[Federal Register Volume 67, Number 32 (Friday, February 15, 2002)]
[Notices]
[Pages 7143-7144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3703]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency


Privacy Act of 1974; Computer Matching Program

AGENCY: Department of Defense.

ACTION: Notice of a Computer Matching Program.

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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 advanced notices of any 
proposed or revised computer matching program by the matching agency 
for public comment. The Department of Defense (DoD), as the matching 
agency under the Privacy Act, is hereby giving notice to the record 
subjects of a computer matching program between Department of Education 
(ED) and DoD that their records are being matched by computer. This 
computer matching agreement supersedes all existing data exchange 
agreements or memoranda of understanding between the ED and the DoD 
applicable to the exchange of personal data for debt collection 
purposes pertaining to debtors who are delinquent in their debts to the 
United States Government under certain programs administered by the 
Department of Education.

DATES: This proposed action will become effective March 18, 2002 and 
matching may commence unless changes to the matching program are 
required due to public comments or by Congressional or by Office of 
Management and Budget objections. Any public comment must be received 
before the effective date.

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

FOR FURTHER INFORMATION CONTACT: Mr. Vahan Moushegian, Jr. at (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 ED have 
concluded an agreement to conduct a computer matching program between 
agencies. The purpose of the computer matching program is to attempt to 
identify and locate debtors who are current or former Federal personnel 
receiving any Federal salary or benefit payments and are indebted or 
delinquent in their payment of debts to the United States Government 
under certain programs administered by ED.
    The parties to this agreement have determined that a computer 
matching program is the most efficient, expeditious, and effective 
means of obtaining and processing the information needed by the ED to 
identify and initiate collection efforts against individual debtors via 
the salary and/or administrative offset method. The principal 
alternative to using a computer matching program for identifying such 
individuals would be to conduct a manual comparison of all Federal 
personnel records with lists of debtors delinquent in payments held by 
ED. Conducting a manual match, however, would clearly impose a 
considerable administrative burden, constitute a more intrusive 
invasion of the individual's personal privacy, and would result in 
additional delay in the eventual recovery of the outstanding debts. 
Using the computer matching program, information on successful matches 
(hits) can be provided to ED within 30 days of receipt of an electronic 
file of delinquent debtors records from ED. The Debt Collection 
Improvement Act of 1996 mandates that Federal agencies conduct annual 
computer matches to identify Federal employees who are indebted to a 
creditor agency for purposes of salary offset.
    A copy of the computer matching agreement between ED and DoD is 
available upon request. Requests should be submitted to the address 
caption above or to the Department of Education, Students Channel/
Collections, 830 First Street, NE., Room 41B3, Mail Stop 5320, 
Washington, DC 20202-5320.
    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 on June 19, 1989, 
at 54 FR 25818.
    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 
February 4, 2002, to the House Committee on Government Reform, the 
Senate Committee on Governmental Affairs, 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 February 8, 1996 (February 20, 1996, 61 FR 6427).

    Dated: February 8, 2002.
L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

Notice of a Computer Matching Program Between the Defense Manpower 
Data Center, the Department of Defense, and the Department of 
Education for Debt Collection

    A. Participating Agencies: Participants in this computer matching 
program are the Defense Manpower Data Center (DMDC), the Department of 
Defense (DOD), and the Department of Education (ED). The ED 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: The purpose of this agreement identify and 
locate any matched Federal personnel, employed, serving, or retired, 
who owe delinquent debts to the Federal Government under certain 
programs administered by ED. ED will use this information to initiate 
independent collection of those debts under the provisions of the Debt 
Collection Act of 1982, as amended, when voluntary payment is not 
forthcoming. These collection efforts will include requests by ED of 
the military service/employing agency in the case of military personnel 
(either active, reserve, or retired) and current non-postal civilian 
employees, and to OPM in the case of retired non-postal civilian 
employees, to apply administrative and/or salary offset

[[Page 7144]]

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), as amended by the Debt Collection 
Improvement Act of 1996 (Public Law 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, Installment 
Deduction for Indebtedness (Salary Offset); 10 U.S.C. 135, Under 
Secretary of Defense (Comptroller); Section 101(l) of Executive Order 
12731; 31 CFR chapter IX, Federal Claims Collection Standards; 5 CFR 
550.1101--550.1108, Collection by Offset from Indebted Government 
Employees (OPM); 34 CFR part 31, Salary Offset Standards for Federal 
Employees Indebted to the United States under Programs Administered by 
the Secretary of Education.
    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:
    1. ED will use personal data from the record system identified as 
18-11-07, entitled ``Student Financial Assistance Collection Files,'' 
published in the Federal Register, at 64 FR 30166, June 4, 1999, as 
amended by 64 FR 72407, December 27, 1999.
    2. DoD will use personal data from the record system identified as 
S322.11 DMDC, entitled ``Federal Creditor Agency Debt Collection Data 
Base,'' last published in the Federal Register at 64 FR 42101, August 
3, 1999.
    E. Description of Computer Matching Program: ED, as the source 
agency, will provide DMDC with an electronic file which contains the 
names of delinquent debtors in programs ED administers. Upon receipt of 
the electronic file of debtor accounts, DMDC will perform a computer 
match using all nine digit digits of the SSN of the ED 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 personnel records of non-postal Federal civilian 
employees and military members, both active and retired.
    The ``hits'' or matches will be furnished to ED. ED is responsible 
for verifying and determining that the data on the DMDC electronic 
reply file are consistent with ED's source file and for resolving any 
discrepancies or inconsistencies on an individual basis. ED 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 provided by ED will contain data elements of 
the debtor's name, SSN, internal account numbers and the total amount 
owed for each debtor on approximately 2,000,000 delinquent debtors.
    The DMDC computer database file contains approximately 4.53 million 
records of active duty and retired military members, including the 
Reserve and Guard, and approximately 3.45 million records of active and 
retired non-postal Federal civilian employees.
    DMDC will match the SSN on the ED file by computer against the DMDC 
database. Matching records, ``hits'' based on SSNs, will produce data 
elements of the individual's name, SSN, military service or employing 
agency, and current work or home address.
    F. Inclusive Dates of the matching Program: The effective date of 
the matching agreement and date when matching may actually begin shall 
be at the expiration of the 40-day review period for OMB and Congress, 
or 30 days after publication of the matching notice in the Federal 
Register, whichever date is later. The parties to this agreement may 
assume OMB and Congressional concurrence if no comments are received 
within 40 days of the date of the transmittal letter. The 40-day OMB 
and Congressional review period and the mandatory 30-day public comment 
period for the Federal Register publication of the notice will run 
concurrently. By agreement between ED and DoD, the matching program 
will be in effect 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, 1941 Jefferson Davis Highway, Suite 920, 
Arlington, VA 22202-4502. Telephone (703) 607-2943.

[FR Doc. 02-3703 Filed 2-14-02; 8:45 am]
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