[Federal Register Volume 69, Number 238 (Monday, December 13, 2004)]
[Notices]
[Pages 72184-72185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27250]


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DEPARTMENT OF DEFENSE

Defense Logistics Agency


Privacy Act of 1974; Computer Matching Program

AGENCY: Defense Manpower Data Center, Defense Logistics Agency, DoD.

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), Defense Manpower 
Data Center (DMDC), as the matching agency under the Privacy Act, is 
hereby given notice to the record subjects to a computer matching 
program between Department of Veterans Affairs, Office of Inspector 
General (VA OIG) and the Department of Defense (DoD) that their records 
are being matched by computer. The purpose of the computer matching 
program is to attempt to verify eligibility for VA Compensation and 
Pension (C&P) benefits by matching veteran's record of those benefits 
with the military service record of veterans eligible for those 
benefits for themselves or their beneficiaries.

DATES: This proposed action will become effective January 12, 2005, 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 concerns. Any public comment must be received 
before the effective date.

ADDRESSES: Any interested party may submit written comments to the 
Director, Defense Privacy Office, 1901 South Bell Street, Suite 920, 
Arlington, VA 22202-4512.

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 VA OIG and DMDC have 
concluded an agreement to conduct a computer matching program between 
agencies. The purpose of the computer matching program is to attempt to 
verify eligibility for VA C&P benefits by matching veteran's record of 
those benefits with the military service record of veterans eligible 
for those benefits for themselves or their beneficiaries.
    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 VA OIG to 
verify the military service record of veterans eligible for VA (C&P) 
benefits, to identify potential fraudulent payments to fictitious 
veterans, and to identify payments that should be adjusted where the 
beneficiary is not entitled to all or part of the VA C&P benefits 
received. The principal alternative to using a computer matching 
program for identifying such individuals would be to conduct a manual 
comparison of all veterans or their beneficiaries receiving VA (C&P) 
benefits with the other files. Conducting a manual match, however, 
would clearly impose a considerable administrative burden, constitute a 
greater intrusion on the individual's privacy, and would result in 
additional delay in the eventual response to possible fraud and abuse. 
By comparing the information received through the computer matching 
program between VA OIG and DMDC on a recurring basis, information on 
successful matches (hits) can be provided to VA to initiate research on 
these discrepancies, thus assuring that benefit payments are proper.
    A copy of the computer matching agreement between VA OIG and DoD is 
available upon request. Requests should be submitted to the address 
caption above or to the Department of Veterans Affairs, Office of 
Inspector General (52CO), 810 Vermont Avenue NW., Washington, DC 20420.
    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 
December 1, 2004, 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: December 7, 2004.
Jeannette Owings-Ballard,
OSD Federal Register Liaison Officer, Department of Defense.
NOTICE OF A COMPUTER MATCHING PROGRAM AGREEMENT BETWEEN OFFICE OF THE 
INSPECTOR GENERAL THE DEPARTMENT OF VETERANS AFFAIRS AND THE DEFENSE 
MANPOWER DATA CENTER, THE DEPARTMENT OF DEFENSE FOR VERIFICATION OF 
ELIGIBILITY

A. PARTICIPATING AGENCIES:
    Participants in this computer matching program are the Department 
of Veterans Affairs, Office of Inspector General (VA OIG) and the 
Department of Defense (DoD), Defense Manpower Data Center (DMDC). The 
VA OIG is the source agency, i.e., the activity disclosing the records 
for the purpose of the match. The DoD 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, VA will provide and disclose 
VA Compensation and Pension (C&P) and Veterans Assistance Discharge 
Systems (VADS) records to DMDC to identify individuals that have not 
separated from military service and/or confirm elements of military 
service relevant to the adjudication of VA benefits. VA OIG will use 
this information to initiate an independent verification process to 
determine eligibility and entitlement to VA benefits.

C. AUTHORITY FOR CONDUCTING THE MATCH:
    The authority to conduct this match is 5 U.S.C. App. 3, the 
Inspector General Act of 1978 (IG Act). The IG Act authorizes the VA 
OIG to conduct audits and investigations relating to the programs and 
operations of VA. IG Act, section 2. In addition, section 4 of the IG 
Act provides that the IG will conduct activities designed to promote 
economy and efficiency and to prevent and detect fraud and abuse in 
VA's programs and operations.

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. VA will use personal data from the following Privacy Act record 
system for the match: Compensation, Pension, Education and 
Rehabilitation Records--

[[Page 72185]]

VA, 58VA21/22, first published at 41 FR 9294, March 3, 1976, and last 
amended at 66 FR 47725, September 13, 2001, with other amendments as 
cited therein.
    2. DoD will use personal data from the following Privacy Act record 
system for the match: Defense Manpower Data Center Data Base--S322.10 
DMDC, published in the Federal Register at 69 FR 31974 on June 8, 2004.
    3. 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 information. The systems of records described above 
contain appropriate routine use provisions that pertain to disclosure 
of information between the agencies.

E. DESCRIPTION OF COMPUTER MATCHING PROGRAM:
    VA, as the source agency, will provide DMDC with two electronic 
files, the C&P and VADS files. The C&P file contains names of veterans, 
SSNs, and compensation and pension records. The VADS file contains 
names of veterans, SSNs, and DD214 data. Upon receipt of the electronic 
files, DMDC will perform a match using the SSNs in the VA C&P file, and 
the VADS file against the DMDC Active Duty Transaction, Reserve 
Transaction, and Reserve Master files. DMDC will provide VA OIG an 
electronic listing of VA C&P and VADS records for which there is no 
matching record from any of the three DMDC files, and an electronic 
listing of records that contain data that are inconsistent with data 
contained in the VA C&P or VADS files. VA OIG is responsible for 
verifying and determining that the data on the DMDC electronic reply 
file are consistent with the VA source file and for resolving any 
discrepancies or inconsistencies on an individual basis.

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. Matching will be 
conducted when the review/publication requirements have been satisfied 
and thereafter on an annual basis. By agreement between VA OIG and 
DMDC, 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, 1901 South Bell Street, Suite 
920, Arlington, VA 22202-4512. Telephone (703) 607-2943.

[FR Doc. 04-27250 Filed 12-10-04; 8:45 am]
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