# 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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-27643

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** October 23, 1997
- **Citation:** 62 FR 55222

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-27643. Public record. Not legal advice.