ATTACHMENT B- PERFORMANCE WORK STATEMENT.docx

ATTACHMENT B: PERFORMANCE WORK STATEMENT

B.3 PERFORMANCE WORK STATEMENT (PWS)

Institute of Learning, Education and Development (ILEAD) Developmental Assessment Center (DAC)

1. INTRODUCTION

The Institute of Learning, Education and Development (ILEAD) is responsible for leadership development, talent management, and succession planning for over 350,000 employees in the Veterans Health Administration (VHA). ILEAD identifies, develops, and strategically manages healthcare leadership talent across VHA, with the goal of growing an engaged workforce that delivers exceptional service to our Nation’s Veterans.

To achieve its goals, ILEAD works to:

1. Expand the capacity of VHA leadership programs to attract and retain talent

1. Broaden leadership development opportunities for all employees

1. Enhance the leadership skills of employees transitioning into supervisory and senior leadership positions

1. Implement talent management systems and data-driven succession planning practices to meet critical workforce needs

ILEAD is implementing a Developmental Assessment Center (DAC) to support its mission of developing VHA leaders. ILEAD will leverage the DAC to provide developmental feedback and recommendations for individual senior-level leader development. For the purpose of this service contract, VHA Senior/Executive Leaders are those who currently occupy, or aspire to in the next two (2) years, C-suite or Federal GS-15/Senior Executive Service: (SES) leadership levels. Additionally, ILEAD will utilize DAC performance data to assess talent pool trends and developmental needs.

2. SCOPE

The work for this project is directed at four levels of Senior/Executive Leaders (C-Suite) within the Veterans Health Administration (VHA): experienced Executive Leaders (e.g., CEO, 3+ years in job), new Executive Leaders (e.g., CEO, 0-2 years in job), aspiring Executive Leaders (next two years), and aspiring Senior Leaders (next two years). The finished product for this work involves design, pilot, and delivery in the Base Year of a curriculum for a Developmental Assessment Center (DAC) experience targeted at these four tiers of leadership, and a follow-up full-implementation of the DAC curriculum in Option Year 1 with at-minimum 300 leaders from across these four tiers.

A successful Base Year outcome includes the development of a data-informed and -validated DAC curriculum encompassing four tiers of leadership development that is piloted and revised with 20 VHA leaders, and with all curriculum materials delivered in a professional, electronic, editable layout.

A successful Option Year 1 outcome includes the vendor’s full-implementation of the Base Year DAC curriculum with, at minimum, 300 VHA leaders across the four tiers of leadership to include delivery of all collected DAC rating scores/data, per individual participant, in an electronic, spreadsheet format. In addition, to deliver to any curriculum materials modifications, per lessons learned from full year implementation, in a professional, electronic, editable layout.

3. OBJECTIVES

The objective of this requirement includes, but is not limited to:

1.1 Validate assessment strategies and curriculum tailored to four levels of VHA leadership.

1.2 Identify, through measurement, high and low competency ranges faced by VHA leaders in the Developmental Assessment Center experience.

1.3 Produce a methodology for determining an achievable Developmental Assessment Center experience that can be replicated with other VHA leadership groups, including use of participant and faculty guide materials.

4. TASKS

4.1 TASK 1: PROJECT MANAGEMENT

The Contractor shall conduct a Kick-Off Meeting (Deliverable 1) after 10 calendars days from award with the Government POCs and appropriate Contractor Key Personnel and staff. The typical meeting is held virtually via the Microsoft TEAMS application. Contractor to provide Kick-Off Meeting Minutes (Deliverable 2) after meeting.

The Contractor shall establish a single management focal point with the VHA Talent Management Personnel Psychologist or VHA Talent Management Associate Director who will serve as the Program Manager (PM), to accomplish the administrative, managerial, and financial aspects of this contract. This individual shall be identified as the focal point for all programmatic issues.

The Government and Contractor shall review the Project Management Plan (Deliverable 3), which shall contain a cross-walk of the DAC Curriculum, during the contract kick-off meeting potential DAC exercises, competencies, and leadership levels, as noted in 3.2 Task DAC Design. The outline will be part of the Project Management Plan (PMP) discussion. Contractor shall review and update the DAC outline based on Government feedback during kick-off meeting.

The Contractor shall develop a detailed Project Management Plan (PMP) and briefing, which may be held in conjunction with a formal Government post-award meeting. The PMP shall present the Contractor's plan for completing the contract and shall be responsive to this PWS and describe, in further detail, the approach to be used for each aspect of the contract as defined in the Contractor’s technical proposal. The PMP shall include the Contractors project plan to complete the DAC requirement. At a minimum, the PMP shall include the Contractor’s plan for managing the project, risk, plan to prevent overall system downtime, quality, scope, change management, detailed schedule, and Contractor staff/key personnel.

The Contractor shall record and distribute minutes of the contract post-award meeting.

DELIVERABLES:

1. Kick-Off Meeting

2. Kick-off meeting minutes

3. Project Management Plan (PMP) and updates.

4.2 TASK 2: DEVELOPMENTAL ASSESSMENT CENTER (DAC) CURRICULUM

The Contractor shall provide a DAC Curriculum (Deliverable 4) which assesses the readiness of Federal Senior/Executive Leaders or equivalents to enter progressively higher levels of leadership in the Federal Government. DAC measures and tests both the strengths and areas of improvement aligned to progressively more senior-level performance. The DAC curriculum, according to the Government standards noted below, provides an electronic, editable format of all curriculum materials, including exercise scripts, facilitator guide, debrief guide, rating sheets, and evaluations. The DAC curriculum shall address four tiers of VHA leadership using specific evidence-based competencies and multiple exercises as shown below.

1. VHA Leadership Tiers The audience is VHA Senior/Executive Leaders with a mix of clinical and non-clinical backgrounds:

a) Experienced Executive Leaders (or Current SES) are C-Suite CEO-equivalents with three or more years in this Federal role, who lead VHA local medical health care systems, regional offices, or national program offices.

b) New Executive Leaders (or New SES) are C-Suite CEO-equivalents with 0-2 years in this Federal role, who lead VHA local medical health care systems, regional offices, or national program offices.

c) Aspiring Executive Leaders (or Aspiring SES) are C-Suite Senior Leaders (GS-15 or equivalent), who currently lead multiple departments or teams within a VHA local medical health care system, regional office, or national program office, and aspire to an Executive Leader role in the next two years.

d) Aspiring Senior Leaders (or Aspiring Quad) are mid-level managers (GS-13-14 or equivalent), who currently lead a department or team within a VHA local medical health care system, regional office, or national program office, and aspire to a Senior Leader role in the next two years (see Table 1).

2. DAC Competencies For the leadership levels of Experienced Executive (or Current SES), Aspiring Executive (or Aspiring SES), and Aspiring Senior Leader (or Aspiring Quad), these six (6) competencies, or equivalents, per the Arthur et al. (2003) assessment center review[footnoteRef:1] shall be used to shape the DAC curriculum: communication, consideration and awareness of others, drive, influencing others, organizing, and planning, and problem-solving. For the New Executive Leader (New SES) level, the DAC competencies shall be the Hogan Development Survey (HDS) derailer styles: moving away from (withdrawal), moving towards (compliance), and moving against (aggression) stresses (see Table 1). [1: Arthur Jr, W., Day, E. A., McNelly, T. L., & Edens, P. S. (2003). A meta‐analysis of the criterion‐related validity of assessment center dimensions. Personnel Psychology, 56(1), 125-153.]

3. DAC Experiences The DAC curriculum shall use assessment tools and simulations to measure, test, and rate the aforementioned DAC competencies among participants. Each competency shall be assessed by no less than two DAC experiences (tools, simulations) (see Table 1).

a) Assessment Tools: The Government (Talent Management) will collect and share Assessment Tool data/reports with the Contractor for use in the Behavioral Interview and/or Individual Debrief/Group Consult sessions. Tools to be used include the Veterans Affairs 360-Assessment and the Hogan Suite (HPI, MVPI, HDS).[footnoteRef:2] The Contractor shall determine which competencies it will measure using these tools. [2: Hogan Suite Tools: HPI = Hogan Personality Inventory. MVPI = Motives, Values, Preferences Inventory. HDS = Hogan Development Survey.]

Simulation Exercises: Simulation Exercises are the primary assessment experience in this curriculum to gauge VHA participants’ behavioral- and competency-informed outcomes. Simulation Exercises will include a combination of Individual and/or Group hosted scenarios. Scenarios shall be tailored to the intended leadership level, and may utilize a healthcare or non-healthcare setting, but the scenarios shall not require any specific industry or clinical knowledge. Simulation Exercises should incorporate assessment over longer periods of time, when applicable (e.g., partial days), to minimize participant fatigue from full, consecutive-day testing. Curriculum deliverables will include full scripts and facilitator guide to run each exercise.

It is expected that the quantity and complexity of Simulation Exercises will vary by leadership level.

i. Experienced Executive Leaders (or Current SES) shall have group-based exercises using 2-3 facilitated case studies testing the Arthur et al. (2003) competencies. Emphasis on executive-level crisis or high-stress situations related to high-visibility healthcare issues.

ii. New Executive Leaders (or New SES) shall have individual-level simulation exercises with at least one exercise per Hogan derailer style competency.

iii. Aspiring Executive Leaders (or Aspiring SES) shall have 4-5 individual-level simulation exercises testing the Arthur et al. (2003) competencies.

iv. Aspiring Senior Leaders (or Aspiring Quad) shall have 4-5 simulation exercises using individual- and group-level approaches testing the Arthur et al. (2003) competencies.

The assessment center experiences shall be conducted either virtually via Contractor-supported videoconferencing technology (e.g., Microsoft Teams, Zoom, Adobe Connect, or WebEx), in-person at a Contractor facility, or a combination of both formats. If the Contractor uses a virtual assessment center format, the total assessment center exercises for each VHA participant may occur over the span of multiple days (not to exceed a window of 20 consecutive business days). If the Contractor uses an in-person format at the Contractor facility, the total in-person assessment center activities for each VHA participant shall not exceed three consecutive calendar days. If the Contractor uses a blended format (virtual and in-person), the total in-person assessment center activities for each VHA participant shall not exceed three consecutive calendar days and the total virtual assessment center exercises for each VHA participant shall not exceed a window of 15 consecutive business days.

Simulation Exercise Evaluation Tool: Each Simulation Exercise will require a validated evaluation tool to measure the talent’s competencies associated with that experience. Competency assessment will be conducted by, at minimum, two Contractor-identified DAC Assessors. DAC Assessors will use analytical reconciliation to address any inconsistent competency assessment data. Curriculum deliverables will include full rating/scoring sheets and evaluation materials to run each exercise.

4. Supplemental DAC Curriculum Needs Per industry best practice, the DAC curriculum shall also include these elements (see Table 1):

a) Individual Behavioral Interview: An Individual Behavioral Interview shall be provided before the DAC Simulation Exercises to two of the leadership groups: New Executive Leaders (New SES) and Aspiring Executives (or Aspiring SES). The purpose of the interview is to understand the talent’s starting point against the to-be assessed competencies using past work/leadership experiences and self-identified strengths and opportunities for development. This insight will also shape the final Individual Debrief session. Curriculum deliverables will include a facilitator guide to guide the interview.

b) Individual Debrief or Group Consult: Individual Debrief or Group Consult sessions are provided to the VHA participant(s) after completing the DAC Simulation Exercises to give talent feedback on the assessed competencies. These sessions shall be delivered via videoconference or, where applicable, in-person (e.g., Experienced Executive Leader/Current SES group case study at the VA Senior Leader Conference). These sessions shall incorporate insights from the Assessment Tool Data report (individual and/or group), DAC Assessor observations, and Simulation Exercise rating scores. The learning objective is to deliver the individual/group any developmental suggestions to support future growth and development in alignment with their leadership competency levels. Curriculum deliverables will include a facilitator guide to inform the individual and group debriefs. Individual Debrief or Group Consult sessions are specific to each leadership level:

i. Experienced Executive Leaders (or Current SES) = group debrief

ii. New Executive Leaders (or New SES) = individual debrief

iii. Aspiring Executive Leaders (or Aspiring SES) = individual debrief

iv. Aspiring Senior Leaders (or Aspiring Quad) = group debrief

c) Feedback Report: Feedback Reports are formal documents indicating the talent’s performance on the assessed DAC competencies; noting areas of strengths, opportunities for development, and solutions or strategies for developmental change. Feedback reports shall be delivered in written electronic format. Curriculum deliverables will include an example debrief report. Feedback reports are specific to each leadership level:

i. Experienced Executive Leaders (or Current SES) = no feedback report

ii. New Executive Leaders (or New SES) = individual feedback report

iii. Aspiring Executive Leaders (or Aspiring SES) = individual feedback report

iv. Aspiring Senior Leaders (or Aspiring Quad) = group feedback report

The table below reflects a suggested outline of DAC Curriculum structure and components.

SES

DAC Experiences

1. Behavioral Interview

Group X Indiv.

X Indiv.

X Group + Indiv.

Group X Indiv.

X Indiv.

X Group

5. Feedback Report

DAC Competencies

1. Hogan Development Survey derailer styles: moving away from, moving towards, and moving against stresses

X

(all but Drive)

The Contractor shall also create a Matrix of DAC Curriculum (Deliverable 5) to break out leadership tiers and assessed competencies. Further, the Contractor shall develop DAC Curriculum Materials (Deliverable 6) to be in an editable format. DAC Curriculum Materials includes exercise scripts, facilitators guide, debrief guide, rating sheets and evaluations.

The Contractor shall provide Biweekly Reports (Deliverable 7) to provide updates of the pre-development phase of the curriculum design.

DELIVERABLES

4. DAC Curriculum

5. Matrix of DAC Curriculum

6. DAC Curriculum Materials

7. Bi-Weekly Reports

4.3 TASK 3: DEVELOPMENTAL ASSESSMENT CENTER (DAC) PILOT ADMINISTRATION

The DAC Curriculum shall be tested with a DAC Pilot Session (Deliverable 8) with 20 VHA participants to obtain feedback on the DAC design and materials. The 20 VHA participants shall consist of: Four (4) leaders for the New Executive Leaders, Eight (8) leaders for Aspiring Executive Leaders and Eight (8) leaders for the Aspiring Senior Leaders. The Government shall identify the VHA pilot participants, and the Contractor shall schedule and implement the pilot program.

Piloting will include implementation of the full DAC curriculum testing three leadership levels: New Executive Leaders (or New SES), Aspiring Executive Leaders (or Aspiring SES), and Aspiring Senior Leaders (or Aspiring Quad).

The DAC curriculum for the Experienced Executive Leaders (or Current SES) will be reviewed by a group of VHA leaders (no formal group session).

The Contractor shall provide Focus Group Feedback (Deliverable 9) to provide feedback and assessment of successes and shortcomings of the pilot session. As a part of the feedback, the contractor shall provide Pilot Participant Rating Scores for each of the session’s participants.

All collected DAC-pilot participant rating scores (Deliverable 10), evaluation forms, and feedback reports shall be delivered to the Government in electronic format. An After Action debrief shall commence between the Government and Contractor once the DAC pilot period concludes to determine any adjustments to the Base Year DAC Curriculum materials. The Contractor shall provide a Participant Evaluation and Feedback Form (Deliverable 11) to each participant at the end of the session, which shall be correlated and provided to the COR.

Upon completion of the Pilot Session, the Contractor shall prepare and provide an After-Action Report (Deliverable 12) that summarizes the DAC pilot experience. Throughout the pilot session time frame, the Contractor shall provide a Pilot Program Update Report (Deliverable 13) to update the COR as to status, issues, concerns, and successes.

DELIVERABLES:

8. DAC Pilot Session

9. Focus Group Feedback

10. Pilot Participant Rating Scores

11. Pilot Evaluation and Feedback Form

12. After-Action Review of pilot process/outcomes

13. Pilot Program Update Report (Bi-weekly)

4.4 TASK 4: DEVELOPMENTAL ASSESSMENT CENTER (DAC) FULL ADMINISTRATION

It is anticipated that, at a minimum, 300 VHA participants will participate in the DAC Curriculum program overall. Participants will be identified by the Government. The Contractor shall work with the COR to provide a DAC Program Schedule (Deliverable 14) for Implementation of the DAC Curriculum (Deliverable 15) for the slate of attendees estimated.

The Government estimates the 300 VHA participants to include:

a) 10-12 groups for the Experienced Executive Leaders (or Current SES) curriculum

b) 60 or more leaders for the New Executive Leaders (or New SES) curriculum

c) 50 or more leaders for the Aspiring Executive Leaders (or Aspiring SES) curriculum

d) 160 or more leaders for the Aspiring Senior Leaders (or Aspiring Quad) curriculum

The Contractor shall provide the Implementation of DAC Curriculum for Experienced Executive Leaders (or Current SES) during an in-person VA Senior Leader Conference. The Experienced Executive Leaders (or Current SES) DAC curriculum shall be implemented in-person during the VA Senior Leader Conference, which is a single-point, 3-day meeting. Additional information will be provided on this conference as it is made available. See Section 8 Travel for additional details.

A Final DAC Program Debrief (Deliverable 16) shall be held as an after-action with Government and Contractor to review the full administrative outcome and findings to determine Recommendations for Adjustments (Deliverable 17) to the DAC Curriculum materials. Over the course of implementation, the Contractor shall provide Bi-weekly Implementation Reports (Deliverable 18) to provide any material or important updates on status.

DELIVERABLES:

14. DAC Program Schedule

15. Implementation of DAC Curriculum for Senior Leaders

16. Final DAC Program Debrief

17. Recommendations for Adjustments

18. Bi-weekly Implementation Reports

5. DELIVERY SCHEDULE

The table below reflects deliverables for tasking as described within the PWS:

(B: base, O: option)

Option Period: 1

Option Period: 1

Option Period: 1

Option Period: 1

Bi-weekly (~20)

Ongoing

~120 days after award

13. Pilot Program Update Report (Bi-weekly) (report will begin once Pilot has started) Base Period:

Bi-weekly (~6)

Will begin on date agreed upon by COR and KTR

6. PERIOD OF PERFORMANCE

Base: TBD (12-months from Effective Date of Award- Anticipated September 2023) Option Year One: TBD (12-months from Effective Date of Option Period Exercise)

7. TYPE OF CONTRACT

The anticipated award for a Firm Fixed Price (FFP) contract.

8. PLACE OF PERFORMANCE

Contractor’s facility. This work is anticipated to be performed primarily at Contractor facilities (virtually). Regularly scheduled meetings using video technology and platform such as Microsoft Teams to be conducted for information sharing and feedback. If any portion of the training is required to be conducted in a face-to-face manner, said training site shall be provided by contractor.

9. TRAVEL

Travel and per diem shall be reimbursed in accordance with VA and Federal Travel Regulations (FTR). Each contractor invoice must include copies of all receipts that support the travel costs claimed in the invoice. The contractor is only entitled to actual cost spent while on travel that falls within the perimeters as set forth within the FTR, to include food. Travel must be pre-approved by the COR. Travel must be priced separately in the price schedule. Local travel within a 50-mile radius from the contractor’s facility is considered the cost of doing business and will not be reimbursed. This includes travel, subsistence, and associated labor charges for travel time. Travel performed for personal convenience and daily travel to and from work at the contractor’s facility will not be reimbursed. Travel, subsistence, and associated labor charges for travel time for travel beyond a 50-mile radius of the contractor’s facility are authorized on a case-by-case basis and must be pre-approved by the COR.

10. MATERIAL OTHER DIRECT COSTS (ODCs) No ODCs are anticipated, pricing reflects total pricing.

11. GOVERNMENT-FURNISHED INFORMATION, EQUIPMENT, AND FACILITIES

The Government doesn’t anticipate GFE being necessary for this requirement. However, Government Furnished Information (GFI) referenced in paragraph 4.2 and 4.3. This information is non-sensitive, therefore is not considered to be classified information.

12. SECURITY REQUIREMENTS

See VA 6500.6 Checklist, Appendix A (Attachment D below) Due to the Government providing non-sensitive information to the awardee, the security level for this project can be at the lowest level of security surveillance, in order to perform this particular contract action. The level of security for this contract action does not require PIV badges be issued to the awardee and their staff members.

13. KEY PERSONNEL

The Program Manager Senior, whose resume shall be submitted with the technical proposal, is defined as key personnel for the base contract. Key personnel may be identified in the contract. Key personnel shall not be removed, diverted, or replaced from work without concurrence by the COR, and approval of the CO.

The Contractor(s) must have extensive knowledge and experience in designing and delivering simulation-based assessment centers for senior-level leaders. The Contractor(s) shall identify and manage the persons to be used in conducting the DAC (i.e., DAC Assessors). The Government, VHA Talent Management representative (VHA Talent Management Personnel Psychologist or VHA Talent Management Associate Director), and Contractor will review the DAC Assessor resumes during the contract kick-off meeting. The Contractor shall revise the selection of any DAC Assessor personnel based on Government or VHA Talent Management feedback and suggestions during the kick-off meeting.

Key Personnel

1. Program Manager Senior

2. DAC Assessors:

a. Subject Matter Expert and

b. Facilitator

All DAC Assessors shall have formal academic experience or subject-matter specialization in a field related to psychology, social work, counseling, public health, or other human behavior science. Subject Matter Experts shall also have certification to consult on the Hogan Assessment Suite measuring personality (HPI), motives/preferences (MVPI), and stress derailers (HDS).

Contractor staff will be fully qualified and have the level of experience necessary to accomplish the requirements of this PWS. Furthermore, Contractor personnel are expected to be proficient using office automation equipment and software, and have sufficient written and verbal communication skills to support VA. Should any Contractor personnel be determined to be unacceptable in terms of technical competency or unacceptable personal conduct while working on contract activities, the Contractor will immediately remove and replace the unacceptable personnel at no additional cost to the Government. Contractor personnel are to serve in a support role; final decisions regarding VA business will always be made by Government personnel.

Any key personnel the Contractor offers as substitutes shall have the ability and qualifications, including education and experience, equal to or better than the key personnel whose resume was submitted with the successful proposal. Requests to substitute personnel shall be provided to the CO for review and approval. All requests for approval of substitutions in personnel shall be submitted to the CO at least 30 calendar days prior to making any change in key personnel. The request shall be written and provide a detailed explanation of the circumstances necessitating the proposed substitution. The Contractor shall submit a complete resume for the proposed substitute, and any other information requested by the CO needed to approve or disapprove the proposed substitution. The CO will evaluate such requests and promptly notify the Contractor of approval or disapproval thereof in writing.

14. IT SECURITY REQUIREMENTS

1. IT SECURITY REQUIREMENTS

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.

ACCESS to VA INFORMATION AND VA INFORMATION SYSTEMS

1. 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.

1. 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.

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.

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.

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

VA INFORMATION CUSTODIAL Language

1. 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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

INFORMATION SYSTEM DESIGN AND DEVELOPMENT

1. 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 COTR, and approved by the VA Privacy Service in accordance with Directive 6507, VA Privacy Impact Assessment.

The contractor/subcontractor shall certify to the COTR 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.

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.

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

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.

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.

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.

2. 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

3. 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.

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.

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.

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 7 Calendar days.

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 7 Calendar days.

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.

INFORMATION SYSTEM HOSTING, OPERATION, MAINTENANCE, OR USE

1. 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 vulnerability 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 COTR 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.

1. 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.

1. 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.

1. 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.

1. 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 COTR. 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.

1. 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.

1. 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.