36C26120Q0153-001.docx

36C26120Q0153

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9.

ISSUED BY

CODE

10. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE

WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15

CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

DUNS:

DUNS+4:

PHONE:

FAX:

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

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

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

25. ACCOUNTING AND APPROPRIATION DATA

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

ARE

ARE NOT ATTACHED.

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

ARE

ARE NOT ATTA

CHED

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

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

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

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

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNAT

URE OF OFFEROR/CONTRACTOR

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. 2/2012)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

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

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

36C26120Q0153 12-11-2019 David Alvarez 916-923-4588 12-30-2019 3:00 pm PST

612MCP

Department of Veterans Affairs VA Sierra Pacific Network (VISN 21) VA Northern California HealthCare System 5342 Dudley Blvd, Bldg 209 McClellan CA 95652-2609 X 621111 $12 Million N/A X VA Northern California Healthcare System 5342 Dudley Blvd., Bldg. 209 McClellan CA 95652

612MCP

Department of Veterans Affairs Department of Veterans Affairs VA Northern California HealthCare System 3230 Peacekeeper Way, Bldg. 209 McClellan CA 95652-1012

Department of Veterans Affairs FMS VA-9(101) Financial Services Center PO Box 149971 Austin TX 78714-9971 See CONTINUATION Page Contractor shall provide Board Certified Vitreoretinal Specialist(s) services to eligible Veterans for the Veteran Affairs Southern Nevada Healthcare System (VASNHS) Las Vegas, Nevada.

This solicitation is being conducted under the authorit y of FAR Parts 12 and 13 and VAAR 873.

*See 52.212-1 and 852.273-73 for submission instructions.

See CONTINUATION Page X David Alvarez

VA-VHA-RPOW-2019-DBD0F013

Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

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

a. CONTRACTOR:

b. GOVERNMENT: Contracting Officer 36C261 Department of Veterans Affairs Network Contracting Office 21 VA Northern California HealthCare System 5342 Dudley Blvd, Bldg 209 McClellan, CA 95652-2609

Use NCO21MedicalSharingTeam@va.gov as an alternate contact information should your POC be non-responsive or no longer assigned to NCO 21. Include in subject line, the Contract Number and ATTN: “Individual name attempted to contact”

2. CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with:

3. INVOICES: Invoices shall be submitted in arrears:

4. GOVERNMENT INVOICE ADDRESS: All Invoices from the contractor shall be submitted electronically in accordance with VAAR Clause 852.232-72 Electronic Submission of Payment Requests.

Department of Veterans Affairs Financial Services Center P.O. Box 149971, Austin TX 78714-9971 ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

**Questions must be submitted no later than December 18, 2019 by 3:00 pm PST**

Please provide your most favored customer/preferred rates.

*Quantities on the schedule are estimates only*

Contractor shall provide Board Certified Vitreoretinal Specialist(s) services in accordance with the attached performance work statement.

Note: Indefinite Delivery, Indefinite Quantity Contract is being used because it is impossible to determine with any certainty the exact amount of services that will be required under this contract.

It is anticipated that a Firm fixed price, Single Award, Indefinite Delivery/Indefinite Quantity contract, shall be awarded as a result of this solicitation.

The guaranteed minimum is $2,500.00. The maximum of the contract, inclusive of all ordering periods, shall not exceed $500,000.00. The Government does not guarantee that it will place any orders under this contract in excess of the guaranteed minimum award amount.

B.2 PRICE/COST SCHEDULE

ITEM INFORMATION

Board Certified Vitreoretinal Specialist Ordering Period 1: 2/1/2020 - 7/31/2020

Board Certified Vitreoretinal Specialist Ordering Period 2: 8/1/2020 - 7/31/2021

Board Certified Vitreoretinal Specialist Ordering Period 3: 8/1/2021 - 7/31/2022

Board Certified Vitreoretinal Specialist Ordering Period 4: 8/1/2022 - 7/31/2023

Board Certified Vitreoretinal Specialist Ordering Period 5: 8/1/2023 - 7/31/2024

PERFORMANCE WORK STATEMENT

1. GENERAL REQUIREMENTS:

1. The contractor shall be or shall provide Board Certified Vitreoretinal Specialist(s). The contractor shall provide at least three full clinic days per month for continuity of care of existing patients and new patients; specifically, two full days and two half days per months (4 hours equals ½ day). The contractor shall see an estimated 50 patients with 25 procedures on a full clinic day and an estimated 35 patients with 10 procedures on a ½ day schedule at the Veteran Affairs Southern Nevada Healthcare System (VASNHS) Eye Clinic on each Fridays of the month, as scheduled. The contractor shall only see patients previously seen in the clinic for continuity of care or new patients referred from the VASNHS staff optometrists. In the outpatient setting, the contractor provides consultative care on new and existing patients and performs laser treatment for conditions including, but not limited to: diabetic retinopathy, macular edema, macular degeneration, retinal holes/tears. The contractor shall also provide other specialized treatment including, but not limited to Intravitreal Injections to treat hemorrhagic macular degeneration, ischemic vascular occlusions, and macular edema as well as Retrobulbar and Subtenon Injections and injections for Blepharospasm. The contractor shall also perform minor procedures supported within the Eye Clinic as needed. In the inpatient setting, the contractor shall provide surgical treatment for the spectrum of Vitreoretinal diseases seen in the veteran population.

1. The contractor shall be able to meet the requirements for credentialing and privileging within VASNHS. The contractor shall provide documentation that he/she is currently or has participated in a formal, accredited training program for pre and post-doctoral students and residents.

1. Services shall be provided to eligible beneficiaries of the Department of Veterans Affairs at VA Southern Nevada Healthcare System, (hereinafter called VASNHS or VA) in accordance with all terms, conditions, provisions, and the schedule of this contract during the contract term.

1. Entries detailing and summarizing the patient care encounter with treatments and recommendations shall be entered/coded in to the Computerized Medical Record System (CPRS) within the specified time frame.

2. CONTRACTOR:

1. The Contractor shall continue to perform the services covered by this contract, for continuity of care and shall be licensed in the State of Nevada and fully competent to perform said duties. All licenses held by the Contractor shall be full and unrestricted. A copy of their licenses shall be made available to the Contracting Officer and the COTR upon request.

2. The contractor shall be credentialed and privileged at VASNHS in accordance with the provisions of VHA Handbook 1100.19. The contractor shall provide outpatient secondary and tertiary consultation and treatment of new patients and existing repeat patients for continuity of care in the VASNHS Eye Clinic on each of the first four Fridays of the month.

3. Documentation of training and experience of the contractor shall be available upon request. The qualifications of the contractor shall also be subject to review by the VA Chief of Staff and/or designee.

The contractor shall designate key personnel in their proposal. The contractor cannot change key personnel without VA approval, and when changes in key personnel are approved, the contract prices may be adjusted accordingly to reflect the salary and benefit of the personnel actually providing the services.

3. SCHEDULING PROCESS:

1. The contractor shall provide at least three full days per month. The clinic shall be located and scheduled at VASNHS Eye Clinic at the VASNHS Medical Center. The contractor shall see an estimated 50 patients with 25 procedures on a full clinic day schedule and an estimated 35 patients with 10 procedures on a ½ day schedule. He/she shall only see patients referred from the VA staff optometrists and existing patients being followed for continuity of care.

4. PERSONAL HYGIENE AND CLOTHING:

Contract health care providers shall be neat, clean, well groomed and shall otherwise exercise good personal hygiene. Appropriate and professional attire shall be worn at all times.

5. HEALTH REQUIREMENTS:

1. Contractor shall not perform services under this contract unless a pre-assignment medical examination has been performed within 30 calendar days of their first scheduled shift. Pre-assignment medical examinations shall be the responsibility of the Contractor at no cost to the government.

2. As a condition of employment Occupational Safety and Health Administration (OSHA) requires that all contract staff who shall have occupational exposure to blood, other body fluids, or other potentially infectious materials, shall receive Hepatitis B vaccine, sign a voluntary declination or have documented proof of immunity to Hepatitis B infection. The immunization shall be the responsibility of the contractor at no cost to the Government.

3. Contract health care provider shall be free of infectious diseases (to include but not limited to active Tuberculosis and Viral Hepatitis) that might reasonably be expected to place other workers, patients or the public at risk.

4. The contractor shall provide the Government with all the information necessary to ensure that Government records are maintained correctly and in compliance with, those required by the Joint Commission of Accreditation of Healthcare Organizations (JCAHO) and/or Association Health Administration (VHA) regulations and directives OSHA and the Center for Disease Control health records requirements.

5. The contractor shall provide the Contracting Officer Representative (COR) with certification that the medical evaluation required above, a minimum of five (5) working days prior to performance of contract services. This certification shall state the date that the examination was completed, the doctor’s name that performed the examination, a statement concerning the physical health of the individual and the following statement:

[Name of contract health care provider] is suffering from no contagious diseases to include, Tuberculosis and Hepatitis.

6. The Government may take nose and throat cultures from the contractor when required by Government Infection Control Committees (ICC).

6. IMMUNIZATION WAIVER/EXEMPTIONS: Waivers and exemptions may be granted in accordance with VA regulations and Medical Staff Bylaws.

7. DRUG SCREENING: Contractors are subject to random drug testing. They are also subject to drug testing when there is a reasonable suspicion that they use or are impaired by illegal drugs while on duty. Reasonable suspicion of drug use or impairment includes, but is not limited, to the following:

1. Observable phenomena, such as direct observation of drug use, possession or the physical symptoms of being under the influence of a drug;

2. A pattern of abnormal conduct or erratic behavior;

3. Arrest or conviction for a drug-related offense or the identification of a contract health care provider as the focus of a criminal investigating into illegal drug possession, use or trafficking;

4. Information provided either by reliable and credible sources or independently corroborated; or

5. Newly discovered evidence that the contract health care provider has tampered with a previous drug test.

8. PATIENT SENSITIVITY:

Contract health care provider shall respect and maintain the basic rights of patients, demonstrating concern for personal dignity and human relationships.

9. CONTRACT PERFORMANCE MONITORING:

1. Veterans Integrated Service Network (VISN) Directors, Deputy Network Directors, Medical Center Directors, Heads of Contracting Activities (HCA), and Contracting Officers are responsible for compliance with the requirements outlined in Directive 1663, for meeting all requirements of law and policy, for meeting all labor management responsibilities, for the establishment of appropriate and legally-sound contract terms, for making sound business decisions, for ensuring that staff are properly trained and are fully capable of exercising any delegated authority, for ensuring adequate documentation of the contract price, and utilization and performance monitoring.

2. Monitoring of contractors time shall be demonstrated through clinical and administrative record reviews and through patient satisfaction survey. The COR shall be responsible for verifying contract compliance. After contract award, any incidents of contractor noncompliance as evidenced by the monitoring procedures or by failure to supply required documentation shall be forwarded immediately to the Contracting Officer.

3. The contractor shall maintain an adequate record system for recording services, listing servicing providers, charges, Comprehensive Procedure Tracing (CPT) codes applicable, patient identification, service dates and all other commonly accepted information elements for services rendered to patients pursuant to this contract (including, but not limited to, such records as are necessary for the evaluation of the quality, appropriateness and timeliness of services performed under this contract).

10. MEDICAL RECORDS:

Clinical or other medical records of VA beneficiaries treated by Contractor under this contract are VA records and shall be maintained by the VA in CPRS. Contractor personnel who obtain access to hardware or media which may manipulate or store drug or alcohol abuse data, sickle cell anemia treatment records, records or tests or treatment for or infection with HIV, medical quality assurance records, or any other sensitive information as defined by the Department of Veterans Affairs, shall not have access to the records unless absolutely necessary to perform their contractual duties. Any individual who has access to these data shall disclose them to no one.

11. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA):

Contractor shall take reasonable measures to ensure patient privacy and confidentiality. The contract service providers herein agree to take all reasonable precautions to safeguard patient information from unauthorized access or modification, in both electronic and hard-copy formats. This includes not only electronic security measures such as “strong” user passwords on computer systems, but also physical barriers to prevent unauthorized use of computer work-stations; that hard copy patient files are in secured lockable areas, that files are in lockable cabinets, that the cabinets can in fact be locked, i.e., keys are available, and the locking mechanisms work properly. This precaution also includes the proper transfer of patient information via electronic means, such as faxing or system-to-system transmission.

Contractor personnel shall make sure no patient information of any type are given to outside parties, agencies or organizations of any type without the expressed written consent of the patient and the VA and only in capacities directly related to the provision of the services contracted in this instrument. That only the minimum necessary patient information is used to provide appropriate service to the correct patient. The Contractor is subject to the same penalties and liabilities for unauthorized disclosures of such records as VA personnel.

That the undersigned understands that all parties are bound by the requirements of the “Health Insurance Portability and Accountability Act of 1996” which provide guidance on the protection of patient privacy and confidentiality. This Act mandates that all government agencies and those bodies with whom they contract shall be in compliance with the directives of the Act. Details of the Act are still under development by the Congress of the United States. Once these detailed directives are released, this current contract may require a modification to be in compliance depending on the effective date of the Act as decided by the Congress and President of the United States.

12. PERFORMANCE IMPROVEMENT (PI)/RISK MANAGEMENT:

Contract health care providers shall participate in PI/Risk Management activities to the extent required by VA Southern Nevada Healthcare System Memoranda. Contract personnel specific data shall be submitted by the Contractor to the COR upon request. The Government shall evaluate the contract personnel professional, as differentiated from administrative, performance under this contract using quality assurance standards specified in Quality Assurance Surveillance Plan, and Accreditation for Association for Ambulatory Healthcare (AAAHC) Standards.

13. QUALITY ASSURANCE AND PERFORMANCE MONITORING:

Contractor shall be held to the same standard as VA personnel through quality assurance and performance monitoring to ensure compliance under this contract. These procedures shall include time and attendance logs verification, monitoring of the Computerized Patient Record System (CPRS) records or other appropriated records, called for under this contract received by the VA. The Quality Assurance and Performance Monitoring shall be governed by the appointed COR who shall be responsible for verifying compliance with the terms and conditions of the contract. After the contract is awarded, any incidents as evidenced by the monitoring procedures shall be forwarded immediately to the Contracting Officer. In addition, the COR shall forward the summary evaluation of the contractor performance to the Contracting Officer once performance ends.

14. REGULATORY BODY REQUIREMENT:

Contractor’s personnel shall be subject to the same quality assurance standards in meeting or exceeding current recognized National Standards as established by Joint Commission on Accreditation of Healthcare Organizations (JCAHO). Copies of the quality assurance standards are on file in the VA Medical Healthcare Group and shall be available to the Contractor. The Contractor shall perform services in accordance with the ethical, professional, and technical standards of the healthcare industry as consistent with VA policy, regulations, and procedures. The Contractor shall be technically proficient in the skills necessary to fulfill the Government’s requirements, including the ability to speak, understand, read and write English fluently. Contract personnel shall be responsible for compliance with all procedures in accordance with the applicable VA Southern Nevada Healthcare System written policies, procedures, Bylaws of the Medical Staff and protocols. Copies of the Bylaws shall be available to all Contractor personnel and are located in within the Healthcare Group. They shall not introduce new procedures or services without prior recommendation to and approval of the Chief of Staff (COS) or authorized representative(s) and through the Contracting Officer.

15. HHS/OIG REQUIREMENTS:

To ensure that the individuals providing services under this contract have not engaged in fraud or abuse regarding Sections 1128 and 1128A of the Social Security Act regarding federal health care programs, the Contractor is required to check the Health and Human Services - Office of Inspector General (HHS/OIG), List of Excluded Individuals/Entities on the OIG Website (www.hhs.gov/oig) for each person providing services under this contract. Further, the Contractor is required to certify in its proposal that all persons listed in the contractor’s proposal have been compared against the OIG list and are NOT listed. During the performance of this contract, the Contractor is prohibited from using any individual or business listed on the List of Excluded Individuals/Entities.

16. CONTINUING MEDICAL EDUCATION (CME) REQUIREMENTS:

Contractor shall comply with all continuing education requirements of their respective licensing boards to maintain licensure. CME is the sole responsibility of the Contractor, shall be obtained at no additional cost to the Government, and shall be reported to the COR annually on the first normal duty day in January for the previous calendar year. Periodic CME may be conducted at the VA and may be available, at no cost, to any contract health care provider.

17. EVIDENCE OF INSURANCE COVERAGE:

Before commencing work under this contract, the Contractor shall furnish certification to the Contracting Officer that the coverage required (General & Professional Liability as well as Workers Comp) has been obtained and such policy shall state, “This policy may not be changed or cancelled without written notice to the VA Contracting Officer, Network Contracting Office-22, 4811 Airport Plaza Drive, Suite 600, Long Beach, CA, 90815. Said policy shall bear an appropriate “loss payable clause’’ to the United States as its interest may appear. Such evidence of insurance shall not be waived.

18. PERSONNEL POLICY:

Payment for any leave, including sick leave or vacation time is considered the sole responsibility of the Contractor. The Contractor shall comply with all existing local, state, federal and/or union laws, regulations relevant to fringe benefits, and premium pay. The contractor shall not be considered VA Southern Nevada Healthcare System employers for any purpose. There is no employer-employee relationship between the VA and the contractor or the Contractor’s employee(s).

19. COMPUTER SECURITY:

In the performance of official duties, if the contractor has regular access to printed and electronic files containing sensitive data that shall be protected under the provisions of the Privacy Act of 1974 and other applicable laws, federal regulations, VA statutes and policy, and VHA policy. The contractor is responsible for (1) protecting the data from unauthorized release or from loss, alteration, or unauthorized deletion and (2) following applicable regulations and instructions regarding access to computerized files, release of access codes, etc., as set out in the access agreement which the contract personnel signs.

20. HOURS OF OPERATION:

Contract personnel shall be available on every scheduled Friday, excluding national holidays and vacations, to provide scheduled procedures.

21. BILLING FOR SERVICES: The contractor is responsible for submitting billing for services.

22. PAYMENTS:

23. INVOICE AND PAYMENT:

Payment is to be made monthly in arrears. Contractor shall submit invoices in original addressed to: VAFSC, P.O. Box 149971, Austin, TX 78714. Invoices submitted for payment shall be reviewed for accuracy, verified against time records and attendance logs and shall be subject to approval by the Government prior to remittance of payment. Any discrepancies found shall be brought to the attention of the Contractor and shall be resolved. A corrected invoice shall then be submitted by the Contractor as instructed by the Government.

Patients shall not be invoiced for services. The invoice shall be itemized to include the following information.

(3 Date of treatment(s)

(4) Hours

(7) Invoice number, date; and Contract/Obligation number Payment for services rendered by the Contractor shall be made monthly upon receipt of a proper invoice. When inadequate invoices are received (those lacking any of the essential items listed above), the vendor shall be notified in writing within 7 calendar days of receipt of such bills that these bills cannot be processed for payment until a proper invoice is submitted. (Prompt Payment Act – Public Law 97-177) The itemized invoice shall be verified for certification of the services rendered during the billing period. The VA Contracting Officer’s Technical Representative shall certify the contractor’s invoice for payment of services rendered

24. CONTRACTOR PERSONNEL SECURITY REQUIREMENTS:

The Office of Security and Law Enforcement provides Department-wide policy on the assignment of appropriate position sensitivity designations associated with the Department of Veterans Affairs positions involving national security and public trust responsibilities, and on the level of background investigations required for applicants for, and incumbents of, those positions. In addition to VA employees, the policy and investigative requirements are applicable to the Contractor who requires access to VA Information designated as sensitive.

Contractor requires access to VA Information shall be subject to all necessary background investigations and receive a favorable adjudication from the VA Office of Security and Law Enforcement to ensure compliance with such policy.

Contractor is required to read, write, speak, and understand the English language, unless otherwise specified in this Contract or agreed to by the Government.

The cost for such investigations shall be borne by the Contractor, either in advance or as reimbursement to the Government. The level of sensitivity shall be determined by the Government on the basis of the type of access required. The level of sensitivity shall determine the depth of the investigation and the cost thereof. At this time, the current estimated costs for such investigations are as follows:

LEVEL OF

SENSITIVITY

BACKGROUND

INVESTIGATION LEVEL

APPROXIMATE COST

The Contractor shall be required to furnish all applicable information required to conduct the investigation, such as, but not limited to, the name, address, and social security number. The VA shall provide all the necessary instructions and guidance for submission of the documents required to conduct the background investigation. Background investigations shall not be required for Contractor personnel who shall not be required to access VA Information designated as sensitive.

25. POST-AWARD PERFORMANCE CONFERENCE:

The Contracting Officer may schedule a post-award performance conference with the Contractor, if deemed necessary, for contract orientation purposes.

B.3 IT CONTRACT SECURITY

VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY

1. GENERAL

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

2. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

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

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

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

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

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

3. VA INFORMATION CUSTODIAL LANGUAGE

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

b. VA information should not be co-mingled, if possible, with any other data on the contractors/subcontractor's information systems or media storage systems 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 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 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.