[Federal Register Volume 79, Number 25 (Thursday, February 6, 2014)]
[Proposed Rules]
[Pages 7114-7117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01882]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 317

[DOD-2008-OS-0068]
RIN 0790-AI31


Defense Contract Audit Agency (DCAA) Privacy Act Program

AGENCY: Department of Defense.

ACTION: Proposed rule.

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SUMMARY: The Department of Defense (DoD) is proposing to amend the 
Defense Contract Audit Agency (DCAA) Privacy Act Program Regulation. 
Specifically, an exemption section is being added to include an 
exemption for

[[Page 7115]]

RDCAA 900.1, DCAA Internal Review Case Files. This rulemaking provides 
policies and procedures for the DCAA's implementation of the Privacy 
Act of 1974, as amended.

DATES: Comments must be received by April 7, 2014.

ADDRESSES: You may submit comments, identified by docket number and/or 
RIN number and title, by any of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Federal Docket Management System Office, 4800 Mark 
Center Drive, East Tower, Suite 02G09, Alexandria, VA 22350-3100.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
Federal Register document. The general policy for comments and other 
submissions from members of the public is to make these submissions 
available for public viewing on the Internet at http://www.regulations.gov as they are received without change, including any 
personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Mr. Keith Mastromichalis, FOIA/PA 
Management Analyst, DCAA HQ, 703-767-1022.

SUPPLEMENTARY INFORMATION: 
    The revisions to this rule are part of DoD's retrospective plan 
under EO 13563 completed in August 2011. DoD's full plan can be 
accessed at http://exchange.regulations.gov/exchange/sites/default/files/doc_files/Department%20of%20Defense%20Final%20Plan.pdf.

Executive Summary

I. Purpose of This Regulatory Action

    a. This rule provides policies and procedures for DCAA's 
implementation of the Privacy Act of 1974, as amended.
    b. Authority: Privacy Act of 1974, Public Law 93-579, Stat. 1896 (5 
U.S.C. 552a).

II. Summary of the Major Provisions of This Regulatory Action

    DCAA is adding an exemption section to include an exemption for 
RDCAA 900.1, DCAA Internal Review Case Files.

III. Costs and Benefits of This Regulatory Action

    This regulatory action imposes no monetary costs to the Agency or 
public. The benefit to the public is the accurate reflection of the 
Agency's Privacy Program to ensure that policies and procedures are 
known to the public.

Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    It has been determined that Privacy Act rules for the Department of 
Defense are not significant rules. This rule does not (1) Have an 
annual effect on the economy of $100 million or more or adversely 
affect in a material way the economy; a sector of the economy; 
productivity; competition; jobs; the environment; public health or 
safety; or State, local, or tribal governments or communities; (2) 
Create a serious inconsistency or otherwise interfere with an action 
taken or planned by another Agency; (3) Materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs, or the 
rights and obligations of recipients thereof; or (4) Raise novel legal 
or policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in these Executive Orders.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)

    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 within the Department of Defense.

Public Law 95-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been determined that this Privacy Act rule for the 
Department of Defense imposes no information collection requirements on 
the public under the Paperwork Reduction Act of 1995.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    It has been determined that this Privacy Act rulemaking for the 
Department of Defense does not involve a Federal mandate that may 
result in the expenditure by State, local and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more and 
that such rulemaking will not significantly or uniquely affect small 
governments.

Executive Order 13132, ``Federalism''

    It has been determined that the Privacy Act rule for the Department 
of Defense does not have federalism implications. The rule does not 
have substantial direct effects on the States, on the relationship 
between the National Government and the States, or on the distribution 
of power and responsibilities among the various levels of government.

List of Subjects in 32 CFR Part 317

    Privacy.
    Accordingly the Department proposes to revise 32 CFR Part 317 to 
read as follows:

PART 317--DCAA PRIVACY ACT PROGRAM

Sec.
317.1 Purpose
317.2 Applicability and scope.
317.3 Policy.
317.4 Responsibilities.
317.5 Procedures.
317.6 Procedures for exemptions

    Authority: Pub. L. 93-579, 88 Stat. 1896 (5 U.S.C. 552a).


Sec.  317.1  Purpose.

    This part provides policies and procedures for the Defense Contract 
Audit Agency's (DCAA) implementation of the Privacy Act of 1974 (5 
U.S.C. 552a) and 32 CFR part 310, and is intended to promote uniformity 
within DCAA.


Sec.  317.2  Applicability and scope.

    (a) This part applies to all DCAA organizational elements and takes 
precedence over all regional regulatory issuances that supplement the 
DCAA Privacy Program.
    (b) This part shall be made applicable by contract or other legally 
binding action to contractors whenever a DCAA contract provides for the 
operation of a system of records or portion of a system of records to 
accomplish an Agency function.


Sec.  317.3  Policy.

    (a) It is DCAA policy that personnel will comply with the DCAA 
Privacy Program; the Privacy Act of 1974; and the DoD Privacy Program 
(32 CFR part 310). Strict adherence is necessary to ensure uniformity 
in the implementation of the DCAA Privacy Program and create conditions 
that will foster public trust. It is also Agency policy to safeguard 
personal information contained in any system of records maintained by 
DCAA organizational elements and to make that information available to 
the individual to whom it pertains to the maximum extent practicable.
    (b) DCAA policy specifically requires that DCAA organizational 
elements:
    (1) Collect, maintain, use, and disseminate personal information 
only when it is relevant and necessary to

[[Page 7116]]

achieve a purpose required by statute or Executive Order.
    (2) Collect personal information directly from the individuals to 
whom it pertains to the greatest extent practical.
    (3) Inform individuals who are asked to supply personal information 
for inclusion in any system of records:
    (i) The authority for the solicitation.
    (ii) Whether furnishing the information is mandatory or voluntary.
    (iii) The intended uses of the information.
    (iv) The routine disclosures of the information that may be made 
outside of DoD.
    (v) The effect on the individual of not providing all or any part 
of the requested information.
    (4) Ensure that records used in making determinations about 
individuals and those containing personal information are accurate, 
relevant, timely, and complete for the purposes for which they are 
being maintained before making them available to any recipients outside 
of DoD, other than a Federal agency, unless the disclosure is made 
under DCAA Regulation 5410.8, DCAA Freedom of Information Act Program.
    (5) Keep no record that describes how individuals exercise their 
rights guaranteed by the First Amendment to the U.S. Constitution, 
unless expressly authorized by statute or by the individual to whom the 
records pertain or is pertinent to and within the scope of an 
authorized law enforcement activity.
    (6) Notify individuals whenever records pertaining to them are made 
available under compulsory legal processes, if such process is a matter 
of public record.
    (7) Establish safeguards to ensure the security of personal 
information and to protect this information from threats or hazards 
that might result in substantial harm, embarrassment, inconvenience, or 
unfairness to the individual.
    (8) Establish rules of conduct for DCAA personnel involved in the 
design, development, operation, or maintenance of any system of records 
and train them in these rules of conduct.
    (9) Assist individuals in determining what records pertaining to 
them are being collected, maintained, used, or disseminated.
    (10) Permit individual access to the information pertaining to them 
maintained in any system of records, and to correct or amend that 
information, unless an exemption for the system has been properly 
established for an important public purpose.
    (11) Provide, on request, an accounting of all disclosures of the 
information pertaining to them except when disclosures are made:
    (i) To DoD personnel in the course of their official duties.
    (ii) Under DCAA Regulation 5410.8, DCAA Freedom of Information Act 
Program.
    (iii) To another agency or to an instrumentality of any 
governmental jurisdiction within or under control of the United States 
conducting law enforcement activities authorized by law.
    (12) Advise individuals on their rights to appeal any refusal to 
grant access to or amend any record pertaining to them, and file a 
statement of disagreement with the record in the event amendment is 
refused.


Sec.  317.4  Responsibilities.

    (a) The Assistant Director, Resources has overall responsibility 
for the DCAA Privacy Act Program and will serve as the sole appellate 
authority for appeals to decisions of respective initial denial 
authorities.
    (b) The Chief, Administrative Management Division under the 
direction of the Assistant Director, Resources, shall:
    (1) Establish, issue, and update policies for the DCAA Privacy Act 
Program; monitor compliance with this part; and provide policy guidance 
for the DCAA Privacy Act Program.
    (2) Resolve conflicts that may arise regarding implementation of 
DCAA Privacy Act policy.
    (3) Designate an Agency Privacy Act Advisor, as a single point of 
contact, to coordinate on matters concerning Privacy Act policy.
    (4) Make the initial determination to deny an individual's written 
Privacy Act request for access to or amendment of documents filed in 
Privacy Act systems of records. This authority cannot be delegated.
    (c) The DCAA Privacy Act Advisor under the supervision of the 
Chief, Administrative Management Division shall:
    (1) Manage the DCAA Privacy Act Program in accordance with this 
part and applicable DCAA policies, as well as DoD and Federal 
regulations.
    (2) Provide guidelines for managing, administering, and 
implementing the DCAA Privacy Act Program.
    (3) Implement and administer the Privacy Act program at the 
Headquarters.
    (4) Ensure that the collection, maintenance, use, or dissemination 
of records of identifiable personal information is in a manner that 
assures that such action is for a necessary and lawful purpose; that 
the information is timely and accurate for its intended use; and that 
adequate safeguards are provided to prevent misuse of such information.
    (5) Prepare promptly any required new, amended, or altered system 
notices for systems of records subject to the Privacy Act and submit 
them to the Defense Privacy Office for subsequent publication in the 
Federal Register.
    (6) Conduct training on the Privacy Act program for Agency 
personnel.
    (d) Heads of Principal Staff Elements are responsible for:
    (1) Reviewing all regulations or other policy and guidance 
issuances for which they are the proponent to ensure consistency with 
the provisions of this part.
    (2) Ensuring that the provisions of this part are followed in 
processing requests for records.
    (3) Forwarding to the DCAA Privacy Act Advisor, any Privacy Act 
requests received directly from a member of the public, so that the 
request may be administratively controlled and processed.
    (4) Ensuring the prompt review of all Privacy Act requests, and 
when required, coordinating those requests with other organizational 
elements.
    (5) Providing recommendations to the DCAA Privacy Act Advisor 
regarding the releasability of DCAA records to members of the public, 
along with the responsive documents.
    (6) Providing the appropriate documents, along with a written 
justification for any denial, in whole or in part, of a request for 
records to the DCAA Privacy Act Advisor. Those portions to be excised 
should be bracketed in red pencil, and the specific exemption or 
exemptions cites which provide the basis for denying the requested 
records.
    (e) The General Counsel is responsible for:
    (1) Ensuring uniformity is maintained in the legal position, and 
the interpretation of the Privacy Act; 32 CFR part 310; and this part.
    (2) Consulting with DoD General Counsel on final denials that are 
inconsistent with decisions of other DoD components, involve issues not 
previously resolved, or raise new or significant legal issues of 
potential significance to other Government agencies.
    (3) Providing advice and assistance to the Assistant Director, 
Resources; Regional Directors; and the Regional Privacy Act Officer, 
through the DCAA Privacy Act Advisor, as required, in the discharge of 
their responsibilities.

[[Page 7117]]

    (4) Coordinating Privacy Act litigation with the Department of 
Justice.
    (5) Coordinating on Headquarters denials of initial requests.
    (f) Each Regional Director is responsible for the overall 
management of the Privacy Act program within their respective regions. 
Under his/her direction, the Regional Resources Manager is responsible 
for the management and staff supervision of the program and for 
designating a Regional Privacy Act Officer. Regional Directors will, as 
designee of the Director, make the initial determination to deny an 
individual's written Privacy Act request for access to or amendment of 
documents filed in Privacy Act systems of records. This authority 
cannot be delegated.
    (g) Regional Privacy Act Officers will:
    (1) Implement and administer the Privacy Act program throughout the 
region.
    (2) Ensure that the collection, maintenance, use, or dissemination 
of records of identifiable personal information is in compliance with 
this part to assure that such action is for a necessary and lawful 
purpose; that the information is timely and accurate for its intended 
use; and that adequate safeguards are provided to prevent misuse of 
such information.
    (3) Prepare input for the annual Privacy Act Report when requested 
by the DCAA Information and Privacy Advisor.
    (4) Conduct training on the Privacy Act program for regional and 
FAO personnel.
    (5) Provide recommendations to the Regional Director through the 
Regional Resources Manager regarding the releasability of DCAA records 
to members of the public.
    (h) Managers, Field Audit Offices (FAOs) will:
    (1) Ensure that the provisions of this part are followed in 
processing requests for records.
    (2) Forward to the Regional Privacy Act Officer, any Privacy Act 
requests received directly from a member of the public, so that the 
request may be administratively controlled and processed.
    (3) Ensure the prompt review of all Privacy Act requests, and when 
required, coordinating those requests with other organizational 
elements.
    (4) Provide recommendation to the Regional Privacy Act Officer 
regarding the releasability of DCAA records to members of the public, 
along with the responsive documents.
    (5) Provide the appropriate documents, along with a written 
justification for any denial, in whole or in part, of a request for 
records to the Regional Privacy Act Officer. Those portions to be 
excised should be bracketed in red pencil, and the specific exemption 
or exemptions cited which provide the basis for denying the requested 
records.
    (i) DCAA Employees will:
    (1) Not disclose any personal information contained in any system 
of records, except as authorized by this part.
    (2) Not maintain any official files which are retrieved by name or 
other personal identifier without first ensuring that a notice for the 
system has been published in the Federal Register.
    (3) Report any disclosures of personal information from a system of 
records or the maintenance of any system of records that are not 
authorized by this part to the appropriate Privacy Act officials for 
their action.


Sec.  317.5  Procedures.

    Procedures for processing material in accordance with the Privacy 
Act of 1974 are outlined in DoD 5400.11-R, DoD Privacy Program (32 CFR 
part 310).


Sec.  317.6  Procedures for exemptions.

    (a) General information. There are two types of exemptions, general 
and specific. The general exemption authorizes the exemption of a 
system of records from all but a few requirements of the Privacy Act. 
The specific exemption authorizes exemption of a system of records or 
portion thereof, from only a few specific requirements. If a new system 
of records originates for which an exemption is proposed, or an 
additional or new exemption for an existing system of records is 
proposed, the exemption shall be submitted with the system of records 
notice. No exemption of a system of records shall be considered 
automatic for all records in the system. The systems manager shall 
review each requested record and apply the exemptions only when this 
will serve significant and legitimate Government purposes.
    (b) Specific Exemptions. (1) System identifier and name: RDCAA 
900.1, DCAA Internal Review Case Files
    (i) Exemption: Any portions of this system of records which fall 
under the provisions of 5 U.S.C. 552a(k)(2) and (k)(5) may be exempt 
from the following subsections of 5 U.S.C. 552a: (c)(3), (d), (e)(1), 
(e)(4)(G), (H), and (f).
    (ii) Authority: 5 U.S.C. 552a(k)(2) and (k)(5).
    (iii) Reason: (A) From subsection (c)(3) because disclosures from 
this system could interfere with the just, thorough and timely 
resolution of the complaint or inquiry, and possibly enable individuals 
to conceal their wrongdoing or mislead the course of the investigation 
by concealing, destroying or fabricating evidence or documents.
    (B) From subsection (d) because disclosures from this system could 
interfere with the just, thorough and timely resolution of the 
complaint or inquiry, and possibly enable individuals to conceal their 
wrongdoing or mislead the course of the investigation by concealing, 
destroying or fabricating evidence or documents. Disclosures could also 
subject sources and witnesses to harassment or intimidation which 
jeopardize the safety and well-being of themselves and their families.
    (C) From subsection (e)(1) because the nature of the investigation 
functions creates unique problems in prescribing specific parameters in 
a particular case as to what information is relevant or necessary. Due 
to close liaison and working relationships with other Federal, state, 
local, foreign country law enforcement agencies, and other governmental 
agencies, information may be received which may relate to a case under 
the investigative jurisdiction of another government agency. It is 
necessary to maintain this information in order to provide leads for 
appropriate law enforcement purposes and to establish patterns of 
activity which may relate to the jurisdiction of other cooperating 
agencies.
    (D) From subsection (e)(4)(G) through (H) because this system of 
records is exempt from the access provisions of subsection (d).
    (E) From subsection (f) because the agency's rules are inapplicable 
to those portions of the system that are exempt and would place the 
burden on the agency of either confirming or denying the existence of a 
record pertaining to a requesting individual might in itself provide an 
answer to that individual relating to an on-going investigation. The 
conduct of a successful investigation leading to the indictment of a 
criminal offender precludes the applicability of established agency 
rules relating to verification of record, disclosure of the record to 
that individual, and record amendment procedures for this record 
system.

    Dated: January 21, 2014.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2014-01882 Filed 2-5-14; 8:45 am]
BILLING CODE 5001-06-P