The contract will specifically provide that the contractor is subject to the civil and criminal penalties of the Privacy Act, and should a contractor employ unfair or unreasonable collection techniques, the contract may be terminated immediately. We will require that successful bidders comply with the Fair Debt Collection Practices Act by incorporating the provisions of the Act in our contracts. The Office of Education will have personnel on-site to monitor the activities of the contractor. These pilot contracts will be for a one year period. This will give us the opportunity to evaluate the effectiveness of our privacy safeguards and our safeguards against unfair debt collection practices after we have gained some solid experience with private agencies. I appreciate your concern in this matter. It is our intention to improve our record of debt collection without infringing on the rights of the individuals involved. Sincerely, все oseph A. Califano, Jr. Enclosure A recent press release by your Department announced that the It would be most helpful if you would provide the subcommittee with an explanation of how HEW intends to comply with the requirements of the Privacy Act and the Education Amendments of 1976, as they relate to the loan default collection effort. In this regard, it would be useful for us to know HEW's view relative to the ownership of the information provided to and/or gathered by contractors; what safeguards will be incorporated into the contract(s) to limit misuse of information by collection agencies; what provisions are contemplated for ultimate disposition of information provided to and/or gathered by contractors; how compliance with the "fair and reasonable" collection requirement will be monitored; and what penalties will accrue to contractors who either misuse information and/or use unfair and unreasonable collection techniques. Sincerely, Richardson Preyer APPENDIX 3.-JUNE 1, 1978, LETTER TO AGENCIES ENCLOSING QUESTIONNAIRE ON OWNERSHIP, USE, AND DISPOSITION OF CONTRACTOR DATA The House Subcommittee on Government Information and Individual Rights is studying the ownership, uses and disposition made by contractors of records and data developed in pursuit of government contracts and what Federal policies exist governing such ownership, uses, and disposition. Our study includes collateral uses made of this information apart from the specific purposes for which it was developed under the contract, and what use and disposition contractors make of the information after the contract has ended. While our concern focuses mainly on personal information and policies safeguarding its misuses, we are also concerned with the use and disposition of other information such as scientific, technical, and financial data developed under government contract. Our preliminary findings indicate that no uniform Federal policies exist governing the use and disposition of such contractor data, nor do most Federal agencies appear to have specific policies, guidelines, or contractual provisions treating collateral use and ultimate disposition. We are aware that Federal regulations provide guidance for storage of contractor financial records for use of rights-in-data clauses where patents and copyrights are potentially involved, and for disposition of classified information. However, our primary focus is on contractor records and data which are not covered by these regulations. To pursue our study of this issue and to prepare a timely report, we need additional information and believe the brief questionnaire attached will provide that information with minimal effort from your department. We need your reply by June 23rd in order to complete our study. If you feel you cannot respond by then, please call me or subcommittee Staff Director, Timothy H. Ingram, to discuss an alternate date. Attachment (84) Sincerely, Richardson Preyer QUESTIONS FOR FEDERAL DEPARTMENTS ON USES AND DISPOSITION OF INFORMATION 1. Does the department have a policy on contractors' collateral uses and disposition of records and data? If so: a. Provide copies of departmental directives, memos, regulations, etc., as appropriate. regulations.) b. Do your policies differ for educational and not-for-profit institutions as compared with for-profit contractors? If so, the difference. explain c. How do you assure contractor compliance with the policy? d. Do you feel that contractors should or should not be required to certify in writing their compliance with Federal policy? 2. If the department does not have a policy as described in Question 1 above: a. Does the department believe that specific policy guidelines on ownership, use, and disposition of data are needed to protect government interests and individuals' rights to privacy. Why or why not? b. Does the department plan to address this matter in the near future? 3. What is the department's policy on the ownership of data assembled by contractors including data related to, but not part of, the final product? 4. Do most department contracts contain clauses specifying who owns the data, how it can be used, and the ultimate disposition of the data (for example: return to the government, destroy, strip personal identifiers)? If so: a. Are these clauses placed in contracts routinely or on a case-by-case basis? b. Do these clauses prohibit the contractor from retaining copies of the records and data which he is required to destroy or return to the government? c. Who is responsible for determining that these clauses are appro priate to a given contract? d. Provide representative examples of the contract clauses. 5. Are you generally aware of situations in your department where a contractor, a. Is this done with or without the concurrence of the department? 6. Can you cite examples of subject areas where the Federal government and private contractors disagree over ownership, use, and/or disposition of records and data? Briefly describe the disagreement in each case. 7. Please provide any other views you may have regarding Federal policy on the use and disposition of information in the possession of Federal contractors. |