36C24725Q0337.docx

36C24725Q0337

GENERAL INFORMATION

Central Alabama Veterans Health Care

215 Perry Hill Road Montgomery AL 36109-3798

POINT OF CONTACT*

Contract Specialist Monica Reed Monica.Reed@va.gov Email Only

PLACE OF PERFORMANCE

W.J.B. Dorn VA Medical Center

6439 Garners Ferry Road

Columbia South Carolina

ADDITIONAL INFORMATION

AGENCY’S URL

URL DESCRIPTION

AGENCY CONTACT’S EMAIL ADDRESS

EMAIL DESCRIPTION

DESCRIPTION

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Federal Acquisition Regulation (FAR) subpart 12.6, “Streamlined Procedures for Evaluation and Solicitation for Commercial Items,” as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotations are being requested, and a written solicitation document will not be issued.

This solicitation is issued as A SDVOSB set-aside, therefore, all offerors must be registered in Veterans Small Business Certification (VetCert) and SAM at the time of quote submittal.

This solicitation is a request for quotations (RFQ). The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2022-06/05-26-2022.

The associated North American Industrial Classification System (NAICS) code for this procurement is 492110 with a small business size standard of 1500 Employees The Network Contracting Office 7 is seeking Courier Services for the William Jennings Bryan Dorn VA Medical Center located at 6439 Garners Ferry Road in Columbia, South Carolina.

All questions regarding this RFQ must be in writing and may be sent by e‐mail to Monica.Reed@va.gov. Questions must be received no later than February 03, 2025 at 10:00 AM ET. No further questions will be accepted after that date and time.

You are reminded that representatives from your company SHALL NOT contact any VA Medical Center employees to discuss this RFQ during this RFQ process. All questions and concerns regarding this RFQ shall be directed to the Contracting Officer (CO).

Quotes must be received by February 13, 2025, by 10:00 AM ET. Email your quote to Monica.Reed@va.gov. The subject line must have the solicitation the offeror is responding to listed. There will be no automated email notification of receipt of quotes. All quotes received without requested documentation will not be considered.

a. The offeror will submit all documents in PDF form, preferably one document, with no more than ten (10) pages. Not providing all the required documents above along with not following the instructions for submission will result in an unacceptable quote.

Combined Synopsis/Solicitation Notice Combined Synopsis/Solicitation Notice

Combined Synopsis/Solicitation Notice

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY

CODE

10.

THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL

BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b.

RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

UEI:

EFT:

PHONE:

FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF

SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only) 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND

TITLE OF SIGNER (TYPE OR PRINT)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. NOV 2021)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

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

36C24725Q0337 01-27-2025 Monica Reed email only 02-13-2025 10:00am

EST

36C247 Department of Veterans Affairs Central Alabama Veterans Health Care 215 Perry Hill Road Montgomery AL 36109-3798 X X 492110 1500 Employees N/A X See Delivery Schedule

Department of Veterans Affairs Central Alabama Health Care System West Campus Perry Hill Road Montgomery AL 36109-3798

Department of Veterans Affairs

FMS-VA-2(101)

Financial Services Center PO Box 149971 Austin TX 78714-9971 See CONTINUATION Page lease reference Statement of Work and Price Cost delivery Please make sure all fill-ins are complete to include the signature.

Please submit your CPARS past performance and capability statement.

Return SF1449 in its entirety to include all amendments signed.

Failure to adhere to all the above offeror will not be considered.

See CONTINUATION Page X X X Sheryl Harris Contracting Officer Page 1 of Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

1. Contract Administration: All contract administration matters will be handled by the following individuals:

a. CONTRACTOR:

b. GOVERNMENT: Contracting Officer 36C247

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.

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

B.2 PRICE/COST SCHEDULE ITEM INFORMATION

Courier Transport Services of Medical Supplies, Medications, patients, and staff. INSIDE RADIUS OF 25 MILES FROM DORN VA HOSPITAL (ESTIMATING 66 TRIPS/MONTH) Contract Period: Base POP Begin: 03-01-2025 POP End: 02-28-2026

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 26-50 MILES PER TRIP (ESTIMATING 50 TRIPS PER MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 51-75 MILES PER TRIP (ESTIMATING 20 TRIPS/MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 76-100 MILES PER TRIP (ESTIMATING 5 TRIPS/MONTH)

Courier Transport Services of Medical supplies, medications, patients, and staff. WAIT TIME

Courier Transport Services of Medical Supplies, Medications, patients, and staff. INSIDE RADIUS OF 25 MILES FROM DORN VA HOSPITAL (ESTIMATING 66 TRIPS/MONTH) Contract Period: Option 1 POP Begin: 03-01-2026 POP End: 02-28-2027

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 26-50 MILES PER TRIP (ESTIMATING 50 TRIPS PER MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 51-75 MILES PER TRIP (ESTIMATING 20 TRIPS/MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 76-100 MILES PER TRIP (ESTIMATING 5 TRIPS/MONTH)

Courier Transport Services of Medical supplies, medications, patients, and staff. WAIT TIME

Courier Transport Services of Medical Supplies, Medications, patients, and staff. INSIDE RADIUS OF 25 MILES FROM DORN VA HOSPITAL (ESTIMATING 66 TRIPS/MONTH) Contract Period: Option 2 POP Begin: 03-01-2027 POP End: 02-28-2028

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 26-50 MILES PER TRIP (ESTIMATING 50 TRIPS PER MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 51-75 MILES PER TRIP (ESTIMATING 20 TRIPS/MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 76-100 MILES PER TRIP (ESTIMATING 5 TRIPS/MONTH)

Courier Transport Services of Medical supplies, medications, patients, and staff. WAIT TIME

Courier Transport Services of Medical Supplies, Medications, patients, and staff. INSIDE RADIUS OF 25 MILES FROM DORN VA HOSPITAL (ESTIMATING 66 TRIPS/MONTH) Contract Period: Option 3 POP Begin: 03-01-2028 POP End: 02-28-2029

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 26-50 MILES PER TRIP (ESTIMATING 50 TRIPS PER MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 51-75 MILES PER TRIP (ESTIMATING 20 TRIPS/MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 76-100 MILES PER TRIP (ESTIMATING 5 TRIPS/MONTH)

Courier Transport Services of Medical supplies, medications, patients, and staff. WAIT TIME

Courier Transport Services of Medical Supplies, Medications, patients, and staff. INSIDE RADIUS OF 25 MILES FROM DORN VA HOSPITAL (ESTIMATING 66 TRIPS/MONTH) Contract Period: Option 4 POP Begin: 03-01-2029 POP End: 02-28-2030

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 26-50 MILES PER TRIP (ESTIMATING 50 TRIPS PER MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 51-75 MILES PER TRIP (ESTIMATING 20 TRIPS/MONTH)

Courier Transport Services of Medical Supplies, medications, patients, and staff. RADIUS OF 76-100 MILES PER TRIP (ESTIMATING 5 TRIPS/MONTH)

Courier Transport Services of Medical supplies, medications, patients, and staff. WAIT TIME

B.3 DELIVERY SCHEDULE

WJD VA Medical Center 6439 Garners Ferry Road Columbia, SC 29209

USA

(803) 776-4000 ext 6479 Keith.Maddox@va.gov

STATEMENT OF WORK

COURIER SERVICES

GENERAL INFORMATION:

1. Title of Project:

a. Courier Services

2. Scope of Work:

a. The contractor shall provide courier services to transport medical supplies, prescription medications, medical records, radiology results on cd or film, laboratory specimens and cultures, and VA staff when appropriate on a routine or emergency basis when necessary for the WJB Dorn Medical Center.

b. 24 hour/7 days a week including holidays and weekends.

c. All travel is for (in and around) Columbia, SC.

d. Contractor shall provide pricing for mileage more than 50 miles.

3. Background:

The WJB Dorn VA Medical Center is an in/out -patient facility, encompassing acute medical, surgical, psychiatric, and short-term & long-term care. The hospital is in Columbia, South Carolina and provides primary, secondary, and some tertiary care. Community-Based Outpatient Clinics (CBOCs) are located at Anderson, Greenville, Florence, Orangeburg, Rock Hill, Sumter, and Spartanburg, South Carolina.

4. Period of Performance:

Begins on the date of award and continue for a period of one year with the Government having the option to renew for four—one-year options.

Base Year + 4 Option Year

5. Payment Terms:

Net 30 Days after receipt of properly prepared invoice.

6. Place of Performance:

WJB Dorn VAMC 6439 Garners Ferry Rd.

Columbia, SC 29209

7. Performance Requirements:

The contractor shall provide courier services to transport medical supplies, prescription medications, medical records, radiology results on cd or film, laboratory specimens and cultures, and VA staff when appropriate on a routine or emergency basis when necessary for the Dorn Medical Center. Twenty-four (24) hour and seven (7) days a week, Monday thru Sunday, coverage is required to include holidays and weekends. Federal Holidays are defined as: New Year’s Day, Martin Luther King jr. Birthday, Washington’s Birthday, Memorial Day, Juneteenth Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day, and Christmas Day. When a holiday falls on a Sunday, the following Monday will be observed as a legal holiday. When a holiday falls on a Saturday, the preceding Friday is observed by U. S. Government agencies.

All travel is within 100 miles of the city of Columbia, SC.

GENERAL REQUIREMENTS:

1. The contractor shall provide pick-up and delivery services seven days per week, 24 hours a day, including Holidays and weekends.

2. The contractor shall deliver medical supplies, prescription medication, medical records, radiology results on cd or film, and laboratory specimens and cultures and VA staff when appropriate on a routine or emergency basis when necessary. Pick up and/or delivery will be made within 45 minutes of the requested time.

3. The contractor is required to be certified to transport hazardous material due to the possibility of transporting laboratory specimens.

4. Drop off/pickup locations and POC numbers include, but not limited to:

a. Emergency Department, Building 100, extension 7466.

b. After-hours pick-up and delivery (after 4:00PM daily weekends and holidays) will be to the Administrative Officer of the Day (AOD) office, building 100 located at the Emergency Department, extension 7200 or 7201.

c. Travel Office (8:00 am-4:00pm Monday thru Friday, excluding federal holidays) Building 100, extension 7156 or 7181.

d. Pharmacy Service, Building 100, extension 6730 and 7215.

(8:00am-4:00pm), and 7219 (4:00pm-8:00am).

5. Dorn VAMC reserves the right to adjust the hours and locations as needed. The COR will notify the contractor within two days if there are any additions or changes.

6. The contractor is NOT responsible for any special supplies or equipment needed to deliver packages to other facilities. This shall be provided by the VA staff.

7. The contractor IS responsible for ensuring the safe delivery of specimen, supplies and accompanied staff member.

8. Contractor is responsible for training transport personnel in appropriate safety and transporting procedures suitable for hazardous material transports.

QUALITY CONTROL:

1. The contractor shall develop and maintain a quality control program that ensures courier services are performed in accordance with these specifications. The contractor shall develop and implement procedures to track, identify, prevent, and remedy and ensure non-recurrence of unsatisfactory services.

2. The contractor shall provide a method to accept and resolve customer complaints and notify the COR of the complaint and resolution.

3. The contractor shall immediately notify the COR upon receipt of a customer complaint in order that joint validation may be accomplished. The contractor is responsible for quality control and specification compliance.

CONTRACTOR COURIER/DRIVERS

1. The contractor shall be responsible for furnishing all vehicles, personnel, equipment and supplies, vehicle fuel, uniforms, name tags, and/or badges for performance of services under this contract.

2. As a non-personal Services contract, contractor personnel are not to be considered VA employees for any purpose. Contractor retains all control over personnel and responsibility for direct supervision.

3. The vehicle used in the performance of this contract must be licensed and meet the minimum requirements by the states and cities operated therein.

4. Contractor will ensure that all drivers utilized under this contract will be licensed in accordance with the laws of the State of South Carolina, for the transportation purposes for which this contract is intended.

5. Contractor personnel shall wear visible identification always while on the premises of any Federal property.

6. A record of each driver as to character and physical capabilities for performing as a courier must be maintained and made available to the Department of Veterans Affairs Medical Center upon request for inspection.

7. The contractor personnel performing services to the Government shall always conduct themselves in a professional manner, present a neat appearance and be easily recognized as a contract employee by having the company name affixed to the clothing uniform.

CONTRACTOR VEHICLES:

1. Contractor will maintain registration, licensing and insurance as required by the State of South Carolina on all vehicles utilized under this contract, for the transportation purposes for which his contract is intended.

2. Contractor will ensure that all vehicles are designed and sized appropriately to provide services descried in this contract. All vehicles must be maintained in accordance with Manufacturers recommendations and Title 56 Chapter 5 Article 35 of South Carolina law.

3. It is the responsibility of the Contractor to park in the appropriate designated parking areas in accordance with State and Federal laws.

SECURITY REQUIREMENTS:

· The contractor and their personnel shall be subject to the same Federal laws, regulations, standards, and VA policies as VA personnel, regarding information and information system security. These include but are not limited to Federal Information Security Management Act (FISM), Appendix III of OMB Circular A-130, and guidance and standards, available from the Department of Commerce’s national Institute of Standards and Technology (NIST). This also includes the use of common security configurations available from NIST’s Web site at:

INVOICE:

1. Payment will be made upon receipt of a properly prepared detailed invoice, prepared by the Contractor, and submitted through Tungsten Network (formerly known as OB10) http://www.tungsten-network.com/us/en/. A properly prepared invoice shall contain:

a) Invoice Number and Date

b) Contractor’s Name and Address

c) Accurate Purchase Order Number

d) Supply or Service provided.

e) Period Supply or Service Provided

f) Total Amount Due

2. Please begin submitting your electronic invoices through the Tungsten Network for payment processing, free of charge.

3. If you have questions about the e-invoicing program or Tungsten Network, contact information is as follows:

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

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

· FSC e-Invoice Contact Information: 1-877-353-9791

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

d. Web Address: HTTP://WWW.FSC.VA.GOV/EINVOICE.ASP

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 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 onsite inspections of contractor and subcontractor IT resources to ensure data security controls, separation of data and job duties, and destruction/media sanitization procedures are in compliance with VA directive requirements.

c. Prior to termination or completion of this contract, contractor/ subcontractor must not destroy information received from VA, or gathered/ created by the contractor in the course of performing this contract without prior written approval by 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 particulars 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 15 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 vulnerability scanning, system patching and change management procedures, and the completion of an acceptable contingency plan for each system. The contractor's security control procedures must be equivalent to those procedures used to secure VA systems. A Privacy Impact Assessment (PIA) must also be provided to the COR and approved by VA Privacy Service prior to operational approval. All external Internet connections to VA's network involving VA information must be reviewed and approved by VA prior to implementation.

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. 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 pre-approved 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 COR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/ subcontractor has access.

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

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

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

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)…