52.224-2
Privacy Act
Contractors must comply with the Privacy Act and ensure all subcontractors do the same when handling systems of records on individuals for federal agencies.
Overview
FAR 52.224-2, Privacy Act, requires contractors to comply with the Privacy Act of 1974 and related agency regulations when they are involved in the design, development, or operation of a system of records on individuals to accomplish an agency function. This clause ensures that contractors and their subcontractors handle personal information in accordance with federal privacy standards, and it establishes both civil and criminal liabilities for violations. The clause also defines key terms such as "operation of a system of records," "record," and "system of records on individuals," clarifying the scope of contractor responsibilities.
Key Rules
- Compliance with the Privacy Act
- Contractors must follow the Privacy Act and agency-specific rules when working on systems of records identified in the contract.
- Flowdown Requirements
- Contractors must include the Privacy Act notification and this clause in all relevant subcontracts and solicitations involving systems of records.
- Liability for Violations
- Contractors may be treated as agency employees for the purposes of the Act, and violations can result in civil actions or criminal penalties.
- Definitions
- The clause provides specific definitions for key terms to ensure clarity in compliance obligations.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and that systems of records are clearly identified.
- Contractors: Comply with the Privacy Act, flow down requirements to subcontractors, and understand liability implications.
- Agencies: Oversee contractor compliance and enforce privacy protections.
Practical Implications
- This clause exists to protect individuals’ personal information handled by contractors.
- It impacts daily operations by requiring strict privacy controls and documentation.
- Common pitfalls include failing to flow down the clause to subcontractors or misunderstanding the scope of "system of records."