[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Rules and Regulations]
[Pages 25772-25773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12321]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency

32 CFR Part 323

[Defense Logistics Agency Reg. 5400.21]


Privacy Act; Implementation

AGENCY: Defense Logistics Agency, DoD.
ACTION: Final rule.

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SUMMARY: The Defense Logistics Agency is exempting a system of records 
identified as S500.60 CA, entitled `DLA Complaint Program Records' from 
certain provisions of the Privacy Act. The exemptions are intended to 
increase the value of the system of records for law enforcement 
purposes, to comply with prohibitions against the disclosure of certain 
kinds of information, and to protect the privacy of individuals 
identified in the system of records.
EFFECTIVE DATE: May 5, 1998.

ADDRESSES: Send comments to the Privacy Act Officer, Defense Logistics 
Agency, ATTN: CAAR, 8725 John J. Kingman Road, Suite 2533, Fort 
Belvoir, VA 22060-6221.

FOR FURTHER INFORMATION CONTACT: Ms. Susan Salus at (703) 767-6183.
SUPPLEMENTARY INFORMATION:
Executive Order 12866. It has been determined that this Privacy Act 
rule for the Department of Defense does not constitute `significant 
regulatory action'. Analysis of the rule indicates that it does not 
have an annual effect on the economy of $100 million or more; does not 
create a serious inconsistency or otherwise interfere with an action 
taken or planned by another agency; does not materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs 
or the rights and obligations of recipients thereof; does not raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in Executive Order 
12866.
Regulatory Flexibility Act. It has been determined that this Privacy 
Act rule for the Department of Defense does not have significant 
economic impact on a substantial number of small entities because it is 
concerned only with the administration of Privacy Act systems of 
records within the Department of Defense.
Paperwork Reduction Act. It has been determined that this Privacy Act 
rule for the Department of Defense imposes no information requirements 
beyond the Department of Defense and that the information collected 
within the Department of Defense is necessary and consistent with 5 
U.S.C. 552a, known as the Privacy Act, and 44 U.S.C. Chapter 35.
    This rule adds an exempt Privacy Act system of records to the DLA 
inventory of systems of records. DLA operates a complaint system 
whereby individuals may report instances of suspected fraud, waste, or 
abuse; mismanagement; contract deviations, noncompliance, or 
improprieties; administrative misconduct; or adverse treatment under 
the complaint program. Allegations are investigated and appropriate 
corrections are instituted. The exempt system reflects recognition that 
certain records in the system may be deemed to require protection from 
disclosure in order to protect confidential sources mentioned in the 
files and avoid compromising, impeding, or interfering with 
investigative and enforcement proceedings. The proposed rule was 
previously published on March 6, 1998, at 63 FR 11198. No comments were 
received, therefore, the Director is adopting the exemptions for the 
reasons provided.

List of subjects in 32 CFR part 323

    Privacy.
    Accordingly, 32 CFR part 323 is amended as follows:


Part 323 - Defense Logistics Agency Privacy Program.

    1. The authority citation for 32 CFR Part 323 continues to read as 
follows:
    Authority: Pub. L. 93-579, 88 Stat 1896 (5 U.S.C. 552a).
    2. Appendix H to Part 323 is to be amended by adding paragraph e. 
as follows:


 Appendix H to Part 323-DLA Exemption Rules.

* * * * *
    e.  ID: S500.60 CA (Specific exemption).
    1.  System name: DLA Complaint Program Records.
    2.  Exemption: (i) Investigatory material compiled for law 
enforcement purposes may be exempt pursuant to 5 U.S.C. 552a(k)(2). 
However, if an individual is denied any right, privilege, or benefit 
for which he would otherwise be entitled by Federal law or for which he 
would otherwise be eligible, as a result of the maintenance of the 
information, the individual will be provided access to the information 
except to the extent that disclosure would reveal the identity of a 
confidential source.
    (ii) Investigatory material compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for federal 
civilian employment, military service, federal contracts, or access to 
classified information may be exempt pursuant to 5 U.S.C. 552a(k)(5), 
but only to the extent that such material would reveal the identity of 
a confidential source.
    3.  Authority: 5 U.S.C. 552a(k)(2) and (k)(5), subsections (c)(3), 
(d)(1) through (d)(4), (e)(1), (e)(4)(G), (H), and (I), and (f).
    4.  Reasons: (i) From subsection (c)(3) because to grant access to 
an accounting of disclosures as required by the Privacy Act, including 
the date, nature, and purpose of each disclosure and the identity of 
the recipient, could alert the subject to the existence of the 
investigation or prosecutive interest by DLA or other agencies. This 
could seriously compromise case preparation by prematurely revealing 
its existence and nature; compromise or interfere with witnesses or 
make witnesses reluctant to cooperate; and lead to suppression, 
alteration, or destruction of evidence.
    (ii) From subsections (d)(1) through (d)(4), and (f) because 
providing access to records of a civil or administrative investigation 
and the right to contest the contents of those records and force 
changes to be made to the information contained therein would seriously 
interfere with and thwart the orderly and unbiased conduct of the 
investigation and impede case preparation. Providing access rights 
normally afforded under the Privacy Act would provide the subject with 
valuable information that would allow interference with or compromise 
of witnesses or render witnesses reluctant to cooperate; lead to 
suppression, alteration, or destruction of evidence;

[[Page 25773]]

enable individuals to conceal their wrongdoing or mislead the course of 
the investigation; and result in the secreting of or other disposition 
of assets that would make them difficult or impossible to reach in 
order to satisfy any Government claim growing out of the investigation 
or proceeding.
    (iii) From subsection (e)(1) because it is not always possible to 
detect the relevance or necessity of each piece of information in the 
early stages of an investigation. In some cases, it is only after the 
information is evaluated in light of other evidence that its relevance 
and necessity will be clear.
    (iv) From subsections (e)(4)(G) and (H) because this system of 
records is compiled for law enforcement purposes and is exempt from the 
access provisions of subsections (d) and (f).
    (v) From subsection (e)(4)(I) because to the extent that this 
provision is construed to require more detailed disclosure than the 
broad, generic information currently published in the system notice, an 
exemption from this provision is necessary to protect the 
confidentiality of sources of information and to protect privacy and 
physical safety of witnesses and informants. DLA will, nevertheless, 
continue to publish such a notice in broad generic terms as is its 
current practice.
    Dated: May 5, 1998.

L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense
[FR Doc. 98-12321 Filed 5-8-98; 8:45 am]
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