P01 - DRAFT PWS Salary Survey Data and Analysis 05292026.docx

Veterans Health Administration Office of Workforce Management and Consulting Salary Survey Data Collection and Analysis Performance Work Statement (PWS)

1. Background: The Department of Veterans Affairs (VA), Veterans Health Administration (VHA) is one of the largest employers for health care professionals in the United States. VHA employs nurses, physicians, dentists, and many other health care occupations and ancillary support positions which are the cornerstone of our nation's largest healthcare system. As such, it is critical that individual VA medical centers are provided access to accurate, reliable, and recurring market-based third-party salary survey data. This market-based data is used to assess VA’s competitive position in each local labor market area and allows VA facilities to make informed, consistent, accurate, and timely compensation decisions for a wide variety of critical occupations.

VA is challenged in its ability to easily assess the health care labor market conditions due to difficulty in obtaining quality data from competing entities due to anti-trust regulations, a lack of understanding of the data required during the analysis phases, and inconsistent job matching. VHA competes with major employers in the health care market to fill health care positions and relies heavily on the flexibility to utilize third-party survey data to adjust salaries to enhance the VA’s ability to recruit and retain high quality employees. Additionally, recent legislation to include the PACT Act and Dole Act includes new and improved compensation flexibilities requiring the use of third-party survey data.

The majority of these health care professionals are appointed and paid pursuant to Title 38 United States Code (U.S.C.) Section 74, Veterans Health Administration Personnel (38 U.S.C. §§ 7401-7474). More specifically, VHA is required by 38 U.S.C 7451 (Section 7451) to utilize third-party survey data, when available, to determine if Title 38 Locality Pay System (LPS) adjustments are necessary in order to compensate nurses, nurse anesthetists, physician assistants, as well as any other occupation covered by the Title 38 LPS (Section 7451).

VHA also utilizes third-party survey data to assist in making market pay determinations for positions covered by the Physician, Dentist, Podiatrist and Optometrist (PDPO) Pay System pursuant to 38 U.S.C. 7431.

In addition, VHA relies heavily on third-party survey data when making salary determinations for special salary rates approved under the authority of 38 U.S.C. 7455 for healthcare occupations and VHA police officers, as well as 5 U.S.C. 5305 for administrative and engineering positions. The special rates established under these authorities may be competitive with, but not exceed, pay for comparable positions at non-Federal facilities in the local labor market.

Title 38 LPS, special rate schedules, and PDPO market pay are routinely established and adjusted based on third-party survey data for specific local labor market areas.

2. Scope of Work: The VHA is seeking a Contractor who is an expert in compensation consulting and can provide the following services:

a. Survey Identification, Schedule, and Purchasing. Contractor will assist VHA in identifying a list of approximately 50 national and regional salary, benefits, and productivity/staff ratio surveys to participate in and receive survey data from. The Contractor shall establish an agreement with each third-party survey provider, maintain and publish a calendar to submit timely VHA employee salary and other compensation data on VHA’s behalf, purchase surveys on behalf of VHA, and to apprise VHA as to when each third-party survey deliverable will be received.

b. VHA Survey Data Collection and Distribution. In order to perform appropriate job matching/benchmarking and participate in surveys on behalf of VHA, the Contractor must have extensive knowledge of VHA healthcare occupations; knowledge of VHA’s unique grade and salary structure; and a thorough understanding of the various qualification standards for each VHA healthcare occupation.

Contractor shall collect and provide VHA employee survey and benefits data on behalf of 152+ VA medical centers, in different local labor market areas to third party survey providers on behalf of the VHA. By accessing large VHA electronic employee data files, the Contractor shall extract, analyze, benchmark jobs based on VA job descriptions, and provide employee specific salary and benefit data including duty station locations to different third-party survey sources on VHA’s behalf. Each third-party survey may require data analysis of employee salaries for clinical, professional, administrative, technical, clerical, trade, engineering, security, or other healthcare occupations and will cover any duty station location within the VA Health Care System. This includes locations throughout the continental United States (CONUS), Alaska, Hawaii, and U.S. territories to include Puerto Rico, Guam, American Samoa, and the U.S. Virgin Islands.

c. Data Analysis and Report Generation - The Contractor shall collect the third-party salary survey results and provide the results in a cloud-based database. Results must include the aggregate market data and analysis and create market comparisons for national and regional salary data. The Contractor shall develop appropriate market analysis and market comparisons for occupations eligible for pay pursuant to 38 U.S.C. §§ 7401-7474. The Contractor shall provide the compensation of all positions surveyed to include, minimum, median, maximum, and mean salary amounts for each position, minimum, median, and maximum ranges when available, and total cash compensation amounts. The total compensation shall include premium pay and differential amounts, recruitment and/or relocation benefits paid, educational assistance/debt reductions incentives (including student loan repayment programs), and other monetary benefits typically paid by employers. The Contractor shall also obtain information on any other work/life benefits paid or offered to non-federal employees.

d. Application of Geographic Differentials - In order for VA to utilize national third-party survey data, upon purchase of the surveys the Contractor must provide geographic differentials in order to extrapolate and report survey data for each individual VA local labor market area, using recognized industry standards and survey methodology comparable to the methodology used by the Bureau of Labor Statistics (BLS). A differential or percentage is calculated and applied to national survey data. The Contractor shall develop and provide reports which allow VA to apply the determined geographic differentials to aggregate and individual national survey data sets for all established duty station locations.

e. Job Architecture (JA). Contractor will assist VHA in the maintenance of a job architecture catalogue that clearly defines and aligns employees to career paths through career tracks and job leveling to support competitive benchmarking and compensation validation. Employee data will be mapped and integrated into the enterprise compensation solution.

f. Enterprise Compensation Solution. Contractor will provide a cloud-based enterprise compensation solution to develop compensation strategy tools leveraging data with Artificial Intelligence (AI) to standardize pay setting, annual compensation reviews for T38, HT38, and GS Healthcare workers, and support the authorization of recruitment, relocation, and retention incentives. Note: The current contract utilizes PayScale’s MarketPay as the cloud-based enterprise compensation solution. The use of PayScale’s MarketPay specifically is not required. However, the solution should be a widely available service that provides commercially available information to agencies but does not collect Federal information.

All data files, reports, deliverables, etc., provided by the Contractor shall be formatted and delivered to enable importing the data to an external, cloud-based database or compensation system.

The survey methodology performed by the Contractor shall comply with 38 U.S.C. §7404, 7431, 7451, and 7455, as well as VA policy promulgated in VA Handbook 5007, specifically parts VI, IX, and X.

3. Period of Performance: The period of performance (PoP) shall be one (1) year from date of award, with four (4) twelve (12) month option periods.

The principal place of performance shall be at the Contractors’ facilities.

No work at any Government site will take place on Federal holidays or weekends, unless directed by the Contracting Officer (CO).

Authorized holidays for Contractor personnel performing work at a Government installation shall correspond with Government holidays. There are eleven (11) Federal holidays set by law (5 U.S.C. §6103). Under current definitions, four (4) are set by date:

If any of the above falls on a Saturday, then the preceding Friday shall be observed as a holiday. Similarly, if one falls on a Sunday, then Monday shall be observed as a holiday. The other six (6) are set by a day of the week and month:

4. Type of Contract: This contract shall be Firm Fixed Price (FFP).

5. Travel: The Contractor must obtain written approval from the Contracting Officer’s Representative (COR) before any travel begins, utilizing a Travel Authorization Request Form, which will be provided by the COR to the contractor upon request for travel. Travel and per diem expenses will be reimbursed on an actual expenditures’ basis in accordance with Federal Travel Regulations and Revolutionary FAR Overhaul (RFO) 31.205-46. Travel that occurs without written pre-approval will NOT be reimbursed. The Contractor(s) MUST use S02 Attachment 1 Travel Authorization Request Form for travel pre-approval. Other documents or e-mails will NOT be accepted as pre-approval.

In order to be reimbursed for travel, the Contractor(s) shall submit supporting documentation as required by Federal Travel Regulations with invoices for expenses incurred. Expenses for subsistence and lodging will be reimbursed to the Contractor only to the extent where an overnight stay is necessary and authorized by Federal Travel Regulations in effect at the time of the stay for the specific location. Profit and G&A will not be an allowable reimbursement expense for travel. Additional information can be found at:

https://www.gsa.gov/policy-regulations/regulations/federal-travel-regulation?topnav=travel

6. Tasks and Deliverables:

Deliverable: Meeting minutes, agenda, and staff roster

Schedule of Deliverables The Contractor shall develop and maintain an Integrated Master Project Schedule (IMPS) of deliverables assigned in accordance with this PWS. The IMPS shall contain Gantt charts, and work breakdown structure.

Deliverable: Integrated Master Project Schedule

Task 2

PARA 2(B)

VA Data Collection, Reformatting and Distribution for Participation in Salary Surveys.

SUBTASK 2.1

The VA provides data files annually to submit to third-party survey sources. Files include VA employee salary data files, duty station files, LPS schedules, special rate schedule files, General Schedule (GS) locality pay schedules, Title 38 pay schedule files, Federal Wage System pay schedules, Senior Executive Service pay schedule files from VHA WMC HR CoE as needed.

Deliverable: Complete and accurate collection of VA salary data needed for submission to salary reports on behalf of the VA.

SUBTASK

2.2

Deliverable: Complete and accurate data reformatted as needed for submission to each third-party surveyor.

SUBTASK

2.3 VHA Data Distribution /Survey Participation The Contractor shall be responsible for the entire survey submission process on behalf of VA. This includes providing detailed information using employee data files and location files (see SubTask 2.1) in order to provide VHA information requested from a variety of third-party survey data companies/organizations that have been identified by VHA.

Deliverable: Complete and accurate data submitted to third-party surveyors.

TASK 3 – PARA 2(A),

(C), (D) Survey Collection/Purchasing and Analysis of Third- Party Surveys - Para 2(a) The Contractor shall purchase approximately 50 surveys on behalf of VHA. The VA approves the list of surveys to participate in and purchase.

Deliverable: Purchased surveys

SUBTASK

3.1

Deliverable: Aggregated data in the cloud-based solution

SUBTASK

3.2 Geographical Differential Analysis – Para 2(d) The Contractor shall provide geographical differentials (drilled down to city/state) for all VHA duty station locations for national survey data.

Deliverable: Geographic Differentials

TASK 4 –

PARA 2(F)

Deliverable: Enterprise Compensation Solution

A. Using established geographic differentials, solution shall apply a differential or percentage which is used to calculate survey data in order to populate salary information for a specific VHA duty station location. This survey data is then reported for all established VHA duty station locations for a wide variety of clinical, professional, administrative, technical, clerical, trade, engineering, security/law enforcement, or other healthcare occupations.

B. HR specialists will be able to apply the appropriate differential to the desired city and state. The solution shall report the national survey data based on the geographic differential for the selected location.

C. The Contractor shall provide a listing of all VHA duty station locations and the geographic differential percentage applied for the specific duty station location.

D. The solution shall also provide job titles, job descriptions along with the corresponding VHA job match, and a list of participating establishments.

E. Survey data shall include the following components: minimum and maximum rates actually paid in a given job category, published minimum and maximum rates paid, mean salary, median salary, and percentile survey data, minimum, midpoint, and maximum reported rate ranges, along with additional data for premium or differential pay rates, bonuses, any performance or merit-based pay components, etc.

F. A version of all data files and/or reports provided by the Contractor shall afford VHA the ability to import the data to an external, cloud-based compensation system.

G. Reporting capability to export survey data from multiple surveys to excel and apply the appropriate geographic differential.

H. Pay Setting tool that automates pay setting for VHA employees utilizing wage survey data, identified employee experience factors, and additional criteria to standardize pay setting throughout the enterprise

I. Compensation Solution that utilizes data and AI to review current pay, recruitment and retention trends, salary and occupational trends and projections, and geographic wage data to recommend pay adjustments or identify pay disparity.

SUBTASK

4.1

INSTRUCTION GUIDE

FOR COMPENSATION SOLUTION

Contractor will develop an instruction guide and provide training for the survey deliverable tool which shall include information on data definitions, instructions on how to utilize the enterprise compensation solution, as well as a description of how the geographic differentials were determined and applied.

Deliverable: Instruction guide and training

SUBTASK

4.2

INSTRUCTION GUIDE

UPDATES

The instruction guide shall be updated annually with newly collected VHA and third-party salary survey information and provided to the VHA WMC HR CoE Program Manager based on an agreed delivery schedule.

Deliverable: Annually updated instruction guide

TASK 5 –

PARA 2 (E)

JOB ARCHITECTURE

APPROACH

Contractor will assist VHA in developing a Job Architecture (JA) implementation plan to apply a job catalogue to career paths through career tracks and job leveling in order to support competitive benchmarking and compensation validation. Employee data will be mapped and integrated into the Enterprise Compensation Solution (see Task 4). The plan is delivered to the COR and due by the end of the contract base year.

Deliverable: Job Architecture Implementation Plan

SUBTASK

5.1

EMPLOYEE

MAPPING

Contractor will work collaboratively with VHA to review mapping of employees to the correct functions, families, career tracks and levels to align with the job architecture framework, prepare the information for upload to the Enterprise Compensation Solution.

Deliverable: Mapped employee files

SUBTASK

5.2

VALIDATE

JOB/EMPLOYEE

DATA

Contractor will match job data and employee data in the Enterprise Compensation Solution (see Task 4).

Deliverable: Accurate and complete matching of job data and employee data in the Enterprise Compensation Solution.

SUBTASK

5.3

Deliverable: Complete and accurate benchmarking implemented into the Enterprise Compensation Solution

REPORT

The Contractor shall provide a monthly summary report detailing the status of the Contractor's work on the requirements of the PWS. The report shall include project issues which arose during the preceding month and the Contractor’s actions for resolutions.

Deliverable: Monthly Progress Report

Deliverable: Meeting Agenda

SUBTASK

7.1

QUARTERLY

MEETING MINUTES

The Contractors shall provide meeting minutes for each of the Contractor led quarterly meetings. Quarterly meeting minutes shall include the Contractor's presentation, meeting attendees, discussion points during the meetings, and actions, upcoming work related to the requirements of the PWS and the IMPS.

Deliverable: Minutes of the Meeting

Formal Acceptance or Rejection of Deliverables: The Government will have ten

(10) business days to review each deliverable and provide feedback/comments. The Contractor shall have three (3) business days to incorporate feedback/comments and make appropriate revisions. The Contractor shall provide the revised version of each deliverable to the COR and VA PM. The COR will review and determine final acceptance by the Government. The COR will notify the Contractor of final acceptance within five (5) business days.

Method and Distribution of Deliverables: The Contractor shall deliver documentation in cloud-based or electronic format, unless otherwise directed in Section B of the solicitation/contract. Acceptable electronic media include the latest version of the following software, but no earlier than 2016: Microsoft (MS) 365, MS Word, MS Excel, MS PowerPoint, MS Project, MS Visio, AutoCAD, and Adobe PDF. These files must have the capability to be imported into an external site. One version of all data files and/or reports provided by the Contractor shall afford VA the ability to import the data to an external, cloud-based database or compensation system.

The Contractor shall adhere to all pertinent Veterans Affairs (VA) policy standards including but not limited to ensuring that all documentation and deliverables are provided within one week of their completion. The Contractor shall be responsible for adhering to all pertinent VA information technology policies and procedures, which are discussed in Section 10 of this PWS.

8. Changes to the Statement of Work: Only the Contracting Officer is authorized to make any changes to this PWS; and the Contract Specialist will authorize such changes only through written correspondence. The Contract Specialist will keep a copy of each change in a project folder along with all other products of the project. The Contractor shall bear any and all costs incurred by the Contractor through the actions of parties other than the Contracting Officer.

9. The COR and PM representative or any other individual (including VA or other Government agency employees or employees of other Contractors) other than the VA Contracting Officer are not authorized to make any changes of a contractually binding nature to the period of performance, funding and/or any other terms and conditions of any award resulting from this solicitation.

10. VA Information and Information System Security and Privacy Language

11.1 POSITION/TASK RISK DESIGNATION LEVEL(S) AND CONTRACTOR PERSONNEL SECURITY REQUIREMENTS

POSITION/TASK RISK DESIGNATION LEVEL(S)

Defense Central Investigations Index (DCII), FBI name check, and a FBI fingerprint check], a credit report covering a period of 5 years, written inquiries to previous employers and references listed on the application for employment; an interview with the subject, law enforcement check; and a verification of the educational degree.

The position sensitivity and the level of background investigation commensurate with the required level of access for the following tasks within the Performance Work Statement are:

Position Sensitivity and Background Investigation Requirements

X

ALL TASKS

The Tasks identified above, and the resulting Position Sensitivity and Background Investigation requirements identify, in effect, the Background Investigation requirements for Contractor individuals, based upon the tasks a particular Contractor individual will be working. The submitted Contractor Staff Roster must indicate the required Background Investigation Level for each Contractor individual based upon the tasks the Contractor individual will be working, in accordance with their submitted proposal.

11.2 VHA PERSONNEL SECURITY AND SUITABILITY PROGRAM

This Veterans Health Administration (VHA) directive defines policy and the necessary procedures for conducting background screenings to determine suitability for employment, and for managing VHA personnel security programs. It supplements the Department of Veterans Affairs (VA) policies on personnel suitability and security contained in VA Directive 0710, dated June 4, 2010, and VA Handbook 0710, dated May 2, 2016. AUTHORITY: Title 5 Code of Federal Regulations (CFR) 731.103, 1400.201.

a. Position Sensitivity Designations

1) Designation and investigative requirements of National Security positions are outlined in 5 CFR 1400.201. Each position in Federal service not designated as Non-Sensitive must be designated as Noncritical-Sensitive, Critical-Sensitive, or Special-Sensitive. These designations are dependent upon the degree of potential damage to the national security.

2) Position Sensitivity as defined in this directive is specifically related to national security, meaning that the incumbent requires classified access, eligibility, or, could bring about, by virtue of the nature of the position, a material adverse effect on national security due to activities which are directly concerned with the foreign relations of the United States, or protection of the Nation from internal subversion, foreign aggression, or terrorism. The majority of VHA positions are non-sensitive in nature (designated as “No National Security duties exist” in OPM’s PDT/PDAT). This designation does not reflect access to VA sensitive information such as PII, PHI, or protected systems.

b. Background Investigation Requirements

1) Position risk and sensitivity level designations directly determine the background investigation requirements that must be followed. Please see VA Directive 0710 and VA Handbook 0710, or subsequent policies, for additional information on required background investigations.

11.3 GOVERNMENT FURNISHED PROPERTY

The Government will not provide property to the Contractor.

11.4 VA INFORMATION AND INFORMATION SYSTEM SECURITY AND PRIVACY LANGUAGE

GENERAL. This entire section applies to all acquisitions requiring any Information Security and Privacy language. Contractors, contractor personnel, subcontractors and subcontractor personnel will be subject to the same federal laws, regulations, standards, VA directives and handbooks, as VA personnel regarding information and information system security and privacy.

VA INFORMATION CUSTODIAL LANGUAGE. This entire section applies to all acquisitions requiring any Information Security and Privacy language.

a. The Government shall receive unlimited rights to data/intellectual property first produced and delivered in the performance of this contract or order (hereinafter “contract”) unless expressly stated otherwise in this contract. This includes all rights to source code and all documentation created in support thereof. The primary clause used to define Government and Contractor data rights is FAR 52.227-14 Rights in Data – General. The primary clause used to define computer software license (not data/intellectual property first produced under this contractor or order) is FAR 52.227-19, Commercial Computer Software License.

b. Information made available to the contractor by VA for the performance or administration of this contract will be used only for the purposes specified in the service agreement, SOW, PWS, PD, and/or contract. The contractor shall not use VA information in any other manner without prior written approval from a VA Contracting Officer (CO). The primary clause used to define Government and Contractor data rights is FAR 52.227-14 Rights in Data – General.

c. VA information will not be co-mingled with any other data on the contractor’s information systems or media storage systems. The contractor shall ensure compliance with Federal and VA requirements related to data protection, data encryption, physical data segregation, logical data segregation, classification requirements and media sanitization.

d. VA reserves the right to conduct scheduled or unscheduled audits, assessments, or investigations of contractor Information Technology (IT) resources to ensure information security is compliant with Federal and VA requirements. The contractor shall provide all necessary access to records (including electronic and documentary materials related to the contracts and subcontracts) and support (including access to contractor and subcontractor staff associated with the contract) to VA, VA's Office Inspector General (OIG), and/or Government Accountability Office (GAO) staff during periodic control assessments, audits, or investigations.

e. The contractor may only use VA information within the terms of the contract and applicable Federal law, regulations, and VA policies. If new Federal information security laws, regulations or VA policies become applicable after execution of the contract, the parties agree to negotiate contract modification and adjustment necessary to implement the new laws, regulations, and/or policies.

f. The contractor shall not make copies of VA information except as specifically authorized and necessary to perform the terms of the contract. If copies are made for restoration purposes, after the restoration is complete, the copies shall be destroyed in accordance with VA Directive 6500, VA Cybersecurity Program and VA Information Security Knowledge Service.

g. If a Veterans Health Administration (VHA) contract is terminated for default or cause with a business associate, the related local Business Associate Agreement (BAA) shall also be terminated and actions taken in accordance with VHA Directive 1605.05, Business Associate Agreements. If there is an executed national BAA associated with the contract, VA will determine what actions are appropriate and notify the contactor.

h. The contractor shall store and transmit VA sensitive information in an encrypted form, using VA-approved encryption tools which are, at a minimum, Federal Information Processing Standards (FIPS) 140-2, Security Requirements for Cryptographic Modules (or its successor) validated and in conformance with VA Information Security Knowledge Service requirements. The contractor shall transmit VA sensitive information using VA approved Transport Layer Security (TLS) configured with FIPS based cipher suites in conformance with National Institute of Standards and Technology (NIST) 800-52, Guidelines for the Selection, Configuration and Use of Transport Layer Security (TLS) Implementations.

i. The contractor’s firewall and web services security controls, as applicable, shall meet or exceed VA’s minimum requirements.

j. Except for uses and disclosures of VA information authorized by this contract for performance of the contract, the contractor may use and disclose VA information only in two situations: (i) in response to a qualifying order of a court of competent jurisdiction after notification to VA CO (ii) with written approval from the VA CO. The contractor shall refer all requests for, demands for production of or inquiries about, VA information and information systems to the VA CO for response.

k. Notwithstanding the provision above, the contractor 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 medical records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse or infection with Human Immunodeficiency Virus (HIV). If the contractor is in receipt of a court order or other requests for the above-mentioned information, the contractor shall immediately refer such court order or other requests to the VA CO for response.

l. Information made available to the contractor by VA for the performance or administration of this contract or information developed by the contractor in performance or administration of the contract will be protected and secured in accordance with VA Directive 6500 and Identity and Access Management (IAM) Security processes specified in the VA Information Security Knowledge Service.

m. Any data destruction done on behalf of VA by a contractor shall be done in accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management, VA Handbook 6300.1, Records Management Procedures, and applicable VA Records Control Schedules.

n. The contractor shall provide its plan for destruction of all VA data in its possession according to VA Directive 6500 and NIST 800-88, Guidelines for Media Sanitization prior to termination or completion of this contract. If directed by the COR/CO, the contractor shall return all Federal Records to VA for disposition.

o. Any media, such as paper, magnetic tape, magnetic disks, solid state devices or optical discs that is used to store, process, or access VA information that cannot be destroyed shall be returned to VA. The contractor shall hold the appropriate material until otherwise directed by the Contracting Officer’s Representative (COR) or CO. Items shall be returned securely via VA-approved methods. VA sensitive information must be transmitted utilizing VA-approved encryption tools which are validated under FIPS 140-2 (or its successor) and NIST 800-52. If mailed, the contractor shall send via a trackable method (USPS, UPS, FedEx, etc.) and immediately provide the COR/CO with the tracking information. Self-certification by the contractor that the data destruction requirements above have been met shall be sent to the COR/CO within 30 business days of termination of the contract.

p. All electronic storage media (hard drives, optical disks, CDs, back-up tapes, etc.) used to store, process or access VA information will not be returned to the contractor at the end of lease, loan, or trade-in. Exceptions to this paragraph will only be granted with the written approval of the VA CO.

ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS. This section applies when any person requires access to information made available to the contractor by VA for the performance or administration of this contract or information developed by the contractor in performance or administration of the contract.

a. A contractor/subcontractor shall request logical (technical) or physical access to VA information and VA information systems for their employees and subcontractors only to the extent necessary to perform the services specified in the solicitation or contract. This includes indirect entities, both affiliate of contractor/subcontractor and agent of contractor/subcontractor.

b. Contractors and subcontractors shall sign the VA Information Security Rule of Behavior (ROB) before access is provided to VA information and information systems (see Section 4, Training, below). The ROB contains the minimum user compliance requirements and does not supersede any policies of VA facilities or other agency components which provide higher levels of protection to VA’s information or information systems. Users who require privileged access shall complete the VA elevated privilege access request processes before privileged access is granted.

c. All contractors and subcontractors working with VA information are subject to the same security investigative and clearance requirements as those of VA appointees or employees who have access to the same types of information. The level and process of background security investigations for contractors shall be in accordance with VA Directive and Handbook 0710, Personnel Suitability and Security Program. The Office of Human Resources and Administration/Operations, Security and Preparedness (HRA/OSP) is responsible for these policies and procedures. Contract personnel who require access to classified information or information systems shall have an appropriate security clearance. Verification of a Security Clearance shall be processed through the Special Security Officer located in HRA/OSP. Contractors shall conform to all requirements stated in the National Industrial Security Program Operating Manual (NISPOM).

d. All contractors and subcontractors shall comply with conditions specified in VAAR 852.204-71(d); Contractor operations required to be in United States. All contractors and subcontractors working with VA information must be permanently located within a jurisdiction subject to the law of the United States or its Territories to the maximum extent feasible. If services are proposed to be performed abroad the contractor must state where all non-U.S. services are provided. The contractor shall deliver to VA a detailed plan specifically addressing communications, personnel control, data protection and potential legal issues. The plan shall be approved by the COR/CO in writing prior to access being granted.

e. The contractor shall notify the COR/CO in writing immediately (no later than 24 hours) after personnel separation or occurrence of other causes. Causes may include the following:

1) Contractor/subcontractor personnel no longer has a need for access to VA information or VA information systems.

2) Contractor/subcontractor personnel are terminated, suspended, or otherwise has their work on a VA project discontinued for any reason.

3) Contractor believes their own personnel or subcontractor personnel may pose a threat to their company’s working environment or to any company-owned property. This includes contractor-owned assets, buildings, confidential data, customers, employees, networks, systems, trade secrets and/or VA data.

4) Any previously undisclosed changes to contractor/subcontractor background history are brought to light, including but not limited to changes to background investigation or employee record.

5) Contractor/subcontractor personnel have their authorization to work in the United States revoked.

6) Agreement by which contractor provides products and services to VA has either been fulfilled or terminated, such that VA can cut off electronic and/or physical access for contractor personnel.

f. In such cases of contract fulfillment, termination, or other causes; the contractor shall take the necessary measures to immediately revoke access to VA network, property, information, and information systems (logical and physical) by contractor/subcontractor personnel. These measures include (but are not limited to): removing and then securing Personal Identity Verification (PIV) badges and PIV – Interoperable (PIV-I) access badges, VA-issued photo badges, credentials for VA facilities and devices, VA-issued laptops, and authentication tokens. Contractors shall notify the appropriate VA COR/CO immediately to initiate access removal.

g. Contractors/subcontractors who no longer require VA accesses will return VA-issued property to VA. This property includes (but is not limited to): documents, electronic equipment, keys, and parking passes. PIV and PIV-I access badges shall be returned to the nearest VA PIV Badge Issuance Office. Once they have had access to VA information, information systems, networks and VA property in their possessions removed, contractors shall notify the appropriate VA COR/CO.

TRAINING.

a. All contractors and subcontractors requiring access to VA information and VA information systems shall successfully complete the following before being granted access to VA information and its systems:

1) VA Privacy and Information Security Awareness and Rules of Behavior course (Talent Management System (TMS) #10176) initially and annually thereafter.

2) Sign and acknowledge (electronically through TMS #10176) understanding of and responsibilities for compliance with the Organizational Rules of Behavior, relating to access to VA information and information systems initially and annually thereafter; and

3) Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system or information access [to be defined by the VA program official and provided to the VA CO for inclusion in the solicitation document – i.e., any role-based information security training].

b. The contractor shall provide to the COR/CO a copy of the training certificates and certification of signing the Organizational Rules of Behavior for each applicable employee within five days of the initiation of the contract and annually thereafter, as required.

c. Failure to complete the mandatory annual training 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 required training is complete.

SECURITY INCIDENT INVESTIGATION. This entire section applies to all acquisitions requiring any Information Security and Privacy language.

a. The contractor, subcontractor, their employees, or business associates shall immediately (within one hour) report suspected security / privacy incidents to the VA OIT’s Enterprise Service Desk (ESD) by calling (855) 673-4357 (TTY: 711). The ESD is OIT’s 24/7/365 single point of contact for IT-related issues. After reporting to the ESD, the contractor, subcontractor, their employees, or business associates shall, within one hour, provide the COR/CO the incident number received from the ESD.

b. To the extent known by the contractor/subcontractor, the contractor/ subcontractor's notice to VA shall identify the information involved and the circumstances surrounding the incident, including the following:

1) The date and time (or approximation of) the Security Incident occurred.

2) The names of individuals involved (when applicable).

3) The physical and logical (if applicable) location of the incident.

4) Why the Security Incident took place (i.e., catalyst for the failure).

5) The amount of data belonging to VA believed to have been compromised.

6) The remediation measures the contractor is taking to ensure no future incidents of a similar nature.

c. After the contractor has provided the initial detailed incident summary to VA, they will continue to provide written updates on any new and relevant circumstances or facts they discover. The contractor, subcontractor, and their employes shall fully cooperate with VA or third-party entity performing an independent risk analysis on behalf of VA. Failure to cooperate may be deemed a material breach and grounds for contract termination.

d. VA IT contractors shall follow VA Handbook 6500, Risk Management Framework for VA Information Systems VA Information Security Program, and VA Information Security Knowledge Service guidance for implementing an Incident Response Plan or integrating with an existing VA implementation.

e. 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 the VA Office of Security and Law Enforcement. The contractor, its employees, and its subcontractors and their employees shall cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violation(s) associated with any incident. 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.

f. The contractor shall comply with VA Handbook 6500.2, Management of Breaches Involving Sensitive Personal Information, which establishes the breach management policies and assigns responsibilities for the oversight, management and reporting procedures associated with managing of breaches.

g. With respect to unsecured Protected Health Information (PHI), the contractor is deemed to have discovered a data breach when the contractor knew or should have known of breach of such information. When a business associate is part of VHA contract, notification to the covered entity (VHA) shall be made in accordance with the executed BAA.

h. If the contractor or any of its agents fail to protect VA sensitive personal information or otherwise engages in conduct which results in a data breach involving any VA sensitive personal information the contractor/subcontractor processes or maintains under the contract; the contractor shall pay liquidated damages to the VA as set forth in clause 852.211-76, Liquidated Damages—Reimbursement for Data Breach Costs.

INFORMATION SYSTEM HOSTING, OPERATION, MAINTENANCE OR USE. This entire section applies to information systems, systems, major applications, minor applications, enclaves, and platform information technologies (cloud and non-cloud) hosted, operated, maintained, or used on behalf of VA at non-VA facilities.

a. The contractor shall comply with all Federal laws, regulations, and VA policies for Information systems (cloud and non-cloud) that are hosted, operated, maintained, or used on behalf of VA at non-VA facilities. Security controls for collecting, processing, transmitting, and storing of VA sensitive information, must be in place. The controls will be tested by VA or a VA sanctioned 3PAO and approved by VA prior to hosting, operation, maintenance or use of the information system or systems by or on behalf of VA. This includes conducting compliance risk assessments, security architecture analysis, routine vulnerability scanning, system patching, change management procedures and the completion of an acceptable contingency plan for each system. The contractor’s security control procedures shall be the same as procedures used to secure VA-operated information systems.

b. Outsourcing (contractor facility, equipment, or staff) of systems or network operations, telecommunications services or other managed services require Assessment and Authorization (A&A) of the contractor’s systems in accordance with VA Handbook 6500 as specified in VA Information Security Knowledge Service. Major changes to the A&A package may require reviewing and updating all the documentation associated with the change. The contractor’s cloud computing systems shall comply with FedRAMP and VA Directive 6517 requirements.

c. The contractor shall return all electronic storage media (hard drives, optical disks, CDs, back-up tapes, etc.) on non-VA leased or non-VA owned IT equipment used to store, process or access VA information to VA in accordance with A&A package requirements. This applies when the contract is terminated or completed and prior to disposal of media. The contractor shall provide its plan for destruction of all VA data in its possession according to VA Information Security Knowledge Service requirements and NIST 800-88. The contractor shall send a self-certification that the data destruction requirements above have been met to the COR/CO within 30 business days of termination of the contract.

d. All external internet connections to VA network involving VA information must be in accordance with VA Trusted Internet Connection (TIC) Reference Architecture and VA Directive and Handbook 6513, Secure External Connections and reviewed and approved by VA prior to implementation. Government-owned contractor-operated systems, third party or business partner networks require a Memorandum of Understanding (MOU) and Interconnection Security Agreements (ISA).

e. Contractor procedures shall be subject to periodic, announced, or unannounced assessments by VA officials, the OIG or a 3PAO. The physical security aspects associated with contractor activities are also subject to such assessments. The contractor shall report, in writing, any deficiencies noted during the above assessment to the VA COR/CO. The contractor shall use VA’s defined processes to document planned remedial actions that address identified deficiencies in information security policies, procedures, and practices. The contractor shall correct security deficiencies within the timeframes specified in the VA Information Security Knowledge Service.

f. All major information system changes which occur in the production environment shall be reviewed by the VA to determine the impact on privacy and security of the system. Based on the review results, updates to the Authority to Operate (ATO) documentation and parameters may be required to remain in compliance with VA Handbook 6500 and VA Information Security Knowledge Service requirements.

g. The contractor shall conduct an annual privacy and security self-assessment on all information systems and outsourced services as required. Copies of the assessment shall be provided to the COR/CO. The VA/Government reserves the right to conduct assessment using government personnel or a third-party if deemed necessary. The contractor shall correct or mitigate any weaknesses discovered during the assessment.

h. VA prohibits the…