36C24419Q0947-0004000.docx

BUSINESS ASSOCIATE AGREEMENT BETWEEN THE DEPARTMENT OF VETERANS AFFAIRS VETERANS HEALTH ADMINISTRATION, LEBANON VA MEDICAL CENTER, AND <COMPANY/ORGANIZATION>

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 NUMBERED 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 amendment, 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) 09-06-2019 same as RFQ 00244 Department of Veterans Affairs Network Contracting Office 4

00244 Department of Veterans Affairs Network Contracting Office 4

To all Offerors/Bidders

36C24419Q0947 09-06-2019

X X

X RE: Request for Quote (RFQ) | 5-year, IDIQ TAXI Service | VA Lebanon Medical Center, Lebanon, PA

This Amendment# (see block 2) to the RFQ# (see block 9A) provides the follow updates:

1. Updated Performance Work Statement (PWS): read thoroughly

2. Updated PWS now includes Privacy requirements; based on VHA Handbook 6500.6, Appendix C

3. Updated: 'Price/ Cost Schedule' with the correct beginning and ending Period of Performance (POP) dates.

POP are: 10/6/2019 thru 10/5/2024: Include the Schedule with these dates with Submission

4. Example of a BAA (Business Associate Agreement) for view only and will be required by Awardee (do not complete)

A.1 PRICE/COST SCHEDULE | TAXI SERVICES | VA LEBANON

Note: The Government shall order the below specified minimum contract value of services and shall order up to and including the below specified maximum contract value of services through task orders under this basic IDIQ contract for all ordering periods. The maximum amount under this contract is not guaranteed.

· IDIQ contract Minimum: $15,000.00

· IDIQ contract Maximum: $300,000.00

ITEM NUMBER

DESCRIPTION

TAXI SERVICES

‘Estimated’

QUANTITY

YEAR 1

Mileage, per year

Contract Period, Year 1:

POP Begin: 10-06-2019 POP End: 10-05-2020

12,000

MILE

TOTAL FOR YEAR 1

YEAR 2

Mileage, per year

Contract Period, Year 2:

POP Begin: 10-06-2020 POP End: 10-05-2021

12,000

MILE

TOTAL FOR YEAR 2

YEAR 3

Mileage, per year

Contract Period, Year 3:

POP Begin: 10-06-2021 POP End: 10-05-2022

12,000

MILE

TOTAL FOR YEAR 3

YEAR 4

Mileage, per year

Contract Period, Year 4:

POP Begin: 10-06-2022 POP End: 10-05-2023

12,000

MILE

TOTAL FOR YEAR 4

YEAR 5

Mileage, per year

Contract Period, Year 5:

POP Begin: 10-06-2023 POP End: 10-05-2024

12,000

MILE

TOTAL FOR YEAR 5

GRAND TOTAL

ALL PERIOD OF PERFORMANCES

*To Be Determined (TBD)

PERFORMANCE WORK STATEMENT

TAXI TRANSPORTATION SERVICES

1. GENERAL INFORMATION

Title of Project: Transportation services for Veterans with a medical appointment at Lebanon VA Medical Center, 1700 South Lincoln Avenue, Lebanon, PA 17042.

Scope of Work: Services will require:

· Transporting Veterans to/from their home of residence for medical appointments at Lebanon VA Medical Center.

· Transporting Veterans to/from a Hoptel lodging location (see below) for medical appointments at Lebanon VA Medical Center.

· Services will be expected to be provided 24 hours/7 days per week.

· The following ten holidays are observed by the Federal Government: New Year’s Day, Martin Luther King’s Birthday, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, Christmas Day, and any other day specifically declared to be a national holiday by the President of the United States.

· Pick-Up location at Lebanon VA Medical Center

· Medical Center’s Emergency Department, Building 101.

Background: Provide Veteran transport services between Lebanon VA Medical Center and the Veteran’s residence and/or Hoptel lodging.

· These transportation services cannot be provided reliably by the staff or by volunteers of the VA Medical Center in Lebanon, PA. A contractual service is being sought to provide this service to our area Veterans.

· These transport services may also be utilized for indigent Veterans to be returned to their place of residence or to a local contracted hoptel for overnight stays for pending medical appointments.

Objectives: Hoptel is a VA program designed to provide temporary, overnight lodging accommodations to eligible Veterans, such as non-VA lodging- motel/hotel.

· Hoptel provides easier access to medical care for Veterans traveling a distance of 50 miles or more away.

· A stay in Hoptel is not an inpatient admission; therefore, nursing and caregiver assistance is not available.

· Veterans must be clinically stable and capable of self-care or be accompanied by an adult individual able to provide the necessary care in an unsupervised setting.

· VA transportation is provided Monday- Friday at assigned times only.

· Hoptel lodging locations are:

· Hampton Inn Manheim, 2764 Lebanon Road, Manheim, PA 17545

· Comfort Inn Jonestown, 16 Marsanna Lane, Jonestown, PA 17038

· Days Inn Jonestown, 3 Everest Lane, Jonestown, PA 17038

· Dependable transport services are necessary to move patients between the medical center and the facility and conversely in a timely manner to meet scheduled appointment times, or to provide indigent Veterans safe transport home.

· Travel needs may be one way or one round trip, with one trip to the lodging facility (see above) from the Lebanon VA Medical Center, and the return trip the next day back to the medical center for a medical appointment.

Performance Period: Five (5) year indefinite delivery/indefinite quality (IDIQ) contract to begin October 5, 2019, with an ultimate ending date of October 4, 2024.

General Service Requirements:

· Ability to provide safe transportation for our Veterans between Lebanon VA Medical Center and its contracted hoptel lodging facilities (see the three (3) lodging locations above) or to the Veteran’s personal home.

· Ability to provide short-notice transportation (within one-hour) from Lebanon VA Medical Center to the designated location.

· Ability to provide on-time (within 15 minutes), scheduled pick-up at the designated location for return trip to Lebanon VA Medical Center for appointment.

· Ability to provide billing in a flat per-mile rate.

Contractor Requirements:

· Certifications & Licensures: contractor must possess proof of drivers’ insurance, driving records/licenses, and proof of inspection/registrations for all vehicles used for transportation services. These must be provided to the Contracting Officer Representative (COR) at the award of the contract.

· The contractor will be responsible to ensure that Contractor personnel (service provider) providing work on this contract are fully trained and completely competent to perform the required work. All certifications need to be current through the term of the contract and, if renewal is required, it will be the contractor’s responsibility to ensure it is accomplished without interruption to services being provided.

· Contractor must provide a reliable and safe vehicle for transportation of Veteran. If the vehicle breaks down mid-transport, the contractor must have a back-up transport plan that will permit the Veterans to arrive to their destination in the required time frame.

· Contractor’s drivers shall not text message while driving. See FAR 52.223-18, Encouraging Contractor Policies to Ban Text Messaging While Driving”, which is incorporated into FAR 52.212-5, Commercial Terms and Conditions.

· In the event the Contractor driver is in an accident during transport, the contractor must contact Lebanon VA Medical Center immediately at

(717) 272-6621 and ask to speak to the Accountable Officer of the Day (AOD).

· The contractor, contractor’s employees, and contractor’s representatives shall treat each Veteran with respect, concern, and a professional approach to the Veteran’s dignity as an individual and a patient. All communication, both verbal and nonverbal with and in the presence of the Veteran shall be conducted in a professional manner. All Lebanon VA rules and regulations shall be adhered to by the contractor while on Federal property.

· The following acts are not permissible by the contractor that provides services under this contract or while on VA premises:

· Use of intoxicating liquors, narcotics or controlled substances of any kind (excluding doctors’ prescriptions which do not impair driver’s driving ability) while on duty. Also includes reporting for duty while under the influence of liquors, narcotics or controlled substances of any kind.

· Gambling in any form.

· Smoking or other uses of tobacco while on duty.

· Both Veterans and contractor are prohibited from smoking in vehicle or on VA property, Effective 10-01-2019

· VHA Directive 1085 Smoke-Free Policy for Patients, Visitors, Contractors, Volunteers and Vendors at VA Health Care Facilities

· https://www.va.gov/health/smokefree/

· Carrying of pistols, firearms, or concealed weapons.

· Resorting to physical violence to settle a dispute with a fellow employee, Veteran, or the general public while on duty.

· Spitting in prohibited places or any other unsanitary, offensive, or insensitive practices or behavior.

· Use of loud, indecent, or profane language and/or making threatening or obscene gestures towards patients or other employees.

· Stopping for personal business, including excessive use of restroom facilities, while vehicle is occupied by a passenger. The driver shall not leave the vehicle with the key in the ignition at any time.

· Engaging patients in a verbal confrontation in an attempt to settle a disagreement.

· Soliciting or accepting tips from Veterans, caregivers, or others while providing services under contract.

HEALTH CARE PERSONNEL INFLUENZA VACCINATION

· It is the responsibility of the contractor to ensure that all contract staff is compliant with the requirements outlined in Veterans Health Administrative (VHA) Directive 1192, Seasonal Influenza Prevention Program.

· The contractor shall maintain the following documentation:

· Documentation of vaccination, e.g., signed record of immunization from a health care provider or pharmacy, or a copy of medical records documenting the vaccination.

· Completed Health Care Personnel Influenza Vaccination Form (Attachment B of VHA Directive 1192), if unwilling or unable to receive the vaccine.

· VHA Directive 1192 requires all health care personnel (HCP) to participate in the seasonal influenza prevention program and outlines the key implementation steps. Health care personnel is defined in VHA Directive 1192 as all VA licensed and unlicensed, clinical and administrative, paid and unpaid, full- and part-time employees, intermittent employees, fee basis employees, VA contractors, students, researchers, volunteers, and trainees who work in VHA locations. HCP covered by the policy are expected to receive annual influenza vaccination. Those HCP unable or unwilling to be vaccinated are required to wear a face mask throughout the influenza season. Masks are available at entrances throughout the medical center.

· The contractor is required to submit annual certification to the COR of all contract staff performing services at VA facilities are in compliance with VHA Directive 1192.

Vehicles Requirements:

· Each vehicle used in the performance of this contract must meet all State and Local Laws, ordinances, codes, rules, and regulations.

· Taxi transport vehicles shall be of model and make to ensure safe and comfortable transport or passengers. Each vehicle must be clean and shall meet maintenance standards of the manufacturer. All preventative maintenance shall be documented, and records provided upon request to Contracting Officer (CO)/COR. Taxis must be designed so that Veterans can be restrained by a seat belt at all times when the vehicle is in motion.

· All vehicles shall be equipped with properly functioning heater/air conditioning, with adequate capacity to maintain the comfort level of the Veteran during transport.

· All vehicles shall be equipped with secured fire extinguishers, first aid kids, and 2 flashlights that are readily available and operable in the event of an emergency.

· All vehicles shall be well maintained and in a clean and orderly condition.

Contract Administration:

· Term of Contract: This contract will be an IDIQ, which provides for an indefinite quantity of supplies or services during a fixed period of time.

· Work Hours: The services covered by this contract shall be furnished by the contractor as 24 hours per day, 7 days per week.

· Personnel Policy: The contractor shall be responsible for protecting the personnel furnishing services under this contract. Thus, the contractor shall be responsible for ensuring that the contractor and/or the individual service provider complies with all laws and regulations applicable to labor and employment including but not limited to the following:

Worker’s compensation;

Professional liability insurance;

Health examinations; income tax withholding;

Social security payments

· The parties agree that such personnel shall not be considered VA employees for any purpose and shall be considered personnel (service provider) of the contractor.

· Medical Liability Insurance will be at the rates identified in the Federal Supply Schedule.

Payments/Termination:

· Lebanon VA Medical Center agrees to reimburse the contractor on a unit basis for resources furnished at the prices listed in the Schedule of Supplies/Services portion of this contract.

· Payment of sums due will be paid monthly upon submission (by the contractor) of a properly prepared invoice and receipt through Tungsten Network. All trip tickets must be electronically attached to the electronic invoice for service verification. Lebanon VA Medical Center will review the records for agreement with Lebanon VA Medical Center records and verify that the coverage provided for the month is in accordance with the contract. Lebanon Medical Center upon verification of the services billed will authorize payment.

· In the event that coverage is not provided in accordance with this contract, the payment to the contractor shall be reduced in direct ratio to the reduction in coverage. Any additional costs incurred by Lebanon VA Medical Center, as a result of obtaining coverage from a source other than the contractor, due to the contractor's failure to provide adequate coverage, will be assessed against the contractor.

· Termination: The Government may terminate this contract at any time upon at least 15 days' written notice by the CO to the contractor. The contractor, with the written consent of the CO, may terminate this contract upon at least 30 days' written notice to the CO.

Contractor Personnel Security Requirements:

· Position Sensitivity - The position sensitivity has been designated as Low Risk.

· Personnel (service provider) working under this contract will also be required to furnish the following prior to or at arrival at this VA facility located in Lebanon, PA:

· A State–issued driver’s license or State-issued identification containing a photograph. If the driver’s license or identification does not contain a photograph, identifying information should be included such as: name, date of birth, sex, height, color of eyes, and address, or a Military ID Card.

· Proof of Auto insurance.

· Proof of inspection/registration for all vehicles used for transportation services.

Quality Control: The contractor shall follow the quality control program to ensure services are performed in accordance with this PWS. The contractor shall implement procedures to identify, prevent, and ensure non-recurrence of defective services.

Quality Assurance: The government shall evaluate the contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan (QASP).

Records Management: Lebanon VA Medical Center Records Manager has determined records management language does not have to be included in the contract.

Business Associate Agreement (BAA): A Business Associate Agreement (BAA) will be required. The contractor will not have access to Protected Health Information (PHI) but will have access to VA sensitive information; such as the Veterans name, home address, location coming to and/or from, phone number, etc. This information is known as: Personally Identifiable Information (PII): Any information that can be used to distinguish one person from another. This type of information can be used to identify, contact or locate a single person.

The Privacy Officer (PO) shall be provided the awarded vendor’s identification information at the time of Contract award to determine if a local BAA requires execution. The BAA, whether National or Local, will be a separate document and not incorporated into the contract. An example of a BAA is included in this PWS for review only (not required to be filled out). This form will be completed at the time of Award by the Contracting Officer between the Awardee and the Department of Veterans Affairs.

Privacy and Security Requirements:

· Lebanon VA Medical Center Privacy Officer has determined that the vendor will have access to VA Sensitive Information (PII)

· Lebanon VA Medical Center Information Security Officer has determined that the vendor will not have access to VA Information Systems.

MARCH 12, 2010 VA HANDBOOK 6500.6

APPENDIX C

VA INFORMATION AND INFORMATION SYSTEM SECURITY/ PRIVACY LANGUAGE FOR INCLUSION INTO CONTRACTS, AS APPROPRIATE

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/subcontrator 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 COTR.

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 COTR, and approved by the VA Privacy Service in accordance with Directive 6507, VA Privacy Impact Assessment.

b. The contractor/subcontractor shall certify to the COTR 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 toperform;

(2) 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

(3) 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 ____ 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 ____ 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 COTR 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 COTR. 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 VAapproved 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. 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.

h. 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:

(1) Vendor must accept the system without the drive;

(2) VA’s initial medical device purchase includes a spare drive which must be installed in place of the original drive at time of turn-in; or

(3) VA must reimburse the company for media at a reasonable open market replacement cost at time of purchase.

(4) Due to the highly specialized and sometimes proprietary hardware and software associated with medical equipment/systems, if it is not possible for the VA to retain the hard drive, then;

(a) The equipment vendor must have an existing BAA if the device being traded in has sensitive information stored on it and hard drive(s) from the system are being returned physically intact; and

(b) Any fixed hard drive on the device must be non-destructively sanitized to the greatest extent possible without negatively impacting system operation. Selective clearing down to patient data folder level is recommended using VA approved and validated overwriting technologies/methods/tools. Applicable media sanitization specifications need to be preapproved and described in the purchase order or contract.

(c) 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.

6. 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 COTR 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.

7. 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.

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 the VA liquidated damages in the amount of $37.50 per affected individual to cover the cost of providing credit protection services to affected individuals consisting of the following:

(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.

8. SECURITY CONTROLS COMPLIANCE TESTING

On a periodic basis, VA, including the Office of Inspector General, reserves the right to evaluate any or all of the security controls and privacy practices implemented by the contractor under the clauses contained within the contract. With 10 working-day’s notice, at the request of the government, the contractor must fully cooperate and assist in a government-sponsored security controls assessment at each location wherein VA information is processed or stored, or information systems are developed, operated, maintained, or used on behalf of VA, including those…