36C24121R0051 0002.docx

5. PROJECT NUMBER (if applicable)

CODE

7.

ADMINISTERED BY

2. AMENDMENT/MODIFICATION NUMBER

CODE

6. ISSUED BY

8. NAME AND ADDRESS OF CONTRACTOR

4. REQUISITION/PURCHASE REQ. NUMBER

3. EFFECTIVE DATE

9A. AMENDMENT OF SOLICITATION NUMBER

9B. DATED

PAGE OF

PAGES

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED

BPA NO.

1. CONTRACT ID CODE

FACILITY CODE

CODE

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

E. IMPORTANT:

is extended,

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE

OF YOUR

ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY is not extended.

12. ACCOUNTING AND APPROPRIATION DATA

(REV. 11/2016)

is required to sign this document and return ___________ copies to the issuing office.

is not, A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

15C. DATE SIGNED

B. THE ABOVE NUMBERE

D CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES

SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

RESULT IN REJECTION OF YOUR

OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendmen t, and is received prior to the opening hour and date specified.

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER

Contractor

16C. DATE SIGNED

14. DESCRIPTION OF AMENDMENT/MODIFICATION

16B. UNITED

STATES OF AMERICA

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER

16A. NAME AND TITLE OF

CONTRACTING OFFICER

15B. CONTRACTOR/OFFEROR

STANDARD FORM 30

PREVIOUS EDITION NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.243 (Type or print) (Type or print) (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

(Number, street, county, State and ZIP Code) (If other than Item 6) (Specify type of modification and authority) (such as changes in paying office, appropriation date, etc.)

(If required)

(SEE ITEM 11)

(SEE ITEM 13)

(X)

CHECK

ONE

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF

SOLICITATIONS

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

(Signature of person authorized to sign) (Signature of Contracting Officer) None Department of Veterans Affairs

VA

Boston Healthcare System Contracting Officer (90C) 940 Belmont Street Brockton MA 02301 Department of Veterans Affairs VA Boston Healthcare System Contracting Officer (90C) 940 Belmont Street Brockton MA 02301 To all Offerors/Bidders

36C24121R0051 08-06-2021

X X X

See CONTINUATION Page The purpose of this amendment is to answer questions and provide an updated solicitation as follows:

Please see updated schedule of items.

Please see list of questions and answers.

Please see updated solicitation.

CONTRACT OFFICER

CONTINUATION PAGE

A.1 PRICE/COST SCHEDULE

ESTIMATED QUANTITIES: All quantities listed herein are estimated annual quantities. The Government is not obligated to purchase any specified amount of supplies/services under this contract but will be obligated to make payment for all services requested and received in the quantities and of the quality requested. The Government does not guarantee or imply that any fixed number of orders will be placed under the resultant contract.

GUARANTEED MINIMUM: The Government will order at least $5,000,000.00 in supplies/services during the base year of the contract. (Note: The guaranteed minimum order amount applies to the base year only. Award of the additional option period is not guaranteed nor is there a guaranteed minimum order amount in any given option period that is exercised.)

MAXIMUM TOTAL CONTRACT AMOUNT: The aggregate contract maximum over the term of the entire contract (base year and option years) is $44,000,000.

ITEM INFORMATION

Single Vision, in glass, plastic or polycarbonate; includes Tint: solid, gradient, U.V./coat, frames and case - includes regular (dress) frames - with Optician Services Contract Period: Base POP Begin: 10-28-2021 POP End: 10-27-2026

Bifocal Vision, In glass, plastic or polycarbonate; Includes tint: solid, gradient, U.V./coat, frames and case, includes regular (dress) frames - with Optician Services Contract Period: Base

Trifocal Vision, in glass, plastic or polycarbonate; Includes tint: solid, gradient, U.V./coat, frames and case, includes regular (dress) frames - with Optician Services

Progressive Bifocal In glass, plastic or polycarbonate; Includes tint: solid, gradient, U.V./coat, frames and case, includes regular (dress) frames - with Optician Services

Transition lens treatment; provide pricing as add-on to the per pair price of eyeglasses listed above, includes regular (dress) frames - with Optician Services - Non-branded

Hi-Index 1.67 lens treatment; provide pricing as add-on, includes regular (dress) frames - with Optician Services to the per pair price of eyeglasses listed above

Glass PGX - lens treatment; provide pricing as add-on to the per pair price of eyeglasses listed above, includes regular (dress) frames - with Optician Services

Slab Off-Prism Lenses lens treatment; provide pricing as add-on to the per pair price of eyeglasses listed above, includes regular (dress) frames - with Optician Services

Aspheric Lenticular/Cataract/Balanced/Prismatic Lenses lens treatment; provide pricing as add-on to the per pair price of eyeglasses listed above, includes regular (dress) frames - with Optician Services

Add on Safety Frames

Add on Hi Index lens treatment

Add on Titanium Frames

Minor Repairs/Services - replace screws, fixing frames, nosepads,temples; customer issues with prescription, includes regular (dress) frames and safety frames - with Optician Services

1. The answer to question 9 lays out 25 men's styles, 18 women's styles, and 4 unisex styles, for a total of 47 styles, and the answer to question 22 is in line with that stating the frame collection should have approximately 50 frames. The answer to question 30 states that 80 frame styles are being requested—is this a maximum per frame selection? So at least 50, but no more than 80 unique styles per frame selection?

ANSWER (A): Yes, at least 50 but no more than 80 sample frames per kit. If additional frames are needed beyond 80 to account for other styles, this can be captured in printed documentation.

2. The answer to question 9 specifies that women’s styles should include “10 different styles of zyl frames with small bridge”. What specific bridge sizes are considered “small”, and do all 10 styles need to have that specific “small” bridge size?

A: Small bridge sizes are considered 13-14mm and it is not required that all 10 styles need to have that specific small bridge.

3. The answer to question 24 clarifies the 3 titanium frame requirement as 3 for men, 3 for women, and then states “and/or 1 or 2 unisex options”. Is this in addition to, or can the 3 men/3 women include 1 or 2 unisex options so the total required for titanium stays at 6 frames? If the unisex frames constitute a separate requirement, can a specific number be supplied instead of “1 or 2”.

A: The unisex options can be included to equal 6 titanium frames.

4. Similar question for the answer to question 26. Are 10 total hypoallergenic frames (5 for men, 5 for women) being requested with the possibility of a few of those frames being unisex, or is there an additional requirement for an extra 2 or 3 unisex styles as well? If an extra requirement, can a specific number be supplied instead of “2 or 3”.

A: Yes, include a maximum of 2 unisex options for the total of 10 hypoallergenic frames.

5. The answer to question 28 states that safety frames are required. Can a specific number be supplied?

A: Maximum of 4 safety frame options.

6. The answer to question 30 is unclear. If part of the offeror’s frame kit is a single frame style that comes in 3 sizes and 4 colors, does the government want in the required sample kit at least 4 separate samples of that frame style--one sample of each size and one example of each color? If so, a frame selection of 50 minimum or 80 maximum required styles will lead to a frame sample kit of likely over 250 samples—and since 4 duplicate sets are being requested, that will be even more frame samples. Or, if there are 80 unique styles in an offeror’s frame selection, is the frame sample kit required for bid purposes only to include one sample of each frame style, so 80 total frame samples, with literature laying out all different sizes and colors available for each style, as is customary?

A: The sample kit of a maximum of 80 frames will include each size and color available. Literature can provide further clarifications if the colors available or all of the available sizes cannot be achieved within an 80-sample kit.

7. Section 2.3b lists a requirement for a large size up to 62-18-175. Was, perhaps, 62-18-155 meant instead? There are no commercially available frames in an exact eye size of 62-18-175 listed on Frames Data, nor any frames at all with a temple measurement of 175. 62-18-155 however allows for multiple options. Please clarify.

A: 62-18-155 is acceptable for the largest size. The 175 temple was an old requirement.

8. Please clarify the answer to question 9. The unisex requirements list only 4 total frames—2 metal and 2 zyl. It also says “Frames should be a variety of shapes and sizes from small to extra large.” Can “small” and “extra large” be clarified with specific sizes requirements if desired, or removed otherwise? If there are specific size requirements, more than 2 metal and 2 plastic frames may be required to meet all size range requirements for unisex styles. Can more than the 4 be supplied? Are the numbers listed minimums or maximums?

A: The unisex totals is increased to a maximum of 5 total frames – the sample provided can show the smallest and largest options, with three in-between, and literature can support the remaining available sizes.

9. Question 17 of Amendment 1 indicates VA planned to revise CLIN 0007. However, the new price schedule CLIN appears to be the same as the original solicitation. Please confirm the intended changes were completed.

A: Updated line items to remove “safety frames” and updated 0007 to remove “Hi Index”. Added “Hi Index” as an add on.

10. Please clarify question 21. VA states Buy America does not apply to the solicitation. But, Part 3 of the proposal requirements includes a Buy America certification. Please clarify. We expect Buy America does apply per FAR Part 25.100(b).

A: CORRECTION – The Buy American Act does apply

11. Question 32 indicates only chemical lens strengthening is allowed, even though both heat and chemical strengthening are approved by the FDA. Please provide a justification for this deviation from commercial standard or allow both methods.

A: The VISN 1 Lead Optometrist answered this question previously.

Chemical Tempering (Chemtempering) Strengthens glass lenses by putting the surface of the glass into compression. The process by which this occurs is the exchange of ions. During the chemtempering process lenses are submersed in a bath of molten salt at a prescribed temperature. The heat causes the smaller ions to leave the surface of the glass and the larger ions present in the molten salt to enter it. Once the lenses are removed from the bath and cooled, they shrink. The larger ions that are now present in the surface of the lens are crowded together. This creates a compressed surface, which results in a stronger lens that is more resistant to breaking.

Chemtempering creates a uniform layer of stress. This is because the ion exchange occurs uniformly on all surfaces. Unlike the air tempering process, chemtempering has no relationship to lens thickness. This difference is evident when lenses tempered in these two ways are viewed in crossed polarized light. The air- tempered lenses typically display various stress patterns; one of the most common resembles a Maltese cross. In the uniformly tempered lenses, such patterns do not exist. Drop-ball tests support the superior impact strength of chemtempering.

This statement is an accepted norm within the optical industry and this eyeglass contract demands that we use the superior chemical tempering process for fabrication of prescription glasses for our Veterans.

12. The new Quality Assurance Surveillance Plan (QASP) poses a variety of questions. See below. With the small adjustments suggested in the initial questions on this subject, it is likely the previous QASP would be more effective and useful to all stakeholders.

a. Price reductions are not used on any other VISN eyeglasses contract, to our knowledge. We suspect the administrative complexity in monitoring, validating and administering the reduction precludes feasible utilization of the incentive. All other VISN contracts utilize the CPARS system for contractor incentive. Will VISN 1 adjust the QASP to do the same?

A: Removed the monetary incentive from the QASP. Performance will be documented ultimately in CPARS.

b. The performance standard for “Volume” is outside the contractor’s control. The contractor should not be penalized for changes in the patient population. Please remove or clarify.

A: For the updated QASP – for Volume, the administrative requirement is for a quarterly report to be completed and submitted to the VA by the 15th day following the end of the quarter. No changes.

c. See “Patient Satisfaction.” Please confirm the VA is asking the contractor to report all initial customer service complaints by the next day. If so, given the volume of patients and the allowable contractual tolerance for contractor errors, that could be a significant reporting requirement for both the contractor and VA to manage. The current system (in VISN 1 and other contracts) is for the contractor to work with each patient to resolve their concerns and report that information to VA in periodic (monthly or quarterly) reports. We suggest VA adjusts this requirement to match the current VISN 1 expectation. Please confirm.

A: For the updated QASP - Change: customer concerns can be reported to the VA within 3 business days and notify the VA of what actions are being taken to resolve the complaint. A full accounting of the issue will remain in the quarterly report.

d. See “Access.” The ability of the contractor to see patients within a certain timeframe is dictated by factors largely outside the contractor’s control. Specifically, the contractor is providing a specific number of staff by contract, the patient volume may change over time, and the optical shop space is determined by VA. We agree the contractor should make best efforts to see patients as efficiently as possible. We also agree the contractor and VA could add additional contractor staff, as needed to meet patient volumes, by bilateral contract modification. However, the contractor should not be penalized on this standard since the contractor does not control all the factors that directly influence performance. Please remove or clarify.

A: The standards in the QASP are reasonable – for patients to be seen by an optician within 30 days, eyeglass delivery within 5 business days and repairs within 3 business days. If there is a VA site that has patient complaints re: timeliness for optician visits or eyeglass delivery, VISN 1 and the contractor will meet to discuss the complaints and design an action plan, giving the concentrator the opportunity to correct within a set timeframe. All factors including space and number of opticians will be considered, though the number of opticians is based on historical eyeglass volume.

e. See “Quality of Service.” ABO and/or AOA certification is not a commercial or state licensing requirement. Please remove or provide clarification on the deviation from commercial standards.

A: License requirements followed per state guidelines.

13. Question 39 requests that VISN 1 utilize similar standard for order delivery, relative to all other recent VISN eyeglasses contracts (7 business days, or more). Please either change to use the VA’s customary delivery requirement or explain the deviation from customary practice. Alternatively, VA could match the standard from the previous contract, which was referenced in the amendment, and is clarified here:

For context the current contract is a bridge based off the terms and conditions of the last long-term contract. In the last long-term contract, the expectation for delivery was established in the solicitation Q and A and reads:

“(Question) 8. Due to the rural nature of patients on the contract, can the delivery requirement be adjusted to shipment within 5 working days? We cannot control the delivery time once it hits the mail. Alternatively, the cost of using UPS to guarantee shipment overnight would be far higher than necessary. Excel Answer: 5 days to get out of the lab and mailed. Each company must have the capability to provide next day service for urgent/emergent issues.” (The Q and A referenced here is available upon request.)

A: The VISN 1 Contract is 5-business days; the 7-business days note was added by Contracting in error from another VISN contract.

Please find below some additional questions that we have regarding the VISN 1 Eyeglass Solicitation. Please kindly confirm receipt of this email and thank you in advance for taking the time to answer these questions. We appreciate it.

14. Please respectfully reconsider your response to question 5. It is customary for VA to issue a new PO in situations where the contractor has met its obligation of successfully shipping the eyeglasses to the Veteran as documented by the shippers (i.e., FedEx, USPS, UPS) tracking system.

A: The VA will review vendor documentation to support its efforts to ship eyeglasses. The VA reserves the right to accept it and issue a new PO or reject for insufficient documentation, depending upon the individual circumstances.

15. Part of question 9 was not answered. The question stated, “Titanium frames are significantly more expensive than standard metal or zyl frames and as it appears that VA is requesting titanium frames as part of the offerors sample kit, would VA please add a separate line item in the price/cost schedule for titanium frames as an add-on (similar to what was done for safety frames)?”.

A: add Titanium as an add-on.

16. The response to question 17 states that hi-index will be deleted from CLIN 0007. However, it appears that hi-index is still listed. Please revise.

A: completed.

17. Can VA please clarify the number of frames that are required to be included in each of the 4 frame sample kits? The answer to question 22 states approximately 50 while the response to question 30 states that 80 are requested and the response to question 9 adds up to 47.

A: Change: minimum of 50 but no more than 80 sample frames per kit. If additional frames are needed beyond 80 to account for other styles, this can be captured in printed documentation.

18. In reference to Factor 1- Experience please specify that as part of the narrative that offerors provide that they must explicitly state whether they performed the manufacturing themselves or if they subcontracted it to an outside manufacturer for all or part of the period of performance provided and similarly, for whether offerors performed the optician services themselves or if they subcontracted it to an outside provider for each contract specified as an answer to Factor 1- Experience.

A: Vendors will delineate if manufacturing and optician services are performed within the company or if one or both are subcontracted.

19. The price schedule as presented in section A.1 of Amendment 1 appears to show only one period of performance (POP) which begins on 10/28/21 and ends on 10/27/26 as opposed to having one base year and 4 option years. Throughout the solicitation the use of base and options years is referenced including in determining the best value (per Factor 2-Price on pg. 89). Can VA please provide a revised pricing schedule that provides a base year and 4 option years with quantities associated with each on which offerors can enter their pricing?

A: IDIQ with a 5-year performance period. No additional line items will be needed. Pricing for all 5 years should be built in.

20. The answer to question 21 states that the Buy America Act does not apply to the solicitation. As a result, do offerors still need to provide the Buy America Certificate as requested in Part 3: Miscellaneous?

A: CORRECTION: The Buy American Act does indeed apply

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.

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

36C24121R0051 08-06-2021 Cory Dionne

(774) 826-4806 09-03-2021

12:00 PM

EDT

Department of Veterans Affairs Network Contracting Office 1 Contracting Officer (90C) 940 Belmont Street Brockton MA 02301-5596 X X 339115 1000 Employees N/A X Department of Veterans Affairs VA New England Healthcare System

VISN 1

200 Springs Road, Bldg. #61 Bedford MA 01730 Department of Veterans Affairs Network Contracting Office 1 Contracting Officer (90C) 940 Belmont Street Brockton MA 02301

Department of Veterans Affairs Financial Services Center http://www.fsc.va.gov/einvoice.asp PO Box 149971 Austin TX 78714-9971 877-752-0900 See CONTINUATION Page The purpose of this solicitation is to award a firm fixed price Indefinite Delivery/Indefinite Quantity Contract to one contractor to provide Eyeglasses and related services as described in the Performance Work Statement in support of VA New England Healthcare System (VISN 1). The contractor shall provide all necessary personnel, supervision, labor, equipment, materials and disposal to provide this requirement. Indi vidual Task Orders will be placed to fund.

Period of Performance: 10/28/2021 - 10/27/2026 Wage Determinations are attached Please follow the instructions to offerors to meet the necessary criteria to provide this requirement.

See CONTINUATION Page X X

CONTRACT OFFICER

Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

INTENTIONALLY BLANK

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 36C241 Karla Rotondo Department of Veterans Affairs Network Contracting Office 1 Contracting Officer (90C) 940 Belmont Street Brockton MA 02301-5596

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

3. INVOICES: Invoices shall be submitted in arrears:

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

Department of Veterans Affairs Financial Services Center http://www.fsc.va.gov/einvoice.asp PO Box 149971 Austin TX 78714-9971 ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

B.2 IT CONTRACT SECURITY

VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY

1. GENERAL

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

2. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

a. A contractor/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, the contractor/subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor.

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

3. VA INFORMATION CUSTODIAL LANGUAGE

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

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

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

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

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

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

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

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

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

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

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

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

4. INFORMATION SYSTEM DESIGN AND DEVELOPMENT

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

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

c. The standard installation, operation, maintenance, updating, and patching of software shall not alter the configuration settings from the VA approved and FDCC configuration. Information technology staff must also use the Windows Installer Service for installation to the default "program files" directory and silently install and uninstall.

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

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

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

g. The contractor/subcontractor agrees to:

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

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

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

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

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

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

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

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

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

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

j. The vendor shall notify VA within 24 hours of the discovery or disclosure of successful exploits of the vulnerability which can compromise the security of the Systems (including the confidentiality or integrity of its data and operations, or the availability of the system). Such issues shall be remediated as quickly as is practical, but in no event longer than 10 days.

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

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

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

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

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

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

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

e. The contractor/subcontractor must conduct an annual self assessment on all systems and outsourced services as required. Both hard copy and electronic copies of the assessment must be provided to the 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.

f. 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 government furnished equipment (GFE) must be utilized in approved other equipment (OE) and must be funded by the owner of the equipment. All remote systems must be equipped with, and use, a VA-approved antivirus (AV) software and a personal (host-based or enclave based) firewall that is configured with a VA-approved configuration. Software must be kept current, including all critical updates and patches. Owners of approved OE are responsible for providing and maintaining the anti-viral software and the firewall on the non-VA owned OE.

g. All electronic storage media used on non-VA leased or non-VA owned IT equipment that is used to store, process, or access VA information must be handled in adherence with VA Handbook 6500.1, Electronic Media Sanitization upon: (i) completion or termination of the contract or (ii) disposal or return of the IT equipment by the contractor/subcontractor or any person acting on behalf of the contractor/subcontractor, whichever is earlier.