PROGRAM 3573-S TERM: 05/08/2018 THRU 07/31/2019 

TITLE MEDICARE FALL NOTICE LETTERS

BASIS OF 

ITEM NO. DESCRIPTION AWARD UNIT RATE COST UNIT RATE COST UNIT RATE COST UNIT RATE COST

I. PRINTING/IMAGING, TRIMMING TO SIZE, ASSEMBLY, FOLDING, AND INSERTING:

(a) Printing/Imaging each image (static or variable data)...per 1,000 images 14,762 $59.50 $878,339.00 $16.03 $236,634.86 $4.77 $70,414.74 $3.77 $55,652.74

(b) Printing/Imaging each mailing envelope...per 1,000 envelopes 2,469 $9.50 $23,455.50 $9.20 $22,714.80 $6.74 $16,641.06 $8.85 $21,850.65

(c) Collate leaves, fold as required, and insert into envelope...per 1,000 leaves 7,381 $25.00 $184,525.00 $19.60 $144,667.60 $6.32 $46,647.92 $12.08 $89,162.48

II. STOCK/PAPER:

(a) Colored Writing (20 lbs.) or Colored Offset (50 lbs.)...per 1,000 leaves 6,343 $10.20 $64,698.60 $8.06 $51,124.58 $8.36 $53,027.48 $11.74 $74,466.82

(b) White Writing (20 lbs.) or White Offset (50 lbs.)...per 1,000 leaves 1,038 $6.53 $6,778.14 $5.47 $5,677.86 $5.88 $6,103.44 $7.25 $7,525.50

(c) White Writing/Wove Mailing Envelopes (20 or 24 lbs.)...per 1,000 envelopes 2,469 $14.91 $36,812.79 $6.72 $16,591.68 $10.12 $24,986.28 $8.85 $21,850.65

CONTRACTORS TOTALS $1,194,609.03 $477,411.38 $217,820.92 $270,508.84

DISCOUNT 0.00% $0.00 0.00% $0.00 0.25% $544.55 0.00% $0.00

DISCOUNTED TOTALS NET $1,194,609.03 NET $477,411.38 20 DAYS $217,276.37 NET $270,508.84

Abstracted by: Teri Shoffstall 4/17/2018

Verified by: Linda Price 4/18/2018

 

THE DATA CENTER, LLC

Salt Lake City, UT

 

DATA RECOGNITION CORP

Maple Grove, MN

 

NPC, INC

Claysburg, PA

AWARDED

 

SOURCELINK OHIO

Miamisburg, OH
Program 3573-S Page 1 of 49 

Written by LLP 

Reviewed by RLW 

U.S. GOVERNMENT PUBLISHING OFFICE 

Columbus, Ohio 

GENERAL TERMS, CONDITIONS, AND SPECIFICATIONS 

For the Procurement of 

Medicare Fall Notice Letters 

as requisitioned from the U.S. Government Publishing Office (GPO) by the 

Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), Baltimore, MD 

Single Award 

TERM OF CONTRACT 

The term of this contract includes an initial testing period and a production period. 

INITIAL TESTING PERIOD: Beginning Date of Award through July 31, 2018. 

PRODUCTION PERIOD: Beginning August 1, 2018 through July 31, 2019, plus up to four optional 12-month extension 

period(s) (August 1, 2019 through July 31, 2020, August 1 2020 through July 31, 2021, August 1, 2021 through 

July 31, 2022, and August 1, 2022 through July 31, 2023) that may be added in accordance with the “Option to Extend Term 

of Contract” clause in Section 1 of this contract. Special attention is directed to the “Economic Price Adjustment” clause in 

Section 1 of this contract. 

BID OPENING 

Bids shall be publicly opened at 2:00 p.m., prevailing Columbus, Ohio time on:

April 17, 2018 

Bids must be received by above date and time, late bids will not be considered. 

SUBMIT SEALED BID TO 

U.S. Government Publishing Office, Columbus Regional Office, 1335 Dublin Road, Suite 112-B, Columbus, OH 43215. 

Bid must be clearly marked on the outermost envelope/package with company name and address of the bidder, program 

number, and bid opening date. Bidder’s option to telefax quote to Columbus RO, (614) 488-4577. Telegraphic and e-mail 

quotes transmitted to GPO offices WILL NOT be considered.

BIDDERS PLEASE NOTE 

Formerly Program 1573-S. Bidders are cautioned to familiarize themselves with all provisions of this contract before 

bidding. Significant revisions have been made throughout the contract.

The GPO 910 “BID” Form is no longer required. Bidders are to fill out, sign/initial, as applicable, all pages of SECTION 4. 

– SCHEDULE OF PRICES. 

GPO has issued a new GPO Publication 310.2, GPO Contract Terms – Solicitations Provisions, Supplemental Specifications, 

and Contract Clause (Rev. 1-18). Prospective bidders should carefully read this publication as the applicable terms within 

become an integral part of this contract. The document is posted at https://www.gpo.gov/how-to-work-withus/vendors/forms-and-standards along with a list of major revisions. 

Abstract of bids for Program 1573-S available at https://www.gpo.gov/how-to-work-with-us/vendors/contract-pricing. 

For information of a technical nature call Linda Price at (614) 488-4616, ext. 7 (No collect calls). 
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SECTION 1. – GENERAL TERMS AND CONDITIONS 

GPO CONTRACT TERMS 

Any contract which results from this Invitation for Bid will be subject to the applicable provisions, clauses, 

and supplemental specifications of GPO Contract Terms (GPO Pub. 310.2, effective December 1, 1987 (Rev. 

1-18)) and GPO Contract Terms, Quality Assurance Through Attributes Program for Printing and Binding 

(GPO Pub. 310.1, effective May 1979 (Rev. 08/02)). 

 GPO Contract Terms (GPO Publication 310.2: 

https://www.gpo.gov/docs/default-source/forms-and-standards-files-for-vendors/terms-01-18.pdf

 GPO QATAP (GPO Publication 310.1): 

https://www.gpo.gov/docs/default-source/forms-and-standards-files-for-vendors/qatap.pdf

REGULATIONS GOVERNING PROCUREMENT 

The U.S. Government Publishing Office (GPO) is an office in the legislative branch of the United States 

Government. Accordingly, the Federal Acquisition Regulation is inapplicable to this, and all GPO 

procurements. However, the text of certain provisions of the Federal Acquisition Regulation as contained in 

the Code of Federal Regulations (CFR), are referenced in this solicitation. The offeror should note that only 

those provisions of the Federal Acquisition Regulation which are specifically incorporated by reference into 

this solicitation are applicable. 

SUBCONTRACTING 

The predominant production functions are downloading files, manipulating data from TIBCO files, 

computerized variable imaging, preparation for mailing, and delivery to USPS. These items CANNOT be 

subcontracted. All other items, including printing of static data are not considered part of the predominant 

production functions. Bidder who must subcontract any of the predominant production functions may be 

declared non-responsible. 

SECURITY 

The contractor awarded this contract will be in custody of Government owned material considered Personally 

Identifiable Information (PII). See “Section 5. – CMS Security Specifications” for security requirements of 

this contract. The Government may conduct on-site unannounced, randomized Security inspections at any 

time. 

CMS Acceptable Risk Safeguards for TIBCO transmissions: Low Security Impact Level. 

QUALITY ASSURANCE LEVELS AND STANDARDS 

The following levels and standards shall apply to these specifications: 

Product Quality Levels: 

 (a) Printing (Page Related) Attributes -- Level III. 

 (b) Finishing (Item Related) Attributes -- Level III. 

Inspection Levels (from ANSI/ASQC Z 1.4): 

 (a) Non-destructive Tests - General Inspection Level I. 

 (b) Destructive Tests - Special Inspection Level S-2. 

 
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Specified Standards: The specified standards for the attributes requiring them shall be: 

 Attribute Specified Standard 

 P-7. Type Quality and Uniformity Prior to Production Samples/Proofs 

 and/or PSI/Imaging Inspections 

CONTRACTOR’S QUALITY ASSURANCE SYSTEM 

The contractor must provide and maintain an effective quality assurance system that includes, at a minimum 

the following elements: 

1. Perform a random quality inspection of records in the TIBCO files. Samples should be tested for 

construction, type, and placement of data in each field. 

2. Ensure that the computerized imaging is clear and legible and that the appropriate notices are mailed 

to each address contained in the TIBCO files. 

3. Maintenance and calibration records on all applicable production and inspection equipment. 

4. Controls that assure all steps in the process generate a product that conforms to all requirements of 

this solicitation. 

5. Performance utilizing a calibration system that stops production whenever an extra piece is inserted 

or a piece is left out. 

If errors are found or discrepancies exist between the TIBCO data files and reports, e.g. print order, record 

layout, etc., the contractor must cease further production and contact Mark Rydberg at (410) 786-3038. If 

errors exist in the file and the contractor failed to identify them during his/her quality assurance inspection, no 

reimbursement for the cost of reprinting will be allowed. 

QUALITY SYSTEMS 

The contractor shall initiate, prior to start-up and maintain throughout the life of this contract, Quality 

Systems to assure conformance to all requirements of this contract. The Quality Systems plan should address 

what actions will be initiated when defects are detected. 

The Quality Systems shall assure the quality of components from subsidiary plants. This element includes 

assuring that components from different sources will be compatible BEFORE the start of production. 

The Quality Systems shall include procedures for assuring that all variable data are accurately and completely 

printed and that all addressed items are mailed. The procedures shall explicitly describe the methods to be 

used to assure that no records are missed or duplicated when an interruption of variable printing occurs (e.g. 

due to equipment malfunction). 

Records of tests, inspections, and critical processes shall be timed stamped and maintained on file. The 

records must be available to GPO and or HHS/CMS employees upon request until the expiration of the 

warranty period of this contract. 

VERIFICATION OF PRODUCTION AND MAILING 

Contractor will be responsible for validating the integrity of every notice produced in all phases of printing, 

inserting and mailing and to ensure all notices received from CMS were correctly entered into the United 

States postal system. 

Notice integrity shall be defined as: Each notice shall include all pages (and only those pages) intended for 

the designated recipient as contained in the print files received from CMS. 

 
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The contractor is responsible for providing the automated print notice integrity control systems and processes 

required to prevent the commingling of pages intended for different recipients into a completed package. The 

contractor’s printing process must have automated systems that include notice coding and scanning 

technology capable of: 

 Validating the count of pages in a notice set. 

 Validating the sequence of pages in a notice set. 

 Validating the sequence of notice sets in a production batch. 

 Interrupting production if variances are detected. 

Mailing integrity shall be defined as all Items received from CMS for each Print Order were imaged, printed, 

inserted and entered correctly into the United States postal system. 

The contractor is responsible for providing the automated inserted notice tracking/reporting systems and 

processes required to validate that 100% of all records received from CMS were printed, inserted and mailed 

correctly. The contractor’s inserting equipment must have automated systems that include notice coding and 

scanning technology capable of: 

 Reconciling page and notice counts from CMS provided print files to Print Order control totals 

provided by CMS; reporting variances. 

 Uniquely identifying each notice within a Print Order using a sequence number range assigned by the 

contractor. 

 Unique identifier to be scanned after insertion to ensure all notices are present and accounted for. 

 Tracking and reporting all notices produced and mailed within a Print Order at the notice level. 

 Identifying and reporting all missing notices that were lost or spoiled during production within a Print 

Order. 

 Generating a new production file for all missing notices. 

 Reconciling the total of all notices produced and mailed within a Print Order to the control totals 

provided by CMS; reporting all variances. 

 Reconciling the total of all notices mailed to mailing totals contained on Postal Entry Forms within a 

Print Order; reporting all variances. 

 Generate a final automated summary report which provides information that all mail pieces have been 

scanned, after insertion, verifying that all pieces for each Print Order are accounted for. The 

summary report will contain the sequence number range for a particular Print Order, show all 

sequence numbers were scanned and accounted for after notice is inserted, and event information on 

any spoiled or missing pieces verifying that they were scanned and accounted for. A copy of the 

summary report(s) must be submitted with the matching GPO Form 712(s). 

Contractor must generate an automated audit report when necessary showing the tracking of all Items 

throughout all phases of production for each mail piece. This audit report will contain all information 

outlined above for each phase of printing, inserting and mailing. All notice tracking/reporting data must be 

retained in electronic form for 120 days after mailing, and must be made available to CMS for auditing of 

contractor performance upon request. 

 
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UNIQUE IDENTIFICATION NUMBER 

Unique identifying numbers will be used to track each individual notice, thereby providing 100% 

accountability. This enables the contractor to track each notice through completion of the project. 

If required by the Government, the contractor may be required to create a test sample totaling 50 notices. 

This test must have a unique number and must be produced on each of the notices. The contractor will 

generate a list of the unique identifying numbers for each sample. As samples are pulled, their unique 

number will be marked off the list. This enables the contractor to track which samples have been produced 

and pulled and what records have been produced. 

In addition, if required, the contractor will produce a printed sample of each notice used for the Unique 

Identification Number sample plan. Those samples, along with the unique numbers, are to be processed and 

mailed directly to HHS/CMS; 7500 Security Blvd., SL 12-18; Baltimore, MD 21244-1850; Attn: Mark 

Rydberg. 

A recovery system will be required to ensure that all defective or missing/mutilated pieces detected are 

identified, reprinted and replaced. The recovery system must use unique sequential numbers assigned to each 

piece to aid in the recovery and replacement of any defective or missing/mutilated pieces, and must be 

capable of tracking and/or locating any individual piece of mail from the time it leaves the press, up to and 

including when it is off-loaded at the USPS facility. 

The Government will not as a routine matter request that the contractor produce individual pieces in transit 

within the plant, however, the contractor must demonstrate that they have an audit trail established that has 

the ability to comply with this type request when and if the need arises. The contractor’s Quality Assurance 

System and the Verification of Production and Mailing plans must account for the number of pieces mailed. 

The contractor shall monitor all aspects of the job including material handling and mail flow, to assure that 

the production and delivery of these notices meet specifications and Government requirements. 

REDUNDANT FACILITY 

As part of the pre-award survey, the contractor shall provide a redundant facility plan which is to include 

having two or more contractor owned/controlled facilities that have the capability to perform all predominate 

production requirements of the contract. This plan is to allow for back-up facilities if for any reason(s) (act of 

God, labor disagreements, etc.) a production facility is unable to meet all the requirements of the contract. 

The back-up facilities, equipment, and personnel must be established and operational prior to award. 

Failure to have a back-up facility may result in a non-responsible determination. 

WARRANTY 

The provisions of Article 15, “Warranty” of Contract Clauses in GPO Contract Terms is amended for the 

solicitation to the effect that the warranty period is EXTENDED from 120 days to one calendar year from the 

date the check is tendered as final payment. All other provisions remain the same. 

 
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OPTION TO EXTEND TERM OF CONTRACT 

The Government has the option to extend the term of this contract for a period of 12 months by written notice 

to the contractor not later than 30 days before the contract expires. If the Government exercises this option, 

the extended contract shall be considered to include this clause, except, the total duration of the contract may 

not exceed 5 years (July 31, 2023) as a result of, and including, any extension(s) added under this clause. 

Further extension may be negotiated under the “Extension of Term of Contract” clause. See also “Economic 

Price Adjustment” clause for authorized pricing adjustment(s). 

EXTENSION OF TERM OF CONTRACT 

At the request of the Government, the term of any contract resulting from this solicitation may be extended 

for such period of time as may be mutually agreeable to the GPO and the contractor. 

ECONOMIC PRICE ADJUSTMENT 

The pricing under this contract shall be adjusted in accordance with this clause, provided that in no event will 

any pricing adjustment be made that would exceed the maximum permissible under any law in effect at the 

time of the adjustment. 

There will be no adjustment for orders placed during the first period specified below. Pricing will thereafter 

be eligible for adjustment during the second and any succeeding performance period(s). For each 

performance period after the first, a percentage figure will be calculated as described below and that figure 

will be the economic price adjustment for that entire next period. 

Pricing adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to 

paper, if paper prices are subject to adjustment by separate clause elsewhere in this contract. 

For the purpose of this clause, performance under this contract will be divided into successive periods. The 

first period will extend from August 1, 2018 through July 31, 2019, and the second and any succeeding 

period(s) will extend for 12 months from the end of the last preceding period, except that the length of the 

final period may vary. The first day of the second and any succeeding period(s) will be the effective date of 

the economic price adjustment for that period. 

Pricing adjustments in accordance with this clause will be based on changes in the seasonally adjusted 

“Consumer Price Index For All Urban Consumers – Commodities Less Food” (Index) published monthly in 

the CPI Detailed Report by the U.S. Department of Labor, Bureau of Labor Statistics. 

The economic price adjustment will be the percentage difference between Index averages as specified in this 

paragraph. An index called the variable index will be calculated by averaging the monthly Indexes from the 

12-month interval ending three (3) months prior to the beginning of the period being considered for 

adjustment. This average is then compared to the average of the monthly Indexes for the 12-month interval 

ending April 30, 2018, called the base index. The percentage change (plus or minus) of the variable index 

from the base index will be the economic price adjustment for the period being considered for adjustment. 

The Government will notify the contractor by contract modification specifying the percentage increase or 

decrease to be applied to invoices for orders placed during the period indicated. The contractor shall apply 

the percentage increase or decrease against the total price of the invoice less reimbursable postage or 

transportation costs and separately adjusted paper prices. Payment discounts shall be applied after the invoice 

price is adjusted. 

 
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If the Government exercises an option, the extended contract shall be considered to include this economic 

price adjustment clause. 

PAPER PRICE ADJUSTMENT 

Paper prices charged under this contract will be adjusted in accordance with “Table 9 – Producer Price 

Indexes and Percent Changes for Commodity Groupings and Individual Items” in Producer Price Indexes 

report, published by the Bureau of Labor Statistics (BLS), as follows: 

1. BLS code 0913-01 for “Offset and Text” will apply to all paper required under this contract. 

2. The applicable index figures for the month of August 1, 2018 will establish the base index. 

3. There shall be no price adjustment for the first three months of the contract. 

4. Price adjustments may be monthly thereafter, but only if the index varies by an amount (plus or 

minus) exceeding 5% by comparing the base index to the index for that month which is two months 

prior to the month being considered for adjustment. 

5. Beginning with order placement in the fourth month, index variances will be calculated in accordance 

with the following formula: 

Object 1: PPA Formula 

 x 100 = %

base index

x base index ____

where X = the index for that month which is two months prior to the month being considered for 

adjustment. 

6. The contract adjustment amount, if any, will be the percentage calculated in 5 above less 5%. 

7. Adjustments under this clause will be applied to the contractor’s bid price(s) for all line items under 

“Item II. STOCK/PAPER” in the Schedule of Prices and will be effective on the first day of any 

month for which prices are to be adjusted. 

The Contracting Officer will give written notice to the contractor of any adjustments to be applied to invoices 

for orders placed during months affected by this clause. 

In no event, however, will any price adjustment be made which would exceed the maximum permissible 

under any law in effect at the time of the adjustment. The adjustment, if any, shall not be based upon the 

actual change in cost to the contractor, but shall be computed as provided above. 

The contractor warrants that the paper prices set forth in this contract do not include any allowance for any 

contingency to cover anticipated increased costs of paper to the extent such increases are covered by this 

price adjustment clause. 

 
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PRE-AWARD SURVEY 

In order to determine the responsibility of the prime contractor or any subcontractor, the Government reserves 

the right to conduct an on-site pre-award survey at the contractor’s/subcontractor’s facility or to require other 

evidence of technical, production, managerial, financial, and similar abilities to perform, prior to the award of 

a contract. 

The Pre-award Survey will include a review of all subcontractors involved, along with their specific 

functions; and the contractor’s/subcontractor’s, personnel, data handling, production, security and other 

requirements outlined in “Section 5 – CMS Security Specifications”. 

Attending the pre-award survey will be representatives from the Government Publishing Office and/or the 

Centers for Medicare and Medicaid Services. The Government reserves the right to conduct post-award 

surveys of the same nature as needed. 

POST-AWARD CONFERENCE 

The post-award conference between contractor and agency is required, unless waived by the Government. 

The post-award conference will be conducted via telephone or at contractor’s facility(ies). The purpose of the 

conference will be to discuss and review all aspects of the contractor’s production plan and to establish 

coordination of all internal and external operations required to complete the contract and for CMS to 

determine the appropriate level of security investigation. 

POST-AWARD TEST 

The post-award test will be conducted within the Initial Testing Period beginning Date of Award through 

July 31, 2018. The contractor awarded the contract shall be required to demonstrate their ability to retrieve 

TIBCO files and print the items required in these specifications at the requisite quality level by completing a 

post-award test which includes a Variable Data Test and a Live Notice Test as described hereafter. The 

Government reserves the right to waive the post-award test if there is other evidence that, in the opinion of the 

Contracting Officer, indicates that the contractor being considered for award has the capability to successfully 

produce the items required. 

VARIABLE DATA TEST 

Unless waived by the Government, 2 work days after receipt of data files and the Data Layout Sheet, the 

contractor may be required to submit post-award test samples. The contractor will be required to submit 50 

randomly selected samples in .PDF format of the notices to be ordered under this contract. 

Contractor must also submit the corresponding source data files (also known as a “data dump”). Test samples 

must show the correct variable data information taken from the furnished test files in accordance with the 

Data Layout Sheet. 

In addition, the contractor will be required to provide data programming as required to accomplish the 

Variable Computerized Imaging as defined under “Printing/Imaging” in “Section 2 – Specifications”. E-mail 

the test samples to mark.rydberg@cms.hhs.gov. 

 
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LIVE NOTICE TEST 

Within 3 workdays after receiving Variable Data Test approval, the contractor must submit the samples for 

evaluation to: HHS/CMS; 7500 Security Blvd., SL 12-18; Baltimore, MD 21244-1850; Attn: Mark Rydberg. 

The contractor will be required to submit 50 test proofs of each complete notice as required by the 

Government. Each notice must be a completed, ready-to-mail package and include the notices and mailing 

envelope and must be produced in accordance with the specifications. 

The furnished records will simulate the items the contractor may be expected to print and mail. Each notice 

must be constructed as specified and must be of the size, kind, and quality that the contractor will furnish. 

VARIABLE DATA TEST AND LIVE NOTICE TEST 

The Variable Data Test and Live Notice Test produced during the post-award test will be checked for 

adherence to all specifications. The Government will approve, conditionally approve, or disapprove these test 

proofs and samples within 2 workdays of the receipt thereof. 

Approval or conditional approval shall not relieve the contractor from complying with the specifications and 

all other terms and conditions of the contract. A conditional approval shall state any further action required 

by the contractor. A notice of disapproval shall sate the reasons therefore. 

If these copies are disapproved by the Government due to printer’s errors, the Government may require the 

contractor to submit additional copies for inspection and testing, in the time and under the terms and 

conditions specified in the notice of disapproval. Such additional copies shall be furnished, and necessary 

changes made, at no additional cost to the Government and no additional time will be allowed in the schedule. 

In the event these additional copies are disapproved by the Government due to printer’s errors, the contractor 

may be deemed to have failed to make delivery within the meaning of the default clause in which event this 

contract shall be subject to termination for default. 

If the ability to achieve the specified quality is not satisfactorily demonstrated, the contractor may be subject 

to Termination for Default for contractor’s failure to perform. The post-award test will be performed at no 

cost to the Government. All samples must be manufactured at the same facilities and on the same equipment 

used for producing contract production quantities. 

ASSIGNMENT OF JACKETS, PURCHASE AND PRINT ORDERS 

A GPO jacket number will be assigned and a purchase order issued to the contractor to cover work 

performed. The purchase order will be supplemented by an individual “Print Order” for each job placed with 

the contractor. The print order, when issued, will indicate the quantity to be produced and any other 

information pertinent to the particular order. 

ORDERING 

Items to be furnished under the contract shall be ordered by the issuance of print orders by the Government. 

Production orders may be issued under the contract from August 1, 2018 through July 31, 2019 plus for 

such additional period(s) as the contract is extended. All print orders issued hereunder are subject to the 

terms and conditions of the contract. The contract shall control in the event of conflict with any print order. 

A print order shall be “issued” upon notification by the Government for purposes of the contract when it is 

electronically transmitted or otherwise physically furnished to the contractor in conformance with the 

schedule. 

 
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REQUIREMENTS 

This is a requirements contract for the items and for the period specified herein. Shipment/delivery of items 

or performance of work shall be made only as authorized by orders issued in accordance with the clause 

entitled “Ordering”. The quantities of items specified herein are estimates only, and are not purchased 

hereby. Except as may be otherwise provided in this contract, if the Government’s requirements for the items 

set forth herein do not result in orders in the amounts or quantities described as “estimated”, it shall not 

constitute the basis for an equitable price adjustment under this contract. 

Except as otherwise provided in this contract, the Government shall order from the contractor all the items set 

forth which are required to be purchased by the Government activities identified on page 1. 

The Government shall not be required to purchase from the contractor, requirements in excess of the limit on 

total orders under this contract, if any. 

Orders issued during the effective period of this contract and not completed within that time shall be 

completed by the contractor within the time specified in the order, and the rights and obligations of the 

contractor and the Government respecting those orders shall be governed by the terms of this contract to the 

same extent as if completed during the effective period of this contract. 

If shipment/delivery of any quantity of an item covered by the contract is required by reason of urgency prior 

to the earliest date that shipment/delivery may be specified under this contract, and if the contractor will not 

accept an order providing for the accelerated shipment/delivery, the Government may procure this 

requirement from another source. 

The Government may issue orders which provide for shipment/delivery to or performance at multiple 

destinations. 

Subject to any limitations elsewhere in this contract, the contractor shall furnish to the Government all items 

set forth herein which are called for by print orders issued in accordance with the “Ordering” clause of this 

contract. 

DELIVERY/SHIPPING STATUS INFORMATION 

Contractors are to report information regarding each order for compliance reporting purposes and include date 

of delivery (or shipment if applicable) for proofs and delivery schedules in accordance with the contract 

requirements by contacting Columbus Regional Office via e-mail to trackcolumbus@gpo.gov, or by calling 

(614) 488-4616, ext. 6, or by faxing to (614) 488-4577. Personnel receiving e-mail, phone call, or fax may be 

unable to respond to questions of a technical nature or transfer any inquiries. 

PAYMENT 

Submitting all invoices for payment via the GPO fax gateway (if no samples are required) utilizing the GPO 

barcode coversheet program application is the most efficient method of invoicing. Instruction for using this 

method can be found at https://winapps.access.gpo.gov/fms/vouchers/barcode/instructions.html. 

Invoices may also be mailed to: U.S. Government Publishing Office, Office of Financial Management, Attn: 

Comptroller, Stop: FMCE, Washington, DC 20401. 

For more information about the billing process refer to the General Information of the Office of Finance web 

page located at https://www.gpo.gov/how-to-work-with-us/agency/billing-and-payment. 

 
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At time of invoicing, the contractor shall submit a copy of the print order, contractor’s invoice, and all 

mailing and/or delivery receipts via e-mail to infocolumbus@gpo.gov. 

In addition to the payment voucher submitted to GPO for billing, the contractor is required to e-mail to Mark 

Rydberg at mark.rydberg@cms.hhs.gov a copy of the GPO voucher and mailing statements for each print 

order within five workdays after mailing has been completed by the contractor. 
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SECTION 2. – SPECIFICATIONS 

SCOPE 

These specifications cover the production of Medicare Fall Notices, requiring such operations as printing static 

and variable data in English and Spanish, envelope construction and printing, collating, folding, inserting, and 

mailing. 

TITLE 

Medicare Fall Notice Letters 

 Notice A: RA Plan Termination Notices (Pubs. 11208 and 11208S in English and Spanish) 

 Notice B: RA Premium Increase Notices (Pubs. 11209 and 11209S in English and Spanish) 

 Notice C: Chooser Notice (Pubs. 11267 and 11267S in English and Spanish) 

 Notice D: ACA PDP Increase Notice (Pubs. 11475 and 11475S in English and Spanish) 

 Notice E: ACA Termination Notice (Pubs. 11496 and 11496S in English and Spanish) 

 Notice F: Initial Low Performing Plan Notice (Pubs. 11627 and 11627S in English and Spanish) 

 Notice G: Final Low Performing Plan Notice (Pubs. 11633 and 11633S in English and Spanish) 

NOTE: Additional Notices may be added during the term of the contract. 

FREQUENCY OF ORDERS 

Each print order may contain multiple Notices. It is anticipated that print orders will be placed between 

September and January in two phases. The first phase of orders will be for the “Initial” quantity to beneficiaries 

and the second phase will be for the “Supplemental” quantity to beneficiaries and will be ordered 1 to 2 months 

after the “Initial” quantity. Not every Notice will have a “Supplemental” quantity. 

QUANTITIES 

All quantities are approximate and the Government reserves the right to increase or decrease the anticipated 

quantity by up to 25%. Exact quantity will be furnished with final TIBCO address files. The following is 

anticipated: 

Table 2: Anticipated Quantities 

Notice Minimum Quantity Maximum Quantity Anticipated Initial Quantity 

A: Pubs. 11208/11208S 50 55,000 20,000

B: Pubs. 11209/11209S 3,000 500,000 372,000

C: Pubs. 11267/11267S 850,000 1,500,000 1,057,000

D: Pubs. 11475/11475S 3,000 500,000 371,000

E: Pubs. 11496/11496S 300 200,000 115,000

F: Pubs. 11627/11627S 4,000 500,000 434,000

G: Pubs. 11633/11633S 25,000 100,000 85,000

The second phase of orders may or may not include all notice types and, when ordered, the quantity is anticipated 

to be between 1% and 10% of the first phase quantity ordered. 

 
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PAGES 

Notices will have up to 8 pages and consist of Content pages and CMS Non-Discrimination Notice and Language 

Assistance pages (ND&L). Most Notices will also contain a Medicare Drug Plan page. Some Notices will also 

contain Prescription Drug pages. Additional Notices or additional pages may be added during the term of 

the contract.

Notice A: Anticipate 6 pages: Content (pages 1 and 2), ND&L (pages 3, 4, and 5), and Drug Plan (page 6) 

Notice B: Anticipate 6 pages: Content (pages 1 and 2), ND&L (pages 3, 4, and 5), and Drug Plan (page 6) 

Notice C: Anticipate 6 pages: Content (page 1), ND&L (pages 2, 3, and 4), Drug Plan (page 5), and *footer only 

(page 6) 

Notice D: Anticipate 8 pages: Content (page 1), Prescription Drug (pages 2 and 3), ND&L (pages 4, 5, and 6), 

Drug Plan (page 7), and *footer only (page 8) 

Notice E: Anticipate 8 pages: Content (page 1), Prescription Drug (pages 2 and 3), ND&L (pages 4, 5, and 6), 

Drug Plan (page 7), and *footer only (page 8) 

Notice F: Anticipate 4 pages: Content (page 1) and ND&L (pages 2, 3, and 4) 

Notice G: Anticipate 4 pages: Content (page 1) and ND&L (pages 2, 3, and 4) 

*NOTE: CMS footer appears on all Notice pages. The footer will be the only printing on the last page of Notices 

C, D, and E. 

TRIM SIZES 

Notices: 8-1/2 x 11” 

Mailing Envelopes: 4-1/8 x 9-1/2” #10 envelopes with non-standard window 

GOVERNMENT TO FURNISH 

A visual of all Notices may be furnished at the post-award conference. 

Complete record specifications for each Notice, PS Form 3615 (Mailing Permit Application and Customer 

Profile), and GPO Form 712 (Certificate of Conformance), and envelope artwork will be furnished via e-mail in 

PDF or Microsoft Word file format at the time of award. 

Variable data files will be furnished for each Notice via electronic file transmission (EFT) using TIBCO mail box 

at the same time the static data files and GPO Form 2511, Print Order are issued. Contractor must obtain 

approval from CMS IT Security for access to CMS computer systems. Contractor will need an Internet browser, 

the browser must be Internet Explorer 11.0 or above, or GIS-compatible secure File Transfer Protocol Client 

(FTP). 

Static data files, including GPO Form 2511, Print Order, will be furnished via e-mail in PDF or Microsoft Word 

file format. 

SOFTWARE 

Files for static data will be furnished in PDF or Microsoft Word 2013 file formats. Program will be on either 

Apple OSX platform or Microsoft Windows 8 platform. Contractor will be required to support all current and 

future upgrades for platform and software. 

Fonts: All printer and screen fonts will be furnished. The contractor is cautioned that furnished fonts are the 

property of the Government and/or its originator. All furnished fonts are to be eliminated from the contractor’s 

archive immediately after completion of the contract. 

 
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SPECIAL SOFTWARE CONSIDERATION 

Office graphics (e.g., files from Presentation, Word Processing, or other non-publishing applications) are 

furnished for this procurement. Additional system work may be required to produce output as per specifications. 

If supplied by the Government, a black and white visual will be used as the standard for page integrity. 

Contractor must ensure that the job outputs exactly as the furnished visual. 

The contractor will not receive additional compensation, or time for common errors associated with the output of 

Office Graphics files. Common errors include, but are not limited to: 1) Color issues and Shifts (RGB color 

data, no spot colors, loss of Black plate), 2) Page Integrity (text reflow), 3) Missing prepress features (e.g., 

bleeds, trim marks), or 4) Loss of text characters from graphic elements. 

Upon completion of the order, the contractor must furnish final production native application files (digital 

deliverables) with the furnished material. The digital deliverables must be an exact representation of the final 

printed product and shall be returned on the same type of storage media as was originally furnished. 

NOTE: If discrepancies are found on the Government-furnished material(s), the contractor must contact Mark 

Rydberg at (410) 786-6959, before starting production. 

ELECTRONIC PREPRESS 

Immediately upon receipt and prior to image processing, the contractor shall perform a basic check (preflight) of 

the furnished media and publishing files to assure correct output of the required reproduction image. Any errors, 

media damage, or data corruption that might interfere with proper file image processing must be reported to 

Columbus GPO Contracting Office prior to further performance. 

It is recommended that the contractor output files on the same platform (i.e. PC); no additional time or 

compensation will be given for errors commonly associated with file output from a different platform. 

The contractor shall create or alter any necessary trapping, set proper screen angles and screen frequency, and 

define file output selection for the imaging device being utilized. Furnished files must be imaged as necessary to 

meet the assigned quality level. 

ADDITIONAL FURNISHED MATERIAL 

The following is a list of additional items that will be furnished to the contractor. 

GPO Form 952 (Desktop Publishing – Disk Information). 

Print Orders (GPO Form 2511). 

Delivery/Shipping Status Report Form. Form 905 (R. 3/90). 

Identification markings such as register marks, ring folios, rubber stamped jacket numbers, commercial 

identification marks of any kind, etc., except GPO imprint, form number, and revision date, carried on copy or 

film, must not appear on finished product. 

CONTRACTOR TO FURNISH 

All materials and operations, other than those listed under “Government to Furnish”, necessary to produce the 

products in accordance with these specifications. 

Contractor is required to verify that the CMS furnished files and quantity(s) are in the TIBCO mailbox within two 

hours of the print order and file(s) have been made available for downloading. 

 
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REPRODUCIBLES: The contractor must make all reproducibles required. The contractor is responsible for 

determining what type reproducibles will be used but must maintain the quality level specified in the contract. No 

separate charges will be allowed for the various types of reproducibles that may be used. 

Further, the contractor is responsible for outputting all images contained on furnished material, regardless of the 

production process, at the highest effective resolution possible. The contractor is responsible for determining the 

appropriate output resolution to achieve optimal results for such design elements as blends, gradients, halftones, 

type and other images. This determination should be made using factors such as stock, imaging device (or press) 

being used, and other factors unique to the contractors production environment. 

VARIABLE DATA VERIFICATION AND PDF PROOFS 

VARIABLE DATA VERIFICATION 

Contractor to download variable data from TIBCO and confirm receipt. Contractor to perform necessary 

operations to identify corrupted data, file incompatibility, verify quantity of data files, and report any issues to 

CMS within 2 hours of receipt of files. Variable data files will contain mailing addresses and will have CASS and 

NCOA certifications performed prior to file submission; however, contractor will be required to perform 

necessary operations to output all USPS required documents for mailing and report addresses not suitable for 

mailing to CMS. 

PDF PROOFS 

One set of the “Press Quality” PDF “soft” proofs (for content only) of the envelopes will be required on the first 

production order. Contractor to maintain approved proof for the term of the contract or until revised envelope 

artwork is provided, whichever comes first. Approved proof will serve as the “Specified Standard” until a new 

proof is approved. 

The contractor is required to submit 50 “Press Quality” PDF “soft” proofs (for content only) of Notices with 

variable data from both English and Spanish files for each notice of each order. 

All “Press Quality” PDF “soft” proofs to be produced using the same Raster Image Processor (RIP) that will be 

used to produce the final printed product. Proofs will be evaluated for variable and static data, text flow, and 

image position. 

Proofs of Notices must be submitted via e-mail and be encrypted, password protected, and PK zipped. E-Mail 

proofs to Mark Rydberg at the following e-mail address mark.rydberg@cms.hhs.gov. 

Contractor must also submit the corresponding source data files (also known as a “data dump”) in a 

Microsoft Excel format in the same sequence as the submitted Notice proofs.

Phone notification at (410) 786-3038 to confirm receipt of e-mail. Include Jacket # and Requisition #, Program # 

and Print Order # with title. 

VARIABLE DATA VERIFICATION AND PDF PROOF APPROVAL 

The contractor will be responsible for performing all necessary proofreading to insure that the proofs submitted 

are in conformity with the furnished copy and record specifications. 

If CMS finds errors during the proofing process, the contractor must make all corrections and submit additional 

proofs along with the corresponding source data files. This process will be repeated until the contractor submit 

samples that CMS considers to be error-free. 

 
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If any contractor’s errors are serious enough in the opinion of the GPO to require revised proofs, the revised 

proofs are to be provided at no expense to the Government. No extra time can be allowed for this reproofing; 

such operations must be accomplished within the original production schedule allotted in the specifications. 

The Government will approve or disapprove the samples within the number of workdays as defined under 

“Schedule”. Notification will be given by e-mail. Approval or disapproval will not relieve the contractor of 

complying with the specifications and all other terms and conditions of the contract. Additional e-mail samples 

may be required if image samples are disapproved. 

The contractor must not print/image prior to receipt of an OK to print. 

PRESS SHEET/IMAGING INSPECTION 

Final makeready press sheets/imaging may be inspected and approved at the contractor’s plant for the purpose of 

establishing specified standards for use during the actual press run/imaging. Upon approval of the 

sheets/imaging, the contractor is charged with maintaining those standards throughout the press run/imaging 

process (within QATAP tolerances when applicable) and with discarding all makeready sheets that preceded 

approval. See GPO Publication 315.3 (Guidelines for Contractors Holding Press Sheet Inspections) dated August 

2002 (available on GPO web site at: http://www.gpo.gov/printforms/index.html. 

NOTE: A press sheet/imaging inspection is for the purpose of setting specific standards that are to be maintained 

throughout the entire run. It does not constitute a prior approval of the entire run. 

Press sheets must contain control bars for each color of ink on the sheet. Control bars must be placed parallel to 

the presses ink rollers. The control bars must show areas consisting of solid color patches, tint patches, dot gain 

scale (such as, BRUNNER, GATF, GRETAG, or RIT) and gray balance patches for process color (if applicable). 

These areas must be repeated across the entire press sheet. 

ON-SITE PRESS SHEET AND IMAGING INSPECTIONS 

Unless waived by the Government, an on-site press and imaging inspections for the first printing of each notice 

will be conducted. The notification schedule (below) should be followed for these Inspections. The contractor 

shall make all efforts necessary to schedule the imaging and printing inspection on the same, or subsequent, days 

for all of the notices. 

NOTE: The Government may conduct on-site randomized Security and Imaging inspections at anytime. 

Notification: Call the Columbus RPPO at (614) 488-4616 and Mark Rydberg at 410-786-6959 with a minimum 

notice of 2 work days prior to availability of press sheets. This notification must provide the starting date and 

time of the first press form, as well as the tentative schedule for all subsequent press forms required for complete 

production. On site press inspections must be scheduled Monday through Friday, exclusive of Federal holidays, 

and scheduled to begin between the hours of 7:00 a.m. and 7:00 p.m. local time. 

It is the contractor’s responsibility to maintain and adjust inspection schedules, as required, to ensure all 

subsequent inspections are performed on following workdays. Inspection schedules must allow Government 

representatives to complete approval of all press forms within the day/time requirements. Inspections must not be 

scheduled on weekends, or to “carry over to the following week” without prior approval by the GPO Contracting 

Officer. 

The GPO Contracting Officer reserves the right to deny requests for press inspections that conflict with these 

scheduling requirements. Failure to comply with these scheduling requirements may result in additional 

Government per diem, overtime, and/or travel related charges which may be chargeable to the contractor (See 

GPO Contract Terms, Pub. 310.2, (Rev. 6-01), Article 14. Inspection and Tests, (e) (1) & (2)). 

 
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STOCK/PAPER 

The specifications of all paper furnished must be in accordance with those listed herein or listed for the 

corresponding JCP Code numbers in the “Government Paper Specification Standards No. 12” dated March 2011. 

Color of paper furnished shall be of a uniform shade and a close match by visual inspection of the JCP and/or 

attached color sample(s). The Contracting Officer reserves the right to reject shipments of any order printed on 

paper the color of which, in his opinion, materially differs from that of the color sample(s). 

To assure the mailing qualifies for all automation discounts, meets USPS mail quality standards, and to prevent 

delays in processing, the color of the notice paper and ink used to address the mailpiece MUST meet all USPS 

mail acceptance/automation requirements for Reflectance and Print contrast. 

NOTICES A, B, D, AND E: 

Colored Writing, anticipate blue, basis size 17 x 22”, 20 lbs. per 500 sheets, equal to JCP Code D10 or Colored 

Offset Book, anticipate blue, basis size 25 x 38”, 50 lbs. per 500 sheets, equal to JCP Code A63. 

NOTICE C: 

Colored Writing, anticipate tan, basis size 17 x 22”, 20 lbs. per 500 sheets, equal to JCP Code D10 or Colored 

Offset Book, anticipate tan, basis size 25 x 38”, 50 lbs. per 500 sheets, equal to JCP Code A63. 

NOTICES F AND G: 

White Writing, basis size 17 x 22”, 20 lbs. per 500 sheets, equal to JCP Code D10 or White Offset Book, basis 

size 25 x 38”, 50 lbs. per 500 sheets, equal to JCP Code A63. 

MAILING ENVELOPES: 

White Writing or Wove envelopes, basis size 17 x 22”, 20-24 lbs. per 500 sheets, equal to JCP Code V20. 

PRINTING/IMAGING 

Contractor will be required to print/image variable and static data in black ink, as required. All pages of all 

Notices print/image, no blanks. At contractor’s option, static data may be imaged digitally or printed using the 

traditional offset method. All imaging/printing, regardless of method must meet Quality Level III attributes. 

STATIC DATA IMAGING 

NOTICES: Contractor will be required to print/image static data in black ink face and back, as required. At 

contractor’s option, static data may be imaged digitally or printed using the traditional offset method. All 

imaging/printing, regardless of method must meet Quality Level III attributes. 

ENVELOPES: The following specifications will apply to all envelopes ordered on this contract. The contractor 

has option of printing a month’s supply of envelope inventory but is cautioned that reimbursement will only be 

made for the total quantity ordered. 

Print static data face and back (after construction) in black ink. Face prints return address in upper left corner, 

First-Class Mail postage and fees paid permit imprint in upper right corner and one line of type. Flap (back) of 

envelope prints four typelines and one rule in black ink. Overall size of image on flap is 1-3/4 x 1” and is to be 

centered on flap. Follow furnished copy. 

 
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Use standard obliteration feature inside of envelope. The contractor may use jumbled character design, or at the 

contractor’s option use their own design, printing in blue/black ink, but must guarantee that the product will 

insure complete opacity and prevent show through of any material contained therein and cannot bleed onto 

enclosed material. 

VARIABLE COMPUTERIZED IMAGING 

Contractor will be required to provide variable imaging of Notices in black ink in accordance with record 

specifications provided with the individual print order. The record specifications will identify the field name, 

format, start/end position, and additional information. Most pages will contain a significant number of variable 

data fields, including address fields. The Prescription Drug pages and Drug Plan pages will contain extensive 

variable data fields. 

All imaging must be a minimum resolution of 600 x 600 dpi dots per inch and meets Quality Level III attributes. 

ADDRESS FORMATTING REQUIREMENTS 

Address placement, format, and fonts must be consistent with current U.S. Postal Service (USPS) Address Quality 

Standards, and in accordance with appropriate USPS rules and regulations including USPS Domestic Mail 

Manual (DMM) in effect at the time of mailing. The type font must be one of the USPS accepted and verified 

MLOCR readable type. Position of all elements per furnished copy, no bleeds. 

To assure the mailing qualifies for all automation discounts, meets USPS mail quality standards and prevent 

delays in processing, the color of the enrollment notice paper and ink used to address the mailpiece must meet all 

USPS mail acceptance/automation requirements for reflectance and print contrast.

The address fields will be four to seven lines. Contractor to address using laser imaging or suitable method using 

approved font and size in black. All address elements, components, ink characteristics and IMb barcodes must 

meet USPS automated mail processing equipment compatibility standards and comply with all related USPS 

requirement as sited in the DMM and Standard Mail Processing Guidelines in effect at the time of mailing. 

PRESCRIPTION DRUG PAGES 

Notices D and E require Prescription Drug pages with specific table formatting requirements. These Notices will 

have a table on first page of the Prescription Drug pages the face which may or may not carry over to the second 

page of the Prescription Drug pages. This table consists of individual drugs and drug coverage information for 

each recipient. This list is printed in a table format. This table should adjust in size, based on the number of 

drugs per individual recipient. There should be no blank spaces or table lines after the last drug present on the 

record specification. The footnote statement that follows the drug listing should also adjust with the table 

information. This will cause the Prescription Drug pages to be variable in page length depending on the number 

of drugs per individual beneficiary. Drug coverage status’ are variable and in some instances print in bold text. 

Variable printing and variable text formatting is required. When table carries over to the second page, the table 

header MUST be repeated. 

DRUG PLAN PAGES 

Notices A, B, C, and D require the Medicare Drug Plan page. This page contains variable data that is state/region 

specific and is common to all addresses in that state/region. The beneficiary’s city and state address on the Notice 

must correspond with the specific state/region Medicare Drug Plan. Government will furnish files for the regional 

Medicare Drug Plans for Notices. 

MARGINS 

Adequate gripper margins follow trim marks on furnished sample and electronic files. No bleeds. 

 
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ENVELOPE SPECIFICATIONS 

Envelope Construction: Envelope to be open side with diagonal or side seams (contractor’s option) and a fully 

gummed flap. Face of envelope to have an approximately 4-1/4 x 1-3/8” die-cut window positioned 3/4” from 

left and 3/4” from bottom to allow imaged addresses on letter to show through window when it is folded and 

inserted. Contractor to determine exact size and position of window. 

Window must be sized to accurately display up to seven lines of address, IMb barcodes and meet all applicable 

USPS machinable mail/addressing standards. Cover window with a clear glassine or poly material securely glued 

on all sides. 

TRIMMING/FOLDING/ASSEMBLY 

Trim four sides. Each piece of each Notice is to be gathered in sequence, face up on all pages and fold from 8-1/2 

x 11” to 8-1/2 x 7-1/4” and then to 8-1/2 x 3-9/16”, with two accordion or wraparound folds, with the address on 

Notice facing out for visibility of the address through the window in the envelope. 

It is the contractor’s responsibility to assure that only the computer-generated address and PostNet or IMb 

barcode on the notice will be visible through the window in the envelope and that only one complete Notice is 

inserted into each envelope. 

MAIL PREPARATION 

All envelopes will have a printed CMS Mail Postage and Fees Paid permit. The contractor is cautioned to use the 

permit imprint only for mailing material produced under this contract. 

Using the CMS address information as provided, the contractor is required to obtain the maximum USPS postage 

discounts possible in accordance with the USPS First Class mail automated mail discount structure in effect at the 

time of mailing. In compliance with USPS Mail Preparation & Sortation Regulations, all mail must be 

appropriately marked and supported with the documentation necessary to ensure USPS acceptance. 

Mailing Envelopes must be prepared and sealed in a manner that will ensure acceptance, security and safe 

delivery by the U.S. Postal Service. Gather each piece and insert into mailing envelope, and seal. 

The contractor must provide all mailing materials, as well as all labeling and marking, as necessary to fulfill 

mailing and distribution requirements. Noncompliance with the packing and labeling instructions will be cause 

for the Government to take corrective action in accordance with GPO Pub. 310.2. 

Contractor must be able to read/print up to seven lines of address information and insure all addresses can display 

address format acceptable for USPS automation processing. 

Addresses for this mailing come from a Government maintained file. For this mailing, CMS will provide 

certificates indicating that within 95 days the addresses have been matched against both the USPS required 

Coding Accuracy Support System (CASS) and National Change of Address (NCOA) software. In the event the 

CASS and NCOA certification has expired, the contractor may be required to provide the certification prior to 

mailing. Reimbursement for this service will be made via contract modification. 

Contractor sponsored address data enhancements to secure postal discount MUST NOT negatively affect 

deliverability and/or omit/change any required address field as provided by CMS address files. It is the 

contractor’s responsibility to keep up to date on all USPS requirements. 

 
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All copies mailed must conform to the appropriate regulations in the U.S. Postal Service manuals for domestic 

presorted First-Class mail as applicable, and must be prepared for the most cost effective mailing rate/class 

obtainable presorting for maximum postal automation discounts (as applicable). The placement and application 

of the IMb barcodes must not compromise any applicable USPS addressing/imprinting requirements. 

In addition, USPS has instituted a verification procedure called a “tap” test. This test is used to screen all 

mailings with barcode inserts for proper barcode spacing within the envelope window. USPS will randomly 

select samples from a mailing and tap the pieces on their left right and bottom edges to test whether the barcode 

maintains a minimum spacing of 1/8 inch between the barcode and the left and right edges of the window, at least 

1/25 inch between the barcode and the bottom edge of the mail piece. Mailpieces are not to be tapped upside 

down (i.e. on their top edge). 

Intelligent Mail Barcode (IMb): The successful bidder must understand and be able to implement all mail 

preparation requirements enacted by the Postal Service related to using Intelligent Mail. The requirements 

include, but are not limited to preparing Intelligent Mail barcodes meeting USPS quality acceptance standards. 

Experience with assigning unique numbers for each mail piece, preparing electronic manifests, making electronic 

appointments, producing revised tray/pallet label formats and other similarly detailed IMb requirements as 

mandated by the Postal Service is essential. 

Any address/mail management related questions/issues should be directed to Tina Dickens, at (410) 786-3895, or 

E-mail tina.dickens@cms.hhs.gov or Cynthia Williams, at (410) 786-6071, or E-mail 

cynthia.williams@cms.hhs.gov at CMS respectively. 

Contractor may be responsible for any postage fees related to undeliverable letters caused by print quality control 

issues. 

VERIFICATION OF PRODUCTION AND MAILING 

Contractor will be responsible for validating the integrity of every notice produced in all phases of printing, 

inserting and mailing and to ensuring all notices received from CMS were correctly entered into the United States 

postal system. Contractor must furnish a state-by-state count of all letters mailed, identifying state and numbers 

of copies mailed to that state. Include information with copies to the e-mail addresses provided after award. 

DISTRIBUTION 

Mail f.o.b. contractor’s city using contractor printed “First Class Postage and Fees Paid Permit” imprint. The 

contractor will be required to provide mailing under the provided CMS “G-28” permit imprint via pre-sorted 

“First Class Mail, U.S. Postage Paid”. 

All expenses incidental to picking up and returning materials, proofs, etc. must be borne by the contractor. 

The contractor is cautioned that “Postage and Fees Paid” indicia may be used only for the purpose of mailing 

material produced under the contract. All copies mailed must conform to the appropriate regulations in the U.S. 

Postal Service manuals for “Domestic Mail” as applicable. 

The contractor will be required to submit the properly completed GPO 712 and Postal Service form(s) (or 

equivalent) with the voucher for billing. 

CERTIFICATE OF CONFORMANCE 

Certificate of Conformance: When using Permit Imprint Mail the contractor must complete GPO Form 712 -

Certificate of Conformance (Rev. 10-15), and the appropriate mailing statement or statements supplied by USPS. 

A fillable GPO Form 712 Certificate of Conformance can be found at https://www.gpo.gov/how-to-workwithus/vendors/forms-and-standards. 

 
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MAILING STATEMENTS 

Contractor must complete and supply all copies of all USPS 3602’s and GPO 712’s to CMS within 1 work days 

of USPS certification. Copies can be e-mailed to Mark Rydberg, mark.rydberg@cms.hhs.gov and Tina Dickens, 

tina.dickens@cms.hhs.gov and Cynthia Williams, cynthia.williams@cms.hss.gov. Statements can also be mailed 

to HHS/CMS, ATTN: Mark Rydberg, SL 12-18, 7500 Security Blvd., Baltimore, MD 21244-1850. 

Prior to or in conjunction with presenting the mailing for acceptance, a MERLIN (Mail Evaluation Readability 

Lookup Instrument) mail diagnostics analysis must be completed by the Postal Service. Within 24 hours of 

acceptance, a copy of the “MERLIN” Summary Verification Reports listing the results must be emailed to Tina 

Dickens at tina.dickens@cms.hhs.gov. 

Contractor must confirm, via e-mail, receipt of files and verify quantities to be produced within 2 hours of receipt 

of notification of availability of electronic files. 

SCHEDULE 

Adherence to this schedule must be maintained. Contractor must not start production of any job prior to receipt of 

the individual print order (GPO Form 2511). 

During the course of this contract print orders will be issued prior to the placement of files in the TIBCO mail 

box. 

Contractor will be notified via e-mail when electronic files are available in TIBCO mailbox. E-mail notification 

will include the number of copies to be generated for each Notice on each print order. 

Contractor will have 2 hours to download and confirm receipt of files and verify the quantity to be produced. 

Confirmation to be sent to mark.rydberg@cms.hhs.gov and trackcolumbus@gpo.gov. 

In the event that multiple print orders are placed, CMS reserves the right to indicate which print order will be 

mailed first. 

No definite schedule can be predetermined. However, furnished files and copy will be available as follows: 

The schedule begins when furnished files have been successfully downloaded from the TIBCO site and 

conformation is provided to CMS. 

NOTICES A AND B 

The numbers under the column headed “WD After” represent the number of workdays allowed to complete that 

certain part of the schedule after completion of the preceding part. 

It is anticipated that files for the “Initial” mailing will be placed in the TIBCO on or about the last week of 

September or the first week of October each year. If there is a “Supplemental” mailing, files will be placed in 

TIBCO 1 to 2 months after the “Initial” mailing is completed. 

WD After 

 Contractor to submit proofs after file(s) are placed in TIBCO ............................................... 2 

 Proofs held by department ...................................................................................................... 3 

 Complete production and mailing .......................................................................................... 8 

Contractor must complete the mailing of Notices A and B prior to Notice C. 

 
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NOTICE C: 

The numbers under the column headed “WD After” represent the number of workdays allowed to complete that 

certain part of the schedule after completion of the preceding part. 

It is anticipated that files for the “Initial” mailing will be placed in the TIBCO on or about the last week of 

September or the first week of October each year. If there is a “Supplemental” mailing, files will be placed in 

TIBCO 1 to 2 months after the “Initial” mailing is completed. 

WD After 

 Contractor to submit proofs after file(s) are placed in TIBCO ............................................... 2 

 Proofs held by department ...................................................................................................... 3 

 Complete production and mailing .......................................................................................... 8 

Please note that the files for Notice C will be placed in the TIBCO at the same time each year as the files for 

Notices A and B. Contractor should submit proofs for approval of Notice C prior to mailing Notices A and B, but 

must not start mailing of Notice C until after Notices A and B have completed mailing. 

NOTICES D AND E: 

The numbers under the column headed “WD After” represent the number of workdays allowed to complete that 

certain part of the schedule after completion of the preceding part. 

Files for the “Initial” mailing will be placed in the TIBCO during the first week of December each year. If there 

is a “Supplemental” mailing, files will be placed in TIBCO 1 to 2 months after the “Initial” mailing is completed. 

WD After 

 Contractor to submit proofs after file(s) are placed in TIBCO ............................................... 2 

 Proofs held by department ...................................................................................................... 4 

 Complete production and mailing .......................................................................................... 8 

NOTICE F: 

The numbers under the column headed “WD After” represent the number of workdays allowed to complete that 

certain part of the schedule after completion of the preceding part. 

Files for the “Initial” mailing will be placed in the TIBCO during the month of December each year. If there is a 

“Supplemental” mailing, files will be placed in TIBCO 1 to 2 months after the “Initial” mailing is completed. 

WD After 

 Contractor to submit proofs after file(s) are placed in TIBCO ............................................... 2 

 Proofs held by department ...................................................................................................... 1 

 Complete production and mailing .......................................................................................... 7 

NOTICE G: 

The numbers under the column headed “WD After” represent the number of workdays allowed to complete that 

certain part of the schedule after completion of the preceding part. 

Files for the “Initial” mailing will be placed in the TIBCO during the month of February each year. If there is a 

“Supplemental” mailing, files will be placed in TIBCO 1 to 2 months after the “Initial” mailing is completed. 

 
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WD After 

 Contractor to submit proofs after file(s) are placed in TIBCO ............................................... 2 

 Proofs held by department ...................................................................................................... 1 

 Complete production and mailing .......................................................................................... 3 

When revised proofs are required by the Government due to Government errors or printer’s errors, the revised 

proofs must be submitted to the government in a timely manner as to not jeopardize the original mailing schedule.

The contractor must mail completed pieces on a flow basis as production runs are completed in accordance with 

permit requirement for mailing. 

The contactor shall e-mail a production report for each Notice on a daily basis. The production report is to be 

created in Excel 2013 or higher. The production report shall include the total quantity printed on the day of the 

report, the total quantity inserted on the day of the report, and the total quantity mailed on the day of the report. 

The production report is to be e-mailed on a daily basis to mark.rydberg@cms.hhs.gov and to 

trackcolumbus@gpo.gov. If reports are not received on a daily basis, the contractor may be subject to adverse 

action on the contract. 

The ship/deliver date indicated on the print is the date notice letters must be mailed. 

RECEIPT FOR DELIVERY 

Contractor must furnish their own receipts for delivery. These receipts must include the GPO jacket, program, 

and print order numbers, total quantity delivered, number of cartons, and quantity per carton, date delivery made, 

and signature of the Government agent accepting delivery. The original copy of this receipt must accompany the 

contractor’s voucher for payment. 

Unscheduled material such as shipping documents, receipts or instructions, delivery lists, labels, etc., will be 

furnished with the order or shortly thereafter. In the event such information is not received in due time, the 

contractor will not be relieved of any responsibility in meeting the shipping schedule because of failure to request 

such information. 

RETURN OF GOVERNMENT FURNISHED PROPERTY 

Deliver any furnished material within 2 Workdays to HHS/CMS; 7500 Security Blvd., SLL 11-27; Baltimore, 

MD 21244-1850; Attn: Mark Rydberg. All expenses incidental to returning material must be borne by the 

contractor. 

These materials must be packaged, properly labeled, and returned separate from the entire job. The contractor 

must be able to produce a separate signed receipt for these materials at any time during the contract.

All expenses incidental to pickup/return of materials/proofs, and furnishing sample copies must be borne by the 

contractor. 
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SECTION 3. – DETERMINATION OF AWARD 

The Government will determine the lowest bid by applying the prices offered in the “Schedule of Prices” to 

the following units of production which are the estimated requirements to produce 1 year’s orders under this 

contract. These units do not constitute, nor are they to be construed as, a guarantee of the volume of work 

which may be ordered for a like period of time. 

The following item designations correspond to those listed in the “Schedule of Prices”. 

 I. (a) 14,762 

 (b) 2,469 

 (c) 7,381 

 II. (a) 6,343 

 (b) 1,038 

 (c) 2,469 
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SECTION 4. – SCHEDULE OF PRICES 

Bids offered are f.o.b. contractor’s city by permit imprint. 

Prices must be submitted for the entire term of the contract and bids qualified for a lesser period will not be 

considered. 

Prices must include the cost of all required materials and operations for each item listed in accordance with these 

specifications. 

Bidder must make an entry in each of the spaces provided. Bids submitted with any obliteration, revision, or 

alteration of the order and manner of submitting bids, may be declared nonresponsive. 

An entry of NC (No Charge) shall be entered if bidder intends to furnish individual items at no charge to the 

Government. 

Bids submitted with NB (No Bid), NA (Not Applicable), or blank spaces for an item may be declared 

nonresponsive. 

The Contracting Officer reserves the right to reject any offer that contains prices for individual items of 

production (whether or not such items are included in the Determination of Award) that are inconsistent or 

unrealistic in regard to other prices in the same offer or to GPO prices for the same operation if such action would 

be in the best interest of the Government. 

All vouchers submitted to the GPO shall be based on the most economical method of production. 

Fractional parts of 1,000 will be prorated at the 1,000 rate. 

I. PRINTING/IMAGING, TRIMMING TO SIZE, ASSEMBLY, FOLDING, AND INSERTING: The 

prices offered must be all-inclusive in accordance with these specifications and shall include the cost of all 

required materials and operations for complete production except for Items II. Stock/Paper 

 (a) Printing/Imaging each image (static or variable data) ............... per 1,000 images ......... $__________ 

 (b) Printing/Imaging each mailing envelope ................................... per 1,000 envelopes .... $__________ 

 (c) Collate leaves, fold as required, and insert into envelope ......... per 1,000 leaves .......... $__________ 

II. STOCK/PAPER: Payment for all stock/paper supplied by the contractor under the terms of these 

specifications, as ordered on the individual print orders, will be based on the net number of leaves furnished for 

the product(s). The cost of any paper required for make-ready or running spoilage must be included in the prices 

offered. 

 (a) Colored Writing (20 lbs.) or Colored Offset (50 lbs.) ............... per 1,000 leaves .......... $__________ 

 (b) White Writing (20 lbs.) or White Offset (50 lbs.) ..................... per 1,000 leaves .......... $__________ 

 (c) White Writing/Wove Mailing Envelope (20 or 24 lbs.) ............ per 1,000 envelopes .... $__________ 

____________ 

(Initials) 

RETURN THIS PAGE TO GPO RO, COLUMBUS, OH 
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SCHEDULE OF PRICES 

SHIPMENT(S): Shipments will be made from: City ________________________, State ____________ 

The city(ies) indicated above will be used for evaluation of transportation charges when shipment f.o.b. 

contractor’s city is specified. If no shipping point is indicated above, it will be deemed that the bidder has 

selected the city and state shown below in the address block, and the bid will be evaluated and the contract 

awarded on that basis. If shipment is not made from evaluation point, the contractor will be responsible for any 

additional shipping costs incurred. 

DISCOUNTS: Discounts are offered for payment as follows: __________ Percent, _________calendar days. 

See Article 12 “Discounts” of Solicitation Provisions in GPO Contract Terms (Publication 310.2). 

AMENDMENT(S): Bidder hereby acknowledges amendment(s) number(ed) _________________________ 

BID ACCEPTANCE PERIOD: In compliance with the above, the undersigned agree, if this bid is accepted 

within____________ calendar days (60 calendar days unless a different period is inserted by the bidder) from the 

date for receipt of bids, to furnish the specified items at the price set opposite each item, delivered at the 

designated points(s), in exact accordance with specifications. 

NOTE: Failure to provide a 60-day bid acceptance period may result in expiration of the bid prior to award. 

BIDDER’S NAME AND SIGNATURE: Unless specific written exception is taken, the bidder, by signing and 

submitting a bid, agrees with and accepts responsibility for all certifications and representations as required by the 

solicitation and GPO Contract Terms – Publication 310.2. When responding by fax or mail, fill out and return 

one copy of all pages in “SECTION 4. – SCHEDULE OF PRICES,” including initialing/signing where indicated. 

Failure to sign the signature block below may result in the bid being declared non-responsive. 

BIDDER: 

________________________________________________________________________________________ 

 (Contractor Name) (GPO Contractor’s Code) 

________________________________________________________________________________________ 

(Street Address) 

________________________________________________________________________________________ 

(City – State – Zip Code) 

By ______________________________________________________________________________________ 

 (Printed Name, Signature, and Title of Person Authorized to Sign this Bid) (Date) 

________________________________________________________________________________________ 

 (Person to be Contacted) (Telephone Number) (Email) 

LOCATION OF POST OFFICE: All mailing will be made from the Post Office located at: 

Street Address 

City State Zip 

Contracting Officer Review ____________ Date ___________ Certifier ______________ Date ____________ 

RETURN THIS PAGE TO GPO RO, COLUMBUS, OH 
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SECTION 5. – CMS SECURITY SPECIFICATIONS 

THE REQUIREMENTS UNDER THIS SECTION WILL BE ADMINISTERED BY A CMS SECURITY 

REPRESENTATIVE (NAME AND CONTACT INFORMATION WILL BE PROVIDED AT TIME OF 

AWARD). 

CMS INFORMATION SECURITY (APR 2013) 

FAR 52.227-14 Rights in Data – General (May 2014). 

As prescribed in 27.409(b) (1), insert the following clause with any appropriate alternates: 

(a) Definitions. As used in this clause-- 

“Computer database” or “database” means a collection of recorded information in a form capable of, and for 

the purpose of, being stored in, processed, and operated on by a computer. The term does not include 

computer software. 

“Computer software”— 

 (1) Means

 (i) Computer programs that comprise a series of instructions, rules, routines, or statements, regardless of 

the media in which recorded, that allow or cause a computer to perform a specific operation or series 

of operations; and 

 (ii) Recorded information comprising source code listings, design details, algorithms, processes, flow 

charts, formulas, and related material that would enable the computer program to be produced, 

created, or compiled. 

 (2) Does not include computer databases or computer software documentation. 

“Computer software documentation” means owner’s manuals, user’s manuals, installation instructions, 

operating instructions, and other similar items, regardless of storage medium, that explain the capabilities 

of the computer software or provide instructions for using the software. 

“Data” means recorded information, regardless of form or the media on which it may be recorded. The 

term includes technical data and computer software. The term does not include information incidental to 

contract administration, such as financial, administrative, cost or pricing, or management information. 

“Form, fit, and function data” means data relating to items, components, or processes that are sufficient to 

enable physical and functional interchangeability, and data identifying source, size, configuration, mating, 

and attachment characteristics, functional characteristics, and performance requirements. For computer 

software it means data identifying source, functional characteristics, and performance requirements but 

specifically excludes the source code, algorithms, processes, formulas, and flow charts of the software. 

“Limited rights” means the rights of the Government in limited rights data as set forth in the Limited 

Rights Notice of subparagraph (g) (2) if included in this clause. 

“Limited rights data” means data, other than computer software, that embody trade secrets or are 

commercial or financial and confidential or privileged, to the extent that such data pertain to items, 

components, or processes developed at private expense, including minor modifications. 

 
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“Restricted computer software” means computer software developed at private expense and that is a trade 

secret; is commercial or financial and is confidential or privileged; or is copyrighted computer software, 

including minor modifications of the computer software. 

“Restricted rights,” as used in this clause, means the rights of the Government in restricted computer 

software, as set forth in a Restricted Rights Notice of paragraph (g) if included in this clause, or as 

otherwise may be provided in a collateral agreement incorporated in and made part of this contract, 

including minor modifications of such computer software. 

“Technical data” means recorded information (regardless of the form or method of the recording) of a 

scientific or technical nature (including computer databases and computer software documentation). This 

term does not include computer software or financial, administrative, cost or pricing, or management data 

or other information incidental to contract administration. The term includes recorded information of a 

scientific or technical nature that is included in computer databases (See 41 U.S.C. 116). 

“Unlimited rights” means the right of the Government to use, disclose, reproduce, prepare derivative 

works, distribute copies to the public, and perform publicly and display publicly, in any manner and for 

any purpose, and to have or permit others to do so. 

(b) Allocation of rights. 

 (1) Except as provided in paragraph (c) of this clause, the Government shall have unlimited rights in— 

 (i) Data first produced in the performance of this contract; 

 (ii) Form, fit, and function data delivered under this contract; 

 (iii) Data delivered under this contract (except for restricted computer software) that constitute manuals or 

instructional and training material for installation, operation, or routine maintenance and repair of 

items, components, or processes delivered or furnished for use under this contract; and 

 (iv) All other data delivered under this contract unless provided otherwise for limited rights data or 

restricted computer software in accordance with paragraph (g) of this clause. 

 (2) The Contractor shall have the right to— 

 (i) Assert copyright in data first produced in the performance of this contract to the extent provided in 

paragraph (c) (1) of this clause; 

 (ii) Use, release to others, reproduce, distribute, or publish any data first produced or specifically used by 

the Contractor in the performance of this contract, unless provided otherwise in paragraph (d) of this 

clause; 

 (iii) Substantiate use of, add or correct limited rights, restricted rights, or copyright notices and to take 

other appropriate action, in accordance with paragraphs (e) and (f) of this clause; and 

 (iv) Protect from unauthorized disclosure and use those data that are limited rights data or restricted 

computer software to the extent provided in paragraph (g) of this clause. 

(c) Copyright— 

 (1) Data first produced in the performance of this contract. 

 
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 (i) Unless provided otherwise in paragraph (d) of this clause, the Contractor may establish, without prior 

approval of the Contracting Officer, claim to copyright in scientific and technical articles based on or 

containing data first produced in the performance of this contract and published in academic, 

technical or professional journals, symposia proceedings or similar works. The prior, express written 

permission of the Contracting Officer is required to assert copyright in all other data first produced in 

the performance of this contract. 

 (ii) When authorized to assert copyright to the data, the Contractor shall affix the applicable copyright 

notices of 17 U.S.C. 401 or 402, and acknowledgment of Government sponsorship (including 

contract number). 

 (iii) For data other than computer software, the Contractor grants to the Government, and others acting on 

its behalf, a paid-up, nonexclusive, irrevocable worldwide license in such copyrighted data to 

reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display 

publicly, by or on behalf of the Government. For computer software, the Contractor grants to the 

Government and others acting on its behalf, a paid-up nonexclusive, irrevocable worldwide license in 

such copyrighted computer software to reproduce, prepare derivative works, and perform publicly 

and display publicly (but not to distribute copies to the public) by or on behalf of the Government. 

 (2) Data not first produced in the performance of this contract. The Contractor shall not, without prior 

written permission of the Contracting Officer, incorporate in data delivered under this contract any data 

not first produced in the performance of this contract unless the Contractor— 

 (i) Identifies the data; and 

 (ii) Grants to the Government, or acquires on its behalf, a license of the same scope as set forth in 

subparagraph (c) (1) of this clause or; if such data are restricted computer software, the Government 

shall acquire a copyright license as set forth in subparagraph (g) (4) of this clause (if included in this 

contract) or as otherwise provided in a collateral agreement incorporated in or made part of this 

contract. 

 (3) Removal of copyright notices. The Government will not remove any authorized copyright notices placed 

on data pursuant to this paragraph (c), and will include such notices on all reproductions of the data. 

(d) Release, publication and use of data. The Contractor shall have the right to use, release to others, reproduce, 

distribute, or publish any data first produced or specifically used by the Contractor in the performance of this 

contract, except— 

 (1) As prohibited by Federal law or regulation (e.g., export control or national security laws or regulations); 

 (2) As expressly set forth in this contract; or 

 (3) If the Contractor receives or is given access to data necessary for the performance of this contract which 

contain restrictive markings, the Contractor shall treat the data in accordance with such markings unless 

otherwise specifically authorized otherwise in writing by the Contracting Officer. 

 
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(e) Unauthorized marking of data. 

 (1) Notwithstanding any other provisions of this contract concerning inspection or acceptance, if any data 

delivered under this contract are marked with the notices specified in paragraph (g) (3) or (g) (4) of this 

clause and use of the notices is not authorized by this clause, or if such data bears any other restrictive or 

limiting markings not authorized by this contract, the Contracting Officer may at any time either return 

the data to the Contractor, or cancel or ignore the markings. However, pursuant to 41 U.S.C. 4703, the 

following procedures shall apply prior to canceling or ignoring the markings. 

 (i) The Contracting Officer will make written inquiry to the Contractor affording the Contractor 60 days 

from receipt of the inquiry to provide written justification to substantiate the propriety of the 

markings; 

 (ii) If the Contractor fails to respond or fails to provide written justification to substantiate the propriety 

of the markings within the 60-day period (or a longer time approved in writing by the Contracting 

Officer for good cause shown), the Government shall have the right to cancel or ignore the markings 

at any time after said period and the data will no longer be made subject to any disclosure 

prohibitions. 

 (iii) If the Contractor provides written justification to substantiate the propriety of the markings within the 

period set in subdivision (e) (1) (i) of this clause, the Contracting Officer will consider such written 

justification and determine whether or not the markings are to be canceled or ignored. If the 

Contracting Officer determines that the markings are authorized, the Contractor will be so notified in 

writing. If the Contracting Officer determines, with concurrence of the head of the contracting 

activity, that the markings are not authorized, the Contracting Officer will furnish the Contractor a 

written determination, which determination shall become the final agency decision regarding the 

appropriateness of the markings unless the Contractor files suit in a court of competent jurisdiction 

within 90 days of receipt of the Contracting Officer’s decision. The Government shall continue to 

abide by the markings under this paragraph (e) (1) (iii) until final resolution of the matter either by the 

Contracting Officer’s determination becoming final (in which instance the Government will thereafter 

have the right to cancel or ignore the markings at any time and the data will no longer be made 

subject to any disclosure prohibitions), or by final disposition of the matter by court decision if suit is 

filed. 

 (2) The time limits in the procedures set forth in subparagraph (e) (1) of this clause may be modified in 

accordance with agency regulations implementing the Freedom of Information Act (5 U.S.C. 552) if 

necessary to respond to a request thereunder. 

 (3) Except to the extent the Government’s action occurs as the result of final disposition of the matter by a 

court of competent jurisdiction, the Contractor is not precluded by paragraph (e) of this clause from 

brining a claim, in accordance with the Disputes clause of this contract, that may arise as a result of the 

Government removing or ignoring authorized markings on data delivered under this contract. 

(f) Omitted or incorrect markings. 

 (1) Data delivered to the Government without any restrictive markings shall be deemed to have been 

furnished with unlimited rights. The Government is not liable for the disclosure, use, or reproduction of 

such data. 

 
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 (2) If the unmarked data has not been disclosed without restriction outside the Government, the Contractor 

may request, within 6 months (or a longer time approved by the Contracting Officer in writing for good 

cause shown) after delivery of such data, permission to have authorized notices placed on qualifying data 

at the Contractor’s expense, and the Contracting Officer may agree to do so if the Contractor— 

 (i) Identifies the data to which the omitted notice is to be applied; 

 (ii) Demonstrates that the omission of the notice was inadvertent; 

 (iii) Establishes that the use of the proposed notice is authorized; and 

 (iv) Acknowledges that the Government has no liability for the disclosure, use, or reproduction of any 

data made prior to the addition of the notice or resulting from the omission of the notice. 

 (3) If data has been marked with an incorrect notice, the Contracting Officer may— 

 (i) Permit correction of the notice at the Contractor’s expense if the Contractor identifies the data and 

demonstrates that the correct notice is authorized, or 

 (ii) Correct any incorrect notices. 

(g) Protection of limited rights data and restricted computer software.

 (1) The Contractor may withhold from delivery qualifying limited rights data or restricted computer software 

that are not data identified in paragraphs (b) (1) (i), (ii), and (iii) of this clause. As a condition to this 

withholding, the Contractor shall— 

 (i) Identify the data being withheld; and 

 (ii) Furnish form, fit, and function data instead. 

 (2) Limited rights data that are formatted as a computer database for delivery to the Government shall be 

treated as limited rights data and not restricted computer software. 

 (3) [Reserved] 

(h) Subcontracting. The Contractor shall obtain from its subcontractors all data and rights therein necessary to 

fulfill the Contractor’s obligations to the Government under this contract. If a subcontractor refuses to accept 

terms affording the Government such rights, the Contractor shall promptly notify the Contracting Officer of 

the refusal and shall not proceed with the subcontract award without authorization in writing from the 

Contracting Officer. 

(i) Relationship to patents or other rights. Nothing contained in this clause shall imply a license to the 

Government under any patent or be construed as affecting the scope of any license or other right otherwise 

granted to the Government. 

(end of clause) 

All CMS information shall be protected from unauthorized access, use, disclosure, duplication, modification, 

diversion, or destruction, whether accidental or intentional, in order to maintain the security, confidentiality, 

integrity, and availability of such information. Therefore, if this contract requires the contractor to provide 

services (both commercial and non-commercial) for Federal Information/Data, to include any of the following 

requirements: 

 
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Process any Information/Data; or 

Store any Information/Data (includes “Cloud” computing services); or 

Facilitate the transport of Information/Data; or 

Host/maintain Information/Data (including software and/or infrastructure developer/maintainers); or 

Have access to, or use of, Personally Identifiable Information (PII), including instances of remote access to, or 

physical removal of, such information beyond agency premises or control, 

The contractor shall become and remain compliant with the requirements set forth at the CMS Information 

Security website at https://www.cms.gov/Research-Statistics-Data-and-Systems/CMS-InformationTechnology/InformationSecurity/Info-Security-Library-Items/CMS-Information-Security-Contract-ClauseProvision.html. The requirements cover all CMS contracts and associated deliverables, which are required on a 

“per contractor” basis. 

The contractor shall ensure that the following Federal information security standards are met for all of its CMS 

contracts: 

Federal Information Security Management Act (FISMA) – FISMA information can be found at 

http://csrc.nist.gov/groups/SMA/fisma/index.html. FISMA requires each Federal agency to develop, document, 

and implement an agency-wide program to provide information security for the information and information 

systems that support the operations and assets of the agency, including those provided or managed by another 

agency, contractor, or other source; and, 

Federal Risk and Authorization Management Program (FedRAMP) – FedRAMP information can be found at 

http://www.gsa.gov/portal/category/102371. The FedRAMP is a government-wide program that provides a 

standardized approach to security assessment, authorization, and continuous monitoring for cloud products and 

services. 

The Contractor shall include in all awarded subcontracts the FISMA/FedRAMP compliance requirements set 

forth at the CMS Information Security website at https://www.cms.gov/Research-Statistics-Data-andSystems/CMS-Information-Technology/InformationSecurity/Info-Security-Library-Items/CMS-InformationSecurity-Contract-Clause-Provision.html. 
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HIPAA BUSINESS ASSOCIATE CLAUSE (OCT 2014) 

All Protected Health Information (PHI), as defined in 45 C.F.R. §160.103, that is relevant to this Contract, shall 

be administered in accordance with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA,” 

42 U.S.C. § 1320d), as amended, as well as the corresponding implementing regulations and this HIPAA Business 

Associate Clause.

a. Definitions: 

All terms used herein and not otherwise defined, shall have the same meaning as in HIPAA, as amended, 

and the corresponding implementing regulations. Non-HIPAA related provisions governing the 

Contractor’s duties and obligations, such as those under the Privacy Act and any applicable data use 

agreements, are generally covered elsewhere in the Contract. 

The following definitions apply to this Contract Clause: 

“Business Associate” shall mean the Contractor (and/or the Contractor’s subcontractors or agents) 

if/when it uses individually identifiable health information on behalf of CMS, i.e. PHI, to carry out CMS’ 

HIPAA-covered functions. 

“Covered Entity” shall mean the portions of CMS that are subject to the HIPAA Privacy Rule. 

“Secretary” shall mean the Secretary of the Department of Health & Human Services or the Secretary’s 

designee. 

b. Obligations and Activities of Business Associate: 

Except as otherwise provided in this Contract, Business Associate, as defined above, shall only use or 

disclose PHI on behalf of, or to provide services to, Covered Entity in accordance with this Contract and 

the HIPAA Privacy and Security Rules. 

Business Associate shall document in writing the policies and procedures that will be used to meet 

HIPAA requirements. The policies and procedures shall include the following, at a minimum: 

1. Business Associate shall not: 

i. Use or disclose PHI that is created, received, maintained or transmitted by Business Associate 

from, or on behalf of, Covered Entity other than as permitted or required by this Contract or as 

required by law; 

ii. Sell PHI; or, 

iii. Threaten, intimidate, coerce, harass, discriminate against, or take any other retaliatory action 

against any individual for: 

A. Filing a complaint under 45 CFR § 160.306; 

B. Testifying, assisting or participating in an investigation, compliance review, proceeding or 

hearing under 45 CFR Part 160; or 

C. Opposing any act or practice that is unlawful under HIPAA, provided there is a good faith 

belief that the practice is unlawful, the manner of opposition is reasonable, and the opposition 

does not involve the disclosure of PHI in violation of subpart E of Part 164. 

 
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2. Business Associate shall: 

i. Have a security official who will be responsible for development and implementation of its 

security policies and procedures, including workforce security measures, to ensure proper 

security awareness and training (including security incident response and reporting), and security 

incident procedures, in accordance with this Contract, including this HIPAA Business Associate 

Clause and the Contract’s clause entitled “CMS Information Security.” 

ii. Use administrative, physical and technical safeguards to prevent use or disclosure of PHI created, 

received, maintained or transmitted by Business Associate from, or on behalf of Covered Entity 

only as provided for by this Contract. In doing so, it shall implement policies and procedures to 

address the following and, where applicable, ensure that such policies and procedures are also in 

conformance with this Contract’s clause entitled “CMS Information Security:” 

A. Prevent, detect, contain and correct security violations through the use of: 

a. Risk analyses (including periodic technical and nontechnical evaluations); 

b. Appropriate risk management strategies, including system activity review; 

c. Information access procedures for approving individual’s access rights to PHI (including 

the implementation of workforce security measures to ensure continued appropriate rolebased access to PHI), and technical policies and procedures to ensure compliance with 

grants of access (including unique user identification and tracking of users) and; 

d. The imposition of sanctions for violations. 

B. Limit physical access to its electronic information systems and the facility or facilities in 

which they are housed. 

C. Implement policies, procedures and physical security measures that will limit access to PHI 

through workstations and other devices, including access through mobile devices. 

D. Implement media controls covering the movement of devices containing PHI within or 

outside of the Business Associate’s facility as well as the disposal and reuse of media 

containing PHI. 

E. Implement appropriate administrative, physical and technical safeguards that reasonably and 

appropriately protect the confidentiality, integrity and availability (including the use of 

contingency plans) of any electronic protected health information (“EPHI”) it creates, 

receives, maintains or transmits from, or on behalf of the Covered Entity to prevent 

impermissible use, disclosure, maintenance or transmission of such EPHI. In the 

establishment of such safeguards, Business Associate shall consider its size, complexity and 

capabilities, as well as its technical infrastructure, and its hardware and software security 

capabilities. 

iii. Assess, and implement, where appropriate, any addressable implementation specifications 

associated with applicable PHI security standards. 

iv. Mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a 

use or disclosure of PHI by Business Associate in violation of the requirements of this Contract. 

 
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v. Comply with the following Incident Reporting: 

A. Report to Covered Entity any security incident/breach involving unsecured PHI, of which it 

becomes aware, including those of its agents and subcontractors. The Business Associate 

shall report any violation of the terms of this contract involving PHI and any security 

incidents/breaches involving unsecured PHI to CMS within one (1) hour of discovery in 

accordance with the CMS Risk Management Handbook (RMH), specifically “RMH Vol II 

Procedure 7-2 Incident Handling Procedure” and “RMH Vol III Standard 7-1 Incident 

Handling.” These procedures can be found at http://www.cms.gov/Research-Statistics-Dataand-Systems/CMS-Information-Technology/InformationSecurity/Information-SecurityLibrary.html. In addition, the Business Associate will also notify the CMS Contracting 

Officer and the Contracting Officer’s Representative (COR) by email within one (1) hour of 

identifying such violation or incident. 

B. Upon Covered Entity's knowledge of any material security incident/breach by Business 

Associate, Covered Entity will provide an opportunity for Business Associate to cure the 

breach or end the violation consistent with the termination clause of this Contract. See also 

paragraph D. Term of Clause below. 

vi. Ensure that any agent or subcontractor agrees through a written contract, or other legally 

enforceable arrangement, to the same restrictions and conditions that apply through this HIPAA 

Contract Clause, when creating, receiving, maintaining or transmitting PHI from, or on behalf of, 

Covered Entity. 

vii. Upon Covered Entity’s request: 

A. Provide the Covered Entity or its designee with access to the PHI created, received, 

maintained or transmitted by Business Associate from or on behalf of the Covered Entity in 

the course of contract performance in order to ensure Covered Entity’s ability to meet the 

requirements under 45 CFR § 164.524. 

B. Amend PHI as Covered Entity directs or agrees to pursuant to 45 CFR §164.526. 

viii.Make its facilities and any books, records, accounts, and any sources of PHI, including any 

policies and procedures, that are pertinent to ascertaining its own compliance with this contract or 

the Covered Entity’s compliance with the applicable HIPAA requirements, available to Covered 

Entity, or, in the context of an investigation or compliance review, to the Secretary for purposes 

of the Secretary determining Covered Entity's compliance with the various rules implementing 

the HIPAA. 

ix. Document disclosures of PHI and information related to such disclosures as would be required for 

Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in 

accordance with 45 CFR § 164.528. 

x. Provide to Covered Entity, or an individual identified by the Covered Entity, information 

collected under this Contract, to permit Covered Entity to respond to a request by an Individual 

for an accounting of disclosures of PHI in accordance with 45 CFR § 164.528. 

xi. Make reasonable efforts to limit the PHI it uses, discloses or requests to the minimum necessary 

to accomplish the intended purpose of the permitted use, disclosure or request. 

 
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c. Obligations of Covered Entity 

Covered Entity shall notify Business Associate of any: 

1. Limitation(s) in its Notice of Privacy Practices in accordance with 45 CFR § 164.520, to the extent 

that such limitation may affect Business Associate's use or disclosure of PHI; 

2. Changes in, or revocation of, permission by an Individual to use or disclose their PHI, to the extent 

that such changes may affect Business Associate’s use or disclosure of PHI; and, 

3. Restriction to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 

CFR § 164.522, to the extent that such restriction may affect Business Associate’s use or disclosure 

of PHI. 

d. Term of Clause 

1. The term of this Clause shall be effective as of date of Contract award, and shall terminate when all of 

the PHI provided to Business Associate by the Covered Entity or a Business Associate of the Covered 

Entity, or created or received by Business Associate on behalf of Covered Entity, is destroyed or 

returned to Covered Entity in accordance with “CMS Information Security” procedures. Business 

Associate shall not retain any PHI. 

2. Security Incident/Breach: 

Upon Covered Entity’s knowledge of a material breach by Business Associate, Covered Entity shall 

take action consistent with the terms of this Contract, and, as appropriate, the following: 

i. Federal Acquisition Regulation (FAR) Contracts – Covered Entity may: 

A. Terminate this Contract in accordance with FAR Part 49, Termination of Contracts, if the 

Business Associate does not cure the security incident/breach within the time specified by 

Covered Entity and/or cure is not possible; or, 

B. If neither termination nor cure is feasible, Covered Entity shall report the violation to the 

Secretary. 

ii. Other Agreements –Covered Entity shall either: 

A. Provide an opportunity for Business Associate to cure the breach or end the violation 

consistent with the termination terms of this Contract. Covered Entity may terminate this 

Contract for default if the Business Associate does not cure the breach or end the violation 

within the time specified by Covered Entity; or, 

B. Consistent with the terms of this Contract, terminate this Contract for default if Business 

Associate has breached a material term of this Contract and cure is not possible; or, 

C. If neither termination nor cure is feasible, Covered Entity shall report the violation to the 

Secretary. 

3. Returning or Destroying PHI: 

Business Associate, as defined above, which includes subcontractors or agents of the Contractor, 

shall: 

 
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i. Upon expiration or termination of this Contract, for any reason, return or destroy all PHI received 

from Covered Entity or another Business Associate of the Covered Entity, as well as any PHI 

created, received, maintained or transmitted from or on behalf of Covered Entity, or another 

Business Associate of the Covered Entity, in accordance with this contract, including the “CMS 

Information Security” clause. 

ii. In the event that Business Associate determines that returning or destroying the PHI is infeasible, 

provide to Covered Entity notification of the conditions that make return or destruction infeasible. 

Upon such notice that return or destruction of PHI is infeasible, Business Associate shall extend 

the protections of this Contract to such PHI and limit further uses and disclosures of such PHI to 

those purposes that make the return or destruction infeasible, for so long as Business Associate 

maintains such PHI. 

e. Miscellaneous 

1. A reference in this Contract to a section in the Rules issued under HIPAA means the section as in 

effect or as amended. 

2. The respective rights and obligations of Business Associate under paragraph D.3.b of the section 

entitled “Term of Clause” shall survive the termination of this Contract. 

Any ambiguity in this Contract clause shall be resolved to permit Covered Entity to comply with the Rules 

implemented under HIPAA. 

 
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CMS SPECIFIC PROVISIONS FOR HIGH VISIBILITY/HIGH PUBLIC INTEREST CONTRACTS 

(OCT 2013) 

OPEN GOVERNMENT PROACTIVE PREDISCLOSURE NOTIFICATION (OCT 2013) 

In order to reduce the administrative burden of responding to Freedom of Information Act (FOIA) requests for 

high visibility/high public interest contracts throughout contract administration, the Contractor shall submit its 

review of the awarded contract (and contract modifications, if requested) for FOIA disclosure exemptions within 

thirty (30) calendar days of contract award. The review will substantiate “...Trade secrets and commercial or 

financial information obtained from a person and privileged or confidential...” information, in accordance with 5 

U.S.C. §552 FOIA, Exemption (b)(4), which could reasonably be expected to cause substantial competitive harm. 

Submissions: The Contractor shall submit one (1) Compact Disc (CD) or Digital Video Disc (DVD) with all 5 

U.S.C. §552 FOIA, Exemption (b)(4), “...Trade Secrets, Commercial or Financial Information Which is 

Privileged or Confidential...,” otherwise known as public release/non-Confidential Business Information (nonCBI), with the information identified as follows: 

a. CBI Highlighted Copy of Contract: One copy of the contract with all CBI highlighted for CMS FOIA 

review. 

b. Contractor Proposed Redacted Public Release Copy of Contract: An additional copy of the contract 

will be provided for public release with all the identified information redacted. Redactions shall be made 

using “black” boxes, which cannot be removed or uncovered by a reader. 

c. Pre-Disclosure Concerns - Comments/Rationale for Non-Disclosure of Trade Secrets, Commercial 

or Financial Information Which is Privileged or Confidential: The Contractor shall provide, in a 

separate file, rationale for why disclosure of “...Trade Secrets, Commercial or Financial Information 

Which is Privileged or Confidential...” would cause the Contractor organization substantial competitive 

harm if disclosed to other entities. Rationale shall be provided for each individual recommended 

redaction. Generalized conclusions of competitive harm are not a sufficient basis for the CMS FOIA 

office to invoke the exemption and thereby protect the Contractor’s interest. 

All CD/DVDs shall be mailed to the CMS FOIA Officer (address below) within thirty (30) calendar days of 

contract award and within thirty (30) calendar days of a CMS request, i.e. existing or modified contracts. All 

CD/DVD files shall be submitted as Portable Document Format (.pdf) files. 

CD/DVD and File Naming Conventions: The Contractor shall name the CD/DVD with the Contract Number 

and utilize the following CD/DVD file naming conventions: 

HHSM-500-2013-xxxxxx – Highlighted 

HHSM-500-2013-xxxxxx – Redacted 

HHSM-500-2013-xxxxxx – Pre-Disclosure Concerns 

CD/DVD shall be mailed to the CMS FOIA Officer at: 

Centers for Medicare & Medicaid Services 

Freedom of Information Act Office 

ATTN: CMS FOIA Officer 

Mailstop: N2-20-16 

7500 Security Boulevard 

Baltimore, MD 21244-1850 

 
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 Copy Correspondence Only (No CD/DVD): 

 Contracting Officer 

 Contracting Officer’s Representative (COR) 

It should be noted that the CMS FOIA Office makes the final determination as to what information is released to 

the public, after considering any feedback from OAGM and/or the Contractor. 

 
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CMS SECURITY CLAUSE 

FAR 52.204-9 Personal Identity Verification of Contractor Personnel. 

 As prescribed in 4.1303, insert the following clause: 

PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JAN 2011) 

 (a) The Contractor shall comply with agency personal identity verification procedures identified in the 

contract that implement Homeland Security Presidential Directive-12 (HSPD-12), Office of Management 

and Budget (OMB) guidance M-05-24 and Federal Information Processing Standards Publication (FIPS 

PUB) Number 201. 

 (b) The Contractor shall account for all forms of Government-provided identification issued to the Contractor 

employees in connection with performance under this contract. The Contractor shall return such 

identification to the issuing agency at the earliest of any of the following, unless otherwise determined by 

the Government: 

 (1) When no longer needed for contract performance. 

 (2) Upon completion of the Contractor employee’s employment. 

 (3) Upon contract completion or termination. 

 (c) The Contracting Officer may delay final payment under a contract if the Contractor fails to comply with 

these requirements. 

 (d) The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts 

when the subcontractor’s employees are required to have routine physical access to a Federally-controlled 

facility and/or routine access to a Federally-controlled information system. It shall be the responsibility 

of the prime Contractor to return such identification to the issuing agency in accordance with the terms set 

forth in paragraph (b) of this section, unless otherwise approved in writing by the Contracting Officer. 

(End of clause) 

FAR 52.222-54 Employment Eligibility Verification. 

 As prescribed in 22.1803, Insert the following clause: 

EMPLOYMENT ELIGIBILITY VERIFICATION (OCT 2015) 

(a) Definitions. As used in this clause— 

 “Commercially available off-the-shelf (COTS) item”— 

 (1) Means any item of supply that is— 

 (i) A commercial item (as defined in paragraph (1) of the definition at 2.101); 

 (ii) Sold in substantial quantities in the commercial marketplace; and 

 (iii) Offered to the Government, without modification, in the same form in which it is sold in the 

commercial marketplace; and 

 
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 (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102 (4), such as agricultural products and 

petroleum products. Per 46 CFR 525.1 (c) (2), “bulk cargo” means cargo that is loaded and carried in 

bulk onboard ship without mark or count, in a loose unpackaged form, having homogenous 

characteristics. Bulk cargo loaded into intermodal equipment, except LASH or Seabee barges, is 

subject to mark and count and, therefore, ceases to be bulk cargo. 

 “Employee assigned to the contract” means an employee who was hired after November 6, 1986 (after 

November 27, 2009 in the Commonwealth of the Northern Mariana Islands), who is directly performing 

work, in the United States, under a contract that is required to include the clause prescribed at 22.1803. 

An employee is not considered to be directly performing work under a contract if the employee— 

 (1) Normally performs support work, such as indirect or overhead functions; and 

 (2) Does not perform any substantial duties applicable to the contract. 

 “Subcontract” means any contract, as defined in 2.101, entered into by a subcontractor to furnish supplies 

or services for performance of a prime contract or a subcontract. It includes but is not limited to purchase 

orders, and changes and modifications to purchase orders. 

 “Subcontractor” means any supplier, distributor, vendor, or firm that furnishes supplies or services to or 

for a prime Contractor or another subcontractor. 

 “United States”, as defined in 8 U.S.C. 1101 (a) (38), means the 50 States, the District of Columbia, 

Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. 

 (b) Enrollment and verification requirements. 

 (1) If the Contractor is not enrolled as a Federal Contractor in E-Verify at time of contract award, the 

Contractor shall— 

 (i) Enroll. Enroll as a Federal Contractor in the E-Verify program within 30 calendar days of 

contract award; 

 (ii) Verify all new employees. Within 90 calendar days of enrollment in the E-Verify program, begin 

to use E-Verify to initiate verification of employment eligibility of all new hires of the 

Contractor, who are working in the United States, whether or not assigned to the contract, within 

3 business days after the date of hire (but see paragraph (b) (3) of this section); and 

 (iii) Verify employees assigned to the contract. For each employee assigned to the contract, initiate 

verification within 90 calendar days after date of enrollment or within 30 calendar days of the 

employee’s assignment to the contract, whichever date is later (but see paragraph (b) (4) of this 

section). 

 (2) If the Contractor is enrolled as a Federal Contractor in E-Verify at time of contract award, the 

Contractor shall use E-Verify to initiate verification of employment eligibility of— 

 (i) All new employees. 

 (A) Enrolled 90 calendar days or more. The Contractor shall initiate verification of all new hires 

of the Contractor, who are working in the United States, whether or not assigned to the 

contract, within 3 business days after the date of hire (but see paragraph (b) (3) of this 

section); or 

 
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 (B) Enrolled less than 90 calendar days. Within 90 calendar days after enrollment as a Federal 

Contractor in E-Verify, the Contractor shall initiate verification of all new hires of the 

Contractor, who are working in the United States, whether or not assigned to the contract, 

within 3 business days after the date of hire (but see paragraph (b) (3) of this section); or 

 (ii) Employees assigned to the contract. For each employee assigned to the contract, the Contractor 

shall initiate verification within 90 calendar days after date of contract award or within 30 days 

after assignment to the contract, whichever date is later (but see paragraph (b) (4) of this section). 

 (3) If the Contractor is an institution of higher education (as defined at 20 U.S.C. 1001 (a)); a State or 

local government or the government of a Federally recognized Indian tribe; or a surety performing 

under a takeover agreement entered into with a Federal agency pursuant to a performance bond, the 

Contractor may choose to verify only employees assigned to the contract, whether existing employees 

or new hires. The Contractor shall follow the applicable verification requirements at (b) (1) or (b) (2) 

respectively, except that any requirement for verification of new employees applies only to new 

employees assigned to the contract. 

 (4) Option to verify employment eligibility of all employees. The Contractor may elect to verify all 

existing employees hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of 

the Northern Mariana Islands), rather than just those employees assigned to the contract. The 

Contractor shall initiate verification for each existing employee working in the United States who was 

hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of the Northern 

Mariana Islands), within 180 calendar days of— 

 (i) Enrollment in the E-Verify program; or 

 (ii) Notification to E-Verify Operations of the Contractor’s decision to exercise this option, using the 

contact information provided in the E-Verify program Memorandum of Understanding (MOU). 

 (5) The Contractor shall comply, for the period of performance of this contract, with the requirements of 

the E-Verify program MOU. 

 (i) The Department of Homeland Security (DHS) or the Social Security Administration (SSA) may 

terminate the Contractor’s MOU and deny access to the E-Verify system in accordance with the 

terms of the MOU. In such case, the Contractor will be referred to a suspension or debarment 

official. 

 (ii) During the period between termination of the MOU and a decision by the suspension or 

debarment official whether to suspend or debar, the Contractor is excused from its obligations 

under paragraph (b) of this clause. If the suspension or debarment official determines not to 

suspend or debar the Contractor, then the Contractor must reenroll in E-Verify. 

 (c) Web site. Information on registration for and use of the E-Verify program can be obtained via the 

Internet at the Department of Homeland Security Web site: http://www.dhs.gov/E-Verify. 

 (d) Individuals previously verified. The Contractor is not required by this clause to perform additional 

employment verification using E-Verify for any employee— 

 (1) Whose employment eligibility was previously verified by the Contractor through the E-Verify 

program; 

 
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 (2) Who has been granted and holds an active U.S. Government security clearance for access to 

confidential, secret, or top secret information in accordance with the National Industrial Security 

Program Operating Manual; or 

 (3) Who has undergone a completed background investigation and been issued credentials pursuant to 

Homeland Security Presidential Directive (HSPD)-12, Policy for a Common Identification Standard 

for Federal Employees and Contractors. 

 (e) Subcontracts. The Contractor shall include the requirements of this clause, including this paragraph (e) 

(appropriately modified for identification of the parties), in each subcontract that— 

 (1) Is for— 

 (i) Commercial or noncommercial services (except for commercial services that are part of the 

purchase of a COTS item (or an item that would be a COTS item, but for minor modifications), 

performed by the COTS provider, and are normally provided for that COTS item); or 

 (ii) Construction; 

 (2) Has a value of more than $3,500; and 

 (3) Includes work performed in the United States. 

(End of clause) 

CMS SECURITY CLAUSE (APR 2016) 

a. Applicability 

In accordance with OMB Memorandum M-05-24, Implementation of Homeland Security Presidential 

Directive 12 (HSPD-12): Policy for a Common Identification Standard for Federal Employees and 

Contractors, dated August 27, 2004, and Federal Information Processing Standard (FIPS) PUB Number 

201-2, Personal Identity Verification (PIV) of Federal Employees and Contractors, CMS must achieve 

appropriate security assurance for multiple applications by efficiently verifying the claimed identity of 

individuals seeking physical access to Federally controlled government facilities and/or logical access to 

federally controlled information systems. Contractors that require routine physical access to a CMS 

facility and/or routine access to a CMS federally controlled information system will be required to obtain 

a CMS issued PIV, PIV-I or Locally Based Physical Access card. FIPS PUB 201-2 specifies the 

architecture and technical requirements for a common identification standard for Federal employees and 

Contractors. 

When a PIV or PIV-I card is provided, it shall be used in conjunction with a compliant card reader and 

middleware for logical system access. The Contractor shall (1) Include FIPS 201-2 compliant, HSPD-12 

card readers with the purchase of servers, desktops, and laptops; and (2) comply with FAR 52.204-9, 

Personal Identity Verification of Contractor Personnel. 

b. Definitions 

“Agency Access” means access to CMS facilities, sensitive information, information systems or other 

CMS resources. 

 
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“Applicant” is a Contractor employee for whom the Contractor submits an application for a CMS 

identification card. 

“Contractor Employee” means prime Contractor and subcontractor employees who require agency access 

to perform work under a CMS contract. 

“Official station”— As defined by Federal Travel Regulations, an area defined by the agency that 

includes the location where the employee regularly performs his or her duties or an invitational traveler’s 

home or regular place of business. The area may be a mileage radius around a particular point, a 

geographic boundary, or any other definite domain, provided no part of the area is more than 50 miles 

from where the employee regularly performs his or her duties or from an invitational traveler’s home or 

regular place of business. If the employee’s work involves recurring travel or varies on a recurring basis, 

the location where the work activities of the employee’s position of record are based is considered the 

regular place of work. 

“Federal Identification Card” (or “ID card”) means a federal government issued or accepted identification 

card such as a Personal Identity Verification (PIV) card, Personal Identity Verification-Interoperable 

(PIV-I) card, or a Local-Based Physical Access Card issued by CMS, or a Local-Based Physical Access 

Card issued by another Federal agency and approved by CMS. “Issuing Office” means the CMS entity 

that issues identification cards to Contractor employees. 

“Locally Based Physical Access Card” means an access Card that is graphically personalized for visual 

identification, that does not contain an embedded computer chip, and is only used for physical access. 

“Local Security Servicing Organization” means the CMS entity that provides security services to the 

CMS organization sponsoring the contract, Division of Physical Security and Strategic Information 

(DPSSI). 

“Logical Access” means the ability for the Contractor to interact with CMS information systems, 

databases, digital infrastructure, or data via access control procedures such as identification, 

authentication, and authorization. 

“Personal Identity Verification (PIV) card,” as defined in FIPS PUB 201-2, is a physical artifact (e.g., 

identity card, “smart” card) issued to an individual that contains a PIV Card Application which stores 

identity credentials (e.g., photograph, cryptographic keys, digitized fingerprint representation) so that the 

claimed identity of the cardholder can be verified against the stored credentials by another person (human 

readable and verifiable) or an automated process (computer readable and verifiable). 

“Personal Identity Verification-Interoperable (PIV-I) card” similar to a PIV card, is a physical artifact 

(e.g., identity card, “smart” card) issued to an individual that contains a PIV Card Application which 

stores identity credentials (e.g., photograph, cryptographic keys, digitized fingerprint representation) so 

that the claimed identity of the cardholder can be verified against the stored credentials by another person 

(human readable and verifiable) or an automated process (computer readable and verifiable). PIV-I cards 

are issued by a non-federal government entity to non-federal government staff. PIV-I cards are issued in a 

manner that allows federal relying parties to trust the cards. The PIV-I cards uses the same standards of 

vetting and issuance developed by the U.S. government for its employees 

c. Screening of Contractor Employees 

i. Contractor Screening of Applicants 

 
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1. Contractor Responsibility: The Contractor shall pre-screen individuals designated for 

employment under any CMS contract by verifying minimum suitability requirements to ensure 

that only qualified candidates are considered for contract employment. At the discretion of the 

government, the government reserves the right to request and/or review Contractor employee 

vetting processes. The federal minimum suitability requirements can be found below in section 

(c) (2)—Suitability Requirements, and are also contained in 5 CFR 731.202. The Contractor 

shall exercise due diligence in pre-screening all employees prior to submission to CMS for 

agency access. 

2. Alien Status: The Contractor shall monitor an alien’s (foreign nationals) continued authorization 

for employment in the United States. If requested by the Agency, the Contractor shall provide 

documentation to the Contracting Officer (CO) or the Contracting Officer’s Representative 

(COR) that validates that the Employment Eligibility Verification (e-Verify) requirement has 

been met for each Contractor or sub-Contractor employee working on the contract in accordance 

with Federal Acquisition Regulation (FAR) 52.222-54 – Employment Eligibility Verification. 

3. Residency Requirement: All CMS Contractor applicants shall have lived in the United States at 

least three (3) out of the last five (5) years prior to submitting an application for a Federal ID 

Card. CMS will process background investigations for foreign nationals in accordance with 

Office of Personnel Management (OPM) guidance. Contractor employees who worked for the 

U.S. Government as an employee overseas in a Federal or military capacity; and/or been a 

dependent of a U.S. Federal or military employee serving overseas, must be able to provide stateside reference coverage. State-side coverage information is required to make a suitability or 

security determination. Examples of state-side coverage information include: the state-side 

address of the company headquarters where the applicant’s personnel file is located, the state-side 

address of the Professor in charge of the applicant’s “Study Abroad” program, the religious 

organization, charity, educational, or other non-profit organization records for the applicant’s 

overseas missions, and/or the state-side addresses of anyone who worked or studied with the 

applicant while overseas. 

4. Selective Service Registration: All males born after December 31, 1959, must meet the Federal 

Selective Service System requirements as established on www.sss.gov. 

ii. Identification Card Application Process 

ID Card Sponsor: The CMS Contracting Officer’s Representative (COR) will be the CMS ID card 

Sponsor and point of contact for the Contractor’s application for a CMS ID card. The COR will 

review and approve/deny the HHS ID Badge Request before the form is submitted to the CMS, 

Office of Support Services and Operations, (OSSO), Division of Personnel Security Services (DPS), 

for processing. If approved, an applicant may be issued either a Personal Identity Verification (PIV) 

or PIV- I card that meets the standards of HSPD-12 or a Local-Based Physical Access Card. 

Contractor Application Required Submissions: All applicants shall submit an HHS ID Badge 

Request form for issuance of a Federal ID Card. Unless otherwise directed by the ID Card Sponsor 

or DPS, applicants are required to electronically submit the request form via CMS’ Enterprise User 

Administration (EUA) Electronic Front-end Interface (EFI) system, which is located at 

https://eua.cms.gov/efi. To assist users with the application process, a user’s guide is located 

at:https://www.cms.gov/About-CMS/Contracting-WithCMS/ContractingGeneralInformation/Contracting-Policy-and-Resources.html.

The EUA users guide link should be used to obtain the most current instructional guidance. 

 
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PIV Training: Contractors who need PIV or PIV-I card shall complete HHS PIV Applicant 

Training, which is found at https://www.cms.gov/About-CMS/Contracting-WithCMS/ContractingGeneralInformation/Contracting-Policy-and-Resources.html. A copy of the 

completion certificate shall be included with the EFI application. 

CMS Applicant Evaluations: CMS will evaluate an applicant’s required access level. Once the 

review is complete and accepted for further processing, the applicant will be contacted by DPS to 

submit the below information, as applicable. 

1. e-QIP: Contractor employees will be required to submit information into e-QIP, a webbased automated system that is designed to facilitate the processing of standard investigative 

forms used when conducting background investigations for Federal security, suitability, 

fitness and credentialing purposes. 

2. Fingerprints: Instructions for obtaining fingerprints will be provided by CMS, OSSO, DPS. 

3. OF 306: Contractor employees may be required to complete the Optional Form (OF) 306, 

Declaration for Federal Employment which can be found at 

https://www.opm.gov/forms/pdf_fill/of0306.PDF.

4. Access to Restricted Area(s): The CMS COR will initiate all Federal ID card holders’ 

physical access requests via Physical Access Control System (PACS) Central at 

https://pam.cms.local. 

Suitability Requirements: CMS may decline to grant agency access to a Contractor employee 

including, but not limited to, any of the criteria cited below: 

1. Misconduct or negligence in employment; 

2. Criminal or dishonest conduct; 

3. Material, intentional false statement, or deception or fraud in examination or appointment; 

4. Refusal to furnish testimony as required by § 5.4 of 5 CFR 731.202; 

5. Alcohol abuse, without evidence of substantial rehabilitation, of a nature and duration that 

suggests that the applicant or appointee would be prevented from performing the duties of the 

position in question, or would constitute a direct threat to the property or safety of the 

applicant or appointee or others; 

6. Illegal use of narcotics, drugs, or other controlled substances without evidence of substantial 

rehabilitation; 

7. Knowing and willful engagement in acts or activities designed to overthrow the U.S. 

Government by force; and 

8. Any statutory or regulatory bar which prevents the lawful employment of the person involved 

in the position in question. 

 
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Badge Issuance: Upon approval of the badging application process and prior to starting work on the 

contract, applicants whose official station is located within 50 miles from CMS’ central office or one 

of its regional offices will be contacted to appear in person, at least two times (estimated at one hour 

for each visit), and shall provide two (2) original forms of identity source documents in order to 

generate the badge/ID. The identity source documents shall come from the list of acceptable 

documents included in FIPS 201-2, located at http://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.201-

2.pdf. At least one (1) document shall be a valid State or Federal government-issued picture ID. 

PIV-I mobile enrollment stations will be made available for applicants that have an official station 

more than 50 miles from CMS or any of its regional offices, and the employee will not need to travel 

to a CMS Office. The Contractor will be contacted by CMS for further instructions on the badging 

process in this scenario. 

d. CMS Position Designation Assessment 

CMS will assign a risk and sensitivity level designation analysis to the overall contract and/or to 

Contractor employee positions by category, group or individual. The risk and sensitivity level 

designations will be the basis for determining the level and type of personnel security investigations 

required for Contractor employees. At a minimum, the FBI National Criminal History Check (fingerprint 

check) must be favorably adjudicated. Additionally, the OPM e-QIP and other required forms must be 

accepted by DPS before a CMS identification card will be issued. 

e. Post Badging Training Requirements: 

Contractor employees that receive an HHS ID Badge are expected to complete the following online 

trainings each year, according to the timeframes indicated below, and annually thereafter. The below list 

is not all inclusive and the COR may indicate training that must be taken in addition to the below: 

i. Security and Insider Threat Awareness and Training (30 days after receiving badge): This 

course outlines the role of Contractors with regard to protecting information and ensuring the secure 

operation of CMS federally controlled information systems. Estimated time to complete is one hour. 

ii. Computer Based Training (CBT) (within 3 days of approved EUA account): This training offers 

several modules to familiarize contractor employees with features of CMS’ webinar service. 

Estimated time to complete is one hour. 

f. Background Investigation and Adjudication 

Upon contract award and receipt of an HHS ID Badge Request, CMS will initiate the Agency Access 

procedures, to include a background investigation. 

CMS may accept favorable background investigation adjudications from other Federal agencies when 

there has been no break in service. A favorable adjudication does not preclude CMS from initiating a 

new investigation when deemed necessary. Each CMS sponsored Contractor shall use the OPM e-QIP 

system to complete any required investigative forms. 

The Contractor remains fully responsible for ensuring contract performance pending completion of 

background investigations of Contractor personnel. Employees that do not require access to CMS 

federally controlled information systems, facilities, or sensitive information in order to perform their 

duties may begin work on a contract immediately and need not submit an HHS ID Badge Request. 

i. Failure to cooperate with OPM or Agency representatives during the background investigation 

process is considered grounds for removal from the contract. 

 
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3573-S (07/19) 

ii. DPS may provide written notification to the Contractor employee, with a copy to the COR, of all 

suitability/non-suitability decisions. A CMS adjudicative decision (based on criminal history results 

or completed investigation results) is final, and is not subject to appeal. 

iii. Contractor personnel for whom DPS determines to be ineligible for ID issuance will be required to 

cease working on the contract immediately. 

iv. The Contractor shall immediately submit an adverse information report, in writing to the CO with a 

copy to the COR, of any adverse information regarding any of its employees that may impact their 

ability to perform under this contract. Reports should be based on reliable and substantiated 

information, not on rumor or innuendo. The report shall include, at a minimum, the Contractor 

employee’s name and associated contract number along with the adverse information. The COR will 

forward the adverse information report to the DPS for review and/or action. 

v. At the Agency’s discretion, Contractor personnel may be provided an opportunity to explain or refute 

unfavorable information before an adjudicative decision is rendered on whether or not to withdraw 

the Federal ID from the individual in question. Under the provision of the Privacy Act of 1974, 

Contractor personnel may request a copy of their own investigation by submitting a written request to 

the OPM Federal Investigative Services (FIS) Freedom of Information (FOI) office. The following 

OPM-FOI link is being provided to afford one the instructions for obtaining a copy of one’s file: 

https://www.opm.gov/investigations/freedom-of-information-and-privacy-act-requests/. 

g. Background Investigation Cost 

The government will bear the cost of background investigations that are performed at the direction of 

CMS’ personnel security representatives by the Federal government’s approved and designated 

background investigation service provider, the OPM. 

At the Agency’s discretion, if an investigated Contractor employee leaves the employment of the 

Contractor, or otherwise is no longer associated with the contract within one (1) year from the date the 

background investigation was completed, the Contractor may be required to reimburse CMS for the full 

cost of the investigation. Depending upon the type of background investigation conducted and the cost 

incurred by CMS, the Contractor cost will be determined based upon the current OPM fiscal year billing 

rates, which can be found at http://www.opm.gov/investigations/background-investigations/federalinvestigations-notices. The amount to be paid by the Contractor shall be due and payable when the CO 

submits a written letter notifying the Contractor as to the cost of the investigation. The Contractor shall 

pay the amount due within thirty (30) days of the date of the CO’s letter by check, made payable to the 

“United States Treasury.” The Contractor shall provide a copy of the CO’s letter as an attachment to the 

check and submit both to the Office of Financial Management at the following address: 

 Centers for Medicare & Medicaid Services 

 PO Box 7520 

 Baltimore, Maryland 21207 

h. Identification Card Custody and Control 

The Contractor is responsible for the custody and control of all forms of Federal identification issued by 

CMS to Contractor employees. The Contractor shall immediately notify the COR when a Contractor 

employee no longer requires agency access due to transfer, completion of a project, retirement, removal 

from work on the contract, or termination of employment. Return all CMS Federal ID cards to: 

 
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3573-S (07/19) 

 The Centers for Medicare and Medicaid Services 

 Attn: DPS, Mailstop: SL-17-06 

 7500 Security Boulevard 

 Baltimore, Maryland 21244 

The Contractor shall also ensure that Contractor employees comply with CMS requirements concerning 

the renewal, loss, theft, or damage of an ID card. 

Failure to comply with the requirements for custody and control of CMS issued ID cards may result in a 

delay in withholding final payment or contract termination, based on the potential for serious harm caused 

by inappropriate access to CMS facilities, sensitive information, information systems or other CMS 

resources. 

i. Renewal: A Contractor employee’s CMS issued ID card is valid for a maximum of five (5) years and 

9 months or until the contract expiration date (including option periods), whichever occurs first. The 

renewal process should begin six weeks before the ID card expiration date by contacting the COR. If 

an ID card is not renewed before it expires, the Contractor employee will be required to sign-in daily 

for facility access and may have limited access to information systems and other resources. 

Contractor ID card certificate(s) require yearly updates from the issuance date. The yearly updates 

should be coordinated between the contractor and the COR. 

ii. Lost/Stolen: Immediately upon detection that an ID card is lost or stolen, the Contractor or Contractor 

employee shall report a lost or stolen ID card to the COR and the local security servicing organization 

at SECURITY@cms.hhs.gov. The Contractor shall also submit an Incident Report within 48 hours, 

to the COR, DPS at Badging@cms.hhs.gov, and the local security servicing organization. The 

Incident Report shall describe the circumstances of the loss or theft. If the loss or theft is reported by 

the Contractor to the local police, a copy of the police report shall be provided to the COR. The 

Contractor employee shall sign in daily for facility access and may have limited access to information 

systems and other resources until the replacement card is issued. 

iii. Replacement: An ID card will be replaced if it is damaged, contains incorrect data, or is lost or stolen 

for more than three (3) days, provided there is a continuing need for agency access to perform work 

under the contract. 

In the event that the PIV card or certificate(s) are not renewed in a timely fashion, or the ID card requires 

replacement due to being lost, stolen, or damaged, the contractor employee will go through the “Badge 

Issuance” process again as described in above in section (c) (2). In any of these events, contact your COR 

to coordinate the appropriate next steps. 

i. Surrender ID Cards/Access Cards, Government Equipment 

CMS reserves the right to suspend or withdraw ID card access at any time for any reason. Access will be 

restored upon the resolution of the issue(s). 

Upon notification that routine access to CMS facilities, sensitive information, federally controlled 

information systems or other CMS resources is no longer required, the Contractor shall surrender the 

CMS issued ID card, access card, keys, computer equipment, and other government property to the CMS 

COR or directly to CMS at the address referenced above in section (f). DPS Contractor personnel who do 

not return their government issued property within 48 hours of the last day of authorized access to CMS, 

may be permanently barred from CMS systems and facilities and may be subject to fines and penalties, as 

authorized by applicable Federal or State laws.