SOW Improve Central Utility Plant DRAFT.pdf

DRAFT

DESIGN SCOPE OF WORK

Project 593-22-350

Improve Central Utility Plant VA Southern Nevada Healthcare System

PROJECT SUMMARY

This project will replace several pieces of equipment in the Central Utility Plant that are beyond their serviceable life. This project will also provide catwalk access for existing serviceable equipment that is currently inaccessible in the existing plant configuration. Corrections to the cooling tower heights and incorporation of fuel oil monitoring into the automated controls will also be addressed. The goal of this work is to provide system redundancy and longevity to support the Hospital’s goals in patient care.

SCOPE

VASNHS is procuring Architects-Engineers (A-E) services for the design of project 593-22-350, CUP Equipment Replacement and Upgrades. The design scope includes the following:

1. Construction package for CUP equipment replacement and upgrades that meet current VA Design guides. Equipment replacement includes but is not limited to the following:

a. Replacement of the heat recovery system in the boiler room.

b. Replace the existing water softener copper piping with new stainless steel piping and add polisher for a redundant system.

c. Reconfigure the non-return valve at the top of boiler #3 into a horizontal configuration.

d. Replace the existing corroded condensate return/surge tank with a new stainless steel tank.

e. Extend/connect catwalk above boiler room for access to air handlers.

f. Replace windows with operable louvers in Boiler room above overhead door

(interlock to close with fire alarm activation).

g. Automate back-up pumps located in Building 5 basement – Controls in Building 2 boiler room.

h. Automate fuel oil system located in Building 3 and locate controls in Building 2 boiler room.

i. Integrate fuel tank system to Hayz Cleveland controls in Building 2 boiler room (9 tanks total –only 4 tanks are currently showing on the system).

j. Separate 2 of the 5 condenser pumps onto their own dedicated power source bank (MCC).

k. Replace 5 existing condenser pumps with high efficiency double impeller or raise the cooling towers and extend screen wall around cooling tower yard. The A/E shall determine the best solution.

l. Install secondary water supply to cooling towers from 10” waterline at east side of

CUP.

m. Upgrade facility-wide Lutron lighting controls as needed for single point monitoring in CUP control room.

n. Add ladders/stairs and extend catwalks in chiller room for improved access to serviceable equipment.

o. Install steel overhang at east side of chiller room approx. 50’ x 50’.

p. Provide concrete pad at east side of Bldg 2 between curbing and fence approx.

15’ x 150’.

q. Provide concrete pad at southwest side of Bldg 3 approx. 75’ x 75’.

r. Install equipment maintenance fabric shade canopy at south of Bldg 2 and west of Bldg 3 approx. 50’ x 75’.

s. Add small building extension to house a new summer boiler (approx. 500 S.F.).

2. Construction Period Services.

The project is located at the VASNHS campus, 6900 N. Pecos Rd., North Las Vegas, NV, Project 593-22-350. The A/E shall provide investigative and professional services as required by this SOW to produce the following contract documents:

1. Design Analysis

2. Design Development (DD) – 35%, 65%, 95%

3. Construction Documents (CD) – 100%

4. Specifications

5. Construction Phasing Plan

6. Estimated construction schedule

7. Construction cost estimate.

The A/E’s design shall meet applicable VA Design and Construction criteria in the Technical Information Library (TIL), state, local, and federal regulations, and other standards as defined in this SOW. The final output of this design project shall be a Construction Document package that will be used as contract documents to procure Construction Services. The A/E’s design documents shall include the following:

1. Phasing plans for demolition and construction operations in all areas. The Designer will need to work closely with the VA COR and Functional Area Staff to develop appropriate phasing for each area to minimize impact to CUP operations.

2. Drawings shall detail Interim Life Safety Measures (ILSM) for any phases that creates NFPA 101 Life Safety Code Deficiencies.

3. Drawings shall detail haul routes for each phase including all ICRA requirements for those routes.

DESIGN PHASES AND REQUIREMENTS

Design Analysis Document

Provide a Design Analysis (DA) divided into appropriate technical disciplines (Civil, Architectural, Mechanical, etc.). A DA shall be submitted with each submittal package at each design submission per this SOW. The DA at each submittal shall reflect any changes from previous design reviews. The design analysis shall at a minimum provide the following items:

1. Provide a Basis of Design Narrative. The narrative shall be a presentation of facts, sufficiently complete, to demonstrate full understanding of the project concept, and that subsequent design details, and their ultimate presentation in the final drawings and specifications, will be based on sound architectural and engineering decisions.

The narrative shall summarize the A/E’s understanding of the project scope, code analysis for each discipline, type of construction, building systems, and existing site conditions.

2. Provide design calculations for each discipline (architectural, structural, civil, mechanical, electrical, fire protection, etc.) if applicable.

3. Summarize applicable VA, federal, state, and local regulations, codes and standards, with distinction made as to which reviews, approvals, and permits are required before, during, and after the construction stage.

4. Shall reflect the current state of design at each stage of submission and reflect changes in the design development due to review comments, formal changes to the contract, or any other official communication (written or oral) between VA and AE.

5. Each DA submittal shall include design review comments with A/E responses from respective design phase.

Design Development (DD) Phase (35%, 65%, 95%)

Design development includes work by the A/E required to represent the project as a set of drawings conveying the major intent of the project. At this stage of project design the physical layout of the new facility and systems should be developed and refined for each submittal. The A/E shall submit DD submittals in a single package per the phases and submittals defined in the submittal table. VA will provide design review comments after each design submittal

DD review comments returned by VA to A/E will generally cover the following:

1. General Comments

2. Drawing Comments

3. Phasing Plan Comments

4. Specifications Comments

5. Cost Estimate Comments

6. Schedule Comments

Construction Documents (CD) Phase (100%)

The construction documents submission shall combine updates of all earlier sets of specifications and drawings and any other relevant project information (meetings, other discussions, etc.) making up a complete set of project documents. The quality and level of detail in the CD submission should be such that no further changes are required before soliciting the package to construction contractor. The CD submission shall incorporate all changes needed from earlier reviews and that a quick review shall show all information is presented in clear and concise format. The A/E shall submit CD submittals in a single package per the phases and submittals defined in the submittal table.

PERIOD OF PERFORMANCE

The Period of Performance will begin upon issuance of a Notice to Proceed from VA Contracting. The project requires all tasks defined within this SOW be completed within 180 calendar days after NTP.

Design Schedule

A/E shall develop and submit a design schedule within 5 business days of NTP. The schedule shall be developed based on the critical path Method (CPM) showing at a minimum the milestones and durations in the table below. A/E shall maintain the schedule to reflect any changes made throughout the design period. A/E shall re-submit the schedule if changes are made. A/E shall develop durations for all items below that do not have durations. Complete design schedule must fall within the period of performance as defined in the SOW.

Description Duration VA Review

Total Days Media

Notice of Award/NTP 0 0 0 Teleconference

Kick‐off Meeting 10 0 10 In‐person

35% Design Review 30 Days 14 54 In‐person

65% Design Review 50 Days 14 118 In‐person

95% Design Review 21 Days 14 153 Teleconference

100% Construction Document 13 Days 14 180 Teleconference

* Duration defined by A/E in schedule submittal and approved by VA

Submission Requirements for Deliverables

Upon completion of each design phase the A/E shall furnish the required documents in accordance with the Submittal Table below.

All deliverables submitted as PDF files shall be searchable and contain a bookmarked Table of Contents linked to respective sections, title pages, etc. Drawings in PDF shall have bookmarks for each drawing page within a table of contents to allow quick navigation to individual drawing sheets. Specifications in PDF shall have a linked Table of Contents down to the Subpart level (Example Section 23 21 13 Hydronic Piping, Part 1 – General, 1.1 – Description). Each level shall have a respective link in the TOC). All digital files shall be submitted on a DVD. Submittal title pages or DVD labels shall contain at minimum the following; Project Name, Client Name (VA Southern Nevada Health Care System), Contract Number, Project Number, Submittal phase, Name of AE, Submittal Date. Provide hard copies of all submittals per the Submittal Table below.

Submit all 2D design drawings in AutoCAD 2019 (DWG) and Adobe PDF. Submit all BIM files as Autodesk Revit 2019 (RVT).

SUBMITTAL TABLE

Submission Phase

Submittals Hard Copies

Qt.

Paper Size for Hard Copies

Digital File Formats

NTP + 10

business days

Design QA/QC Plan 1 8 ½ x 11 inch PDF

Design CPM Schedule 1 11 x 17 PDF

35%

Drawings 2 each

ARCH F – 42 inches by 30 inches and

Half Size

PDF, DWG

Outline Specifications 2 8 ½ x 11 inch PDF

Design Analysis 2 8 ½ x 11 inch PDF

Phasing Plan 2 8 ½ x 11 inch PDF

Cost Estimate 2 8 ½ x 11 inch PDF

65%

Drawings 2 each

ARCH F – 42 inches by 30 inches and

Half Size

PDF, DWG

Redline Specifications 2 8 ½ x 11 inch PDF

Specification Submittal Register

2 8 ½ x 11 inch PDF, Excel

Design Analysis 8 ½ x 11 inch PDF

Phasing Plan 2 8 ½ x 11 inch PDF

CPM Estimated Construction Schedule

2 11 x 17 inch MS Project, PDF

Cost Estimate 2 8 ½ x 11 inch PDF

95%

Drawings 2 each

ARCH F – 42 inches by 30 inches and

Half Size

PDF, DWG

Redline Specifications 2 8 ½ x 11 inch PDF

Specification Submittal Register

2 8 ½ x 11 inch PDF, Excel

Design Analysis 8 ½ x 11 inch PDF

2 8 ½ x 11 inch

PDF

Phasing Plan

CPM Estimated Construction Schedule

2 11 x 17 inch MS Project, PDF

Cost Estimate 2 8 ½ x 11 inch PDF

100%

Drawings 2 each

ARCH F – 42 inches by 30 inches and

Half Size

PDF, DWG

Specifications 2 8 ½ x 11 inch PDF

Specification Submittal Register

2 8 ½ x 11 inch PDF, Excel

Design Analysis 2 8 ½ x 11 inch PDF

Phasing Plan 2 8 ½ x 11 inch PDF

CPM Estimated Construction Schedule

2 11 x 17 inch MS Project, PDF

Cost Estimate 2 8 ½ x 11 inch PDF

Stamping of Contract Deliverables

The A/E shall stamp/seal and date construction document drawings and specifications as follows:

1. Each deliverable (drawings and specifications) shall have a certified cover document showing for each discipline the name and stamp or seal of the professional who supervised the work, and the date each stamp or seal was affixed; or

2. An electronic equivalent that indicates for each discipline the name, stamp or seal of the professional who supervised the work, and the date each stamp or seal was affixed.

Design Within Funding Limitation

The estimated construction contract price for the project described in this scope of work is $10,000,000 and shall be the design to limit for this contract.

References

The references below provide essential but not all-inclusive references. Refer to individual technical documents in the Technical Information Library for all VA Design and Construction Criteria. The A/E will be responsible for reviewing the guidelines in the TIL and incorporating the applicable criteria into the design and construction documents.

Comprehensive VA design guidelines and specifications can be found at the Technical Information Library (TIL) at http://www.cfm.va.gov/TIL.

Conflicting criteria shall be brought to the attention of the VA Contracting Officer for resolution.

VA Standard Title/Section

PG 18-15: Volume C, A/E Submission Instructions for Minor and NRM Construction Program Design Manuals PG-18-10: Architectural Design Manual Design Guide PG-18-12 Surgical and Endovascular Services Program Guide PG-18-14 Room Finishes, Door, and Hardware Schedule DESIGN AND CONSTRUCTION PROCEDURES PG-18-3 Topics: 01 Codes, Standards and Executive Orders; 02 Drawings Manual for Preparation for Cost Estimates and Related Documents for VA Facilities Program Guide PG-18-1 Master Construction Specifications Program Guide PG-18-3 Design and Construction Procedures Program Guide PG-18-4 Standard Details and CAD Standards Program Guide PG-18-10 Design Manuals Program Guide PG-18-12 Design Guides Program Guide PG-18-13 Barrier Free Design Standard Environmental Compliance Manual (PG-18-17)

COST ESTIMATE REQUIREMENTS

A/E will provide a cost estimate as defined in the submittal table. Cost estimates at each DD phase shall be progressively more detailed through addition of Level 2 (Group Element) and 3 (Individual Element) line items within the Uniformat II Work Breakdown Structure (WBS).

Cost estimates at Construction Document phase shall be developed from a majority of Level 4 (Assemblies) items under the Uniformat II WBS.

CONSTRUCTION SCHEDULE REQUIREMENTS

A/E shall provide an estimated construction schedule at each design phase per the submittal table. The schedule shall be task oriented, indicating the number of calendar days, after Notice to Proceed, by which milestones are to be achieved. The critical path Method (CPM) shall be used to generate the construction schedule. The schedule will clearly show the critical path for the overall estimated completion of construction. The schedule, as a minimum, shall show the milestones in the table below.

35% 65% 95% 100%

NTP X X X X

Phase # X X X X

Phase # ICRA Install X X X

Phase # Demolition Start X X X

Phase # New Floor System Install X X X

Phase # Final Inspection, ICRA Removal, Completion of Phase

X X X

CONSTRUCTION PERIOD SERVICES

A/E shall provide the following services during the 240 Day construction period of this project:

1. Review of Construction Contractor Submittals: A/E shall review all material submittals, shop drawings, test reports, and any other items requiring review in the construction package specifications. Reviews shall be completed, and submittals returned to the VA COR within 10 calendar days from the A/E's receipt of the submittal.

2. Review of Requests for Information (RFI), Change Orders, and Costs: A/E shall provide analysis of construction contractor requests for information; change orders;

and resulting cost adjustments due to omissions, errors, ambiguities, etc. RFI response time shall be 10 calendar days from the A/E's receipt of RFI.

3. Scheduling and attendance of weekly OAC (Owner, Architect, Contractor) teleconference meetings with the VA COR and the contractor. The A/E shall generate meeting minutes and distribute to the VA COR and contractor documenting all items discussed and responsible parties of any follow-up required.

4. The A/E shall attend a minimum of eight (8) OAC meetings on-site followed by a progress walk of the ongoing construction. The A/E shall generate field reports after each walk and distribute to the VA COR and contractor documenting the construction progress and any potential conflicts.

5. The A/E shall schedule and perform a punch walk on-site once the OAC team determines the work is substantially complete. The A/E shall generate a list of comments with photographs documenting conflicts, poor craftsmanship, missing equipment, damaged materials, etc., and submit to the VA COR and contractor within 5 days of the punch walk completion. The contractor will then have two weeks to make any repairs and corrections before the A/E schedules and performs a back-check on-site of the punch list items.

6. A/E shall develop As-built drawings based on record drawings from the construction contractor. The A/E shall submit final digital PDF and DWG as-built files on a CD/DVD to the VA COR.

DESIGN QUALITY ASSURANCE/QUALITY CONTROL

To reduce design errors and omissions, the Design team shall develop and execute a QA/QC plan that demonstrates the project plans and specifications have gone through a rigorous, thorough review and coordination effort.

Within 10 business days after receipt of Notice to Proceed, the Design team shall submit a QA/QC plan describing each task that will be taken during development of the various design submission packages of the project; name of Design team member responsible for QA/QC for Contracting Officer approval. Each task shall be initialed and dated by the responsible Design team member.

The QA/QC shall also cover the construction phase of the project and accompany the 100% final design document submittal package.

(QA/QC) plan:

a. Submit and maintain a Design Quality Control (DQC) Plan as an effective quality control program which assures that all services required by this contract are performed and provided in a manner that meets professional architectural and engineering quality standards. As a minimum, all documents must be technically reviewed by competent, independent reviewers identified in the DQC Plan. The same element that produced the product may not perform the independent technical review (ITR). Correct errors and deficiencies in the design documents prior to submitting them to the Government.

b. Include the design schedule in the master project schedule, showing the sequence of events involved in carrying out the project design tasks within the specific Contract period. This should be at a detailed level of scheduling sufficient to identify all major design tasks, including those that control the flow of work. Include review and correction periods associated with each item. This should be a forward planning as well as a project monitoring tool. If the schedule is changed, submit a revised schedule reflecting the change within 5 business days. Include in the DQC Plan the discipline-specific checklists to be used during the design and quality control of each submittal. Submit at each design phase as part of the project documentation these completed discipline-specific checklists. Design Review Checklists are located on the TIL website under the PG-18-15 Minimum Requirements for A/E Submissions.

c. Implement the DQC Plan by a Design Quality Control Manager who has the responsibility of being cognizant of and assuring that all documents on the project have been coordinated. This individual must be a person who has verifiable engineering or architectural design experience and is a registered professional engineer or architect.

Notify the Contracting Officer, in writing, of the name of the individual, and the name of an alternate person assigned to the position.

PRE-DESIGN SITE INVESTIGATION

The A/E shall conduct a site investigation to verify existing conditions of the project areas.

The site investigation shall be scheduled for a minimum of one day and be coordinated with the VA COR. The A/E shall verify the as-built locations, configuration, and capacities of all equipment, piping, walls, floor drains, etc and shall not solely rely on the record drawings.

DESIGN MEETINGS

The A/E shall attend the following meetings at the VASNHS Campus:

1. Design Kick-off meeting (Kick-off meeting shall be held within 10 business days of Design NTP)

2. 35% Design Review Meeting

3. 65% Design Review Meeting

The A/E shall attend the following meetings via conference call:

1. 95% Design Review Meeting

2. 100% Construction Document Meeting

If required by VA COR the A/E shall schedule bi-weekly design meetings. Design meetings shall be held via teleconference. The A/E shall record minutes for all conferences and meetings. The minutes shall be sent to all attendees within 3 business days of meeting for review and comment. The A/E shall incorporate comments, finalize meeting minutes, and send final minutes to all attendees within 5 business days of respective meeting or conference.

REFERENCE MATERIALS

The government will provide the following materials to the contractor for reference during the design phases:

Item Description Provided Format Project Area Drawing With SOW Separate PDF Doc Hospital As-Built Drawings As requested by A/E AutoCAD Files

PRICING

The A/E shall provide a fee for the required services using the format applicable to the Request for Proposal document issued by the Government Contracting Officer.

GOVERNMENT REVIEWS

The government requires 10 business days to review and respond to submittals and RFIs unless otherwise modified by this SOW.

HOURS OF OPERATION AND HOLIDAYS

Normal duty hours are 8:00 AM – 4:30 PM, Monday thru Friday not including standard Federal Holidays. Federal Holidays can be obtained on OPM’s website (www.opm.gov). All work performed shall be coordinated and scheduled thru the COR. Any off-duty work must be coordinated with the COR at least 2 weeks prior to the work taking place.

VA SECURITY REQUIREMENTS FOR CONTRACTORS

All contractor’s and subcontractor’s personnel shall be subject to VA Directive 0735, Homeland Security Presidential Directive 12 (HSPD-12) Program, Federal laws, regulations, standards, and VA Handbooks similar to VA personnel regarding information and information system security.

a. Non-Personal Identity Verification (PIV) Card requests shall be submitted to VA COR

(Contracting Officer Representative) by the contractor. Request submission is the contractor’s responsibility to properly fill out the documents identified below. These documents will become a package for submission of Non PIV Card application.,

1. VA Fingerprinting form

2. Declaration for Federal Employment (OF306), if there are any questions that were answered “yes” on item 9-13 on this form, fill out the appropriate addendum and include in the package.

3. Authorization For Release of Information (VA Form 0710)

4. Self-Certification of Continuous Service

5. Contractor Background Investigation Request

b. Non PIV Card process may take 30-45 days, depending on the contractor’s personnel background check, Special Agreement Check (SAC). SAC is an automated records check conducted by the Federal Bureau of Investigation in collaboration with the Office of Personnel Management (OPM).

c. Non-PIV Card Applicant is subject to National Agency Check with written Inquiries (NACI) conducted by OPM. This investigation covers a period of 5 years and a review of current records in the OPM Security Investigation Index (SII), DOD Defense Central Investigations Index (DCII), FBI name check, and FBI fingerprint check as well as written inquiries from previous employers and references on the application for employment. It is used for Non-sensitive or Low Risk positions in VA.

d. Once all documents are completely and properly filled out, hand carry and submit to VA COR. Do not send completed forms through email due to Personal Identifiable Information.

e. VA COR will then provide all documents to Engineering Service’s VA PIV

Sponsor/Manager to initiate the Non-PIV process.

f. PIV Sponsor/Manager will notify each applicant when to proceed for fingerprinting appointment.

g. Each applicant shall be fingerprinted at VA Southern Nevada Healthcare System’s PIV

Office, located first floor in Building 6 (Administration Building), 6900 N. Pecos Road, N.

Las Vegas, NV 89086. Each applicant shall sign in at the Security Desk.

h. VA COR or PIV Sponsor/Manager will provide status of each applicant’s Non-PIV Card.

i. Non-PIV Card is critical for the construction start date, as the contractor’s personnel without Non PIV Card may result with a restricted, limited, or no access to the job site. See attached blank forms/documents that is required for submission of Non PIV Card application for each of contractors/sub-contractors

SECURITY REQUIREMENTS FOR UNCLASSIFED INFORMATION TECHNOLOGY

SECURITY RESOURCES

a. The contractor and their personnel shall be subject to the same Federal laws, regulations, standards and VA polices as VA personnel, regarding information and information system security. These include, but are not limited to Federal Information Security Management Act (FISMA), Appendix III of OMB Circular A-130, and guidance and standards, available from the Department of Commerce’s National Institute of Standards and Technology (NIST). This also includes the use of common security configuration available from NIST’s Web site at: http://checklists.nist.gov.

b. To ensure that appropriate security controls are in place, contractors must follow the procedures set forth in “VA Information and Information System Security/Privacy Requirements for IT Contractors” located at the following site: http://www.iprm.oit.va.gov.

c. These provisions shall apply to all contracts in which VA sensitive information is stored, generated, transmitted, or exchanged by VA, a contractor, subcontractor or a third-party, or on behalf of any of these entities regardless of format or whether it resides on a VA system or contractor/subcontractor’s electronic information system(s) operating for or on the VA behalf.

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.

e. The contractor or subcontractor must notify the COR 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 COR must also be notified immediately by the contractor or subcontractor prior to an unfriendly termination.

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 COR 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 an 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. In accordance with 45 CFR 164.502(e), the Privacy Rule includes exceptions to the Business Associate Standard. This requirement meets the exception and does not require a Business Associate agreement in order for Covered Entity to disclose Protected Healthcare Information to the contractor for treatment.

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. The records created in accordance with this contract belong to the VASNHS and should be returned to the VASNHS and/or destroyed in accordance with VHA RCS 10-1.

Destruction should only occur with advance notice and guidance from the Records Management Officer at the VASNHS. Records shall be safeguarded in accordance with the Privacy Act, Health Insurance Portability and Accountability Act (HIPAA) and the VASNHS Release of Information Unit. Patient Medical information is considered privileged and shall not be disclosed or revealed in any way without prior written permission from the VA Chief, Health Information Management Section.

k. The Contractor shall only release medical information obtained during the course of this contract to those VA staff members involved in the necessary management and treatment of that individual patient. Patient list and name of patients are considered privileged information and shall not be disclosed or revealed in any way for use outside the Contractor without prior written permission from the referring VA Chief of Staff.

Veterans requesting copies of medical information generated by the contractor will be referred to the VASNHS Release of Information Unit.

l. Except for uses and disclosures of VA information authorized by this contract for performance of the contract, the contractor/subcontractor may use and disclose VA information only in two other situations: (i) in response to a qualifying order of a court of competent jurisdiction, or (ii) with VA’s prior written approval. The contractor/ subcontractor must refer all requests for, demands for production of, or inquiries about, VA information and information systems to the VASNHS Release of Information Unit for response.

m. Notwithstanding the provision above, the contractor/subcontractor shall not release VA records protected by Title 38 U.S.C. 5705, confidentiality of medical quality assurance records and/or Title 38 U.S.C. 7332, confidentiality of certain health records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse, or infection with human immunodeficiency virus. If the contractor/subcontractor is in receipt of a court order or other requests for the above mentioned information, that contractor/ subcontractor shall immediately refer such court orders or other requests to the VASNHS Release of Information Unit for response.

n. All electronic storage media used on non-VA leased or non-VA owned IT equipment that is used to store, process, or access VA information must be handled in adherence with VA Handbook 6500.1, Electronic Media Sanitization upon: (i) completion or termination of the contract or (ii) disposal or return of the IT equipment by the contractor/subcontractor or any person acting on behalf of the contractor/subcontractor, whichever is earlier.

Media (hard drives, optical disks, CDs, back-up tapes, etc.) used by the contractors/subcontractors that contain VA information must be returned to the VA for sanitization or destruction or the contractor/subcontractor must self-certify that the media has been disposed of per 6500.1requirements. This must be completed within 30 days of termination of the contract.

The C&A requirements do not apply, and that a Security Accreditation Package is not required.

Ensure that a Contractor Security Control Assessment (CSCA) is completed within 30 days of contract approval and yearly on the renewal date of the contract.

Ensure that the CSCA is sent to the ISO and the OCS Certification Program Office for review to ensure that appropriate security controls are being implemented in service contracts.

Ensure a copy of the CSCA is maintained in the Security Management and Reporting Tool (SMART) database. COR will provide a copy of the completed CSCA to ISO for uploading into SMART database.

HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA):

Contractor shall take reasonable measures to ensure patient privacy and confidentiality. The contractor agrees to take all reasonable precautions to safeguard patient information from unauthorized access or modification, in both electronic and hard-copy formats. This includes not only electronic security measures such as “strong” user passwords on computer systems, but also physical barriers to prevent unauthorized use of computer work-stations;

that hard copy patient files are in secured lockable areas, that files are in lockable cabinets, that the cabinets can in fact be locked, i.e., keys are available, and the locking mechanisms work properly. This precaution also includes the proper transfer of patient information via electronic means, such as faxing or system to system transmission.

That only the minimum necessary patient information is used to provide appropriate service to the correct patient.

That the undersigned understands that all parties are bound by the requirements of the “Health Insurance Portability and Accountability Act of 1996” which provide guidance on the protection of patient privacy and confidentiality. This Act mandates that all government agencies, and those bodies with whom they contract, must be in compliance with the directives of the Act.

SECURITY INCIDENT INVESTIGATION

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

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

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

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

d. 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:

(1) Notification;

(2) One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports;

(3) Data breach analysis;

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

(5) One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and

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

SECURITY CONTROLS COMPLIANCE TESTING

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

TRAINING

Contractor/subcontractor employees requiring access to VA information shall complete privacy training annually as required for covered entities under the HIPAA.

The COR shall ensure employees complete training within 1 week of the initiation of the contract and annually thereafter, as required.

Failure to complete the mandatory annual training 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.

RECORDS MANAGEMENT LANGUAGE

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. Chapters. 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.

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.

In accordance with 36 CFR 1222.32, the 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.

The VA Southern Nevada Healthcare System (VASNHS) 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 VASNHS 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, the contractor must report to VASNHS. The agency must report promptly to NARA in accordance with 36 CFR 1230.

The contractor shall immediately notify the appropriate Contracting Officer (CO) 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 as described in the contract documents. 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 VASNHS 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 CO or address prescribed in the contract documents. Destruction of records is EXPRESSLY PROHIBITED unless in accordance with Paragraph (4).

The contractor is required to obtain the CO'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 VASNHS guidance for protecting sensitive, proprietary information, classified, and controlled unclassified information.

The contractor shall only use Government IT equipment for purposes specifically tied to or authorized by the contract and in accordance with VASNHS policy.

The contractor shall not create or maintain any records containing any non-public VASNHS information that are not specifically tied to or authorized by the contract.

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 FOIA.

VASNHS 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 VASNHS 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.

Training. All contractor employees assigned to this contract who create, work with, or otherwise handle records are required to take VHA-provided records management training.

The contractor is responsible for confirming training has been completed according to agency policies, including initial training and any annual or refresher training.

Flowdown of requirements to Subcontractors:

The contractor shall incorporate the substance of this clause, its terms and requirements including this paragraph, in all subcontracts under this contract document, and require written subcontractor acknowledgment of same.

Violation by a subcontractor of any provision set forth in this clause will be attributed to the contractor.