Attachment SOW 10-22-25.pdf

CONSTRUCTION SCOPE OF WORK

593-23-306 - Replace Equipment in Mechanical Rooms

VA Southern Nevada Healthcare System (VASNHS)

North Las Vegas Campus 6900 North Pecos Road

North Las Vegas, NV 89086

593-23-306: Replace Equipment in Mechanical Rooms VA Southern Nevada Healthcare System

I. CONSTRUCTION SCOPE OF WORK:

The General Contractor (herein referred to as “GC”) shall furnish all labor and materials for Project 593-23-306 – Replace Equipment in Mechanical Rooms at the VA Southern Nevada Healthcare System (VASNHS) as required by drawings and specifications.

Period of Performance The Period of Performance for this contract is Three Hundred (300) calendar days.

The GC shall provide services to include but not limited to, decommission and demolition of existing clean steam generators, heating hot water pumps. The scope also includes the procurement and installation of a new reverse osmosis unit for the clean steam feed water. The GC shall also provide services for the modification of existing ductwork in BH002 and procurement and installation of a new air handler and associated ductwork in BD423. The GC shall make themselves intimately familiar with full scope as defined in this scope of work, construction drawings, and specifications.

The work will be accomplished at the VA Southern Nevada Healthcare System campus located at 6900 North Pecos Road, North Las Vegas, NV 89086.

A. Clean Steam Generators: Work includes all labor, material, equipment and supervision to replace the two existing clean steam generators in room BD423. Alterations of equipment pads and associated piping will be required as described in the drawings and specifications.

Contractor will be required to account for cooling and pre-heat time between demolition of the old and start-up of the new units. The Contractor shall be responsible for locating and installing one steam test port at each of the clean steam lines in BD423. The location of these ports shall be approved by the COR.

B. Heating Hot Water Skid: Work includes all labor, material, equipment and supervision to replace the heating hot water pumps in BD423. The contractor must submit a plan to provide temporary pumps to maintain heating hot water circulation. Due to the nature of this piping, It is imperative that any shutdown of the heating hot water must be limited to 1 hour maximum per instance, to maintain the expansion of seals in the piping throughout the facility. If an outage lasts longer than 1 hour, the contractor shall be solely responsible for clean-up and repairs resulting of any leaks in the heating hot water system in building 1.

C. Heating, Ventilation, and Air Conditioning: Work includes all labor, material, equipment and supervision to provide and install a new dedicated air handling unit in BD423 with associated supply and return ductwork. The contractor shall modify and relocate any light fixtures and other items as necessary for the installation. The contractor is responsible for providing scaffolding as required to gain access for the installation.

D. Reverse Osmosis System: Work includes all labor, material, equipment and supervision to provide and install a full and functional reverse osmosis feed water unit in room BD160 and connected to the new clean steam generators in BD423.

E. Electrical, Telecommunications, and Security Work: Work includes all labor, material, equipment and supervision to perform new electrical, communications and security systems to the spaces renovated and the new additions detailed by the construction drawings and specifications. Provide access control for all the required doors, coordinate with the door hardware schedule for additional requirements. Provide new cameras, associated devices, and equipment.

F. Mechanical, Plumbing and Fire Protection Work: Work includes all labor, material, equipment, and supervision to perform the required Mechanical, Plumbing and Fire Protection construction work on this project including providing materials and construction equipment as detailed by the construction drawings and specifications.

All new mechanical systems shall be addressable and controllable via the existing Central Utility Plant (CUP). The Environmental Climate Control (ECC) system shall monitor space conditions and unit status and shall alarm the Facility Operations staff as detailed by the mechanical control drawings and specifications. The mechanical controls will need to be Johnson Controls to ensure compatibility with the rest of the VASNHS campus.

G. Permits: All safety plans, crane pick permits, confined space permits, Interim Life Safety

Measures (ILSMs), Infection Control Risk Assessments shall be executed in accordance with the contract documents. The permits and safety measures will need to be approved by VA personnel (Engineering, Safety, Infection Control, etc.) prior to commencing any corresponding work activities. The GC will be responsible for attaining Dust Control Operating Permit (DCOP) with the Clark County Department prior to the start of construction activities.

H. Pre-solicitation Site Visit: Prospective General Contractors are strongly urged to attend pre-bid site visits prior to submitting their bids to evaluate the extent of the required construction tasks.

Coordination for the site visit should be arranged with the Contracting Officer (CO) and the Contracting Officer's Representative (COR).

I. Specifications and Drawings: Construction Drawings and Project Specifications completed by

Prime Architect/Engineering (A/E) firm ‘DAV Energy‘ may be obtained from the website where the solicitation is posted.

J. Inspections: Comprehensive 3rd party inspections, testing and written reports for all Divisions are required and paid by the General Contractor. Contractor shall employ third party inspection consultants to perform all inspections required by this contract.

K. Commissioning: The VA has arranged with a third-party consultant (TBD) to act as the

Commissioning Agent. The Commissioning Agent is the designated person, company, or entity that plans, schedules, and coordinates the commissioning team to implement the commissioning process. The Contractor shall employ or appoint staff to act as a Commissioning Manager (see 01 91 00) to carry out all commissioning tasks including managing submittal requirements and resolution of the issues log, and coordination with the third-party Commissioning Agent.

L. Hazardous materials: Contractor is responsible for Asbestos Containing Materials (ACM) removal and mitigation where it occurs inside the area of work. There will be no cost to the Government for any removal, testing, oversight, or clearance of ACM. Traditional and Glovebag Abatement methods are the only allowable methods of abatement. No alternate abatement methods will be considered.

M. Accessibility: The design shall be constructed to ensure access to the handicapped and disabled.

All facilities which are open to the public, to limited segments of the public, visited by the public in the conduct of normal business, or those which hire or have the capacity to hire civilian personnel, shall be designed and constructed to be accessible to the handicapped. Design and construction must comply with Architectural Barriers Act Accessibility Standard (ABAAS) for Federal Facilities and PG-18-13 VA Barrier Free Design Standard, whichever is most stringent.

N. Infection Control: The construction shall clearly define and meet “Infection Control Risk

Assessment” criteria. The construction shall be in accordance with the VHA Infection Control Risk Assessment (ICRA) for Construction, Renovation and Maintenance form (Appendix B). The VHA ICRA form must be completed for any work activities that will require access to the interior of the buildings. The ICRA level will be based on the Construction, Renovation, and/or Maintenance Activity Category and the Patient Risk Category. The contractor will assist in completion of the Infection Control Permit required prior to start of work. The form will need to be signed by Infection Preventionist prior to the commencement of any corresponding work.

Refer to the Construction Drawings for ICRA Designations for interior renovation spaces.

O. HIPAA: The design shall accommodate compliance with current HIPAA requirements.

P. Complete and Functional: The Additions and Renovation shall be in phases and address coordination between all phases to provide a complete, watertight, and functional project for the intended use. Free and unobstructed egress shall be maintained during all phases.

Q. Construction Period of Performance: The expected construction duration of three hundred

(300) calendar days includes all pre-construction activity and post-construction testing, third-party inspections and commissioning. Contractor to perform Commissioning of all new systems and existing systems impacted by the project according to requirements in sections: 01 91 00 – General Commissioning Requirements, 22 08 00 – Commissioning of Plumbing Systems, 23 08 00 – Commissioning of HVAC Systems; 26 08 00 – Commissioning of Electrical Systems; 27 08 00

– Commissioning of Communications Systems and 28 08 00 Commissioning of Electronic Systems and Security Systems. A detailed commissioning plan and project schedule must be provided and approved by the applicable VA staff to ensure that all devices are calibrated, programmed, and all graphic displays are accurate.

R. Phasing Plan: General Contractor to submit a detailed phasing plan which outlines the sequence of activities, schedule, and coordination required for each phase, as detailed on Specification Section 01 00 00 General Requirements. The Phasing plan must include a comprehensive plan for utility outages, durations, and list projected load sheading plans. The clean steam generators and heating hot water pumps must be taken out of service and replaced one at a time to ensure adequate supply to critical areas.

S. Site Logistics Plan: Contractor to provide a site logistics plan prior to site mobilization. The Plan must entail the entrances that will be used by General Contractors and their subconsultants, construction fencing placement, material laydown area, construction trailers, construction personnel parking areas, material delivery routes and dumpster locations. Site Logistics Plan will be reviewed and approved by VA personnel (Engineering and VAPD). Unauthorized access routes will be prohibited throughout the Construction Period of Performance.

T. Storage and Dumpsters: Contractor to provide storage containers and dumpsters for disposal of construction debris and materials. The construction contractor will be required to submit construction waste debris reports to include weight of construction waste, weight of any recycled materials and the cost for removing construction waste. Dumpster shall be labeled (24” X 18” min with 3” high text) with Contractor’s information (Company Name, Superintendent and Phone number).

U. Utility Interruptions: Contractor shall submit a request to interrupt any such services to COR using the VA provided shutdown request form. Utility Shutdowns shall not occur prior to 14 days after the approval of the shutdown notice. Request shall state reason, date, exact time of, and approximate duration of such interruption. Before starting any work on existing utility services, the general contractor shall provide a written Method of Procedure (MOP) guideline outlining the step-by-step tasks, tools, safety measures, and other crucial information for completing a utility relocations and temporary electrical feeder installations, ensuring consistency and quality.

MOP must be approved by the COR before any utility interruptions can commence. All utility shutdowns and work to be completed during the shutdown will have to be performed after operational hours from 4:30pm-4:30am. Any utility not back on-line to its original functionality will require temporary utility (clean steam, heating hot water, power, etc.) at the expense of the contractor.

V. Construction Documentation Software: Contractor to utilize a Submittal Exchange Project Site or an approved equal Construction Administration platform dedicated for this project for the duration of the contract. Contractor will provide VA access to the site. Contractor will keep this site current and will use it for all submittals, RFIs, change documents, Record Drawing, electronic file management, and communication logs for the duration of the contract.

W. OSHA Compliance: Contractor shall comply with the Federal and State OSHA Blood Borne

Pathogens Standard(s). The Contractor shall ensure methods are in place by which all employees are educated as to the risks associated with blood borne pathogens in Health Care facilities.

Have policies and procedures in place which reduce the risk of employee exposure to blood borne pathogens. Have mechanisms for employee counseling and treatment following exposure to blood borne pathogens. Provide employees with appropriate personal protective equipment (PPE) and/or clothing such as gloves, caps, gowns, masks, and protective eyewear throughout the performance of this contract.

a. Prior to commencing work, general contractor shall provide proof that an OSHA designated “competent person” and “Site Safety and Health Officer” (CP) (29 CFR 1926.20(b)(2) will maintain a presence at the work site whenever the general or subcontractors are present.

b. Required Personnel from the General Contractor that are required to be on campus shall include Superintendent, Project Manager, Site Safety and Health Officer, and Quality Assurance/Quality Control manager. Each of the aforementioned roles must be help by a singular individual; dual or tri-hatted roles is prohibited.

c. All personnel from the General Contractors and Sub-Contractors that will be working on site will be required to submit negative TB Tests to the COR. TB Test results must not exceed 12 months from projected site visitation.

X. PIV Badging: All contracted personnel, including subcontractors whose employees require routine physical access, must request Non-Personal Identity Verification (PIV) access. This is in accordance with FAR 52.204-9, which mandates the inclusion of the clause for contracts requiring routine access to Federally controlled facilities. The expected timeframe to obtain PIV access is approximately 30 to 45 days. All Contractors shall clearly display an identification badge while on VA premises. The badge shall always be visible. Issuance of PIV Badging is detailed on Appendix A.

Y. Record Management Requirements: The following standard items relate to records generated in executing the contract and should be included in a typical Electronic Information Systems (EIS) procurement contract:

d. Citations to pertinent laws, codes and regulations such as 44 U.S.C chapters 21, 29, 31 and 33; Freedom of Information Act (5 U.S.C. 552); Privacy Act (5 U.S.C. 552a); 36 CFR Part 1222 and Part 1228.

e. Contractor shall treat all deliverables under the contract as the property of the U.S.

Government for which the Government Agency shall have unlimited rights to use, dispose of, or disclose such data contained therein as it determines to be in the public interest.

f. Contractor shall not create or maintain any records that are not specifically tied to or authorized by the contract using Government IT equipment and/or Government records.

g. Contractor shall not retain, use, sell, or disseminate copies of any deliverable that contains information covered by the Privacy Act of 1974 or that which is generally protected by the Freedom of Information Act.

h. Contractor shall not create or maintain any records containing any Government Agency records that are not specifically tied to or authorized by the contract.

i. The Government Agency owns the rights to all data/records produced as part of this contract.

j. The Government Agency owns the rights to all electronic information (electronic data, electronic information systems, electronic databases, etc.) and all supporting documentation created as part of this contract. Contractor must deliver sufficient technical documentation with all data deliverables to permit the agency to use the data.

k. Contractor agrees to comply with Federal and Agency records management policies, including those policies associated with the safeguarding of records covered by the Privacy Act of 1974. These policies include the preservation of all records created or received regardless of format [paper, electronic, etc.] or mode of transmission [e-mail, fax, etc.] or state of completion [draft, final, etc.].

No disposition of documents will be allowed without the prior written consent of the Contracting Officer. The Agency and its Contractors are responsible for preventing the alienation or unauthorized destruction of records, including all forms of mutilation. Willful and unlawful destruction, damage or alienation of Federal records is subject to the fines and penalties imposed by 18 U.S.C. 2701. Records may not be removed from the legal custody of the Agency or destroyed without regard to the provisions of the agency records schedules.

Contractor is required to obtain the Contracting Officer's approval prior to engaging in any contractual relationship (Subcontractor) in support of this contract requiring the disclosure of information, documentary material and/or records generated under, or relating to, this contract.

The Contractor (and any Subcontractor) is required to abide by Government and Agency guidance for protecting sensitive and proprietary information.

II. POST-AWARD:

A. Initial Site Visitation: The contractor shall perform a site visit to verify existing conditions, take measurements, and survey the construction area. The contractor shall coordinate with the VA Contracting Officer Representative (COR) to schedule the site visit. The site visit shall take place within seven (7) calendar days of the contractor receiving a NTP from the VA Contracting Officer. This site visit may be scheduled in conjunction with the Kick-off meeting.

B. Photograph Documentation: The GC shall take photographs of the area within the construction area prior to the commencement of any work activities. This precautionary measure will help identify and document any pre-existing damages to equipment or property, thereby mitigating potential disputes over damages that may arise during construction. These photographs should then be shared with the COR for archival purposes before the start of the work. The Contractor shall provide the photographs via their own File Transfer Protocol (FTP) site, ensuring that the folders are organized by the date the photos were taken and the specific location.

C. Safety Plan: The GC will provide current life safety plans that describes how they will ensure safe work practices at all subcontractor levels. Life Safety Plan must include, but not limited to responsibilities, objectives, corrective measures, reporting, inspections, safety procedures for varying subcontractor tasks, etc.

D. Meetings and Communication: Contractor shall schedule weekly project meetings. Contractor to arrange meetings among its consultants, VA, and/or other agencies or parties required for the execution and completion of the project. Contractor shall prepare meeting minutes for each formal meeting with the VA and submit minutes within three (3) federal workdays.

During the Period of Performance, the contractor shall coordinate and attend in-person weekly Construction Progress Meetings at the campus and shall also be available via Microsoft Teams.

The contractor shall coordinate the day and time of the weekly meeting the COR. The contractor shall provide the meeting agenda which shall include schedule updates/coordination, RFIs, Submittals, Quality Control, Safety, a three-week look ahead and any miscellaneous items two

(2) days before the weekly meeting. Contractor shall make meeting minutes and distribute those minutes to all attendees no later than two (2) days after the meeting.

E. Submittals: Prior to installation, the GC shall submit shop drawings, product data, product samples, and product submittals per Specifications 01 33 23.

F. Punchlist/Final Inspections: A punch list inspection is a critical step in the project closeout process. It involves a detailed inspection of the completed work to identify any items that do not meet the contract specifications, standards, or quality requirements. The punch list is essentially a document that lists all the tasks, repairs, or adjustments that need to be completed before the project can be considered fully finished and accepted by the VA.

The contractor is be responsible for performing the following tasks, including but not limited to:

• Preparation of the Punch List:

o As the construction project nears completion and the project is deemed substantially complete, the contractor shall conduct a thorough inspection of the work performed along with the COR and A/E Team. This inspection should identify any items that are incomplete, defective, or not in compliance with the contract documents.

o The A/E and VA will document these items in a punch list, which is a detailed list of all the deficiencies that need to be addressed before the project can be considered complete. These lists will be provided to the contractor within (5) federal working days.

• Correction of Deficiencies:

o The contractor is responsible for correcting all the deficiencies listed on the punch list. This includes completing any unfinished work, repairing defective work, and ensuring that all work complies with the contract documents.

• Submission to the CO and COR:

o The contractor shall return the punch list to the COR denoting what corrective actions were taken on the punch items. This submission is to be done in a timely manner or at the discretion of the CO to allow for review and coordination of the necessary corrective actions.

• Final Inspection:

o Once the contractor believes that all punch list items have been addressed, they should request a final inspection from the CO and COR.

o The CO or the COR will conduct a final inspection to verify that all punch list items have been completed satisfactory.

• Final Acceptance:

o If the final inspection confirms that all punch list items have been addressed and the work meets the contract specifications; the CO will issue a notice of final acceptance.

o The contractor will then proceed with the final steps of contract closeout, including submission of final documentation and request for final payment.

It is important to note that the punch list process is governed by the terms and conditions of the contract, including any specific clauses related to inspections and acceptance. For example, FAR 52.246-12, "Inspection of Construction," outlines the government's rights to inspect and test the work to ensure compliance with contract requirements. By following this process, the contractor can ensure that all work is completed to the satisfaction of the government and that the project can be successfully closed out.

G. Hours of Work: Work hours are 7:00m – 3:30pm, Monday thru Friday. All work performed shall be coordinated and scheduled thru the COR. After hours work will be allowed for tasks the GC deems necessary; however, any work outside of work hours must be coordinated and approved through the COR and CO.

H. National Holidays:

New Year’s Day January 1 Martin Luther King’s Birthday Third Monday in January President’s Day Third Monday in February Memorial Day Last Monday in May Juneteenth National Independence Day June 19 Independence Day July 4 Labor Day First Monday in September Columbus Day Second Monday in September Veterans Day November 11 Thanksgiving Day Fourth Thursday in November Christmas Day December 25

When a holiday falls on a Sunday, the following Monday shall be observed as a legal holiday by U.S. Government agencies. When a holiday falls on a Saturday, the preceding Friday shall be observed as a legal holiday by U.S. Government agencies. Also included would be any other day specifically declared by the President of the United States as a National Holiday. Reference (Federal Holidays (opm.gov))

I. Project Schedules: Contractor must submit a comprehensive schedule of work in compliance with Specification 01 32 16.15 Project Schedules (Small Projects Design/Bid/Build). The Contractor shall provide a detailed Critical Path Method (CPM) schedule anticipating the duration required for demolition, preparation, installation, and any other relevant activities. An electronic copy of the estimated schedule must be delivered to the Contracting Officer's Representative and the Contracting Officer within fourteen (14) calendar days of receiving the Notice to Proceed (NTP). The Contractor is responsible for maintaining this schedule and providing monthly updates via email to the COR and the CO as necessary.

The Contractor shall present a 3-Week Lookahead schedule at each weekly Construction Progress meeting. This schedule must include the actual construction work completed in the previous week and the planned construction activities for the upcoming three weeks, covering a total period of four weeks.

J. Other Pertinent Information or Special Considerations: The contractor is responsible for ensuring all equipment used by the contractor on VASNHS properties has been inspected and is safe for use. The contractor’s personnel shall be licensed, certified, and trained as required to operate this equipment.

Information Technology Certification & Accreditation (C&A). The Contractor shall not connect any contractor-owned IT devices (such as a lap top computer or remote connection from a Contractor system) to a VA internal trusted network. Therefore, the C&A requirements do not apply, and a Security Accreditation Package is not required.

Inspection and Storage. The Contractor shall be responsible for the inspection and storage of contractor equipment and materials that will be used in the performance of this contract. The contractor shall ensure all construction materials and equipment are stored and secured in a manner to limit theft or damage by weather, other contractors, staff, patients, etc. The work area shall be cleaned and made safe at end of each workday.

K. Quality Assurance/Quality Control (QA/QC): To minimize errors and omissions, the contractor shall develop and implement a Quality Assurance/Quality Control (QA/QC) plan that demonstrates a comprehensive review and coordination effort for their proposed construction tasks. The Department of Veterans Affairs (VA) reserves the right to inspect all work performed to ensure compliance with the Statement of Work (SOW). No later than fourteen (14) calendar days after receipt of Notice to Proceed (NTP), the contractor shall submit a QA/QC plan describing each task that will be taken during the Period of Performance and the name of the team member responsible for QA/QC for Contracting Officer (CO) approval.

The QA/QC personnel shall not perform any actual construction work. The Superintendent cannot serve as the QA/QC personnel. This restriction ensures that the QA/QC personnel maintain their objectivity and independence in overseeing the quality and compliance of the construction activities. By not engaging in the actual construction work, they can focus solely on their responsibilities related to quality assurance and quality control, thereby avoiding any potential conflicts of interest or divided attention that could compromise the integrity of their inspections and evaluations. The separation of duties is crucial for maintaining high standards of workmanship and ensuring that all construction activities adhere to the specified requirements and regulations.

L. Construction Period Services Consultant: The VA has retained ‘DAV Energy’ and their corresponding subconsultants to provide Construction Period Services for this project and shall be responsible for construction support, review of construction contractor’s submittals (RFIs, shop drawings, test reports, change orders, etc.), and site visits during construction.

The COR and/or VA designated representatives will require access in order to monitor, observe and review all aspects of the project to ensure compliance with Construction Documents, Specifications and other regulatory requirements.

M. Change Orders: During construction, the contractor may submit requests for additional information concerning the design or other aspects of the project; however, these must be submitted in writing and must include, at a minimum, a description of or background information for the issue in question, as well as a complete impact assessment for any recommended changes. The COR or designated AE representative will review, evaluate, and respond as required. Any proposed changes to the scope or deviations from the design documents may be submitted to the COR for review and discussion, however any changes to the contract or scope of the project must first be approved by the CO in writing before implementation.

III. VA SECURITY REQUIREMENTS FOR CONTRACTORS:

All contractor’s and subcontractor’s personnel shall be subject to VA Directive 0735, Homeland Security Presidential Directive 12 (HSPD-12) Program, Federal laws, regulations, standards, and VA Handbooks similar to VA personnel regarding information and information system security.

a. Non-Personal Identity Verification (PIV) Card requests shall be submitted to VA COR (Contracting

Officer Representative) by the contractor. Request submission is the contractor’s responsibility to properly fill out the documents identified below. These documents will become a package for submission of Non PIV Card application.,

1. VA Fingerprinting form

2. Declaration for Federal Employment (OF306), if there are any questions that were answered “yes” on item 9-13 on this form, fill out the appropriate addendum and include in the package.

3. Authorization For Release of Information (VA Form 0710)

4. Self-Certification of Continuous Service

5. Contractor Background Investigation Request

b. Non PIV Card process may take 30-45 days, depending on the contractor’s personnel background check, Special Agreement Check (SAC). SAC is an automated records check conducted by the Federal Bureau of Investigation in collaboration with the Office of Personnel Management (OPM).

c. Non-PIV Card Applicant is subject to National Agency Check with written Inquiries (NACI) conducted by OPM. This investigation covers a period of 5 years and a review of current records in the OPM Security Investigation Index (SII), DOD Defense Central Investigations Index (DCII), FBI name check, and FBI fingerprint check as well as written inquiries from previous employers and references on the application for employment. It is used for Non-sensitive or Low Risk positions in

VA.

d. Once all documents are completely and properly filled out, hand carry and submit to VA COR. Do not send completed forms through email due to Personal Identifiable Information.

e. VA COR will then provide all documents to Engineering Service’s VA PIV Sponsor/Manager to initiate the Non-PIV process.

f. PIV Sponsor/Manager will notify each applicant when to proceed for fingerprinting appointment.

g. Each applicant shall be fingerprinted at VA Southern Nevada Healthcare System’s PIV Office, located first floor in Building 6 (Administration Building), 6900 N. Pecos Road, N. Las Vegas, NV 89086. Each applicant shall sign in at the Security Desk.

h. VA COR or PIV Sponsor/Manager will provide status of each applicant’s Non-PIV Card.

i. Non-PIV Card is critical for the construction start date, as the contractor’s personnel without Non PIV Card may result with a restricted, limited, or no access to the job site. See attached blank forms/documents that is required for submission of Non PIV Card application for each of contractors/sub-contractors

SECURITY REQUIREMENTS FOR UNCLASSIFED INFORMATION TECHNOLOGY SECURITY

RESOURCES

a. The contractor and their personnel shall be subject to the same Federal laws, regulations, standards and VA polices as VA personnel, regarding information and information system security. These include, but are not limited to Federal Information Security Management Act (FISMA), Appendix III of OMB Circular A-130, and guidance and standards, available from the Department of Commerce’s National Institute of Standards and Technology (NIST). This also includes the use of common security configuration available from NIST’s Web site at:

http://checklists.nist.gov.

b. To ensure that appropriate security controls are in place, contractors must follow the procedures set forth in “VA Information and Information System Security/Privacy Requirements for IT Contractors” located at the following site: http://www.iprm.oit.va.gov.

c. These provisions shall apply to all contracts in which VA sensitive information is stored, generated, transmitted, or exchanged by VA, a contractor, subcontractor or a third-party, or on behalf of any of these entities regardless of format or whether it resides on a VA system or contractor/subcontractor’s electronic information system(s) operating for or on the VA behalf.

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.

e. The contractor or subcontractor must notify the COR 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 COR must also be notified immediately by the contractor or subcontractor prior to an unfriendly termination.

VA INFORMATION CUSTODIAL LANGUAGE

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

b. VA information should not be co-mingled, if possible, with any other data on the contractors/subcontractor’s information systems or media storage systems in order to ensure VA requirements related to data protection and media sanitization can be met. If co-mingling must be allowed to meet the requirements of the business need, the contractor must ensure that VA’s information is returned to the VA or destroyed in accordance with VA’s sanitization requirements. VA reserves the right to conduct on site inspections of contractor and subcontractor IT resources to ensure data security controls, separation of data and job duties, and destruction/media sanitization procedures are in compliance with VA directive requirements.

c. Prior to termination or completion of this contract, contractor/subcontractor must not destroy information received from VA, or gathered/created by the contractor in the course of performing this contract without prior written approval by the VA. Any data destruction done on behalf of VA by a contractor/subcontractor must be done in accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management and its Handbook 6300.1 Records Management Procedures, applicable VA Records Control Schedules, and VA Handbook 6500.1, Electronic Media Sanitization. Self-certification by the contractor that the data destruction requirements above have been met must be sent to the COR 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 an 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. In accordance with 45 CFR 164.502(e), the Privacy Rule includes exceptions to the Business Associate Standard. This requirement meets the exception and does not require a Business Associate agreement in order for Covered Entity to disclose Protected Healthcare Information to the contractor for treatment.

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. The records created in accordance with this contract belong to the VASNHS and should be returned to the VASNHS and/or destroyed in accordance with VHA RCS 10-1. Destruction should only occur with advance notice and guidance from the Records Management Officer at the VASNHS. Records shall be safeguarded in accordance with the Privacy Act, Health Insurance Portability and Accountability Act (HIPAA) and the VASNHS Release of Information Unit. Patient Medical information is considered privileged and shall not be disclosed or revealed in any way without prior written permission from the VA Chief, Health Information Management Section.

k. The Contractor shall only release medical information obtained during the course of this contract to those VA staff members involved in the necessary management and treatment of that individual patient. Patient list and name of patients are considered privileged information and shall not be disclosed or revealed in any way for use outside the Contractor without prior written permission from the referring VA Chief of Staff. Veterans requesting copies of medical information generated by the contractor will be referred to the VASNHS Release of Information Unit.

l. 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 VASNHS Release of Information Unit for response.

m. 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 VASNHS Release of Information Unit for response.

n. 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 6500.1requirements. This must be completed within 30 days of termination of the contract.

The C&A requirements do not apply, and that a Security Accreditation Package is not required.

Ensure that a Contractor Security Control Assessment (CSCA) is completed within 30 days of contract approval and yearly on the renewal date of the contract.

Ensure that the CSCA is sent to the ISO and the OCS Certification Program Office for review to ensure that appropriate security controls are being implemented in service contracts.

Ensure a copy of the CSCA is maintained in the Security Management and Reporting Tool (SMART) database. COR will provide a copy of the completed CSCA to ISO for uploading into SMART database.

HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA):

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

That only the minimum necessary patient information is used to provide appropriate service to the correct patient.

That the undersigned understands that all parties are bound by the requirements of the “Health Insurance Portability and Accountability Act of 1996” which provide guidance on the protection of patient privacy and confidentiality. This Act mandates that all government agencies, and those bodies with whom they contract, must be in compliance with the directives of the Act.

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.

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:

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

(2) Description of the event, including:

(a) date of occurrence;

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

(3) Number of individuals affected or potentially affected;

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

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

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

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

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

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

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

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

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:

(1) Notification;

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

(3) Data breach analysis;

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

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

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

SECURITY CONTROLS COMPLIANCE TESTING

On a periodic basis, VA, including the Office of Inspector General, reserves the right to evaluate any or all of the security controls and privacy practices implemented by the contractor under the clauses contained within the contract. With 10 working-day’s notice, at the request of the government, the contractor must fully cooperate and assist in a government-sponsored security controls assessment at each location wherein VA information is processed or stored, or information systems are developed,…