36C10X24Q0216 RFQ.docx

36C10X24Q0216 This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6 in conjunction with Part 13 of Federal Acquisition Regulation (FAR), as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotes are being requested and a written solicitation will not be issued. This Solicitation is issued as a Request for Quote (RFQ), and the solicitation number is 36C10X24Q00216 (attached).

This notice incorporates provisions and clauses in effect through Federal Acquisition Circular (FAC) 2023-06, effective December 4, 2023, and the Veterans Affairs Acquisition Regulations (VAAR). The complete text of any of the clauses and provisions may be accessed in full text at http://farsite.hill.af.mil.

This Solicitation is being competed as an Service Disabled Veteran Owned Small Business (SDVOSB) set aside. The NAICS Code is 811210 – Electronic and Precision Equipment Repair and Maintenance and the business size standard is $34 million.

The Department of Veterans Affairs (VA) Media Services Division (MSD) has a requirement for the procurement Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room.

Respondents are to quote Firm Fixed Prices in Section B.3 of the RFQ

Any award resulting from this solicitation will be issued on a Standard Form 1449.

Note: To receive an award resulting from this solicitation, respondents must be registered in the System for Award Management (SAM) database IAW FAR 52.212-(k). Registration may be done online at: www.acquisition.gov or www.sam.gov.

Contractors are advised that any and all questions concerning this solicitation must be sent via email to derek.devine@va.gov and carey.Kauzlarich@va.gov. The deadline for submittal of questions is May 15, 2024. Quotes shall be emailed to derek.devine@va.gov and carey.Kauzlarich@va.gov. Quotes received after 1:00 PM Eastern time on the due date indicated in FBO.gov may not be accepted.

See attached document: 36C10X24Q0216 RFQ See RFQ Attachment: 36C10X24Q0216 Room 230 Master Equipment List See RFQ Attachment: 36C10X24Q0216 Question and Answer Template.

See RFQ Attachment: : 36C10X24Q0216 Past Performance Questionnaire (PPQ) Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKSSECTION 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:

Contracting Officer’s Representative (COR): TBD

36C10X24Q0154

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B.2 INVOICING INSTRUCTIONS:

General invoicing instructions are included here.

Payment provided under the terms of this contract will be made Monthly in arrears for all services rendered and/or deliverables submitted and approved by the VA.

GOVERNMENT INVOICE ADDRESS:

TUNGSTEN (OB10) ELECTRONIC INVOICE SUBMISSION FSC e-INVOICE PROGRAM THROUGH AUSTIN PORTAL

FSC MANDATORY ELECTRONIC INVOICE SUBMISSION FOR AUSTIN PAYMENTS

Please include in all invoices the Contract/Purchase Order Number, or Task/Delivery Order Number.

All invoices need to also be submitted using the same line-item format in the contract or order.

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.

1. VA’s Electronic Invoice Presentment and Payment System – The Financial Services Center (FSC) in Austin, TX uses a third-party contractor, Tungsten, to transition vendors from paper to electronic invoice submission. Please go to this website: www.tungsten-network.com/customer-campaigns/veteransaffairs 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 is http://www.x12.org.

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 in Austin, TX for payment processing. If you have questions about the payment status of a properly submitted invoice, the e-invoicing program, or Tungsten, please contact the FSC at the phone number or email address listed below.

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

· Tungsten e-Invoice email: VA.Registration@tungsten-network.com

· VA TUNGSTEN Number: AAA544240062

· FSC e-Invoice contact information: 1-877-353-9791 FSC e-Invoice email: vafsccshd@va.gov FSC Internet: http://www.fsc.va.gov/einvoice.asp 3.Contractor Remittance Address -

All payments by the Government to the contractor will be made in accordance with:

[X] 52.232-33, Payment by Electronic Funds Transfer - System for Award Management, or

[ ] 52.232-36, Payment by Third Party

4.Invoice shall be submitted in the arrears -

Quarterly [ ]

Semi-Annually [ ]

Other [X] Monthly, after acceptance by COR

B.3 PRICE/COST SCHEDULE

ITEM INFORMATION

Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room. IAW PWS Section 7 (Less Tricasters PWS 7.13) Contract Period: Base POP Begin: 06-25-2024 POP End: 03-24-2025

Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room. IAW PWS Section 7 Contract Period: Option 1 POP Begin: 03-25-2025 POP End: 03-24-2026

Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room. IAW PWS Section 7 Contract Period: Option 2 POP Begin: 03-25-2026 POP End: 03-24-2027

Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room. IAW PWS Section 7 Contract Period: Option 4 POP Begin: 03-25-2028 POP End: 03-24-2029

B.4 PERFORMANCE WORK STATEMENT

1. BACKGROUND

The Department of Veterans Affairs (VA) Media Services Division (MSD) provides visual products, such as briefing packages, still photography, video production, certificates, exhibits, displays and presentation services in support of the VA mission as well as direct support to the Office of the Secretary and other high-level VA leaders and their staff. This support includes the following:

Audiovisual Service: Media Services provides conference support, such as video documentation, liquid crystal display projectors, audio public address system, videotape and DVD players, TV monitors, and video production services, live to tape production services, video and audio teleconferencing, audio recording and playback, as well as live event support, digital signage production, and display as well as event support in the G.V. Sonny Montgomery Conference Room 230.

The audiovisual systems in the G. V. Sonny Montgomery Conference Room 230 were upgraded in 2018, with 98% of the equipment replaced with newer equipment.

2. SCOPE OF WORK

Routine maintenance and repairs on all equipment and systems, within the G. V. Sonny Montgomery Conference room.

3. CONTRACT TYPE

This contract shall be a firm fixed price contract.

4. PERIOD OF PERFORMANCE

The Period of Performance shall be for a base year of 9 months, and four 12-month options.

5. PLACE OF PERFORMANCE

The Contractor is responsible for conducting business, in the G. V. Sonny Montgomery Conference Room 230 at 810 Vermont Avenue, NW Washington DC 20420 between the hours of 7:30 am to 5:00 pm, local time Monday thru Friday Except observed Federal holidays or when the Government facility is closed. The Contractor shall maintain an adequate workforce for the uninterrupted performance of all tasks defined within this PWS when the Government facility is not closed.

Recognized Holidays:

The Contractor shall provide services during the facility hours of operation, except for the following federal holidays set by law (5 U.S.C. §6103), or as approved by the Ordering Contracting Officer.

6. TRAVEL

Travel is required for this requirement.

7. TASK STATEMENT

1. The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to provide routine maintenance and repairs on all equipment and systems, to include the audiovisual, production systems, and cables, within the G. V. Sonny Montgomery Conference room as listed in Attachment A: Master Equipment List.

2. The Contractor shall review and verify as-built/signal flow drawings provided by the VA to ensure they reflect the actual room configuration and signal flow. The contractor shall mark-up as-built/signal flow drawings provided by the VA to show errors or omissions in the drawing. The Contractor shall update the as built/signal flow drawings to show actual room configuration and signal flow within 30 days of award.

3. The Contractor shall maintain all equipment and cables in the room in a fully operational state.

4. The Contractor shall diagnose and repair minor equipment issues or failures.

5. The Contractor shall provide a phone response to any major issues with 2 hours of calling and onsite response within 24 hours for critical issues and 72 hours for non-critical issues. Major issues are failures that prevent full support to customers.

6. If equipment must be uninstalled and sent out for repair, the Contractor shall provide viable options for continued use of the room in the absence of the item(s) out for repair.

7. The Contractor shall provide recommendations for repair and/or replacement in the form of written quotes for any malfunctioning equipment or cables.

8. The Contractor shall conduct one monthly routine onsite visit to check the status or the equipment and executes preventative maintenance.

9. The Contractor shall recommend solutions to current room operation that will improve the products created in the room and the customer experience of MSD customers.

10. The Contractor shall execute all firmware and software updates required to keep equipment current with the latest firmware/software versions available.

11. The Contractor shall stay abreast of industry and governmental changes which may impact the proper operation and use of any equipment installed in the room.

12. The Contractor shall maintain and ensure they are using NewTek Vizrt Protek Ultra coverage for the overall operational effectiveness of the Tricaster TC2 including a temporary loaner provided prior to removal of inoperable equipment.[footnoteRef:1] [1: Tricaster support and maintenance is not required for the Base Period. Service for this equipment will begin in Option Period one. ]

7.1 REPORTING REQUIREMENTS

The Contractor shall provide the Contracting Officer’s Representative (COR) with Monthly Progress Reports in electronic form in Microsoft Word or Microsoft Excel. The report shall include detailed instructions/explanations for each required data element, to ensure that data is accurate and consistent. These reports shall reflect data as of the last day of the preceding Month.

The Monthly Progress Reports shall cover all work completed during the reporting period and work planned for the subsequent reporting period. The report shall also identify any problems that arose and a description of how the problems were resolved. If problems have not been completely resolved, the Contractor shall provide an explanation including their plan and timeframe for resolving the issue. The Contractor shall monitor performance against the previous month’s approved Monthly Progress Report and report any deviations. It is expected that the Contractor shall maintain communication with VA accordingly so that any arising issues are transparent to both parties to prevent escalation of outstanding issues.

Deliverable:

Monthly Progress Reports

8. DELIVERY SCHEDULE

9. KEY PERSONNEL

Skilled experienced professional and/or technical personnel are essential for successful contractor accomplishment of the work to be performed under this effort. These are defined as individuals crucial to the successful performance of the orders issued and the programs being supported by those orders and are those persons identified as key personnel in accordance with PWS requirements. The Contractor agrees that the key personnel shall not be removed, diverted, or replaced from work without prior notification of the CO. Contractor staff shall be fully qualified and have the level of experience necessary to accomplish the requirements of this PWS, as well as those requirements outlined in Section 7.0. The following labor categories are required.

Professional Services Engineer

Position Description:

· Overseeing the Development of AV Architectural Drawings, System Flows, Cable/Conduit Risers, Product Detail pages

· Communicating Infrastructure and architectural requirements to construction teams

· Communicating System implementation plans to installation teams Background in and knowledge of systems engineering development lifecycle and associated processes.

· Communicating AV Networking requirements to VA Network teams

· Identifying and developing Change Orders

· Attaining and maintain manufacturer and industry related certifications as required.

· Design and Project Engineering experience

· Senior level of technical knowledge on audio visual products and infrastructure

· Strong understanding of networking as it pertains to AV.

· Full Understanding of and experience with project technical documents:

· Engineering/Architectural drawings

· Project Schedules

· AutoCAD review and editing experience.

· Skills and understanding of commercial building construction.

Experience Qualification: 5 years of professional experience

Substitution of Personnel: Any personnel the contractor offers as substitutes shall have the ability and qualifications, including educations and experience, equal to or better than the key personnel whose biography was submitted with the successful proposal. Requests to substitute personnel shall be provided to the CO for review and approval. All notification of substitutions in key personnel shall be submitted to the CO prior to making and change in key personnel, to the maximum extent practicable. The notification shall be in writing and shall provide a detailed explanation of the circumstances necessitating the proposed substitution. The contractor shall submit a complete biography/resume for the proposed substitute, and any other information requested by the CO. The CO will evaluate such requests and promptly notify the contractor of approval or disapproval thereof in writing.

10. OTHER DIRECT COSTS

There are no anticipated Other Direct Costs for this requirement.

11. GOVERNMENT- FURNISHED EQUIPMENT/ MATERIALS/ FACILITIES/ INFORMATION

1. The government will provide, to the awardee:

1.1 As built/signal flow drawings of the room to the Contractor.

1.2 Provide uninterrupted access to all rooms as necessary during normal business hours, with necessary escorts, for the duration of Contractor visits.

12. QUALITY ASSURANCE SURVEILLANCE PLAN

Performance Standards define required performance for specific tasks. The Government performs surveillance to determine if the contractor exceeds, meets, or does not meet these standards. The Government may utilize the Performance Based Service Assessment Survey, provided as Attachment E, or other methods to compare contractor performance to the Acceptable Levels of Performance (ALPs).

12.1 METHODS OF SURVEILLANCE

Various methods exist to monitor performance. The COR shall use any or several of the surveillance methods listed below in the administration of this QASP.

1. 100% Inspection (evaluates all outcomes) - Each month, the COR shall review all of the contractor’s performance/generated documentation and document results accordingly. This assessment shall be placed in the COR’s QA file.

How do you Validate

· Diagnose and repair minor equipment issues or failures.

· Provide a phone response to any issues with 2 hours of calling and onsite response within 24 hours for critical issues and 72 hours for non-critical issues. Equipment and systems are operational and ready for events in conference center.

· Conduct quarterly onsite visit to check the status or the equipment and execute preventative maintenance.

What is the ideal performance standard?

· Events will be able to be held successfully in room 230.

12.2 FREQUENCY OF MEASUREMENT

During task order performance, the COR will periodically analyze whether the negotiated frequency of surveillance is appropriate for the work being performed, and at a minimum shall be twice a year.

12.3 ACCEPTABLE PERFORMANCE LEVELS (APLS)

Define Quality Goal:

1. Equipment operational and available for service; no downtime.

Positive Impact to OA/HRA:

1. Events will be able to be held (error free) in the G.V. Sonny Montgomery Room 230. No down equipment.

Standard Surveillance Method Outcome

12.4 DOCUMENTING PERFORMANCE

Acceptable Performance The Government shall document acceptable performance in accordance with the chart above. Any report may become a part of the supporting documentation for any contractual action.

Unacceptable Performance When unacceptable performance occurs, the COR shall inform the CO. This will always be in writing although when circumstances necessitate immediate verbal communication, that communication will be followed in writing. The COR shall document the discussion and place it in the COR file.

When the CO determines formal written communication is required, the COR shall prepare a Contract Discrepancy Report (CDR) and present it to the contractor's program manager.

The contractor shall acknowledge receipt of the CDR in writing to the CO. The CDR will state how long after receipt the contractor has to take corrective action. The CDR will also specify if the contractor is required to prepare a corrective action plan to document how the contractor shall correct the unacceptable performance and avoid a recurrence. The CO shall review the contractor's corrective action plan to determine acceptability.

Any CDRs may become a part of the supporting documentation for any contractual action deemed necessary by the CO.

13. SECURITY AND PRIVACY REQUIREMENTS

13.1 POSITION/TASK RISK DESIGNATION LEVEL(S)

The position sensitivity and the level of background investigation commensurate with the required level of access for the following tasks within the Performance Work Statement are:

Position Sensitivity and Background Investigation Requirements by Task

The Tasks identified above, and the resulting Position Sensitivity and Background Investigation requirements identify, in effect, the Background Investigation requirements for Contractor individuals, based upon the tasks the particular Contractor individual will be working. The submitted Contractor Staff Roster must indicate the required Background Investigation Level for each Contractor individual based upon the tasks the Contractor individual will be working, in accordance with their submitted proposal.

13.2 CONTRACTOR PERSONNEL SECURITY REQUIREMENTS

13.2.1 Contractor Responsibilities:

A. The Contractor shall prescreen all personnel requiring access to the computer systems to ensure they maintain the appropriate Background Investigation, and are able to read, write, speak, and understand the English language.

B. The Contractor shall bear the expense of obtaining background investigations. Within 3 business days after award, the Contractor shall provide a roster of Contractor and Subcontractor employees to the COR to begin their background investigations in accordance with the ProPath template. The Contractor Staff Roster shall contain the Contractor’s Full Name, Date of Birth, Place of Birth, individual background investigation level requirement (based upon Section 7.0 Tasks), etc. The Contractor shall submit full Social Security Numbers either within the Contractor Staff Roster or under separate cover to the COR. The Contractor Staff Roster shall be updated and provided to VA within 1 day of any changes in employee status, training certification completion status, Background Investigation level status, additions/removal of employees, etc. throughout the Period of Performance. The Contractor Staff Roster shall remain a historical document indicating all past information and the Contractor shall indicate in the Comment field, employees no longer supporting this contract. The preferred method to send the Contractor Staff Roster or Social Security Number is by encrypted e-mail. If unable to send encrypted e-mail, other methods which comply with FIPS 140-2 are to encrypt the file, use a secure fax, or use a traceable mail service.

C. The Contractor should coordinate the location of the nearest VA fingerprinting office through the COR. Only electronic fingerprints are authorized.

D. The Contractor shall ensure the following required forms are submitted to the COR within 5 days after contract award:

1. For a Tier 1/Low Risk designation:

0. OF-306

0. DVA Memorandum – Electronic Fingerprints

The Contractor personnel shall submit all required information related to their background investigations (completion of the investigation documents (SF85, SF85P, or SF 86) utilizing the Office of Personnel Management’s (OPM) Electronic Questionnaire for Investigations Processing (e-QIP) after receiving an email notification from the Security and Investigation Center (SIC).

The Contractor employee shall certify and release the e-QIP document, print, and sign the signature pages, and send them encrypted to the COR for electronic submission to the SIC. These documents shall be submitted to the COR within 3 business days of receipt of the e-QIP notification email. (Note: OPM is moving towards a “click to sign” process. If click to sign is used, the Contractor employee should notify the COR within 3 business days that documents were signed via eQIP).

E. The Contractor shall be responsible for the actions of all personnel provided to work for VA under this contract. In the event that damages arise from work performed by Contractor provided personnel, under the auspices of this contract, the Contractor shall be responsible for all resources necessary to remedy the incident.

F. A Contractor may be granted unescorted access to VA facilities and/or access to VA Information Technology resources (network and/or protected data) with a favorably adjudicated Special Agreement Check (SAC) or “Closed, No Issues” (SAC) fingerprint results, training delineated in VA Handbook 6500.6 (Appendix C, Section 9), and the signed “Contractor Rules of Behavior.” However, the Contractor will be responsible for the actions of the Contractor personnel they provide to perform work for VA. The investigative history for Contractor personnel working under this contract must be maintained in the database of the Office of Personnel Management (OPM).

G. The Contractor, when notified of an unfavorably adjudicated background investigation on a Contractor employee as determined by the Government, shall withdraw the employee from consideration in working under the contract.

Failure to comply with the Contractor personnel security investigative requirements may result in loss of physical and/or logical access to VA facilities and systems by Contractor and Subcontractor employees and/or termination of the contract for default.

Identity Credential Holders must follow all HSPD-12 policies and procedures as well as use and protect their assigned identity credentials in accordance with VA policies and procedures, displaying their badges at all times, and returning the identity credentials upon termination of their relationship with VA.

Contractor employees shall complete a VA Systems Access Agreement if they are provided access privileges as an authorized user of the computer system of VA.

13.2.3 Physical Security and Safety Requirements

The Contractor and their personnel shall follow all VA policies, standard operating procedures, applicable laws, and regulations while on VA property. Violations of VA regulations and policies may result in citation and disciplinary measures for persons violating the law.

a. The Contractor and their personnel shall wear visible identification at all times while they are on the premises.

b. VA does not provide parking spaces at the work site; the Contractor must obtain parking at the work site if needed. It is the responsibility of the Contractor to park in the appropriate designated parking areas. VA will not invalidate or make reimbursement for parking violations of the Contractor under any conditions.

c. Smoking is prohibited inside/outside any building other than the designated smoking areas.

d. Possession of weapons is prohibited.

e. The Contractor shall obtain all necessary licenses and/or permits required to perform the work, with the exception of software licenses that need to be procured from a Contractor or vendor in accordance with the requirements document. The Contractor shall take all reasonable precautions necessary to protect persons and property from injury or damage during the performance of this contract.

13.2.4 Confidentiality and Non-Disclosure

0. The Contractor shall follow all VA rules and regulations regarding information security to prevent disclosure of sensitive information to unauthorized individuals or organizations.

0. The VA CO will be the sole authorized official to release in writing, any data, draft deliverables, final deliverables, or any other written or printed materials pertaining to this contract. The Contractor shall release no information. Any request for information relating to this contract presented to the Contractor shall be submitted to the VA CO for response.

0. Contractor personnel recognize that in the performance of this effort, Contractor personnel may receive or have access to sensitive information, including information provided on a proprietary basis by carriers, equipment manufacturers and other private or public entities. Contractor personnel agree to safeguard such information and use the information exclusively in the performance of this contract. Contractor shall follow all VA rules and regulations regarding information security to prevent disclosure of sensitive information to unauthorized individuals or organizations as enumerated in this section and elsewhere in this Contract and its subparts and appendices.

0. Contractor shall limit access to the minimum number of personnel necessary for contract performance for all information considered sensitive or proprietary in nature. If the Contractor is uncertain of the sensitivity of any information obtained during the performance this contract, the Contractor has a responsibility to ask the VA CO.

0. Contractor shall train all of their employees involved in the performance of this contract on their roles and responsibilities for proper handling and nondisclosure of sensitive VA or proprietary information. Contractor personnel shall not engage in any other action, venture or employment wherein sensitive information shall be used for the profit of any party other than those furnishing the information. The sensitive information transferred, generated, transmitted, or stored herein is for VA benefit and ownership alone.

0. Contractor shall maintain physical security at all facilities housing the activities performed under this contract, including any Contractor facilities according to VA-approved guidelines and directives. The Contractor shall ensure that security procedures are defined and enforced to ensure all personnel who are provided access to patient data must comply with published procedures to protect the privacy and confidentiality of such information as required by VA.

0. Contractor must adhere to the following:

1) The use of “thumb drives” or any other medium for transport of information is expressly prohibited.

2) Controlled access to system and security software and documentation.

3) Recording, monitoring, and control of passwords and privileges.

4) All terminated personnel are denied physical and electronic access to all data, program listings, data processing equipment and systems.

5) VA, as well as any Contractor (or Subcontractor) systems used to support development, provide the capability to cancel immediately all access privileges and authorizations upon employee termination.

6) Contractor PM and VA PM are informed within twenty-four (24) hours of any employee termination.

7) Acquisition sensitive information shall be marked "Acquisition Sensitive" and shall be handled as "For Official Use Only (FOUO)".

8) Contractor does not require access to classified data.

0. Regulatory standard of conduct governs all personnel directly and indirectly involved in procurements. All personnel engaged in procurement and related activities shall conduct business in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality and with preferential treatment for none. The general rule is to strictly avoid any conflict of interest or even the appearance of a conflict of interest in VA/Contractor relationships.

0. VA Form 0752, Confidentiality of Sensitive Information Non-Disclosure Agreement, shall be completed by all Contractor employees that receive Government furnished laptops, and shall be provided to the CO before any work is performed. In the case that Contractor personnel are replaced in the future, their replacements shall complete VA Form 0752 prior to beginning work.

13.3 APPLICABLE VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY LANGUAGE (per VA HANDBOOK 6500.6, APPENDIX C, MARCH 12, 2010)

13.3.1 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.

13.3.2 ACCESS 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 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 (e.g., Business Associate Agreement, Section 3G), the Contractor/Subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor.

e. The Contractor or Subcontractor must notify the 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.

13.3.3 VA INFORMATION CUSTODIAL LANGUAGE

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

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

c. Prior to termination or completion of this contract, Contractor/Subcontractor must not destroy information received from VA, or gathered/created by the Contractor in the course of performing this contract without prior written approval by 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 CO within 30 days of termination of the contract.

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

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

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

g. 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 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 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 CO for response.

13.3.4 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 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.

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

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

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

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

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

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

2) Description of the event, including:

a) date of occurrence.

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

3) Number of individuals affected or potentially affected.

4) Names of individuals or groups affected or potentially affected.

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.

6) Amount of time the data has been out of VA control.

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

8) Known misuses of data containing sensitive personal information, if any.

9) Assessment of the potential harm to the affected individuals.

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

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.

d. Based on the determinations of the independent risk analysis, the Contractor shall be responsible for paying to 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:

1) Notification.

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

3) Data breach analysis.

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

5) One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and

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

13.3.6 TRAINING

a. All Contractor employees and Subcontractor employees requiring access to VA information and VA information systems shall complete the following before being granted access to VA information and its systems:

1) Successfully complete the VA Privacy and Information Security Awareness and Rules of Behavior course (TMS #10176) and complete this required…