S02 36C25925Q0086.docx

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY

CODE

10. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

UEI:

EFT:

PHONE:

FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only) 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. NOV 2021)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

36C25925Q0086 11-22-2024 Jim Lewis 303-712-5840 12-05-2024 2:00 pm

MST

36C259 Department of Veterans Affairs Network Contracting Office

NCO 19

6162 South Willow Drive, Suite 300 Greenwood Village CO 80111

X

532420 $40 Million Net 30

N/A

Department of Veterans Affairs Salt Lake City VA Health Care System George E. Wahlen VA Medical Center 500 Foothill Drive Salt Lake City UT 84148 36C259 Department of Veterans Affairs Network Contracting Office

NCO 19

6162 South Willow Drive, Suite 300 Greenwood Village CO 80111

Department of Veterans Affairs Financial Service Center PO Box 149971 Austin TX 78714-9971

See CONTINUATION Page Vendor to provide Mail System Lease for the Salt Lake City HCS in accordance with the PWS.

Review the Special Standards of Responsibilities (SSR) in Section E.7 on pg 56 of this document.

Solicitation questions shall be sent via email to:

james.lewis114fbb@va.gov no later than 2:00pm MST 11/26/24.

All offers must be sent via email to:

james.lewis114fbb@va.gov no later than 2:00pm MST 12/5/24.

Notice of total SDVOSB set-aside, pages 30-33, applies to all items in this solicitation.

US Dept of Labor Wage Determination No 2015-5489, Rev 24, applies to this acquisition and resulting contract.

See CONTINUATION Page

Timothy Myers Contracting Officer

Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

(continuation from Standard Form 1449, block 18A.)

(a). CONTRACT ADMINISTRATION: All contract administration matters will be handled by the following individuals:

SAM UEI: ________________________

Contracting Officer: Timothy Myers timothy.myers5@va.gov

(b). CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with:

(c). INVOICES: Invoices shall be submitted in arrears:

(d). GOVERNMENT INVOICE ADDRESS:

(1). All Invoices from the contractor shall be submitted electronically in accordance with VAAR Clause 852.232-72 Electronic Submission of Payment Requests.

Department of Veterans Affairs Financial Services Center http://www.fsc.va.gov/einvoice.asp Austin TX

(2). The contractor shall submit original invoices in proper electronic format to the Financial Services Center (FSC) through the Tungsten System. Facsimile, e-mail, and scanned documents are not acceptable forms of submission for payment requests. Proper electronic format means an automated system transmitting information electronically according to the accepted electronic data transmission methods below:

(A). VA’s Electronic Invoice Presentment and Payment System – The FSC uses a third-party contractor, Tungsten, to transition vendors from paper to electronic invoice submission. Please go to this website: http://www.tungsten-network.com/US/en/veterans-affairs/ to begin submitting electronic invoices, free of charge.

(B). Vendor e-Invoice Set-Up Information: Please contact Tungsten at the phone number or email address listed below to begin submitting your electronic invoices to the VA Financial Services Center for payment processing, free of charge. If you have question about the e-invoicing program or Tungsten, please contact the FSC at the phone number or email address listed below:

(i). Tungsten e-Invoice Setup Information: 1-877-489-6135 (ii). Tungsten e-Invoice email: VA.Registration@Tungsten-Network.com (iii). FSC e-Invoice Contact Information: 1-877-353-9791 (iv). FSC e-invoice email: vafsccshd@va.gov

(e). REFERENCE NUMBERS: Please reference both the Task Order number (to be assigned) and the Obligation Number (to be assigned) on all correspondence and invoices. If contract option years are exercised, new obligation numbers will be issued and identified on the contract modification document.

(f). AUTHORIZATIONS:

(1). The Contracting Officer (CO) named in Section (a) above is responsible for the overall administration of this contract. Only the CO has the authority to make changes which affect:

(A). Contract prices, (B). Quality, (C). Quantities, or (D). Delivery terms and conditions.

(2). Contracting Officer Representatives (COR) and Alternate Contracting Officer’s Representatives (Alt-COR) may be assigned to this contract. The COR and Alt-COR shall be provided specific written delegated authority by the CO, a copy of which will be provided to the Contractor.

B.2 PRICE/COST SCHEDULE

ITEM INFORMATION

Digital Mail System Lease including equipment, software and services for the Salt Lake City VAMC.

Contract Period: Base POP Begin: 01-01-2025 POP End: 12-31-2025 PRINCIPAL NAICS CODE: 532420 - Office Machinery and Equipment Rental and Leasing PRODUCT/SERVICE CODE: W074 - Lease or Rental of Equipment - Office Machines, Text Processing Systems, and Visible Record Equipment

Digital Mail System Lease including equipment, software and services for the Salt Lake City VAMC.

Contract Period: Option 1 POP Begin: 01-01-2026 POP End: 12-31-2026

PRODUCT/SERVICE CODE: W074 - Lease or Rental of Equipment - Office Machines, Text Processing Systems, and Visible Record Equipment

Digital Mail System Lease including equipment, software and services for the Salt Lake City VAMC.

Contract Period: Option 2 POP Begin: 01-01-2027 POP End: 12-31-2027

PRODUCT/SERVICE CODE: W074 - Lease or Rental of Equipment - Office Machines, Text Processing Systems, and Visible Record Equipment

Digital Mail System Lease including equipment, software and services for the Salt Lake City VAMC.

Contract Period: Option 3 POP Begin: 01-01-2028 POP End: 12-31-2028

PRODUCT/SERVICE CODE: W074 - Lease or Rental of Equipment - Office Machines, Text Processing Systems, and Visible Record Equipment

Digital Mail System Lease including equipment, software and services for the Salt Lake City VAMC.

Contract Period: Option 4 POP Begin: 01-01-2029 POP End: 12-31-2029

PRODUCT/SERVICE CODE: W074 - Lease or Rental of Equipment - Office Machines, Text Processing Systems, and Visible Record Equipment

36C25925Q0086

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B.3 CONTRACT ADMINISTRATION DATA

Salt Lake City VA Healthcare System

Mail Meter System Lease

1.0 Scope

The Salt Lake City VA Health Care System (SLCVA) intends to lease a digital mailing system equipment, software and services required to meter mail, provides best cost shipping options, allows for accurate reporting, accountability of volume and expenditures and traceability of mail and parcels. All applicable hardware, software and support services must adhere to the United States Postal Service (USPS) Domestic Mail Manual (DMM) www.usps.gov, and shipping partners rules and regulations of those as United Parcel Service (UPS), Federal Express (FedEx), DHL, etc.

2.0 Background

The Salt Lake City VA Medical Center mail facilities are responsible for processing all incoming and outgoing letters, parcels, and packages. In FY22, 140,000 pieces of outgoing mail items and 60,000 parcels were processed via postage machines. The facility is seeking a comprehensive method of managing and processing mail as well as the ability to track packages once they arrive at their final destination.

Leased services shall include all mail processing equipment, web-based browser software, scalable cloud-based software solution for data hosting (with web-portal access), mail facility processing accessories, handheld scanners all supported by maintenance and support services to keep all systems fully operational. Lease services additionally includes delivery, set-up, configuration, user training, complete functionality testing, thirty (30) day quantity of operating supplies and removal of old equipment (where applicable).

3.0 Period of Performance

The Period of Performance shall be for one base year plus 4 option years from date of contract award. This individual task order shall not extend further than 5 years from the date of task order award.

Base Year: January 1, 2025 – December 31, 2025 Option Year 1: January 1, 2026 – December 31, 2026 Option Year 2: January 1, 2027 – December 31, 2027 Option Year 3: January 1, 2028 – December 31, 2028 Option Year 4: January 1, 2029 – December 31, 2029

3.1 Contract Type

This is a firm fixed price contract.

3.2 Place of Performance

Equipment and services provided under this PWS shall be performed at the following locations: Salt Lake City VA Healthcare System, 500 Foothill Boulevard Salt Lake City, UT 84148.

3.3 Hours of Operation

Contractor shall respond to service calls during normal working hours (Monday through Friday 8:00 AM to 4:00 PM MST) excluding holidays observed by the Federal Government.

3.4 Recognized Holidays

The Contractor shall provide services during the facility hours of operation, except for the following federal holidays set by law (5 U.S.C. §6103), or as approved by the OCO. The following are recognized United States (US) federal holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, President’s Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day and Christmas Day.

Travel or Special Requirements This PWS includes all travel to perform the tasks associated within this contract which includes travel to and from the mail facilities for equipment delivery, implementation, training, maintenance support, services and transition activities through the period of performance. All travel costs are to be included in the firm-fixed price line items. These costs will not be directly reimbursed by the Government.

4.0 Mail System Requirements

200+ parcels/day Mail Metering Machine. VA and FedRAMP approved.

4.1 Mail System Requirements

SLCVA requires a cost effective leased, digital metered mail system, associated USPS certified postal funds meter capability for mail facilities. Equipment is to be of the latest technologies associated with mail processing. The postage metering capability shall meet the performance and volume/throughput demands of the individual facility or facilities as defined in the requirements. Mail system and software must be FedRAMP approved by VA.

The digital mail metering system provided for use at SLCVA must process at least 110 letters per minute (LPM), handle mail up to 5/8-inch thick, with a 35lb. dynamic weight scale which measures mail and determines, sets, and prints the appropriate postage (175 LPM w/o dynamic weight scale in use). The meter must have a scanner and labeler for certified mail.

4.2 Postage Meter and System Requirements

Mail facility requires an associated USPS certified postal funds meter capability for assigned mail facilities. Mail systems shall accurately scan, weigh, rate, meter, and account for all outbound mail and parcels. All equipment supplied shall have postage meters with remote capability which permit postage replenishment, usage and balance reporting and software upgrades. Postage metering capability shall meet requirements as defined in the Government Publishing Office (GPO) Code of Federal Regulations 41 CFR 102 – 192 – Mail Management, Department of Treasury’s requirement for using depositaries to hold public money, Chapter 4100 Section 4130. Mail system shall support VA carrier negotiated rates for USPS, UPS and FedEx. This includes but not limited to discounted rates these carriers have on the GSA Schedule 48 as well as any VA carrier negotiated rate for the term of the lease agreement.

Mailing system that can process outgoing mail and flats with a mixed mail feeder.

Stand-alone meter with federal funding capability.

Stand-alone Intelligent Mail Package Barcode (IMPB) processing for priority mail, first class parcels, and package services that includes computer, label printer, and >70-pound scale.

Multi-carrier capability (i.e., USPS, and UPS) to allow for rate shopping and to ensure continuity of operations for package shipments.

Electronic Return Receipt (ERR) as processed through the mail machine which includes certified barcode scanning.

Automatic and manually selectable date advance.

Minimum processing speed of 110 letters per minute.

Power stacking.

Interfaced scale automatically setting meter for correct postage.

Secure Sockets Layer (SSL) encrypted communication.

Departmental/Categories Accounting with report printer.

Open/closed flap sealing.

Touch screen display.

Automatic gum label dispenser.

Ability to export, both locally and digitally, encrypted customized reports.

Weigh on the Way (WOW)/in-line weighing to include shape-based rating.

Online services for tracking packages and viewing accounting information to include monthly reporting of number of pieces processed and dollar amount.

Must be configured to allow for best rate selection (i.e., Priority Mail Commercial base and Priority Mail Commercial Plus).

USPS – approved Information Based Indicia (IBI) system capability (printed indicia and mail system must be capable of providing USPS Commercial Base Pricing on Priority and Express Mail).

4.3 Mailing and Shipping Software Requirements

Software shall be delivered and maintained at the contractors most current version. Software and application(s) shall support seamless processing of all carriers through automatic rate shopping. Software shall automatically determine the most economical delivery method for letters, flats, and parcels by examining criteria such as applied business rules, delivery time, priority, and transportation method. Upon identifying the most economical delivery method, the system shall produce the carrier compliant label. Software shall have the ability to capture and download postage, track and determine how much postage has been downloaded; determine postage remaining on the meter, and report daily/monthly/yearly spending from the meter. Software shall be web-based allowing local and remote access to mail machines. Mail machines shall have locally stored data which includes United States and International volumes and expenditures for USPS letters/flats/packages in all mail classes; and commercially provided expedited services in all shipping classes.

4.4 Mail System Accessory Requirements

Handheld Scanners

· Handheld scanners and parcel tracking software shall process all types of mail with barcoded technology that allows traceability of items which are sent and received at mailroom or facility.

· Scanners shall be downloadable to a receipt/delivery program which can be standalone or integrated technology that allows storage of information, printability, and allows for ease of data downloads and research.

· Receiving program should have editable fields that can be created for ease of sorting by the following methods: Tracking number, Facility/VA Purchase Order Number, Item number, Address (Sender/Receiver), date, or other identifying methods as required by the facility.

· Tracking features shall include:

· Counter Signature Pad

· Low to Mid Volume 4 in. Label Printer

· Cordless Scanner

· Single Bay Cradle/Battery Charger for handheld scanner (2 each)

· Basic Operator Training – up to 4 Hrs. (2 Operators)

· PC w/ Flat Panel Monitor

Digital Scale

· Digital scales shall provide the ability to electronically weigh postal and parcel items for shipping.

· Scales shall be USB capable for downloading weight to a computer or other connected devices.

· Facility processing requires scales able to handle weight ranges from 1-35 lbs.

4.5 Maintenance Support Requirements

The contractor shall perform all mail system maintenance (both preventive and reparative). This maintenance includes all parts and labor. The contractor shall respond to all maintenance requests within 24-hours of notification. Any portion of the mail system that cannot be repaired shall be replaced within 2 days. Only qualified personnel, materials, spare parts, tool, hardware/software and network components necessary to perform the service shall be provided by the contractor.

The contractor shall repair the mail system within 24-hours after the request for the service call during the hours of 8:00 a.m. to 4:00 p.m. MST, Monday through Friday (excluding Federal holidays).

The contractor shall regularly and systematically examine, clean, lubricate, test, adjust the equipment, and as conditions warrant, repair or replace equipment included under the contract. The contractor shall ensure that the mail system operates as originally designed and installed throughout the entire awarded contract period.

· Contractor maintenance shall include preventative maintenance at manufacturer-recommended intervals.

· The contractor shall provide complete remedial and preventive maintenance for the components of the installed solution.

· The contractor shall provide all replacement component parts as required to meet original equipment performance at no additional cost to VA.

· The contractor shall provide an affixed label to equipment which identifies equipment make, model, device serial number, mail meter serial number and equipment service support and contact information.

· Manuals, handbooks or brochures shall be provided in hard copy, soft copy or with electronic access instructions, consistent with standard industry practices for the equipment or device.

4.6 Delivery, Installation, Operational Readiness and Transition Requirements The contractor shall install and make fully operational the mailing solution, including all accessories as ordered. The contractor shall complete delivery, installation, configuration, testing and operational readiness.

· The contractor shall establish internet connectivity to the postage meter for replenishment, rate change updates, etc. If applicable, contractor is to fully test remote diagnostics and troubleshooting as part of operational readiness.

· The contractor shall provide shipping of mail equipment to the mail facility or facilities at no cost to VA. VA will not reimburse contract for shipping or freight costs.

· The contractor shall remove trade-in components, old or discarded equipment from the installation site immediately after the new solution is installed and fully operational. This is done at no cost to VA.

4.7 Material and Supply Requirements

The contractor shall provide, at time of delivery, an initial thirty business day stock of supplies sufficient for the installed Mailing System. The 30-day stock of supplies shall include ink, meter tape, sealing solution and any other system specific supplies sufficient for 30 business days of average use for the Mailing System installed.

4.8 Training Requirements

The contractor shall provide training at User site(s) to at least one key operator and one alternate for each solution installed.

· The contractor shall provide and complete key operator training within two business days of the solution’s installation.

· The contractor shall schedule training in coordination with the local Mail Manager or COR.

· Training shall cover, at a minimum, the following operations: proper operation of the solution component(s), replacement and ordering of supplies, performance of routine tasks such as daily maintenance, adding postage to the meter, reporting of mail volumes and costs, locating a component’s model and serial numbers, meter serial number, and placing a service call.

4.9 Deliverables

The Contractor shall submit the following items to the Contracting Officer Representative (COR), according to the schedule below. For all the written deliverable products, electronic copies in Microsoft Office suite shall be submitted.

Schedule of deliverables

Hand-Held Scanner IAW

January 1, 2025

5.0 Contractor Performance

Contractor will provide equipment and software per this Performance Work Statement.

6.0 Government-Furnished Equipment (GFE)/Government-Furnished Information (GFI) The VA will provide Personal Computers for all workstations.

7.0 SECURITY REQUIREMENTS

The contractor will not have access to VA desktop computers, except to install approved software, nor will they have access to online resources belonging to the government while conducting services. If removal of equipment from the VA is required, any memory storage devices, such as hard drives, solid state drives and non-volatile memory units will remain in VA control and will not be removed from VA custody.

The technology solutions requested by the government for outbound shipping incorporates outside communications which will include personally identifiable information (PII). The transmission of PII data outside the VA network requires a review of the application for compliance with security protocols. The government requires the cloud component of the outbound shipping solution that provides this rating capability to have an ATO.

Privacy Officer:

The contractor, their personnel, and their subcontractors shall be subject to the Federal laws, regulations, standards, and VA Directives and Handbooks regarding information and information system security as delineated in this contract.

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. However, it is the policy of VA to forgo collection of liquidated damages in the event the contractor provides payment of actual damages in an amount determined to be adequate by the agency.

BAA for contractor is required and will be on file.

VA Handbook 6500.6, Contract Security APPENDIX C

GENERAL

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

ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS

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

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

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

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

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

SECURITY INCIDENT INVESTIGATION

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

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

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

d) In instances of theft or break-in or other criminal activity, the contractor/subcontractor must concurrently report the incident to the appropriate law enforcement entity (or entities) of jurisdiction, including the VA OIG and Security and Law Enforcement. The contractor, its employees, and its subcontractors and their employees shall cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violation(s) associated with any incident. 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.

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.

c) Each risk analysis shall address all relevant information concerning the data breach, including the following:

(1) Nature of the event (loss, theft, unauthorized access);

(2) Description of the event, including:

a) date of occurrence;

b) data elements involved, including any PII, such as full name, social security number, date of birth, home address, account number, disability code;

(3) Number of individuals affected or potentially affected;

(4) Names of individuals or groups affected or potentially affected;

(5) Ease of logical data access to the lost, stolen or improperly accessed data in light of the degree of protection for the data, e.g., unencrypted, plain text;

(6) Amount of time the data has been out of VA control;

(7) The likelihood that the sensitive personal information will or has been compromised (made accessible to and usable by unauthorized persons);

(8) Known misuses of data containing sensitive personal information, if any;

(9) Assessment of the potential harm to the affected individuals;

(10) Data breach analysis as outlined in 6500.2 Handbook, Management of Security and Privacy Incidents, as appropriate; and

(11) Whether credit protection services may assist record subjects in avoiding or mitigating the results of identity theft based on the sensitive personal information that may have been compromised.

a. Based on the determinations of the independent risk analysis, the contractor shall be responsible for paying to the VA liquidated damages in the amount of $37.50 per affected individual to cover the cost of providing credit protection services to affected individuals consisting of the following:

i. Notification;

ii. One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports;

iii. Data breach analysis;

iv. Fraud resolution services, including writing dispute letters, initiating fraud alerts and credit freezes, to assist affected individuals to bring matters to resolution;

v. One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and

vi. Necessary legal expenses the subjects may incur to repair falsified or damaged credit records, histories, or financial affairs.

TRAINING

Per VA Handbook 6500.6, Contract Security Appendix C, 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.]

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.

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.

BUSINESS ASSOCIATE AGREEMENT (BAA) COMPLIANCE:

Contractor shall enter into a business associate agreement (BAA) with the VA as outlined in VHA Handbook 1600.1.

Business Associate: A business associate is an entity, including an individual, company, or organization that, on behalf of the VHA facility, performs or assists in the performance of functions or activities involving the use or disclosure of PHI, or that provides certain services involving the disclosure of PHI by VHA.

Disclosure: Disclosure is the release of, transfer of, provision of access to, or divulgence in any manner of, information outside VHA. NOTE: The only exception to this definition is when the term is used in the phrase “accounting of disclosures.”

Protected Health Information (PHI): PHI is individually-identifiable health Information transmitted or maintained in any form or medium. NOTE: PHI excludes Employment records held by a covered entity in its role as an employer.

RECORDS MANAGEMENT:

A. Applicability This clause applies to all Contractors whose employees create, work with, or otherwise handle Federal records, as defined in Section B, regardless of the medium in which the record exists.

B. Definitions “Federal record” as defined in 44 U.S.C. § 3301, includes all recorded information, regardless of form or characteristics, made or received by a Federal agency under Federal law or in connection with the transaction of public business and preserved or appropriate for preservation by that agency or its legitimate successor as evidence of the organization, functions, policies, decisions, procedures, operations, or other activities of the United States Government or because of the informational value of data in them.

The term Federal record:

(1) includes VA records.

(2) does not include personal materials.

(3) applies to records created, received, or maintained by Contractors pursuant to their VA contract.

(4) may include deliverables and documentation associated with deliverables.

C. Requirements

(1) Contractor shall comply with all applicable records management laws and regulations, as well as National Archives and Records Administration (NARA) records policies, including but not limited to the Federal Records Act (44 U.S.C. chs. 21, 29, 31, 33), NARA regulations at 36 CFR Chapter XII Subchapter B, and those policies associated with the safeguarding of records covered by the Privacy Act of 1974 (5 U.S.C. 552a). These policies include the preservation of all records, regardless of form or characteristics, mode of transmission, or state of completion.

(2) In accordance with 36 CFR 1222.32, all data created for Government use and delivered to, or falling under the legal control of, the Government are Federal records subject to the provisions of 44 U.S.C. chapters 21, 29, 31, and 33, the Freedom of Information Act (FOIA) (5 U.S.C. 552), as amended, and the Privacy Act of 1974 (5 U.S.C. 552a), as amended and must be managed and scheduled for disposition only as permitted by statute or regulation.

(3) In accordance with 36 CFR 1222.32, Contractor shall maintain all records created for Government use or created in the course of performing the contract and/or delivered to, or under the legal control of the Government and must be managed in accordance with Federal law. Electronic records and associated metadata must be accompanied by sufficient technical documentation to permit understanding and use of the records and data.

(4) VA and its contractors are responsible for preventing the alienation or unauthorized destruction of records, including all forms of mutilation. Records may not be removed from the legal custody of [Agency] or destroyed except for in accordance with the provisions of the agency records schedules and with the written concurrence of the Head of the Contracting Activity. Willful and unlawful destruction, damage or alienation of Federal records is subject to the fines and penalties imposed by 18 U.S.C. 2701. In the event of any unlawful or accidental removal, defacing, alteration, or destruction of records, Contractor must report to VA. The agency must report promptly to NARA in accordance with 36 CFR 1230.

(5) The Contractor shall immediately notify the appropriate Contracting Officer upon discovery of any inadvertent or unauthorized disclosures of information, data, documentary materials, records or equipment. Disclosure of non-public information is limited to authorized personnel with a need-to-know.

(6) The Contractor shall ensure that the appropriate personnel, administrative, technical, and physical safeguards are established to ensure the security and confidentiality of this information, data, documentary material, records and/or equipment is properly protected. The Contractor shall not remove material from Government facilities or systems, or facilities or systems operated or maintained on the Government’s behalf, without the express written permission of the Head of the Contracting Activity. When information, data, documentary material, records and/or equipment is no longer required, it shall be returned to VA control or the Contractor must hold it until otherwise directed. Items returned to the Government shall be hand carried, mailed, emailed, or securely electronically transmitted to the Contracting Officer or address prescribed in the contract. Destruction of records is EXPRESSLY PROHIBITED unless in accordance with Paragraph (4).

(7) The Contractor is required to obtain the Contracting Officer's approval prior to engaging in any contractual relationship (sub-contractor) in support of this contract requiring the disclosure of information, documentary material and/or records generated under, or relating to, contracts. The Contractor (and any sub-contractor) is required to abide by Government and VA guidance for protecting sensitive, proprietary information, classified, and controlled unclassified information.

(8) The Contractor shall only use Government IT equipment for purposes specifically tied to or authorized by the contract and in accordance with VA policy.

(9) The Contractor shall not create or maintain any records containing any non-public VA information that are not specifically tied to or authorized by the contract.

(10) The Contractor shall not retain, use, sell, or disseminate copies of any deliverable that contains information covered by the Privacy Act of 1974 or that which is generally protected from public disclosure by an exemption to the Freedom of Information Act.

(11) The VA owns the rights to all data and records produced as part of this contract. All deliverables under the contract are the property of the U.S. Government for which VA shall have unlimited rights to use, dispose of, or disclose such data contained therein as it determines to be in the public interest. Any Contractor rights in the data or deliverables must be identified as required by FAR 52.227-11 through FAR 52.227-20

Note: To the extent an agency requires contractors to complete records management training, the agency must provide the training to the contractor.]

D. Flowdown of requirements to subcontractors

(1) The Contractor shall incorporate the substance of this clause, its terms and requirements including this paragraph, in all subcontracts under this [contract vehicle], and require written subcontractor acknowledgment of same.

(2) Violation by a subcontractor of any provision set forth in this clause will be attributed to the Contractor.

VA INFORMATION CUSTODIAL LANGUAGE

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

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

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

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

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

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

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

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

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

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