been approved by the VR&E Officer, shall perform services on this contract.

The Government reserves the right to examine, and approve or disapprove the Contractor’s staff based on information provided in credentials and/or résumés. The COR will notify the Contractor of acceptance of newly proposed employees within 10 days of receipt of credentials, diplomas, and résumés.

The Contractor shall require its Counselor(s) to attend free training sessions given by the VA. Contractors are responsible for the transportation/per diem cost of attendance by the Counselor(s) attending these training sessions at the local VA Regional Office, not to exceed 24 total hours. The Contractor shall be responsible for providing Counselor(s) with at least two additional relevant professional training courses per year in the field of counseling and rehabilitation. VA or other organizations, such as colleges or professional associations, generally recognized as providing such training, shall sponsor the courses. This training is required for continued performance under the contract by any Contract Counselor. The Contractor shall report annually to VA the names of courses taken, date of any course, and the provider of said course for each Contract Counselor proposed to work, or working under this contract.

5.0 SCOPE/PERFORMANCE REQUIREMENTS

The Department of Veterans Affairs intends to procure contract support for Vocational Rehabilitation and Employment (VR&E) Services. The Government’s objective for this contract is to both supplement and complement the services provided to Veterans and service members under Title 38 United States Code Chapter 31 and individuals under Title 38 United States Code Chapters 18, 35, and 36 by VA’s regional Vocational Rehabilitation and Employment Service (VR&E) offices within VBA.

5.1 DISCRETE SERVICES

Discrete Services – As requested, the Contractor shall provide Discrete Services. This includes specific or unique services necessary to develop the information essential to outlining a service plan.

Additional Discrete Services - The Contractor may be requested to submit pricing for additional Discrete Services. This includes other discrete services considered essential to the rehabilitation process. Authorization for these services may be made by VR&E on the basis of information from the Veteran, Contractor or other service provider, but services cannot be initiated without approval by the Contracting Officer’s Representative (COR). A Contractor may only provide these services if its staff has the requisite skills and/or licensure. Contractors may submit quotes for additional related areas of services for consideration by the Contracting Officer. If other services are requested by the COR /VR&E Officer, the Contractor shall provide a quote for such services to the COR/VR&E Officer. Following negotiations, the Contracting Officer will issue a modification to the contract to include these services. Additional discrete services MAY NOT be provided unless the Contracting Officer has issued a contract modification. Contractors will bear the cost for materials such as career guides, workbooks or handbooks provided to the Veteran during any part of the rehabilitation process during which the case is assigned to Contractor.

Services to be performed under the terms and conditions of this contract are restricted to the major rehabilitation track for those Veterans whose primary rehabilitative objectives include: (1) training and/or employment services resulting in employment suitable to the individual’s aptitudes, abilities, and interests; or (2) achievement of independence in daily living.

Rehabilitation Objectives:

The rehabilitation objective for a Veteran in an employment or training track is successful placement in suitable competitive employment, or completion of work experience or training or instruction of a vocationally significant nature to assist the Veteran to achieve such employment. Emphasis shall be placed upon assistance designed to assure that the Veteran obtains suitable employment.

The rehabilitation objective for a Veteran for whom the achievement of a vocational goal has been determined to be infeasible is: (1) to enable the Veteran to achieve independence in daily living; or (2) to reduce the level of assistance required from others. The Contractor, in the case of an individual found by the VA to qualify for a program of independent living service, shall assess and recommend all services and assistance necessary to enable the Veteran to achieve maximum independence in daily living.

5.2 PERFORMANCE REQUIREMENTS/GOALS

DESCRIPTION

Discrete Services for the purpose of this request includes comprehensive independent living (IL) assessments and job site analysis. For the independent living assessments, a locally licensed occupational therapist (OT) or Certified Rehabilitation Counselor will be required. Contractor personnel and/or IL specialists may need to travel to remote locations. Due to the scope of these individualized services, VA may authorize travel expenses. In all cases, pre-approval of travel costs is required by the VA.

The following Discrete Services may be ordered on an as needed basis:

Comprehensive Independent Living Assessment: This flat-rate package is for an in-home assessment of an individual's ability to care for oneself on a daily basis and live independently at home and in the community. The initial appointment will take place within 10 calendar days of referral and the final report will be submitted within 30 days of referral. The report will correspond with requirements in M28C. The average number of hours to complete an Independent Living assessment is four (4) hours.

Job Site Analysis: The Contractor shall provide, as a flat rate package, observation of job at site and description of job tasks and associated knowledge, skills, abilities, physical demand, and other characteristics required to perform those tasks. The average number of hours to complete a Job Site Analysis is four (4) hours.

6.0 SPECIFIC TASKS AND DELIVERABLES

The Contractor shall perform the following:

A. Comprehensive Independent Living Assessment B. Job Site Analysis

For each of the two (2) discrete services above, VBA will provide case-related information as needed from the Veteran’s record to the Contractor.

6.1 TASK 1 – QUALITY ASSURANCE PLAN

The Contractor shall submit with their quote a Quality Assurance Plan (QAP) that will cover Comprehensive Independent Living Assessment and Job Site analysis to be provided. The Contractor’s QAP will describe the Contractor’s Quality Assurance (QA) capability and how they will assess all aspects of the Contractor’s business and, vocational and counseling operations, to ensure that the performance standards stated in the contract are met.

Deliverable:

6.1 Quality Assurance Plan

6.2 TASK 2 - PERSONNEL STAFFING PLAN

In view of the need for the Contractor to deliver the quality and consistency expected under this contract and to minimize staff turnover, the Contractor needs to be able to identify, recruit, hire, and retain competent, capable staff during the course of the contract period of performance. The Contractor shall outline as part of the quote how the Contractor will identify, recruit, hire, and retain competent, capable staff, and to minimize disruption to the contract due to turnover of staff. The Personnel Staffing Plan will outline the staffing structure and how fully mission capable staff will be provided within fifteen (15) calendar days of contract award.

Deliverable:

6.2 Personnel Staffing Plan

6.3 TASK 3 – PROFESSIONAL COMPENSATION PLAN

As part of their quote, offerors will submit a total compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract. The Government will evaluate the plan to assure that it reflects a sound management approach and understanding of the contract requirements. This evaluation will include an assessment of the offeror’s ability to provide uninterrupted high-quality work. The professional compensation proposed will be considered in terms of its impact upon recruiting and retention, its realism, and its consistency with a total plan for compensation. Supporting information will include data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used in establishing the total compensation structure.

The compensation levels proposed should reflect a clear understanding of work to be performed and should indicate the capability of the proposed compensation structure to obtain and keep suitably qualified personnel to meet mission objectives. The salary rates or ranges must take into account differences in skills, the complexity of various disciplines, and professional job difficulty. Additionally, quotes envisioning compensation levels lower than those of predecessor contractors for the same work will be evaluated on the basis of maintaining program continuity, uninterrupted high-quality work, and availability of required competent professional service employees. Offerors are cautioned that lowered compensation for essentially the same professional work may indicate lack of sound management judgment and lack of understanding of the requirement.

The Government is concerned with the quality and stability of the work force to be employed on this contract. Professional compensation that is unrealistically low or not in reasonable relationship to the various job categories, since it may impair the Contractor’s ability to attract and retain competent professional service employees, may be viewed as evidence of failure to comprehend the complexity of the contract requirements.

Failure to comply with this requirement may render your quote ineligible for award.

Deliverable:

6.3 Professional Compensation Plan

7.0 PAYMENT

All flat rate Independent Living Assessments and Job Site Analyses are payable if complete services are delivered within performance standards. All payments shall be contingent upon meeting the performance standards identified herein.

8.0 REPORTS

Reports for flat rate services are due within 30 days of referral.

MARCH 12, 2010 VA HANDBOOK 6500.6

APPENDIX B

The contractor, their personnel, and their subcontractors shall be subject to the Federal laws, regulations, standards, and VA Directives and Handbooks regarding information and information system security as delineated in this contract.

APPENDIX C

1. GENERAL

Contractors, contractor personnel, subcontractors, and subcontractor personnel shall be subject to the same Federal laws, regulations, standards, and VA Directives and Handbooks as VA and VA personnel regarding information and information system security.

2. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

a. A contractor/subcontrator shall request logical (technical) or physical access to VA information and VA information systems for their employees, subcontractors, and affiliates only to the extent necessary to perform the services specified in the contract, agreement, or task order.

b. All contractors, subcontractors, and third-party servicers and associates working with VA information are subject to the same investigative requirements as those of VA appointees or employees who have access to the same types of information. The level and process of background security investigations for contractors must be in accordance with VA Directive and Handbook 0710, Personnel Suitability and Security Program. The Office for Operations, Security, and Preparedness is responsible for these policies and procedures.

c. Contract personnel who require access to national security programs must have a valid security clearance. National Industrial Security Program (NISP) was established by Executive Order 12829 to ensure that cleared U.S. defense industry contract personnel safeguard the classified information in their possession while performing work on contracts, programs, bids, or research and development efforts. The Department of Veterans Affairs does not have a Memorandum of Agreement with Defense Security Service (DSS). Verification of a Security Clearance must be processed through the Special Security Officer located in the Planning and National Security Service within the Office of Operations, Security, and Preparedness.

d. Custom software development and outsourced operations must be located in the U.S. to the maximum extent practical. If such services are proposed to be performed abroad and are not disallowed by other VA policy or mandates, the contractor/subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor.

e. The contractor or subcontractor must notify the Contracting Officer immediately when an employee working on a VA system or with access to VA information is reassigned or leaves the contractor or subcontractor’s employ. The Contracting Officer must also be notified immediately by the contractor or subcontractor prior to an unfriendly termination.

3. VA INFORMATION CUSTODIAL LANGUAGE

a. Information made available to the contractor or subcontractor by VA for the performance or administration of this contract or information developed by the contractor/subcontractor in performance or administration of the contract shall be used only for those purposes and shall not be used in any other way without the prior written agreement of the VA. This clause expressly limits the contractor/subcontractor's rights to use data as described in Rights in Data - General, FAR 52.227-14(d) (1).

b. VA information should not be co-mingled, if possible, with any other data on the contractors/subcontractor’s information systems or media storage systems in order to ensure VA requirements related to data protection and media sanitization can be met. If co-mingling must be allowed to meet the requirements of the business need, the contractor must ensure that VA’s information is returned to the VA or destroyed in accordance with VA’s sanitization requirements. VA reserves the right to conduct on site inspections of contractor and subcontractor IT resources to ensure data security controls, separation of data and job duties, and destruction/media sanitization procedures are in compliance with VA directive requirements.

c. Prior to termination or completion of this contract, contractor/subcontractor must not destroy information received from VA, or gathered/created by the contractor in the course of performing this contract without prior written approval by the VA. Any data destruction done on behalf of VA by a contractor/subcontractor must be done in accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management and its Handbook 6300.1 Records Management Procedures, applicable VA Records Control Schedules, and VA Handbook 6500.1, Electronic Media Sanitization. Self-certification by the contractor that the data destruction requirements above have been met must be sent to the VA Contracting Officer within 30 days of termination of the contract.

d. The contractor/subcontractor must receive, gather, store, back up, maintain, use, disclose and dispose of VA information only in compliance with the terms of the contract and applicable Federal and VA information confidentiality and security laws, regulations and policies. If Federal or VA information confidentiality and security laws, regulations and policies become applicable to the VA information or information systems after execution of the contract, or if NIST issues or updates applicable FIPS or Special Publications (SP) after execution of this contract, the parties agree to negotiate in good faith to implement the information confidentiality and security laws, regulations and policies in this contract.

e. The contractor/subcontractor shall not make copies of VA information except as authorized and necessary to perform the terms of the agreement or to preserve electronic information stored on contractor/subcontractor electronic storage media for restoration in case any electronic equipment or data used by the contractor/subcontractor needs to be restored to an operating state. If copies are made for restoration purposes, after the restoration is complete, the copies must be appropriately destroyed.

f. If VA determines that the contractor has violated any of the information confidentiality, privacy, and security provisions of the contract, it shall be sufficient grounds for VA to withhold payment to the contractor or third party or terminate the contract for default or terminate for cause under Federal Acquisition Regulation (FAR) part 12.

g. If a VHA contract is terminated for cause, the associated BAA must also be terminated and appropriate actions taken in accordance with VHA Handbook 1600.01, Business Associate Agreements. Absent an agreement to use or disclose protected health information, there is no business associate relationship.

h. The contractor/subcontractor must store, transport, or transmit VA sensitive information in an encrypted form, using VA-approved encryption tools that are, at a minimum, FIPS 140-2 validated.

i. The contractor/subcontractor’s firewall and Web services security controls, if applicable, shall meet or exceed VA’s minimum requirements. VA Configuration Guidelines are available upon request.

j. Except for uses and disclosures of VA information authorized by this contract for performance of the contract, the contractor/subcontractor may use and disclose VA information only in two other situations: (i) in response to a qualifying order of a court of competent jurisdiction, or (ii) with VA’s prior written approval. The contractor/subcontractor must refer all requests for, demands for production of, or inquiries about, VA information and information systems to the VA contracting officer for response.

k. Notwithstanding the provision above, the contractor/subcontractor shall not release VA records protected by Title 38 U.S.C. 5705, confidentiality of medical quality assurance records and/or Title 38 U.S.C. 7332, confidentiality of certain health records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse, or infection with human immunodeficiency virus. If the contractor/subcontractor is in receipt of a court order or other requests for the above mentioned information, that contractor/subcontractor shall immediately refer such court orders or other requests to the VA contracting officer for response.

l. For service that involves the storage, generating, transmitting, or exchanging of VA sensitive information but does not require C&A or an MOU-ISA for system interconnection, the contractor/subcontractor must complete a Contractor Security Control Assessment (CSCA) on a yearly basis and provide it to the COTR.

4. INFORMATION SYSTEM DESIGN AND DEVELOPMENT

a. Information systems that are designed or developed for or on behalf of VA at non-VA facilities shall comply with all VA directives developed in accordance with FISMA, HIPAA, NIST, and related VA security and privacy control requirements for Federal information systems. This includes standards for the protection of electronic PHI, outlined in 45 C.F.R. Part 164, Subpart C, information and system security categorization level designations in accordance with FIPS 199 and FIPS 200 with implementation of all baseline security controls commensurate with the FIPS 199 system security categorization (reference Appendix D of VA Handbook 6500, VA Information Security Program). During the development cycle a Privacy Impact Assessment (PIA) must be completed, provided to the COTR, and approved by the VA Privacy Service in accordance with Directive 6507, VA Privacy Impact Assessment.

b. The contractor/subcontractor shall certify to the COTR that applications are fully functional and operate correctly as intended on systems using the VA Federal Desktop Core Configuration (FDCC), and the common security configuration guidelines provided by NIST or the VA. This includes Internet Explorer 7 configured to operate on Windows XP and Vista (in Protected Mode on Vista) and future versions, as required.

c. The standard installation, operation, maintenance, updating, and patching of software shall not alter the configuration settings from the VA approved and FDCC configuration.

Information technology staff must also use the Windows Installer Service for installation to the default “program files” directory and silently install and uninstall.

d. Applications designed for normal end users shall run in the standard user context without elevated system administration privileges.

e. The security controls must be designed, developed, approved by VA, and implemented in accordance with the provisions of VA security system development life cycle as outlined in NIST Special Publication 800-37, Guide for Applying the Risk Management Framework to Federal Information Systems, VA Handbook 6500, Information Security Program and VA Handbook 6500.5, Incorporating Security and Privacy in System Development Lifecycle.

f. The contractor/subcontractor is required to design, develop, or operate a System of Records Notice (SOR) on individuals to accomplish an agency function subject to the Privacy Act of 1974, (as amended), Public Law 93-579, December 31, 1974 (5 U.S.C. 552a) and applicable agency regulations. Violation of the Privacy Act may involve the imposition of criminal and civil penalties.

g. The contractor/subcontractor agrees to:

(1) Comply with the Privacy Act of 1974 (the Act) and the agency rules and regulations issued under the Act in the design, development, or operation of any system of records on individuals to accomplish an agency function when the contract specifically identifies:

(a) The Systems of Records (SOR); and

(b) The design, development, or operation work that the contractor/subcontractor is to perform;

(2) Include the Privacy Act notification contained in this contract in every solicitation and resulting subcontract and in every subcontract awarded without a solicitation, when the work statement in the proposed subcontract requires the redesign, development, or operation of a SOR on individuals that is subject to the Privacy Act; and

(3) Include this Privacy Act clause, including this subparagraph (3), in all subcontracts awarded under this contract which requires the design, development, or operation of such a SOR.

h. In the event of violations of the Act, a civil action may be brought against the agency involved when the violation concerns the design, development, or operation of a SOR on individuals to accomplish an agency function, and criminal penalties may be imposed upon the officers or employees of the agency when the violation concerns the operation of a SOR on individuals to accomplish an agency function. For purposes of the Act, when the contract is for the operation of a SOR on individuals to accomplish an agency function, the contractor/subcontractor is considered to be an employee of the agency.

(1) “Operation of a System of Records” means performance of any of the activities associated with maintaining the SOR, including the collection, use, maintenance, and dissemination of records.

(2) “Record” means any item, collection, or grouping of information about an individual that is maintained by an agency, including, but not limited to, education, financial transactions, medical history, and criminal or employment history and contains the person’s name, or identifying number, symbol, or any other identifying particular assigned to the individual, such as a fingerprint or voiceprint, or a photograph.

(3) “System of Records” means a group of any records under the control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual.

i. The vendor shall ensure the security of all procured or developed systems and technologies, including their subcomponents (hereinafter referred to as “Systems”), throughout the life of this contract and any extension, warranty, or maintenance periods. This includes, but is not limited to workarounds, patches, hotfixes, upgrades, and any physical components (hereafter referred to as Security Fixes) which may be necessary to fix all security vulnerabilities published or known to the vendor anywhere in the Systems, including Operating Systems and firmware. The vendor shall ensure that Security Fixes shall not negatively impact the Systems.

j. The vendor shall notify VA within 24 hours of the discovery or disclosure of successful exploits of the vulnerability which can compromise the security of the Systems (including the confidentiality or integrity of its data and operations, or the availability of the system). Such issues shall be remediated as quickly as is practical, but in no event longer than 5 business days.

k. When the Security Fixes involve installing third party patches (such as Microsoft OS patches or Adobe Acrobat), the vendor will provide written notice to the VA that the patch has been validated as not affecting the Systems within 10 working days. When the vendor is responsible for operations or maintenance of the Systems, they shall apply the Security Fixes within 5 working days.

l. All other vulnerabilities shall be remediated as specified in this paragraph in a timely manner based on risk, but within 60 days of discovery or disclosure. Exceptions to this paragraph (e.g. for the convenience of VA) shall only be granted with approval of the contracting officer and the VA Assistant Secretary for Office of Information and Technology.

5. INFORMATION SYSTEM HOSTING, OPERATION, MAINTENANCE, OR USE

a. For information systems that are hosted, operated, maintained, or used on behalf of VA at non-VA facilities, contractors/subcontractors are fully responsible and accountable for ensuring compliance with all HIPAA, Privacy Act, FISMA, NIST, FIPS, and VA security and privacy directives and handbooks. This includes conducting compliant risk assessments, routine vulnerablity scanning, system patching and change management procedures, and the completion of an acceptable contingency plan for each system. The contractor’s security control procedures must be equivalent, to those procedures used to secure VA systems. A Privacy Impact Assessment (PIA) must also be provided to the COTR and approved by VA Privacy Service prior to operational approval. All external Internet connections to VA’s network involving VA information must be reviewed and approved by VA prior to implementation.

b. Adequate security controls for collecting, processing, transmitting, and storing of Personally Identifiable Information (PII), as determined by the VA Privacy Service, must be in place, tested, and approved by VA prior to hosting, operation, maintenance, or use of the information system, or systems by or on behalf of VA. These security controls are to be assessed and stated within the PIA and if these controls are determined not to be in place, or inadequate, a Plan of Action and Milestones (POA&M) must be submitted and approved prior to the collection of PII.

c. Outsourcing (contractor facility, contractor equipment or contractor staff) of systems or network operations, telecommunications services, or other managed services requires certification and accreditation (authorization) (C&A) of the contractor’s systems in accordance with VA Handbook 6500.3, Certification and Accreditation and/or the VA OCS Certification Program Office. Government-owned (government facility or government equipment) contractor-operated systems, third party or business partner networks require memorandums of understanding and interconnection agreements (MOU-ISA) which detail what data types are shared, who has access, and the appropriate level of security controls for all systems connected to VA networks.

d. The contractor/subcontractor’s system must adhere to all FISMA, FIPS, and NIST standards related to the annual FISMA security controls assessment and review and update the PIA. Any deficiencies noted during this assessment must be provided to the VA contracting officer and the ISO for entry into VA’s POA&M management process. The contractor/subcontractor must use VA’s POA&M process to document planned remedial actions to address any deficiencies in information security policies, procedures, and practices, and the completion of those activities. Security deficiencies must be corrected within the timeframes approved by the government. Contractor/subcontractor procedures are subject to periodic, unannounced assessments by VA officials, including the VA Office of Inspector General. The physical security aspects associated with contractor/subcontractor activities must also be subject to such assessments. If major changes to the system occur that may affect the privacy or security of the data or the system, the C&A of the system may need to be reviewed, retested and re-authorized per VA Handbook 6500.3. This may require reviewing and updating all of the documentation (PIA, System Security Plan, Contingency Plan). The Certification Program Office can provide guidance on whether a new C&A would be necessary.

e. The contractor/subcontractor must conduct an annual self assessment on all systems and outsourced services as required. Both hard copy and electronic copies of the assessment must be provided to the COTR. The government reserves the right to conduct such an assessment using government personnel or another contractor/subcontractor. The contractor/subcontractor must take appropriate and timely action (this can be specified in the contract) to correct or mitigate any weaknesses discovered during such testing, generally at no additional cost.

f. VA prohibits the installation and use of personally-owned or contractor/subcontractorowned equipment or software on VA’s network. If non-VA owned equipment must be used to fulfill the requirements of a contract, it must be stated in the service agreement, SOW or contract. All of the security controls required for government furnished equipment (GFE) must be utilized in approved other equipment (OE) and must be funded by the owner of the equipment. All remote systems must be equipped with, and use, a VA-approved antivirus (AV) software and a personal (host-based or enclave based) firewall that is configured with a VA-approved configuration. Software must be kept current, including all critical updates and patches. Owners of approved OE are responsible for providing and maintaining the anti-viral software and the firewall on the non-VA owned OE.

g. All electronic storage media used on non-VA leased or non-VA owned IT equipment that is used to store, process, or access VA information must be handled in adherence with VA Handbook 6500.1, Electronic Media Sanitization upon: (i) completion or termination of the contract or (ii) disposal or return of the IT equipment by the contractor/subcontractor or any person acting on behalf of the contractor/subcontractor, whichever is earlier. Media (hard drives, optical disks, CDs, back-up tapes, etc.) used by the contractors/subcontractors that contain VA information must be returned to the VA for sanitization or destruction or the contractor/subcontractor must self-certify that the media has been disposed of per 6500.1 requirements. This must be completed within 30 days of termination of the contract.

h. Bio-Medical devices and other equipment or systems containing media (hard drives, optical disks, etc.) with VA sensitive information must not be returned to the vendor at the end of lease, for trade-in, or other purposes. The options are:

(1) Vendor must accept the system without the drive;

(2) VA’s initial medical device purchase includes a spare drive which must be installed in place of the original drive at time of turn-in; or

(3) VA must reimburse the company for media at a reasonable open market replacement cost at time of purchase.

(4) Due to the highly specialized and sometimes proprietary hardware and software associated with medical equipment/systems, if it is not possible for the VA to retain the hard drive, then;

(a) The equipment vendor must have an existing BAA if the device being traded in has sensitive information stored on it and hard drive(s) from the system are being returned physically intact; and

(b) Any fixed hard drive on the device must be non-destructively sanitized to the greatest extent possible without negatively impacting system operation. Selective clearing down to patient data folder level is recommended using VA approved and validated overwriting technologies/methods/tools. Applicable media sanitization specifications need to be preapproved and described in the purchase order or contract.

(c) A statement needs to be signed by the Director (System Owner) that states that the drive could not be removed and that (a) and (b) controls above are in place and completed. The ISO needs to maintain the documentation.

6. SECURITY INCIDENT INVESTIGATION

a. The term “security incident” means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures. The contractor/subcontractor shall immediately notify the COTR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/subcontractor has access.

b. To the extent known by the contractor/subcontractor, the contractor/subcontractor’s notice to VA shall identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the VA information or assets were placed at risk or compromised), and any other information that the contractor/subcontractor considers relevant.

c. With respect to unsecured protected health information, the business associate is deemed to have discovered a data breach when the business associate knew or should have known of a breach of such information. Upon discovery, the business associate must notify the covered entity of the breach. Notifications need to be made in accordance with the executed business associate agreement.

d. In instances of theft or break-in or other criminal activity, the contractor/subcontractor must concurrently report the incident to the appropriate law enforcement entity (or entities) of jurisdiction, including the VA OIG and Security and Law Enforcement. The contractor, its employees, and its subcontractors and their employees shall cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violation(s) associated with any incident. The contractor/subcontractor shall cooperate with VA in any civil litigation to recover VA information, obtain monetary or other compensation from a third party for damages arising from any incident, or obtain injunctive relief against any third party arising from, or related to, the incident.

7. LIQUIDATED DAMAGES FOR DATA BREACH

a. Consistent with the requirements of 38 U.S.C. §5725, a contract may require access to sensitive personal information. If so, the contractor is liable to VA for liquidated damages in the event of a data breach or privacy incident involving any SPI the contractor/subcontractor processes or maintains under this contract.

b. The contractor/subcontractor shall provide notice to VA of a “security incident” as set forth in the Security Incident Investigation section above. Upon such notification, VA must secure from a non-Department entity or the VA Office of Inspector General an independent risk analysis of the data breach to determine the level of risk associated with the data breach for the potential misuse of any sensitive personal information involved in the data breach. The term 'data breach' means the loss, theft, or other unauthorized access, or any access other than that incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. Contractor shall fully cooperate with the entity performing the risk analysis. Failure to cooperate may be deemed a material breach and grounds for contract termination.

c. Each risk analysis shall address all relevant information concerning the data breach, including the following:

(1) Nature of the event (loss, theft, unauthorized access);

(2) Description of the event, including:

(a) date of…