Compliance_Consultant_SOW_Final_Draft_June_2017.pdf

Statement of Work Criminal Division – Fraud Section

Draft - Compliance Consultant 6/5/2017

Introduction & Background

The Fraud Section (Section) within the Department of Justice (Department), Criminal Division (CRM), plays a unique and essential role in the Government’s fight against sophisticated economic crime. The Section is a front-line litigating unit that investigates and prosecutes complex white collar crime cases throughout the country. Based on its vast experience with sophisticated national and international fraud schemes, its expertise in managing complex and multi-district litigation, and its ability to deploy resources effectively to address law enforcement priorities and respond to geographically shifting crimes, the Section is uniquely qualified to act in that capacity. In addition to its direct litigation responsibilities, the Section plays a key role in formulating and implementing law enforcement policy on white-collar crime issues and provides guidance and assistance on a broad range of matters, both inside and outside the Government, involving corporate misconduct.

To meet its core mission of representing the Government in corporate fraud cases, the Section’s attorneys are regularly required to evaluate varied and sophisticated corporate compliance programs. For example, the United States Attorney’s Manual (USAM) requires prosecutors conducting corporate criminal investigations to consider “the existence and effectiveness of the corporation’s pre-existing compliance program” and “the corporation’s remedial actions, including any efforts to implement an effective corporate compliance programs or to improve an existing one . . . .” (See USAM §§ 9-28.300, 9-28.800, 9-28-1000). Understanding the effectiveness of a company’s compliance program is critical to properly applying these two factors that prosecutors must consider in determining whether to bring charges against a corporation and in exercising their discretion to enter a plea agreement, deferred prosecution agreement (DPA), or non-prosecution agreement (NPA) with a company.

In 2015, the Section retained its first compliance consulting firm (also referred to herein as Contractor or Compliance Consultant), who provided invaluable expertise from the private sector to permit our attorneys to better evaluate compliance programs. The Compliance Consultant assisted in the Section’s evaluation of all company presentations on compliance and remediation efforts, trained attorneys in the Section and in other components of the Department of Justice on compliance issues, worked with attorneys in selection and training of monitors, and assisted the Section in providing guidance to the public through assisting in the creation of a list of sample compliance questions asked to evaluate compliance programs. This is a follow-on requirement designed to further develop the Fraud Section’s compliance program which has been greatly improved upon with the assistance of a Compliance Consultant.

As with other experts retained by the Section, compliance professionals possess specialized training and experience to better enable us to do our jobs. Specifically, the Compliance Consultant has expertise in creating, reviewing, developing, and evaluating compliance programs designed to meet varied legal, regulatory, and corporate obligations. In order to better perform their official duties for the Department, the Section’s attorneys will continue to benefit from the assistance and support of a dedicated compliance professional with specialized skills and experience to assist the prosecutors in their evaluation of corporate compliance programs.

Scope of Work

To fulfill its mission, the Section seeks highly qualified compliance personnel with unique expertise to perform confidential consultant services to assist attorneys in the Section with regard to compliance-related issues, including, but not limited to, evaluating corporate compliance programs, developing compliance metrics, and assessing the effectiveness of compliance-focused remediation efforts. The compliance expertise provided will build on the excellent work of the existing Compliance Consultant as well as provide unique compliance expertise and insight to the Section’s attorneys. As with any expert we retain, the services provided will not include making any investigative, prosecutorial or policy decisions on behalf of the Fraud Section.

Tasks

The Compliance Consultant shall assist the Fraud Section with compliance-related matters. In that capacity, the Compliance Consultant will perform numerous confidential tasks, such as the following:

- The Compliance Consultant will assist the Fraud Section in assessing corporate compliance standards and compliance efforts of organizations. That assistance may include developing general criteria for the evaluation of any compliance program, as well as more tailored criteria to specific industries and the particular companies at issue.

- The Compliance Consultant will perform consultant services to attorneys in connection with, or in anticipation of, the Fraud Section’s litigation involving corporate compliance matters.

As a litigative consultant, the contractor will be considered as the subject matter expert (SME) in potential litigation or disputes involving the Government at any trial, hearing, or proceeding before any court, administrative tribunal, or agency related to corporate compliance matters. In this role, the Government may elect to require the Compliance Consultant to testify at any trial or hearing.

- The Compliance Consultant will assist the Fraud Section in evaluating whether an organization’s compliance program is effective and reasonable. The Compliance Consultant also will assist the Fraud Section in meetings with organizations that seek to establish successful, existing compliance programs, as well as compliance efforts by organizations seeking to demonstrate effective remediation.

- The Compliance Consultant shall assist the Fraud Section in working with compliance professionals to better understand the realities of compliance in the multitude of industries in which the corporate actors that appear before the Fraud Section function.

- The Compliance Consultant shall assist the Fraud Section in working with monitors appointed in Fraud Section cases to assist the Fraud Section in establishing and assessing an organization’s ongoing remediation efforts and in overseeing monitorships in its cases.

Minimum Qualifications

- Proven experience as a Chief Compliance Officer or related senior compliance position with significant control over day-to-day compliance programs within a multinational company.

- Possess a wide knowledge of state-of-the-art compliance programs and possess the ability to benchmark industries.

Desired Qualifications

- Proven compliance experience within the financial industry.

- Proven compliance experience within multiple industries (healthcare, financial services, insurance, etc.).

- Bar-certified lawyer.

Prohibition against Performing Personal Services

The performance of personal services under this contract is strictly prohibited.

A. Personal services contracting is described in FAR 37.104, Personal services contracts.

B. The Government and Contractor understand and agree that the services to be performed and delivered under this contract are non-personal services in nature; that no employer-employee relationship exists or will exist under the contract between the Government and Contractor, or any contractor employees, personnel, staff, subcontractor, or subcontractor employees, personnel, and/or staff.

C. Contractor and subcontractor employees, personnel, and/or staff performing under this contract shall not be placed in a position in which they are appointed or employed by a Federal employee; under the supervision, direction, or evaluation of a Federal employee; or on a Federal staff or in a policy-making position for the Department. Nevertheless, Contractor will be directed to assist and support the Section by the Section’s Chief or such other person(s) as the Section Chief delegates in order to ensure Contractor performs the services within this agreement.

D. The services to be performed under this contract do not require Contractor, subcontractor, or their employees, personnel, or staff to exercise personal judgment and discretion on behalf of the Government. Contractor understands and agrees that it will immediately advise the Procuring Contracting Officer (PCO), Administrative Contracting Officer (ACO), or Contracting Officer’s Representative (COR), if it believes that contractor or its employees are directed by any Government employee to perform work that Contractor believes constitutes personal service.

E. Contractor shall appoint a supervisor/manager who will be Contractor’s authorized representative for technical and administrative performance of all services required hereunder. If Contractor is a sole proprietor, the sole proprietor shall be considered Contractor’s authorized representative and supervisor/manager. The supervisor/manager shall provide the single point of contract through which all contractor/Government communications, work, and technical direction shall flow. The supervisor/manager shall receive and execute on behalf of contractor such technical direction as the COR may issue within the term and conditions of the contract.

Confidentiality of Data and Other Information

A. All communications between and among the Contractor, the Section’s attorneys and the Government and its agents shall be confidential and made solely for the purpose of assisting and supporting the Section in its mission. Absent express permission from the Section’s Chief or a delegate, the Contractor may not disclose to anyone the existence, nature, or content of any oral or written communication related in any manner to the Section’s work, before or after the contract termination. Duplication or disclosure of the data and other information to which Contractor will have access as a result of this contract is prohibited. The terms “Contractor” and “contract employee” in this clause include all entities and individuals that will perform under this contract, including Contractor, team member, subcontractor, consultant, and/or independent contractor. “Data and other information” in this context includes any information in whatever way transmitted about the cases, matters, or investigations on which the Contractor is working in the performance of this contract, including the names and subject matters of the cases or investigations. All contract employees who will have access to confidential data must sign a confidentiality agreement. It is the responsibility of Contractor to assure that such an agreement has been signed before access to confidential data is permitted.

B. Contractor agrees not to disclose or divulge any confidential information except to persons who (1) have a DOJ security approval and/or has Section Chief prior approval of any disclosure in Part A; (2) have signed the DOJ Non-Disclosure Agreement; and, (3) have a specific need to know its contents. All work papers, records, or other documents, regardless of their nature and the source from which they originated related to this engagement, shall be held by the Contractor solely for the Section’s benefit and subject to the Section’s unqualified right to instruct Contractor with respect to possession and control. Any documents or records prepared by Contractor or for Contractor will belong to the Government. It is further understood that throughout performance of this contract, Contractor will have access to confidential data which is either the sole property of the Government or is the sole property of other than the contracting parties. Contractor agrees to maintain the confidentiality of all data to which access may be gained throughout contract performance, whether title thereto vests in the Government or another entity.

C. Contractor agrees to not disclose said data, information, any interpretations and/or translations thereof, or information derivative therefrom, to unauthorized parties in contravention of these provisions, without the prior written approval of the PCO or ACO or the party in which title thereto is wholly vested. Contractor may be held responsible for any violations of confidentiality.

D. Contractor agrees that upon expiration or termination of the contract, Contractor has no property or possessory right to any of the correspondence, files or materials, of whatever kind and description, or any copies or duplicates of such, whether developed/prepared by contractor or furnished by the Government in connection with the performance of this contract; and that, upon expiration or termination of the contract, Contractor will surrender immediately to the COR all such items, matters, materials, and copies.

E. Contractor, the Section, and the Department intend that the work performed by Contractor will be covered by the attorney-client privilege, attorney work-product doctrine, the deliberative process privilege, and other applicable privileges, and understand that Contractor and its agents may be a necessary participant to privileged communications. Contractor and the Section will take all steps reasonably necessary to ensure that all documentation provided under this engagement be maintained in a confidential manner and that only authorized persons are privy to that documentation.

Deliverables

Various deliverables shall be required during the performance of this work, including but not limited to memoranda, written reports, recommendations, expert reports, court testimony, and other deliverables as required.

Government Furnished Property

Government-provided work space and various information technology equipment as required.

Security Provisions

The security provisions applicable to this requirement are listed by reference below and by full text located in Attachment 1 of this statement of work. These provisions shall apply to Contractor, and Contractor shall place these same provisions into to any subcontracts supporting this effort.

Attachments 1 Security Provisions:

• Contractor Personnel Security

• Systems Data Security and Personal Identifiable Information

Conflict of Interest

A. The Department will identify any partnership, corporation, or organization that is the subject of an investigation and/or party to litigation involving the United States and/or Agency of the United States for which Contractor may be requested to provide services under this agreement, and Contractor will inform the Contracting Officer as soon as practicable whether an organizational or personal conflict of interest exists, as described in Federal Acquisition Regulation (FAR) Subpart 9.5. Examples of a conflict include, but are not limited to:

(1) Where Contractor has interests, due to other activities or relationships with other organizations which place Contractor in a position that may be unsatisfactory or unfavorable from the Government’s point standpoint in being able to secure impartial, technically sound, objective assistant, support, and advice from Contractor; and,

(2) Where Contractor staff proposed to work under the contract has previously worked for, as an employee or contractor, the partnership, corporation, and/or other business entity, and/or any individual associated with any such partnership, corporation, and/or other business entity or if Contractor has a financial interest in the subject partnership, corporation, and/or other business entity and/or any individual associated with any such partnership, corporation, and/or other business entity.

Contractor agrees that if a conflict of interest exists, or if Contractor subsequently discovers that a conflict exists, Contractor shall make an immediate and full disclosure in writing to the Contracting Officer, which shall include a description of the action Contractor has taken or proposes to take to avoid, eliminate, or neutralize the conflict. If the Contracting Officer determines that no action of Contractor may avoid, eliminate, or neutralize the conflict, Contractor agrees that Contractor may not work on the matter.

Contractor agrees that he or she shall not enter into any employment, consultant, agency, attorney-client, auditing or other professional relationship with any partnership, corporation, or organization that is the subject of an investigation and/or party to litigation involving the United States and/or Agency of the United States for which Contractor provided services under this agreement for a period of one year after the contract terminates. Contractor further agrees to adhere to the rules of any state bar of which she is a member in connection with work performed pursuant to this contract. Contract personnel assigned to work under this agreement agree not to consult or provide services in any manner or capacity for, or on behalf of, a subject of investigation/defendant during the duration of this agreement unless express written authorization to do so is given by the Contracting Officer. A “subject of investigation/defendant” for purposes of this agreement is defined to include any partnership, corporation, and/or other business entity, and/or any individual associated with any such partnership, corporation, and/or other business entity, under investigation by, and/or a party to litigation involving, the United States and/or any Agency of the United States, including the Department of Justice.

Travel

Travel is required as part of this requirement and shall be conducted in accordance with the federal travel regulations (FTR). In particular, in achieving its mission of deterring corporate wrongdoing before it occurs and assisting prosecutors to evaluate corporate compliance programs, the Contractor may need to travel. We estimate that there may be up to 12 such trips in a year.

The anticipated travel costs, including hotel accommodations, associated with these 12 trips is estimated to be approximately $42,000. This estimation is based on approximately two international trips costing approximately $6,000 each and 10 domestic trips costing approximately $3,000 each.

Proprietary Rights

All proprietary rights with respect to the information, data and materials produced by Contractor in connection with this contract shall vest in the Government. Such information and materials include: reports, databases, plans, designs, procedures, recommendations and any other such physical or intellectual property. Contractor shall not publish or otherwise publicly provide any of the above without written approval by the contracting officer. This provision shall be placed into any subcontracts supporting this effort when a subcontract is entered into by the prime contractor and a subcontractor.

Non-Payment for Unauthorized Work

Any new or additional work performed by Contractor outside of the work defined herein, whether at Contractor’s own volition or at the request/direction of any individual other than the contracting officer or his/her designated representative as identified in this document, shall be at the sole financial risk of Contractor. Only a duly-appointed contracting officer is authorized to bind the Government to any addition to or change in the tasks, deliverables, duties, responsibilities, specifications, terms and/or conditions of this contract; and, only a duly appointed COR may provide technical direction with respect to those same tasks, deliverables, duties, responsibilities, specifications, terms and/or conditions.

Invoicing

All invoices shall be submitted electronically to CRM.Accounts.Payable@usdoj.gov as an original and one copy, and shall be addressed to the COR or Government Program/Administrative POC indicated in this contract. To constitute a proper invoice, the invoice shall include the following information and supporting documentation:

• Name of business

• Unique invoice number and date of invoice

• DUNS and Tax ID numbers

• Contract/Order number

• Description, price and quantity of services rendered or goods delivered

• Period that services billed hereunder were rendered or goods were delivered

• Payment terms

• Name, title, phone number and email of official to contact regarding invoice and payment matters.

Payment

Payment shall be made through ACH direct deposit only. Contractor shall complete an ACH Vendor/Miscellaneous Payment Enrollment Form which will be provided upon award. If Contractor’s ACH information changes, Contractor shall notify the contracting officer immediately. Partial payments for services rendered under this contract are authorized for mailto:CRM.Accounts.Payable@usdoj.gov services continuing longer than one month. Payment shall only be made after services have been rendered, received and accepted by the government. Payment will be made in accordance with the Prompt Payment Act.

Performance Period Location

The period of performance for this contract shall extend from the date of contract award for one year thereafter with an option to extend this agreement for an additional twelve-month period.

The majority of work shall be conducted in a government provided facility located at 1400 NY Ave NW, Washington, DC 20005.

Administrative Contacts

Contracting Officer’s Representative

Day-to-day communications and technical guidance under this contract shall be conducted between Contractor and the following contracting officer’s representative (COR). The COR understands his/her authorities and limitations and will coordinate with the contracting officer as needed.

COR: Barbara Newman Telephone Number: 202-353-7843 Email Address: barbara.newman@usdoj.gov

Contracting Officer

The contracting officer is the only person who can make any changes to this contract. The contractor may contact the contracting officer directly at any time should the need arise.

The Government contracting officer for this award/contract is:

Brandon Morrison Department of Justice, Criminal Division, Office of Procurement 1400 New York Avenue, Suite: 5428 Washington, D.C. 20530 Tel. 202-305-1207 Email Address: Brandon.Morrison@usdoj.gov

Attachment 1

SECTION VII. SECURITY PROVISIONS

CONTRACTOR PERSONNEL SECURITY REQUIREMENTS – UNCLASSIFIED

A. Contractor Personnel

1. The work to be performed under this contract will involve access to unclassified information and/or facilities. All references to “Contractor (or) personnel” and “Contractor employee” in this clause shall include all individuals that will perform under this contract including individuals employed by the Contractor, team members, subcontractors, consultants, and/or independent contractors.

2. All Contractor personnel will be subject to a Public Trust Investigation (PTI). Except where specifically noted otherwise, the Government will be responsible for conducting the investigation and the cost of the investigation. All investigations will be conducted in accordance with applicable Executive Orders, DOJ Orders, Office of Personnel Management (OPM) guidance, Homeland Security Presidential Directive 12 (HSPD-12), and Federal Information Processing Standard Publication 201 (FIPS 201).

3. PTI certifications will be accepted from other Federal agencies provided the investigation performed by the other agency meets or exceeds DOJ requirements.

4. The Contractor will not be permitted to commence performance under this contract until a sufficient number of its personnel, as determined by the Contracting Officer’s Representative (COR) and Security Programs Manager (SPM), have received the requisite security approval.

5. During the life of the contract, the Contractor shall ensure that no contractor employee commences performance hereunder prior to receipt of a written authorization from the Contracting Officer, the COR or the SPM.

B. Access to Unclassified Information

1. Contractor personnel requiring access to unclassified information will fall under the following categories:

a) High Risk. High risk positions are those positions that have the potential for exceptionally serious impact on the integrity and efficiency of the DOJ and involve duties especially critical to the DOJ or a program mission with broad scope of policy or program authority.

b) Moderate Risk. Moderate risk positions are those positions that have the potential for moderate to serious impact on the integrity and efficiency of the DOJ. Duties involved are very important to the DOJ or program mission with significant program responsibility or delivery of services.

c) Low Risk. Low Risk positions are those positions that have limited potential for adversely affecting the national security operations of the Department.

C. Pre Appointment Background Investigations and Waivers

1. Background investigations must be conducted and favorably adjudicated for each contractor employee prior to commencing work on this contract. However, where programmatic needs do not permit the Government to wait for completion of the entire background investigation, a pre appointment background investigation waiver can be granted by the SPM, in consultation with the cognizant COR. The extent of the background investigation will vary depending upon the Risk Category associated with each position and whether each position is long- or short-term. Short-term is defined as contractor employees having access to Federally-controlled information systems and/or unescorted access to Federally-controlled facilities or space for six months or fewer. The requisite background investigation does not need to be initiated for short-term positions as part of the pre-employment waiver except in the case of non-U.S. citizen contractor employees. However, long-term contractor employees requiring unescorted access to Federally-controlled facilities and/or access to any Federally-controlled information system shall be subject to the requisite background investigations described below. A waiver will be disapproved if it develops derogatory information that cannot be resolved in the contractor employee’s favor. When a waiver has been disapproved, the COR, in consultation with the SPM, will determine (1) whether the contractor employee will no longer be considered for work on a DOJ contract or (2) whether to wait for the completion and favorable adjudication of the background investigation before the employee commences work on a Department contract. The minimum pre appointment investigative requirements are as follows:

a) High Risk Positions. The minimum background investigation required is a five year scope Background Investigation (BI), and the five year reinvestigation required is an Access National Agency Check with Inquiries (ANACI). The Standard Form (SF) 85P, Questionnaire for Public Trust Positions, is required.

b) Moderate Risk Positions. The minimum background investigation required is a Minimum Background Investigation (MBI) for “moderate” impact on the integrity and efficiency of the DOJ or a Limited Background Investigation (LBI) for “serious” impact potential on the DOJ’s integrity and efficiency. The five year reinvestigation required is a National Agency Check with Law and Credit (NACLC). The SF-85P is required.

c) Low Risk/Non-Sensitive Positions. The minimum background investigation required for Low Risk/Non-Sensitive positions is a National Agency Check with Written Inquiries (NACI) and the required five year reinvestigation is also a NACI. The SF-85, Questionnaire for Non-Sensitive Positions, is required.

2. The pre appointment background investigation waiver requirements include:

a) Favorable review of the security questionnaire form;

b) Favorable FBI fingerprint results;

c) Verification of citizenship (copy of a birth certificate, Naturalization Certificate, or U.S.

Passport);

d) Verification of compliance with the DOJ residency requirement;

e) Favorable credit report for contractor personnel in High Risk and Moderate Risk positions;

and,

f) Verification of the initiation of the appropriate background investigation for long-term

Contractor personnel.

D. Required Security Forms

1. The following forms must be completed and submitted by the Contractor’s Corporate Security Officer for each contract employee PTI:

a) FD-258 Applicant Fingerprint Card. Two sets are required per applicant. The Contractor may schedule appointments with the SPM to be digitally fingerprinted; otherwise, fingerprinting by the FBI is required. All pertinent information must be completed by the individual taking the prints, or by the FBI if prints are taken there.

b) SF-85 Questionnaire for Non-Sensitive Positions -or- SF-85P Questionnaire for Public Trust Positions. The contractor employee shall complete the SF-85/SF-85P via the Electronic Security Questionnaires for Investigations Processing (e-QIP) System after first obtaining access to e-QIP from the SPM (see paragraph (c) below). The Contractor shall also submit a hard copy of the form (as completed and signed by the contractor employee) with the remainder of the security package.

c) DOJ-555 Fair Credit Reporting Act Disclosure. Authorizes DOJ to obtain one or more consumer/credit reports on the individual. This is required for Contractor personnel in High Risk and Moderate Risk positions.

d) Foreign National Relatives and Associates Statement. This is only required if any relatives listed on the SF-85/SF-85P are foreign nationals.

d) Confidentiality Agreement for Contractor and Subcontractor Employee.

2. The Contractor shall also submit a credit report for each individual designated at the High Risk or Moderate Risk level, and have resolved satisfactorily any individual credit issues.

E. Using e-QIP Immediately after award, the Contractor shall designate an employee as its “e-QIP Initiator” and provide the name of this person to the COR. The e-QIP Initiator must have, at a minimum, a favorably adjudicated MBI and the appropriate DOJ security approval before being given access to e-QIP. After the e-QIP Initiator’s security approval is granted, the Contractor will be configured in e-QIP as a sub-agency to DOJ. The Contractor will then be responsible for initiating all contractor personnel in e-QIP for completion of the security questionnaire form and forwarding the electronic form along with a hard copy of the form (as completed and signed by the contractor employee) with the remainder of the security package to the designated DOJ representative. Subject to the prior approval of the SPM, the Contractor may designate an e-QIP Initiator for each subcontractor. Subcontractor e-QIP Initiators must have, at a minimum, a favorably adjudicated MBI and the appropriate DOJ security approval before being given access to e-QIP.

F. Citizenship and Residency Requirements

1. Residency Requirement. Contractor employees, both United States (U.S.) citizens and non-U.S.

citizens, must meet the Department’s Residency Requirement, i.e., he/she must have lived in the U.S. three of the last five years immediately prior to employment under the Department contract; and/or worked for the U.S. overseas in a Federal or military capacity; and/or be a dependent of a Federal or military employee serving overseas. At the Department’s sole discretion, the residency requirement may be waived by the Department Security Officer (DSO) on a case-by-case basis where justified by extenuating circumstances.

2. Citizenship. The DOJ gives strong priority to contractor employees that are U.S. citizens and nationals.

Any prospective contractor employee that is a foreign national must be from a country allied with the U.S. (See http://www.opm.gov/employ/html/Citizen.htm). At the Department’s sole discretion, a waiver of the allied nations list requirement may be granted by the DSO on a case-by-case basis where justified by extenuating circumstances.

The Contractor is responsible for verifying that all non-U.S. citizens working under this contract have been lawfully admitted to the U.S. Contractor employees requiring access to DOJ Information Technology (IT) resources are subject to the following additional restrictions:

Non-U.S. citizens are not authorized access to or permitted to assist in the development, operation, management or maintenance of DOJ IT systems unless a waiver has been granted by the Head of the DOJ component, with the concurrence of the DSO and the DOJ Chief Information Officer (CIO). Such a waiver will be granted only in exceptional and unique circumstances. It should be noted that the Justice Consolidated Office Network (JCON) is a sensitive “DOJ IT system” and any contractor employee that will need access to JCON must be a U.S. citizen or have received a waiver.

3. Dual Citizenship. U.S. citizens who hold dual citizenship with a foreign country may be considered for contract employment. However, how the contractor employee obtained or exercises his or her dual citizenship status will be a consideration in the adjudication process.

G. Procedures for Pre-Screening Applicants and Investigation

1. The Contractor shall perform the following pre-screening and investigation duties for all persons proposed for work under this contract:

a) Furnish to each proposed contract employee the forms described in Section D above and ensure that adequate instructions for completing the forms are provided to each applicant.

b) Ensure that applicants obtain two (2) complete sets of their fingerprints on the prescribed Form

FD-258 from an organization qualified to take fingerprints.

c) Collect completed forms from each applicant and review all forms for completeness and correctness. This includes, for example, satisfactory resolution of address issues or discrepancies.

Return any incomplete or incorrect form(s) to applicant(s) to be corrected and re-submitted.

d) Submit completed forms to the COR no later than fourteen (14) calendar days after receipt of the blank forms and access to e-QIP has been initiated.

e) As directed by the COR, initiate pre-appointment waivers for certain positions. This may entail performing credit history checks and submission of these checks as part of the security package, including satisfactory resolution of any issues prior to submission to the Government.

f) As directed by the COR, review all forms prior to their being submitted to DOJ to ensure that candidates meet DOJ requirements, including residency and citizenship requirements.

2. The Department will be responsible for the following:

a) Determine the appropriate risk level for each contract employee position.

b) Provide the Contractor an adequate supply of forms and instructions for completing the forms within five business days after award. Ensure that the Contractor is provided access to the e-QIP system as described in Section E above.

c) Ensure that completed security forms are forwarded to the appropriate investigating agency in accordance with appropriate internal procedures. The investigating agency will conduct the requisite investigations.

d) Determine whether pre-appointment background investigation waivers will be needed, and if so, which positions will require such waivers. The COR will notify the Contractor which pre-appointment waivers to initiate.

e) Notify the Contractor of the results of background investigations as they are completed and adjudicated. The COR will notify the Contractor of any applicants who are found ineligible for employment security approval so that the Contractor can immediately recruit and initiate paperwork to clear replacement applicants.

f) Notify the Contracting Officer when a sufficient number of contractor employees have received employment security approvals or pre-appointment waivers approvals. Upon receipt of this information and any other information which may be required elsewhere in the contract, the Contracting Officer will issue the Contractor a Notice to Proceed which permits the commencement of work under the contract.

g) Maintain an up-to-date file of Certificates of Investigation (COI) and other background investigation-related documentation for all contractor employees throughout the life of the contract.

3. The investigating agency will furnish the relevant SPM the results of each proposed employees investigation through issuance of a Certificate of Investigation (COI). Upon receipt of the COI and any other pertinent documents from the investigating agency, the SPM will determine whether or not each proposed contractor employee should be granted employment security approval. This decision process is called Aadjudication. The SPM will notify, if required, the investigating agency of the adjudicative determination of each investigation. If OPM is the investigating agency, this will be accomplished by the SPM completing and submitting to OPM an INV Form 79A, AReport of Agency Adjudicative Action.

H. Identity Proofing and Badging.

1. During the life of this contract, the right to unescorted access to Federally-controlled facilities and/or access to Federally-controlled information systems shall be made available after the contractor employees have (1) met the identity proofing requirements outlined below, and (2) completed all other security requirements stated elsewhere in this contract. During all operations on Government premises, the contractor employees shall comply with the rules and regulations governing the conduct of personnel and the operation of the facility. The Government reserves the right to require contractor employees to "sign-in" upon entry and "sign-out" upon departure from the DOJ facility.

2. All contractor employees requiring unescorted access to Federally-controlled facilities and/or access to Federally-controlled information systems (regardless of whether they will be issued a DOJ badge), shall comply with the identity proofing and registration requirements outlined below:

a) Contractor employees must present two forms of identification in original form prior to commencement of work under this contract and badge issuance (acceptable documents are listed in Form I-9, OMB No. 1615-0047, “Employment Eligibility Verification,” and at least one document must be a valid State or Federal government issued picture ID); and,

b) Contractor employees must appear in person at least once before a COR-designated DOJ official who is responsible for checking the identification documents. This identity proofing must be completed prior to commencement of work under this contract and badge issuance (as applicable), and must be documented by the DOJ official.

3. All contractor employees requiring unescorted access to a DOJ controlled facility shall comply with the badge requirements outlined below:

a) When any Contractor employees enter a DOJ building for the first time, the contractor employees shall allow one hour for security processing and the fabrication of buildings access badges.

b) Building access badges shall be subject to periodic review by the Contractor's Supervisor and checked against the employee's personal identification. The contractor employees shall present themselves for the issuance of renewed badges when required by the Government as scheduled by the Project Manager or his designee. The Contractor shall notify the COR when employee badges are lost, and must immediately apply for reissuance of a replacement badge. The Contractor shall pay for reissued building access badges. It is the Contractor's responsibility to return badges to the COR when a contractor employee is dismissed, terminated or assigned to duties not within the scope of this contract.

I. Replacement Personnel

1. Security investigations are very costly to the Government. The Contractor shall make every effort to preclude incurrence of costs by the Government for security investigations for replacement of employees, and in so doing, shall assure that otherwise satisfactory and physically able employees assigned hereunder remain in contract performance for at least one (1) year. The Contractor shall take all necessary steps to assure that Contractor personnel who are selected for assignment to this contract are professionally qualified and personally reliable, of reputable background and sound character, and meet all other requirements stipulated herein.

2. The fact that the Government performs security investigations shall not in any manner relieve the Contractor of its responsibility to assure that all personnel furnished are reliable and of reputable background and sound character. Should a security investigation conducted by the Government render ineligible a Contractor furnished employee, the Contracting Officer will investigate the cause and determine whether the Contractor has abdicated its responsibilities to make every effort to select reliable employees of reputable background and sound character? Should there be need to replace a contractor employee due to nonperformance, the Contracting Officer will determine whether the Contractor has abdicated its responsibilities to make every effort to select trained and experienced employees.

3. Should the Contracting Officer determine that the Contractor has failed to comply with the terms of Section G.1, the Contractor may be held monetarily responsible, at a minimum, for all reasonable and necessary costs incurred by the Government to (a) provide coverage (performance) through assignment of individuals employed by the Government or third parties in those cases where absence of Contractor personnel would cause either a security threat or DOJ program disruption and (b) conduct security investigations in excess of those which would otherwise be required.

4. Nothing in this Clause shall require the Contractor to bear costs involved in the conduct of security investigations for replacement of an employee who becomes deceased or severely ill for a long period of time.

5. Acceptance by the Government of consideration to which the Government may be entitled pursuant to paragraph (c) above shall not be construed to establish a course of conduct which will serve to limit the rights and remedies otherwise available to the Government. Under no circumstances shall the Contractor fail to comply with the terms and conditions set forth herein without assuming liability for such failure as may be established pursuant to this Clause. The rights and remedies conferred upon the Government by this Clause are in addition to all and other rights and remedies specified elsewhere in this contract or established by law.

J. Automation Equipment and Media Neutral Materials

1. Media Neutral Materials: At the conclusion of the contract period, all media neutral materials used in conjunction with this contract shall be turned over to the COR for destruction and/or proper retention, in accordance with the Federal Records Act 44 U.S.C. Chapter 33 and DOJ records retention schedules. This includes not only paper records, but also all removable, "consumable" media such as floppy disks, magnetic tapes, typewriter ribbons, CD-ROMs, DAT tapes, etc. Any of these media neutral materials that become defective during contract performance shall be immediately turned over to the COR for destruction and/or retention. The Government shall not compensate the Contractor for the costs of these media neutral materials.

2. Other Electronic Media: At the conclusion of the contract period, the Contractor shall sanitize all other electronic media which has been used in connection with contract work, such as PC hard drives and memory, network server hard drives and memory, etc. according to DOJ approved procedures. For example, the Government will require the Contractor to degauss all such electronic media, or to write over the electronic media a specified number of times (e.g., five times using software such as Norton Disk Wipe). The Contractor shall also provide itemized certification that the degaussing has been completed for all equipment used in connection with the contract. If the Contractor is unable to degauss or sanitize the electronic media to the satisfaction of the SPM, the Contractor shall turn the electronic media over to the COR for destruction. The Government shall not compensate the Contractor for the cost of this effort.

3. Defective Equipment, Electronic Media or Materials: If any PCs, hard drives, memory, servers, etc.

used in connection with the contract become defective during the contract performance period, the Contractor shall either turn the electronic media over to the Government for destruction, or sanitize the electronic media in accordance with Government approved procedures and certify the sanitization. This also applies, of course, to equipment/media the Contractor chooses to sell or dispose of for other reasons. The Government shall not compensate the Contractor for the cost of this effort.

4. Inspection: The Government reserves the right to inspect any equipment/media neutral certified by the

Contractor as having been degaussed or sanitized.

5. Maintenance and/or Removal of Equipment: The Contractor shall ensure that sensitive information does not remain on the electronic storage media, including hard disks and floppy disks, when the PC is removed from the Contractor's area for maintenance or other use. Maintenance personnel shall be escorted and monitored by COR-designated Department of Justice Personnel or Contractor personnel when allowed to perform on-site maintenance for the equipment. The electronic storage media shall be removed from the PC prior to removal of the PC from the area for maintenance.

6. Special Marking: Any removable electronic storage media shall be appropriately marked with classification level.

K. Data Communications

1. The Contractor shall be responsible for ensuring the security of all data transmitted internally (e.g., within and between Contractor facilities) and data transmitted externally between the Contractor, its subcontractors, government personnel or any other entities. For transmission of sensitive, non-classified data, the COR may require the data to be encrypted in compliance with Federal Information Processing Standard (FIPS) 46-3, Data Encryption Standard (DES) and "Security Level 1" of FIPS 140-2, Security Requirements for Cryptographic Modules, or their successors.

2. All encryption devices shall be made available for inspection upon initial award of a contract and semiannually or as otherwise directed by the SPM or COR.

L. Confidentiality of Data

1. Duplication or disclosure of the data and other information to which the Contractor will have access as a result of this contract is prohibited by Public Law and is subject to criminal penalties. The terms “Contractor” and “Contractor employee” in this clause include all entities and individuals that will perform under this contract, including the Contractor, team member, subcontractor, consultant, and/or independent Contractor. It is understood that throughout performance of this contract, the Contractor will have access to confidential data which is either the sole property of the Department of Justice or is the sole property of other than the contracting parties. The Contractor shall maintain the confidentiality of all data to which access may be gained throughout contract performance, whether title thereto vests in the Department of Justice or otherwise. “Data” in this context shall also include any information about cases or investigations the Contractor is working on, or otherwise has such information on or access to, including the names and subject matters of the cases or investigations. The Contractor shall not disclose or divulge any such information to anyone except to persons who have been approved by the COR and who meet all the following criteria:

Have DOJ/CRM security approval, Have Signed the DOJ Non-Disclosure Agreement Have a need to know.

2. This limitation specifically applies to the Contractor’s management chain.

a) The Contractor shall not disclose said data, any interpretations and/or translations thereof, or data derivative there from, to unauthorized parties in contravention of these provisions, without the prior written approval of the COR or the party in which title thereto is wholly vested. The Contractor may be held responsible for any violations of confidentiality.

b) Upon termination of the contract, the Contractor shall not have nor claim any property or possessory right to any of the correspondence, files or materials, of whatever kind and description, or any copies or duplicates of such, whether developed/prepared by the Contractor or furnished by the Government in connection with the performance of this contract; and that, upon demand, the Contractor shall surrender immediately to the COR all such items, matters, materials and copies.

c) All contractor employees who will have access to confidential data shall sign a Confidentiality Agreement. It is the responsibility of the Contractor to assure that such Agreements have been signed before access to confidential data is permitted.

SECURITY OF SYSTEMS AND DATA INCLUDING PERSONALLY IDENTIFIABLE DATA

A. Systems Security

1. The work to be performed under this contract requires the handling of data that originated within the Department, data that the Contractor manages or acquires for the Department, and/or data that is acquired in order to perform the contract and concerns Department programs or personnel.

2. For all systems handling such data, the Contractor shall comply with all security requirements applicable to Department of Justice systems, including but not limited to all Executive Branch system security requirements (e.g., requirements imposed by OMB and NIST), DOJ IT Security Standards, and DOJ Order 2640.2E.

The Contractor shall provide DOJ access to and information regarding the Contractor’s systems when requested by the Department in connection with its efforts to ensure compliance with all such security requirements, and shall otherwise cooperate with the Department in such efforts. DOJ access shall include independent validation testing of controls, system penetration testing by DOJ, FISMA data reviews, and access by the DOJ Office of the Inspector General for its reviews.

3. The use of Contractor-owned…