36C25923Q0549.docx

Combined Synopsis/Solicitation Notice Combined Synopsis/Solicitation Notice

GENERAL INFORMATION

SET-ASIDE

Network Contracting Office

NCO 19

6162 South Willow Drive, Suite 300 Greenwood Village CO 80111

POINT OF CONTACT*

Blake Rowland Contracting Specialist blake.rowland@va.gov 918-577-3564 nco19services1@va.gov

PLACE OF PERFORMANCE

Veterans Affairs Medical Center

1700 N. Wheeling Street

Aurora Colorado

ADDITIONAL INFORMATION

DESCRIPTION

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in FAR Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotations are being requested and a written solicitation will not be issued. This solicitation 36C25923Q0532 is issued as a request for quotation (RFQ). This solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular (FAC) 2023-02 effective May 26, 2023. No telephone requests will be accepted. Only written requests received directly from the offeror are acceptable. The associated North American Industry Classification System (NAICS) code for this procurement is 512290 –Other Sound Recording Industries with a small business size standard of $22.5 million. This solicitation is FULL AND OPEN COMPETITION. IF OFFEROR IS A GSA SCHEDULE HOLDER, ALL INFORMATION REQUESTED IN THIS NOTICE MUST BE PROVIDED, NOT JUST THE OFFEROR’S SCHEDULE NUMBER.

The following is a list of the contract line item numbers, quantities and units of measure.

BASE YEAR: Date of award THROUGH MAY 31, 2024

COST

TOTAL

COST

EACH

EACH

TOTAL COST ITEMS, ALL ITEMS

BASE YEAR: $_____________________

OPTION YEAR 1: JUNE 01, 2024 THROUGH MAY 31, 2025

COST

TOTAL

COST

EACH

EACH

TOTAL COST ITEMS, ALL ITEMS

OPTION YEAR 1: $_____________________

OPTION YEAR 2: JUNE 01, 2025 THROUGH MAY 31, 2026

COST

TOTAL

COST

EACH

EACH

TOTAL COST ITEMS, ALL ITEMS

OPTION YEAR 2: $_____________________

OPTION YEAR 3: JUNE 01, 2026 THROUGH MAY 31, 2027

COST

TOTAL

COST

EACH

EACH

TOTAL COST ITEMS, ALL ITEMS

OPTION YEAR 3: $_____________________

OPTION YEAR 4: JUNE 01, 2027 THROUGH MAY 31, 2028

COST

TOTAL

COST

EACH

EACH

TOTAL COST ITEMS, ALL ITEMS

OPTION YEAR 4: $_____________________

STATEMENT OF WORK

A. Statement of Work for recording and transcription research

This statement of work is issued Rocky Mountain Regional VA Medical Center for Research Service and the Center of Innovation.

1. Background:

The RMR VAMC’s Center of Innovation for Veteran-Centered and Value Driven Care (COIN) Research and Evaluation group is funded primarily by grants from many funding entities including but not limited to: VHA Health Services Research & Development (HSR&D), Office of Rural Health (ORH), Quality Enhancement Research Initiative (QUERI), and Office of Veteran Access to Care (OVAC).

COIN and Research Service researchers and staff conduct interviews with Veterans, their family members, caregivers, and providers for the purpose of conducting rigorous research and evaluation studies, determining Best Practices, and evaluating current Standards of Care methods. These interviews require transcription to completely analyze and report out on projects utilizing these interviews. Due to changes in funding and timelines in research, evaluation, and quality improvement projects, the Research Service of the Eastern Colorado Healthcare System requires an indefinite delivery/indefinite quantity contract to allow each project to illicit services from a centralized Vendor. The number of studies varies from time to time and there is no set monthly amount to be determined since interviews occur at various points during the year (often dependent on notification of VA union approval or phase of project implementation).

2. Scope of Work:

2.1. Transcription Services

2.1.1. The contractor will take audio recordings of varying quality and compose verbatim transcriptions of any verbal communication contained in the audio into a text/word file.

2.1.2. All transcriptions will be in a format that has a line space between speakers. Transcribers will need expertise in medical terminology as required by the project.

2.1.3. Transcriptions will be completed in a timely manner with audio files being transcribed within a week of receipt of the audio file. Contractor will have the capacity to meet transcription needs in urgency no sooner than 48 hrs.

1.

2.

2.1.

2.2. Formatting

2.2.1. Speakers will be labeled: Interviewer (Abbreviated: I, (I1, I2, if multiple Interviewers), and Participant (Abbreviated: P, P1, P2, etc. for focus groups and small group interviews).

2.2.2. Remove verbal fillers from transcribed files (such as “um”).

2.2.3. The Footer and/or Header will include the file name as provided in the name of the audio file provided and page numbers listed with both current page and number of pages (Example: 1 of 5).

2.3. Accuracy

2.3.1. Audio, upload, or technical issues should be flagged, and communication from Contractor to VA to problem solve with staff as soon as they arise.

2.3.2. Transcribed interviews must undergo multiple steps of thorough proofing by different people to identify missed words, typos, etc.

2.3.3. The contractor shall be responsible for all proofreading. Transcribed work received by VA which contains omissions, spelling/grammatical errors, and/or is completed in a manner which is unacceptable to VA shall be returned to the contractor for correction at no additional charge to the government. Transcribed interviews returned to the contractor shall be corrected by the contractor and returned to VA within 48 hours of receipt of notification at no additional cost to the government.

2.4. Customer Service

2.4.1. The contractor will maintain a dedicated account manager that will coordinate and communicate to the Contracting Officer Representative (COR), Contracting Officer (CO), and/ or transcription manager as needed. The account manager will manage all task orders under this contract and communicate with a key staff member from each task order.

2.4.2. The contractor shall assign a Project Manager (which can be different or the same as the account manager) for the purpose of supervising and training contractor personnel and ensuring compliance with the provisions of the contract. The Project Manager shall have the full authority to act on behalf of the contractor to handle day-to-day operations and problems or concerns as they arise.

2.4.3. The contractor shall refer ambiguous items needing correction or clarification to the designated VA staff member or task order lead designee for clarification or correction and do so by means of e-mail or telephone.

2.4.4. The contractor will not subcontract or upload work to another transcription firm or entity not designated as the VA or in agreed upon download or upload locations for the purpose of transferring documents to and from the VA. Due to security and privacy concerns associated with the sensitive data that is the subject of this contract, without exception, all transcription, verification, and uploading of reports must be physically located and the work conducted in the United States. All transcription and verification services must be performed in the United States of America, including US territories. No work shall be moved offshore of the United States of America. There are no exceptions.

2.4.5. The contractor will provide account reporting for all task orders awarded amounts and use under the contract to the COR and transcription manager twice in a year. There may also be as needed requests of up-to-date account reporting requested outside of the two required reporting times.

2.4.6. The contractor will provide a secure login to its web-based transcription system, through which audio files for transcription on-demand may be submitted.

2.5. Privacy and Security

2.5.1. This contract requires a Business Association Agreement (BAA) to be put in place with the local VA Privacy Office at Rocky Mountain Regional Medical Center.

2.5.2. All data to undergo 256 SSL encryption both in transit and at rest.

2.5.3. Contractor must provide NIH and CITI trained and certified transcription staff.

2.5.4. Upon request the contractor will provide written nondisclosure agreement (NDA) to protect individuals’ confidentiality as needed.

2.5.5. All transcription systems and processes to follow and maintain strict HIPPA compliance

2.5.6. All transcription systems and processes must meet local and national IRB regulations and standards depending on the regulating entity for each task order.

2.5.7. Provide a secure login to its web-based transcription system, through which audio files for transcription on-demand may be submitted.

2.5.8. In event that COIN/Research lose access to upload system due to VA security and privacy issues, contractor will work with VA staff and the VA Information and Security Office to alleviate security issues. Responses to VA staff in this situation will be expected to be within 48 hours of requests with continued daily communication until issues are resolved.

3. Task Order

3.1. Each study or project will be an individual award on this parent IDIQ contract.

3.2. This contract guarantees a minimum of 125 hours of transcription work in the base year of the contract and in every exercised option year.

3.2.1. The contract has a maximum of 830 hours of transcription work in any given year.

3.3. Exercising an option year is at the discretion of the VA Research Office.

3.4. All Task Orders will have a VA project lead that can be contacted through the VA Contract Task Order Manager or COR.

4. Unit descriptions

4.1. Standard Interview transcriptions: Interviews including an individual interviewer and research or evaluation interviewee.

4.2. Focus Group or Meeting Interviews: Interviews that include multiple interviewees or multiple participants in a meeting. More than one interviewee or facilitator.

4.3. Pricing will be based on two types of units (1. Standard Interview Transcriptions and 2. Focus Group or Meeting Transcriptions). Contract will provide a stable and fixed price and fee schedule/rate per minute for each of type of unit.

5. Deliverables

5.1. The contractor shall provide specific deliverables described below within the contract and for each task order as described below.

6. Contractor Responsibilities

6.1. The contractor shall provide the following to meet the requirements of this agreement to include personnel, computers, internet, software management program, transcription equipment (headsets/foot pedals, etc.), reference material, and telephones w/ internet connection. Installation, maintenance, training, updating, and repair to the contractor-owned equipment and software are the sole responsibility of the contractor. There will be no Government furnished equipment provided for services under this agreement.

6.1.1. The C&A requirements do not apply, and that a Security Accreditation Package is not required.

7. Government Responsibilities

7.1. Government shall provide supporting audio recordings and shall make available appropriate VA contacts as required by the work plan. The government shall release any required approvals in a timely manner and in accordance with the work plan.

Period of performance The agreement will be effective for one year with the option to extend services for up to four one-year option periods. Award of an option year is at the sole discretion of VA and award is subject to the availability of VA funds for each fiscal year. Task orders to the contract are at the need/discretion of the VA and will be added as need arises. No services shall be performed in any option year until authorized in writing by the VA Contracting Officer (CO), and a signed task order is issued.

7.2. Anticipated hours of work will be Monday through Friday from 7:30am – 4:00pm. Emergencies will be on a case-by-case basis. Additional hours must be coordinated through the CO. Work will not be performed on weekends or federal holidays.

Observed Federal Holidays:

Labor Day

*Any other day specifically declared a Federal Holiday by executive order by the President of United States

The provision at FAR 52.212-1, INSTRUCTION TO OFFERORS -- COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (MAR 2023), applies to this acquisition with the following addendum:

FAR 52.204-7, System for Award Management (OCT 2018);

FAR 52.204-16, Commercial and Government Entity Code Reporting (AUG 2020);

FAR 52.216-1, Type of Contract (APR 1984): The government anticipates the awarding of a single firm-fixed price definitized contract to fulfill this requirement.

The provision at FAR 52.212-2, EVALUATION -- COMMERCIAL ITEMS (NOV 2021), applies to this acquisition. (a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers:

Contract award will be made based on the solicitation response that represents the best value to the Government using a Contracting Officer’s Comparative Analysis. Since the Contracting Officer is considering price and other factors, the CO may award to other than the lowest-priced offer. The information below explains the evaluation approach:

The Contracting Officer will make a comparative analysis of all offers against the solicitation, using the following factors to decide which offer(s) represent the best value to the Government:

Factor 1: Technical Proposal The offer shall be evaluated on the conformance to the requirements listed in the Statement of Work. The offeror shall submit a technical proposal, that describes the means and methods of successfully performing all work detailed in the SOW to include the personnel being proposed to perform the work. Any safety training or certifications for the services should be permitted with proposal.

Factor 2: Past Performance Offeror shall provide no more than three references of relatively the same size and complexity. Include the following information for each contract: Name and address of contracting activity (company name), contract number, type of contract, total contract amount, and status, date of award and completion, description and location of contract work, list of major subcontractors if any, Contracting Officer or individual responsible for signing the contract, and their telephone and fax number, and the COR’s/Administrator’s name, telephone and fax numbers. Offerors may provide information on problems encountered on identified contracts and the offeror’s corrective action. Searches in CPARS (Contractor Performance Assessment Reporting System), PPIRs (Past Performance Information Retrieval System), as well as Past Performance Questionnaires may be utilized.

Factor 3: Price – Offerors shall provide one copy of the fully completed Price Schedule in the format listed above. Proposed prices will be evaluated for reasonableness.

Technical and past performance factors when combined are more significant than price. Offers will be evaluated to determine which offer provides the best value to the Government, all factors considered.

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that an offer is unacceptable if the option prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award. (End of Provision)

A completed copy of the provision at FAR 52.212-3, OFFEROR REPRESENTATIONS AND CERTIFICATIONS – COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES (DEC 2022) shall be submitted with the offer.

The clause at FAR 52.212-4 CONTRACT TERMS AND CONDITIONS -- COMMERCIAL PRODUCTS AND SERVICES (DEC 2022), applies to this acquisition, with the following addendum:

FAR 52.204-9, Personal Identity Verification of Contractor Personnel (JAN 2011);

FAR 52.204-13, System for Award Management Maintenance (OCT 2018);

FAR 52.204-18, Commercial and Government Entity Code Maintenance (AUG 2020);

FAR 52.216-18 ORDERING (AUG 2020)

(a) Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the Schedule. Such orders may be issued from date of award through May 31, 2028.

(b) All delivery orders or task orders are subject to the terms and conditions of this contract. In the event of conflict between a delivery order or task order and this contract, the contract shall control.

(c) A delivery order or task order is considered “issued” when—

(1) If sent by mail (includes transmittal by U.S. mail or private delivery service), the Government deposits the order in the mail;

(2) If sent by fax, the Government transmits the order to the Contractor's fax number; or

(3) If sent electronically, the Government either—

(i) Posts a copy of the delivery order or task order to a Government document access system, and notice is sent to the Contractor; or

(ii) Distributes the delivery order or task order via email to the Contractor's email address.

(d) Orders may be issued by methods other than those enumerated in this clause only if authorized in the contract.

(End of Clause)

FAR 52.216-19 ORDER LIMITATIONS (OCT 1995)

(a) Minimum order. When the Government requires supplies or services covered by this contract in an amount of less than $2,500.00, the Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.

(b) Maximum order. The Contractor is not obligated to honor—

(1) Any order for a single item in excess of $6,000.00;

(2) Any order for a combination of items in excess of $6,000.00; or

(3) A series of orders from the same ordering office within 365 days that together call for quantities exceeding the limitation in paragraph (b)(1) or (2) of this section.

(c) If this is a requirements contract (i.e., includes the Requirements clause at subsection FAR 52.216-21 of the Federal Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement exceeds the maximum-order limitations in paragraph (b) of this section.

(d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the maximum order limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within 5 days after issuance, with written notice stating the Contractor's intent not to ship the item (or items) called for and the reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source.

(End of Clause)

FAR 52.216-22 INDEFINITE QUANTITY (OCT 1995)

(a) This is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated, in the Schedule. The quantities of supplies and services specified in the Schedule are estimates only and are not purchased by this contract.

(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the quantity designated in the Schedule as the "maximum." The Government shall order at least the quantity of supplies or services designated in the Schedule as the "minimum."

(c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule, there is no limit on the number of orders that may be issued. The Government may issue orders requiring delivery to multiple destinations or performance at multiple locations.

(d) Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor's and Government's rights and obligations with respect to that order to the same extent as if the order were completed during the contract's effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after May 31, 2028 FAR 52.217-8 Option to Extend Services (NOV 1999) The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within fifteen (15) days of the expiration date of the current contract period.

For the purposes of the award of this Contract, the Government intends to evaluate the option to extend services under FAR 52.217-8 as follows:

The evaluation will consider the possibility that the option can be exercised at any time, and can be exercised in increments of one to six months, but not for more than a total of six months during the life of the contract. The evaluation will assume that the prices for any option exercised under FAR 52.217-8 will be at the same rates as those in effect under the contract at the time the option is exercised. The evaluation will therefore assume that the addition of the price or prices of any possible extension or extensions under FAR 52.217-8 to the total price for the basic requirement and the total price for the priced options has the same effect on the total price of all proposals relative to each other, and will not affect the ranking of proposals based on price, unless, after reviewing the proposals, the Government determines that there is a basis for finding otherwise. This evaluation will not obligate the Government to exercise any option under FAR 52.217-8. The `specified' rates under this clause will be those rates in effect under the contract each time an option is exercised under this clause. (End of Clause) FAR 52.217-9 Option to Extend the Term of the Contract (MAR 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within 1 days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 30 days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 5 Years. (End of Clause) FAR 52.223-6 Drug-Free Workplace (MAY 2001);

FAR 52.228-5 Insurance—Work On A Government Installation (JAN 1997);

CL 120 - Supplemental Insurance Requirements: In accordance with FAR 28.307-2 and FAR 52.228-5, the following minimum coverage shall apply to this contract:

(a) Workers' compensation and employers liability: Contractors are required to comply with applicable Federal and State workers' compensation and occupational disease statutes. If occupational diseases are not compensable under those statutes, they shall be covered under the employer's liability section of the insurance policy, except when contract operations are so commingled with a Contractor's commercial operations that it would not be practical to require this coverage. Employer's liability coverage of at least $100,000 is required, except in States with exclusive or monopolistic funds that do not permit workers' compensation to be written by private carriers.

(b) General Liability: $500,000.00 per occurrences.

(c) Automobile liability: $200,000.00 per person; $500,000.00 per occurrence and $20,000.00 property damage.

(d) The successful bidder must present to the Contracting Officer, prior to award, evidence of general liability insurance without any exclusionary clauses for asbestos that would void the general liability coverage. (End of Clause)

52.232-19 Availability Of Funds For The Next Fiscal Year (APR 1984) Funds are not presently available for performance under this contract beyond SEPTEMBER 30TH OF ANY FISCAL YEAR. The Government’s obligation for performance of this contract beyond that date is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise for performance under this contract beyond SEPTEMBER 30TH OF ANY FISCAL YEAR, until funds are made available to the Contracting Officer for performance and until the Contractor receives notice of availability, to be confirmed in writing by the Contracting Officer. (End of Clause)

FAR 52.232-40, Providing Accelerated Payments to Small Business Subcontractors (MAR 2023);

FAR 52.237-2, Protection of government Buildings, Equipment, and Vegetation (APR 1984);

FAR 52.237-3, Continuity of Services (JAN 1991);

VAAR, 852.201-70, Contracting Officer’s Representative (DEC 2022);

VAAR 852.203-70, Commercial Advertising (MAY 2008);

VAAR 852.204-70, Personal Identity Verification of Contractor Personnel (MAY 2020);

VAAR 852.215-70, Service-Disabled Veteran-Owned and Veteran-Owned Small Business Evaluation Factors (JAN 2023) (DEVIATION);

VAAR 852.215-71, Evaluation Factor Commitments (OCT 2019);

VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY

1. GENERAL

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

2. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

a. A contractor/subcontractor shall request logical (technical) or physical access to VA information and VA information systems for their employees, subcontractors, and affiliates only to the extent necessary to perform the services specified in the contract, agreement, or task order.

b. All contractors, subcontractors, and third-party servicers and associates working with VA information are subject to the same investigative requirements as those of VA appointees or employees who have access to the same types of information. The level and process of background security investigations for contractors must be in accordance with VA Directive and Handbook 0710, Personnel Suitability and Security Program. The Office for Operations, Security, and Preparedness is responsible for these policies and procedures.

c. Contract personnel who require access to national security programs must have a valid security clearance. National Industrial Security Program (NISP) was established by Executive Order 12829 to ensure that cleared U.S. defense industry contract personnel safeguard the classified information in their possession while performing work on contracts, programs, bids, or research and development efforts. The Department of Veterans Affairs does not have a Memorandum of Agreement with Defense Security Service (DSS). Verification of a Security Clearance must be processed through the Special Security Officer located in the Planning and National Security Service within the Office of Operations, Security, and Preparedness.

d. Custom software development and outsourced operations must be located in the U.S. to the maximum extent practical. If such services are proposed to be performed abroad and are not disallowed by other VA policy or mandates, the contractor/subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor.

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

3. VA INFORMATION CUSTODIAL LANGUAGE

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

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

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

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

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

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

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

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

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

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

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

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

4. INFORMATION SYSTEM DESIGN AND DEVELOPMENT

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

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

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

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

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

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

g. The contractor/subcontractor agrees to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

e. The contractor/subcontractor must conduct an annual self assessment on all systems and outsourced services as required. Both hard copy and electronic copies of the assessment must be provided to the COR. The government reserves the right to conduct such an assessment using government personnel or another contractor/subcontractor. The contractor/subcontractor must take appropriate and timely action (this can be specified in the contract) to correct or mitigate any weaknesses discovered during such testing, generally at no additional cost.

f. VA prohibits the installation and use of personally-owned or contractor/ subcontractor-owned equipment or software on VA's network. If non-VA owned equipment must be used to fulfill the requirements of a contract, it must be stated in the service agreement, SOW or contract. All of the security controls required for government furnished equipment (GFE) must be utilized in approved other equipment (OE) and must be funded by the owner of the equipment. All remote systems must be equipped with, and use, a VA-approved antivirus (AV) software and a personal (host-based or enclave based) firewall that is configured with a VA-approved configuration. Software must be kept current, including all critical updates and patches. Owners of approved OE are responsible for providing and maintaining the anti-viral software and the firewall on the non-VA owned OE.

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