36C10X18R0171-001.docx

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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.

DUNS:

DUNS+4:

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. 2/2012)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

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

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

36C10X18R0171 07-18-2018 Kevin Armillotti (kevin.armillotti@va.gov) 240-215-1623 08-06-2018

2:00 PM, EDT

Strategic Acquisition Center - Frederick Department of Veterans Affairs 321 Ballenger Center Drive, Suite 125 Frederick MD 21703 X x 541199 $11 Million X N/A X Strategic Acquisition Center - Frederick Department of Veterans Affairs 321 Ballenger Center Drive, Suite 125 Frederick MD 21703 Strategic Acquisition Center - Frederick Department of Veterans Affairs 321 Ballenger Center Drive, Suite 125 Frederick MD 21703

TBD

See B.1 CONTRACT ADMINISTRATION DATA See CONTINUATION Page Board of Veterans' Appeals (BVA) Modernization Surge Support and Claims File Review Support This solicitation is open only to Veteran Owned Small Businesses (VOSBs) including Service Disabled Veteran Owned Small Businesses(SDVOSBs)that are verified in the U.S. Department of Veterans Affairs Vendor Information Pages (VIP) under

NAICS 541199.

Bid intentions are due no later than Monday, July 30, 2018 at 2:00 PM, EDT.

Questions are due no later than Wednesday, July 25, 2018 at

2:00 PM, EDT.

TBD

See CONTINUATION Page x X x Allen L. Smith Contracting Officer 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:

b. GOVERNMENT: Contracting Officer (Updated at Award) Strategic Acquisition Center - Frederick Department of Veterans Affairs 321 Ballenger Center Drive, Suite 125 Frederick MD 21703

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

3. POINTS OF CONTACTS:

Vendor POC: TBD Veterans Affairs COR: TBD Contracting POC: Kevin Armillotti, 240-215-1623, Kevin.Armillotti@va.gov

4. INVOICING INSTRUCTIONS:

a. Invoices shall be submitted in arrears:

by the Government

b. *** The Contract/Order number: _______________MUST be included on all invoices.

c. *** The IFCAP Purchase Order number: ___________ MUST be included on all invoices for services purchased at time of award. Invoices for subsequent Options shall reference IFCAP Purchase Orders provided at time of formal task order modification.

d. 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.

e. INVOICE SUBMISSION

OB10 ELECTRONIC INVOICE SUBMISSION

FSC e-INVOICE PROGRAM THRU AUSTIN PORTAL

FSC MANDATORY ELECTRONIC INVOICE SUBMISSION FOR AUSTIN PAYMENTS

Vendor Electronic Invoice Submission Methods:

Fax, email 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 data transmissions below.

· VA’s Electronic invoice presentment and payment system-The FSC uses a third party Contractor, OB10, to transition vendors from paper to electronic invoice submission. Please see OB10 contact information below to begin submitting electronic invoices, free of charge.

· 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).

Vendor e-invoice Set-up information:

Please contact OB10 at the phone number or email address listed below to begin submitting your electronic invoices to the VA Financial Services Center in Austin, TX for payment processing. If you have questions about the e-invoicing program or OB10, please contact the FSC at the phone number or email address listed below.

· OB10 e-Invoice setup information: 1-877-489-6135

· OB10 e-Invoice email: VA.Registration@ob10.com

· FSC e-Invoice contact information: 1-877-353-9791

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

· http://www.fsc.va.gov/einvoice.asp

Communications:

· https://www.federalregister.gov/articles/2012/11/27/2012-28612/va-acquisition-regulation-electronic-submission-of-payment-requests

· http://fcw.com/articles/2012/11/27/va-epayments.aspx?s=fcwdaily

5. LIMITATIONS ON SUBCONTRACTING-- MONITORING AND COMPLIANCE (JUN 2011)

This solicitation includes VAAR 852.219-11 VA Notice of Total Veteran-Owned Small Business Set-Aside. Accordingly, any contract resulting from this solicitation will include this clause. The contractor is advised in performing contract administration functions, the CO may use the services of a support contractor(s) retained by VA to assist in assessing the contractor's compliance with the limitations on subcontracting or percentage of work performance requirements specified in the clause. To that end, the support contractor(s) may require access to contractor's offices where the contractor's business records or other proprietary data are retained and to review such business records regarding the contractor's compliance with this requirement. All support contractors conducting this review on behalf of VA will be required to sign an “Information Protection and Non-Disclosure and Disclosure of Conflicts of Interest Agreement” to ensure the contractor's business records or other proprietary data reviewed or obtained in the course of assisting the CO in assessing the contractor for compliance are protected to ensure information or data is not improperly disclosed or other impropriety occurs. Furthermore, if VA determines any services the support contractor(s) will perform in assessing compliance are advisory and assistance services as defined in FAR 2.101, Definitions, the support contractor(s) must also enter into an agreement with the contractor to protect proprietary information as required by FAR 9.505-4, obtaining access to proprietary information, paragraph (b). The contractor is required to cooperate fully and make available any records as may be required to enable the CO to assess the contractor's compliance with the limitations on subcontracting or percentage of work performance requirement.

6. ACKNOWLEDGMENT OF AMENDMENTS: ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

36C10X18R0171_1

B.2 PRICE/COST SCHEDULE

ITEM INFORMATION

See section 5.1 of the PWS.

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 5.2 of the PWS.

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 5.2 of the PWS.

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 5.2 of the PWS

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 6.1 and 6.10 of the PWS. No claim files will be reviewed during the first 30 days after award.

Ramp-up is as follows:

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 6.1 and 6.10 of the PWS

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 6.1 and 6.10 of the PWS

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

See section 6.1 and 6.10 of the PWS

Contract Period: Base POP Begin: 08-31-2018 POP End: 08-30-2019

***END OF BASE PERIOD CLINS***

See section 5.2 of the PWS.

Contract Period: Option 1 POP Begin: 08-31-2019 POP End: 08-30-2020

See section 5.2 of the PWS

Contract Period: Option 1 POP Begin: 08-31-2019 POP End: 08-30-2020

See section 6.1 and 6.11 of the PWS

Contract Period: Option 1 POP Begin: 08-31-2019 POP End: 08-30-2020

***END OF OPTION PERIOD 1 CLINS***

See section 5.2 of the PWS.

Contract Period: Option 2 POP Begin: 08-31-2020 POP End: 08-30-2021

See section 5.2 of the PWS

Contract Period: Option 2 POP Begin: 08-31-2020 POP End: 08-30-2021

See section 6.1 and 6.11 of the PWS

Contract Period: Option 2 POP Begin: 08-31-2020 POP End: 08-30-2021

***END OF OPTION PERIOD 2 CLINS***

B.3 PERFORMANCE WORK STATEMENT (PWS)

BOARD OF VETERANS’ APPEALS

MODERNIZATION SURGE SUPPORT AND CLAIMS FILE REVIEW SUPPORT

1. Background

The Department of Veterans Affairs’ (VA) Board of Veterans Appeals’ (BVA) mission is to conduct hearings and decide appeals properly before the Board in a timely manner. The Board’s jurisdiction extends to all questions in matters involving a decision by the Secretary under a law that affects a provision of benefits by the Secretary to Veterans, their dependents, or their Survivors. Final decisions on such appeals are made by the Board based on the entire record in the proceeding and upon consideration of all evidence and applicable provisions of law and regulation.

The Board consists of a Chairman, a Vice Chairman, and such number of members as may be found necessary to conduct hearings and dispose of appeals properly before the Board in a timely manner. “Members of the Board,” also known as “Veterans Law Judges” (VLJ), are supported by a large staff of attorneys and administrative personnel.

As a result of the Veteran’s Appeals Improvement and Modernization Act of 2017 (Act), the Board anticipates increased workloads. In addition, in recent fiscal years, the Board has increased its overall full-time employee (FTE) numbers. The vast majority of the increase in FTE has been decision writing attorneys, which has increased the volume of work needing to be done to support those attorneys. To achieve VA and BVA goals of providing best possible service to Veterans, BVA must undergo an aggressive transformation that includes initiatives to re-evaluate and streamline business processes, reorganize areas of responsibilities, re-train people, and implement new solutions to reduce the appeals wait times by adjudicating appeals faster and at a higher quality.

Existing laws and regulations established a Veterans benefits appeals process that has sequential steps following a benefits claim adjudication by the Veterans Benefits Administration (VBA), Veterans Health Administration (VHA), National Cemetery Administration (NCA), or VA’s Office of General Counsel (OGC). The Act puts in place a new system that shall provide Veterans multiple options following a benefits claim adjudication by VBA, VHA, NCA, or OGC. The anticipated effective date of the Act is February 14, 2019. Though the Act provides for opportunities for Veterans who have existing appeals to opt-in to the new system it is anticipated that not all will. Those Veterans will have to have their appeals adjudicated under the laws and regulations as they existed prior to the Act (or what VA is calling the legacy system). At present, there are approximately 460,000 legacy system appeals. Until these legacy appeals are resolved, the Board will have to work both legacy appeals and new appeals in tandem.

These Board requirements are focused on legacy claims file review. The Board has a requirement for a Contractor to perform Paralegal Level I support tasks in these areas to improve the efficiency of the adjudicatory process. The Board must modernize its current claims file document review system. The chosen Contractor shall provide paralegal services to support analyzing, organizing, and delivering documentation submitted by or for Veterans to the Board’s legal staff in the Office of Appellate Operations (OAO).

2. Objectives

VA seeks to award a Firm-Fixed Price contract with a 12-month base year and two 12-month option periods to provide paralegal support for the Board related to the administration of Veterans benefits appeals processing. The Board desires to improve its ability to support OAO legal staff by identifying the legally relevant evidence (LRE) in a file thereby significantly reduce the size of the claims files that are reviewed by the OAO attorneys and Veterans Law Judges (VLJ). LRE includes all the procedural, adjudicatory, medical, and lay evidence relevant to the issues on appeal. More detail can be found in Section 6 and in Attachment A. The objective is to increase decision volume by reducing the number of documents that must be reviewed by a Board attorney when drafting a decision.

3. Period/Place of Performance

Period of Performance: 12-month base period + two (2) 12-month options periods.

Duty hours: 9:00AM to 5:00PM Note that Paralegals may work outside of these hours. In the event paralegal needs Board input before proceeding with review, responses to any questions or concerns may only be available during the above standard work hours, eastern standard time.

Place of Performance: Performance shall take place at the facilities of the Contractor or, in the event Contractor has or establishes a telecommute program, through telecommuting. Travel is not anticipated on this effort.

4. Scope

The purpose of the contract is to support the Board’s statutory requirements related to adjudicating disability appeals for Veterans and other appellants by reviewing claims files, addressing administrative issues that arise and labeling relevant evidence.

In the performance of the tasks associated with this PWS, the Contractor is supporting the Board’s work of adjudicating veteran benefits appeals in compliance with the laws and regulations found in:

· Title 38 – Veterans’ Benefits, United States Code http://www.gpo.gov/fdsys/browse/collectionUScode.action?collectionCode=USCODE ; and

· Title 38 – Pensions, Bonuses, and Veterans’ Relief, United States Code of Federal Regulations https://www.govinfo.gov/app/collection/cfr/2017/

Other relevant authorities include:

· Privacy Act, 5 U.S.C. §552a;

· Freedom of Information Act, 5 U.S.C. §552b; and

· VA Directive 6500, Information Security Program

5. Tasks and Deliverables (Project Management and Reporting) [CLINs 0001, 0002, X003, and X004]

5.1 Task 1 – Kickoff Meeting

The Contractor shall hold a technical kickoff meeting within 14 Calendar (C-day) days after award.

The Contractor shall provide a draft meeting agenda at least seven (7) Calendar days prior to the meeting and a final agenda two (2) Calendar days prior to the meeting. Meeting minutes shall be provided to Contracting Officer (CO), Contract Officer Representative (COR), and other attendees within three (3) Calendar days after conclusion of the meeting. The Contractor shall invite the CO, Contract Specialist (CS), COR, and any other necessary VA personnel. Work shall not commence until the VA Board Project Manager approves the approach/methodology, work plan, and initial schedule.

5.2 Task 2 Project Management Plan/ Monthly Reporting

The Contractor shall deliver a draft strategy-focused, results driven Project Management Plan (PMP) within eight (8) Calendar days after TO award, which lays out the Contractor’s approach, timeline, and tools used in execution of this contract. For every task, the Contractor shall identify in writing all necessary subtasks (if any), associated costs by task, and together with associated sub-milestone dates. The Contractor's subtask structure shall be reflected in the proposal and detailed PMP.

The Government shall provide comments within five (5) Calendar days after the draft PMP submission. The Contractor shall make adjustments/revisions based on the Government’s comments and submit the final PMP within five (5) Calendar days after receiving the Government’s comments. The Contractor shall provide formal PMP updates as part of the monthly status reports, as required in the BVA PWS, for each calendar month no later than the close of the Calendar day (5:00 PM Eastern Time) by the end of the fifth (5) full business day of the next month. The monthly PMP reports shall be used to update COR on Contractors compliance with the Final PMP.

Key topics that shall be included in the PMP are:

http://csrc.nist.gov/publications/nistpubs/800-122/sp800-122.pdf, the relevant VA Directive and Standards can be located at: https://www.va.gov/vapubs/Search_action.cfm?FormNo=6500

Deliverables:

5.2 Task 3 – Weekly Reporting

For the duration of the ramp-up period and for the entire period of performance of the contract, weekly reports shall be required to track progress during the ramp-up period and performance regarding the number of claims being reviewed weekly. Reports shall be provided to COR by 5:00PM EST Friday of each week. Excel is the preferred method but alternative methods of reporting may be acceptable if Contractor gets the expressed permission of COR.

The Contractor shall provide the follow reports:

Deliverable:

5.3 Options

Option Period Tasks and Deliverables associated with project management and reporting shall include Monthly and Weekly Reporting only (no new PMP or Option Period Kickoff will be required).

6. Tasks and Deliverables (Claims File Review Support) [CLINs 0005 (AA-AC), 1005, and 2005]

6.1 Task 1 – File Package Review

NOTE: Tasks 6.1 Section II and Section III below may be conducted simultaneously

I. Receipt of Files to be Reviewed Receive claims file for legacy claims: Information packages shall be delivered electronically to the Contractor via Boards document review software, which Contractor shall use to review and label relevant documents. Contractor shall prioritize and complete packages based on date received and docket order.

II. Review for Unaddressed Administrative Action Contractor shall ensure all necessary administrative actions have been completed. In certain cases, administrative actions must be performed by the Agency of Original Jurisdiction (AOJ) or Board administrative staff, however, these tasks are not always completed. Therefore, it is necessary for the Contractor to conduct a quality check to ensure package completeness. In the event any of these issues are found to be unaddressed, Contractor shall flag all incomplete items and notify Board co-located Administrative Support staff so they can act to complete the package. The Contractor shall use the Board’s proprietary software to send unaddressed issues to Board co-located Administrative Support Staff. See Attachment A, SOP Checking for Outstanding Admin Actions.

As detailed in Attachment A, SOP for Checking Outstanding Admin Actions, issues listed below, if found, should be forwarded to the Board’s administrative staff for resolution. In that event, there is no need to complete Task 6.1 Section III, contractor should move on to completing the Review Memorandum and Indicating Review is Complete Task 6.1 Section IV.

III. Relevant Document Review Contractor shall review all submitted documentation and flag and label all relevant documents based on the issues on appeal. See Attachment B, Tagging and Tabbing Procedures.

IV. Completing Review Memorandum and Indicating Review is Complete Following completion of review of a claims file, either through the finding of an unaddressed administrative action (Task 6.1 Section II) or the flagging of all relevant documents (Task 6.1 Section III), Contractor shall complete a Review Memorandum indicating what, if any, administrative actions were found, the issues on appeal and the date of the associated rating decision for each issue, and a brief summary of Veteran/appellant’s contentions and the important evidence in the case. This information will be provided on the Review Memorandum Template, which will be provided to the Contractor by the Board. See Attachment C, Review Memorandum Template. Contractor shall upload all completed Review Memorandum to the associated Veteran/appellant’s VACOLS appeals record within one (1) business day of completion of claims file review. In the event VACOLS is replaced by another system Contractor will upload the Review Memoranda to the associated Veteran/appellant’s VACOLS appeals record in the replacement system. The Board will make modifications to this document as necessary to support this project.

Once completed and the Memorandum is uploaded, the Contractor shall indicate the claims file is ready for the Board by using a check box, pull down, or similar functionally that shall indicate such in the user interface they will be using to review the documents. In the event such functionality is unavailable, the Contractor shall track completed claims file reviews in an Excel spreadsheet and provide a list of completed reviews weekly. This list shall be provided to the COR by 5:00PM EST Friday of each week.

Deliverables:

6.1.1 Quantity

Contractor shall perform such review in the quantity necessary to support the Board’s weekly adjudication of legacy claims. The Board anticipates this being approximately 1,000 claims file a week depending on the expected needs of the Board for the next week. A claims file can range from 100 documents to 1,000 plus. Last measure the average electronic claims file included 243 documents.

Contractor shall be provided a ramp-up period in which they shall initially not be expected to review 1,000 claims files a week. Contactors shall be expected to review no claims files for the first 30 Calendar days from the date of award as this period shall be allotted for Contactor to acquire PIV cards and GFE for the Contractor’s personnel. Starting 31 Calendar days from the date of award and last until 60 Calendar days from the date of award, Contractor shall be expected to review 250 claims files a week. Starting 61 Calendar days from the date of award until 90 Calendar days from the date of award, Contractor shall be expected to review 500 claims files a week. Thereafter, for the remainder of the period of performance, the Contractor shall be expected to review approximately 1,000 claims files a week depending on the expected needs of the Board for the next week. See graphical representation below.

File Review Ramp Up

6.1.2 Options

Option Period Tasks and Deliverables associated with file claims reviews shall mimic those in the Base period at the full estimated number case files of 1000 per week.

7. Information and Information System Security

7.1 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.

7.2 Access to VA Information and VA Information Systems

7.2.1 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.

7.2.2 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.

7.2.3 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.

7.2.4 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.

7.2.5 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.

7.3 Custody of VA Information

7.3.1 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 CO. 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).

7.3.2 VA information shall 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.

7.3.3 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 CO. 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 CO within 30 Calendar days of termination of the contract.

7.3.4 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.

7.3.5 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.

7.3.6 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.

7.3.7 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.

7.3.8 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.

7.3.9 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 CO for response. All requests will be reported by the CO to the Board’s Chief FOIA/Privacy Act Office who will assist VA Contracting Officer in preparing a response.

7.3.10 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. All requests will be reported by the CO to the Board’s Chief FOIA/Privacy Act Office who will assist VA Contracting Officer in preparing a response.

7.3.11 For service that involves the storage, generating, transmitting, or exchanging of VA sensitive information but does not require Certification and Authority (C&A) or an Memorandum of Understanding – Information Security Agreement (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 COR.

7.4 Information System Hosting, Operation, Maintenance, or Use

7.4.1 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 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 COR 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.

7.4.2 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.

7.4.3 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.

7.4.4 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.

7.4.5 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.

7.4.6 VA prohibits the installation and use of personally-owned or Contractor/subcontractor-owned 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 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.

7.4.7 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.

7.4.8 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:

i. The equipment vendor must have an existing Business Associate Agreement 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

ii. 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 pre-approved and described in the purchase order or contract.

iii. 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.

7.5 Security Incident Investigations

7.5.1 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.

7.5.2 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.

7.5.3 With respect to unsecured protected health information,…