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Page 10 of 11 Project No. 539-23-101 A/E SOW Modernize Nurse Call SCOPE OF WORK GENERAL INTENTION: Contractor shall provide architect-engineer (A/E) services for Project No. 539-23-101 to Modernize Nurse Call throughout the hospital in Building No. 1 at the Cincinnati VA Medical Center, Cincinnati, Ohio, and at Building No. 64 Cincinnati VA Medical Center s Fort Thomas, Kentucky campus, accordance with the general items as written. A/E STATEMENT OF WORK: This contracted work includes preparation of drawings, specifications and cost estimates for all facets of work and trades necessary to facilitate award of a construction contract in order to modernize the nurse call system throughout the main hospital. The entire area is involved in this project. The work in this project will modernize the nurse call system throughout the hospital and at the Fort Thomas facility. The current Nurse Call devices are only available for service purchase only and cannot be purchased for new system installs. This affects all the projects currently in construction and design. This will upgrade the headend of the system. As this is an occupied space, planning for phasing the construction work is required. Construction period services to include submittal/shop drawing review, answering questions, issuing amendments, site visits, creating bulletins/change order documentation (including cost estimates), review of contractor proposals for additional work, participation in punch list inspections, and the creation of record drawings. The above A/E SOW constitutes a basic outline of work and in no way outlines all of the details for the design of this project. It is recommended that a detailed inspection of the premises be initiated to determine the needs and conditions for the design and plans for this project. Copies of the original construction drawings/record drawings for the space are available for A/E use. The contractor shall furnish a complete design package to include plans, architectural, structural, electrical, mechanical, views, details, sections, elevations, shop drawings, independent fire/safety review, BIM record drawings, edited specifications, site visits, commissioning, and related information as required by the contract. A/E to provide list of all equipment needed for project to be fully functional with identified equipment funding source (construction project funded or VA funded). The funding source must be determined per the following decision tree: Decision Tree: Is the item necessary to meet requirements for an occupied building? All code required items, such as fire alarm, are required to be part of the construction project. If no, proceed to question 2. Is the item covered by OCFM's Master Construction Specifications PG-18-1 Divisions 1 through 10, 13 through 26, or 28 through 48? If yes, the equipment is to be funded within the construction project. If no, go to question 3. Is the item covered in OCFM's Master Construction Specifications PG-18-1, Division 27 and not IT equipment? If yes, the equipment is funded within the construction project. If no, go to question 4. Is the item covered in OCFM's Master Construction Specifications PG-18-1, Number 12 31 00, 12 32 00, 12 34 00, or 12 36 00? If yes, the equipment is funded within the construction project. If no, then the equipment must be funded by the respective equipment fund from medical careappropriations. A/E shall submit certification memo that design is independent of future projects and includes all equipment required for the project to be activated/fully functional as required by the OCAMES Updated Construction Guidance and Expectations Memo dated Sep 12th, 2016. Depending on the project, a Pre-TAB shall be performed to determine current HVAC conditions. The Pre-TAB shall be done under a variety of operating conditions to ensure the design will have sufficient flow (i.e. steam, hydronic water, air flow) under these operating conditions. The contractor shall be solely responsible for the management and professional design, including all associated labor, equipment, materials, mailing costs, and inspection, to meet the requirements of the contract. DESIGN WITHIN FUNDING LIMITATIONS: The design shall be accomplished by the A/E design services so as to permit the award of a construction contract, using standard Federal Acquisition Regulation procedures for the construction of the facilities designed at a price that does not exceed this project s estimated construction contract price of $4,540,000.00 Construction contract supervision will be conducted by the Project Section of Engineering Service at the Cincinnati VA Medical Center. VA has adopted the latest edition of the following codes and standards as minimum design criteria for all projects performed in the modernization, alteration, addition, or improvement of its real property and the construction of new structures. VA design Manuals and Master Specifications specify other codes and standards that VA follows on its projects: VA Directives, Design Manuals, Master Construction Specifications, VA National CAD Standard Application Guide, Manual for Preparation of Cost Estimates for VA Facilities, VA Space Planning Criteria PG-18-9, Minimum Requirements for A/E Submissions PG- 18-15 Volume C Minor and NRM Projects, VA Design & Construction Procedures PG- 18-3, and other Guidance on the Technical Information Library (TIL) (http://www.cfm.va.gov/til/). Occupational, Safety and Health Administration (OSHA) Standards. International Building Code (IBC) National Electrical Code (NEC) National Fire Protection Association (NFPA) Codes, with the exception of NFPA 5000 and NFPA 900 National Standard Plumbing Code (NSPC) Safety Code for Elevators and Escalators, American Society of Mechanical Engineers (ASME) A 17.1 ASME Boiler and Pressure Vessel Code ASME Code for Pressure Piping Architectural Barriers Act Accessibility Standard (ABAAS), including VA Supplement, Barrier Free Design Guide PG-18-13 Building Code Requirements for Structural Concrete, American Concrete Institute (ACI 318 11) and Commentary Manual of Steel Construction, Load and Resistance Factor Design Specifications for Structural Steel Buildings, American Institute of Steel Construction (AISC) Energy Code for New Federal Commercial and Multi-Family High Ride Residential Buildings: Final Rule. Mandatory for New Federal Buildings, Department of Energy (DOE) regulations, 10 Code of Federal Regulations (CFR) Parts 434 and 435. The Provisions for Construction and Safety Signs. Stated in the General Requirements Section 01 00 00 of the VA Master Construction Specification. Executive Order 13693, Planning for Federal Sustainability in the Next Decade Ventilation for Acceptable Indoor Air Quality ASHRAE Standard 62.1 Safety Standard for Refrigeration Systems ASHRAE Standard 15 U.S. National CAD Standard Executive Order 13221, Energy Efficient Standby Power Devices EPACT 2005- Energy Policy Act of 2005 Energy Independence & Security Act Cincinnati VA Medical Center Engineering Service Standard List VISN 10 Energy Requirements for the Procurement of all New Construction, Major & Minor Renovation Projects. VISN 10 Sustainability List Conflicts between nationally recognized standards and VA Requirements: Should a conflict exist between VA requirements and VA adopted nationally recognized codes and standards, the conflict shall be brought to the attention of VA. The resolution of the conflict shall be made by the authority having jurisdiction for VA to ensure a consistency system wide. A/E shall work with the VA Interior Designer and VA s furniture vendor for incorporation into equipment layout plan sheets and construction cost estimate. Furniture/equipment items that are to be attached to walls are a part of the construction contract. Freestanding furniture such as chairs, bookcases, etc., are to be indicated as VV items on the plan sheets, but will not be included in the contracted construction or construction cost estimate (refer to PG-18-5 VA Equipment Guide List (https://www.cfm.va.gov/TIL/equip.asp). Items such as disposable gloves dispensers, waterless hand sanitizer dispensers, needle/sharps disposal containers, shall be appropriately identified. Interior design finish requirements shall be submitted with the 85% design review. It is highly unlikely that a Life Safety Review will be necessary for this project. If for some reason, a Life Safety Review is necessary, the VA will send the drawings off to a VA contractor hired by the VA specifically to perform this task. Comments from the review shall be incorporated into the design of the project. SUBMITTAL REQUIREMENTS: All plans and details shall adhere to the Office of Construction & Facilities project document requirements and utilize the Standard VA Title Blocks as provided by PG-18-13 VA BIM & CAD Standards (http://www.cfm.va.gov/til/projReq.asp). The A/E shall develop the project utilizing Building Information Modeling BIM software (Revit 2021 or latest version available to VA.) A/E shall be required to provide a computer 3D model and prepare various 3D renderings to present to the VA throughout the design phase to adequately represent Architectural, Mechanical Electrical Plumbing - MEP, and, site conditions, etc. to aide with facility visualization and contractor coordination. BIM Model minimum requirements shall be developed to include the systems described below as they would be built and the processes of installing them, and to reflect final as-built conditions (possibly incorporating into VA Master Record Documents pending facility expertise). The BIM model shall conform to the requirements of the current revision of the PG-18-13 VA BIM & CAD Standards Manual (https://www.cfm.va.gov/til/projREq.asp). The deliverable model at the interim design stage and at the final design stage shall be developed to include as many of the systems described below as are necessary and appropriate at that design stage. The Model shall include but not be limited to the following: Architectural/Interior Design, Square Footage/Volume including Room Names and Numbers, Departmental ownership, Architectural Schedules, Walls and Curtainwall Sizes, Shapes, and Material Data. Doors, Windows, Louvers, Roof, Floors, Ceilings, Vertical Circulation, Architectural Specialties and Woodwork, Life Safety information (Fire Extinguishers, wall ratings, door ratings, Fire Protection/Alarms), General Signage, Schedules, Furniture, Equipment, Structural, Foundations, Shafts and Pits, Mechanical, HVAC, Plumbing, Electrical/Telecommunications, Power and Lighting, Steam distribution, Nurse call info, Asbestos/ Hazard Material info, Security system information (Access controls, security cameras, panic alarms, overhead paging), Exterior Building Information, and other Civil Engineering Data as required such that data may be easily integrated into one master record document of the facility. Construction Cost Estimates shall be provided using the guidance provided by the Office of Construction & Facilities Management Cost Estimating website (https://www.cfm.va.gov/cost/index.asp). Per the current (December 2021) edition of the Cost Estimating Requirements for Veterans Affairs Facilities Manual, Chapter 1, Section 1 specifically requires independent/3rd Party cost estimates as follows: Independent / 3rd Party Estimating Per GAO and VA requirements, the deliverables within this Cost Manual are to be executed by an independent / 3rd party cost estimator. The cost estimator is to be a separate, un-biased and non-affiliated, entity contracted by the A/E. The A/E may not use their own personnel to complete any requirements stated within this Cost Manual. Project must include no more than 3 deductive bid alternates equal to approximately: Construction Estimate $1M = 10% Although this requirement is for the Construction Document (CD) Bid Item design submission, it must be identified and planned for in the DD1 and DD2 submittals. Electronic Data: In addition to hardcopies, provide electronic copies of data along with a complete listing of all drawing layers used. Provide drawings in both RVT and PDF file formats. The specifications shall be provided in Microsoft Word and PDF file formats. Reports/Narratives can be provided in PDF file format from a scan. Provide cost estimates in PDF file format. Meeting Minutes Provide a memorandum narrating each visit/meeting with the VA. Submit the memorandum within 7 calendar days of the visit/meeting. Memorandum can be mailed or scanned and attached to an email transmission. 35% Schematic Design (Layout Design) One (1) full size, One (1) 50% scale/half size paper/bond sets of all drawings, SEPS data, and narrative Electronic submission of all files 85% Design Development (DD1) One (1) full size, One (1) 50% scale/half size paper/bond sets of all drawings and edited specifications. Provide specific specification divisions and drawings for each of the Cincinnati maintenance shops respective to their trade/specialty to include the VA s designated HVAC Commission Authority and contracted fire protection consultant. Provide interior design finish requirements Provide independent fire/safety review report (if applicable) Two (2) paper/bond sets of HVAC/Electrical load calculations Two (2) paper/bond sets of the construction cost estimate Two (2) paper/bond set of base and deductive bid alternates Electronic submission of all files 100% Design Development (DD2) One (1) full size, One (1) 50% scale/half size paper/bond sets of all drawings and edited specifications. Provide specific specifications divisions and drawings for each of the Cincinnati maintenance shops respective to their trade/specialty. Two (2) paper/bond sets HVAC/Electrical load calculations Two (2) paper/bond sets of the construction cost estimate Two (2) paper/bond sets of base and deductive bid alternates Electronic submission of all files Construction Documents (Final Bid Documents) One (1) full size, One (1) 50% scale/half size paper /bond sets of final reports and calculations. Two (2) paper/bond sets of the final construction cost estimate. Two (2) paper/bond sets of construction documents (drawings and specifications.) One (1) paper/bond set of construction drawings, 50% scale/half size Electronic submission of all files Record Drawings (As-built drawings) Drawing sets to be provided in RVT, DWG, and PDF file formats SUBMISSION, REVIEW, AND COMPLETION SCHEDULE: 35% Schematic Design (SD) TBD calendar days after Notice to Proceed 35% Schematic Design Review 14 calendar days after receipt of SD Conference submittal receipt 85% Design Development (DD1) TBD calendar days after approval of COR to proceed toward DD1 85% Design Development Review 14 calendar days after receipt of DD1 Conference submittal receipt 100% Design Development (DD2) TBD calendar days after approval of COR to proceed toward DD2 100% Design Development Review 14 calendar days after DD2 submittal receipt Conference Construction Documents (CD) TBD calendar days after approval of Submittal COR to proceed toward CD Record Drawings (As-Built 30 calendar days after receiving the Drawings) contractor s marked-up As-built drawings A detailed breakdown of the above submittal schedule with specific calendar dates must be provided for approval by the COR as part of the A/E proposal. CONSTRUCTION PERIOD SERVICE REQUIREMENTS: Review all construction contractor submitted shop drawings and submittals, as required by specifications, recommending either approval/disapproval with inclusion of comments to the Project Engineer and return within fourteen (14) calendar days of receipt. Review all cost proposals for construction changes and return within seven (7) calendar days. Review and provide responses to all RFI within seven (7) calendar days. Site visits during construction: Two (2) additional visits at the request of Contracting Officer. Participation in final acceptance inspection, prepare punch list, create equipment list Verification of final inspection punch list items completion A site visit report which includes the purpose of the visit, observed construction, advisement of any deviations/deficiencies, recommendations, additional actions required, items reviewed, shall be furnished to the COR with seven (7) calendar days following the visit date. Submit an equipment list in table format of all contractor installed equipment, provided in a table with the following headings: item number, nomenclature, manufacturer, model number, serial number, project drawing & specification reference(s), quantity, and location the installed component. This list shall be completed and submitted no later than beneficial occupancy or substantial completion date, whichever occurs first. Submit tables of all life safety elements requiring routine inspection, including emergency lighting, exit signs, smoke detectors, duct detectors, smoke/fire dampers, fire alarm speakers, strobes, and fire pumps. Each element to be a separate table with the following headings: manufacturer, model number, date of installation, and location. These tables shall be completed and submitted no later than beneficial occupancy or substantial completion, whichever comes first. REQUIRED EDITS TO THE VA MASTER SPECIFICATIONS: Ensure the latest revisions for ALL spec sections as currently listed in the VA PG-18-1 Master Construction Specifications located on the TIL (https://www.cfm.va.gov/TIL/spec.asp#01) are downloaded & used. Verify all spec section and division names are correct and consistent. Verify no references are made to spec sections or divisions not actually in the latest revision of the VA Master Specifications. Verify all spec sections applicable to any aspect of this project are incorporated. Header Project Number and Project Name at the top right Footer Section number and page numbers in the middle Ensure all non-website // are removed from the final project specifications. // indicates notes or optional content the spec writer is to verify/edit to suit the specific requirements of each project No warranties over 1 year. No Brand Name or Equals. No sole sources without a justification. NOTE: As part of the required construction bid documentation, the A/E shall provide a completed Sole Source Justification memo for each specific item the VA has approval to sole-source. All references to Resident Engineer or RE should be COR All facility system & utilities shutdown and/or interruption notices are required 3 weeks in advance of the scheduled shutdown. Check all specifications and drawings against the latest revision of the Cincinnati VA s Engineering Particulars List, which defines site-specific items that are required to be incorporated into all construction documentation for this project. The latest revision of this list can be requested from the COR. Verify all numbering is in the correct order. Section 01 00 00, Paragraph 1.2 General Intention: Delete Subpart B stating site visits by bidders may only be made by appointment. The CO will specifically schedule a formal site visit for all interested bidders prior to the bid opening. Section 01 00 00, Paragraph 1.3 Statement of Bid Item(s); make sure this section is correctly formatted and accurately reflects all bid alternates and their associated completion times. Section 01 00 00 Paragraph 1.5 Construction Security Requirements, Subpart F Motor Vehicle Restrictions; Delete Part 2 regarding issuance of General Contractor parking permits and replace with, Contractor vehicle parking is not allowed anywhere on VA property. Section 01 35 26, Paragraph 1.14 Fire Safety, Subpart P Smoking; Rewrite this entire section to specifically state, Smoking, vaping and the use of all tobacco products is not allowed anywhere in VA facilities or on VA property. Section 01 35 26, Paragraph 1.12 Infection Control; Any references to Infection Control Risk Assessment (ICRA) Team should be replaced with Construction Health and Safety Team. Section 01 45 00, Paragraphs 3.1 and 3.4.B contradict unless edited form their original state. Verify the General Contractor s full-time onsite personnel requirements for this project and edit both of these paragraphs to agree with each-other by stating one of the following: State the Project Superintendent can/will serve as quality control (no separate, full- time onsite CQC System Manager required in addition to the Project Superintendent) - OR - State a 2nd, separate full-time onsite CQC System Manager is also required in addition to the Project Superintendent. NOTE: Option (1) is almost always the case unless it is determined during design that an additional, separate full-time onsite CQC Manager is required for this project. Reference to Above Ceiling Permit. Cincinnati VA Medical Center (CVAMC) Record Management Clause. Contractor shall comply with all applicable records management laws and regulations, as well as National Archives and Records Administration (NARA) records policies, including but not limited to the Federal Records Act (44 U.S.C. chs. 21, 29, 31, 33), NARA regulations at 36 CFR Chapter XII Subchapter B, and those policies associated with the safeguarding of records covered by the Privacy Act of 1974 (5 U.S.C. 552a). These policies include the preservation of all records, regardless of form or characteristics, mode of transmission, or state of completion. 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, 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. Cincinnati VA Medical Center (CVAMC) 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 CVAMC or destroyed except for in accordance with the provisions of the agency records schedules and with the written concurrence of the Head of the Contracting Activity. Willful and unlawful destruction, damage or alienation of Federal records is subject to the fines and penalties imposed by 18 U.S.C. 2701. In the event of any unlawful or accidental removal, defacing, alteration, or destruction of records, Contractor must report to CVAMC. The agency must report promptly to NARA in accordance with 36 CFR 1230. The Contractor shall immediately notify the appropriate Contracting Officer upon discovery of any inadvertent or unauthorized disclosures of information, data, documentary materials, records or equipment. Disclosure of non-public information is limited to authorized personnel with a need-to-know as described in the Statement of Work. 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 CVAMC control or the Contractor must hold it until otherwise directed. Items returned to the Government shall be hand carried, mailed, emailed, or securely electronically transmitted to the Contracting Officer or address prescribed in the Statement of Work. Destruction of records is EXPRESSLY PROHIBITED unless in accordance with Paragraph (4). The Contractor is required to obtain the Contracting Officer's approval prior to engaging in any contractual relationship (sub-contractor) in support of this contract requiring the disclosure of information, documentary material and/or records generated under, or relating to, contracts. The Contractor (and any sub-contractor) is required to abide by Government and CVAMC 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 CVAMC policy. The Contractor shall not create or maintain any records containing any non-public CVAMC 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 Freedom of Information Act. The CVAMC 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 CVAMC 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. [Note: To the extent an agency requires contractors to complete records management training, the agency must provide the training to the contractor. TMS Course 10203, VA Privacy & Information Security Awareness will be used to satisfy this requirement. The Contractor shall incorporate the substance of this clause, its terms and requirements including this paragraph, in all subcontracts under this Statement of Work 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. Security Requirements: Security Requirements General Security Contractors, contractor personnel, subcontractors, and subcontractor personnel shall be subject to the same Federal laws, regulations, standards, and VA Directives and Handbooks as VA and VA personnel regarding information and information system security. Access to VA Information and VA Information Systems A 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. 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. Training 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: Sign and acknowledge (either manually or electronically) understanding of and responsibilities for compliance with the VA Rules of Behavior, Appendix E relating to access to VA information and information systems; Successfully complete the VA Cyber Security Awareness and Rules of Behavior training and annually complete required security training; Successfully complete the appropriate VA privacy training and annually complete required privacy training; and Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access [to be defined by the VA program official and provided to the contracting officer for inclusion in the solicitation document e.g., any role-based information security training required in accordance with NIST Special Publication 800-16, Information Technology Security Training Requirements.] The contractor shall provide to the contracting officer and/or the COTR a copy of the training certificates and certification of signing the Contractor Rules of Behavior for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required. Failure to complete the mandatory annual training and sign the Rules of Behavior annually, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete. VA Information Custodial Language 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). 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. SECURITY INCIDENT INVESTIGATION The term security incident means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures. The contractor/subcontractor shall immediately notify the COTR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/subcontractor has access. 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. LIQUIDATED DAMAGES FOR DATA BREACH Consistent with the requirements of 38 U.S.C. §5725, a contract may require access to sensitive personal information. If so, the contractor is liable to VA for liquidated damages in the event of a data breach or privacy incident involving any SPI the contractor/subcontractor processes or maintains under this contract. However, it is the policy of VA to forgo collection of liquidated damages in the event the contractor provides payment of actual damages in an amount determined to be adequate by the agency. 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: Notification; One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports; Data breach analysis; Fraud resolution services, including writing dispute letters, initiating fraud alerts and credit freezes, to assist affected individuals to bring matters to resolution; One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and Necessary legal expenses the subjects may incur to repair falsified or damaged credit records, histories, or financial affairs. VA INFORMATION AND INFORMATION SYSTEM SECURITY/PRIVACY LANGUAGE FOR INCLUSION INTO CONTRACTS. GENERAL Contractors, contractor personnel, subcontractors, and subcontractor personnel shall be subject to the same Federal laws, regulations, standards, and VA Directives and Handbooks as VA and VA personnel regarding information and information system security. ACCESS TO VA INFORMATION AND VA INFORMATION SYSTEMS A contractor/subcontrator 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. 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. 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. 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. 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. VA INFORMATION CUSTODIAL LANGUAGE 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). 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 COTR. NOT INCLUDED NOT INCLUDED SECURITY INCIDENT INVESTIGATION The term security incident means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action that breaches VA security procedures. The contractor/subcontractor shall immediately notify the COTR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/subcontractor has access. 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. 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. 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 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. 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. Each risk analysis shall address all relevant information concerning the data breach, including the following: Nature of the event (loss, theft, unauthorized access); Description of the event, including: date of occurrence; data elements involved, including any PII, such as full name, social security number, date of birth, home address, account number, disability code; Number of individuals affected or potentially affected; Names of individuals or groups affected or potentially affected; 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; Amount of time the data has been out of VA control; The likelihood that the sensitive personal information will or has been compromised (made accessible to and usable by unauthorized persons); Known misuses of data containing sensitive personal information, if any; Assessment of the potential harm to the affected individuals; Data breach analysis as outlined in 6500.2 Handbook, Management of Security and Privacy Incidents, as appropriate; and 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. 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: Notification; One year of credit monitoring services consisting of automatic daily monitoring of at least 3 relevant credit bureau reports; Data breach analysis; Fraud resolution services, including writing dispute letters, initiating fraud alerts and credit freezes, to assist affected individuals to bring matters to resolution; One year of identity theft insurance with $20,000.00 coverage at $0 deductible; and Necessary legal expenses the subjects may incur to repair falsified or damaged credit records, histories, or financial affairs. NOT INCLUDED TRAINING 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: 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; Successfully complete the VA Cyber Security Awareness and Rules of Behavior training and annually complete required security training; Successfully complete the appropriate VA privacy training and annually complete required privacy training; and Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access [to be defined by the VA program official and provided to the contracting officer for inclusion in the solicitation document e.g., any role-based information security training required in accordance with NIST Special Publication 800-16, Information Technology Security Training Requirements.] The contractor shall provide to the contracting officer and/or the COTR a copy of the training certificates and certification of signing the Contractor Rules of Behavior for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required. Failure to complete the mandatory annual training and sign the Rules of Behavior annually, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete.