36C10E19Q0195-0007001.docx

STATEMENT OF WORK (SOW)

SHRED SERVICES

7/2/2019

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

SHRED SERVICES

1. GENERAL:

The Contractor shall provide all labor, materials, and equipment to furnish on-site shredding services of confidential paper documents at the Department of Veterans Affairs Regional Office, located at 9500 Bay Pines Blvd., St. Petersburg, FL 33744, in accordance with all terms, conditions, provisions, and the schedule of this solicitation.

2. GENERAL CONDITIONS:

All material shall be shredded before leaving the grounds of the Regional Office.

a. The required shredding method is to have all shred double shredded on-site to a degree that definitively ensures that they are not readable or reconstruct-able to any degree on location at the Regional Office, 9500 Bay Pines Blvd., St. Petersburg, FL 33744, and witnessed by the Records Management Officer (RMO).

b. The contractor is required to make bi-weekly pickups every other Friday unless a different pick-up day is arranged and agreed upon by the RMO. The timeframe for shredding service provided shall be between the hours of 8 – 10 am on Friday. Additional pickups may be scheduled by the RMO to meet mission demands as needed and should be included in the contractors bid. The RMO will provide a 48-hour notification on those special occasions. The RMO needs to be notified in advance if the truck is out of service or they cannot come for some other reason and the RMO will give the shred company the same notification if they are unavailable. A response time for service calls will be within 48 hours of notification.

c. Contractor shall provide 20 96 gal 2-wheeled containers that will have the ability to be dumped by the contractor.

d. Contractor shall only empty bins provided at loading dock by the specified time and will only be paid for bins emptied.

e. Shredding bins will be placed in the loading dock area. There is sufficient room in and around the loading dock for shredding trucks to gain access.

3. HOURS OF OPERATION:

Normal working hours are: 7:00 am – 3:30 pm, Monday through Friday, excluding Federal Holidays. The contractor shall coordinate services for alternate dates and times if the scheduled service cannot be met or falls on a holiday.

Federal Holidays observed by the VA Regional Offices are:

4. CONTRACTOR:

Contractor must use only bonded and insured individuals for the collection and destruction of the materials. Employees should dress in marked uniforms and nametags. Provide necessary equipment needed to shred all collected materials according to HIPAA regulations. Contractor shall provide a service delivery ticket (which should include quantity of shredding and dollar amount to be paid by the VA for said shredding services) printout immediately to the RMO representative upon completion of each services. The Contractor shall be responsible for protecting the personnel furnishing services under this contract. Vehicle used in the performance of this contract will be licensed, registered and insured.

VA Information and Information System Security/Privacy Requirements

General All Contractors and Contractor personnel shall be subject to the same Federal security and privacy laws, regulations, standards and VA policies as VA, including the Privacy Act, 5 U.S.C. §552a, and VA personnel, regarding information and information system security. Within five working day of award of the contract, the Contractors will furnish to the Contracting Officer the Name, Birth date, Social Security Number and Sex of all employees of that firm involved with this contract and their subcontractors for a background check. To accomplish the background check, the Contractor and employees shall complete VA Form 20-0344 ANNUAL CERTIFICATION OF VETERAN STATUS AND VETERAN-RELATIVES, and hard copies shall be signed and returned to the Contracting Officer no later than five working days after award.

Rules of Behavior - All contractor employees requiring access to VA information and VA information systems shall complete the following before being granted access to VA information and its systems. Sign and return to the COR a hard copy of understanding of and responsibilities for compliance with the Contractor Rules of Behavior, Appendix D (Technical Exhibit 2) relating to access to VA information and information systems.

VA Privacy - VA Privacy and Information Security and Rules of Behavior (10176) must be completed in VA Talent Management System (TMS) and certificates turned in to the COR prior to entering the building.

Information Security:

1. The Contractor will not attempt to override or disable security or management controls unless expressly permitted to do so as an explicit requirement under the contract or at the direction of the Information Security Officer (ISO).

2. The Contractor will complete VA Form 20-0344, Annual Certification of Veterans Status and Veteran-Relatives form upon starting and annually thereafter.

Records Management VA Handbook 6300.1 Chapter 4, para 2g. If VA records or information are to be turned over to, or collected, created, maintained, used, processed, or handled in any way by a contractor, Title 41, United States, Public Contracts and 36 CFR, chapter XII, subchapter B apply.

36 CFR Chap XII, Sub Chapter B (NARA 10-2-09) Sec 1222.32

1. Agencies must ensure that contractors performing Federal Government agency functions create and maintain records that document these activities. Agencies must specify in the contract Government ownership and the delivery to the Government of all records necessary for the adequate and proper documentation for contractor-operated agency activities and programs in accordance with requirements of the Federal Acquisition Regulations (FAR) (Office of Federal Procurement Policy Act of 1974 (Pub. L. 93-400), as amended by Pub. L. 96-83 41 U.S.C), and where applicable, the Defense Federal Acquisition Federal Acquisition Supplement (DFARS) (48 CFR parts 200-299).

2. All mandatory VA Acquisition Regulation (FAR) contracting, security, and privacy clauses must appear in the contracts let for the destruction of VA temporary records.

3. Contracts governing the final destruction of temporary paper records containing VA sensitive information must contain a clause providing for inspection, upon request, by a VA representative of the contractor’s facilities where the records are processed and final destruction takes place.

4. Records Management oversight of contract records is necessary to ensure that all recordkeeping needs are met. All records created for Government use and delivered to, or under legal control of, the Government must be managed in accordance with Federal Law. In addition, electronic records and background electronic data specified for delivery to the contracting agency must be accompanied by sufficient technical documentation to permit understanding and use of records and data.

5. Contracts that require the creation of data for the Government’s use must specify, in addition to the final product, delivery of background supporting data or other records that may have reuse value to the Government.

To determine what background supporting data or other records that contracts must deliver, program and contracting officials must consult with agency records and information managers and historians and, when appropriate, with other Government agencies to ensure that all Government needs are met, especially when the data deliverables support a new agency mission or a new Government program.

6. Deferred ordering and delivery-of-data clauses and rights-in-data clauses must be included in contracts whenever necessary to ensure adequate and proper documentation or because the data have reuse value to the Government.

7.0 VA Information and Information System Security /Privacy

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.

7.1 Access to VA information and VA information systems

A contractor/subcontractor 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.

All contractors, subcontractors, and third-party servicers and associates working with VA information is 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.

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.

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.

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 subcontractors employ. The Contracting Officer must also be notified immediately by the contractor or subcontractor prior to an unfriendly termination.

7.1a Department of Veterans Affairs VA Directive 6371 Washington, DC 20420 Transmittal Sheet April 8, 2014

DESTRUCTION OF TEMPORARY PAPER RECORDS

1. REASON FOR ISSUE: To revise policy requirements for the Department of Veterans Affairs (VA) on the destruction of temporary paper records, and temporary paper records that contain personally identifiable and sensitive information.

2. SUMMARY OF CONTENTS/MAJOR CHANGES: This revision is being implemented to increase the security and protection of personally identifiable information (PII), personal health information (PHI), and VA sensitive information contained in temporary records. Revisions include;

a. Revision of the definitions for interim and final destruction of temporary paper records; certification of destruction, clarification of circumstances requiring interim destruction of temporary paper records; elimination of the requirement that a contractor witnessing interim destruction provide a certification of destruction to the VA organization that created the temporary paper records; and

b. Elimination for the requirement that an information destruction contractor must comply with VA Directive 6327.

3. RESPONSIBLE OFFICE: The Office of Information and Technology (005), Office of Information Protection and Risk Management (005R), Office of Privacy and Records Management (005R1) is responsible for the material contained in this directive.

4. RELATED HANDBOOK: None

5. RESCISSION: VA Directive 6371, dated October 29, 2010.

CERTIFIED BY: BY DIRECTION OF THE SECRETARY OF VETERANS AFFAIRS

/s/ /s/ Stephen W. Warren Stephen W. Warren Executive in Charge and Executive in Charge and Chief Information Officer, Office of Chief Information Officer, Office of Information and Technology of Information and Technology Distribution: Electronic Only

7.2 VA Information Custodial Language

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).

VA information should not be co-mingled, if possible, with any other data on the contractors/subcontractors 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 VAs information is returned to the VA or destroyed in accordance with VAs 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.

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.

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.

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.

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.

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.

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

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:

* in response to a qualifying order of a court of competent jurisdiction, or

* with VAs 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.

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.

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 Contracting Officer Representative (COR).

7.3 Information System Hosting, Operation, Maintenance, or Use The following section addresses policy governing Information Systems, Operation, Maintenance or use of Information System Hosting.

7.3.1 Information Systems

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 vulnerability scanning, system patching and change management procedures, and the completion of an acceptable contingency plan for each system. The contractors 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 COR and approved by VA Privacy Service prior to operational approval. All external Internet connections to VAs network involving VA information must be reviewed and approved by VA prior to implementation.

7.3.2 Information System Security Controls

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.

7.3.3 Information System Outsourcing

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 contractors 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.

7.3.4 Information System Sub Contractors

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 COR. 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.

7.3.5 Personally owned equipment on VA Information Systems

VA prohibits the installation and use of personally-owned or contractor/subcontractor owned equipment or software on VAs 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.

7.3.6 Electronic storage

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.

7.3.7 Bio-medical devices

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:

* Vendor must accept the system without the drive

* VAs initial medical device purchase includes a spare drive which must be installed in place of the original drive at time of turn-in; or VA must reimburse the company for media at a reasonable open market replacement cost at time of purchase.

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 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 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.

A statement needs to be signed by the Director (System Owner) that states that the drive could not be removed and that (6.8.4.1) and (6.8.4.2) controls above are in place and completed. The ISO needs to maintain the documentation.

8.0 Security Incident Investigation

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 COR 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.

To the extent known by the contractor/subcontractor, the contractor/subcontractors 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.

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.

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.

9.0 Liquidated Damages For Data Breach

9.1. 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.

9.2. 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.

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

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

9.3.2. Description of the event, including;

9.3.2.1. date of occurrence;

9.3.2.2. data elements involved, including any PII, such as full name, social security number, date of birth, home address, account number, disability code;

9.3.3. Number of individuals affected or potentially affected;

9.3.4. Names of individuals or groups affected or potentially affected;

9.3.5. Ease of logical data access to the lost, stolen or improperly accessed data in light of the degree of protection for the data, e.g., unencrypted, plain text;

9.3.6. Amount of time the data has been out of VA control;

9.3.7. The likelihood that the sensitive personal information will or has been compromised (made accessible to and usable by unauthorized persons)

9.3.8. Known misuses of data containing sensitive personal information, if any;

9.3.9. Assessment of the potential harm to the affected individuals;

9.3.10. Data breach analysis as outlined in 6500.2 Handbook, Management of Security and Privacy Incidents, as appropriate;

9.3.11. Whether credit protection services may assist record subjects in avoiding or mitigating the results of identity theft based on the sensitive personal information that may have been compromised.

9.4. Based on the determinations of the independent risk analysis, the contractor shall be responsible for paying to the VA liquidated damages in the amount of $37.50 per affected individual to cover the cost of providing credit protection services to affected individuals consisting of the following:

9.4.1. Notification;

9.4.2. One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports;

9.4.3. Data breach analysis;

9.4.4. Fraud resolution services, including writing dispute letters, initiating fraud alerts and credit freezes, to assist affected individuals to bring matters to resolution;

9.4.5. One year of identity theft insurance with $20,000.00 coverage at $0 deductible;

9.4.6. Necessary legal expenses the subjects may incur to repair falsified or damaged credit records, histories or financial affairs.

10 Security Controls Compliance Testing On a periodic basis, VA, including the Office of Inspector General, reserves the right to evaluate any or all of the security controls and privacy practices implemented by the contractor under the clauses contained within the contract. Within 10 working-days’ notice, at the request of the government, the contractor must fully cooperate and assist in a government-sponsored security controls assessment at each location wherein VA information is processed or stored, or information systems are developed, operated, maintained, or used on behalf of VA, including those initiated by the Office of Inspector General. The government may conduct a security control assessment on shorter notice (to include unannounced assessments) as determined by VA in the event of a security incident or at any other time.