[Federal Register Volume 60, Number 13 (Friday, January 20, 1995)]
[Notices]
[Pages 4153-4154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1372]



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DEPARTMENT OF DEFENSE
Defense Logistics Agency


Privacy Act of 1974; Computer Matching ProgramBetween the Small 
Business Administration 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 computer matching program between the Small 
Business Administration (SBA) 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 SBA and DoD 
that their records are being matched by computer. The record subjects 
are SBA 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 SBA so as to permit SBA 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 February 21, 1995, 
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 22202094502.

FOR FURTHER INFORMATION CONTACT: Mr. Aurelio Nepa, Jr. at telephone 
(703) 607092943.

SUPPLEMENTARY INFORMATION: Pursuant to subsection (o) of the Privacy 
Act of 1974, as amended, (5 U.S.C. 552a), the DMDC and SBA 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 SBA 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 agreement between SBA and DMDC is 
available upon request to the public. Requests should be submitted to 
the address caption above or to the Deputy Director, Office of 
Portfolio Management, Small Business Administration, 409 Third Street, 
SW, Suite 8300, Washington, DC 20416. Telephone (202) 205096481.
    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 agreement, as required by 5 U.S.C. 552a(r) of the 
Privacy Act, and an advance copy of this notice was submitted on 
January 9, 1995, 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. A09130, `Federal Agency 
Responsibilities for Maintaining Records about Individuals,' dated July 
15, 1994 (59 FR 37906, July 25, 1994). The matching program is subject 
to review by OMB and Congress and shall not become effective until that 
review period has elapsed.
    Dated: January 13, 1995

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

Notice of a Computer Matching Program between the Small Business 
Administration and the Department of Defense for Debt Collection

    A. Participating Agencies: Participants in this computer matching 
program are the Small Business Administration (SBA) and the Defense 
Manpower Data Center (DMDC) of the Department of Defense (DoD). The SBA 
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 an agreement, the 
SBA 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 SBA 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 SBA 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 (Pub. L. 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. [[Page 4154]] 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); 13 CFR part 140, Debt 
Collection (SBA).

    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 SBA will use personal data from the Privacy Act record system 
identified as SBA 075, entitled, `Loan Case File', last published in 
the Federal Register at 56 FR 8022 on February 26, 1991.
    DMDC will use personal data from the record systems identified as 
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 (Pub.L. 97-365) 
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 SBA, as the source 
agency, will provide DMDC with a magnetic computer tape which contains 
the names of delinquent debtors in programs the SBA administers. Upon 
receipt of the magnetic computer tape file of debtor accounts, DMDC 
will perform a computer match using all nine digits of the SSN of the 
SBA 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 SBA. The SBA is 
responsible for verifying and determining that the data on the DMDC 
reply tape file are consistent with the SBA source file and for 
resolving any discrepancies or inconsistencies on an individual basis. 
The SBA 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 SBA will contain data 
elements of the debtor's name, Social Security Number, debtor status 
and debt balance, internal account numbers and the total amount owed on 
approximately 10,000 delinquent debtors.
    The DMDC computer database file contains approximately 10 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.

    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 SBA 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 ofpublic comments or inquiries: Director, 
Defense Privacy Office, Crystal Mall 4, Room 920, 1941 Jefferson Davis 
Highway, Arlington, VA 22202094502. Telephone (703) 607092943.

[FR Doc. 95-1372 Filed 1-19-95; 8:45 am]
BILLING CODE 5000-04-F