36C10G26R0016.docx

36C10G26R0016 This is a combined synopsis/solicitation for commercial products or commercial services prepared in accordance with part 12. This announcement constitutes only solicitation. Offers are being requested and a separate written solicitation will not be issued.

Solicitation number 36C10G26R0016 is issued as a request for proposal (RFP) for Video Magnification Devices (VMDs) as a uniform preferred product for Veterans, service members, and their families, who have earned through their military service to the United States. VHA accomplishes its mission by delivering patient-centered, personalized services that help Veterans readjust to civilian life and enhance their well-being.

VMDs allow visually impaired users the ability to view objects at a variety of levels, from extremely low to extremely high magnification. This ability enhances the quality of Veteran’s life by being able to participate in normal activities, i.e. reading newspapers, books, writing checks etc.

The Government seeks to establish an Indefinite Delivery Indefinite Quantity (IDIQ) contract with a period of performance one (1) year base and four (4), one (1) year options.

The requirement is solicited as Full and Open; this acquisition is not set-aside for small business concerns. The associated North American Industry Classification System (NAICS) code for the procurement of these items is 334220 with a small business size standard of 1,250 employees. Please identify your business size in your response based upon this standard. The government will only establish an award with the Offeror that meets all requirements of the solicitation. The award resulting from this solicitation will be made based on the best overall proposal that is determined to be the most beneficial to the Government (i.e., best value).

Place of Performance: Multiple locations throughout the continental US, Hawaii and all US Territories; delivery location(s) will be defined per each order.

This solicitation incorporates provisions and clauses by reference. The full text of provisions and clauses may be accessed electronically at www.acquisition.gov. All vendors must be registered in the System for Award Management (SAM) database https://sam.gov.

This acquisition is being conducted in accordance with the procedures in Federal Acquisition Regulation (FAR) Part 12 Acquisition of Commercial Products and Commercial Services in conjunction with FAR Part 15 Contracting by Negotiation, FAR Part 16.504 Indefinite-quantity Contracts, and FAR Part 16.505 Ordering.

Proposals must be submitted in accordance with the instructions provided under Federal Acquisition Regulation (FAR) 52.212-1 Instructions to Offerors Commercial Items.

The proposal must be submitted no later than June 10, 2026, 12 PM EST unless this date is changed via a formal solicitation amendment. The contractor shall submit an electronic (email) copy of the proposal to both Tessa Smith, Contract Specialist at Tessa.Smith2@va.gov and Adam Vulgamore, Contracting Officer at Adam.Vulgamore@va.gov.

The Government is not responsible for confirming receipt. Any proposal received after the specified date and time will be unresponsive and shall receive no further consideration. In accordance with FAR 52.212-1(c), Offerors are responsible for submitting offers and any modifications or revisions to the Government office designated in the solicitation by the time specified in the solicitation. These e-mail addresses identified for the Contract Specialist and Contracting Officer are the “Government office designated” in the solicitation as defined in FAR 52.212-1(c)(1) for timely receipt of proposals. Exceptions for late receipt of electronic submissions are specifically outlined in FAR 52.212-1(c)(2).

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

05-13-2026 Tessa Smith 828-335-1771 06-10-2026

12PM

EDT

36C10G U.S. Department of Veterans Affairs OPAL | Strategic Acquisition Center

10300 Spotsylvania Ave | STE 400 Fredericksburg VA 22408-2697

X

334220 1250 Employees

N/A

36C10G Delivery of products shall be made to Veteran's residence or individual VAMC, FOB, in accordance with the specific delivery instructions contained in the delivery orders.

36C10G U.S. Department of Veterans Affairs OPAL | Strategic Acquisition Center

10300 Spotsylvania Ave | STE 400 Fredericksburg VA 22408-2697

VAFSC

U.S. Department of Veterans Affairs Financial Services Center

PO BOX 149971

(see Section B.3 invoicing/payment) Austin TX 78714-8917 1 (877) 489-6135

See CONTINUATION Page

Title: Video Magnification Devices Period of Performance: Base year and four (4) one (1) year option periods.

All questions and inquiries concerning this RFP shall be submitted on Solicitation Attachment 8 – RFP Questions no later than May 20, 2026. The Offeror shall submit questions to both Tessa Smith, Contract Specialist at Tessa.Smith2@va.gov and Adam Vulgamore, Contracting Officer at Adam.Vulgamore@va.gov.

See CONTINUATION Page

Adam Vulgamore

Table of Contents

Page 1 of

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 36C10G Adam Vulgamore U.S. Department of Veterans Affairs OPAL | Strategic Acquisition Center 10300 Spotsylvania Ave | Suite 400 Fredericksburg VA 22408-2697 Adam.Vulgamore@va.gov

Contract Specialist Tessa Smith U.S. Department of Veterans Affairs Strategic Acquisition Center 10300 Spotsylvania Ave., Suite 400 Fredericksburg, VA 22408-2697 Tessa.Smith2@va.gov

Contracting Officer Representative (COR) / Program Office Point of Contact (POC) – Kimberly Cowan-Tucker Kimberly.Cowan-tucker@va.gov

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

3. INVOICES: Invoices shall be submitted monthly in arrears based upon delivery and acceptance.

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.

5. FSC MANDATORY ELECTRONIC INVOICE SUBMISSION: Contractors are required to submit payment requests in electronic form in accordance with the submission instructions below.

TUNGSTEN ELECTRONIC INVOICE SUBMISSION

FSC e-INVOICE PROGRAM THRU AUSTIN PORTAL

FSC MANDATORY ELECTRONIC INVOICE SUBMISSION FOR AUSTIN PAYMENTS

Contracting POC: Tessa Smith, email: Tessa.Smith2@va.gov COR (Contracting Officers Representative): Kimberly Cowan-Tucker Contract/Task Order Number: TBD Purchase Order: #TBD

a. Vendor Electronic Invoice Submission Methods:

Facsimile, e-mail, and scanned documents are not acceptable forms of submission for payment requests. Electronic form means an automated system transmitting information electronically according to the accepted electronic data transmission methods below.

1. VA’s Electronic Invoice Presentment and Payment System – The FSC uses a third-party contractor, Tungsten, to transition vendors from paper to electronic invoice submission. Please go to this website: http://www.tungsten-network.com/US/en/veterans-affairs/ to begin submitting electronic invoices, free of charge.

2. A system that conforms to the X12 electronic data interchange (EDI) formats established by the Accredited Standards Center (ASC) chartered by the American National Standards Institute (ANSI). The X12 EDI Web site (http://www.x12.org).

b. Vendor e-Invoice Set-Up Information:

Please contact Tungsten at the phone number or email address listed below to begin submitting your electronic invoices to the VA Financial Services Center for payment processing, free of charge. If you have question about the e-invoicing program or Tungsten, please contact the FSC at the phone number or email address listed below.

1. Tungsten e-Invoice Setup Information: 1-877-489-6135

2. Tungsten e-Invoice email: VA.Registration@Tungsten-Network.com

3. FSC e-Invoice Contact Information: 1-877-353-9791

4. FSC e-Invoice email: vafsccshd@va.gov

5. See https://www.fsc.va.gov/einvoice.asp for more information.

B.2 PAYMENT TERMS AND CONDITIONS

1. The Government is obligated only to the extent of authorized purchases made under the resultant contract/task order. The terms and conditions included in this contract apply to all purchases made pursuant to it. In the event of an inconsistency between the provisions of this contract, and the Contractor’s invoice, the provisions of this contract will take precedence.

2. Purchase/Ordering Limitation:

Limited to FAR Clause 52.216-19 Order Limitations, as noted in the contract. The estimated total quantities are listed in the Schedule of Services. The quantities are estimates only, and the VA makes no guarantee regarding the actual quantities that may be purchased.

3. Delivery Tickets:

The following provisions apply to all shipments:

Inspection: Destination Acceptance: Destination Shipping: Free on Board (FOB) – Destination Ship To and Mark For : Deliveries shall be marked and shipped to various VHA locations and patient homes, as applicable, identified in each order placed against the contract.

All shipments, either single or multiple container deliveries, shall bear and contain on the delivery tickets or sales slips (external shipping labels and associated manifests or packing lists) the following at a minimum:

(i) Name of supplier

(ii) Contract number

(iii) Date of purchase

(iv) Itemized list of supplies or services furnished

(v) Quantity, unit price, and extension of each item, less applicable discounts (unit prices and extensions need not be shown when incompatible with the use of automated systems, provided the invoice is itemized to show this information).

(vi) Date of delivery or shipment In the case of multiple container deliveries, a statement readable near the VA Order number will indicate total number of containers for the complete shipment (ex. “Package 1 of 2”), clearly readable on manifests and external shipping labels.

Packing Slips/Labels and Lists shall include the following:

IFCAP PO # TBD (i.e., 166-E11234) Total number of Containers: Package ___ of ___. (i.e., Package 1 of 3)

4. Reports:

Quarterly Report:

To track compliance, VA requires the contractor to submit the quarterly report of sales in the approved format listed in contract Attachment 3 – Quarterly Sales Report (QSR) Reporting Tool based on the Government’s fiscal calendar year. See below.

The contractor agrees that they shall adhere to this requirement. The contractor shall provide a quarterly report, no later than the submission due date outlined above. Reports shall be sent electronically to the following SAC IDIQ Government points of contact until the contractor is notified, in writing, of a different point of contact as follows:

a. Project Manager;

b. Contracting Officer’s Representative;

c. Contract Specialist; and

d. Financial Management Analyst at SACPAY@va.gov;

B.3 CONTRACT MINIMUM DOLLAR VALUES

The minimum guaranteed amount is $2,500.00. Orders shall be determined by department needs. The Government has no obligation to award orders beyond the minimum guaranteed amount. The Government’s obligation for the minimum guaranteed amount applies only in year one ordering period of the contract. If the Contractor receives total orders for less than the minimum amount in year one, the Government will pay the difference between the amount ordered and the minimum amount guaranteed for the year one ordering period of the contract.

The maximum value for this awarded IDIQ contract will be $33,000,000.

B.4 ACKNOWLEDGMENT OF AMENDMENTS:

The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

B.5 PRODUCT DESCRIPTION

INTRODUCTION

The Veterans Health Administration’s (VHA) Prosthetic and Sensory Aids Services (PSAS) has identified Video Magnification Devices (VMDs) as a uniform preferred product for Veterans, service members, and their families, who have earned through their military service to the United States. VHA accomplishes its mission by delivering patient-centered, personalized services that help Veterans readjust to civilian life and enhance their well-being.

VMDs allow visually impaired users the ability to view objects at a variety of levels, from extremely low to extremely high magnification. This ability enhances the quality of Veteran’s life by being able to participate in normal activities, i.e. reading newspapers, books, writing checks etc.

SCOPE OF WORK

The contractor shall provide uninterrupted delivery of VMDs as specified in the contract and the resulting orders.

VMDs will be procured through Indefinite Delivery Indefinite Quantity (IDIQs) contracts. Purchases by the Government of products established under the resulting IDIQs shall be decentralized. The delivery orders shall indicate the specific items ordered, item quantities, and all necessary delivery and payment procedures.

PERFORMANCE

Type of Contract: The contract shall be an IDIQ Contract. Delivery Orders (DO) shall be issued on a firm fixed price basis against the IDIQ contract.

Contract Period of Performance: The ordering period is for 60 months with a one (1) year base and four (4), one (1) year options.

Contract Effective Date: The effective date of the contract shall be TBD.

Orders issued under the awarded IDIQ Contract will be firm-fixed price. The contractor shall provide the supplies and resources necessary to accomplish the requirements described in this contract.

REQUIREMENTS

Video Magnification Devices must meet all the minimum technical requirements. The MTRs include:

VIDEO MAGNIFIERS DESKTOP SMALL PROFILE

MINIMUM SPECIFICATION REQUIREMENTS

ADJUSTABLE

MONITOR POSITIONING

YES and includes up/down & tilt positioning

DELIVERY AND IN HOME SETUP

Delivery and in-home setup of the device are defined as the delivery and installation of the device inside the Veteran's residence on the same day. All devices will be fully assembled and set up within the residence. This includes placing the device in the room of the Veteran's choice while ensuring operation and functionality of all equipment (functions and features).

YES

VIDEO MAGNIFIERS DESKTOP FULL SIZE

MINIMUM SPECIFICATION REQUIREMENTS

24" Clin (0002) 27" Clin (0003)

greater)

DELIVERY AND IN HOME SETUP

Delivery and in-home setup of the device are defined as the delivery and installation of the device inside the Veteran's residence on the same day. All devices will be fully assembled and set up within the residence. This includes placing the device in the room of the Veteran's choice while ensuring operation and functionality of all equipment (functions and features).

YES

VIDEO MAGNIFIERS DESKTOP WITH ENHANCED FEATURES:

CAMERA WITH MULTI-DISTANCE VIEWING

MINIMUM SPECIFICATION REQUIREMENTS

24" (0004) 27" (0005)

DELIVERY AND IN HOME SETUP

Delivery and in-home setup of the device are defined as the delivery and installation of the device inside the Veteran's residence on the same day. All devices will be fully assembled and set up within the residence. This includes placing the device in the room of the Veteran's choice while ensuring operation and functionality of all equipment (functions and features).

YES

DELIVERY

Delivery of products shall be made to the Veteran’s residence or individual VAMCs, free on board (FOB) destination, in accordance with the specific delivery instructions contained within the delivery orders. The contractor shall deliver to any Veteran residence or VAMC within the 50 United States and its outlying territories and areas to include the District of Columbia, Puerto Rico, Alaska, Hawaii and rural areas upon issuance of a delivery order. Delivery is defined by each order placed against the contract during the specific period of performance. Individual VAMCs shall issue delivery/purchase orders to the contractor which shall indicate the specific item ordered, quantity, and all necessary delivery and payment procedures. The contractor shall provide the products specified in the contract at the prices awarded herein and under the terms and conditions set forth in the contract, signed by a point of contact with purchasing authority on behalf of a VAMC.

Delivery shall be in accordance with the following time frames:

Normal - Normal delivery shall be made within up to ten business (10) days after receipt of a delivery order.

Expedited - Expedited delivery shipments, if required, will be negotiated at the facility level. The Government will pay the difference between normal delivery (ten days) and expedited freight charges. The charge will be identified in the order and must be pre-approved, or the Government will not be responsible for the difference. Any additional delivery requirements shall be specified on the individual delivery order.

Alternate Delivery: To meet the needs of Veteran patients across the VA healthcare system, there may be times the local facility will require delivery to an alternate location. Alternate delivery shall only be used when the need arises to ship prescribed item(s) to other than the residence of the Veteran (i.e., local VA medical center or Community Based Outpatient Clinics (CBOC)). The local contracting office will create a delivery order, to include the address to where the item(s) are to be shipped. This order can be placed by the local VAMC in the most economical manner they deem fit (i.e. GPC or delivery order). Alternate delivery procedures shall safeguard PHI and PII.

INFORMATION SECURITY CONSIDERATIONS

The Certification and Accreditation (C&A) requirements do not apply, and a Security Accreditation Package is not required (See VA6500).

The contractor shall safeguard Protected Health Information (PHI) and Personally Identifiable Information (PII).

Personally Identifiable Information (PII) is any information pertaining to an individual that is retrieved by the individual’s name or other unique identifier, as well as PHI regardless of how it is retrieved. PII is a subset of personally, identifiable information and is protected by the Privacy Act.

The VA defines PII as:

“information which can be used to distinguish or trace an individual's identity, such as their name, social security number, biometric records, etc. alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc."

Protected Health Information - Protected Health Information (PHI) is a subset of Health Information, including demographic information collected from an individual, that:

(1) is created or received by a health care provider, health plan, or health care clearinghouse (e.g., a HIPAA-covered entity, such as VHA);

(2) relates to the past, present, or future physical or mental condition of an individual, or provision of or payment for health care to an individual; and

(3) identifies the individual or where a reasonable basis exists to believe the information can be used to identify the individual.

The HIPAA Privacy Rule defines PHI as PII transmitted or maintained in any form or medium by a covered entity, such as VHA. NOTE: VHA uses the term PHI to define information that is covered by HIPAA but, unlike PII, may or may not be covered by the Privacy Act or Title 38 confidentiality statutes. In addition, PHI excludes employment records held by VHA in its role as an employer.

B.6 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) COMPLIANCE

a) As a covered entity, the VA is required by law to obtain satisfactory assurance of a Business Associate that the Business Associate appropriately safeguards protected health information it receives or creates on behalf of the covered entity. Contractors and any Subcontractors must adhere to the provisions of Public Law 104-191, HIPAA to include the Administrative Simplification Provisions of the law and associated rules and regulations published by the Department of Health and Human Services (HHS). The Contractor shall comply with all HIPAA-related rules and regulations to include Electronic Transactions, the Standards for Privacy of Individually Identifiable Health Information, and the Security Standards. This includes both the Privacy and Security Rules published by HHS. As required by HIPAA, HHS has promulgated rules governing the use and disclosure of protected health information by covered entities. The covered entity component of the VA is the Veterans Health Administration (VHA). Business associates must follow VHA privacy policies and practices. All Contractors and business associates must receive privacy training annually. For Contractors and business associates who do not have access to VHA computer systems, this requirement is met by completing VHA National Privacy Policy training, other VHA approved privacy training or Contractor furnished training that meets the requirements of HHS Standards for Privacy of Individually Identifiable Health information as determined by VHA. For Contractors and business associates who are granted access to VHA computer systems, this requirement is met by completing VHA National Privacy Policy training or other VHA approved privacy training. Proof of training is required.

b) Any violation of HIPAA will be reported to the CO, the COR, and the PM in writing within one (1) business day of the Contractor’s discovery of an occurrence. Included in the report will be a description of the occurrence, patient names (if known), location, date and time. A copy of any filed police report will be provided by the Contractor to the CO within one (1) business day of completion.

c) Security must be designed into the system to protect patient information as required by HIPAA. All external network connects to the remote server shall be via encrypted SSL connects, VPN software and hardware. The process and method in which the transmission or routing of VA image data shall be reviewed and approved in accordance with form VA 6500.6. All patient information remains the sole property of the United States Government and shall not be used for any purpose other than those stipulated in this contract. The VAMCs shall act as primary custodian of the patient information (including both the image data and the report) for all purposes related to Government records retention requirements. Patient information, including images shall be retained by the Contractor only for the minimum period of time required to comply with any applicable laws, regulations, and the retention policies stated herein. Upon request, the Contractor shall provide the Strategic Acquisition Center (SAC) CO, assigned COR for the applicable facility, Information Security Officer (ISO), or Privacy Officer (PO) with access to information pertaining to the way the Contractor maintains NPOP/VAMC patient data and the steps taken on an ongoing basis to assure the privacy and security thereof. This includes information regarding computer network architecture, configuration of firewall(s), routers, and other pieces of networking equipment, information about installed security software, and audits of patches of known security vulnerabilities. All relevant security-related patches and anti-virus updates shall be installed with seven (7) days of initial release. Patient lists, no matter how developed, shall be treated as privileged information. Lists and names of patients shall not be disclosed or revealed in any way for any use outside the contract of this PWS. Contractor must meet all VA required security restrictions and Contractor representatives shall undergo all HIPAA/confidentiality related training to comply with V15 requirements.

d) Contractors are not to retain any copies of the corresponding testing services, clinical data, even unidentified data (i.e., data that has had patient information redacted).

B.7 FACSIMILE (FAX) PRIVACY STATEMENT

Should the Contractor require the use of facsimile communication during the life of the contract, the VA requires the following statement on all fax cover sheets be included:

“This fax is intended only for the use of the person or office to which it is addressed and may contain information that is privileged, confidential, or protected by law. All others are hereby notified that the receipt of this fax does not waive any applicable privilege or exemption for disclosure and that any dissemination, distribution, or copying of this communication is prohibited. If you have received this fax in error, please notify this office immediately at the telephone number listed above.”

B.8 ACCEESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

a) 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.

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 within 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.

e) The Contractor or Subcontractor must notify the CO 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 CO must also be notified immediately by the Contractor or Subcontractor prior to an unfriendly termination.

B.9 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) 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 SAC CO within 30 days of termination of the contract.

c) 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.

d) The Contractor/Subcontractor shall not make copies of VA information except as authorized and necessary to perform the terms of the contract 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.

e) 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 for cause under FAR part 12.

f) If a VHA contract is terminated for cause, any 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.

g) 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.

h) 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.

i) 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.

j) 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 SAC CO for response.

k) For service that involves the storage, generating, transmitting, or exchanging of VA sensitive information but does not require Certification & Accreditation (C&A) or a Memorandum of Understanding – Information Security Officer (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 assigned COR for each applicable facility.

B.10 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 assigned COR for the applicable facility 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, Contractor personnel, and its Subcontractors and their personnel 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.

B.11 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. However, it is the policy of VA to forgo collection of liquidated damages in the event the contractor provides payment of actual damages in an amount determined to be adequate by the agency.

b) The Contractor/Subcontractor shall provide notice to VA of a “security incident” as set forth in the Security Incident Investigation section above.