PWS - Facility Scrap and Recycling - Updated 9-30-2026.docx

B.2 PERFORMANCE WORK STATEMENT

Updated: 9/30/2026 Contract Title: Facility Scrap and Recycling Services — VA Northeast Ohio Healthcare System – Louis Stokes VA Medical Center and Supported Community Based Outpatient Clinics (CBOCs)

1. INTRODUCTION

This Performance Work Statement (PWS) establishes the performance requirements for the removal, recycling, and proper disposal of scrap materials generated by the Louis Stokes VA Medical Center (LSVAMC) and all associated offsite facilities. The contractor shall achieve timely, compliant, and efficient scrap removal outcomes that support safe operations, environmental stewardship, and regulatory compliance. Contractor performance will be measured against the standards identified in the Performance Requirements Summary (Section 8) and monitored in accordance with the Government's Quality Assurance Surveillance Plan (QASP).

2. BACKGROUND

The Louis Stokes VA Medical Center (541) generates thousands of pounds of scrap materials and unserviceable equipment each week. These materials must be removed and processed through authorized scrap and recycling contractors. Scrap may include metals, wood, plastics, ceramics, and equipment rendered unserviceable that cannot be disposed of in standard dunnage bins.

Due to limited storage space and unpredictable removal timelines, the VA requires a reliable scrap removal service capable of responding quickly and servicing multiple VA locations. The VA seeks to establish a contract structured as a base ordering period plus four additional ordering periods, to ensure continuity of these services. Services under this contract shall be performed on an indefinite-delivery, on-call/as-needed basis; no recurring fixed schedule of pickups is guaranteed, and actual service events will be governed solely by demand and issued in accordance with Section 3.5.

3. SCOPE

The contractor shall achieve the removal, recycling, and disposal of scrap materials from LSVAMC and all associated offsite locations, including all labor, equipment, transportation, and materials necessary to accomplish this outcome. The contractor shall furnish its own vehicle(s), with a minimum size of a 26-foot box truck or similar vehicle, to report on-premises at each site, load scrap materials directly, and transport them off-site for recycling or disposal. The average anticipated weight load per pickup is approximately 5,000 lbs.; see Section 3.4 for historical monthly weight data. No Government-leased or standing dumpster/roll-off container will be provided or maintained by the contractor under this contract. The Government estimates approximately 15 pickups per month across all listed sites, based on historical experience; the quantities identified in Section 3.3 are intentionally estimated above this historical level to account for anticipated growth and are the controlling figures for pricing and evaluation purposes. All disposal, tipping, processing, fuel, and other costs associated with performing a pickup — including disposal of non-recyclable materials — shall be included in the contractor's applicable per-pickup CLIN price and are not separately reimbursable by the Government. This is provided for planning purposes only and does not constitute a guaranteed minimum or maximum.

The Government reserves the right to add or remove any additional locations, Community Based Outpatient Clinics (CBOCs), or other facilities to the contract as they become available. Furthermore, the Government reserves the right to add, increase, or decrease the quantity, frequency, or scope of collections to allow for fluctuations in client demand that are otherwise unknown at the time of solicitation. The total contract value may increase up to 20% of the base award.

Required outcomes include:

· Scrap collection completed within required response times

· Freight and transportation of materials to authorized recycling/disposal facilities

· Recycling processing performed by authorized/licensed recyclers

· Proper disposal of non-recyclable materials in accordance with applicable regulations

· Return of recycling proceeds to the Government

3.1 SITE LIST AND ADDRESS REFERENCE TABLE

3.2 ORDERING AUTHORITY — WHO MAY REQUEST A PICKUP

All pickups under this contract are on-call/as-needed. Pickups shall be initiated ONLY by, or with the express prior permission of, one of the following:

· The VA Northeast Ohio Healthcare System (VANEOHS) NX – Equipment Team

· The Logistics Department

· The Contracting Officer (CO) No other individual, service, department, or site (including individual CBOC or clinic staff) is authorized to request, schedule, or direct a pickup under this contract. If the contractor receives a pickup request from anyone other than the NX Equipment Team, Logistics Department, or the CO, the contractor shall decline the request and shall verify authorization with one of the above parties before dispatching a vehicle. The contractor shall not be entitled to payment for any pickup performed at the direction of an unauthorized requester, and performing such an unauthorized pickup may be treated as a performance and invoicing discrepancy under Section 8.

The CO will issue one (1) funded annual task order per ordering period and individual pickups are authorized under the funded order by the NX/Logistics/CO per PWS 3.2.

3.3 ESTIMATED PICKUP VOLUME

The following pickup volumes are Government estimates for planning purposes only, provided on an on-call/as-needed basis, and do not constitute a guaranteed minimum or maximum. Estimated monthly pickup volume shall escalate by one (1) pickup per month, per site grouping, with each new ordering period, as follows:

Estimated Annual Pickup Totals (for planning/pricing purposes; derived from the monthly figures above):

AS A COURTESY, THE CONTRACTOR SHOULD MAKE EVERY EFFORT TO REMIND THE GOVERNMENT POC ONCE 80% USAGE OF A PARTICULAR CLIN'S ANNUAL ESTIMATED QUANTITY HAS BEEN REACHED. THE GOVERNMENT WILL INDEPENDENTLY TRACK USAGE AGAINST EACH CLIN AS WELL. THERE SHALL BE NO SERVICES PERFORMED BEYOND A CLIN'S ANNUAL ESTIMATED/NOT-TO-EXCEED QUANTITY WITHOUT A CONTRACT MODIFICATION.

3.4 HISTORICAL WEIGHT DATA (ESTIMATE ONLY)

The following represents the historical average monthly weight of scrap collected across all sites during the preceding 12-month period, provided for planning and pricing purposes only:

Disclaimer: the historical weight data and monthly average provided above are estimates only, based on prior-year data, and are furnished for informational and planning purposes only. These figures do not constitute actual, guaranteed, minimum, or maximum weights to be collected under this contract. Actual scrap weights collected in any given month or ordering period may be higher or lower than the historical average shown, and the government makes no representation or warranty as to future volume. The contractor shall not rely on these figures as a basis for any claim, equitable adjustment, or dispute regarding actual volumes encountered during performance.

4. DEFINITIONS

4.1 HOSPITAL SCRAP

Non-hazardous materials and unserviceable equipment generated through daily operations, maintenance, construction, and modernization activities.

Acceptable Scrap Materials

· Metals: steel, aluminum, copper, stainless steel, fixtures, carts, bed frames, piping

· Plastics: non-medical plastic components, broken bins, containers

· Wood: pallets, crating, damaged furniture

· Ceramics and Glass: broken tiles, fixtures, non-hazardous glass

· Unserviceable Equipment: items rendered unusable and designated for scrap

· Mixed Scrap: items containing ≤10% non-metal materials (rubber, insulation [non-asbestos], cork, concrete, etc.)

Prohibited Materials

· Hazardous materials

· Liquids or gases

· Enameled scrap

· Biomedical waste

· IT equipment requiring data sanitization

· Any material requiring special disposal under environmental regulations All items collected must be free of any liquids, refrigerants (e.g., Freon), and other prohibited materials identified above. Where an authorized pickup contains a prohibited item mixed with otherwise acceptable scrap, the contractor may decline to collect that specific item and leave it at the Government facility while completing collection of the remainder of the authorized pickup. Declining a prohibited item under this provision shall not be considered incomplete or deficient performance under Section 8 (QASP), Row 1.

4.2 RATIONALE FOR PERFORMANCE REQUIREMENTS

Timely, compliant scrap removal is required to:

1. Maintain safe work environments — accumulated scrap creates fire hazards and blocks pathways.

2. Ensure regulatory compliance — with OSHA, Joint Commission standards, and federal/state environmental regulations.

3. Support operational efficiency — Engineering, Logistics, and EMS require clear staging areas.

4. Manage limited storage space — particularly at CBOCs with minimal capacity.

5. Promote environmental stewardship — recycling reduces landfill waste and supports VA sustainability goals.

6. Return proceeds to the VA — recyclable scrap generates funds returned to the VA Agent Cashier.

4.3 DEFINITION OF "PICKUP": For purposes of billing under the applicable CLIN/SLIN, one billable "pickup" is defined as one load, not one job or service event. Where servicing a single authorized request at one location requires multiple truckloads/trips (e.g., due to vehicle capacity), each truckload/trip constitutes a separate billable pickup.

5. APPLICABLE DIRECTIVES AND REFERENCES

The contractor shall perform all work in accordance with the following directives and regulations, as applicable and as may be updated or superseded during the period of performance:

· VHA Directive 7707, VHA Green Environmental Management System (GEMS) and Governing Environmental Policy Statement — va.gov/vhapublications, pub_ID=9234

· VHA Directive 1850.06, Waste Management Program — va.gov/vhapublications, pub_ID=9875

· VA Directive 0057, VA Environmental Management Program — va.gov/vapubs, Pub_ID=1404

· VA Financial Policy, Volume IV, Chapter 4 – Recycling Revenue — department.va.gov/financial-policy-documents

6. HOURS OF PERFORMANCE / FEDERAL HOLIDAYS

Scrap pickup services shall occur Monday–Friday during normal business hours, 8:00 AM–4:30 PM, excluding Federal Holidays. Federal Holidays shall be defined in accordance with the schedule published annually by the U.S. Office of Personnel Management (OPM) for the applicable calendar year(s) of performance. Federal Holidays currently observed are:

· New Year's Day

· Martin Luther King Jr.'s Birthday

· Washington's Birthday

· Memorial Day

· Juneteenth National Independence Day

· Independence Day

· Labor Day

· Columbus Day

· Veterans Day

· Thanksgiving Day

· Christmas Day Note: Exact dates shift each calendar year and shall be confirmed against the current OPM Federal Holiday schedule at time of performance, rather than fixed dates listed in this PWS.

7. REPORTING REQUIREMENTS AND AGENT CASHIER PROCEEDS

This section is the single, controlling reference for all reporting and proceeds-handling requirements under this contract. Sections 8 (Performance Requirements Summary) and 19 (Deliverables Summary) cross-reference this section rather than restating its requirements, to avoid inconsistency.

7.1 REPORT RECIPIENTS

All reports required under this section shall be submitted simultaneously to all three of the following:

· The Contracting Officer (CO)

· The Contracting Officer's Representative (COR)

· The GEMS Manager

7.2 REPORT FREQUENCY AND DUE DATES

7.3 REQUIRED CONTENT — MONTHLY SUMMARY PERFORMANCE REPORT

Each monthly report shall include, at minimum:

1. Date and time of each pickup

2. Location/site of each pickup

3. Driver Name/Vehicle ID

4. Gross Weight of materials collected at time of pickup

5. Materials collected, itemized by Category and Subtype per the Material Category Reporting Breakdown in Section 7.5

6. Current market value of each material subtype reported at the time of pickup. Current market value shall be established using the actual recycler/processor settlement rate on the date of drop-off/transaction. Final disposal/recycling site(s) for each material stream

7. Total recycling proceeds generated for the reporting month, itemized by material Category and Subtype

7.4 REQUIRED CONTENT — ANNUAL RECONCILIATION AND CERTIFICATION REPORT

The annual report shall consolidate and reconcile all monthly reports submitted during the ordering period, and shall confirm, itemized by material Category and Subtype (per Section 7.5):

1. Total tonnage/weight of scrap collected against the sum of all monthly reports for the period

2. Total recycling proceeds reported by the contractor against amounts actually received and recorded by the LSVAMC Agent Cashier (see Section 7.6)

3. Total number of pickups performed against the number invoiced for the period The COR shall independently validate the contractor's annual reconciliation against Agent Cashier deposit records and the monthly report history before accepting the report. The contractor's submission of the annual report is not, by itself, sufficient for acceptance — COR validation is required. This report is due regardless of whether the contract continues into a subsequent Ordering Period; the Annual Reconciliation and Certification Report for the final Ordering Period is required even if the contract is not extended or renewed.

7.5 MATERIAL CATEGORY REPORTING BREAKDOWN

All reports (monthly and annual) shall itemize collected materials according to the following categories and subtypes, including weight/tonnage and, where applicable, market value and proceeds attributable to each. Materials shall not be combined into a single figure across categories or subtypes, except for genuinely commingled "Mixed Scrap" as defined in Section 4.1.

7.6 AGENT CASHIER PROCEEDS — DELIVERY REQUIREMENTS (MANDATORY — NO EXCEPTIONS)

Recycling proceeds are a mandatory deliverable under this contract, not a discretionary or "as-available" item. The contractor shall deliver proceeds for every load of recyclable material collected under this contract, without exception, in accordance with VA Financial Policy, Volume IV, Chapter 4 (Section 5). Failure to submit proceeds — including silent non-submission, non-response, or claiming no recyclable value without required certification per Section 7.6(4) below — constitutes a material breach of this contract and shall be treated as a critical, not minor, performance failure under Section 8, Row 7 and Section 12.

All recycling proceeds generated under this contract shall be delivered as follows:

1. Form and address of payment: Check, made payable and mailed to:

Louis Stokes VA Healthcare Center Attn: Agent Cashier / FCP 2516-0162 – Medical Facilities 10701 East Blvd. Cleveland, OH 44106

2. Timing: Proceeds shall be received by the Agent Cashier within 14 calendar days of the date recyclable items are picked up and/or sold/processed by the contractor, whichever occurs first. This is a hard deadline, not a target.

3. Matching requirement: Each proceeds payment shall correspond to, and be traceable against, the material Category/Subtype and weight figures reported in that month's Summary Performance Report (Section 7.3). A monthly report showing recyclable metal or other-recyclable tonnage collected, with no corresponding proceeds received by the Agent Cashier within the required timeframe, is a per se performance failure requiring no further COR investigation to substantiate — the absence of a matching payment is itself the deficiency.

4. Zero-proceeds certification: If, in any given month, the contractor collected only material categories that generate no proceeds (see Section 7.5, "Non-Recyclables"), the contractor shall affirmatively state this in that month's report and certify that no recyclable material with market value was collected. A contractor may not simply omit the proceeds line item; absence of a certification statement where proceeds are otherwise expected shall itself be treated as a reporting failure under Section 8, Row 2.

5. Market value volatility. The Government recognizes that market value for recyclable metals and other recyclable commodities fluctuates and may, at times, decline substantially or approach zero for reasons outside the contractor's control (e.g., regional or national commodity price swings, processor/recycler demand changes). This provision does not excuse or reduce the contractor's obligations under Sections 7.6(2) through (4); the contractor remains required to deliver any proceeds actually realized within the required timeframe, and to certify zero-proceeds months in accordance with Section 7.6(4).

Where a proceeds discrepancy identified under Section 7.6(3) coincides with a documented, verifiable decline in market value for the specific material category/subtype in question, the COR shall consider that market data — in addition to, not in place of, the contractor's own required certification and documentation — before determining whether the discrepancy reflects a performance failure or a legitimate market-driven reduction in proceeds. The contractor bears the burden of certifying zero or reduced proceeds under Section 7.6(4); citing market volatility after the fact does not substitute for that certification and does not, by itself, cure a missing or late certification. The COR retains sole discretion to determine, based on the totality of the record, whether a given month's proceeds figure is consistent with prevailing market conditions.

6. Documentation: Copies of recycling/disposal transaction documentation supporting each proceeds payment (e.g., recycler settlement sheets, scale tickets, sale receipts) shall be provided to Logistics Service 90 (W) and the COR within 1 week of disposal, per Section 19 (Deliverables Summary). The COR shall independently confirm receipt of funds with the Agent Cashier — the COR shall not rely solely on the contractor's self-reported figures.

7. Escalation for non-compliance: Given documented prior performance issues with proceeds non-submission under this requirement, the CO/COR shall treat any missed, late, or unsubstantiated proceeds delivery as grounds for immediate issuance of a Contract Discrepancy Report (CDR) under Section 12, without a warning period, and shall consider such failures an aggravating factor in any past performance (CPARS) evaluation and in the decision to exercise future ordering periods.

8. No deduction of contractor costs. The contractor shall remit 100% of the actual proceeds received from the recycler/processor for each load of recyclable material, with no deduction for transportation, processing, handling, sorting, scale fees, or administrative costs incurred by the contractor. Such costs are compensated separately through the contractor's per-pickup CLIN price under Section 3.

7.7 RETENTION OF TITLE — SCRAP REMAINS VA PROPERTY UNTIL PAYMENT CLEARS

The materials collected under this contract are excess Government personal property for which VA has no further use, disposed of for scrap value under VA's local scrap-sale authority (VA Directive/Handbook 7348) and the recycling-revenue-retention provisions of 41 C.F.R. § 102-38.295 and VA Financial Policy, Volume IV, Chapter 4. Collection of this material by the contractor constitutes a conditional sale of Government property, not an unconditional transfer.

(1) Title retention. Title to each load of scrap material remains with the Department of Veterans Affairs until the Agent Cashier has received and confirmed clearance of the corresponding proceeds payment for that specific load, in accordance with Section 7.6. Physical removal, transport, processing, or possession of the material by the contractor prior to payment clearance does not transfer title. Title transfers to the contractor only upon confirmed clearance of payment for that load or shipment.

(2) Backup remedies where title cannot practically be enforced. The parties recognize that once scrap material has been processed, melted, commingled, or resold by the contractor to a third party, VA's title interest in the specific physical material may no longer be practically recoverable. Accordingly, independent of the title-retention right described above, the contractor's right to collect and dispose of scrap material under this contract is conditioned on timely delivery of proceeds under Section 7.6, and failure to deliver proceeds for any load — regardless of the condition, location, or disposition of the underlying material — constitutes a material breach and unjust enrichment of the contractor at the Government's expense. In such event, and in addition to any remedy arising from the title-retention right in 7.7(1), the Government reserves all remedies available under Section 12 and applicable law, including:

(a) Recovery of the fair market value of the unremitted proceeds, calculated using prevailing scrap/recyclable material rates at the time of pickup or sale, whichever is documented;

(b) Withholding of amounts otherwise due to the contractor under this or any other VA contract, to the extent permitted by law and regulation, as an offset against unremitted proceeds; and

(c) Treatment of the failure as a material breach supporting termination for default, in addition to the CDR and CPARS consequences described in Section 7.6(6).

8. SECURITY REQUIREMENTS

· Contractor personnel shall report to the warehouse or Ohio Western Reserve National Cemetery upon arrival and present valid identification.

· No logical (IT) system access is required or authorized under this contract.

· Physical access shall be supervised by VA personnel at all times.

9. GOVERNMENT-FURNISHED EQUIPMENT/INFORMATION (GFE/GFI)

Pallet jacks and flatbed carts will be made available for contractor use in locations where such equipment is normally used and housed (typically warehouse areas). The Government generally attempts to stage items in such areas, though this may not always be the case depending on the pickup location. The Government will not provide tow motors or forklifts. The contractor shall furnish all other equipment necessary to perform the required services**, including any liftgate or similar equipment needed to load items at locations without pallet jack/flatbed cart availability**. VA personnel may stage items using VA-owned equipment as needed prior to contractor pickup. For planning purposes, the contractor may ask the authorized requester (NX Equipment Team, Logistics Department, or CO) what types of items are expected to constitute the majority of the materials for a specific on-call pickup, to assist the contractor in determining appropriate equipment for that pickup. The Government will provide this information to the extent reasonably known at the time of the request, but this does not constitute a binding representation of actual pickup contents and does not relieve the contractor of its obligation to be prepared for variation in material type consistent with Section 3.10. RISK CONTROL

· Contractor shall designate a supervisor authorized to communicate with VA warehouse personnel.

· No contact with patients is permitted.

· Contractor personnel shall comply with all site safety protocols and furnish appropriate PPE for their own staff.

· The contractor shall provide all training necessary to perform the work described in this contract. Training shall not hamper the quantity, quality, or timeliness of work required under the contract.

11. PLACE OF PERFORMANCE

All work shall occur at the Louis Stokes VA Medical Center and all sites identified in Section 3.1. The contractor shall provide transportation for travel to and from each identified site as needed to perform the requirements of this contract.

12. PERIOD OF PERFORMANCE (ORDERING PERIODS)

This contract shall be structured as a base ordering period plus four (4) additional ordering periods.

All services shall be ordered/performed on an indefinite-delivery, on-call/as-needed basis in accordance with Section 3.5 and Section 3.6 throughout each ordering period.

13. COMMUNICATION AND ORDERING PLAN

Given the on-call/as-needed nature of this contract (see Sections 2 and 3.5), no formal phase-in transition is required, as there is no standing equipment, fixed recurring schedule, or incumbent asset handoff associated with this requirement. Instead, the contractor shall submit a Communication and Ordering Plan as part of its quote response, describing the contractor's proposed process for:

· Receiving and confirming pickup requests from the VANEOHS NX Equipment Team, Logistics Department, or the CO (per Section 3.5)

· Designated points of contact and after-hours/emergency contact procedures, if applicable

· Method(s) of communication (phone, email, or other system) the contractor will use to receive and confirm requests

· Internal dispatch procedure ensuring the 48-hour response requirement in Section 8, Row 1 can be consistently met The Communication and Ordering Plan shall be validated and finalized in coordination with the COR within 10 business days after contract award.

14. DELIVERABLES SUMMARY

15. SERVICE CONTRACT LABOR STANDARDS / WAGE DETERMINATION

Service Contract Labor Standards apply to this contract. Applicable Wage Determinations can be found at www.SAM.gov. Please refer to Section D: Wage Determinations.

VA Handbook 6500.6

Appendix C — VA Information and Information System Security and Privacy Language for Inclusion in Contracts, as Appropriate (As amended by VA Notice 24-12, April 22, 2024)

Appendix D — Contractor Rules of Behavior (VA Handbook 6500.6, March 12, 2010)

1. GENERAL

This entire section applies to all acquisitions requiring any Information Security and Privacy language. Contractors, contractor personnel, subcontractors and subcontractor personnel will be subject to the same federal laws, regulations, standards, VA directives and handbooks, as VA personnel regarding information and information system security and privacy.

2. VA INFORMATION CUSTODIAL LANGUAGE

This entire section applies to all acquisitions requiring any Information Security and Privacy language.

a. The Government shall receive unlimited rights to data/intellectual property first produced and delivered in the performance of this contract or order (hereinafter “contract”) unless expressly stated otherwise in this contract. This includes all rights to source code and all documentation created in support thereof. The primary clause used to define Government and Contractor data rights is FAR 52.227-14 Rights in Data – General. The primary clause used to define computer software license (not data/intellectual property first produced under this contractor or order) is FAR 52.227-19, Commercial Computer Software License.

b. Information made available to the contractor by VA for the performance or administration of this contract will be used only for the purposes specified in the service agreement, SOW, PWS, PD, and/or contract. The contractor shall not use VA information in any other manner without prior written approval from a VA Contracting Officer (CO). The primary clause used to define Government and Contractor data rights is FAR 52.227-14 Rights in Data – General.

c. VA information will not be co-mingled with any other data on the contractor’s information systems or media storage systems. The contractor shall ensure compliance with Federal and VA requirements related to data protection, data encryption, physical data segregation, logical data segregation, classification requirements and media sanitization.

d. VA reserves the right to conduct scheduled or unscheduled audits, assessments, or investigations of contractor Information Technology (IT) resources to ensure information security is compliant with Federal and VA requirements. The contractor shall provide all necessary access to records (including electronic and documentary materials related to the contracts and subcontracts) and support (including access to contractor and subcontractor staff associated with the contract) to VA, VA’s Office Inspector General (OIG), and/or Government Accountability Office (GAO) staff during periodic control assessments, audits, or investigations.

e. The contractor may only use VA information within the terms of the contract and applicable Federal law, regulations, and VA policies. If new Federal information security laws, regulations or VA policies become applicable after execution of the contract, the parties agree to negotiate contract modification and adjustment necessary to implement the new laws, regulations, and/or policies.

f. The contractor shall not make copies of VA information except as specifically authorized and necessary to perform the terms of the contract. If copies are made for restoration purposes, after the restoration is complete, the copies shall be destroyed in accordance with VA Directive 6500, VA Cybersecurity Program and VA Information Security Knowledge Service.

g. If a Veterans Health Administration (VHA) contract is terminated for default or cause with a business associate, the related local Business Associate Agreement (BAA) shall also be terminated and actions taken in accordance with VHA Directive 1605.05, Business Associate Agreements. If there is an executed national BAA associated with the contract, VA will determine what actions are appropriate and notify the contactor.

h. The contractor shall store and transmit VA sensitive information in an encrypted form, using VA-approved encryption tools which are, at a minimum, Federal Information Processing Standards (FIPS) 140-2, Security Requirements for Cryptographic Modules (or its successor) validated and in conformance with VA Information Security Knowledge Service requirements. The contractor shall transmit VA sensitive information using VA approved Transport Layer Security (TLS) configured with FIPS based cipher suites in conformance with National Institute of Standards and Technology (NIST) 800-52, Guidelines for the Selection, Configuration and Use of Transport Layer Security (TLS) Implementations.

i. The contractor’s firewall and web services security controls, as applicable, shall meet or exceed VA’s minimum requirements.

j. Except for uses and disclosures of VA information authorized by this contract for performance of the contract, the contractor may use and disclose VA information only in two situations: (i) in response to a qualifying order of a court of competent jurisdiction after notification to VA CO (ii) with written approval from the VA CO. The contractor shall refer all requests for, demands for production of or inquiries about, VA information and information systems to the VA CO for response.

k. Notwithstanding the provision above, the contractor 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 medical records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse or infection with Human Immunodeficiency Virus (HIV). If the contractor is in receipt of a court order or other requests for the above-mentioned information, the contractor shall immediately refer such court order or other requests to the VA CO for response.

l. Information made available to the contractor by VA for the performance or administration of this contract or information developed by the contractor in performance or administration of the contract will be protected and secured in accordance with VA Directive 6500 and Identity and Access Management (IAM) Security processes specified in the VA Information Security Knowledge Service.

m. Any data destruction done on behalf of VA by a contractor shall be done in accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management, VA Handbook 6300.1, Records Management Procedures, and applicable VA Records Control Schedules.

n. The contractor shall provide its plan for destruction of all VA data in its possession according to VA Directive 6500 and NIST 800-88, Guidelines for Media Sanitization prior to termination or completion of this contract. If directed by the COR/CO, the contractor shall return all Federal Records to VA for disposition.

o. Any media, such as paper, magnetic tape, magnetic disks, solid state devices or optical discs that is used to store, process, or access VA information that cannot be destroyed shall be returned to VA. The contractor shall hold the appropriate material until otherwise directed by the Contracting Officer’s Representative (COR) or CO. Items shall be returned securely via VA-approved methods. VA sensitive information must be transmitted utilizing VA-approved encryption tools which are validated under FIPS 140-2 (or its successor) and NIST 800-52. If mailed, the contractor shall send via a trackable method (USPS, UPS, FedEx, etc.) and immediately provide the COR/CO with the tracking information. Self-certification by the contractor that the data destruction requirements above have been met shall be sent to the COR/CO within 30 business days of termination of the contract.

p. All electronic storage media (hard drives, optical disks, CDs, back-up tapes, etc.) used to store, process or access VA information will not be returned to the contractor at the end of lease, loan, or trade-in. Exceptions to this paragraph will only be granted with the written approval of the VA CO.

3. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

This section applies when any person requires access to information made available to the contractor by VA for the performance or administration of this contract or information developed by the contractor in performance or administration of the contract.

a. A contractor/subcontractor shall request logical (technical) or physical access to VA information and VA information systems for their employees and subcontractors only to the extent necessary to perform the services specified in the solicitation or contract. This includes indirect entities, both affiliate of contractor/subcontractor and agent of contractor/subcontractor.

b. Contractors and subcontractors shall sign the VA Information Security Rule of Behavior (ROB) before access is provided to VA information and information systems (see Section 4, Training, below). The ROB contains the minimum user compliance requirements and does not supersede any policies of VA facilities or other agency components which provide higher levels of protection to VA’s information or information systems. Users who require privileged access shall complete the VA elevated privilege access request processes before privileged access is granted.

c. All contractors and subcontractors working with VA information are subject to the same security investigative and clearance 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 shall be in accordance with VA Directive and Handbook 0710, Personnel Suitability and Security Program. The Office of Human Resources and Administration/Operations, Security and Preparedness (HRA/OSP) is responsible for these policies and procedures. Contract personnel who require access to classified information or information systems shall have an appropriate security clearance. Verification of a Security Clearance shall be processed through the Special Security Officer located in HRA/OSP. Contractors shall conform to all requirements stated in the National Industrial Security Program Operating Manual (NISPOM).

d. All contractors and subcontractors shall comply with conditions specified in VAAR 852.204-71(d); Contractor operations required to be in United States. All contractors and subcontractors working with VA information must be permanently located within a jurisdiction subject to the law of the United States or its Territories to the maximum extent feasible. If services are proposed to be performed abroad the contractor must state where all non-U.S. services are provided. The contractor shall deliver to VA a detailed plan specifically addressing communications, personnel control, data protection and potential legal issues. The plan shall be approved by the COR/CO in writing prior to access being granted.

e. The contractor shall notify the COR/CO in writing immediately (no later than 24 hours) after personnel separation or occurrence of other causes. Causes may include the following:

1. Contractor/subcontractor personnel no longer has a need for access to VA information or VA information systems.

2. Contractor/subcontractor personnel are terminated, suspended, or otherwise has their work on a VA project discontinued for any reason.

3. Contractor believes their own personnel or subcontractor personnel may pose a threat to their company’s working environment or to any company-owned property. This includes contractor-owned assets, buildings, confidential data, customers, employees, networks, systems, trade secrets and/or VA data.

4. Any previously undisclosed changes to contractor/subcontractor background history are brought to light, including but not limited to changes to background investigation or employee record.

5. Contractor/subcontractor personnel have their authorization to work in the United States revoked.

6. Agreement by which contractor provides products and services to VA has either been fulfilled or terminated, such that VA can cut off electronic and/or physical access for contractor personnel.

f. In such cases of contract fulfillment, termination, or other causes; the contractor shall take the necessary measures to immediately revoke access to VA network, property, information, and information systems (logical and physical) by contractor/subcontractor personnel. These measures include (but are not limited to): removing and then securing Personal Identity Verification (PIV) badges and PIV – Interoperable (PIV-I) access badges, VA-issued photo badges, credentials for VA facilities and devices, VA-issued laptops, and authentication tokens. Contractors shall notify the appropriate VA COR/CO immediately to initiate access removal.

g. Contractors/subcontractors who no longer require VA accesses will return VA-issued property to VA. This property includes (but is not limited to): documents, electronic equipment, keys, and parking passes. PIV and PIV-I access badges shall be returned to the nearest VA PIV Badge Issuance Office. Once they have had access to VA information, information systems, networks and VA property in their possessions removed, contractors shall notify the appropriate VA COR/CO.

5. SECURITY INCIDENT INVESTIGATION

This entire section applies to all acquisitions requiring any Information Security and Privacy language.

a. The contractor, subcontractor, their employees, or business associates shall immediately (within one hour) report suspected security / privacy incidents to the VA OIT’s Enterprise Service Desk (ESD) by calling (855) 673-4357 (TTY: 711). The ESD is OIT’s 24/7/365 single point of contact for IT-related issues. After reporting to the ESD, the contractor, subcontractor, their employees, or business associates shall, within one hour, provide the COR/CO the incident number received from the ESD.

b. To the extent known by the contractor/subcontractor, the contractor/subcontractor’s notice to VA shall identify the information involved and the circumstances surrounding the incident, including the following:

1. The date and time (or approximation of) the Security Incident occurred.

2. The names of individuals involved (when applicable).

3. The physical and logical (if applicable) location of the incident.

4. Why the Security Incident took place (i.e., catalyst for the failure).

5. The amount of data belonging to VA believed to have been compromised.

6. The remediation measures the contractor is taking to ensure no future incidents of a similar nature.

c. After the contractor has provided the initial detailed incident summary to VA, they will continue to provide written updates on any new and relevant circumstances or facts they discover. The contractor, subcontractor, and their employes shall fully cooperate with VA or third-party entity performing an independent risk analysis on behalf of VA. Failure to cooperate may be deemed a material breach and grounds for contract termination.

d. VA IT contractors shall follow VA Handbook 6500, Risk Management Framework for VA Information Systems VA Information Security Program, and VA Information Security Knowledge Service guidance for implementing an Incident Response Plan or integrating with an existing VA implementation.

e. 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 the VA Office of 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.

f. The contractor shall comply with VA Handbook 6500.2, Management of Breaches Involving Sensitive Personal Information, which establishes the breach management policies and assigns responsibilities for the oversight, management and reporting procedures associated with managing of breaches.

g. With respect to unsecured Protected Health Information (PHI), the contractor is deemed to have discovered a data breach when the contractor knew or should have known of breach of such information. When a business associate is part of VHA contract, notification to the covered entity (VHA) shall be made in accordance with the executed BAA.

h. If the contractor or any of its agents fails to protect VA sensitive personal information or otherwise engages in conduct which results in a data breach involving any VA sensitive personal information the contractor/subcontractor processes or maintains under the contract; the contractor shall pay liquidated damages to the VA as set forth in clause 852.211-76, Liquidated Damages—Reimbursement for Data Breach Costs.

9. PRODUCT INTEGRITY, AUTHENTICITY, PROVENANCE, ANTI-COUNTERFEIT AND ANTI-TAMPERING This entire section applies when the acquisition involves any product (application, hardware, or software) or when section 6 or 7 is included.

a. The contractor shall comply with Code of Federal Regulations (CFR) Title 15 Part 7, “Securing the Information and Communications Technology and Services (ICTS) Supply Chain”, which prohibits ICTS Transactions from foreign adversaries. ICTS Transactions are defined as any acquisition, importation, transfer, installation, dealing in or use of any information and communications technology or service, including ongoing activities, such as managed services, data transmission, software updates, repairs or the platforming or data hosting of applications for consumer download.

b. When contracting terms require the contractor to procure equipment, the contractor shall purchase or acquire the equipment from an Original Equipment Manufacturer (OEM) or an authorized reseller of the OEM. The contractor shall attest that equipment procured from an OEM or authorized reseller or distributor are authentic. If procurement is unavailable from an OEM or authorized reseller, the contractor shall submit in writing, details of the circumstances prohibiting this from happening and procure a product waiver from the VA COR/CO.

c. All contractors shall establish, implement, and provide documentation for risk management practices for supply chain delivery of hardware, software (to include patches) and firmware provided under this agreement.