52.224-3 Privacy Training
Source: FAR 52.224-3 on acquisition.gov
Contractors must ensure all employees and applicable subcontractors handling personally identifiable information for the government complete and document initial and annual privacy training before accessing such data or systems.
Overview
FAR 52.224-3, Privacy Training, requires contractors whose employees handle personally identifiable information (PII) or have access to systems of records on behalf of a federal agency to ensure those employees complete initial and annual privacy training. The clause defines PII and outlines specific training content, including the Privacy Act, safeguarding PII, authorized use, and breach procedures. Contractors must maintain documentation of completed training and provide it to the Contracting Officer upon request. Employees may not access or handle PII or systems of records until training is complete. The clause must also be flowed down to applicable subcontractors. An alternate version allows agencies to provide the required training directly.
Key Rules
- Definition of Personally Identifiable Information (PII)
- PII is any information that can distinguish or trace an individual's identity, alone or when combined with other data.
- Training Requirement
- Contractors must ensure initial and annual privacy training for employees handling PII or systems of records.
- Training Content
- Training must cover the Privacy Act, safeguarding PII, authorized use, restrictions on equipment, prohibitions on unauthorized use/disclosure, and breach response procedures.
- Documentation
- Contractors must maintain and provide proof of training completion upon request.
- Access Restriction
- Employees cannot access or handle PII/systems of records until training is complete.
- Subcontractor Flowdown
- The clause must be included in subcontracts where employees handle PII or systems of records.
- Alternate Clause
- Agencies may require use of their own training program instead of contractor-provided training.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause and verify contractor compliance/documentation.
- Contractors: Provide, document, and enforce privacy training for all relevant employees and subcontractors.
- Agencies: May provide training directly and must oversee compliance.
Practical Implications
- Ensures all personnel handling sensitive information are properly trained, reducing risk of data breaches and non-compliance penalties.
- Contractors must track and document training, and ensure timely flowdown to subs.
- Common pitfalls include failing to document training, not updating training annually, or missing subcontractor compliance.
As prescribed in 24.302 , insert the following clause:
Privacy Training (Jan 2017)
(a) Definition. As used in this clause, "personally identifiable information" means information that can be used to distinguish or trace an individual's identity, either alone or when combined with other information that is linked or linkable to a specific individual. (See Office of Management and Budget (OMB) Circular A-130, Managing Federal Information as a Strategic Resource).
(b) The Contractor shall ensure that initial privacy training, and annual privacy training thereafter, is completed by contractor employees who-
(1) Have access to a system of records;
(2) Create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information on behalf of an agency; or
(3) Design, develop, maintain, or operate a system of records (see also FAR subpart 24.3 and 39.105).
(c)
(1) "Privacy training shall address the key elements necessary for ensuring the safeguarding of personally identifiable information or a system of records. The training shall be role-based, provide foundational as well as more advanced levels of training, and have measures in place to test the knowledge level of users. At a minimum, the privacy training shall cover-
(i) The provisions of the Privacy Act of 1974 (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section552a&num=0&edition=prelim" target="_blank">5 U.S.C. 552a), including penalties for violations of the Act;
(ii) The appropriate handling and safeguarding of personally identifiable information;
(iii) The authorized and official use of a system of records or any other personally identifiable information;
(iv) The restriction on the use of unauthorized equipment to create, collect, use, process, store, maintain, disseminate, disclose, dispose or otherwise access personally identifiable information;
(v) The prohibition against the unauthorized use of a system of records or unauthorized disclosure, access, handling, or use of personally identifiable information; and
(vi) The procedures to be followed in the event of a suspected or confirmed breach of a system of records or the unauthorized disclosure, access, handling, or use of personally identifiable information (see OMB guidance for Preparing for and Responding to a Breach of Personally Identifiable Information).
(2) Completion of an agency-developed or agency-conducted training course shall be deemed to satisfy these elements.
(d) The Contractor shall maintain and, upon request, provide documentation of completion of privacy training to the Contracting Officer.
(e) The Contractor shall not allow any employee access to a system of records, or permit any employee to create, collect, use, process, store, maintain, disseminate, disclose, dispose or otherwise handle personally identifiable information, or to design, develop, maintain, or operate a system of records unless the employee has completed privacy training, as required by this clause.
(f) The substance of this clause, including this paragraph (f), shall be included in all subcontracts under this contract, when subcontractor employees will-
(1) Have access to a system of records;
(2) Create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information; or
(3) Design, develop, maintain, or operate a system of records.
(End of clause)
Alternate I (Jan 2017). As prescribed in 24.302 (b), if the agency specifies that only its agency-provided training is acceptable, substitute the following paragraph (c) for paragraph (c) of the basic clause:
(c) The contracting agency will provide initial privacy training, and annual privacy training thereafter, to Contractor employees for the duration of this contract.