Attachment 1 - Statement of Work -Shred Sevice and Bins.docx

STATEMENT OF WORK

DOCUMENT DESTRUCTION AND SHREDDING SERVICE

PART 1 – GENERAL

1.1 SCOPE: The contractor will be responsible for the collection and final destruction of all sensitive information - particularly Personally Identifiable Information (PII) - placed in contractor labeled and supplied recycling bins throughout the facility.

1.2 LOCATION: Denver Federal Center, Building 44, Lakewood, CO 80215

PART 2 – SERVICE REQUIREMENTS

A certificate of initial shredding will be provided to the VA upon the completion of the initial on-site shredding required by the contractor. This document will identify the type of container used to remove sensitive information from VA secure areas to the initial shredding vehicle used. At no time shall these containers be left unattended or be unlocked. The contractor’s initial Destruction Document must also contain the amount of product removed from VA secure areas, the date the information was removed and a signature of the technician performing the initial shredding and recycling service.

2.1 FINAL DESTRUCTION:

If for any reason the final destruction is performed away from a VA facility it must be approved by the Contracting Officer Representative (COR) prior to removal. Shredding will be processed by a National Association for Information Destruction (NAID) certified, bonded, and insured recycler or paper mill. Any transportation of non-shredded material must be protected until final destruction is complete. If the final destruction is witnessed by a contractor (or subcontractor or third party), then the contractor must submit a valid certificate of final destruction to the COR which will include specific clauses to ensure that PII and other VA sensitive information was handled and stored in a secure manner until it undergoes final destruction. If destruction is conducted on site the contractor will provide Certificate of Destruction, to the COR, verifying final destruction of the material to the degree of non-legibility of all material removed.

2.2 EQUIPMENT REQUIREMENTS:

The contractor must provide a lockable disposal bins to properly secure and store material identified by the VA as being recyclable while awaiting the shredding process. The actual number of bins required will be determined by the VA and contractor upon initiation of this contract with the understanding that the number could increase or decrease depending on mission and growth of the VA. The vender will supply the Contracting Officer Representative with an adequate number of key sets to allow the VA to perform its mission in the most convenient manner possible.

2.3 FREQUENCY:

One shredding pick-up of sensitive documentation (paperwork) per week between the hours of 7am – 3pm., on Thursday not to include federal holidays. Where a pickup day falls on a federal holiday, the next business day is the pickup day.

Location: One Denver Federal Center, Building 44, Denver, CO 80225

2.4 LOCATION OF INITIAL SERVICE:

Driver will provide receipt of shredding identifying number of tips, boxes or weight destroyed and VA employee signature upon completion. Document destruction will be performed on site.

2.5 INSPECTIONS:

Contractor’s processes, transportation/Shredding vehicles, warehouse, and final destruction plants are subject to inspection by VA at any time during this contract.

PART 3 – CONTRACTOR PERSONNEL SECURITY

Access to VA Information The contractor requires no access to VA Information Systems. Access to VA information is restricted to physical documents collected throughout the facility to be shredded. The C&A requirements do not apply. Security Accreditation Package is not required. Incidental exposure to PHII/PHI will not require a Business Associate Agreement in accordance with VHA Privacy Fact sheet, Business Associate Agreement, and their Applicability to Janitorial, Shredding, Hazardous Waste Disposal and Courier Services.

Access to VA Spaces Contractors will have set keys to the Shred Bins (a copy will also be maintained by the VA facilities warehouse team). Contractors collect shred bin contents during VA operation hours; therefore, they may be unescorted. The contractors will be escorted by the logistics team when they leave the building out to the truck and when they are shredding to ensure data security.

3.1 BACKGROUND INVESTIGATION:

The position sensitivity impact for this effort has been designated as LOW Risk and the level of background investigation is Tier 1/Low Tier. All Contractor employees who require access to the Department of Veterans Affairs shall be the subject of a background investigation and must receive a favorable adjudication from the VA Security. Contractor must submit fingerprints and personal history statements, as well as respond to security and vetting requirements.

PART 4 – SECURITY

4.1 SECURITY INCIDENT INVESTIGATION:

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 shall immediately notify the Contracting Officer Representative (COR) and simultaneously, the designated ISSO/Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information. To the extent known by the contractor, the contractor’s notice to VA will identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the VA information/assets were placed at risk or compromised), and any other information that the contractor considers relevant. The contractor will simultaneously report the incident to the appropriate law enforcement entity(ies) of jurisdiction, including the VA Offices of the Inspector General and Security and Law Enforcement, in instances of theft or break-in or other criminal activity. The contractor and their employees will 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 will 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. To the extent practicable, the contractor shall mitigate any harmful effects on individuals whose VA information was accessed or disclosed in a security incident. In the event of a data breach with respect to any VA Sensitive Information processed or maintained by the contractor under the contract, the contractor is responsible for liquidated damages to be paid to VA.

4.2 LIQUIDATED DAMAGES FOR DATA BREACH:

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. The contractor 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.

Each risk analysis shall address all relevant information concerning the data breach, including the following:

(1) Nature of the event (loss, theft, unauthorized access);

(2) Description of the event, including:

(a) date of occurrence;

(b) data elements involved, including any PII, such as full name, social security number, date of birth, home address, account number, disability code;

(3) Number of individuals affected or potentially affected;

(4) Names of individuals or groups affected or potentially affected;

(5) Ease of logical data access to the lost, stolen or improperly accessed data in light of the degree of protection for the data, e.g., unencrypted, plain text;

(6) Amount of time the data has been out of VA control;

(7) The likelihood that the sensitive personal information will or has been compromised (made accessible to and usable by unauthorized persons);

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

(9) Assessment of the potential harm to the affected individuals;

(10) Data breach analysis as outlined in 6500.2 Handbook, Management of Security and Privacy Incidents, as appropriate; and

(11) Whether credit protection services may assist record subjects in avoiding or mitigating the results of identity theft based on the sensitive personal information that may have been compromised.

Based on the determinations of the independent risk analysis, the contractor shall be responsible for paying to the VA liquidated damages up to the amount of $37.50 per affected individual to cover the cost of providing credit protection services to affected individuals consisting of the following:

(1) Notification;

(2) One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports;

(3) Data breach analysis;

(4) Fraud resolution services, including writing dispute letters, initiating fraud alerts and credit freezes, to assist affected individuals to bring matters to resolution;

(5) One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and

(6) Necessary legal expenses the subjects may incur to repair falsified or damaged credit records, histories, or financial affairs.

4.3 SECURITY TRAINING

Personnel who will be accessing information systems must read and acknowledge their receipt and acceptance of the VA Information Security Rules of Behavior (RoB) prior to gaining access to any VA information system or sensitive information. The rules are included as part of the security awareness training that all personnel must complete via the VA’s TMS. After the user’s initial acceptance of the Rules, the user must re-affirm their acceptance annually as part of the security awareness training.

Acceptance obtained through electronic acknowledgment is tracked through the TMS system. All VA employees must complete annual Privacy and Security training. This training includes, but is not limited to, the following TMS Courses:

· VA 10176: Privacy and Info Security Awareness and Rules of Behavior

· VA 10203: Privacy and HIPAA Training

· VA 3812493: Annual Government Ethics

TMS Link to create a new Non-employee User: https://www.tms.va.gov/SecureAuth35/

The Contractor shall provide to the contracting officer a copy of the training certificates for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required.

Failure to complete this mandatory training within the timeframe required will be grounds for suspension or termination of all physical and/or electronic access privileges and removal from work on the contract until such time as the training is completed.

4.4 BACKGROUND INVESTIGATIONS:

The position sensitivity impact for this effort has been designated as LOW Risk and the level of background investigation is Tier 1/Low Tier. Contract personnel are subject to investigation and favorable adjudication.

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.

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.