36C25526Q0276.docx

Presolicitation Notice Presolicitation Notice

GENERAL INFORMATION

SET-ASIDE

5500 E. Kellogg Ave

Wichita KS

CONTACT INFORMATION

Network Contracting Office (NCO) 15 3450 S 4th Street Trafficway

Leavenworth KS 66048

POINT OF CONTACT*

Jessica Barton jessica.barton1@va.gov

DESCRIPTION

The Department of Veterans Affairs, Network Contracting Office 15 intends to award a sole source contract under the authority of 41 U.S.C 253(c) (1) – FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements, to Sierra 7, Inc, located at 1676 International Drive, Suite 930, McLean, VA, 22102.

Sierra 7, Inc. will provide the Avasure Mobile Two-way telesitter platform, equipment and services. The requested equipment is provided only through the OEM and Sierra 7, their authorized distributor.

The place of performance is the Department of Veterans Affairs – Robert J. Dole VA Medical Center located at 5500 E. Kellogg Avenue, Wichita, KS 67218-1607 The NAICS code is 334290 – Other Communications Equipment Manufacturing, with a small business size standard of 800 employees, and PSC 6515 – Medical and Surgical Instruments, Equipment, and Supplies.

This notice of intent is not a request for quotations; interested parties may express their interest by providing a capabilities statement No Later Than 04/02/2026 at 12:00 pm Central Time. The capabilities statement must provide clear and unambiguous evidence to substantiate the capability of the party to provide the required services. A determination not to compete this proposed contract upon responses to this notice is solely within the discretion of the Government. Verbal responses are not acceptable and will not be considered.

Response shall be submitted via email referencing the “Special Notice - 36C25526Q0276” in the subject line to jessica.barton1@va.gov. If after 04/02/2026, no viable responses have been received in response to this announcement, the Department of Veterans Affairs shall negotiate solely with Sierra 7, Inc.

This notice of intent to award a sole source contract is not a request for competitive quotes. There will be no solicitation available for competitive quotes. Phone calls will not be accepted.

Point of Contact:

Jessica D. Barton jessica.barton1@va.gov Network Contracting Office 15 3450 South. 4th Street Leavenworth, KS 66048

STATEMENT OF WORK (SOW)

Virtual TeleSitter Technology

1. INTRODUCTION

The Robert J. Dole VA Medical Center requires new and unused Avasure Virtual Telesitter Technology, to include equipment and installation. This technology will help reduce the hospital’s requirement to have individual sitters with patients that require 24/7 observation, saving up to 7 additional Full Time Equivalent staff annually.

2. SCOPE OF WORK

· All equipment shall be delivered and installed NLT 30 Days ARO

· Vendor shall provide all equipment, personnel, tools, materials, supervision, and non-personal services necessary to provide and install the virtual observation system on site

· The system and all its components must already be approved to put on the VA network, including FIPS (Federal Information Processing Standard) compliance, having an approved ERA (enterprise Risk Analysis) and TRM (Technical Reference Model), as applicable

3. DELIVERABLES. All equipment is Brand Name Only.

CLIN 001: Guardian Mobile 2-way FIPS Manufacturer: AvaSure Model No: AVA-M-0204-1 Quantity: 8 EA Required:

· Integration into Large Format Monitor Stations (2)

· 360 camera with pan capability, 24x optical zoom, low light/night vision capabilities

· 2-way audio with element sensitivity of -38 dB +/- 3 dB

· Includes 3-year warranty once AvaSure Software license is purchased (troubleshooting, maintenance, technical service, etc.) per device

· Includes AvaNET Silver Support (see additional sheet)

· Analytics Reporting Tool

· Pre-recorded announcements in 30 languages

· Dell server

· Capable of wireless connection CLIN 002: Monitor Station Manufacturer: AvaSure Model No: A-000214 Quantity: 2 EA Required:

· Integrate into virtual observation system

· Includes 2 40” LED monitors for viewing with aspect ratio of 16:9

· Connects to VA network via ethernet

· Includes audio and camera capabilities

· Plugs into a standard United States 120V outlet

CLIN 003: Dell Pro Max Slim Base Server Manufacturer: AvaSure Model No: 210-BQMQ Quantity: 2 EA Required:

· Integrate into virtual observation system

· Processor: Intel® Core™ Ultra 7 (20 cores, up to 5.3 GHz)

· Memory: 16GB DDR5

· Storage: 512GB SSD (PCIe Gen4)

· Graphics: NVIDIA® A1000, 8GB

· Operating System: Windows 11 Pro

· Keyboard/Mouse: Dell Smartcard Keyboard & Wired Mouse

· Security: Intel vPro, TPM, CrowdStrike Protection (1 year)

· Connectivity: No wireless LAN card (wired only, wireless-capable if added)

· Power Supply: 360W Platinum PSU

· Warranty: 3-Year Basic Onsite Support

CLIN 004: Mount Manufacturer: AvaSure Model No: FLP-0010-20 Quantity: 2 EA Required:

· M-Series large flat panel/TV mounts for Observation Station Monitors

CLIN 005: Mount Manufacturer: AvaSure Model No: WC-0002-07 Quantity: 2 EA Required:

· 25” seismic wall mount channel for Observation Station Install, meets building code for installation– 2 each, 1 for each Monitor, installs into the wall

CLIN 006: Power Cord Manufacturer: AvaSure Model No: A-000285 Quantity: 8 EA Required:

· 10’ US power cord for Guardian Mobile Cart – 8 each

CLIN 007: Spare Parts Kit Manufacturer: AvaSure Model No: AVA-SK-0101-3 Quantity: 1 EA Required:

· Spare kit parts include: 5 pairs of earpieces, 5 microfiber cleaning cloths, 100 disposable ear covers for headsets, 1 headset, 1 USB headset adapter, 1-10’ power cord

CLIN 008: AvaSure Install Services/Biomed Training Model No: AVA-SERV-0109 Quantity: 1 JB Required:

· AvaSure's Install Services encompass the planning and implementation of hardware and software components for their systems. This includes several key activities:

· Hardware Assembly and Configuration: Setting up the physical components of the system.

· Server Software Installation: Installing necessary software on servers to support operations.

· Monitor Station Software Installation: Installing software on monitoring stations used for patient observation.

· Connectivity Testing: Ensuring that all components are properly connected and functioning.

· General Troubleshooting and Hardware Overview Training: Providing training sessions to familiarize staff with the hardware and troubleshooting processes.

· Project planning and engineering

· Onsite deployment

· Server setup

· Monitor station setup

· Device assembly / assembly prep

· Device initialization and test verification

· Device wireless connectivity testing validation, if applicable

· BioMed / IT Training

· The Contractor is responsible for conducting in-services and providing any missing parts and components not included in order to fully complete the installation. The installation will be considered fully complete when all equipment, components, and accessories are a fully operational system and function as designed/intended by the OEM. Any devices or accessories that fail to meet manufacturers’ specifications will be replaced at no extra charge to the government.

CLIN 009: AvaSure Project Management Services Model No: AVA-SERV-0111 Quantity: 1 JB Required:

· AvaSure’s Project Management services include several key responsibilities aimed at ensuring the successful implementation of their solutions. The Project Manager assigned to a project will:

· Create and uphold a project timeline.

· Coordinate and facilitate the necessary resources from AvaSure.

· Work with project leads from the client organization to ensure that all key milestones are discussed and addressed.

· Identify potential long-lead time make-readies, such as hiring and construction.

· Schedule key project milestone target dates.

· Provide various forms to assist in the implementation process, including project contacts forms and technical questionnaires.

· Schedule and lead kickoff calls to review the solution and implementation steps.

· Conduct recurring implementation calls to work through the project plan.

· Email meeting notes after each implementation call.

· Provide daily updates when AvaSure personnel are onsite during deployment and education weeks.

CLIN 010: AvaSure Clinical Onsite Go Live Support Model No: AVA-SERV-0117 Quantity: 1 JB Required:

· Clinical services for go live involve several key components aimed at ensuring a successful implementation of the AvaSure platform. The process includes:

· Clinical Program Development: This encompasses planning for clinical and operational workflows, which is carried out by a Clinical Implementation Specialist during the project implementation phase before go live. It includes onsite education for monitor and clinical staff, policy and procedure planning, resource sharing, and best practices development.

· Onsite Education: AvaSure educators provide training during the week of go live, tailored to the needs outlined in the Statement of Work (SOW). This training is crucial for the monitor staff and clinical teams to ensure they are prepared for the new system.

· Go Live Support: AvaSure offers direct support during the go live phase to address any immediate issues and ensure a smooth transition.

· Post-Project Follow-Up: After go live, Clinical Program Specialists maintain contact with the healthcare team to ensure the program's success, including one follow-up visit within 180 days of the go live date.

· Assessment and Continuous Improvement: A close-out phase is conducted to evaluate if the project deliverables meet customer expectations, and feedback is gathered through surveys to improve future implementations.

CLIN 011: Warranty/AvaSure Software Standard (AVA-E00104-1Y) Manufacturer: AvaSure Model No: AVA-M-0204-1 Quantity: 8 EA Required:

· Software Warranty: Software is warranted to be free of material defects. Must function in conformance with its specifications. Coverage lasts for the duration of the client’s active subscription term.

· AvaNET support services, Exhibit B, describes the warranty coverage for purchased equipment and the conditions under which it applies.

5. SITE CONDITIONS AND PROTECTION OF PROPERTY

· Vendor representatives must check in with Dole VA Biomedical Engineering when they arrive on-site and check out upon completion of work each day.

· Vendor on-site visits shall be coordinated with the COR (or designee) before being scheduled or conducted.

· There shall be no smoking or vaping on Dole VA premises at any time.

· Eating and drinking are not allowed inside the hospital, except for in the Canteen Dining area.

· Vendor staff shall always be professional and shall take all necessary precautions to maintain a safe environment for the occupants. This includes, as necessary, coordinating access and closures for sensitive areas of the Medical Center.

· Vendor shall be responsible for cleaning all work areas after completion of tasks. This includes, but is not limited to, removal of packaging and a clean sweep/mop of the area as required by work type.

· Vendor shall protect all items from damage. The Vendor shall take precaution against damage to the building(s), grounds, and furnishings. The Vendor shall repair or replace any items related to building(s) or grounds damaged accidentally or on purpose due to actions by the Vendor.

· The Vendor shall perform an inspection of the building(s) and grounds with the COR prior to commencing work to ensure that the Vendor shall be able to repair or replace any items, components, building(s) or grounds damaged due to negligence and/or actions taken by the Vendor. The source of all repairs beyond simple surface cleaning is the facility construction Vendor (or appropriate subcontractor), so that building warranty is maintained. Concurrence from the VA Facilities Management POC and COR is required before the Vendor may perform any significant repair work. In all cases, repairs shall utilize materials of the same quality, size, texture, grade, and color to match adjacent existing work.

· Vendor staff shall minimize noise as much as possible while working in all buildings.

· Vendor is responsible for providing all PPE necessary for their work.

· The Vendor shall be responsible for security of the areas in which the work is being performed prior to completion.

6. SHIPPING & DELIVERY

· Deliver materials to the facility in manufacturer's original sealed boxes or containers with brand name marked thereon.

· Contractor must inform Dole VA POC of scheduled delivery, backordered components, and any delays in writing at least 2 weeks in advance or upon earliest notification of delays if less than that time.

· Contractor shall deliver all equipment to:

7. SECURITY REQUIREMENTS

Appendix B

VA ACQUISITION REGULATION SOLICITATION PROVISION AND CONTRACT CLAUSE

NOTE: This clause will undergo official rule making by the Office of Acquisitions and Logistics. The below language will be submitted for public review through the Federal Register. The final wording of the clause may be changed from what is outlined below based on public review and comment. Once approved, the final language in the clause can be obtained from the Office of Acquisitions and Logistics Programs and Policy.

1. SUBPART 839.2 – INFORMATION AND INFORMATION TECHNOLOGY SECURITY REQUIREMENTS

839.201 Contract clause for Information and Information Technology Security:

a. Due to the threat of data breach, compromise or loss of information that resides on either VA-owned or contractor-owned systems, and to comply with Federal laws and regulations, VA has developed an Information and Information Technology Security clause to be used when VA sensitive information is accessed, used, stored, generated, transmitted, or exchanged by and between VA and a contractor, subcontractor or a third party in any format (e.g., paper, microfiche, electronic or magnetic portable media).

b. In solicitations and contracts where VA Sensitive Information or Information Technology will be accessed or utilized, the CO shall insert the clause found at 852.273-75, Security Requirements for Unclassified Information Technology Resources.

2. 852.273-75 - SECURITY REQUIREMENTS FOR UNCLASSIFIED INFORMATION TECHNOLOGY RESOURCES (INTERIM- OCTOBER 2008)

As prescribed in 839.201, insert the following clause:

The contractor, their personnel, and their subcontractors shall be subject to the Federal laws, regulations, standards, and VA Directives and Handbooks regarding information and information system security as delineated in this contract.

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.

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.

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;

(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 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.

(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 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.

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;

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

(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 $ 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 initiated by the Office of Inspector General. The government may conduct a security control assessment on shorter notice (to include unannounced assessments) as determined by VA in the event of a security incident or at any other time.

9. TRAINING

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

training and annually complete required security training;

(3) Successfully complete the appropriate VA privacy training and annually complete required privacy training; and

(4) Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access [to be defined by the VA program official and provided to the contracting officer for inclusion in the solicitation document – e.g., any role-based information security training required in accordance with NIST Special Publication 800-16, Information Technology Security Training Requirements.]

b. The contractor shall provide to the contracting officer and/or the COTR a copy of the training certificates and certification of signing the Contractor Rules of Behavior for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required.

c. Failure to complete the mandatory annual training and sign the Rules of Behavior annually, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete.

Presolicitation Notice