VA250-17-R-1170-001.docx

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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.

DUNS:

DUNS+4:

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. 2/2012)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

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

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

583-18-2-285-0001

VA250-17-R-1170

01-12-2018 Tritle, Jared 317-988-1529 02-12-2018

12:00 PM EDT

Department of Veterans Affairs Network Contracting Office 10 8888 Keystone Crossing Suite 1100 Indianapolis IN 46240 X X 621320 $7.5 Million X N/A X Department of Veteran Affairs Veterans Health Indiana Attn: VISN 10 Prosthetics Program Office 2669 Cold Springs Road Indianapolis IN 46222 Department of Veterans Affairs Network Contracting Office 10 8888 Keystone Crossing Suite 1100 Indianapolis IN 46240

Department of Veterans Affairs Financial Management System P O Box 149971 Austin TX 78714-9971 512-242-7300 N/A X See CONTINUATION Page Offeror shall provide eyeglass dispensary services for the Veterans Integrated Service Network (VISN) 10 Prosthetics Program Office as described in accordance with the Performance Work Statement contained herein.

Interested Offerors shall submit proposals in accordance with the instructions provided in Section E.2. Proposals shall be due at the date and time listed in Block 8, or as amended.

Questions regarding this Request for Proposals shall be submitted no later than ten (10) business days after the release of the solicitation. Questions shall be submitted to Jared.Tritle@va.gov.

Award decision will be made in accordance with FAR 15 procedures to the offeror(s) who provide the best value to the Government based on the evaluation factors identified in FAR Provision 52.212-2.

583-3680160-285-827200-2692 0100652CA

X X X One Jared Tritle Contracting Officer Table of Contents

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

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

1. Contract Administration: All contract administration matters will be handled by the following individuals:

2. CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with FAR 52.232-33- Payment by Electronic Funds Transfer- System for Award Management.

3. INVOICES: Invoices shall be submitted in arrears monthly. Invoices shall be submitted via the following link: www.fsc.va.gov/fsc/vendors.htm. Please note that the Financial Services Center is no longer accepting physical invoices. They must be submitted electronically via the link listed above.

4. INSTRUCTIONS: Offerors must complete and return all information prior to the time specified in block 8 of SF 1449 in order to be considered for award. The required information is as follows:

SF1449 Block 17a The Pricing Schedule (Attachment) Refer to Section E.1 & Section E.2 for further details

ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

AMENDMENT NO. DATE

System for Award Management: Federal Acquisition Regulation 52.212-4(t)(1) requires contractor registration in the System for Award Management (SAM) database prior to the award of a contract. Offerors and Contractors may obtain information on registration and annual confirmation requirements via the internet at https://www.sam.gov/portal/public/SAM/.

SUBMISSION: The offeror’s quote(s) as well as any questions shall be submitted by the date and time indicated in the solicitation to the Government point of contact listed in 1(b).

B.2 LIMITATIONS ON SUBCONTRACTING-- MONITORING AND COMPLIANCE (JUN 2011)

This solicitation includes FAR 52.219-14 Limitations on Subcontracting. Accordingly, any contract resulting from this solicitation will include this clause. The contractor is advised in performing contract administration functions, the CO may use the services of a support contractor(s) retained by VA to assist in assessing the contractor's compliance with the limitations on subcontracting or percentage of work performance requirements specified in the clause. To that end, the support contractor(s) may require access to contractor's offices where the contractor's business records or other proprietary data are retained and to review such business records regarding the contractor's compliance with this requirement. All support contractors conducting this review on behalf of VA will be required to sign an “Information Protection and Non-Disclosure and Disclosure of Conflicts of Interest Agreement” to ensure the contractor's business records or other proprietary data reviewed or obtained in the course of assisting the CO in assessing the contractor for compliance are protected to ensure information or data is not improperly disclosed or other impropriety occurs. Furthermore, if VA determines any services the support contractor(s) will perform in assessing compliance are advisory and assistance services as defined in FAR 2.101, Definitions, the support contractor(s) must also enter into an agreement with the contractor to protect proprietary information as required by FAR 9.505-4, obtaining access to proprietary information, paragraph (b). The contractor is required to cooperate fully and make available any records as may be required to enable the CO to assess the contractor's compliance with the limitations on subcontracting or percentage of work performance requirement.

B.3 SUBCONTRACTING COMMITMENTS--MONITORING AND COMPLIANCE (JUN 2011)

This solicitation includes VAAR 852.215-70, Service-Disabled Veteran-Owned and Veteran-Owned Small Business Evaluation Factors, and VAAR 852.215-71, Evaluation Factor Commitments. Accordingly, any contract resulting from this solicitation will include these clauses. The contractor is advised in performing contract administration functions, the CO may use the services of a support contractor(s) to assist in assessing contractor compliance with the subcontracting commitments incorporated into the contract. To that end, the support contractor(s) may require access to the contractor's business records or other proprietary data to review such business records regarding contract compliance with this requirement. All support contractors conducting this review on behalf of VA will be required to sign an “Information Protection and Non-Disclosure and Disclosure of Conflicts of Interest Agreement” to ensure the contractor's business records or other proprietary data reviewed or obtained in the course of assisting the CO in assessing the contractor for compliance are protected to ensure information or data is not improperly disclosed or other impropriety occurs. Furthermore, if VA determines any services the support contractor(s) will perform in assessing compliance are advisory and assistance services as defined in FAR 2.101, Definitions, the support contractor(s) must also enter into an agreement with the contractor to protect proprietary information as required by FAR 9.505-4, obtaining access to proprietary information, paragraph (b). The contractor is required to cooperate fully and make available any records as may be required to enable the CO to assess the contractor compliance with the subcontracting commitments.

B.4 REVIEW REQUIRED REGISTRATION WITH CONTRACTOR PERFORMANCE ASSESSMENT SYSTEM (CPARS)

(a) as prescribed in Federal Acquisition Regulation (FAR) Part 42.15, the Department of Veterans Affairs (VA) evaluates contractor past performance on all contracts that exceed $150,000, and shares those evaluations with other Federal Government contract specialists and procurement officials. The FAR requires that the contractor be provided an opportunity to comment on past performance evaluations prior to each report closing. To fulfill this requirement VA uses an online database, CPARS, which is maintained by the Naval Seal Logistics Center in Portsmouth, Virginia. CPARS has connectivity with the Past Performance Information Retrieval System (PPIRS) database, which is available to all Federal agencies. PPIRS is the system used to collect and retrieve performance assessment reports used in source selection determinations and completed CPARS report cards transferred to PPIRS. CPARS also includes access to the federal awardee performance and integrity information system (FAPIIS). FAPIIS is a web-enabled application accessed via CPARS for contractor responsibility determination information.

(b) Each contractor whose contract award is estimated to exceed $150,000 is required to register with CPARS database at the following web address: www.cpars.csd.disa.mil. Help in registering can be obtained by contacting Customer Support Desk @ DSN: 684-1690 or COMM: 207-438-1690. Registration should occur no later than thirty days after contract award, and must be kept current should there be any change to the contractor's registered representative.

(c) For contracts with a period of one year or less, the contracting officer will perform a single evaluation when the contract is complete. For contracts exceeding one year, the contracting officer will evaluate the contractor's performance annually. Interim reports will be filed each year until the last year of the contract, when the final report will be completed. The report shall be assigned in CPARS to the contractor's designated representative for comment. The contractor representative will have sixty days to submit any comments and re-assign the report to the VA contracting officer.

(d) Failure to have a current registration in the CPARS database, or to re-assign the report to the VA contracting officer within those sixty days, will result in the Government's evaluation being placed on file in the database with a statement that the contractor failed to respond.

B.5 PRICE/COST SCHEDULE

Offerors shall complete the attached Microsoft Excel Price/Cost Schedule file included as an attachment to this Request for Proposals. Offerors shall only modify those sections which are shaded dark gray; all other fields are to remain unaltered. Any alteration of the fields not shaded in dark gray, excluding the Pricing Notes tab, shall render the proposal technically unacceptable and the Offeror’s proposal shall be rejected.

Sites at which the Offeror does not wish to provide services shall be priced at $0.00. Any fields left blank will automatically be considered not offered by the Offeror.

Unit prices offered shall be “all inclusive”, meaning that all supplies/services necessary to perform in accordance with the performance work statement (e.g., labor, material, supervision, traveling, and overhead) are included in the price.

Offeror shall note that all volumes are estimates and in no way are to be interpreted as a guarantee of future volumes. The only guarantee on any resulting contracts are the contract minimum, which has been set at $25,000.00 per contract.

The contract ceiling is determined by adding the total estimated prices for each of the sites offered, plus an additional 10%, plus an additional 50% of Ordering Period 5 total estimated price (to account for FAR 52.217-8).

If necessary, Offeror shall provide any pricing notes on the Pricing Notes tab or in a separate section in their proposal titled “Pricing Notes”.

Changes to the Contract’s Price/Cost Schedule shall only be made by a written modification formally executed by the contractor and the Contracting Officer. All unit prices included in the Price/Cost Schedule are firm-fixed price. Only the quantities ordered by the Government shall vary.

B.6 PERFORMANCE WORK STATEMENT

BACKGROUND

The Veterans Integrated Service Network (VISN) 10 fabricates eyeglasses for the VISN 10 VA Medical Centers and their supporting Community Based Outpatient Clinics (CBOCs). While the eyeglasses are manufactured at the VISN 10/12 Optical Lab, VISN 10 requires on site dispensing services. These on site dispensaries will serve various functions. VISN 10 requires a contractor to provide all labor, equipment, materials, supplies, and supervision to provide eyeglass dispensary services, to include functions such as fitting, ordering, adjusting, dispensing, repairing (minor), and education.

SCOPE

VISN 10 intends to enter into one or more contracts with a contractor(s) clearly outlining the contractors’ obligations regarding ordering and dispensing eyewear to Veterans within the framework of established VA guidelines and practices.

The sites covered by this requirement shall include:

Southern Tier

Northern Tier

Veterans Health Indiana 1481 West 10th Street Indianapolis, IN 46202-2803

John D. Dingell VA Medical Center 4646 John R Street Detroit, MI 48201-1916

VA Northern Indiana Health Care System Fort Wayne Campus 2121 Lake Avenue Fort Wayne, IN 46805-5100

VA Ann Arbor Health Care System 2215 Fuller Road Ann Arbor, MI 48105-2303

VA Northern Indiana Health Care System Marion Campus 1700 East 38th Street Marion, IN 46953-4568

Toledo VA Outpatient Clinic 3333 Glendale Avenue Toledo, OH 43614

St. Joseph County VA Clinic (SJCVAC) 1540 Trinity Place Mishawaka, IN 46545

Battle Creek VA Medical Center 5500 Armstrong Road Battle Creek, MI 49037-7314

Wyoming VA Healthcare Center 5838 Metro Way, SW Wyoming, MI 49519

Aleda E. Lutz Medical Center 1500 Weiss Street Saginaw, MI 48602-5251

OBJECTIVE

The overall objective of this contract is to create and maintain a professional environment in which the Veterans will receive quality products and services. The contractor shall be qualified to educate and assist the Veterans in the proper choice, use, and care of their eyewear. Appropriate state licensure/certifications shall be required if deemed necessary by the state. Contractor shall provide appropriate professional business license(s) within the states required per each facility serviced. Contractor shall also comply with any other federal, state, and local law applicable to the industry. This documentation shall be provided annually during the life of the contract. The contractor shall be provide, at the minimum, furniture, a lensometer, and basic tools for adjusting and repairing eyeglasses at all dispensing locations.

GENERAL PERFORMANCE STANDARDS

The contractor shall utilize government furnished computers and connections for entering prescriptions utilizing the VA’s Remote Order Entry System (ROE). Space will be provided by the VA and will include lights, telephone, climate controlled and secure area. The contractor shall be responsible for display boards, equipment and tools required for the display of frames.

The contractor shall be staffed to render satisfactory and timely service to the patients. All services shall be performed by a competent professional familiar with the nature of the equipment necessary and who has demonstrated competency. Employees providing services must have a current health record compliant with state and local community health regulations, education, training, and experience commensurate with the scope of services provided. Please note, contractor employees shall not be considered government employees for any purpose under this contract.

The contractor shall document both initial employee orientation and on-going training, which demonstrates the employee’s knowledge, experience, and competence, are appropriate for his/her assigned responsibilities. The contractor shall document assessment of employee competency. Employee records shall include evaluations of performance. As a part of the employee’s initial orientation, the contractor shall provide an orientation on the VA and on the requirements of this contract. Training topics should cover all aspects of the services provided under this contract, including patient confidentially, patient safety and risk assessment, HIPAA, communicating safe use and care of equipment to patients and caregivers, and infection control procedures. The Contractor assures all personnel comply with current and future VA requirements such as Safety, Ethics, HIPPA, required of business associates.

A high degree of professionalism and understanding must be demonstrated when contact is made by the employees. Contractor’s employees are expected to be discreet and tactful and demonstrate concern, compassion, and patience. Some patients have physical disabilities or chronic illnesses that influence their behavior and lifestyle. Any verbal or physical abuse, or unprofessional behavior or conduct toward a patient and/or caregiver will not be tolerated. The VA reserves the right to request the removal of any employee from performance of services under this contract if his/her behavior and/or level of services provided are not in strict accordance with the requirements of this contract.

The contractor shall identify both key personnel and all employees who provide services at each contractor’s facility in writing to the Contracting Officer. The contractor shall also identify subcontractor personnel in similar employee positions in writing. The contractor shall submit a list that identifies all contractor/subcontractor personnel within ten calendar days after contract award and submit a revised listing which must identify all changes in these employees within five (5) calendar business days after any changes in contractor/subcontractor personnel are made. Key personnel must be given the authority to represent the contractor in all day-to-day matters. The contractor shall identify at least one (1) individual who has the authority to fully represent the contractor in all contract matters. The contractor shall be responsible for the acts and omissions of all employees, including the employees of any subcontractors. The Contractor will have a plan to monitor the subcontractors’ compliance with the requirements of this contract.

The contractor shall make employee records available for review by the Contracting Officer Representative (COR). This request may be made during visits to the contractor’s facility or the contractor may be requested to submit the documentation to the COR location. The contractor shall provide a list to the CO that identifies all employees currently competent to provide dispensing services, which identifies the employee’s name, location of contractor’s facility where they work, and the type of services they provide. The initial list shall be submitted within ten calendar days after contract award, and revised lists shall be submitted within ten calendar days after any changes in contractor personnel are made.

Contractor shall be responsible for cost incurred with background checks done through VSC Security. This will be done for all employees handling/dealing with VA patients and or patient information. Upon request the contractor must be able to immediately provide copies of performance evaluations, continuing education, competency assessments, position descriptions, and certification/licensure documentation of personnel providing service under this contract to the COR.

The Contractor shall reference the Quality Assurance Surveillance Plan (QASP) included as an attachment for monitored tasks, Acceptable Quality Levels, and inspection frequency/type.

SPECIFIC PERFORMANCE TASKS

Under the performance of this contract, the Government requires the following tasks:

· Contractor shall fit Veterans with proper frame style for Veteran and prescription.

· Contractor shall determine the pupillary distance (P.D.), segment height and/or optical center (OC) height.

· Contractor shall troubleshoot any optical issues before sending the Veteran back to the eye clinic

· Contractor shall fit and adjust glasses for Veterans.

· Contractor shall perform minor repairs on glasses, i.e. nose pads, screws and adjustments.

· Contractor shall educate Veterans on the advantages and disadvantages of different segment styles.

· Contractor shall be required to obtain access to the VA’s ROE and enter patient measurements into the system. Contractor shall ensure that all information needed to fabricate the eyewear is included in the ROE.

· Contractor shall use the VA’s ROE unless it is not available. In those cases the contractor shall fax orders to the VISN 10/12 Optical Laboratory daily. Every faxed order shall include a cover sheet, location and account number if not using the ROE system.

· Contractor shall not batch orders for more than one (1) day.

· Contractor shall be able to provide completed eyewear for sale to individuals not entitled to eyeglasses, family members, and/or hospital staff.

· Contractor awarded this contract shall enter into an agreement with the Veteran Canteen Service for sale of goods on government property. This agreement shall include a 12% commission payment on retail sales to the Veteran Canteen Service.

· Contractor shall not attempt to “upgrade” eyewear by selling unauthorized add ons. If a Veteran is eligible for eyewear, he/she must choose from the collection provided from the VISN 10/12 Optical Lab.

DELIVERY

· Packing slips shall be included with each delivery for verification. If discrepancies are found, the contractor must notify the VISN 10/12 Optical Lab within 24 hours.

· Contractor shall notify the Veteran when glasses are ready for pick up.

· Contractor shall fit and make adjustments on site (preferred method) or mail glasses to the Veterans home if the Veteran requests them to be mailed. The contractor shall have a confirmation of delivery (i.e. UPS, FEDEX with tracking number, or USPS certified mail (no signature required).

· Contractor shall provide the local Prosthetic service with a copy of the VISN 10/12 Optical Lab invoice and an invoice for dispensing fees. The invoice must be typed and list the patient name with the last four of their social security number. This shall be done for each individual pair dispensed.

· Contractor is responsible for including a packing slip with shipments sent to the VISN 10/12 Optical Lab. All shipments shall be sent via a carrier that can be tracked.

· Contractor shall bring any quality issues to the attention of the VISN 10/12 Optical Lab Manager and the COR within 24 hours of receipt of the eyewear.

SECURITY:

The contractor shall be given beneficiary information that may include Veteran’s name, residential address, telephone number, and social security number. Beneficiary information is confidential and is protected under the Privacy Act of 1974 and the Healthcare Insurance Portability and Accountability Act of 1996 (HIPAA). Any individual making unauthorized disclosure may be criminally liable for violations under the Acts. The contractor shall not use or further disclose beneficiary information in a manner that would violate the Federal privacy and confidentiality statutes. The contractor shall receive privacy training annually through the VA’s Training Management System (TMS). Completion certificates shall be faxed to the COR. Any electronic communication that includes HIPAA information shall be done through PKI encrypted e-mail.

Once a Security Agreement Check has been completed, and training certificates for the required information security and privacy training courses are provided to the COR (as stated above in the IT Contract Security Section under the Training paragraph), and the VISN 10 Unified Access Request form has been submitted, the contractor may be granted access to CPRS and/or previous prescription data needed for prescriptions, troubleshooting fitting, etc. The appropriate access is determined by the COR.

ROLES AND RESPONSIBILITIES:

The Contracting Officer reserves the right to designate a COR to act for him/her in furnishing technical guidance and advice, or generally surveil the work to be performed under this contract. Such designation shall be in writing and shall define the scope and limitations of the designee’s authority. A copy of the designation will be furnished to the contractor after award of the contract.

A Prosthetics & Sensory Aids Service (PSAS) Representative will be located at each of the major VA facilities. The contact information will be provided upon contract award. A PSAS Representative has the exclusive responsibility for determining eligibility and necessity for services. He/she also coordinates and resolves problems related to services. Any matter that cannot be resolved by a PSAS Representative will be referred to the COR. Any matter that cannot be resolved by a COR within their delegation will be referred to the Contracting Officer.

PERFORMANCE REPORTS

The contractor shall provide to the COR or designee the following monthly reports to be submitted no later than five (5) business days following the end of last of the previous month:

1. Patient Satisfaction Survey: survey will be approved by COR and survey 50 Veterans a month per Medical Center including medical centers CBOC’s.

2. Timeliness Report: measure turnaround times from point of initial contact with Veteran patient, to Veteran patient receiving eyeglasses.

3. Quality Report: evaluate any issues with eyeglass frames, lenses and document the findings, recommendations and actions taken.

QUANTITY/PAYMENT

Payment will only be made on new orders. Fees for remakes within one (1) calendar year from original order will not be paid. The quantity will vary from care site to care site. The Government has estimated the number of eyeglasses for each site using historical data and escalation rates. However, these numbers are estimates and are not guarantees for actual quantities, which may be more or less than estimated.

Payments will be made by each VA facility using the US Government Credit Card (VAF PC-2421). The contractor shall submit an individual itemized invoice for each service ordered as soon as the services have been delivered. Invoices are to be submitted to each PSAS Representative that placed the order for each VAF PC-2421 and must be accompanied by:

1. The lab printed work ticket

2. An itemized invoice for each item dispensed. This invoice will include the date, Veteran name, last four of the SSN and cost.

Payment will not be authorized if documentation is incomplete.

B.7 IT CONTRACT SECURITY

VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY

1. 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.

2. 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.

3. 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. The contractor/subcontractor must refer all requests for, demands for production of, or inquiries about, VA information and information systems to the VA contracting officer for response.

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

l. For service that involves the storage, generating, transmitting, or exchanging of VA sensitive information but does not require C&A or an MOU-ISA for system interconnection, the contractor/subcontractor must complete a Contractor Security Control Assessment (CSCA) on a yearly basis and provide it to the COR.

4. INFORMATION SYSTEM DESIGN AND DEVELOPMENT

This section is not applicable.

5. INFORMATION SYSTEM HOSTING, OPERATION, MAINTENANCE, OR USE

This section is not applicable.

6. 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.

7. 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 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.

8. 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.

9. TRAINING

a. All contractor employees and subcontractor employees requiring access to VA information and VA information systems shall complete the following before being granted access to VA information and its systems:

(1) Sign and acknowledge (either manually or electronically) understanding of and responsibilities for compliance with the Contractor Rules of Behavior, Appendix E relating to access to VA information and information systems;

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

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

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

b. The contractor shall provide to the contracting officer and/or the COR a copy of the training certificates and certification of signing the Contractor Rules of Behavior for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required.

c. Failure to complete the mandatory annual training and sign the Rules of Behavior annually, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete.

VISN 10 Eyeglass Dispensary Services VA250-17-R-1170 (End of Clause) Page 1 of Page 1 of

SECTION C - CONTRACT CLAUSES

C.1 52.212-4 CONTRACT TERMS AND CONDITIONS—COMMERCIAL ITEMS (JAN 2017)

(a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming supplies or services. The Government must exercise its post-acceptance rights—

(1) Within a reasonable time after the defect was discovered or should have been discovered;…