[Federal Register Volume 62, Number 205 (Thursday, October 23, 1997)]
[Notices]
[Pages 55222-55224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27643]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency


Privacy Act of 1974; Notice of a Computer Matching Program 
Between 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

[[Page 55223]]

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 November 24, 1997 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 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 Borrower 
and Lending Service, Small Business Administration, 409 Third Street, 
SW, Suite 8300, Washington, DC 20416. Telephone 202-205-6481.
    Set forth below is a public notice of the establishment of the 
computer matching program required by paragraph (e)(12) of the Privacy 
Act.
    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 
October 7, 1997 to the Committee on Government Reform and Oversight 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 
Febaruary 8, 1996 (61 FR 6435, February 20, 1996). The matching program 
is subject to review by OMB and Congress and shall not become effective 
until that review period of 40 days has elapsed.
    Dated: October 14, 1997

L. M. Bynum,
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 this agreement, SBA 
will provide and disclose debtor records to DMDC to identify and locate 
any matched Federal personnel, employed or retired, who owe delinquent 
debts to the Federal Government under certain programs administered by 
SBA. 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 the employing 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), as amended by the Debt Collection Improvement 
Act of 1996 (Pub. L. 104-134, section 31001); 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, as amended, Installment Deduction 
for Indebtedness (Salary Offset); 10 U.S.C. 136, as amended, Under 
Secretary of Defense for Personnel and Readiness; 10 U.S.C. 138, as 
amended, Assistant Secretaries of Defense; section 101(l) of Executive 
Order 12731; 4 CFR Ch. 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); [Note: 
Insert Agency's CFR citation implementing 5 U.S.C. 5514(b)(1).]

    D.  Records to be matched: The systems of records described below 
ontain 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.
    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 at 61 FR 32779, June 25, 
1996.
    Sections 5 and 10 of the Debt Collection Act of 1982 (Public Law 
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

[[Page 55224]]

Debt Collection Act will comprise the necessary authority to meet the 
Privacy Act's 'compatibility' condition.

    E.  Description of Computer Matching Program: SBA, as the source 
agency, will provide DMDC with an electronic file which contains the 
names of delinquent debtors in programs SBA 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 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 non-postal 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 SBA. SBA is responsible for 
verifying and determining that the data on the DMDC reply tape file are 
consistent with SBA's source file and for resolving any discrepancies 
or inconsistencies on an individual basis. 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 electronic file tape provided by SBA will contain data elements 
of the debtor's name, SSN, internal account numbers and the total 
amount owed for eah debtor 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 non-postal 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 of public coments 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. 97-27643 Filed 10-22-97; 8:45 am]
BILLING CODE 5000-04-F