FISMA.pdf

Cybersecurity, Cyber Threat Response and Remedia�on June 2024 1

FISMA Cybersecurity Requirements Language

Incorporate FISMA Cybersecurity Requirements language in all solicita�ons and delivery/task order contracts (Sec�on C or H) when procuring informa�on technology systems, applica�ons, or services.

Informa�on Systems and Informa�on Security Controls for Contrac�ng Ac�ons Subject to Federal Informa�on Security Moderniza�on Act (FISMA) and Federal Risk and Authoriza�on Management Program (FedRAMP)

In performance of this contract, the contractor agrees to comply with the following cybersecurity requirements and assumes responsibility for compliance by its personnel and subcontractors (and their personnel):

1. General. The contractor shall ensure IRS informa�on and informa�on systems are always protected. The contractor shall develop, implement, and maintain effec�ve controls and methodologies in its business processes, physical environments, and human capital or personnel prac�ces that meet or otherwise adhere to the security and privacy controls, requirements, and objec�ves described in applicable security and privacy control guidelines, and their respec�ve contracts. Pursuant to the Federal Informa�on Security Moderniza�on Act (FISMA) and Federal Risk and Authoriza�on Management Program (FedRAMP), the contractor shall provide minimum security controls required to protect Federal informa�on and informa�on systems in accordance with the Internal Revenue Manual (IRM) Part 10.8 series and the current version of Na�onal Ins�tute of Standards and Technology (NIST) Special Publica�on (SP) 800-53, Security Privacy Controls for Informa�on Systems and Organiza�ons.

2. Business En�tlement Access Request System (BEARS) /En�tlement - Role-based user permission groups. The contractor shall ensure all applica�ons and pla�orms integrate with the IRS to establish least privilege BEARS en�tlements for all roles that prevent any one role from authorizing a transac�on from end to end.

3. Privileged User Management and Access System (PUMAS). The contractor shall ensure all applica�ons and pla�orms integrate with the IRS’s PUMAS to secure, provision, manage, control, and monitor all ac�vi�es associated with all types of privileged iden��es to include, but not limited to, privileged user accounts, service accounts, and secrets management for on-premises and cloud-based applica�ons and infrastructure.

4. Log Management and Enterprise Security Audit Trails (ESAT). The contractor shall ensure systems provide audit trails in an approved automated format acceptable to the IRS for all user ac�ons and ac�vi�es when using or maintaining the system. In accordance with NIST 800-53 Audit and Accountability (AU) controls, applica�ons and pla�orms shall integrate with ESAT for audit logging to support organiza�on-wide analysis and correla�on for situa�onal awareness.

The contractor shall provide to the IRS to be used in accordance with OMB Memo 21-31, the system logs for both services implemented on servers within the authorization boundary and services deployed on Cloud Service Offerings. The contractor shall collect and maintain network

Cybersecurity, Cyber Threat Response and Remedia�on June 2024 2 and system logs on Federal Information Systems for both on-premises systems and connections hosted by third parties, and when it is necessary to address a cyber incident on Federal Civilian Execu�ve Branch Information Systems.

5. Federated Authen�ca�on Services Technology (FAST)/Homeland Security Presiden�al Direc�ve 12 (HSPD-12) Compliant Authen�ca�on. The contractor shall ensure the system enforces the use of phishing resistant, modern mul�factor authen�ca�on (MFA) compliant with Treasury, Federal and HSPD-12 Policy/Guidance. Use of MFA shall be at the exclusion of all other authen�ca�on methods i.e., username and password.

The contractor shall support a secure, multi-factor method of remote authentication and authorization to identified IRS Administrators that will allow IRS designated personnel the ability to perform management duties on the system. The contractor shall support MFA including phishing resistant MFA (e.g., Fast Identity Online/Web Authentication and public key infrastructure (PKI)) as required by Office of Management and Budget (OMB) Memo 22-09. The contractor shall support a secure, multi-factor method of remote authentication and authorization to identified contractor administrators that will allow contractor designated personnel the ability to perform management duties on the system.

Use of federated MFA may be leveraged by adop�ng one or more of the following Treasury/IRS Enterprise Services:

i. Secure Access Digital Iden�ty (SADI) for authen�ca�ng external users.

ii. IRS Ac�ve Directory Federa�on Services (ADFS) for internal IRS users

iii. Common Access Iden�ty Assurance (CAIA)/Treasury Enterprise Authen�ca�on

Service (TEAS) in support of all Treasury

6. Cryptography Key Establishment and Management (System and Communica�ons Protec�on

(SC-12)). The contractor shall establish and manage cryptographic keys for required cryptography employed within the informa�on system in accordance with centralized management of key genera�on, distribu�on, storage, access, and destruc�on in accordance with NIST SP 800-57, Recommenda�on for Key Management.

7. Data-at-Rest and Data-in-Motion Encryption of all IRS Data. The contractor shall ensure all applica�ons encrypt data at rest (per NIST 800-53, latest revision, SC-28) and data in transit (per NIST 800-53, latest revision, SC-9). SC-28 and SC-9 must pass all objec�ve criteria stated in NIST 800-53. In addi�on, the encryp�on solu�on must meet or exceed all Federal Informa�on Processing Standards (FIPS) 140 standards. All web traffic will enforce Hypertext Transfer Protocol (HTTPS) Secure Sockets Layer/Transport Layer Security (SSL/TLS) protocols.

8. Data Jurisdic�on. The contractor and subcontractors shall iden�fy all data centers that the data at rest or data backup will reside. All data will be guaranteed to reside (and transit) within the United States (or U.S. territories).

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9. Non-repudia�on. The contractor shall ensure the sender of informa�on is provided with proof of delivery, and the recipient is provided with proof of the sender’s iden�ty. The IRS uses digital cer�ficates to confirm the iden�ty of Internet users sending x.509 standard encrypted informa�on, to verify the integrity and origin of file contents. The contractor shall agree to install United States Treasury TLS site cer�ficates for the purpose of authen�ca�ng traffic between the contractor applica�on and the IRS. The use of SSL or TLS to facilitate arbitrary transmission control protocol (TCP) and user datagram protocol (UDP) or other protocols (effec�vely, anything other than HTTP) inside the encrypted TLS tunnel between an internal IRS client and an external server cannot be used. Site-to-site virtual private network (VPN) or internet protocol security (IPsec) can be used as long as there are verifiable controls to ensure that the vendor end of that tunnel is an environment that is a closed environment. That is, the environment must be isolated at the network layer from other customers services by the offeror and does not provide for communica�ons to other services (e.g., a gateway or rou�ng service to endpoints outside of the control of the vendor submi�ng the proposal, etc.).

10. Media Transport. The contractor shall document activities associated with the transport of IRS agency information stored on digital and non-digital media and employ cryptographic mechanisms to protect the confidentiality and integrity of this information during transport outside of controlled areas. The contractor shall ensure all digital media, containing IRS information, that is transported outside of controlled areas must be encrypted using FIPS 140-2 level 2, FIPS 140-3 or National Security Agency (NSA) approved cryptography; nondigital media must be secured using the same policies and procedures as paper. The contractor shall ensure media, containing IRS information that is transported outside of controlled areas must ensure accountability. This can be accomplished through appropriate actions such as logging and a documented chain of custody form. IRS data that resides on mobile/portable devices (e.g., USB flash drives, external hard drives, and SD cards) must be encrypted. All IRS data residing on laptop computing devices must be protected with NIST-approved encryption software.

11. Boundary Protection. The contractor shall ensure that IRS information, other than unrestricted information, being transmitted from Federal government entities to external entities using cloud services is inspected by Trusted Internet Connections (TIC) processes, or the contractor shall route all external connections through a TIC in accordance with OMB Memo 19-26.

12. Security Alerts, Advisories, and Directives. The contractor, subcontractor or cloud service provider shall provide a list of personnel, iden�fied by role, with system administra�on, monitoring, and/or security responsibili�es who shall receive security alerts, advisories, and direc�ves.

13. Developer Security Testing and Evaluation. The contractor shall provide the IRS with all test plans and test results developed under IRS IRM 10.8.24.3.15.9 (SA-11: Developer Security Testing and Evaluation) at least 30 days prior to the release of any new code, settings, enhancement(s) or deprecation of features.

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14. So�ware Bill of Materials (SBOM)/Attestation. The contractor shall provide a software build/bill of materials, and attestation in accordance with OMB Memo 22-18 using CISA templates. https://www.cisa.gov/sbom

15. RA-05 Vulnerability Mi�ga�on. Per Binding Opera�onal Direc�ve (BOD) 22-01, the contractor shall ensure the applica�on or system at the �me of the Authority to Opera�on (ATO) must not contain any vulnerability listed in the Cybersecurity & Infrastructure Security Agency (CISA) Known Exploited Vulnerabili�es Catalog whose CISA remedia�on due date has been exceeded.

16. Vulnerability Monitoring and Scanning. Vulnerability monitoring includes scanning for patch levels;

scanning for func�ons, ports, protocols, and services that should not be accessible to users or devices; and scanning for flow control mechanisms that are improperly configured or opera�ng incorrectly. The contractor shall implement vulnerability scanning as defined by IRS IT Security Policy and NIST requirements to include NIST SP 800-70.

The contractor shall, monitor and scan for vulnerabili�es in the system and hosted applica�ons using vulnerability monitoring tools and techniques, and when new vulnerabili�es poten�ally affec�ng the system are iden�fied and reported, perform analysis and remedia�on ac�vi�es.

The contractor will provide an environment that adheres to NIST SP 800-207 Zero Trust Architecture and CISA Binding Opera�onal Direc�ves. Non-compliant condi�ons are unacceptable for new technologies and cannot be remediated via a Risk Based Decision (RBD) or Risk Acceptance Form and Tool (RAFT). Non-compliance discovered in exis�ng so�ware (SW) or hardware (HW) will result in SW or HW being placed into quaran�ne un�l non-compliance issues are remediated to the sa�sfac�on of the government.

If approved for exis�ng SW or HW, the contractor shall create a plan of ac�ons and milestones Plan of Ac�ons and Milestones (POA&Ms) to iden�fy and track remedia�on of the iden�fied risks/vulnerabili�es for any vulnerabili�es iden�fied that cannot be remediated within 30 days.

The contractor shall report POA&Ms progress to the government as requested and at minimum monthly. The affected SW and HW shall remain in quaran�ne un�l such �me the government is sa�sfied the remedia�on ac�on/s have raised the level of compliance to an acceptable level (defined by the government).

The contractor shall provide all compliance scan results in an IRS acceptable format (i.e., CSV, JSON, or XML).

17. Cybersecurity Supply Chain Risk Management (C-SCRM). In accordance with the request for proposal (RFP), statement of work (SOW) or performance work statement (PWS) requirements, the contractor agrees to take complete responsibility for all actions of its Subcontractors.

Subcontractors are expected to meet all requirements set forth in the RFP, SOW, or PWS agreed to by the prime contract holder. The contractor shall identify all subcontractors who will perform services, including their name, the nature of services to be performed, address, telephone, email, federal tax identification number (TIN), and anticipated dollar value of each https://www.cisa.gov/sbom https://www.cisa.gov/news-events/directives/binding-operational-directive-22-01 https://www.cisa.gov/known-exploited-vulnerabilities-catalog https://www.cisa.gov/known-exploited-vulnerabilities-catalog

Cybersecurity, Cyber Threat Response and Remedia�on June 2024 5 subcontract before any work is performed by the subcontractor. The IRS reserves the right to reject subcontractors identified by the contractor that pose a significant risk to IRS and the IRS IT Infrastructure as defined by Federally mandated C-SCRM requirements and Publica�on 4812.

Any subcontractors not listed in the contractor’s proposal submission, who are engaged by the contractor, must be pre-approved, in writing, by the IRS.

The contractor shall manage the supply chain risk lifecycle of their products, services and subcontractor �ers using risk assessment methods and procedures iden�fied by the current version of NIST SP 800-161. The assessment must consider documented processes, documented controls, all-source intelligence, public informa�on, foreign ownership, control, or influence (FOCI), Country of Origin (COO), ownership and leadership personnel, comparisons against Federal Government restric�on lists, and iden�fica�on of product vulnerabili�es through the CISA na�onal known vulnerability databases.

The contractor shall comply with NIST Secure So�ware Development Framework (SSDF) SP 800- 218 for its products and services or map to the SSDF to demonstrate a framework for well-secured products. The contractor shall apply the SSDF to the en�re product lifecycle including design, development, tes�ng and opera�ons. The contractor shall secure all code in a so�ware versioning library located in a secured environment with access enabled for the government requirements, so�ware review and oversight roles. This tool must facilitate task management, versioning, check-in/check-out/commits, repor�ng, tes�ng, automa�on, deficiencies, and vulnerabili�es, debugging, flagging and traceability as examples. Addi�onally, the vendor shall iden�fy all instances of ar�ficial intelligence (AI) used in informa�on and communica�on technology (ICT) product development or suppor�ng ICT product capabili�es.

The contractor will provide an environment that adheres to NIST SP 800-207 Zero Trust Architecture and CISA Binding Operational Directive 23-02. Non-compliant conditions are unacceptable for new technologies and cannot be remediated via a Risk Based Decision (RBD) or Risk Acceptance Form and Tool (RAFT). Non-compliance discovered in existing software or hardware will result in software or hardware being placed into quarantine until non-compliance issues are remediated to the satisfaction of the government.

The federal government has the authority to conduct site reviews for compliance valida�on. Full coopera�on by contractor and third-party providers is required for audits and forensics. The contractor must support IRS in its efforts to assess and monitor the contractor systems and infrastructure. The contractor must provide logical and physical access to the contractor’s facili�es, installa�ons, technical capabili�es, opera�ons, documenta�on, records, and databases upon request.

Within 14 business days of a request from IRS Cybersecurity, the contractor shall provide the following:

i. The vendor shall provide the completed CISA Common Form documen�ng their atesta�on to the OMB 23-16 mandated secure so�ware development requirements. The contractor shall only use so�ware provided by so�ware producers who can atest to and demonstrate compliance with the Government-specified secure so�ware development prac�ces, Security and Privacy controls and

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Cybersecurity Supply Chain Risk Management Prac�ces, as described in the NIST Guidance, including so�ware renewals and major version changes upon or prior to award. For any prac�ces from the NIST guidance that the so�ware producer cannot atest, the contractor shall provide documented prac�ces in place to mi�gate those risks along with a POA&M to remediate in accordance with OMB Memorandum M- 22-18, Enhancing the Security of the So�ware Supply Chain through Secure So�ware Development Practices (September 14, 2022) and M-23-16 Update to Memorandum M-22-18, Enhancing the Security of the So�ware Supply Chain through Secure So�ware Development Prac�ces (June 9, 2023).

ii. The contractor shall develop and provide an organiza�on-wide strategy for managing supply chain risks associated with the development, acquisi�on, maintenance, and disposal of systems, system components, and system services as it relates to the products and services delivered to the IRS.

iii. The contractor shall provide evidence of a C-SCRM Plan that iden�fies supply chain risk with their product or services, components, suppliers, and contractors. The contractor shall review and update the supply chain risk management plan annually.

iv. During all contract phases, including the request for proposal (RFP) and/or request for informa�on (RFI), the contractor may be required to provide responses to the IRS Cybersecurity Supply Chain Risk Assessment Ques�onnaire that contains a list of ques�ons based on the current version of NIST SP 800-53 Supply Chain Risk Management security controls and the current version of NIST SP 800-161, Cybersecurity Supply Chain Risk Management Prac�ces for Systems and Organiza�ons. The ques�onnaire will be provided to the vendor by IRS/Cybersecurity and is tailored for each procurement to assess the maturity of the contractor’s C-SCRM capabili�es and any C-SCRM related risks rela�ng to the contractor and its supplier supply chain components, subsystems, intellectual property, and other services relevant to the procurement.

18. Security Authorization/Certification and Accreditation Process. The IRS’ FIPS 199 baseline is a moderate. All solu�ons must, at a minimum, meet moderate NIST SP 800-53 security and privacy controls. However, a�er officially comple�ng the FIPS 199 it may be determined that the solu�on is a FIPS 199 high or has addi�onal control overlays above the standard baseline.

Cloud service providers and contractors developing vendor-built solu�ons must review NIST SP 800-63, use its decision trees to obtain an overview of all digital iden�ty requirements, and read the applicable NIST SP 800-63 volumes to determine specific requirements that apply to their cloud offerings. A digital iden�ty risk assessment (DIRA) will be completed to determine the appropriate authen�ca�on level; however, the IRS baseline is Iden�ty Assurance Level 2 and the solu�on must integrate with the IRS authen�ca�on solu�on.

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The cloud service provider/contractor systems that collect, maintain, contain or use agency informa�on or an informa�on system on behalf of the agency (a General Support System (GSS), with a FIPS 199 security categoriza�on) must ensure annual reviews and con�nued security cer�fica�on and accredita�on. Some of the key elements of this IT risk and impact assessment process are project security deliverables such as the System Security Plan (SSP), Informa�on System Con�ngency Plan (ISCP), Business Impact Analysis (BIA) with documenta�on of inclusion of the 12-hour Maximum Tolerable Down�me (MTD) for IRS Mission Essen�al Func�ons (MEFs) and evidence of recovery capability within that 12-hour �meframe, Interconnec�on Security Agreement (ISA), Security Risk Assessment (SRAs), Data Impact Assessments (DIAs), Risk Analyses, Security Threat Analyses, Audit Plan, Source Code Review, Security Control Assessment (SCA), and/or Event-Driven Security Control Assessment (ED-SCA). All systems that complete this process will, at a minimum, meet FedRAMP, Federal Con�nuity Direc�ves (FCDs) 1 & 2, Treasury and IRS requirements. All systems must follow the NIST risk management framework (RMF) and the IRS processes suppor�ng the RMF.

19. Data Loss Prevention (DLP) Software. The cloud service provider/contractor shall implement DLP software to assure existing software will operate effec�vely in the cloud.

The cloud service provider/contractor shall be responsible for all patching and vulnerability management (PVM) of so�ware and other systems’ components suppor�ng services when doing business with the IRS to prevent proac�vely the exploita�on of IT vulnerabili�es that may exist within the cloud service provider/contractor opera�ng environment. Such patching and vulnerability management must meet the requirements and recommenda�ons of NIST SP 800-40, as amended, with special emphasis on assuring that the vendor’s PVM systems and programs apply standardized configura�ons with automated con�nuous monitoring of the same to assess and mi�gate risks associated with known and unknown IT vulnerabili�es in the cloud service provider/contractor opera�ng environment.

Furthermore, the cloud service provider/contractor shall apply standardized and automated acceptable versioning control systems that use a centralized model to capture, store, and authorize all so�ware development control func�ons on a shared device that is accessible to all developers authorized to revise so�ware suppor�ng the services when doing business with the IRS. Such versioning control systems must be configured and maintained to make sure all so�ware products deployed in the cloud service provider/contractor opera�ng environment and serving the IRS are compa�ble with exis�ng systems and architecture of the IRS.

20. Data Ownership. The delivery of data to the cloud service provider/credential service provider/contractor does not transfer any element of ownership; and as between the customer and data host, the IRS retains all right, title and interest in the data.

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The cloud service provider/creden�al service provider/contractor role with respect to the data is limited to a storage func�on to fulfill its obliga�on to provide hos�ng services, and the cloud service provider/creden�al service provider/contractor will not interfere with the IRS’s access.

The cloud service provider/creden�al service provider/contractor is a “custodian” with respect to the data.

The cloud service provider/creden�al service provider/contractor shall delete or shall return the IRS’s data in an agreed-upon format, at any �me at the user’s request. The cloud service provider/creden�al service provider/contractor shall provide the IRS Contracting Officer/Contracting Officer Representative with a copy of the disposal record and no�fica�on once disposal is complete.

20. Data Ownership. The delivery of data to the cloud service provider/credential service provider/contractor does not transfer any element of ownership; and as between the customer and data host, the IRS retains all right, title and interest in the d...