NOI 36C25626Q0293.pdf

Special Notice

SUBJECT* Olympus Equipment Rental

GENERAL INFORMATION

CONTRACTING OFFICE’S ZIP CODE* 39216

SOLICITATION NUMBER* 36C25626Q0293

RESPONSE DATE/TIME/ZONE 02-06-2026 12:00 CENTRAL TIME, CHICAGO, USA

ARCHIVE 5 DAYS AFTER THE RESPONSE DATE

RECOVERY ACT FUNDS N

PRODUCT SERVICE CODE* W065

NAICS CODE* 334510

CONTRACTING OFFICE ADDRESS Department of Veterans Affairs

NCO 16 Contracting Office G.V. (Sonny) Montgomery VAMC 1500 E. Woodrow Wilson Ave.

North Little Rock AR 72114 1706

POINT OF CONTACT* Contract Specialist Kolbi Barton kolbi.barton@va.gov 501-216-5549

ADDITIONAL INFORMATION

AGENCY’S URL https://www.va.gov URL DESCRIPTION Department of Veterans Affairs AGENCY CONTACT’S EMAIL ADDRESS kolbi.barton@va.gov

DESCRIPTION

The Department of Veterans Affairs G.V. (Sonny) Montgomery VA Medical Center Network Contracting Office (NCO) 16 intends to issue and award a Sole Source one-time single award Firm-Fixed Price type contract to Olympus America INC, located at 3500 Corporate Parkway, Center Valley, Pennsylvania 18034 for lease of items listed below. It has been determined that through initial Market Research, only 1 (one) responsible source can provide the required items as identified below, in accordance with Federal Acquisition Regulation (FAR) 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements”.

SCOPE:

The purpose of this contract is to provide the G.V. (Sonny) Montgomery VA Medical Center, 1500 E. Woodrow Wilson Ave., Jackson, MS 39216, with continuous rentals of Operating Room Laparoscopic Equipment and a new rental request for ENT (Ear, Nose, and Throat) and Urology assisted by on site to assist with specified intervals and on the requested days scheduled. Each day or part-day on which a specific contractor supplies the VAMC are being used. The contractor must ensure all equipment is maintained and operates in a correct and safe manner as intended and designed by the Original Equipment Manufacturer (OEM).

THIS IS NOT A REQUEST FOR COMPETITIVE QUOTES/PROPOSALS AND NO

SOLICIATION IS AVAILABLE.

Telephone requests will not be honored. No award will be made based on quotes or offers received in response to this notice. All responsible sources may identify their interest to meet this requirement to Kolbi Barton by 12:00 pm (CST), Friday, February 6, 2026. Additionally, any response to this notice must show clear, compelling and convincing evidence that competition will be advantageous to the government by providing the following:

1.Business Size and Socio-Economic Status: (a) Indicate whether your business is large or small

(b) If small, indicate if your firm qualifies as a small, emerging business, or small disadvantaged business (c) If disadvantaged, specify under which disadvantaged group and if your firm is certified under Section 8(a) of the Small Business Act (d) Indicate if your firm is a certified Hub zone firm (e) Indicate if your firm is a woman-owned or operated business (f) Indicate if your firm is a VIP verified Service-Disabled Veteran Owned Small Business (SDVOSB) or Veteran Owned Small Business (VOSB) (g) Include the DUNS number of your firm. (h) State whether your firm is registered with the System for Award Management (SAM) at www.sam.gov and/or the VetBiz Registry at www.vetbiz.gov. If not, please NOTE: any future solicitation could only be awarded to a contractor who is registered in SAM. To receive award based on VOSB or SDVOSB status you must be registered in the VetBiz Registry.

2. Authorization to Perform: Prospective Contractors MUST provide a letter of authorization from Olympus America INC, identifying they are authorized to provide the required supplies.

The intent of this notice is for informational purposes only. Interested parties may submit information for consideration by the government to: kolbi.barton@va.gov no later than the response due date/time identified above.

DRAFT STATEMENT OF WORK

Specification/Statement of Work: Rental of Surgical Existing Operating Rooms 4, 5, & 6 Laparoscopic Equipment and new ENT, Urology equipment rental at G.V. (Sonny) Montgomery VA Medical Center, 1500 E. Woodrow Wilson Ave., Jackson, MS 39216, 1.Background:

A. The purpose of this contract is to provide the G.V. (Sonny) Montgomery VA Medical Center, 1500 E. Woodrow Wilson Ave., Jackson, MS 39216, with continuous rentals of Operating Room Laparoscopic Equipment and a new rental request for ENT (Ear, Nose, and Throat) and Urology assisted by on site to assist with specified intervals and on the requested days scheduled. Each day or part-day on which a specific contractor supplies the VAMC are being used

2. Objectives:

A. To replace the existing ENT, Urology, and Operating Rooms 4, 5, & 6 laparoscopic equipment, monitors, and video equipment at the G.V. (Sonny) Montgomery VA Medical Center. This replacement will involve acquiring new, state-of-the-art equipment to http://www.sam.gov/ http://www.vetbiz.gov/ mailto:kolbi.barton@va.gov enhance surgical capabilities and support our mission of providing high-quality surgical care to veterans.

3. Scope, Tasks, or Requirements:

A. The general scope of the work the contractor will be performing is to supply the government G.V. (Sonny) Montgomery VA Medical Center with rentals of current Operating Rooms Laparoscopic Equipment and new ENT, Urology equipment rental.

It is expected that all requested equipment is to be inspected on criteria of the VAMC BioMed Department.

B. The types of Operating Room Laparoscopic Equipment and new ENT, Urology equipment required by this VA facility include:

Three (3) NS-CO2-DI-U-ASSY Med gas assembly-Carbon dioxide Three (3) LT-WC-D-RES-1 Dual Wall Control Four (4) NSLHMNTUAPSNGLBOM Universal anchor plate single mount One (1) NS-WAG-DI-U-ASSY Med gas assembly-WAGD Three (3) LH-PWR-EM-1-600-MG Elec brake control unit power supply single Two (2) ISM-1005353 4K Source Connection Kit, Two (2) ISM-1005999 HD or 4K Wall Display Connection Kit Two (2) ISM-1000454 NCARE RX HD Streaming Channel Two (2) ISM-1004557 Easysuite 4K: PTZ Camera - IP, HD Two (2) ISM-500502 Patient Greeting System (PGS) Two (2) ISM-500499 Checklist Manager (CLM) One (1) ISM-1000430 Livestream Network Site Hosted Software One (1) ISM-1000433 Livestream Portal (LSP) (Site License) One (1) ISM-IT_INST IT Installation for Data Center Two (2) ISM-1000452 NCARE RX HD Single Channel Video Recording Two (2) ISM-1000453 NCARE RX HD Dual Channel Upgrade (FOR 1000452) Two (2) ISM-1007381 Easysuite 4K-2500 Design, PM and Installation Two (2) ISM-1007459 Livestream Status Board 2 Kit for OAI Two (2) ISM-Day Rate Installation Day Rate Two (2) ISM-1006539 NCARE, REC, Single, DIR SDI Two (2) ISM-1007451 15" NCARE Medical Grade Touch Panel One (1) ISM-NCAREHWIN2-3 NCARE Hardware Installation 2-3 Units on Site Two (2) ISM-1009690 Easysuite 4K-2500 Flexible Advance Audio Two (2) ISM-1009887 Easysuite 4K-2500 Flexible Site Cable Package Two (2) ISM-1010008 Vault stream Content Management License Two (2) ISM-1008563 Vault stream Interfaces License One (1) ISM-1009690 Easysuite 4K-2500 Flexible Advanced Audio One (1) ISM-1005999 HD or 4K Wall Display Connection Kit One (1) ISM-1005353 4K Source Connection Kit One (1) ISM-1000452 NCARE RX HD Single Channel Video Recorder One (1) ISM-1000453 NCARE RX HD Dual Channel Upgrade (FOR 1000452) One (1) ISM-1000454 NCARE RX HD Streaming Channel One (1) ISM-1004557 Easysuite 4K: PTZ Camera - IP, HD

One (1) ISM-1006000 Easysuite 4K: Fixed Camera - IP, HD One (1) ISM-500502 Patient Greeting System (PGS) One (1) ISM-500499 Checklist Manager (CLM) One (1) ISM-1007381 Easysuite 4K-2500 Design, PM and Installation Two (2) ISM-1006000 Easysuite 4K: Fixed Camera - IP, HD One (1) ISM-1009887 Easysuite 4K-2500 Flexible Site Cable Package One (1) ISM-1006617 55" 1080P Wall Display & Mount Two (2) ISM-1009687 Easysuite 4K-2500 Flexible Incabinet One (1) ISM-1009687 Easysuite 4K-2500 Flexible Incabinet Two (2) ISM-1006617 55" 1080P Wall Display & Mount Two (2) ISM-1010008 Vault stream Content Management License One (1) ISM-1010008 Vault stream Content Management License Two (2) ISM-1008563 Vault stream Interfaces License One (1) ISM-1008563 Vault stream Interfaces License Three (3) ISM-1000481 Sony Photo Printer, Medical Grade Two (2) ISM-1000481 Sony Photo Printer, Medical Grade Two (2) ISM-1006616 48 IN 1080P Wall Display & Mount Two (2) ISM-1006002 Easysuite 4K: Two HD Port Expansion Kit One (1) ISM-1006002 Easysuite 4K: Two HD Port Expansion Kit Six (6) LMD-X310ST LMD-X310ST 31-inch 4K/3D Sony Monitor Six (6) ISM-1007390 Easysuite 4K SONY 4K31IN 3GSDI 3D CNCT Kit, Boom Two (2) MAJ-1664 MAJ-1664 Nurses Control Panel Arm - Long Four (4) LMD-X310ST LMD-X310ST 31-inch 4K/3D Sony Monitor Four (4) ISM-1007390 Easysuite 4K SONY 4K31IN 3GSDI 3D CNCT KIT, Boom Seven (7) SL-D-30M-MH1 "iCEm - Dual Clng, 30m/Single Mount" One (1) LT-WC-S-RES-1 Single Wall Control Three (3) SRG-LED-CAMRDY-ADD Surgery light camera prep Three (3) SRG-LED-CAM-ADD Surgery light HD camera system Seven (7) SRG-LED-LCH-3P Low ceiling height susp Three (3) NSNCLCPENTIASSY Med gas assembly-Nitro Ctrl panel One (1) NS-LH-MNT-UAP-BOM Universal anchor platelet double mount Three (3) LP-L-18NN-N-E Boom arm length 1000mm-800mm Three (3) CN-30-14 Console 30x14x12 Two (2) NS-OXY-DI-U-ASSY Med gas assembly-Oxygen Two (2) NS-AIR-DI-U-ASSY Med gas assembly-Medical air Twelve (12) VR-CAN-2000 Canister 2000cc Two (2) NS-VAC-DI-U-ASSY Med gas assembly-Vacuum w holder Six (6) EL-DUP-20-EM-ASSY Emergency Duplex (15A or 20A) Four (4) EL-PRO-DATA Data Provision Single Gang One (1) AM-INST-10U Equip Install - 10 units One (1) AHM-05X-V Adj Height Mon Arm TBD Three (3) LH-PWR-EM-1-600-MG Elec brake control unit power supply single Three (3) LP-L-11NN-N-E Boom arm length 1000 mm-1000mm Nine (9) NS-VAC-DI-U-ASSY Med gas assembly-Vacuum w holder Twenty-Four (24) EL-DUP-20-EM-ASSY Emergency Duplex (15A or 20A) Twelve (12) EL-PRO-DATA Data Provision Single Gang Six (6) VR-CNHLD-2000 Canister Holder 2000cc

Six (6) CN-ECYL-HLDR-CAGE E-Cylinder Holder for ACS Three (3) CN-MNT-CBY-FT-HLDR Console Mount Cubby Foot Holder One (1) AM-INST-3U Equip Install - 3 units Thirteen (13) SRG-LT-DEINSTALL Deinstallation of surgical light Three (3) CNSHFLT18ASSYSR Console Shelf 18X18 Side Rails Three (3) CNSHFLY18X23ASSYFH 18X23 Single Shelf with Control. Contractor will also provide the necessary attachments, supplies, and fibers needed to operate each equipment.

C. Urology equipment will enhance the capability to perform advanced surgical procedures with enhanced precision and efficiency, urological resection, irradiation of tumors in the bladder, and treatment of urethral strictures. They will also be able to accommodate ENT procedures including, but not limited to, endoscopic excision of oropharyngeal, hypopharyngeal, supraglottic, glottic, and subglottic resection of mucosal lesions.

D. Operating Room Laparoscopic Equipment utilizes advanced imaging and surgical equipment to increase the accuracy and effectiveness of surgical procedures, leading to better patient outcomes and minimizing surgical complications using high-definition visualization and integrated systems.

E. ENT equipment aims to introduce state-of-the-art technology to enhance surgical capabilities and improve patient outcomes and enhance Surgical capabilities to improve the quality of surgical care for veterans.

4. Selection Criteria

A. The objective standard of acceptable performance that is to be provided by the contractor is to have a certified and/or licensed technician on the premises, readily available, on the day when the procedure(s) is/are being performed. The contractor should also acknowledge that the equipment is in good working condition and is regularly maintained.

B. The contractor will be liable for damages should patient injury result due to equipment malfunction. The contractor must also indicate that sufficient insurance coverage is maintained for its employees and for its equipment.

5. Delivery Schedule

A. The objective standard of acceptable performance that is to be provided by the contractor is to have a certified and/or licensed technician on the premises, readily available, on the day when the procedure(s) is/are being performed. The contractor should also acknowledge that the Operating Room Laparoscopic Equipment and new ENT, Urology equipment is in good working condition and is regularly maintained.

B. The contractor will be liable for damages should patient injury result due to equipment malfunction. The contractor must also indicate that sufficient insurance coverage is maintained for its employees and for its equipment.

C. Usage – during the term of this SOW, the G.V. (Sonny) Montgomery VA Medical

Center shall utilize the contractor’s equipment rental for all surgical procedures for which such equipment is designed

6. Government-Furnished Equipment and Government-Furnished Information:

A. The VAMC certifies that everyone designated by the VA to operate the equipment is trained and competent in the use of that equipment in his or her capacity. The G.V.

(Sonny) Montgomery VA Medical Center maintains a facility that is adequate and suitable for the operation of the equipment. VAMC shall perform or cause to be performed all medical services, supervision, diagnosis and patient care in accordance with all applicable professional standards.

B. Further, each designated individual shall protect the equipment from injury (including attempted modification) and shall be liable to the contractor for damages occasioned by improper use or handling, carelessness or neglect of the equipment.

C. The contractor will have a certified and/or licensed technician on the premises, readily available, on the day when the procedure(s) is/are being performed. Only VAMC’s employees, while in the performance of their official duties, and not the contractor’s employees, are covered by the Federal Tort Claims Act, 28 U.S.C. §1346(b), 2671 through 2680. The contractor acknowledges that the equipment is in good working condition and is regularly maintained. The contractor will be liable and indemnify the VAMC for damages should patient injury result due to equipment malfunction. The contracted vendor acknowledges that it maintains sufficient insurance coverage.

7. Security:

A. The G.V. (Sonny) Montgomery VA Medical Center Surgical Service, the OR Nursing

Service, or the designated surgeons shall ensure that surgical consent forms have been received from all patients prior to surgery.

B. The Contractor is required to enter into a Business Associate Agreement (BAA) with the

VA. A sample BAA is included in this solicitation.

8. Place of Performance

A. This work will be performed at G.V. (Sonny) Montgomery VA Medical Center, 1500 E.

Woodrow Wilson Ave., Jackson, MS 39216 and not at the contractor’s site.

9. Period of Performance

1. Period of performance base year 1 July 2026 – 30 June 2027, as continuation of existing equipment on-site; no new equipment is being shipped.

A. Option Year 1: 1 July 2027 – 30 June 2028.

B. Option Year 2: 1 July 2028 – 30 June 2029

10. Option to Extend Services

A. The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only because of revisions to prevailing labor rates provided by the Secretary of Labor.

B. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within.

11. Contractor’s Responsibility

A. Contractor will hold and submit certificates of insurance for general liability and malpractice insurance, workmen’s compensation and vehicle insurance. Under no circumstances are Contractor’s employees considered VA employees.

B. Technician(s) must be licensed to provide medical services in the State of Mississippi and have equipment safety training and certificates.

C. The contractor is responsible for keeping equipment in good order and shall provide all maintenance, repairs, and upgrades to the equipment as required, keeping it in optimal condition.

D. Technicians(s) are subject to the same quality assurance standards as established by the Joint Commission (JC).

E. The Contractor shall report the following information for each covered article or each product or service produced or provided by a source, where the covered article or source is subject to a FASCSA order, pursuant to paragraph (c)(3)(i) of this clause.

(i) Within 3 business days from the date of such identification or notification:

(1) Contract number.

A. Order number(s), if applicable.

B. Name of the product or service provided to the Government or used during performance of the contract.

C. Name of the covered article or source subject to a FASCSA order.

D. If applicable, name of the vendor, including the Commercial and Government

Entity code and unique entity identifier (if known), that supplied the covered article or the product or service to the Contractor.

E. Brand.

F. Model number (original equipment manufacturer number, manufacturer part number, or wholesaler number);

G. Item description; and H. Any readily available information about mitigation actions undertaken or recommended.

(ii) Within 10 business days of submitting the information in paragraph (c)(4)(i) of this clause:

(A) Any further available information about mitigation actions undertaken or recommended.

(2). In addition, the Contractor shall describe the efforts it undertook to prevent submission or use of the covered article or the product or service produced or provided by a source subject to an applicable FASCSA order, and any additional efforts that will be incorporated to prevent future submission or use of the covered article or the product or service produced or provided by a source that is subject to an applicable FASCSA order.

11. Services Not Covered

A. Any work other than as specified in the contract shall be identified as a non-priced task, and if determined by the Contracting Officer to be within the overall scope of the contract, work shall be added by a modification to the contract.

B. Any work requested that is identified as outside the scope of the contract shall be addressed by the facility as a separate procurement.

12. Federal Holidays Observed by the VA

New Year's Day 1 January Labor Day 1st Mon. in Sept M L King's Birthday 3rd Mon. in Jan Columbus Day 2nd Mon. in Oct President's Day 3rd Mon. in Feb Veterans Day 11 November Memorial Day Last Mon. in May Thanksgiving Day 4th Thurs. in Nov Independence Day 4th of July Christmas Day 25 December

A. Also included would be any other day specifically declared by the President of the United States to be a National Holiday.

B. When a holiday falls on a Sunday, the following Monday shall be observed as a legal holiday by U.S. Government agencies. When a holiday falls on a Saturday, the preceding Friday shall be observed as a legal holiday.

13. Identification, Parking, Smoking, and VA Regulations:

A. The Contractor's FSEs shall always wear visible identification while on the premises of the VAMC. It is the responsibility of the contractor to obtain and pay for parking. The VAMC does not provide any parking. The VAMC will not invalidate or make reimbursement for parking violations or charges for the Contractor under any conditions.

Smoking is prohibited inside any building at the VAMC. Possession of weapons is prohibited. Enclosed containers, including tool kits, shall be subject to search.

Violations of VA regulations may result in citation answerable in the United States (Federal) District Court, not a local district, state, or municipal court.

14. Orientation For Contractor Employees

A. Contractor will attend an orientation meeting as arranged by the Contracting Officer’s Representative (COR). The VA will schedule this meeting, and it will include discussion of the following topics: (VA will provide information to the contractor regarding these topics and will document the meeting)

1. Fire and Safety

2. Infection control

3. Disaster procedures

4. Other

B. The Contractor will be responsible to ensure that Contractor employees coming to the work site will receive the information required above.

C. The Contractor will be responsible to ensure Contractor employees providing work on this contract are fully trained and completely competent to perform the required work.

15. Contractor Personnel Security Requirements:

All contractor employees who require access to the Department of Veterans Affairs' Contractors computer systems or have access to sensitive information shall be the subject of a background investigation. The contractor is encouraged to have its employee immediately download the background investigation packet from http://www.osp.va.gov/Security_and_Investigations_Center_FF.asp upon notification of contract award. A contractor’s employee shall not commence working at VA under contract until the Contracting Officer receives notification from the VA Office of Security and Law Enforcement that the contract employee’s application has been received complete. A favorable adjudication from the VA Office of Security and Law Enforcement must be received for a contractor employee to continue contract performance. This requirement is applicable to all subcontractor personnel.

a. Position Sensitivity - The position sensitivity has been designated as low risk.

b. Background Investigation - The level of background investigation commensurate with the required level of access is National Agency Check with Written Inquiries (NACI).

c. Contractor Responsibilities

1. The contractor shall bear the expense of obtaining background investigations. If the

Office of Personnel Management (OPM) conducts the investigation, the contractor shall reimburse VA within 30 days. If timely payment is not made within 30 days of the date of bill for collection, then VA shall deduct the cost incurred from the contractor’s 1st month’s invoice(s) for services rendered.

2. It is imperative for the contractor to provide, at the request of VA, with a listing of contractor personnel performing services under the contract for the background investigation process to commence. This list will include names (first, middle, last) social security number; date of birth; city, state, and country of birth.

3. The contractor or their employees shall submit a complete background investigation packet. Additional guidance and information in completing the required forms, and examples of the forms, can be found at http://www1.va.gov/VABackground_Investigations/page.cfm?pg=2.

4. The following forms required must be submitted to the VA Office of Security and Law

Enforcement before contract performance begins:

(i) Standard Form 85, Questionnaire for Non-Sensitive Positions

(ii) Optional Form 306, Declaration for Federal Employment

(iii) Standard Form 86A (EG), Continuation Sheet for Questionnaire

(iv) Electronic Fingerprint Form

5. Fingerprinting is required with background investigation. Fingerprinting can be done at the local VA Facility. The Electronic Fingerprint Verification Form must be submitted with the above required forms.

6. The Contractor shall inform the contract employee that when filling out Standard Form

85, that there should be no gaps in employment history. Any gap in employment history on Standard Form 85 may result in OPM rejecting the documentation for investigation and delaying contract performance.

7. The contractor, when notified of an unfavorable determination by the Government, shall withdraw the employee from consideration from working under the contract, and at the request of the VA, submit another employee for consideration.

8. The contractor may utilize a private investigating agency if such agency possesses an

OPM and Defense Security Service certification. A Cage Code number must be provided to the VA Office of Security and Law Enforcement. VA Office of Security and Law Enforcement will verify the information and advise the contracting officer whether contractor’s access to the computer systems can be authorized.

9. All contractor employees and subcontractors are required to complete VA’s Privacy training annually. All Contractor employees and subcontractors requiring access to VA computer network are required to complete Cyber Security training courses annually either on-line or hard copy. Proof of the documentation must be provided to the Contracting Officer.

10. The contractor will notify the COR immediately when their employees no longer require access to VA computer systems.

d. Government Responsibilities

1. The contracting officer will request the contractor employee’s background investigation by the Office of Security and Law Enforcement.

2. The Office of Security and Law Enforcement will notify the contractor with instructions for the contractor's employees, coordinate the background investigations, and notify the contracting officer and contractor of the results of the investigations.

3. The VA facility will pay for requested investigations in advance. A bill for collection will be sent to the contractor to reimburse the VA facility. The contractor will reimburse the VA facility within 30 days. If timely payment is not made within 30 days of the date of bill for collection, then VA shall deduct the cost incurred from the contractor’s 1st month’s invoice(s) for services rendered.

SAC (Special Agreement Check)

All Contractor Employees who require access to the Department of Veterans Affairs computer systems or who have access to sensitive information shall be required to have, at a minimum, a Special Agreement Check (SAC) which includes electronic fingerprinting. A Contractor Employee shall not perform any contract work (except for any other required orientation and training that does not require access to a VA computer system) until fingerprinting is completed by the local Human Resource Management Service. Fingerprinting should take place on the first day that a Contractor Employee enters on duty. The Contracting Officer’s Technical Representative shall facilitate the SAC process for the Contractor and Contractor Employee.

If the SAC identifies “potentially actionable issues” in connection with a Contractor Employee and it is determined that the Contractor Employee needs to be removed, the Contracting Officer shall notify the Contractor, and the Contractor shall immediately remove that Employee from contract work. The removal of the Employee shall not excuse any failure to meet contract requirements.

SACs and fingerprinting of Contractor Employees will be required even when an Employee will not be working on site at a VA Facility. The Contracting Officer can identify other options for accomplishing these SACs.

16. Security Training

Due to the increased emphasis on privacy and information security, the following special contract requirements are established and hereby made part of the contract entered with the Department of Veterans Affairs.

a. Privacy Training: Contractor and their sub-contractors assigned work under the contract are required to receive annual training on patient privacy as established by HIPAA statues.

Training must meet VHA’s and the Department of Health and Human Services Standards (HSS) for Privacy of Individually identifiable health information. Contractor shall provide documented proof to the contracting officer that all employees assigned work and/or having access to protected health information have received annual training. Proof of training is to be forwarded to the COR. Training can be obtained through http://www.insidelms.va.gov/index.shtm. An account must be set up to access the training site by visiting https://www.tms.va.gov/plateau/user/login.jsp. page and contacting the local LMS Administrator or contacting the VA TMS Help Desk by phone at 1-866-496-0463 or via e-mail at vatmshelp@va.gov. For contractors and sub-contractors who do not have access to VHA computer systems, this requirement is met by receiving VHA National Privacy Training, other VHA approved privacy training or contract furnished training that meets the requirements of the HHS standards.

b. Rules of Behavior for Automated Information Systems: Contractor personnel having access to VA Information Systems are required to read and sign a Rules of Behavior statement which outlines rules of behavior related to VA Automated Information Systems. The COR will provide, through the facility Information Security Officer (ISO), the Rules of Behavior to the contractor for the respective facility.

c. VA Information Security Awareness Training: Each contractor assigned work under the contract is required to receive and document completion of VA training on Information Security.

Training can be obtained through http://www.insidetms.va.gov/index.shtm. An account must be set up to access the training site by visiting https://www.tms.va.gov/plateau/user/login.jsp. page and contacting the local LMS Administrator or contacting the VA TMS Help Desk by phone at 1- 866-496-0463 or via e-mail at vatmshelp@va.gov. Contractor shall provide documented proof to the COR that all contractor employees servicing a VA contract have received annual training.

17. 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 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 onsite inspections of contractor and subcontractor IT resources to ensure data security controls, separation of data and job duties, and destruction/media sanitization procedures are following 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 while 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 to 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 to 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 COR.

18. 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 COR, and approved by the VA Privacy Service in accordance with Directive 6507, VA Privacy Impact Assessment.

b. The contractor/subcontractor shall certify to the COR 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.

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

(2) 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 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 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, hot fixes, 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 3 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 days.

l. All other vulnerabilities shall be remediate 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.

19. Security Incident Investigation

a. The term "security incident" means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures. The contractor/ subcontractor shall immediately notify the COR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/ subcontractor has access.

b. To the extent known by the contractor/subcontractor, the contractor/ subcontractor's notice to VA shall identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the VA information or assets were placed at risk or compromised), and any other information that the contractor/subcontractor considers relevant.

c. With respect to unsecured protected health information, the business associate is deemed to have discovered a data breach when the business associate knew or should have known of a breach of such information. Upon discovery, the business associate must notify the covered entity of the breach. Notifications need to be made in accordance with the executed business associate agreement.

d. In instances of theft or break-in or other criminal activity, the contractor/subcontractor must concurrently report the incident to the appropriate law enforcement entity (or entities) of jurisdiction, including the VA OIG and Security and Law Enforcement. The contractor, its employees, and its subcontractors and their employees shall cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal violations associated with any incident. The contractor/subcontractor shall cooperate with VA in any civil litigation to recover VA information, obtain monetary or other compensation from a third party for damages arising from any incident, or obtain injunctive relief against any third party arising from, or related to, the incident.

20. Liquidated Damages for Data Breach

a. Consistent with the requirements of 38 U.S.C. 5725, a contract may require access to sensitive personal information. If so, the contractor is liable to VA for liquidated damages in the event of a data breach or privacy incident involving any SPI the contractor/subcontractor processes or maintains under this contract.

b. The contractor/subcontractor shall provide notice to VA of a "security incident" as set forth in the Security Incident Investigation section above. Upon such notification, VA must secure from a non-Department entity or the VA Office of Inspector General an independent risk analysis of the data breach to determine the level of risk associated with the data breach for the potential misuse of any sensitive personal information involved in the data breach. The term 'data breach' means the loss, theft, or other unauthorized access, or any access other than that incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. Contractor shall fully cooperate with the entity performing the risk analysis.

Failure to cooperate may be deemed a material breach and grounds for contract termination.

21. Security Controls Compliance Testing

On a periodic basis, VA, including the Office of Inspector General, reserves the right to evaluate any or all the security controls and privacy practices implemented by the contractor under the clauses contained within the contract. With 10 working days’ notice, at the request of the government, the contractor must fully cooperate and assist in a government-sponsored security controls assessment at each location wherein VA information is processed or stored, or information systems are developed, operated, maintained, or used on behalf of VA, including those initiated by the Office of Inspector General. The government may conduct a security control assessment on shorter notice (to include unannounced assessments) as determined by VA in the event of a security incident or at any other time.

22. Training

a. 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:

(1) 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.

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

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

(4) Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access [to be defined by the VA program official and provided to the contracting officer for inclusion in the solicitation document - e.g., any role-based information security training required in accordance with NIST Special Publication 800-16, Information Technology Security Training Requirements.]

b. The contractor shall provide to the contracting officer and/or the COR 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.

c. 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.

(End of Draft Statement of Work)

DRAFT STATEMENT OF WORK