BPM024544 IFB Fire Alarm System.docx

IFB Template Version 2.0 Dated December 4, 2020 Dear IFB Procurement Officers, This document contains an IFB template to aid in producing a complete solicitation. In producing a solicitation, all contributors should note following information:

1. Download the most recent template version on the State website before starting any new IFB draft: (http://procurement.maryland.gov/procurement-staff/).

2. Format is important. Auto-numbering and other formatting in the document is achieved through use of Word “Styles.” Please do not manually number any requirements. See more styles-related instructions on page 1 (or perform a find for Word Styles instructions). Note that ALL requirements are to be numbered (no “simple bullets” or plain paragraphs).

3. Data entry and tailoring instructions are flagged throughout the document using guillemets (<< and >>). Where the text between the guillemets is one word such as <<solicitationName>>, perform a Word find and replace so that every instance is replaced throughout the document. See the Basic IFB Tailoring table below for more guidance. Tip: Perform a find on guillemets to find any remaining tailoring not yet completed. A find on double brackets “[[“ and “]]” will locate all template instructions, which will help in ensuring all instructions have been addressed and deleted before publication.

4. What’s in this version of the IFB?

a. Updated Attachment B, Section G with the correct COMAR reference for mistakes in bids.

b. Revised language in Section 1.1 to note minimum qualifications are not the only documents to determine responsiveness of the Bid.

c. Fixed the broken link for Attachment H to open the correct version of the Conflict of Interest Affidavit and Disclosure;

d. Corrected reference to Indemnification Section 10 in Attachment M, Section 29.2.

e. Updated broken links in Sections 3.7.5.B 2) and 3.7.5.B 14).

f. Updated Section 3.9 SOC 2 Type 2 Audit Report to change language from “principles” to “services criteria” based on the new Guidance and its new name.

g. Changed Section 3.13.1 to add a new Green Purchasing clause and made the No-cost Extension clause Section 3.13.2.

h. Clarified instructions in Section 4.1 Pre-Bid Conference for in-person versus online conferencing.

i. Added link to eMMA in Section 4.2.2 and updated wording for vendor registration.

j. Updated Section 4.25 Electronic Procurements Authorized to allow submissions through eMMA and removed outdated “facsimile” language.

k. Updated the MBE Goal Section 4.26 to allow for implied MBE waivers and waiving or curing minor irregularities in accordance with COMAR 21.06.02.04.

l. Updated the VSBE Goal Section 4.27.1.B to clarify the new verification and certification of the VSBE through the State Department of Veterans Affairs and eMMA.

m. Updated Living Wage Requirements Section 4.28 for the Maryland Department of Labor’s new agency name and to add language for Tier 2 wages adjusting with the State’s minimum wage.

n. Replaced Nonvisual Access Language in Section 4.33.

o. Updated Small Business Reserve (SBR) Procurement Section 4.37 to clarify the SBR criteria for the number of employees OR the average gross sales of the business operations. The word “and” is changed to “or” at the very end of Section 4.37.2.C 1) f).

p. Updated Section 5.5 to accept electronic bids through eMMA, the preferred option. Made option 2 to still allow for paper bids.

q. Updated Section 5.6 to accept electronic copies of the contract and other required documentation after award recommendation.

r. Updated Section 17 Termination for Default in Attachment M – The Contract to reflect new language about annual and renewable bonds.

s. Updated Section 22 in Attachment M – The Contract to reflect the change to $200,000 for financial disclosures.

t. Added optional Section 45 – Maryland’s Green Purchasing Reporting Requirements to Attachment M.

Basic IFB Tailoring Perform a find and replace on the following text to begin customizing this IFB. Be sure to select “Match Case” in the Word Find/Replace dialog box (Home tab, select Replace button, click More, check Match Case). Remove this Basic IFB Tailoring table prior to release.

Note: Don’t change the default fields for any information you do not yet know (Keep the appropriate line from this table until the substitution is made.).

Tip: Delete an instruction (found in red text) once you’ve performed the action or associated tailoring. The remaining instructions will act as a reminder to complete the task.

Type exactly as typed below in the find/replace dialog, including brackets << >> where indicated, with “Match Case” selected.

Replace with Text Do NOT include brackets in the “Replace with:” field.

and again for all caps Installation of fire control panel Title

and again for all caps

BPM024544

Solicitation number

As you progress through the template, perform a find/replace on other values flagged with << to change all similar values throughout the document.

State of Maryland Maryland State Police (MSP)

INVITATION FOR BIDS (IFB)

Installation of fire control panel IFB Number BPM024544

Issue date: June 8, 2021

NOTICE

A Prospective Bidder that has received this document from a source other than eMarylandMarketplace (eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2.

Minority Business Enterprises Are Encouraged to Respond to this Solicitation.

NO BID NOTICE/VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation. Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: Installation of fire control panel Solicitation No: BPM024544

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

· Other commitments preclude our participation at this time

· The subject of the solicitation is not something we ordinarily provide

· We are inexperienced in the work/commodities required

· Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

· The scope of work is beyond our present capacity

· Doing business with the State is simply too complicated. (Explain in REMARKS section)

· We cannot be competitive. (Explain in REMARKS section)

· Time allotted for completion of the Bid is insufficient

· Start-up time is insufficient

· Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

· Bid requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

· MBE or VSBE requirements (Explain in REMARKS section)

· Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory. (Explain in REMARKS section)

· Payment schedule too slow

· Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS: ____________________________________________________________________________________ Vendor Name: ________________________________ Date: _______________________ Contact Person: _________________________________ Phone (____) _____ - _________________ Address: ______________________________________________________________________ E-mail Address: ________________________________________________________________ State of Maryland Maryland State Police (MSP) Key Information Summary Sheet

7745 Washington Blvd, Jessup, MD 20794 e-mail:

Office Phone:

rene.alonso@maryland.gov 240-917-7830

See Attachment A for directions and instructions.

Bidders are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page iv).

Table of Contents – IFB

Installation of fire control panel Solicitation #: BPM024544 IFB Document

IFB for Maryland State Police Page 74 of 74

Minimum Qualifications Bidder Minimum Qualifications As part of the determination to be considered responsive, the Bidder must document in its Bid that it satisfies the following Minimum Qualifications:

The Bidder shall have three (3) years of experience providing fire alarm installation.

Required Documentation: As proof of meeting this requirement, the Bidder shall provide with its Bid tree references from the past five years that collectively are able to attest to the Bidder’s required years of experience in providing fire alarm installation.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

Contractor Requirements: Scope of Work Summary Statement The Maryland State Police (MSP or the "Department") is issuing this Invitation for Bids (IFB) in order to procure the services defined in this Section 2, as specified in this IFB, from a contract between the successful bidder(s) and the Maryland State Police for fire alarm system installation.

It is the State’s intention to obtain goods and services, as specified in this IFB, from a Contract between the selected Bidder and the State.

The Department intends to make a single award under $50K, no bids more than 50K will be accepted, no exceptions, for the work under this IFB. See IFB Section 4.9 Award Basis for more Contract award information.

A Bidder, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Bidder (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

Background and Purpose Install fire alarm control panel with voice evacuation and batteries. Remote annunciator panel, addressable pull stations, addressable smoke detector heads with base, wall mounted speaker strobe devices, wall strobe devices, wall speaker devices, equipment Cabinet with Digital amplifier, duct detectors, that would be to NFPA code for an office building for 30 employees. Installation of network gateway and digital alarm communication transmitter to communicate with Duty officer.

Other State Responsibilities

1. The State will provide normal office working facilities and equipment reasonably necessary for Contractor performance under the Contract. Any special requirements (e.g., reprographic services, computer time, key data entry) shall be identified.

1. The State is responsible for providing required information, data, documentation, and test data to facilitate the Contractor’s performance of the work, and will provide such additional assistance and services as is specifically set forth.

Responsibilities and Tasks Contractor shall provide labor, equipment, materials and supervision to properly install a new addressable fire system.

Production of CAD Drawings System Design Drawings Submittal Data System Wiring Diagrams Electrical Connections Electrical labor and Material Programming of Alarm System Installation testing Final Acceptance Test with AHJ 2 years’ warranty on equipment and material installed Communication

Contractor shall keep premises clean and free of debris and waste at all times.

Contractor shall provide all measures, in the performance of this project, to ensure the safety of occupants, visitors, staff and workmen in this area.

Contractor shall repair, at no extra cost to the owner, any and all areas damaged during the course of this project that do not pertain to this project back to the reasonable satisfaction of the Maryland State Police.

Contractor Requirements: General Contract Initiation Requirements

THIS SECTION IS INAPPLICABLE TO THIS IFB.

Reserved Invoicing General

1. The Contractor shall email the original of each invoice and signed authorization to invoice to the Contract Monitor and Vickey Richardson at e-mail address: vickey.richardson@maryland.gov All invoices for services shall be verified by the Contractor as accurate at the time of submission.

An invoice not satisfying the requirements of a Proper Invoice (as defined in COMAR 21.06.09) cannot be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

1) Contractor name and address;

2) Remittance address;

3) Federal taxpayer identification (FEIN) number, social security number, as appropriate;

4) Invoice period (i.e. time period during which services covered by invoice were performed);

5) Invoice date;

6) Invoice number;

7) State assigned Contract number;

8) State assigned (Blanket) Purchase Order number(s);

9) Goods or services provided;

10) Amount due; and

11) Any additional documentation required by regulation or the Contract.

Invoices that contain both fixed price and time and material items shall clearly identify each item as either fixed price or time and material billing.

The Department reserves the right to reduce or withhold Contract payment in the event the Contractor does not provide the Department with all required deliverables within the time frame specified in the Contract or otherwise breaches the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract.

Any action on the part of the Department, or dispute of action by the Contractor, shall be in accordance with the provisions of Md. Code Ann., State Finance and Procurement Article §§ 15-215 through 15-223 and with COMAR 21.10.04.

The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor, however, is not exempt from such sales and use taxes and may be liable for the same.

Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract. In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

Invoice Submission Schedule The Contractor shall submit invoices in accordance with the following schedule:

1. For items of work for which there is one-time pricing (see Attachment B –Bid Form) those items shall be billed in the month following the acceptance of the work by the Department.

1. For items of work for which there is annual pricing, see Attachment B–Bid Form, those items shall be billed in equal monthly installments for the applicable Contract year in the month following the performance of the services.

Liquidated Damages MBE Liquidated Damages

THIS SECTION IS INAPPLICABLE TO THIS IFB.

Disaster Recovery and Data The following requirements apply to the Contract:

Redundancy, Data Backup and Disaster Recovery

1. Unless specified otherwise in the IFB, Contractor shall maintain or cause to be maintained disaster avoidance procedures designed to safeguard State data and other confidential information, Contractor’s processing capability and the availability of hosted services, in each case throughout the Contract term. Any force majeure provisions of the Contract do not limit the Contractor’s obligations under this provision.

1. The Contractor shall have robust contingency and disaster recovery (DR) plans in place to ensure that the services provided under the Contract will be maintained in the event of disruption to the Contractor/subcontractor’s operations (including, but not limited to, disruption to information technology systems), however caused.

6. The Contractor shall furnish a DR site.

6. The DR site shall be at least 100 miles from the primary operations site, and have the capacity to take over complete production volume in case the primary site becomes unresponsive.

1. The contingency and DR plans must be designed to ensure that services under the Contract are restored after a disruption within twenty-four (24) hours from notification and a recovery point objective of one (1) hour or less prior to the outage in order to avoid unacceptable consequences due to the unavailability of services.

1. The Contractor shall test the contingency/DR plans at least twice annually to identify any changes that need to be made to the plan(s) to ensure a minimum interruption of service. Coordination shall be made with the State to ensure limited system downtime when testing is conducted. At least one (1) annual test shall include backup media restoration and failover/fallback operations at the DR location. The Contractor shall send the Contract Monitor a notice of completion following completion of DR testing.

1. Such contingency and DR plans shall be available for the Department to inspect and practically test at any reasonable time, and subject to regular updating, revising, and testing throughout the term of the Contract.

Data Export/Import

1. The Contractor shall, at no additional cost or charge to the State, in an industry standard/non-proprietary format:

10. perform a full or partial import/export of State data within 24 hours of a request; or

10. provide to the State the ability to import/export data at will and provide the State with any access and instructions which are needed for the State to import or export data.

1. Any import or export shall be in a secure format per the Security Requirements.

Data Ownership and Access

1. Data, databases and derived data products created, collected, manipulated, or directly purchased as part of a IFB are the property of the State. The purchasing State agency is considered the custodian of the data and shall determine the use, access, distribution and other conditions based on appropriate State statutes and regulations.

Public jurisdiction user accounts and public jurisdiction data shall not be accessed, except (1) in the course of data center operations, (2) in response to service or technical issues, (3) as required by the express terms of the Contract, including as necessary to perform the services hereunder or (4) at the State’s written request.

The Contractor shall limit access to and possession of State data to only Contractor Personnel whose responsibilities reasonably require such access or possession and shall train such Contractor Personnel on the confidentiality obligations set forth herein.

At no time shall any data or processes – that either belong to or are intended for the use of the State or its officers, agents or employees – be copied, disclosed or retained by the Contractor or any party related to the Contractor for subsequent use in any transaction that does not include the State.

The Contractor shall not use any information collected in connection with the services furnished under the Contract for any purpose other than fulfilling such services.

Provisions in Sections 3.5.1 – 3.5.3 shall survive expiration or termination of the Contract. Additionally, the Contractor shall flow down the provisions of Sections 3.5.1-3.5.3 (or the substance thereof) in all subcontracts.

Insurance Requirements The Contractor shall maintain, at a minimum, the insurance coverages outlined below, or any minimum requirements established by law if higher, for the duration of the Contract, including option periods, if exercised:

The following type(s) of insurance and minimum amount(s) of coverage are required:

1. Commercial General Liability - of $1,000,000 combined single limit per occurrence for bodily injury, property damage, and personal and advertising injury and $3,000,000 annual aggregate. The minimum limits required herein may be satisfied through any combination of primary and umbrella/excess liability policies.

1. Errors and Omissions/Professional Liability - $1,000,000 per combined single limit per claim and $3,000,000 annual aggregate.

1. Crime Insurance/Employee Theft Insurance - to cover employee theft with a minimum single loss limit of $1,000,000 per loss, and a minimum single loss retention not to exceed $10,000. The State of Maryland and the Department should be added as a “loss payee.”

1. Cyber Security / Data Breach Insurance – (For any service offering hosted by the Contractor) ten million dollars ($10,000,000) per occurrence. The coverage must be valid at all locations where work is performed or data or other information concerning the State’s claimants or employers is processed or stored.

1. Worker’s Compensation - The Contractor shall maintain such insurance as necessary or as required under Workers’ Compensation Acts, the Longshore and Harbor Workers’ Compensation Act, and the Federal Employers’ Liability Act, to not be less than. one million dollars ($1,000,000) per occurrence (unless a state’s law requires a greater amount of coverage). Coverage must be valid in all states where work is performed.

1. Automobile or Commercial Truck Insurance - The Contractor shall maintain Automobile or Commercial Truck Insurance (including owned, leased, hired, and non-owned vehicles) as appropriate with Liability, Collision, and PIP limits no less than those required by the State where the vehicle(s) is registered, but in no case less than those required by the State of Maryland.

The State shall be listed as an additional insured on the faces of the certificates associated with the coverages listed above, including umbrella policies, excluding Workers’ Compensation Insurance and professional liability.

All insurance policies shall be endorsed to include a clause requiring the insurance carrier provide the Procurement Officer, by certified mail, not less than 30 days’ advance notice of any non-renewal, cancellation, or expiration. The Contractor shall notify the Procurement Officer in writing, if policies are cancelled or not renewed within five (5) days of learning of such cancellation or nonrenewal. The Contractor shall provide evidence of replacement insurance coverage to the Procurement Officer at least 15 days prior to the expiration of the insurance policy then in effect.

Any insurance furnished as a condition of the Contract shall be issued by a company authorized to do business in the State.

The recommended awardee must provide current certificate(s) of insurance with the prescribed coverages, limits and requirements set forth in this section within five (5) Business Days from notice of recommended award. During the period of performance for multi-year contracts, the Contractor shall provide certificates of insurance annually, or as otherwise directed by the Contract Monitor.

The Contractor shall require any subcontractors to obtain and maintain comparable levels of coverage and shall provide the Contract Monitor with the same documentation as is required of the Contractor.

Security Requirements [[Review this section for applicability and tailor as appropriate:]] The following requirements are applicable to the Contract:

Employee Identification

1. Contractor Personnel shall display his or her company ID badge in a visible location at all times while on State premises. Upon request of authorized State personnel, each Contractor Personnel shall provide additional photo identification.

1. Contractor Personnel shall cooperate with State site requirements, including but not limited to, being prepared to be escorted at all times, and providing information for State badge issuance.

1. Contractor shall remove any Contractor Personnel from working on the Contract where the State determines, in its sole discretion, that Contractor Personnel has not adhered to the Security requirements specified herein.

1. The State reserves the right to request that the Contractor submit proof of employment authorization of non-United States Citizens, prior to commencement of work under the Contract.

Security Clearance / Criminal Background Check [[Use only one of the Criminal Background Check paragraphs below, as applicable; delete the others. If no background check is required insert the following sentence:]] A security clearance is not required for Contractor Personnel assigned to the Contract.

[[Otherwise adjust the paragraphs to meet IFB needs.

Contractor Is Responsible for Background Checks. Note: If only certain functions to be performed under the Contract necessitate a background check, the following background check requirement may be changed to designate those functions and limit background checks to Contractor and subcontractor personnel performing those designated functions, e.g., personnel in contact with vulnerable populations, personnel handling State funds, personnel conducting bookkeeping functions, personnel with access to Sensitive Data.]]

1. A criminal background check for each << Pick one: for any Contractor Personnel providing <<on-site OR any OR list specific services/roles impacted>> shall be completed << Pick one: prior to each Contractor Personnel providing any services under the Contract OR within four (4) months of Contract award OR describe what is appropriate.>>.

1. The Contractor shall obtain at its own expense a Criminal Justice Information System (CJIS) State and federal criminal background check, including fingerprinting, for all Contractor Personnel listed in sub-paragraph A. This check may be performed by a public or private entity.

[[OR]]

[[Department Is Responsible for Background Checks.]]

The Contractor shall obtain from each individual assigned to work on the Contract a statement permitting a criminal background check. The Department will obtain a criminal background check for each individual using a source of its choosing. The Contract Monitor reserves the right to reject any individual based upon the results of the background check.

[[OR (for Temporary Personnel Contracts)]]

1. The Contractor shall obtain criminal background checks on candidates it sends for employment at the Department. At a minimum, these checks must contain convictions and probation before judgment (PBJ) pleadings within the State of Maryland. This check may be performed by a public or private entity.

1. [[Keep when Contractor Performs the check, otherwise delete this paragraph:]]The Contractor shall provide certification to the Department that the Contractor has completed the required criminal background check described in this IFB for each required Contractor Personnel prior to assignment, and that the Contractor Personnel have successfully passed this check.

[[Pick one of E only, E and F, or F and G. Paragraph F is optional if E is kept but required if G is kept. E provides more discretion for the Contract Monitor.]]

1. Persons with a criminal record may not perform services under the Contract unless prior written approval is obtained from the Contract Monitor. The Contract Monitor reserves the right to reject any individual based upon the results of the background check. Decisions of the Contract Monitor as to acceptability of a candidate are final. The State reserves the right to refuse any individual Contractor Personnel to work on State premises, based upon certain specified criminal convictions, as specified by the State.

1. The CJIS criminal record check of each Contractor Personnel who will work on State premises shall be reviewed by the Contractor for convictions of any of the following crimes described in the Annotated Code of Maryland, Criminal Law Article:

28. §§ 6-101 through 6-104, 6-201 through 6-205, 6-409 (various crimes against property);

28. any crime within Title 7, Subtitle 1 (various crimes involving theft);

28. §§ 7-301 through 7-303, 7-313 through 7-317 (various crimes involving telecommunications and electronics);

28. §§ 8-201 through 8-302, 8-501 through 8-523 (various crimes involving fraud);

28. §§9-101 through 9-417, 9-601 through 9-604, 9-701 through 9-706.1 (various crimes against public administration); or

28. a crime of violence as defined in CL § 14-101(a).

1. Contractor Personnel with access to systems supporting the State or to State data who have been convicted of a felony or of a crime involving telecommunications and electronics from the above list of crimes shall not be permitted to work on State premises under the Contract; Contractor Personnel who have been convicted within the past five (5) years of a misdemeanor from the above list of crimes shall not be permitted to work on State premises.

1. A particular on-site location covered by the Contract may require more restrictive conditions regarding the nature of prior criminal convictions that would result in Contractor Personnel not being permitted to work on those premises. Upon receipt of a location’s more restrictive conditions regarding criminal convictions, the Contractor shall provide an updated certification regarding the Contractor Personnel working at or assigned to those premises.

On-Site Security Requirement(s)

1. For the conditions noted below, Contractor Personnel may be barred from entrance or leaving any site until such time that the State’s conditions and queries are satisfied.

31. Contractor Personnel may be subject to random security checks when entering and leaving State secured areas. The State reserves the right to require Contractor Personnel to be accompanied while in secured premises.

31. Some State sites, especially those premises of the Department of Public Safety and Correctional Services, require each person entering the premises to document and inventory items (such as tools and equipment) brought onto the site, and to submit to a physical search of his or her person. Therefore, Contractor Personnel shall always have available an inventory list of tools being brought onto a site and be prepared to present the inventory list to the State staff or an officer upon arrival for review, as well as present the tools or equipment for inspection. Before leaving the site, the Contractor Personnel will again present the inventory list and the tools or equipment for inspection. Upon both entering the site and leaving the site, State staff or a correctional or police officer may search Contractor Personnel. Depending upon facility rules, specific tools or personal items may be prohibited from being brought into the facility.

1. Any Contractor Personnel who enters the premises of a facility under the jurisdiction of the Department may be searched, fingerprinted (for the purpose of a criminal history background check), photographed and required to wear an identification card issued by the Department.

1. Further, Contractor Personnel shall not violate Md. Code Ann., Criminal Law Art. Section 9-410 through 9-417 and such other security policies of the agency that control the facility to which the Contractor Personnel seeks access. The failure of any of the Contractor Personnel to comply with any provision of the Contract is sufficient grounds for the State to immediately terminate the Contract for default.

Information Technology

(a) Contractors shall comply with and adhere to the State IT Security Policy and Standards. These policies may be revised from time to time and the Contractor shall comply with all such revisions. Updated and revised versions of the State IT Policy and Standards are available online at: www.doit.maryland.gov – keyword: Security Policy.

(b) The Contractor shall not connect any of its own equipment to a State LAN/WAN without prior written approval by the State. The Contractor shall complete any necessary paperwork as directed and coordinated with the Contract Monitor to obtain approval by the State to connect Contractor-owned equipment to a State LAN/WAN.

The Contractor shall:

33. Implement administrative, physical, and technical safeguards to protect State data that are no less rigorous than accepted industry best practices for information security such as those listed below (see Section 3.7.5);

33. Ensure that all such safeguards, including the manner in which State data is collected, accessed, used, stored, processed, disposed of and disclosed, comply with applicable data protection and privacy laws as well as the terms and conditions of the Contract; and

33. The Contractor, and Contractor Personnel, shall (i) abide by all applicable federal, State and local laws, rules and regulations concerning security of Information Systems and Information Technology and (ii) comply with and adhere to the State IT Security Policy and Standards as each may be amended or revised from time to time. Updated and revised versions of the State IT Policy and Standards are available online at: www.doit.maryland.gov – keyword: Security Policy.

Data Protection and Controls A. Contractor shall ensure a secure environment for all State data and any hardware and software (including but not limited to servers, network and data components) provided or used in connection with the performance of the Contract and shall apply or cause application of appropriate controls so as to maintain such a secure environment (“Security Best Practices”). Such Security Best Practices shall comply with an accepted industry standard, such as the NIST cybersecurity framework.

B. To ensure appropriate data protection safeguards are in place, the Contractor shall implement and maintain the following controls at all times throughout the Term of the Contract (the Contractor may augment this list with additional controls):

1) Establish separate production, test, and training environments for systems supporting the services provided under the Contract and ensure that production data is not replicated in test or training environment(s) unless it has been previously anonymized or otherwise modified to protect the confidentiality of Sensitive Data elements. The Contractor shall ensure the appropriate separation of production and non-production environments by applying the data protection and control requirements listed in Section 3.7.5.

2) Apply hardware and software hardening procedures as recommended by Center for Internet Security (CIS) guides https://www.cisecurity.org/ Security Technical Implementation Guides (STIG) https://public.cyber.mil/stigs/, or similar industry best practices to reduce the systems’ surface of vulnerability, eliminating as many security risks as possible and documenting what is not feasible or not performed according to best practices. Any hardening practices not implemented shall be documented with a plan of action and milestones including any compensating control. These procedures may include but are not limited to removal of unnecessary software, disabling or removing unnecessary services, removal of unnecessary usernames or logins, and the deactivation of unneeded features in the Contractor’s system configuration files.

3) Ensure that State data is not comingled with non-State data through the proper application of compartmentalization Security Measures.

4) Apply data encryption to protect Sensitive Data at all times, including in transit, at rest, and also when archived for backup purposes. Unless otherwise directed, the Contractor is responsible for the encryption of all Sensitive Data.

5) For all State data the Contractor manages or controls, data encryption shall be applied to such data in transit over untrusted networks.

6) Encryption algorithms which are utilized for encrypting data shall comply with current Federal Information Processing Standards (FIPS), “Security Requirements for Cryptographic Modules”, FIPS PUB 140-2:

http://csrc.nist.gov/publications/fips/fips140-2/fips1402.pdf http://csrc.nist.gov/groups/STM/cmvp/documents/140-1/1401vend.htm

7) Enable appropriate logging parameters to monitor user access activities, authorized and failed access attempts, system exceptions, and critical information security events as recommended by the operating system and application manufacturers and information security standards, including Maryland Department of Information Technology’s Information Security Policy.

8) Retain the aforementioned logs and review them at least daily to identify suspicious or questionable activity for investigation and documentation as to their cause and remediation, if required. The Department shall have the right to inspect these policies and procedures and the Contractor or subcontractor’s performance to confirm the effectiveness of these measures for the services being provided under the Contract.

9) Ensure system and network environments are separated by properly configured and updated firewalls.

10) Restrict network connections between trusted and untrusted networks by physically or logically isolating systems from unsolicited and unauthenticated network traffic.

11) By default “deny all” and only allow access by exception.

12) Review, at least annually, the aforementioned network connections, documenting and confirming the business justification for the use of all service, protocols, and ports allowed, including the rationale or compensating controls implemented for those protocols considered insecure but necessary.

13) Perform regular vulnerability testing of operating system, application, and network devices. Such testing is expected to identify outdated software versions; missing software patches; device or software misconfigurations; and to validate compliance with or deviations from the security policies applicable to the Contract. Contractor shall evaluate all identified vulnerabilities for potential adverse effect on security and integrity and remediate the vulnerability no later than 30 days following the earlier of vulnerability’s identification or public disclosure, or document why remediation action is unnecessary or unsuitable. The Department shall have the right to inspect the Contractor’s policies and procedures and the results of vulnerability testing to confirm the effectiveness of these measures for the services being provided under the Contract.

14) Enforce strong user authentication and password control measures to minimize the opportunity for unauthorized access through compromise of the user access controls. At a minimum, the implemented measures should be consistent with the most current Maryland Department of Information Technology’s Information Security Policy (https://doit.maryland.gov/policies/Pages/default.aspx), including specific requirements for password length, complexity, history, and account lockout.

15) Ensure State data is not processed, transferred, or stored outside of the United States (“U.S.”). The Contractor shall provide its services to the State and the State’s end users solely from data centers in the U.S. Unless granted an exception in writing by the State, the Contractor shall not allow Contractor Personnel to store State data on portable devices, including personal computers, except for devices that are used and kept only at its U.S. data centers. The Contractor shall permit its Contractor Personnel to access State data remotely only as required to provide technical support.

16) Ensure Contractor’s Personnel shall not connect any of its own equipment to a State LAN/WAN without prior written approval by the State, which may be revoked at any time for any reason. The Contractor shall complete any necessary paperwork as directed and coordinated with the Contract Monitor to obtain approval by the State to connect Contractor -owned equipment to a State LAN/WAN.

17) Ensure that anti-virus and anti-malware software is installed and maintained on all systems supporting the services provided under the Contract; that the anti-virus and anti-malware software is automatically updated; and that the software is configured to actively scan and detect threats to the system for remediation. The Contractor shall perform routine vulnerability scans and take corrective actions for any findings.

18) Conduct regular external vulnerability testing designed to examine the service provider’s security profile from the Internet without benefit of access to internal systems and networks behind the external security perimeter. Evaluate all identified vulnerabilities on Internet-facing devices for potential adverse effect on the service’s security and integrity and remediate the vulnerability promptly or document why remediation action is unnecessary or unsuitable. The Department shall have the right to inspect these policies and procedures and the performance of vulnerability testing to confirm the effectiveness of these measures for the services being provided under the Contract.

Security Logs and Reports Access

1. For a SaaS or non-State hosted solution, the Contractor shall provide reports to the State in a mutually agreeable format.

1. Reports shall include latency statistics, user access, user access IP address, user access history and security logs for all State files related to the Contract.

Security Plan

1. The Contractor shall protect State data according to a written security policy (“Security Plan”) no less rigorous than that of the State, and shall supply a copy of such policy to the State for validation, with any appropriate updates, on an annual basis.

The Security Plan shall detail the steps and processes employed by the Contractor as well as the features and characteristics which will ensure compliance with the security requirements of the Contract.

PCI Compliance [[Review for applicability.]] A. Contractor shall at all times comply, and ensure compliance with, all applicable Payment Card Industry ("PCI") Data Security Standards (“DSS”), including any and all changes thereto. Contractor shall provide the Department with documented evidence of current compliance to PCI DSS within 30 days of an Department request.

B. The Contractor shall annually furnish to the State evidence of the PCI Security Standards Council’s (SSC) acceptance or attestation of the Contractor’s conformance to the relevant PCI DSS requirements by a third party certified to perform compliance assessments.

C. The Contractor shall ensure that the scope of the annual SOC 2 Type II Report specified under Section 3.9 includes testing to confirm the PCI assessment results.

Security Incident Response A. The Contractor shall notify the Department in accordance with Section 3.7.9A-D when any Contractor system that may access, process, or store State data or State systems experiences a Security Incident or a Data Breach as follows:

1) notify the Department within twenty-four (24) hours of the discovery of a Security Incident by providing notice via written or electronic correspondence to the Contract Monitor, Department chief information officer and Department chief information security officer;

2) notify the Department within two (2) hours if there is a threat to Contractor’s solution as it pertains to the use, disclosure, and security of State data; and

3) provide written notice to the Department within one (1) Business Day after Contractor’s discovery of unauthorized use or disclosure of State data and thereafter all information the State (or Department) requests concerning such unauthorized use or disclosure.

B. Contractor’s notice shall identify:

1) the nature of the unauthorized use or disclosure;

2) the State data used or disclosed,

3) who made the unauthorized use or received the unauthorized disclosure;

4) what the Contractor has done or shall do to mitigate any deleterious effect of the unauthorized use or disclosure; and

5) what corrective action the Contractor has taken or shall take to prevent future similar unauthorized use or disclosure.

6) The Contractor shall provide such other information, including a written report, as reasonably requested by the State.

C. The Contractor may need to communicate with outside parties regarding a Security Incident, which may include contacting law enforcement, fielding media inquiries and seeking external expertise as mutually agreed upon, defined by law or contained in the Contract. Discussing Security Incidents with the State should be handled on an urgent as-needed basis, as part of Contractor communication and mitigation processes as mutually agreed upon, defined by law or contained in the Contract.

D. The Contractor shall comply with all applicable laws that require the notification of individuals in the event of unauthorized release of State data or other event requiring notification, and, where notification is required, assume responsibility for informing all such individuals in accordance with applicable law and to indemnify and hold harmless the State (or Department) and its officials and employees from and against any claims, damages, and actions related to the event requiring notification.

Data Breach Responsibilities A. If the Contractor reasonably believes or has actual knowledge of a Data Breach, the Contractor shall, unless otherwise directed:

1) Notify the appropriate State-identified contact within 24 hours by telephone in accordance with the agreed upon security plan or security procedures unless a shorter time is required by applicable law;

2) Cooperate with the State to investigate and resolve the data breach;

3) Promptly implement commercially reasonable remedial measures to remedy the Data Breach; and

4) Document responsive actions taken related to the Data Breach, including any post-incident review of events and actions taken to make changes in business practices in providing the services.

B. If a Data Breach is a direct result of the Contractor’s breach of its Contract obligation to encrypt State data or otherwise prevent its release, the Contractor shall bear the costs associated with (1) the investigation and resolution of the data breach; (2) notifications to individuals, regulators or others required by State law; (3) a…