[Federal Register Volume 59, Number 144 (Thursday, July 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18420]


[Federal Register: July 28, 1994]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency

Privacy Act of 1974; New Computer Matching Program Between the 
Defense Finance and Accounting Service and the Defense Manpower 
Data Center of the Department of Defense.

AGENCY: Defense Manpower Data Center, Defense Logistics Agency, 
Department of Defense.
ACTION: Notice of a new computer matching program between the Defense 
Finance and Accounting Service (DFAS) and the Department of Defense 
(DoD) for public comment.

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SUMMARY: Subsection (e)(12) of the Privacy Act of 1974, as amended, (5 
U.S.C. 552a) requires agencies to publish advance notice of any 
proposed or revised computer matching program by the matching agency 
for public comment. The DoD, as the matching agency under the Privacy 
Act is hereby giving constructive notice in lieu of direct notice to 
the record subjects of a computer matching program between DFAS and DoD 
that their records are being matched by computer. The record subjects 
are DFAS delinquent debtors who may be current or former Federal 
employees receiving Federal salary or benefit payments and who are 
delinquent in their repayment of debts owed to the United States 
Government under programs administered by DFAS so as to permit DFAS to 
pursue and collect the debt by voluntary repayment or by administrative 
or salary offset procedures under the provisions of the Debt Collection 
Act of 1982.

DATES: This proposed action will become effective August 29, 1994, and 
the computer matching will proceed accordingly without further notice, 
unless comments are received which would result in a contrary 
determination or if the Office of Management and Budget or Congress 
objects thereto. Any public comment must be received before the 
effective date.

ADDRESSES: Any interested party may submit written comments to the 
Director, Defense Privacy Office, Crystal Mall 4, Room 920, 1941 
Jefferson Davis Highway, Arlington, VA 22202-4502.

FOR FURTHER INFORMATION CONTACT: Mr. Aurelio Nepa, Jr. at telephone 
(703) 607-2943.

SUPPLEMENTARY INFORMATION: Pursuant to subsection (o) of the Privacy 
Act of 1974, as amended, (5 U.S.C. 552a), the DMDC and DFAS have 
concluded an agreement to conduct a computer matching program between 
the agencies. The purpose of the match is to exchange personal data 
between the agencies for debt collection. The match will yield the 
identity and location of the debtors within the Federal government so 
that DFAS can pursue recoupment of the debt by voluntary payment or by 
administrative or salary offset procedures. Computer matching appeared 
to be the most efficient and effective manner to accomplish this task 
with the least amount of intrusion of personal privacy of the 
individuals concerned. It was therefore concluded and agreed upon that 
computer matching would be the best and least obtrusive manner and 
choice for accomplishing this requirement.
    A copy of the computer matching memorandum of understanding between 
DFAS and DMDC is available upon request to the public. Requests should 
be submitted to the address caption above or to the Defense Finance and 
Accounting Service, (DFAS-DE/FYSA), 6760 E. Irvington Place, Denver, CO 
80279-7000. Telephone (303) 655-0400.
    Set forth below is the notice of the establishment of a computer 
matching program required by paragraph 6.c. of the Office of Management 
and Budget Guidelines on computer matching published in the Federal 
Register at 54 FR 25818 on June 19, 1989.
    The matching memorandum of understanding, as required by 5 U.S.C. 
552a(r) of the Privacy Act, and an advance copy of this notice was 
submitted on July 15, 1994, to the Committee on Government Operations 
of the House of Representatives, the Committee on Governmental Affairs 
of the Senate, and the Administrator of the Office of Information and 
Regulatory Affairs, Office of Management and Budget pursuant to 
paragraph 4d of Appendix I to OMB Circular No. A-130, `Federal Agency 
Responsibilities for Maintaining Records about Individuals,' dated June 
25, 1993 (58 FR 36075, July 2, 1993). The matching program is subject 
to review by OMB and Congress and shall not become effective until that 
review period has elapsed.
    Dated: July 20, 1994.

Patricia L. Toppings,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

NOTICE OF A COMPUTER MATCHING PROGRAM BETWEEN THE DEFENSE FINANCE 
AND ACCOUNTING SERVICE AND THE DEPARTMENT OF DEFENSE FOR DEBT 
COLLECTION

    A. Participating agencies: Participants in this computer matching 
program are the Defense Finance and Accounting Service (DFAS) and the 
Defense Manpower Data Center (DMDC) of the Department of Defense (DoD). 
The DFAS is the source agency, i.e., the activity disclosing the 
records for the purpose of the match. The DMDC is the specific 
recipient activity or matching agency, i.e., the agency that actually 
performs the computer matching.

    B. Purpose of the match: Upon the execution of a memorandum of 
understanding (MOU), the DFAS will provide and disclose debtor records 
to DMDC to identify and locate any matched Federal personnel, employed 
or retired, who may owe delinquent debts to the Federal Government 
under certain programs administered by the DOD. The DFAS will use this 
information to initiate independent collection of those debts under the 
provisions of the Debt Collection Act of 1982 when voluntary payment is 
not forthcoming. These collection efforts will include requests by the 
DFAS of any employing Federal agency to apply administrative and/or 
salary offset procedures until such time as the obligation is paid in 
full.

    C. Authority for conducting the match: The legal authority for 
conducting the matching program is contained in the Debt Collection Act 
of 1982 (Public Law 97-365), 31 U.S.C. Chapter 37, Subchapter I 
(General) and Subchapter II (Claims of the United States Government), 
31 U.S.C. 3711 Collection and Compromise, 31 U.S.C. 3716 Administrative 
Offset, 5 U.S.C. 5514 Installment Deduction for Indebtedness (Salary 
Offset); 10 U.S.C. 136, Assistant Secretaries of Defense, Appointment 
Powers and Duties; Section 206 of Executive Order 11222; 4 CFR Chapter 
II, Federal Claims Collection Standards (General Accounting Office - 
Department of Justice); 5 CFR 550.1101 - 550.1108 Collection by Offset 
from Indebted Government Employees (OPM); DOD Instruction 7045.18 
Collection of Indebtedness Due the United States (32 CFR part 90); DOD 
Directive 7045.13, DOD Credit Management and Debt Collection Program.

    D. Records to be matched: The systems of records maintained by the 
respective agencies under the Privacy Act of 1974, as amended, 5 U.S.C. 
552a, from which records will be disclosed for the purpose of this 
computer match are as follows:
    The DFAS will use personal data from the following Privacy Act 
record systems for the match:
    Record system identified as Department of the Army system of 
records notice A0037-104-1bSAFM, entitled `Debt Management System', 
last published in the Federal Register on February 22, 1993, at 58 FR 
10046.
    Record system identified as Department of the Navy system of 
records notice N07430-1, entitled `Navy Debt Management and Collection 
System (MNCS)', last published in the Federal Register on February 22, 
1993, at 58 FR 10809.
    Record system identified as Department of the Air Force system of 
records notice F177 AF AFC A, entitled `Accounts Receivable Records 
Maintained by Accounting and Finance', last published in the Federal 
Register on February 22, 1993, at 58 FR 10476.
    Record system identified as United States Marine Corps system of 
records notice MFD00007, entitled 'Marine Corps Financial Records 
System', last published in the Federal Register February 22, 1993, at 
58 FR 10638.
    Record system identified as Washington Headquarters Services system 
of records notice DWHS B46, entitled `DOD Creditor Agency Accounts 
Receivable System' last published in the Federal Register on February 
22, 1993, at 58 FR 10281.
    DMDC will use personal data from the record systems identified as:
    S322.10 DMDC, entitled `Defense Manpower Data Center Data Base', 
last published in the Federal Register on February 22, 1993, at 58 FR 
10872.
    S322.11 DMDC, entitled `Federal Creditor Agency Debt Collection 
Data Base,' last published in the Federal Register on February 22, 
1993, at 58 FR 10875.
    Sections 5 and 10 of the Debt Collection Act authorize agencies to 
disclose information about debtors in order to effect salary or 
administrative offsets. Agencies must publish routine uses pursuant to 
subsection (b)(3) of the Privacy Act for those systems of records from 
which they intend to disclose this information. Sections 5 and 10 of 
the Debt Collection Act will comprise the necessary authority to meet 
the Privacy Act's `compatibility' condition. The systems of records 
described above contain an appropriate routine use disclosure between 
the agencies of the information proposed in the match. The routine use 
provisions are compatible with the purpose for which the information 
was collected.

    E. Description of computer matching program: The DFAS, as the 
source agency, will provide DMDC with a magnetic tape which contains 
the names of delinquent debtors in programs the DOD administers. Upon 
receipt of the computer tape file of debtor accounts, DMDC will perform 
a computer match using all nine digits of the SSN of the DFAS file 
against a DMDC computer database. The DMDC database, established under 
an interagency agreement between DOD, OPM, OMB, and the Department of 
the Treasury, consists of employment records of Federal employees and 
military members, active, and retired. Matching records (`hits'), based 
on the SSN, will produce the member's name, service or agency, category 
of employee, and current work or home address. The hits or matches will 
be furnished to the DFAS. The DFAS is responsible for verifying and 
determining that the data on the DMDC reply tape file are consistent 
with the DFAS source file and for resolving any discrepancies or 
inconsistencies on an individual basis. The DFAS will also be 
responsible for making final determinations as to positive 
identification, amount of indebtedness and recovery efforts as a result 
of the match.
    The magnetic computer tape provided by DFAS will contain data 
elements of the debtor's name, SSN, debtor status and debt balance, 
internal account numbers and the total amount owed on approximately 
100,000 delinquent debtors.
    The DMDC computer database file contains approximately 11 million 
records of active duty and retired military members, including the 
Reserve and Guard, and the OPM government wide Federal civilian records 
of current and retired Federal employees.
    DMDC will match the SSN on the DFAS tape by computer against the 
DMDC database. Matching records, hits based on SSN, will produce data 
elements of the member's name, SSN, service or agency, and current work 
or home address.

    F. Inclusive dates of the matching program: This computer matching 
program is subject to review by the Office of Management and Budget and 
Congress. If no objections are raised by either, and the mandatory 30 
day public notice period for comment has expired for this Federal 
Register notice with no significant adverse public comments in receipt 
resulting in a contrary determination, then this computer matching 
program becomes effective and the respective agencies may begin the 
exchange of data 30 days after the date of this published notice at a 
mutually agreeable time and will be repeated annually. Under no 
circumstances shall the matching program be implemented before the 30 
day public notice period for comment has elapsed as this time period 
cannot be waived. By agreement between DFAS and DMDC, the matching 
program will be in effect and continue for 18 months with an option to 
renew for 12 additional months unless one of the parties to the 
agreement advises the other by written request to terminate or modify 
the agreement.

    G. Address for receipt of public comments or inquiries: Director, 
Defense Privacy Office, Crystal Mall 4, Room 920, 1941 Jefferson Davis 
Highway, Arlington, VA 22202-4502. Telephone (703) 607-2943.

[FR Doc. 94-18420 Filed 7-27-94; 8:45 am]
BILLING CODE 5000-04-F