Attachment 1 - PWS - Courier Services.docx

PERFORMANCE WORK STATEMENT (PWS)

Courier Services

Sheridan VA Health Care System requires a qualified contractor to provide courier services, transporting medical facility items between Sheridan Veterans Administration (VA) Medical Center and VA Community Based Outpatient Clinics (CBOCs) in Wyoming and back to the Sheridan VA Medical Center. Services must be accomplished in accordance with the PWS, in a cost-effective and efficient manner for the VA and in direct support of the VA Mission to its Veterans. Services are required for the period of performance outlined in the Price/Cost Schedule and at the locations outlined in this PWS.

This is a non-personal services contract. The Contractor, its employees, agents and subcontractors shall not be considered government employees for any purpose. Contractor shall furnish all labor, supplies, materials, parts, equipment, tools, transportation, insurances, licenses, certifications and supervision necessary to provide services in accordance with this Performance Work Statement (PWS). The Contractor is responsible for all charges, fees, applications and procurement of all permits, licenses, registrations and certificates, pursuant to lawful application of the provision of services. For a contract of this size, scope and level of complexity, the successful Contractor must perform in a professional manner as recognized by commercial industry standards as good to excellent.

1. GENERAL

The contractor agrees to provide regularly scheduled pickups of a variety of items, including but not limited to; packaged lab specimens, medical equipment/supplies, mail, soiled/clean linen, general supplies, etc. between the VA locations listed herein and the parent facility at Sheridan, Wyoming (WY). In addition to the scheduled weekday pickup/delivery, there may be other non-scheduled delivery request(s). Occasionally a one-time delivery may be requested to a location other than a VA facility. Deliveries will fit easily into a small van or utility vehicle. Contractor shall receive items from the Sheridan VA and the associated clinics, hereafter referred to as Community Based Outreach Clinics (COBCs), sign a property receipt (or logbook) and transport and deliver the same in like condition to the destination marked on each item as designated by the VA and CBOCs. VA reserves the right to use VA and Federal contract providers for transport on an as-needed basis.

2. ITEMS TO BE TRANSPORTED

Pickup and delivery of items* including but not limited to:

a. Specimen containers, either an Igloo style ice-chest Styrofoam container, or pressure tested outer shipping vessels conforming to IATA regulations. They will be marked “DIAGNOSTIC SPECIMENS” and tagged for identification.

b. Office or medical supplies, pharmaceuticals and/or equipment weighing less than 35-pounds per box

c. Paper documents including medical records in a sealed confidential envelope secured in a locked mail bag

d. Soiled laundry items

e. Clean laundry items

f. Biological specimens, i.e. body fluids (blood, urine and stool), will be properly packaged by Government or contracted laboratory personnel for transportation and will be placed in the container.

g. Items boxed in large plastic reusable containers (the containers shall be returned to VA). Note: Some items may be of odd dimensions, for example, crutches, canes, florescent light bulbs, and paper supplies, etc.

Contractor shall contact Contracting Officer Representative (COR) or designee for clarification and prioritization if unable to take all items located in courier room. COR is responsible for providing contact numbers and designee names to Contractor.

All items must be transported in accordance with all State of Wyoming and Federal regulations. Including any specified regulations for dangerous goods or bio-hazardous materials. All efforts shall be made to assure that all items are delivered without spoilage/damage from temperature conditions, rough handling and/or negligence.

*No items shall weigh more than 35 lbs., unless specifically discussed and accepted by the Contractor in advance.

3. SPECIFICATIONS

· The Government is not obligated for any work under this agreement that is not ordered by the COR.

· The COR has the authority to cancel ordered work when the contractor is notified of cancellation in writing within 96 hours of scheduled service.

· The Contractor shall provide courier services as needed within the normal definitions of the Contractor's license and normal delivery territory. These requests shall be called into the Contractor and the Contractor shall quote the normal price minus whatever discount percentage is quoted on the price proposal.

· Sheridan VAHCS will provide a list of staff authorized to request services under this contract. If there is doubt about the authority of the person placing the call, the Contractor should accept the call, complete the pickup/delivery, and report the event to the Contracting Officer. Only the Contracting Officer can make changes to the terms and conditions described herein. All such changes shall be completed in writing.

· Oversized and overweight items are rarely transported. The Contractor shall clearly define the size and weight limits prior to award so that both VA and the Contractor can determine when an extra service charge may be added. VA should manage all shipments and plan for shipments to be scheduled to reduce the potential for extra service charges for size and weight. The Contractor shall also provide courier services as needed within the normal definitions of the Contractor’s license and normal delivery territory. These requests shall be called into the Contractor and the Contractor shall quote the normal price minus whatever discount percentage is quoted on the price proposal. For example, if VA had a one-time requirement for a delivery to Billings, MT and the Contractor can provide the service, then the Contractor shall quote the price minus the discount offered.

a. ROUTINE CBOC services: Actual delivery/pickup schedules will be established once the contract is awarded.

1) Delivery/Pickups/Shipments shall be scheduled weekdays Monday through Thursday

2) No pickup on Fridays or Federal Holidays

3) The COR will notify the courier at least 96 hours prior to a change in any regular pickup schedule

4) Additional pickups and one-time pickups will be requested at least 24 hours in advance by telephone with verification via fax or email

5) Estimated delivery/pickup times for planning purposes:

Addresses and hours of operation for each clinic are noted above, updates will be made as necessary throughout the term of the contract. If a clinic relocates, the address will be provided, no modification of the contract will be needed.

b. NON-ROUTINE Shipments to Denver: The COR will coordinate with the Contractor each time these courier services are needed for same day pickup/delivery to Denver.

1) Pick up from Sheridan VAHCS, 1898 Fort Road, Lab [Building 71, room 217] Sheridan, WY 82801 307-675-3131. Time of pick up to be determined/negotiated

2) Deliver same day to Rocky Mountain Regional VAMC, 1700 N Wheeling St, Aurora, CO 80045. Pathology & Laboratory are in Bldg. D (DAT), on 2nd floor. Room #D2-234, phone #720-723-4567.

3) Pickups will be requested at least 24 hours in advance by telephone or email

4) Pickups anticipated 50-80 times in a 12-month period

(i) Aurora-Denver Non-Routine Pickups:

PICKUP TIME

LANDLINE

307-675-7015

SAME DAY DELIVERY TO:

Bldg. D (DAT), on 2nd floor. Room #02-234 Aurora, CO 80045.

Deliver same day- Time of pick up to be determined/negotiated for each shipment

720-723-4567

c. NON-ROUTINE (one-time) SHIPMENTS – Pickup And Delivery

1) Non-routine Pickups will be requested at least 24-hours in advance by telephone or email

2) Non-routine Pickups anticipated 50-80 times in a 12-month period

3) The COR will coordinate with the Contractor if additional (non-routine) courier services are needed.

4. ENVIRONMENTAL CONTROLS

The Contractor shall maintain a temperature-controlled environment between 68 to 78 degrees Fahrenheit and a relative humidity level between 65 to 72 percent in vehicle or storage areas. Contractor must maintain proper temperature in vehicles to preserve medical supplies, pharmaceuticals, specimens and other items potentially damaged by extreme temperatures.

Contractor personnel drivers shall not leave vehicles in extreme heat or cold while specimens, sterile supplies, and pharmaceuticals are being transported. The Contractor shall be responsible for failures by the Contractor to ensure established environmental controls are maintained, of which results in damage or deterioration of laboratory specimens, supplies, or pharmaceuticals.

a. Insulated transport containers will be provided by Sheridan VAHCS for pickup/delivery of specimens.

b. Sheridan VAHCS shall furnish all types of puncture-proof containers (coolers) that are labeled diagnostic specimens for test specimens.

c. All contractor vehicles used for courier services shall have heating and air conditioning.

5. CONTRACTOR’S DUTIES AND RESPONSIBILITIES

a. The contractor's responsibility for the safekeeping of shipments shall commence when the contractor has received the same and a receipt acknowledged and shall terminate when delivery is completed.

b. A record of all deliveries and pickups will be maintained by the contractor through log sheets provided at each location.

c. Contractor will provide COR with a listing of names and identification of authorized messengers.

d. The contractor will be liable for the loss of shipments delivered into its possession if they should fail to deliver shipments in the same condition as when delivered to and receipted for by the contactor. Acknowledgement by VA staff at the delivery location shall be conclusive evidence that supplement was received safely and securely.

e. Liability Insurance: Contractor shall be a courier company with a Wyoming state license and carry a minimum of $1,000,000 liability insurance.

f. All couriers transporting specimens under this contract must have means of communication while traveling. Any delays in any delivery are to be reported directly to the COR.

g. All efforts shall be taken so that no items shall be kept in the possession of the Contractor overnight.

i. If it is determined that items will need to be in the contractor’s possession overnight, the Contractor shall provide to the Contracting Officer and COR the reasons for keeping the items, exact location where items will be stored and a description of the location of storage.

h. All items will be picked up from and delivered to the courier room located at the Sheridan VAHCS. The location of this room is subject to change for the benefit of the Sheridan VAHCS.

i. The Contractor shall provide a fixed rate for all costs of the courier service, which costs shall include all costs to include but not limited to: the vehicle, driver, mileage, time, weight, and other reasonable costs associated with courier services needed to perform the services described in this contract.

j. Each vehicle used in the performance of this contract shall be adequately stocked with at least one up-to-date complete “SPILL KIT” for a bio-hazard cleanup in case of leakage or accidental discharge from controlled containers.

k. The Contractor shall ensure the confidentiality of all patient information and records being transported and will be held liable in the event of a breach of confidentiality.

l. The Contractor shall comply with the provisions of the Federal Privacy Act of 1974 (Public Law 93-579).

m. The Contractor shall maintain a current/valid Motor Carrier Permit, hazardous material license number, certificate of training of couriers, State of Wyoming driver’s license(s) for each courier, vehicle insurance, and Wyoming vehicle registration.

n. The Service Contract Act does apply to this contract. The current Service Contract Act Wage Determination for this area is attached. Employees performing under this contract must be paid at least the pay and fringe benefits described therein.

o. Training: Contractor’s couriers transporting lab specimens must be trained in “Universal Precautions” in the handling of biohazard materials (specimens). Training must include using clinical procedures in case of biohazard spills and accidents.

i. Proof of training shall be provided after award of the contract and updated annually thereafter with proof of training provided to COR at the exercise of any option year.

p. Drivers: All drivers must maintain a valid driver’s license for the type of vehicle operated as required by the State of Wyoming. A record of each driver as to character and physical capabilities of performing the duties as a courier must be maintained by the contractor and made available to the Contracting Officer and COR for inspection upon request and shall be updated as personnel changes.

q. All contractor employees/personnel ie. contract manager, drivers and alternates, must be able to read, write, speak and understand English. The name of this person, and an alternate, or alternates, who shall act for the contractor when the manager is absent, shall be designated in writing to the Contracting Officer and COR. Contractor shall provide an updated listing as changes in personnel occur.

r. The contractor’s personnel shall present a neat appearance and be easily recognized as a contract employee. The contractors’ employee shall wear an identification tag that includes the company’s name/logo and employee name and photograph. Contractor’s vehicle shall have the company name/logo prominently displayed.

s. The Contractor shall direct all questions and problems regarding this contract, to the Contracting Officer. The Contracting Officer is the sole authority to amend the terms and conditions of this requirement. All contract changes will be issued via amendment and/or modifications in writing from the Contracting Officer to the Contractor.

t. The Contracting Officer and COR shall be notified at the earliest time available, but no later than the next business day of Contractor’s knowledge of any conditions which may adversely affect the Contractor’s ability to perform under the terms and conditions as stated in the specifications of this requirement. For example, union strikes, vehicle problems, licenses, or anything that might jeopardize the terms and conditions of this contract should be reported to the Contracting Officer.

u. Should specimens and/or transported items be lost, broken, or otherwise damaged, the Contractor shall submit a preliminary summary incident report to the COR within 24 hours of the incident. The Contractor shall provide a written incident report explaining the details of the incident; specifically, what caused the incident (who, what, where, when, and how) within seventy-two hours of the incident. Failure to provide the report with the specific time frame shall be reviewed by the Government to determine if the infraction warrants suspension and or termination of the contract.

v. The Contractor shall be required to maintain a record log of courier pickups and deliveries, indicating time and date of pickups, number and description of items from each location, along with signatures. This information will be duplicated on the Contractor’s invoice. If the Contractor utilizes an electronic/facsimile/automated system of courier tracking, the contractor shall demonstrate how the record log can be accessed by the government when needed. There may be an occasion where the exact time of delivery and name of the person receiving the item is imperative for an investigation into patient services. The Contractor shall provide any such information upon request by the Contracting Officer or COR.

6. HIPAA COMPLIANCE

The Contractor shall adhere to the provisions of Public Law 104-191, Health Insurance Portability and Accountability Act (HIPAA) of 1996 and the National Standards to Protect the Privacy and Security of Protected Health Information (PHI). In addition, contractor shall adhere to all VA security policies and applicable confidentiality statues such as 38 U.S.C. §5701 (VA Claims Confidentiality), 38 U.S.C. §5705 (Confidentiality of Healthcare Quality Assurance Review Records), 38 U.S.C. §7332 (Confidentiality of certain medical records), as well as 45 C.F.R. Parts 160, 162, and 164 (Health Insurance Portability and Accountability Act).

In accordance with HIPAA, the Contractor shall be required to enter into a Business Associate Agreement (BAA) with VA upon award. As required by HIPAA, HHS has promulgated rules governing the use and disclosure of protected health information by covered entities. The covered entity component of VA is the Veterans Health Administration (VHA).

7. BLOODBORNE PATHOGENS

The Contractor and the Contractor personnel shall comply with the effective VA Medical Center Policy (and Occupational Health requirements in accordance with OSHA Blood Borne Pathogens (BBP) Law and the OSHA Tuberculosis Compliance Directive, enforceable under OSHA’s General Duty Clause) governing healthcare workers infected with a blood borne pathogen. If the Contractor obtains information that a person providing services under this contract may be infected with a blood borne pathogen, the Contractor shall immediately advise the COR.

8. CONTINGENCY PLAN

The Contractor shall develop a contingency plan within five (5) business days after award to ensure uninterrupted daily scheduled courier services for VA. This plan shall be reviewed annually by the Contractor, the COR, and other designated VA lab personnel. The contingency plans shall address possible inclement weather conditions, emergency road closures, contractor vehicle breakdown/accidents and other potential unplanned delays to the delivery schedule. The plan shall provide prompt communication to the VA to include notification to all CBOCs, VA laboratory staff, and the COR of an unplanned event. The contingency plan shall provide adequate time for the VA to reschedule Veteran laboratory services. The Contractor shall immediately notify the COR or VA lab personnel via phone and email communications of emergent road closures authorized by the Wyoming, Colorado, and Montana DOT.

9. QUALITY CONTROL

The Contractor shall develop and maintain a quality control program that ensures courier services are performed in accordance with the PWS and specifications. The contractor shall develop and implement procedures to track, identify, prevent, remedy and ensure non re-occurrence of non-compliant services. The contractor shall immediately notify the COR upon receipt of a customer complaint so joint validation may be accomplished. The Contractor shall provide a method to accept and resolve customer complaints and notify the COR of the resolution. The Contractor is responsible for quality control and specification compliance.

10. SECURITY

Contractor shall transport all VA sensitive information in the possession of the courier in closed and secure containers.

11. CONTRACT ADMINISTRATION DATA

a. Upon contract award, the Contractor shall specify a qualified individual who shall serve as a single point of contact for all contract issues (POC). Contractor must provide the COR and Contracting Office with the POC contact details, to include name, title, address, cell phone, facsimile and email, as a minimum.

i. Contractor shall provide updated POC information to the VA two (2) business days prior to a change in the POC by the Contractor.

b. The contractor POC shall be easily accessible by phone and return COR calls within 24hours of a voice message left by the COR.

c. Federal Holidays:

The eleven (11) holidays observed by the Federal Government are:

New Year's Day Martin Luther King Day President's Day Memorial Day Juneteenth Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Day Christmas Day

Holidays that fall on Saturday are observed on the preceding Friday. Holidays that fall on Sunday are observed on the following Monday.

In addition to the days designated as holidays, the Government observes the following days:

• Any other day designated by Federal Statute

• Any other day designated by Executive Order

• Any other day designated by the President of the United States to be a Federal holiday

d. For confirmation of holidays observed by the VA and how they impact contracted service the Contractor must seek guidance from the COR and CO, followed by written confirmation.

12. CONTRACTOR CONDUCT:

The Contractor and any employees are subject to the same rule of conduct and standards as Government employees.

No alcoholic beverages or drugs are allowed on any VA property and the VA has implemented a smoke free environment policy at all VA locations. There may be authorized smoking areas outdoors depending on the clinic location.

Medical Center Directives and Policies: Each VA Medical Center has directives and policies that are updated from time to time. The COR can provide more detailed information to the contractor of these upon commencement of the contract and throughout the term of the contract, as needed. VA universal policies include parking, possession of weapons, cell phone use, and use of photography as well as smoking on VA property. Violations of such policies may result in individual fines and/or a citation answerable in the United States (Federal) District Court.

13. SAFETY AND COMPLIANCE:

The Contractor must perform services in accordance with:

a. All local, State of Wyoming and Federal Occupational Safety and Health guidelines and legislation, to include Occupational Safety and Health Administration (OSHA), the American National Standards Institute (ANSI) safety guidelines, and any VA Medical Center Directives.

b. All local, state and Federal Fire and Safety legislation and guidelines, to include VA Medical Center directives and legislation on Fire and Safety;

c. All other Conformance Standards identified in this PWS.

d. Contractor shall ensure that services, to include labor and equipment and subcontractors, used in the performance of this contract conform and comply with the latest Federal and state Department of Transportation regulations and laws.

14. REPORTS AND DELIVERABLES:

The Contractor shall comply with all reporting and deliverable requirements. Contractor shall assure the accuracy and completeness of all reports and other documents as well as the timely submission of each. Contractor shall comply with requirements regarding the appropriate reporting formats, instructions, submission timetables, and technical assistance as required. All reports and deliverables are to be sent by electronic mail unless otherwise specified by the CO or COR.

The following are brief descriptions of required documents that must be submitted by Contractor:

15. QUALITY ASSURANCE SURVEILLANCE PLAN

The government will evaluate the Contractor's performance using the Quality Assurance Surveillance Plan (QASP) which includes reviewing customer complaints, periodic on-site inspections, and may, at the Government's discretion, include inspection of each task to verify conformance and acceptance prior to payment.

16. PERFORMANCE STANDARDS

The Contractor will be evaluated using performance objectives and quality standards as listed in the QASP, and the following:

Basic Courier Services Timeliness

Conditions of transported items

Performance timely as requested for non-routine deliveries

a. SURVEILLANCE: The COR shall receive complaints from Sheridan VA personnel and pass them to the contractor for correction.

b. STANDARD: The standard is ‘two or less’ customer complaints per month in each area. The COR shall notify the Contracting Officer for appropriate action in accordance with FAR 52.212.4, Contract Terms and Conditions-Commercial Items or the appropriate Inspection of Services clause, if any of the above service areas exceed two customer complaints.

c. PROCEDURES. Any VA employee that observes unacceptable services, either incomplete or not performed, for any of the above performance objectives shall immediately contact the COR and the COR will complete appropriate documentation to record the complaint. The COR will consider the customer complaint valid upon receipt from the customer. The COR shall inform the customer of the approximate time the unacceptable performance will be corrected and advise the customer to contact the COR if not corrected. The Contractor shall be given two hours after verbal notification to address the unacceptable performance. If the Contractor disagrees with the complaint after investigation and challenges the validity of the complaint, the Contractor shall notify the COR. The COR will conduct and investigation to determine the validity of the complaint. If the COR determines the complaint as invalid, COR will document the written complaint of the findings and notify the customer. The COR will retain documentation for their files. If after investigation the COR determines the complaint as valid, the COR will inform the Contracting Officer.

17. INFORMATION SECURITY REQUIREMENTS

I. 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.

II. 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.

III. 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.

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.

b. 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.

c. 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.

d. 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.

e. 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.

f. 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.

g. 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.

h. 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.

18. 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. With respect to unsecured protected health information, the business associate is deemed to have discovered a data breach when the business associate knew or should have known of a breach of such information. Upon discovery, the business associate must notify the covered entity of the breach. Notifications need to be made in accordance with the executed business associate agreement.

d. In instances of theft or break-in or other criminal activity, the contractor/subcontractor must concurrently report the incident to the appropriate law enforcement entity (or entities) of jurisdiction, including the VA OIG and Security and Law Enforcement. The contractor, its employees, and its subcontractors and their employees shall cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violation(s) associated with any incident. The contractor/subcontractor shall cooperate with VA in any civil litigation to recover VA information, obtain monetary or other compensation from a third party for damages arising from any incident, or obtain injunctive relief against any third party arising from, or related to, the incident.

19. LIQUIDATED DAMAGES FOR DATA BREACH

a. Consistent with the requirements of 38 U.S.C. 5725, a contract may require access to sensitive personal information. If so, the contractor is liable to VA for liquidated damages in the event of a data breach or privacy incident involving any SPI the contractor/subcontractor processes or maintains under this contract.

b. The contractor/subcontractor shall provide notice to VA of a "security incident" as set forth in the Security Incident Investigation section above. Upon such notification, VA must secure from a non-Department entity or the VA Office of Inspector General an independent risk analysis of the data breach to determine the level of risk associated with the data breach for the potential misuse of any sensitive personal information involved in the data breach. The term 'data breach' means the loss, theft, or other unauthorized access, or any access other than that incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. Contractor shall fully cooperate with the entity performing the risk analysis. Failure to cooperate may be deemed a material breach and grounds for contract termination.

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

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

ii. Description of the event, including:

1. date of occurrence;

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

iii. Number of individuals affected or potentially affected;

iv. Names of individuals or groups affected or potentially affected;

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

vi. Amount of time the data has been out of VA control;

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

viii. Known misuses of data containing sensitive personal information, if any;

ix. Assessment of the potential harm to the affected individuals;

x. Data breach analysis as outlined in 6500.2 Handbook, Management of Security and Privacy Incidents, as appropriate; and

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

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

i. Notification;

ii. One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports;

iii. Data breach analysis;

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

v. One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and

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

20. TRAINING

a. The Contractor shall provide and maintain training for its employees in appropriate safety and packaging procedures suitable to specimen type and distances transported. This should include “Universal Precautions” in the handling of biohazard materials (specimens), issues such as adherence to regulations for transport of biohazards, use of rigid containers where appropriate, temperature control, using clinical procedures in case of biohazard spills and accidents, notification procedures in case of accident or spills, etc.

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

i. Sign and acknowledge (either manually or electronically) understanding of and responsibilities for compliance with the Contractor Rules of Behavior, Appendix E relating to access to VA information and information systems;

ii. Successfully complete the VA Cyber Security Awareness and Rules of Behavior training and annually complete required security training;

iii. Successfully complete the appropriate VA privacy training and annually complete required privacy training; and

iv. Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access.

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

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