36C26218R0759-003.pdf

COMBINED SYNOPSIS/SOLICITATION FOR COMMERCIAL ITEMS

General Information

Document Type: Combined Solicitation/Synopsis Solicitation Number: 36C26218R0759 Posted Date: August 23, 2018 Original Response Date: N/A Current Response Date: September 7, 2018 at 4:00pm PST (revised) Product or Service Code: R707 Set Aside: Service Disabled Veteran Owned Small Business

(SDVOSB)

NAICS Code: 541611

Contracting Office Address

Network Contracting Office 22 4811 Airport Plaza Drive Suite 600 Long Beach, CA 90815

Description

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Federal Acquisition Regulation (FAR) subpart 12.6, “Streamlined Procedures for Evaluation and Solicitation for Commercial Items,” as supplemented with additional information included in this notice.

This announcement constitutes the only solicitation; proposals are being requested, and a written solicitation document will not be issued.

This solicitation is a Request for Proposal (RFP). The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2005-99.

The associated North American Industrial Classification System (NAICS) code for this procurement is 541611, with a small business size standard of $15.0M.

The Network Contracting Office (NCO) 22 is seeking contractor support to support its contracting operations at its Long Beach, CA office.

All interested companies shall provide proposals in accordance with the following Price/Cost Schedule:

IDIQ Contract Guaranteed Minimum: $2,500.00 Four-Year IDIQ Contract Ceiling Limit: $7,000,000.00

Price/Cost Schedule:

Base Year: September 23, 2018 – September 22, 2019

Line Item Description Estimated Quantity

Unit of Issue

Unit Price Total Price

0001 Entry Level Contracts Support Specialist 2080 HR $ $ 0002 Junior Level Contracts Support Specialist 1560 HR $ $ 0003 Junior Level Contracts Support Specialist 2080 HR $ $ 0004 Journeyman Level Contracts Support Specialist 1560 HR $ $ 0005 Journeyman Level Contracts Support Specialist 2080 HR $ $ 0006 Journeyman Level Contracts Support Specialist 2080 HR $ $ 0007 Journeyman Level Contracts Support Specialist 2080 HR $ $ 0008 Journeyman Level Contracts Support Specialist 2080 HR $ $ 0009 Contracts Closeout Specialist II 2080 HR $ $ 0010 Contracts Closeout Specialist II 2080 HR $ $ 0011 Contracts Closeout Specialist II 2080 HR $ $ 0012 Contracts Closeout Specialist II 2080 HR $ $

Base Year Total Price: $

Option Year 1: September 23, 2019 – September 22, 2020

Unit of Issue

Unit Price Total Price

1001 Entry Level Contracts Support Specialist 2080 HR $ $ 1002 Junior Level Contracts Support Specialist 1560 HR $ $ 1003 Junior Level Contracts Support Specialist 2080 HR $ $ 1004 Journeyman Level Contracts Support Specialist 1560 HR $ $ 1005 Journeyman Level Contracts Support Specialist 2080 HR $ $ 1006 Journeyman Level Contracts Support Specialist 2080 HR $ $ 1007 Journeyman Level Contracts Support Specialist 2080 HR $ $ 1008 Journeyman Level Contracts Support Specialist 2080 HR $ $ 1009 Contracts Closeout Specialist II 2080 HR $ $ 1010 Contracts Closeout Specialist II 2080 HR $ $ 1011 Contracts Closeout Specialist II 2080 HR $ $ 1012 Contracts Closeout Specialist II 2080 HR $ $

Option Year 1 Total Price: $

Option Year 2: September 23, 2020 – September 22, 2021

Unit of Issue

Unit Price Total Price

2001 Entry Level Contracts Support Specialist 2080 HR $ $ 2002 Junior Level Contracts Support Specialist 1560 HR $ $ 2003 Junior Level Contracts Support Specialist 2080 HR $ $ 2004 Journeyman Level Contracts Support Specialist 1560 HR $ $ 2005 Journeyman Level Contracts Support Specialist 2080 HR $ $ 2006 Journeyman Level Contracts Support Specialist 2080 HR $ $ 2007 Journeyman Level Contracts Support Specialist 2080 HR $ $ 2008 Journeyman Level Contracts Support Specialist 2080 HR $ $ 2009 Contracts Closeout Specialist II 2080 HR $ $ 2010 Contracts Closeout Specialist II 2080 HR $ $ 2011 Contracts Closeout Specialist II 2080 HR $ $ 2012 Contracts Closeout Specialist II 2080 HR $ $

Option Year 2 Total Price: $

Option Year 3: September 23, 2021 – September 22, 2022

Unit of Issue

Unit Price Total Price

3001 Entry Level Contracts Support Specialist 2080 HR $ $ 3002 Junior Level Contracts Support Specialist 1560 HR $ $ 3003 Junior Level Contracts Support Specialist 2080 HR $ $ 3004 Journeyman Level Contracts Support Specialist 1560 HR $ $ 3005 Journeyman Level Contracts Support Specialist 2080 HR $ $ 3006 Journeyman Level Contracts Support Specialist 2080 HR $ $ 3007 Journeyman Level Contracts Support Specialist 2080 HR $ $ 3008 Journeyman Level Contracts Support Specialist 2080 HR $ $ 3009 Contracts Closeout Specialist II 2080 HR $ $ 3010 Contracts Closeout Specialist II 2080 HR $ $ 3011 Contracts Closeout Specialist II 2080 HR $ $ 3012 Contracts Closeout Specialist II 2080 HR $ $

Option Year 3 Total Price: $

Base Year: $ Option Year 1: $ Option Year 2: $ Option Year 3: $

Total Price (Base Year & Option Years 1 – 3): $

STATEMENT OF WORK (SOW)

1. DESCRIPTION OF SERVICES

1.1. Introduction. The Service Area Organization (SAO) West, NCO22 requires the service of contractors to support its operations to ensure the completion of customer requirements throughout the fiscal year. These contracted contracting specialists and contract closeout specialists will allow NCO22 to support the myriad of contracting requirements for each of the eight (8) healthcare systems within VISN 22.

1.2. Scope. The contractor shall provide qualified personnel to perform non-personal services in accordance with this Statement of Work (SOW). Services shall include, but are not limited to, the following: pre-award functions, price and cost analysis, preparation of award documents and supporting documentation, contract administration, contract closeout, and other related non-inherently governmental functions.

1.3. Objectives. The following provides the overall functional objectives for the Contracts Support

Specialist.

The contractor shall assist in the following functions:

1.3.1. Solicit, evaluate, negotiate, analyze, advise, closeout, award, and terminate contracts for the procurement of supplies and services.

1.3.2. Research, analyze, and review all applicable policies, guidance, and regulations to support the customer and government contracting officers in their decision-making.

1.3.3. Provide procurement assistance, advice, and guidance to the customer as requested. The contractor does not have approval or award authority. All advice and guidance shall be approved by government contracting officers in accordance with FAR 7.503(c)(12).

1.3.4. Advise acquisition team, as needed, on price, cost, and/or financial-related matters throughout the development of sourcing strategies and throughout the solicitation, evaluation, negotiation, and award of contractual actions for supplies and services.

1.3.5. Provide cost and price analysis recommendations as requested.

1.3.6.Recommend business solutions to day-to-day contractual challenges.

1.3.7.Other specific tasks shall include: acquisition strategy planning, requirements review and Performance Work Statement (PWS)/Statement of Work (SOW) development in collaboration with customers, source selection support, synopsis and solicitation development, preparing mandatory contract file documentation, contract management, and administration.

1.4. Objectives. The following provides the overall functional objectives for the Contracts Closeout

Specialist:

The contractor shall:

1.4.1. Utilize VA internal and external financial and business management systems, to include, but not limited to FMS, IPPS, and IFCAP/VISTA.

1.4.2. Communicate with the COR/end user, contracting, logistics, accounting, and vendors regarding invoices, accuracy of accruals, outstanding balances, and purchase order status to expedite close out resolution.

1.4.3. Verify purchase orders, tax identification, invoice submissions, and payment inquiries.

1.5. Labor Category Qualifications

1.5.1. The contractor shall provide dedicated, full-time, qualified personnel to manage and execute all aspects of the work described in this SOW. Education may not be substituted for required work experience.

1.5.2. All personnel shall be thoroughly familiar and proficient in the use of commercial software packages such as Microsoft Word, Excel, and PowerPoint.

1.5.3. All Contracts Support Specialists shall have a bachelor’s degree from an accredited college or university. Coursework must have included at least 24 semester hours in any combination of the following fields: accounting, business, finance, law, contracts, purchasing, economics, industrial management, marketing, quantitative methods, or organization and management.

1.5.4. Journeyman Level Contracts Support Specialist (GS 1102-12 equivalent):

At least four (4) years of federal contracting experience, and preferably with experience with the electronic Contract Management System (eCMS) and VISTA applications within the past two years. Documented experience in, and working knowledge of VA programs is preferable. The candidate shall have excellent writing skills and be able to effectively communicate orally and in writing. The candidate shall be familiar with FAR and VAAR based procurements.

1.5.4.1. Duties Required: The candidate shall assist with solicitation, evaluation, negotiation, analysis, awards and terminations on contracts for the procurement of supplies and services, including complex contracts and high-dollar acquisitions.

Work requires analysis and evaluation of certified cost and pricing data and other types of pricing information to determine price reasonableness. Preparation of contract files and electronic documents is also required. The candidate shall independently prepare contracting recommendations for the contracting officer that require research and interpretation of evolving government regulations, policies, guidance, and laws.

1.5.5. Junior Level Contracts Support Specialist (GS 1102 - 9/11 equivalent):

At least two (2) years of federal contracting experience is necessary, and preferably with experience with the eCMS and VISTA applications within the past two years. The candidate shall have excellent writing skills and be able to effectively communicate orally and in writing. The candidate shall be familiar with FAR and VAAR based procurements.

1.5.5.1. Duties Required: With minimal direction, the candidate shall perform routine contracting tasks, such as acquisition planning, preparation of solicitations, proposal analysis, and post-award activities in support of less complex government acquisitions. The candidate shall assist with the close out of existing contracts as needed. Work includes preparing portions of less complex contractual documents, and reading and interpreting basic procurement regulations, policies, and directives to make recommendations to the contracting officer.

1.5.6. Entry Level Contracts Support Specialist:

Less than two (2) years of federal contracting experience is necessary, and preferably with experience with the eCMS and VISTA applications. The candidate shall have excellent writing skills and be able to effectively communicable orally and in writing. The candidate shall be familiar with FAR and VAAR based procurements.

1.5.6.1. Duties Required: The candidate shall perform routine contracting tasks, such as acquisition planning, preparation of solicitations, proposal analysis, and post-award activities in support of less complex government acquisitions. The candidate shall assist with the close out of existing contracts as needed. Work includes preparing portions of less complex contractual documents, and reading and interpreting basic procurement regulations, policies, and directives to make recommendations to the contracting officer.

1.5.7. Contracts Closeout Specialist II:

At least three (3) years of relevant experience, preferably with the VA. The candidate shall have documented experience in, and working knowledge of the following VA programs:

FMS, IPPS, and VISTA. The candidate shall have excellent writing skills and be able to effectively communicate orally and in writing.

1.5.7.1. Duties Required: Knowledge of monitoring and reviewing aged payables and undelivered orders to ensure purchase orders and contracts are accurately funded and properly managed in accordance with VA guidelines. Facilitates communication and problem resolution to ensure proper use and accounting of purchase orders to help expedite closeout as appropriate. Use of internal systems such as general ledgers, VISTA, and locally developed Financial Indicator Database access to identify orders that are impacted by the Financial Indicator criteria.

1.5.8. Inherently Governmental Functions. Tasks that are prohibited under this contract are listed in FAR Subpart 7.5, “Inherently Government Functions.”

1.6. Key Personnel. All proposed personnel shall be considered key personnel. As such, any change in personnel will be subject to Government approval prior to the change. The contractor shall minimize the effect and impact to the organization by strategically managing contractor personnel turnover to the greatest extent possible.

1.6.1. Contractor Identification. Contractor employees shall clearly identify themselves as

“Contractors” at all times. This shall include: when in the workplace; at meetings; and in conversations, telecommunications, mail, electronic mail (e-mail), and faxes.

1.6.2. Background Investigation. A criminal background check is required for all contractor personnel working in government facilities. All contractor personnel working in Government facilities must complete fingerprinting and start background investigation paperwork prior to the start of performance or placement on the contract.

1.6.3. Non-Disclosure Agreements. To ensure the integrity of government contracting operations, all contractor personnel shall execute a Non-Disclosure Agreement before work under this contract.

1.7. Personnel Maintenance. Maintain minimal personnel turnover throughout the life of the contract.

Ensure continuation of services during prolonged personnel absences due to sickness, leave, and voluntary or involuntary termination from employment such that impact to the government is minimal. Once the contractor knows that an employee is leaving and will no longer provide support under the contract, the contractor shall provide written documentation to the CO and Contracting Officer’s Representative (COR) within three (3) business days of the employee advising the contractor of his/her intent to leave. This written notification shall include the date and time the position will be vacant, the reason the employee will no longer be working under the contract, and the anticipated replacement date.

1.7.1. FTE Vacancies. Any position vacancies shall not exceed fourteen (14) calendar days unless directed or approved, in writing, by the CO. FTE vacancies beyond the fourteen

(14) calendar day period may result in negative past performance/CPARS ratings.

1.7.2. Replacement/Substitution. Prior to replacing/substituting key personnel performing on this contract, the contractor shall provide a sufficiently detailed Qualification Summary/Resume of proposed personnel for government approval/verification of education and experience requirements.

1.7.3. Organizational Conflicts of Interest (OCI): The OCI plan shall be submitted to the contracting officer. The contractor shall provide an OCI Plan for detecting, disclosing, avoiding, and mitigating OCI issues/risks involved with the performance of this contract.

The plan shall identify any potential conflicts of interest and shall provide a process for dealing with any OCI that is identified during the performance of the contract. The OCI plan shall disclose all cross-teaming arrangements and shall include a representation that there will be no “cross-talk” or information shared between the two affiliates in connection with the contract.

1.7.4. Removal of Personnel at Government Request. The government may request removal

(permanent or temporary) of contract personnel upon discovery of fraudulent resume documentation, or when contractor personnel behave in an unprofessional manner that would be considered unacceptable by a reasonable person. The contractor shall provide a sufficiently detailed qualification summary/resume of proposed personnel for government coordination prior to replacing/substituting personnel under these circumstances.

1.7.5. Travel. Travel may be required for training or other official purposes per CO direction. If required, the government shall reimburse approved expenses in accordance with GSA Terms and Conditions. The following is the link to federal per diem rates:

http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-radio&utm_term=portal/category/21287&utm_campaign=shortcuts

2. SERVICES SUMMARY

2.1. Purpose. The Services Summary lists performance objectives for the required services the government will survey. The absence of any contract requirement from the Services Summary shall not detract from its enforceability nor limit the rights or remedies of the government under any other provision of the contract, including the clauses entitled “Inspection of Services,” “Inspection,” or “Default”.

2.2. Components. The Services Summary states the performance objective (required service), and threshold (performance standard) in either a qualitative or quantitative fashion for each critical success factor.

2.3. Right to Survey. The Government reserves the right to survey all services and requirements called for in this SOW in accordance with FAR Part 46 to determine whether the contractor is meeting performance objectives and goals.

http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-

Services Summary

Performance Objective Performance Standard

Solicit, evaluate, analyze, advise, close out, and assist with awards and terminations on contracts for the procurement of supplies and services.

No more than three (3) instances per quarter of failure to provide proper contract administration and to prepare contractual documents.

Research, analyzes, and reviews all applicable policies, guidance, and regulations to support the customer and the government contracting officer’s decision-making.

No more than three (3) instances per quarter of failure to follow regulations and provide appropriate support.

Advise acquisition team, as needed, on price, cost, and/or financial-related matters throughout the development of sourcing strategies and the solicitation, evaluation, negotiation, and award of contractual actions.

No more than two (2) instances per quarter of failure to provide completed documentation pertaining to the solicitation, evaluation, negotiation, and award of contractual actions.

Utilize VA internal and external financial and business management systems to include, but not limited to FMS, IPPS, IFCAP/VISTA.

No more than three (3) instances per quarter of failure to properly utilize VA internal and external financial and business management systems.

Communication with COR/end user, contracting, logistics, accounting, and vendor regarding invoices, accuracy of accruals, outstanding balances, and purchase order status to expedite close out resolution

No more than three (3) instances per quarter of failure to follow regulations and provide appropriate support.

Verification of purchase orders, tax identification, invoice submission, and payment inquires.

No more than two (2) instances per quarter of failure to provide completed documentation.

Personnel Maintenance No more than two (2) instances per quarter of failure to fill vacancies with qualified personnel within 14 days of vacancy notification.

Effectively replaces/substitutes personnel Coordinate 100% of the time for replacement and substitution of personnel.

Develop and submit all required deliverables Performance is acceptable when:

100% of deliverable requirements are met and received on time.

3. GOVERNMENT FURNISHED PROPERTY & SERVICES

The contractor personnel will work in a government facility. The government will furnish, or make available, the required working space, equipment, and network access required to perform services under this contract.

4. GENERAL INFORMATION

4.1. Monthly Performance Activity/Status Report: The report shall be provided to the Contracting Officer Representative (COR) during the first week of each month. The contractor shall provide monthly status reports of employees as an attachment to all invoices in order to be considered for payment. The monthly report shall include, at a minimum, contractor employee name and actions completed, completed closeouts, and the contract numbers for each completed action. The number of hours worked shall be listed for each employee.

4.2. Deliverables

Deliverable Due Date; Frequency

Non-Disclosure Agreement Must be received and properly executed before the placement of contractor personnel.

Monthly Performance Activity/ Status Report Submitted during the first week of each month.

Quality Control Plan Updated throughout the contract as changes occur.

4.3 Tour of Duty: Monday – Friday 7:00 am – 3:30 pm, alternative schedule may be authorized.

4.4 Tradeoffs are allowed, with prior authorization from the CO, to work a longer day in exchange for a shorter day within the 2-week pay period.

4.5 Telework is not authorized

4.6 Duty Station: 4811 Airport Plaza Drive Suite 600 Long Beach, CA 90815

5. QUALITY

5.1. Quality Control. The contractor shall develop, implement, and maintain a comprehensive inspection system that assures compliance with all requirements of this contract in accordance with FAR Part 46, Quality Assurance. The QC records of inspections shall identify procedures to prevent and ensure nonrecurrence of defective services as well as the corrective action taken to address and mitigate defective services. The contractor shall submit, to the contracting officer, an updated plan as changes occur.

5.2. Quality Control Plan (QCP). The contractor shall develop a QCP that demonstrates how the contractor shall maintain an inspection system acceptable to the government, covering the services to be provided under this contract. At a minimum, the contractor shall develop quality control procedures that address the areas identified in the Services Delivery Summary in Section 2 of this

SOW.

6. SECURITY

6.1. Pass and Identification Items. Ensure the pass and identification items required for contract performance are obtained for employees prior to the performance start date. NCO employees will assist contractor personnel in obtaining the PIV cards and VA systems access.

6.2. Retrieving Identification Media. The contractor shall retrieve and return all identification media, including the PIV Cards, when the contract expires or from employees who depart for any reason before the expiration of the contract (e.g. terminated for cause, retirement, etc.).

6.3. Disclosure of Information. The contractor will not have access to classified information. All information is considered sensitive and will not be disclosed outside the workplace. This includes contractor proprietary data, passwords, “For Official Use Only” documents, and “Source Selection Information” documents.

6.4. National Agency Check. The contractor will be required to submit information for each employee in advance of employment for a National Agency Check in the Joint Personnel Adjudication System (JPAS). This is required in advance to provide contract employees access to the government network and systems. All contractor employees are required to complete Information Assurance training on an annual basis. All contractors shall provide a signed Non-Disclosure Agreement to the contracting officer.

7. TRAINING REQUIREMENTS

7.1. Contractor employees are required to complete annual Information Security Awareness training.

The estimated time to complete all modules is approximately one and a half hours.

8. FEDERAL HOLIDAYS AND PAY

The following federal holidays are observed under this contract:

New Year's Day 1 January Martin Luther King's Birthday Third Monday in January

President's Day Third Monday in February Memorial Day Last Monday in May

Independence Day 4 July Labor Day First Monday in September

Columbus Day Second Monday in October Veteran's Day 11 November

Thanksgiving Day Fourth Thursday in November Christmas Day 25 December

8.1. Overtime/Holiday Time. Overtime is defined as any time worked in excess of 80 hours over a two-week period. Holiday Time is defined as any time worked on a federal holiday as addressed above.

Contractors may only work overtime or holiday time to the extent it is specifically authorized in advance, in writing, by the contracting officer. No additional hours of overtime may be worked without express written authorization for each hour worked. Labor rates for overtime hours will not change from the standard labor rates applied to the contract for regular hours worked.

8.2. The contractor shall only bill and invoice for actual hours worked by the contractor employee.

Payment will not be made for hours that are not worked by the contractor employee.

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 36C262 Department of Veterans Affairs Network Contracting Office 22 4811 Airport Plaza Drive Suite 600 Long Beach CA 90815

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

[X] 52.232-33, Payment by Electronic Funds Transfer—System For Award Management, or [] 52.232-36, Payment by Third Party

3. INVOICES: Invoices shall be submitted in arrears:

a. Quarterly []

b. Semi-Annually []

c. Other [X] Actual hours worked

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.

Contractor shall bill via Tungsten Network, https://www.tungsten-network.com/us/en/.

ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

AMENDMENT NO DATE

https://www.tungsten-network.com/us/en/

B.2 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 onsite 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 2 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 5 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 device purchase includes a spare drive which must be installed in place of the original drive at time of turn-in; or

(3) VA must reimburse the company for media at a reasonable open market replacement cost at time of purchase.

(4) Due to the highly specialized and sometimes proprietary hardware and software associated with medical equipment/systems, if it is not possible for the VA to retain the hard drive, then;

(a) The equipment vendor must have an existing BAA if the device being traded in has sensitive information stored on it and hard drive(s) from the system are being returned physically intact; and

(b) Any fixed hard drive on the device must be non-destructively sanitized to the greatest extent possible without negatively impacting system operation. Selective clearing down to patient data folder level is recommended using VA approved and validated overwriting technologies/methods/tools. Applicable media sanitization specifications need to be pre-approved and described in the purchase order or contract.

(c) A statement needs to be signed by the Director (System Owner) that states that the drive could not be removed and that (a) and (b) controls above are in place and completed. The ISO needs to maintain the documentation.

6. SECURITY INCIDENT INVESTIGATION

a. The term "security incident" means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures.

The contractor/ subcontractor shall immediately notify the COR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/ subcontractor has access.

b. To the extent known by the contractor/subcontractor, the contractor/ subcontractor's notice to VA shall identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the VA information or assets were placed at risk or compromised), and any other information that the contractor/subcontractor considers relevant.

c.