Combined Synopsis-Solicitation 36C10E21Q0165.docx

COMBINED SYNOPSIS SOLICITATION NOTICE

i. This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotes are being requested and a written solicitation will not be issued. The government anticipates a single (all or none), firm‐fixed‐price award. A quotation is not an offer and, consequently, cannot be accepted by the Government to form a binding contract. Therefore, issuance by the Government of an order in response to a supplier’s quotation does not establish a contract. The order is an offer by the Government to the supplier to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the offer.

ii. 36C10E21Q0165 the Combined Synopsis Solicitation is issued as a request for quotation (RFQ).

iii. The solicitation incorporates provisions and clauses in effect through Federal Acquisition Circular 2021-05.

iv. The combined synopsis/solicitation is being issued under full and open competition. The applicable NAICS Code for this solicitation is 334290 Alarm Systems and Equipment Manufacturing and the Small Business Size limitation is 750 employees.

v. The contractor will provide, install and connect a fully integrated Physical Access Control System upgrade to the existing system at the St Louis Regional Office of the Veterans Benefits Administration.

CLIN 0001

1.00 EA __________________

The contractor will provide, install and connect a fully integrated Physical Access Control System/CCTV upgrade to the existing system at the St Louis Regional Office of the Veterans Benefits Administration.

Contract Period: Base POP Begin: 09-28-2021 POP End: 12-23-2021 PRINCIPAL NAICS CODE: 334290 – Alarm Systems and Equipment Manufacturing PRODUCT/SERVICE CODE: 6350 - Miscellaneous Alarm, Signal, and Security Detection Systems

Total Price _________________________

vi. Description of Requirement

SEE THE FOLLOWING ATTACHMENTS:

STATEMENT OF WORK

VA HANDBOOK 6500.6, APPENDIX C

INSTRUCTIONS FOR SUBMISSION OF QUOTE

vii. Period of Performance: Base period from 09-28-2021 to 12-23-2021

FOB Destination Point: 9700 Page Ave, St. Louis, MO 63132

viii. FAR 52.212-1, Instructions to Offerors – Commercial Items, applies to this solicitation. The following provisions and clauses are added as addenda:

52.252-1 Solicitation Provisions Incorporated by Reference (FEB 1998) http://www.acquisition.gov/far/index.html (FAR) and http://www.va.gov/oal/library/vaar/index.asp (VAAR)

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment (OCT 2020) 52.204-7 System for Award Management (OCT 2018)

(End of Addendum to 52.212-1)

Site Visit: Contractors are highly encouraged to attend so they may satisfy any questions regarding the requirement. The Contractor assumes all costs associated with attending the site visit. Please email names of attendees, company name and contact information no later than Tuesday, September 14, 2021 by 1 PM (CDT) to tamara.feist-hatfield@va.gov. Site visit will take place at the St. Louis Regional Benefits Office, 9700 Page Avenue, St. Louis, MO 63132 on Wednesday, September 15, 2021 at 10 AM (CDT).

Questions: Questions about this RFQ and resulting from the site shall be submitted via electronic mail to the Contract Specialist Tamara Feist-Hatfield at tamara.feist-hatfield@va.gov Deadline for submission of questions is Friday, September 17, 2021 at 10 AM (CDT) The Government will attempt to answer all questions received after this deadline prior to the due date/time for the submission of quotes. Responses to questions will be provided as amendment to the RFQ that will be made available to all potential quoters via posting at the Contract Opportunities Section of SAM.gov, under RFQ number 36C10E21Q0165.

SAM Registration: Quoters must be registered in the Systems for Award Management (SAM), and have an active registration at the time quotes are submitted. No contract will be entered into with an unregistered contractor. Internet access allows you to register by completing an electronic on-line registration application at https://www.sam.gov/portal/public/SAM/. On-line Representations and Certifications (ORCA) may also be filled out at this website.

Quote Preparation Instructions:

Specific Instructions:

Quotes shall be submitted electronically to tamara.feist-hatfield@va.gov. The email subject line must contain the following: “Quote in Response to 36C10E21Q0165”. Responses are due no later than September 21, 2021 @ 10:00 AM. (Eastern Time). The maximum size of each email cannot exceed 5 MB. Note that emails that containing compressed files such as Zip files will be rejected by the government server. Only written quotes will be accepted and must be received and identified by solicitation #36C10E21Q0165. Quoters bear the burden of ensuring that quotes are emailed on time. The quotes must include company name, address, DUNS Number, tax identification number (TIN), and point of contact with phone number, and e-mail address.

All quotes shall be legible and prepared in the format referenced below.

Part I - Executed Request for Quote and Price: The quoter is required to quote a fully burdened fixed price for the CLIN structure as shown in the above section v. Insert the quoted unit and extended prices in Contract Line Item Number (CLIN) 0001. All prices shall be represented in two decimal positions only. Example: $0.27, not $0.27458. Quoters shall acknowledge all amendments issued.

Part II - Technical Capability Factor: To demonstrate Technical Capability your quote must include the information listed in the attachment INSTRUCTIONS FOR SUBMISSION OF QUOTE.

Part III - Past Performance Factor: Your firm’s past performance shall be evaluated as stated in the attachment INSTRUCTIONS FOR SUBMISSION OF QUOTE.

ADDITIONAL INFORMATION:

Any quote submitted to the Contracting Officer after the due date and time shall be considered nonresponsive to and rejected.

It is the quoter’s responsibility to ensure that their quote is submitted in its entirety. Partial quotes shall be considered non-responsive and shall be rejected.

The quoter shall clearly separate each Evaluation Factor submitted within their quote.

Quoters shall address each evaluation factor in detail (see attachment titled INSTRUCTIONS FOR SUBMISSION OF QUOTE). The quoter shall include all supporting details necessary for the Government to determine the quoter’s technical qualifications and ability to perform and provide the required services and supplies, as well as the adequacy and advantages of the quote.

The quoter shall not submit the company’s general marketing literature or brochures. Such materials are not considered responsive to the specific evaluation criteria and shall not be evaluated.

The quoter’s technical and experience section shall not exceed five (5) total pages in length.

The quotes shall be evaluated strictly in accordance with their written content. The Government reserves the right to award without discussions based upon the initial evaluation of quotes.

Quotes which merely restate the requirement or state that the requirement shall be met, without providing supporting rationale, are not sufficient to meet minimum requirements.

Failure to provide any of the above information or providing inadequate or unclear information will result in the quote being rated unsatisfactory and ineligible for award.

(End of Addendum to 52.212-1)

ix. Quotes will be evaluated as follows:

BASIS FOR AWARD: This requirement will be competed and awarded under Federal Acquisition Regulation (FAR) Part 13, Simplified Acquisition Procedures. The contracting techniques associated with FAR Part 15 do not apply. Following receipt of quotes, the government will perform an evaluation using a comparative analysis of the quotes, in an impartial manner. The government intends to compare what has been quoted to one another to select the quote(s) that is best suited to fulfill the requirement. The evaluation factors outlined in this request for quote will determine suitability. Technical capability and past performance when combined are more important than price.

The Government will award a contract resulting from this solicitation to the responsive, responsible quoter in accordance with FAR 9.104-1 and whose quote conforms to the solicitation, and provides the best value to the Government, price and other non-price factors considered. Since award may be made to the quoter with other than the lowest price, price is not necessarily the determining factor.

The following factors shall be used to evaluate quotes:

EVALUATION FACTOR 1: TECHNICAL CAPABILITY - The technical capability rating reflects the degree to which the proposed approach has demonstrated the ability to provide and install the necessary equipment and software to the existing Physical Access Control System and as required by the Statement of Work. The technical evaluation rating will be determined by evaluating the information quoters must provide as listed in the INSTRUCTIONS FOR SUBMISSION OF QUOTE.

EVALUATION FACTOR 2: PAST PERFORMANCE- see the attachment INSTRUCTIONS FOR SUBMISSION OF QUOTE for a description of the past performance references quoters must provide.

EVALUATION FACTOR 3: PRICE- The Quoter is required to quote a fully burdened fixed price for the CLIN structure as shown in Section v. Insert the quoted unit and extended price in Contract Line Item Number (CLIN) 0001. All unit prices shall be represented in two decimal positions only. Example: $0.27, not $0.27458.

The Government shall evaluate price to determine whether or not it is considered fair and reasonable in accordance with FAR Part 13.106-3.

x. FAR 52.212-3, Offeror Representations and Certifications – Commercial Items applies to this solicitation. The offeror must have completed the annual representations and certifications electronically via the SAM website access through http://www.acquisition.gov. After reviewing the SAM database information, the offeror verifies by submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3, Offeror Representations and Certifications—Commercial Items, have been entered or updated in the last 12 months, are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201), except for paragraphs ____________.

xi. FAR 52.212-4, Contract Terms and Conditions – Commercial Items applies to this solicitation. The following FAR and VAAR provisions and clauses are added as addenda:

xii. 52.212-5, Terms and Conditions Required to Implement Executive Orders – Commercial Items, applies to this solicitation. The following provisions and clauses are selected as appropriate to this solicitation:

Paragraph “b” applicable clauses:

(4) 52.204-10 Reporting Executive Compensation & First-Tier Subcontract Awards (OCT 2016)

(8) 52.209-6 Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (OCT 2015)

(22) 52.219-28 Post-Award Small Business Program Representation (Jul 2013)

(27) 52.222-3 Convict Labor (June 2003)

(28) 52.222-19 Child Labor – Cooperation with Authorities and Remedies (JUL 2020)

(DEVIATION) (E.O. 13126)

2018)

(60) 52.232-36 Payment by Third Party (MAY 2014) (31 U.S.C. 3332).

Paragraph “c” applicable clauses:

(1) 52.222-41 Service Contract Labor Standards (AUG 2018)

(2) 52.222-42 Statement of Equivalent Rates for Federal Hires (MAY 2014) In compliance with the Service Contract Labor Standards statute and the regulations of the Secretary of Labor (29 CFR part 4), this clause identifies the classes of service employees expected to be employed under the contract and states the wages and fringe benefits payable to each if they were employed by the contracting agency subject to the provisions of 5 U.S.C. 5341 or 5332. This Statement is for Information Only: It is not a Wage Determination.

Employee Class: 14074 – Computer Programmer IV; Monetary Wage—Fringe Benefits: WG-10.

(4) 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards--Price Adjustment (Multiple Year and Option Contracts) (MAY 2014)

(7) 52.222-55 Minimum Wages Under Executive Order 13658 (NOV 2020)

(8) 52.222-62 Paid Sick Leave Under Executive Order 13706 (JAN 2017)

xiii. VAAR 852.212-70, Provisions and Clause Applicable to VA Acquisition of Commercial Items (April 2020), applies to this solicitation. The following provisions and clauses are selected as appropriate to this solicitation:

Paragraph “a” applicable clauses:

852.203-70 Commercial Advertising

Wage Determination 2015-5017 (Rev.18), dated 7/21/2021, is hereby incorporated by reference and made part of this solicitation. This wage determination is for services performed at the St. Louis location. The applicable wage determination can be found at SAM.gov

xiv. N/A

xv. N/A

xvi. Quotes are due no later than September 22, 2021 by 9 AM CDT.

xvii. For additional information, please contact the Contracting Officer, Tamara Feist-Hatfield at tamara.feist-hatfield@va.gov

INSTRUCTIONS FOR SUBMISSION OF QUOTE

THE PROCEDURES OF FAR SUBPART 8.4 ARE BEING USED TO CONDUCT THIS PROCUREMENT.

CONTRACTORS SHALL INCLUDE THE FOLLOWING INFORMATION IN THEIR QUOTE TO RECEIVE FULL CONSIDERATION FOR AWARD:

1. Offer Form (Standard Form 1449) – Fill in and sign Block 30a, and also provide acknowledgement of any solicitation amendments.

2. Pricing – Proposed pricing shall be submitted on the Price Schedule. Each quote must include an offer to provide all required goods and/or services.

3. Representations - Completed copy of the representations in 52.212-3 (unless already completed when registering at www.SAM.gov)

4. Quote – Offeror shall include in their quote the following information to demonstrate technical capability:

1. A narrative you provide addressing each of the following (label your narrative to match this list i.e. section 1a, 1b, 1c, etc.):

a) Identification of your firm’s key personnel and their experience (i.e. Junior, Journeyman, Senior, SME) and details of how the proposed effort will be assigned within your corporate entity to include level of effort and mix of labor.

b) Documentation demonstrating your firm’s experience with installation/upgrades of PACS/CCTV requirements.

c) Documentation illustrating if your firm is a preferred partner, an authorized distributor, participated in the dealer certification program or other specific training from said manufacturers of equipment/software required to upgrade the current system.

Quoter’s narrative will not exceed 5 pages with standard margins and 12 pt. font.

5. Evidence of Successful Past Performance

1. Identify any federal, state and local government contracts as well as any private/commercial contracts of similar scope, size, complexity that are ongoing or were completed with the past two years. Include the following information for each contract:

0. Company Name and address;

0. Types of services performed;

0. Name, telephone number or e-mail address of responsible individuals who have firsthand knowledge of performance relative to the same type of services;

0. Dates of contract performance and;

0. Total contract value.

1. Past performance information is one indicator of an offeror’s ability to perform the contract successfully. Current and relevant information, source of information, context of data, and general trends in Contractor’s performance shall be considered as it pertains to the performance of work described in this solicitation. Offerors may provide information on problems encountered on identified contracts and the offeror’s corrective action. The Government shall consider this information as well as information obtained from any other sources when evaluating the offeror’s past performance.

1. Offerors with no relevant past performance or whom information is not available, shall not be evaluated favorably or unfavorably on past performance. However, the quote of an offeror with no relevant past performance may not represent the most advantageous quote to the Government.

Statement of Work Access Control, CCTV System for St. Louis Regional Benefits Office

1.0 INTRODUCTION

The St. Louis Regional Benefits Office requires an upgrade to CCure software to version 2.8 or 2.9 for the USAccess PIV cards, this includes a new Innometriks Enrollment and FICAM High Assurance Authentication Software with new CCure Server PC and Innometriks ID Server PC to be acquired and installed at the St. Louis Regional Benefits Office, 9700 Page Avenue, St. Louis, MO 63132.

2.0 TECHNICAL SPECIFICATIONS

· CCure server PC and CCure software version 2.8 or 2.9

· Innometriks Enrollment ID Server PC and software

· FICAM High Assurance Authentication Software

· XE3 Optiplex, small form factor (SFF)

· Intel core i5-8500 processor, 4.1Ghz

· 16GB DDR4, 2666 MT/s

· M.2 256GB SATA Class 20 Solid State Drive

· Integrated Gigabit NIC

· NVIDIA Quadro P620 Graphics Card, 2GB GDDR5, 4x mini Display Port outputs with mDP adaptors to HDMI

· DVD-ROM

· USB Keyboard and Mouse

· Integrated Audio

· Windows 10 Professional, 64-bit

3.0 SCOPE OF WORK

The Contractor shall furnish and install the new Innometriks Enrollment and FICAM High Assurance Authentication Software and upgrade CCure to version 2.8 or 2.9, includes new CCure Server PC and Innometriks ID Server PC. New system is required to be compatible with the USAccess PIV Cards. Conversion to the new system will require all cardholders to be re-enrolled. VA to provide a new Enrollment Workstation computer meeting or exceeding the technical specifications. Enrollment workstation hardware to have all upgrades to current requirements and ready for software installation. New and existing hardware will need to be live on the network during the upgrade process. IP addressing will need to be changed after testing to put the new system into production. New ID server will require Internet access for High Assurance verification. Assistance from VA OIT staff will be required during deployment.

4.0 CONTRACTOR SHALL PROVIDE THE FOLLOWING

· Innometriks ID Server Software for FICAM High Assurance, Linux

· Innometriks High Assurance Software

· CCure Server and ID Server, Dell

· Software House Professional Services, On Site

· Software Professional Services, After Hours

· Software Professional Services, TAM Meetings/Documentation

· Prepare, stage, set up, configure, program, and test the system.

· Training preparation and documentation for VA, with 2-hour training session on updated program.

· Provide meetings, follow up/issue resolution for VA

· Provide monthly Windows updates

5.0 GOVERNMENT RESPONSIBILITIES

· Provide Enrollment Workstation hardware to be furnished and prepped.

· Provide utilization of the VA network. Routing, firewall, bandwidth, and other network issues outside of contractor control are assumed to be corrected within two hours per system. Issue resolution taking longer than 2 hours per system will result in Time and Material billing for all additional time.

· Provide regular backups of the systems configuration and cardholder database. Recovering or rebuilding lost data regardless of cause is considered a billable item.

· Provide all network connectivity and support as required.

· Provide all system power as required.

· Provide protection for PCs utilized under this contract with virus and firewall protection. Any service calls made as a result of a virus, worm, hacking or other disruption shall be considered billable.

6.0 WARRANTY

The Contractor shall activate all provided equipment warranties, commencing on the date of acceptance and shall warrant all workmanship for one year from the date of award. In addition, all Contractor supplied equipment shall be warranted for one year from award.

7.0 WORK HOURS

Normal Work Hours: St. Louis Regional Benefits Office hours of operation are 0800-1600 hrs. The Contractor may find it necessary to deviate from the normal base hours of operation, to ensure timely completion of work under this SOW at no additional cost to the government. The service schedule will be developed between the contractor and Contractor’s Representative (COR) prior to any service being performed.

Holidays: If these holidays fall on Saturday, the preceding Friday will be observed. If these holidays fall on Sunday, the following Monday will be observed. If a holiday falls on a scheduled service day, the Contractor will be responsible for rescheduling services for the first day post the holiday observance.

New Year’s Day - 1 January Martin Luther King Day - 3rd Monday in January Washington’s Birthday - 3rd Monday in February Memorial Day - last Monday in May Independence Day - 4 July Labor Day - 1st Monday in September Columbus Day - 2nd Monday in October Veteran’s Day - 11 November Thanksgiving Day - 4th Thursday in November Christmas Day - 25 December

8.0 GENERAL INFORMATION

Traffic Laws. The Contractor and its employees shall comply with federal, local and VA traffic regulations.

Weapons, Firearms, and Ammunition. Contractor employees are prohibited from possessing weapons, firearms, or ammunition, on themselves or within their Contractor-owned or privately-owned vehicle while on VASNHS.

Physical Security. The Contractor shall be responsible for safeguarding all government property and controlled forms provided for Contractor use. At the end of each work period, all government facilities, equipment, and materials shall be secured.

Parking Policy. It is the responsibility of Contractor personnel to park only in designated parking areas. Parking information is available from the VA Police. The VA will not validate or make reimbursement for parking violations of the Contractor’s personnel under any circumstances.

Smoking Policy. Smoking is permitted only in designated areas on VA grounds and is strictly prohibited within VA buildings.

9.0 TRAINING

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

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

(b) Successfully complete the VA Cyber Security Awareness and Rules of Behavior training and annually complete required security training

(c) Successfully complete the appropriate VA privacy training and annually complete required privacy training; and

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

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

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

VA HANDBOOK 6500.6 APPENDIX C

VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY LANGUAGE FOR INCLUSION INTO CONTRACTS, AS APPROPRIATE

1. GENERAL

Contractors, contractor personnel, subcontractors, and subcontractor personnel shall be subject to the same Federal laws, regulations, standards, and VA Directives and Handbooks as VA and VA personnel regarding information and information system security.

2. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

a. A contractor/subcontractor shall request logical (technical) or physical access to VA information and VA information systems for their employees, subcontractors, and affiliates only to the extent necessary to perform the services specified in the contract, agreement, or task order.

b. All contractors, subcontractors, and third-party servicers and associates working with VA information are subject to the same investigative requirements as those of VA appointees or employees who have access to the same types of information. The level and process of background security investigations for contractors must be in accordance with VA Directive and Handbook 0710, Personnel Suitability and Security Program. The Office for Operations, Security, and Preparedness is responsible for these policies and procedures.

c. Contract personnel who require access to national security programs must have a valid security clearance. National Industrial Security Program (NISP) was established by Executive Order 12829 to ensure that cleared U.S. defense industry contract personnel safeguard the classified information in their possession while performing work on contracts, programs, bids, or research and development efforts. The Department of Veterans Affairs does not have a Memorandum of Agreement with Defense Security Service (DSS). Verification of a Security Clearance must be processed through the Special Security Officer located in the Planning and National Security Service within the Office of Operations, Security, and Preparedness.

d. Custom software development and outsourced operations must be located in the U.S. to the maximum extent practical. If such services are proposed to be performed abroad and are not disallowed by other VA policy or mandates, the contractor/subcontractor must state where all non-U.S. services are provided and detail a security plan, deemed to be acceptable by VA, specifically to address mitigation of the resulting problems of communication, control, data protection, and so forth. Location within the U.S. may be an evaluation factor.

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

3. VA INFORMATION CUSTODIAL LANGUAGE

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

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

c. Prior to termination or completion of this contract, contractor/subcontractor must not destroy information received from VA, or gathered/created by the contractor in the course of performing this contract without prior written approval by the VA. Any data destruction done on behalf of VA by a contractor/subcontractor must be done in accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management and its Handbook 6300.1 Records Management Procedures, applicable VA Records Control Schedules, and VA Handbook 6500.1, Electronic Media Sanitization. Self-certification by the contractor that the data destruction requirements above have been met must be sent to the VA Contracting Officer within 30 days of termination of the contract.

d. The contractor/subcontractor must receive, gather, store, back up, maintain, use, disclose and dispose of VA information only in compliance with the terms of the contract and applicable Federal and VA information confidentiality and security laws, regulations and policies. If Federal or VA information confidentiality and security laws, regulations and policies become applicable to the VA information or information systems after execution of the contract, or if NIST issues or updates applicable FIPS or Special Publications (SP) after execution of this contract, the parties agree to negotiate in good faith to implement the information confidentiality and security laws, regulations and policies in this contract.

e. The contractor/subcontractor shall not make copies of VA information except as authorized and necessary to perform the terms of the agreement or to preserve electronic information stored on contractor/subcontractor electronic storage media for restoration in case any electronic equipment or data used by the contractor/subcontractor needs to be restored to an operating state. If copies are made for restoration purposes, after the restoration is complete, the copies must be appropriately destroyed.

f. If VA determines that the contractor has violated any of the information confidentiality, privacy, and security provisions of the contract, it shall be sufficient grounds for VA to withhold payment to the contractor or third party or terminate the contract for default or terminate for cause under Federal Acquisition Regulation (FAR) part 12.

g. If a VHA contract is terminated for cause, the associated BAA must also be terminated and appropriate actions taken in accordance with VHA Handbook 1600.01, Business Associate Agreements. Absent an agreement to use or disclose protected health information, there is no business associate relationship.

h. The contractor/subcontractor must store, transport, or transmit VA sensitive information in an encrypted form, using VA-approved encryption tools that are, at a minimum, FIPS 140-2 validated.

i. The contractor/subcontractor’s firewall and Web services security controls, if applicable, shall meet or exceed VA’s minimum requirements. VA Configuration Guidelines are available upon request.

j. Except for uses and disclosures of VA information authorized by this contract for performance of the contract, the contractor/subcontractor may use and disclose VA information only in two other situations: (i) in response to a qualifying order of a court of competent jurisdiction, or (ii) with VA’s prior written approval. The contractor/subcontractor must refer all requests for, demands for production of, or inquiries about, VA information and information systems to the VA contracting officer for response.

k. Notwithstanding the provision above, the contractor/subcontractor shall not release VA records protected by Title 38 U.S.C. 5705, confidentiality of medical quality assurance records and/or Title 38 U.S.C. 7332, confidentiality of certain health records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse, or infection with human immunodeficiency virus. If the contractor/subcontractor is in receipt of a court order or other requests for the above mentioned information, that contractor/subcontractor shall immediately refer such court orders or other requests to the VA contracting officer for response.

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

4. INFORMATION SYSTEM DESIGN AND DEVELOPMENT

a. Information systems that are designed or developed for or on behalf of VA at non-VA facilities shall comply with all VA directives developed in accordance with FISMA, HIPAA, NIST, and related VA security and privacy control requirements for Federal information systems. This includes standards for the protection of electronic PHI, outlined in 45 C.F.R. Part 164, Subpart C, information and system security categorization level designations in accordance with FIPS 199 and FIPS 200 with implementation of all baseline security controls commensurate with the FIPS 199 system security categorization (reference Appendix D of VA Handbook 6500, VA Information Security Program). During the development cycle a Privacy Impact Assessment (PIA) must be completed, provided to the COTR, and approved by the VA Privacy Service in accordance with Directive 6507, VA Privacy Impact Assessment.

b. The contractor/subcontractor shall certify to the COTR that applications are fully functional and operate correctly as intended on systems using the VA Federal Desktop Core Configuration (FDCC), and the common security configuration guidelines provided by NIST or the VA. This includes Internet Explorer 7 configured to operate on Windows XP and Vista (in Protected Mode on Vista) and future versions, as required.

c. The standard installation, operation, maintenance, updating, and patching of software shall not alter the configuration settings from the VA approved and FDCC configuration. Information technology staff must also use the Windows Installer Service for installation to the default “program files” directory and silently install and uninstall.

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

e. The security controls must be designed, developed, approved by VA, and implemented in accordance with the provisions of VA security system development life cycle as outlined in NIST Special Publication 800-37, Guide for Applying the Risk Management Framework to Federal Information Systems, VA Handbook 6500, Information Security Program and VA Handbook 6500.5, Incorporating Security and Privacy in System Development Lifecycle.

f. The contractor/subcontractor is required to design, develop, or operate a System of Records Notice (SOR) on individuals to accomplish an agency function subject to the Privacy Act of 1974, (as amended), Public Law 93-579, December 31, 1974 (5 U.S.C. 552a) and applicable agency regulations. Violation of the Privacy Act may involve the imposition of criminal and civil penalties.

g. The contractor/subcontractor agrees to:

(1) Comply with the Privacy Act of 1974 (the Act) and the agency rules and regulations issued under the Act in the design, development, or operation of any system of records on individuals to accomplish an agency function when the contract specifically identifies:

(a) The Systems of Records (SOR); and

(b) The design, development, or operation work that the contractor/subcontractor is to perform;

(2) Include the Privacy Act notification contained in this contract in every solicitation and resulting subcontract and in every subcontract awarded without a solicitation, when the work statement in the proposed subcontract requires the redesign, development, or operation of a SOR on individuals that is subject to the Privacy Act; and

(3) Include this Privacy Act clause, including this subparagraph (3), in all subcontracts awarded under this contract which requires the design, development, or operation of such a SOR.

h. In the event of violations of the Act, a civil action may be brought against the agency involved when the violation concerns the design, development, or operation of a SOR on individuals to accomplish an agency function, and criminal penalties may be imposed upon the officers or employees of the agency when the violation concerns the operation of a SOR on individuals to accomplish an agency function. For purposes of the Act, when the contract is for the operation of a SOR on individuals to accomplish an agency function, the contractor/subcontractor is considered to be an employee of the agency.

(1) “Operation of a System of Records” means performance of any of the activities associated with maintaining the SOR, including the collection, use, maintenance, and dissemination of records.

(2) “Record” means any item, collection, or grouping of information about an individual that is maintained by an agency, including, but not limited to, education, financial transactions, medical history, and criminal or employment history and contains the person’s name, or identifying number, symbol, or any other identifying particular assigned to the individual, such as a fingerprint or voiceprint, or a photograph.

(3) “System of Records” means a group of any records under the control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual.

i. The vendor shall ensure the security of all procured or developed systems and technologies, including their subcomponents (hereinafter referred to as “Systems”), throughout the life of this contract and any extension, warranty, or maintenance periods. This includes, but is not limited to workarounds, patches, hotfixes, upgrades, and any physical components (hereafter referred to as Security Fixes) which may be necessary to fix all security vulnerabilities published or known to the vendor anywhere in the Systems, including Operating Systems and firmware. The vendor shall ensure that Security Fixes shall not negatively impact the Systems.

j. The vendor shall notify VA within 24 hours of the discovery or disclosure of successful exploits of the vulnerability which can compromise the security of the Systems (including the confidentiality or integrity of its data and operations, or the availability of the system). Such issues shall be remediated as quickly as is practical, but in no event longer than seven (7) days.

k. When the Security Fixes involve installing third party patches (such as Microsoft OS patches or Adobe Acrobat), the vendor will provide written notice to the VA that the patch has been validated as not affecting the Systems within 10 working days. When the vendor is responsible for operations or maintenance of the Systems, they shall apply the Security Fixes within two (2) days.

l. All other vulnerabilities shall be remediated as specified in this paragraph in a timely manner based on risk, but within 60 days of discovery or disclosure. Exceptions to this paragraph (e.g. for the convenience of VA) shall only be granted with approval of the contracting officer and the VA Assistant Secretary for Office of Information and Technology.

5. INFORMATION SYSTEM HOSTING, OPERATION, MAINTENANCE, OR USE

a. For information systems that are hosted, operated, maintained, or used on behalf of VA at non-VA facilities, contractors/subcontractors are fully responsible and accountable for ensuring compliance with all HIPAA, Privacy Act, FISMA, NIST, FIPS, and VA security and privacy directives and handbooks. This includes conducting compliant risk assessments, routine vulnerability scanning, system patching and change management procedures, and the completion of an acceptable contingency plan for each system. The contractor’s security control procedures must be equivalent, to those procedures used to secure VA systems. A Privacy Impact Assessment (PIA) must also be provided to the COTR and approved by VA Privacy Service prior to operational approval. All external Internet connections to VA’s network involving VA information must be reviewed and approved by VA prior to implementation.

b. Adequate security controls for collecting, processing, transmitting, and storing of Personally Identifiable Information (PII), as determined by the VA Privacy Service, must be in place, tested, and approved by VA prior to hosting, operation, maintenance, or use of the information system, or systems by or on behalf of VA. These security controls are to be assessed and stated within the PIA and if these controls are determined not to be in place, or inadequate, a Plan of Action and Milestones (POA&M) must be submitted and approved prior to the collection of PII.

c. Outsourcing (contractor facility, contractor equipment or contractor staff) of systems or network operations, telecommunications services, or other managed services requires certification and accreditation (authorization) (C&A) of the contractor’s systems in accordance with VA Handbook 6500.3, Certification and Accreditation and/or the VA OCS Certification Program Office. Government-owned (government facility or government equipment) contractor-operated systems, third party or business partner networks require memorandums of understanding and interconnection agreements (MOU-ISA) which detail what data types are shared, who has access, and the appropriate level of security controls for all systems connected to VA networks.

d. The contractor/subcontractor’s system must adhere to all FISMA, FIPS, and NIST standards related to the annual FISMA security controls assessment and review and update the PIA. Any deficiencies noted during this assessment must be provided to the VA contracting officer and the ISO for entry into VA’s POA&M management process. The contractor/subcontractor must use VA’s POA&M process to document planned remedial actions to address any deficiencies in information security policies, procedures, and practices, and the completion of those activities. Security deficiencies must be corrected within the timeframes approved by the government. Contractor/subcontractor procedures are subject to periodic, unannounced assessments by VA officials, including the VA Office of Inspector General. The physical security aspects associated with contractor/subcontractor activities must also be subject to such assessments. If major changes to the system occur that may affect the privacy or security of the data or the system, the C&A of the system may need to be reviewed, retested and re-authorized per VA Handbook 6500.3. This may require reviewing and updating all of the documentation (PIA, System Security Plan, Contingency Plan). The Certification Program Office can provide guidance on whether a new C&A would be necessary.

e. The contractor/subcontractor must conduct an annual self assessment on all systems and outsourced services as required. Both hard copy and electronic copies of the assessment must be provided to the COTR. The government reserves the right to conduct such an assessment using government personnel or another contractor/subcontractor. The contractor/subcontractor must take appropriate and timely action (this can be specified in the contract) to correct or mitigate any weaknesses discovered during such testing, generally at no additional cost.

f. VA prohibits the installation and use of personally-owned or contractor/subcontractor-owned equipment or software on VA’s network. If non-VA owned equipment must be used to fulfill the requirements of a contract, it must be stated in the service agreement, SOW or contract. All of the security controls required for government furnished equipment (GFE) must be utilized in approved other equipment (OE) and must be funded by the owner of the equipment. All remote systems must be equipped with, and use, a VA-approved antivirus (AV) software and a personal (host-based or enclave based) firewall that is configured with a VA-approved configuration. Software must be kept current, including all critical updates and patches. Owners of approved OE are responsible for providing and maintaining the anti-viral software and the firewall on the non-VA owned OE.

g. All electronic storage media used on non-VA leased or non-VA owned IT equipment that is used to store, process, or access VA information must be handled in adherence with VA Handbook 6500.1, Electronic Media Sanitization upon: (i) completion or termination of the contract or (ii) disposal or return of the IT equipment by the contractor/subcontractor or any person acting on behalf of the contractor/subcontractor, whichever is earlier. Media (hard drives, optical disks, CDs, back-up tapes, etc.) used by the contractors/subcontractors that contain VA information must be returned to the VA for sanitization or destruction or the contractor/subcontractor must self-certify that the media has been disposed of per 6500.1 requirements. This must be completed within 30 days of termination of the contract.

h. Bio-Medical devices and other equipment or systems containing media (hard drives, optical disks, etc.) with VA sensitive information must not be returned to the vendor at the end of lease, for trade-in, or other purposes. The options are:

(1) Vendor must accept the system without the drive;

(2) VA’s initial medical device purchase includes a spare drive which must be installed in place of the original drive at time of turn-in; or

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

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

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

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

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

6. SECURITY INCIDENT INVESTIGATION

a. The term “security incident” means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures. The contractor/subcontractor shall immediately notify the COTR 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.