[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Notices]
[Pages 36455-36460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12569]


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DEPARTMENT OF COMMERCE

[Docket No. 2203290081]


Privacy Act of 1974; System of Records

AGENCY: Office of the Inspector General, Department of Commerce.

ACTION: Notice of a new system of records.

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SUMMARY: This notice announces the Department of Commerce's (the 
Department) proposal to establish a new system of records entitled 
``COMMERCE/OIG-2, OIG Data Analytics Records,'' under the Privacy Act 
of 1974, as amended, and the Office of Management and Budget (OMB) 
Circular A-108, ``Federal Agency Responsibilities for Review, 
Reporting, and Publication under the Privacy Act.'' This system of 
records will store individually identifying information gathered or 
created from existing systems of records maintained by the Department, 
other Department records, and private sources regarding or supporting 
Department operations. The new system will be used, primarily through 
data analytics techniques, to identify suspicious or fraudulent 
activity, internal control weaknesses, or otherwise to assist the 
Office of Inspector General (OIG) in the performance of its statutory 
duties under the Inspector General Act of 1978, as amended. We invite 
public comment on the new system announced in this publication.

DATES: This new system of records will become effective upon 
publication, subject to a 30-day comment period in which to comment on 
routine uses. To be considered, written comments must be submitted on 
or before July 18, 2022.

ADDRESSES: Please address comments to the Office of Inspector General 
Office of Counsel, Room 7896, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; by email to 
<a href="/cdn-cgi/l/email-protection#602f2927230f150e13050c200f09074e040f034e070f16"><span class="__cf_email__" data-cfemail="410e0806022e342f32242d012e28266f252e226f262e37">[email protected]</span></a>; or by facsimile to (202) 501-7335.

FOR FURTHER INFORMATION CONTACT: E. Wade Green, Jr., OIG Office of 
Counsel, email: <a href="/cdn-cgi/l/email-protection#1b54525c58746e75687e775b74727c357f7478357c746d"><span class="__cf_email__" data-cfemail="76393f313519031805131a36191f115812191558111900">[email protected]</span></a>; or Phone: (202) 792-3317.

SUPPLEMENTARY INFORMATION: The Department is creating a new system of 
records for OIG Data Analytics, entitled ``COMMERCE/OIG-2, OIG Data 
Analytics Records,'' as part of its commitment to ensuring that 
collection, use, retention, or dissemination of information about 
individuals through the use of any technology, including digitized 
archival records, complies with the law.
    The Privacy Act requires each agency that proposes to establish a 
new system of records to provide adequate advance notice of any such 
proposal to the OMB, the Committee on Oversight and Reform of the House 
of Representatives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate (5 U.S.C 552a(r)). The purpose of 
providing the advance notice to OMB and Congress is to permit an 
evaluation of the potential effect of the proposal on the privacy and 
other rights of individuals. The Department filed a report describing 
the new system of records covered by this notice with the Chair of the 
Senate Committee on Homeland Security and Governmental Affairs, the 
Chair of the House Committee on Oversight and Reform, and the Deputy 
Administrator of the Office of Information and Regulatory Affairs, OMB, 
on March 30, 2022.

SYSTEM NAME AND NUMBER:
    COMMERCE/OIG-2, OIG Data Analytics Records.

SECURITY CLASSIFICATION:
    Controlled Unclassified Information (CUI).

SYSTEM LOCATION:
    U.S. Department of Commerce, Office of Inspector General, 1401 
Constitution Avenue NW, Washington, DC 20230.

SYSTEM MANAGER(S):
    Chief of Staff to the Inspector General, Room 7709, Office of 
Inspector General, United States Department of Commerce, 1401 
Constitution Ave. NW, Washington, DC 20230.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The Inspector General Act of 1978, as amended, 5 U.S.C. App. 
(Inspector General Act).

PURPOSE(S) OF THE SYSTEM:
    The records contained in this system are used or are available for 
use by the Office of Inspector General (OIG) to carry out its statutory 
responsibilities under the Inspector General Act to conduct and 
supervise audits, evaluations, inspections, and investigations, to 
prevent and detect fraud, waste, mismanagement, and abuse, and to 
promote economy, efficiency, and effectiveness in the Department of 
Commerce (the Department) programs and operations. The records may be 
used in the course of performing audits, evaluations, and inspections; 
investigating individuals and entities suspected of criminal, civil, or 
administrative misconduct and in supporting related judicial and 
administrative proceedings; or in conducting preliminary inquiries 
undertaken to determine whether to commence an audit, evaluation, 
inspection, or investigation.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    OIG maintains records in its records system on the following 
categories of individuals: current, former, and prospective Department 
employees; contractors; subcontractors; recipients of Federal funds and 
their contractors/subcontractors and employees; grantees; sub-grantees; 
individuals who work on Department grants (e.g., principal 
investigators); lessees; licensees; persons engaged in official 
business with the Department; or other persons identified by OIG or by 
other agencies, constituent units of the Department, and members of the 
general public in connection with the authorized functions of the OIG.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The system contains materials received, gathered, or created 
regarding or supporting Department operations. Categories of records 
may include: Commerce Business Systems information, including general 
ledger data, trial data, customer data, and vendor data; Department 
payroll, fleet card, purchase card, and travel card data; System for 
Award Management data; general case management documentation; 
correspondence; personally identifiable and business identifiable 
information, including financial, employment, time and attendance, 
human resources, and biometric data and Social Security Numbers; 
information protected by Title 13 of the U.S. Code; trade secrets data 
and similar proprietary data; import/export data, including Automated 
Export System data; law enforcement data; data containing information 
related to Department grants and contracts, and other data and evidence 
received, collected, or generated by OIG's Data Analytics group while 
conducting its official duties. Social Security Numbers are maintained 
in the system pursuant to authority under the Inspector General Act and 
are collected or received and maintained in the system as necessary by 
OIG to carry out its statutory responsibilities under the Inspector 
General Act.

[[Page 36456]]

RECORD SOURCE CATEGORIES:
    As described below in ``Exemptions Promulgated for the System,'' 
the OIG claims an exemption from disclosure of record source categories 
under 5 U.S.C. 552a(e)(4)(I). Notwithstanding the foregoing, OIG may 
collect information from a wide variety of sources, including 
information from the Department and other Federal, State, and local 
agencies, and non-governmental entities.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b), all or a portion of the records or information contained in 
this system may be disclosed to authorized individuals and/or entities, 
as is determined to be compatible with the purposes for which the 
record was collected, as a routine use pursuant to 5 U.S.C. 552a(b)(3) 
as follows:
    1. In the event that a record, either by itself or in combination 
with other information, indicates a violation or potential violation of 
law or contract, whether civil, criminal or regulatory in nature, and 
whether arising by general statute or particular program statute or 
contract, or rule, regulation, or order issued pursuant thereto, or the 
necessity to protect an interest of the Department or OIG, the relevant 
records in the system of records may be referred, as a routine use, to 
the appropriate agency or entity, whether federal, state, local, 
tribal, territorial, foreign, or international, charged with the 
responsibility of investigating or prosecuting such violation or 
charged with enforcing or implementing the statute or contract, or 
rule, regulation or order issued pursuant thereto, or protecting the 
interest of the Department or OIG.
    2. To any source from which additional information is requested in 
order to obtain information relevant to: A decision by either the 
Department or OIG concerning the hiring, assignment, or retention of an 
individual or other personnel action; the issuance, renewal, retention, 
or revocation of a security clearance; the execution of a security or 
suitability investigation; the letting of a contract; or the issuance, 
retention, or revocation of a license, grant, award, contract, or other 
benefit to the extent the information is relevant and necessary to a 
decision by the Department or OIG on the matter.
    3. To a Federal, State, local, tribal, territorial, foreign, 
international, or other public authority in response to its request in 
connection with: The hiring, assignment, or retention of an individual; 
the issuance, renewal, retention, or revocation of a security 
clearance; the reporting of an investigation of an individual; the 
execution of a security or suitability investigation; the letting of a 
contract; or the issuance, retention, or revocation of a license, 
grant, award, contract, or other benefit conferred by that entity to 
the extent that the information is relevant and necessary to the 
requesting entity's decision on the matter.
    4. In the course of presenting evidence to a court, magistrate, or 
administrative tribunal, including disclosures to duly-authorized 
investigators or opposing parties in the course of discovery or 
settlement negotiations.
    5. To a Member of Congress submitting a request involving an 
individual when the individual has requested assistance from the Member 
with respect to the subject matter of the record relating to the 
individual.
    6. To the Office of Management and Budget (OMB) in connection with 
the review of private relief legislation as set forth in OMB Circular 
No. A-19 at any stage of the legislative coordination and clearance 
process as set forth in that Circular.
    7. To the Department of Justice (DOJ) or any other Federal agency 
that has an interest in the record in connection with determining 
whether disclosure thereof is required by the Freedom of Information 
Act (FOIA) (5 U.S.C. 552).
    8. To contractors, grantees, consultants, or volunteers performing 
or working on a contract, service, grant, cooperative agreement, job, 
or other activity for the Department or OIG, who have a need to access 
the information in the performance of their duties or activities. When 
appropriate, recipients will be required to comply with the 
requirements of the Privacy Act as provided in 5 U.S.C. 552a(m).
    9. To the Office of Personnel Management (OPM) for personnel 
research purposes; as a data source for management information; for the 
production of summary descriptive statistics and analytical studies in 
support of the function for which the records are collected and 
maintained; or for related manpower studies.
    10. To the General Services Administration (GSA) or the National 
Archives and Records Administration (NARA) during an inspection of 
records conducted by GSA or NARA under the authority of 44 U.S.C. 2904 
and 2906. Such disclosure shall be made in accordance with the GSA or 
NARA regulations governing inspection of records for this purpose and 
any other relevant (i.e., GSA, NARA, or Department) directive. Such 
disclosure shall not be used to make determinations about individuals.
    11. To appropriate agencies, entities, and persons when (1) the 
Department or the OIG suspects or has confirmed that there has been a 
breach of the system of records; (2) the Department or the OIG has 
determined that as a result of the suspected or confirmed breach there 
is a risk of harm to individuals, the Department (including its 
information systems, programs, and operations), the Federal Government, 
or national security; and (3) the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist in connection 
with the Department's or OIG's efforts to respond to the suspected or 
confirmed breach or to prevent, minimize, or remedy such harm.
    12. To another Federal agency or Federal entity, when the OIG 
determines that information from this system of records is reasonably 
necessary to assist the recipient agency or entity in (1) responding to 
a suspected or confirmed breach or (2) preventing, minimizing, or 
remedying the risk of harm to individuals, the recipient agency or 
entity (including its information systems, programs, and operations), 
the Federal Government, or national security, resulting from a 
suspected or confirmed breach.
    13. To the Department of Justice (DOJ) and any other Federal 
agency, to the extent necessary to obtain their advice relevant to an 
OIG matter, including matters concerning the FOIA and the Privacy Act 
(5 U.S.C. 552a).
    14. To the Office of Government Information Services (OGIS), NARA 
to the extent necessary to fulfill its responsibilities in 5 U.S.C. 
552(h) to review administrative policies, procedures, and compliance 
with the FOIA, and to facilitate OGIS' offering of mediation services 
to resolve disputes between persons making FOIA requests and 
administrative agencies.
    15. To the appropriate agency or entity, whether Federal, State, 
local, tribal, territorial, foreign, or international, charged with the 
responsibility for investigating or prosecuting a violation of any law, 
rule, regulation, or order. Routine use for law enforcement purposes 
also includes disclosure to individuals or to agencies, whether 
Federal, State, local, tribal, territorial, foreign, or international, 
when necessary to further the ends of an investigation.
    16. To the DOJ or any other Federal agency that is responsible for 
representing Department interests in connection with judicial,

[[Page 36457]]

administrative, or other proceedings. This includes circumstances in 
which:
    (1) the Department or OIG, or any component thereof;
    (2) any employee of the Department or OIG in his or her official 
capacity;
    (3) any employee of the Department or OIG in his or her individual 
capacity, where DOJ or other agency that is responsible for 
representing Department interests has agreed to represent or is 
considering a request to represent the employee; or
    (4) the United States, or any of its components,

    is a party to pending or potential judicial, administrative, or 
other proceeding or has an interest in such proceeding; the Department 
or OIG is likely to be affected by the proceeding; or the Department or 
OIG determines that the use of such records by the DOJ or any other 
Federal agency that is responsible for representing Department 
interests is relevant and necessary to the proceeding.
    17. To any source from which additional information is requested, 
either private or governmental, to the extent necessary to solicit 
information relevant to any investigation, audit, evaluation, or 
inspection.
    18. To a foreign government or international organization pursuant 
to an international treaty, convention, implementing legislation, or 
executive agreement entered into by the United States.
    19. To representatives of OPM, the Office of Special Counsel, the 
Merit Systems Protection Board, the Federal Labor Relations Authority, 
the Equal Employment Opportunity Commission, the Office of Government 
Ethics, and other Federal agencies in connection with their efforts to 
carry out their responsibilities to conduct examinations, 
investigations, and/or settlement efforts, in connection with 
administrative grievances, complaints, claims, or appeals filed by an 
employee, or as may be authorized by law.
    20. To a grand jury agent pursuant to a Federal or State grand jury 
subpoena or to a prosecution request that such record be released for 
the purpose of its introduction to a grand jury.
    21. To the Departments of the Treasury and Justice in circumstances 
in which OIG seeks to obtain, or has in fact obtained, an ex parte 
court order to obtain tax return information from the Internal Revenue 
Service.
    22. To any Federal official charged with the responsibility to 
conduct qualitative assessment reviews of internal safeguards and 
management procedures for purposes of reporting to the President and 
Congress on the activities of OIG. This disclosure category includes 
other Federal Offices of Inspectors General and members of the Council 
of the Inspectors General on Integrity and Efficiency, and officials 
and administrative staff within their chain of command, as well as 
authorized officials of DOJ and its component, the Federal Bureau of 
Investigation.
    23. To the public or to the media for release to the public when 
(1) the matter under review has become public knowledge or the 
Inspector General determines that such disclosure is necessary to 
preserve confidence in the integrity of the OIG audit, evaluation, 
inspection, review, or investigative process, or is necessary to 
demonstrate the accountability of Department employees, officers, or 
individuals covered by the system; and (2) the Inspector General, after 
receipt of a written recommendation from Counsel to the Inspector 
General, makes a written determination that the release of the specific 
information in the context of a particular case would not constitute an 
unwarranted invasion of personal privacy.
    24. To Congress, congressional committees, or the staffs thereof, 
in order to fulfill the Inspector General's responsibility, as mandated 
by the Inspector General Act, to keep the Congress fully and currently 
informed concerning fraud and other serious problems, abuses, and 
deficiencies concerning the administration of programs and operations 
administered or financed by the Department.
    25. To a Federal, State, local, or foreign agency, or other public 
authority, for use in computer matching programs or similar activities, 
as authorized by the Inspector General Act, to prevent and detect 
fraud, waste, and abuse and to support civil and criminal law 
enforcement activities of any agency or its components.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Any electronic media (photographs, audio recording, diskettes, CDs, 
etc.) are kept in limited-access areas during duty hours and in locked 
offices during nonduty hours. Electronic records are maintained on 
servers, which house OIG's electronic systems. Servers are maintained 
in a secured, restricted-area facility.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Electronic searches may be performed by search criteria that 
include names of individuals, names of businesses, identifying 
particulars, organizations, and other key word search variations.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records are retained and disposed of in accordance with OIG Records 
Retention Schedules approved by NARA.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Any electronic media are kept in limited-access areas during duty 
hours and in locked offices during nonduty hours and are used only by 
authorized screened personnel. Electronic records are stored on servers 
maintained in a locked facility that is secured at all times by 
security systems and video cameras. Data in the system are encrypted 
and password protected. Access to electronic records is restricted to 
OIG staff and contractors individually authorized to access the 
electronic system. Passwords are changed periodically, in accordance 
with OIG policy. Backup tapes are stored in a locked and controlled 
room in a secure off-site facility.

RECORD ACCESS PROCEDURES:
    The Inspector General has exempted this system from the access 
procedures of the Privacy Act.

CONTESTING RECORD PROCEDURES:
    The Inspector General has exempted this system from contesting 
record procedures of the Privacy Act.

NOTIFICATION PROCEDURES:
    The Inspector General has exempted this system from the procedures 
of the Privacy Act relating to individuals' requests for notification 
of the existence of records on themselves.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Under 5 U.S.C. 552a(j)(2), the head of any agency may exempt any 
system of records within the agency from certain provisions of the 
Privacy Act, if the agency or component that maintains the system 
performs as its principal function any activities pertaining to the 
enforcement of criminal laws. The Inspector General Act mandates that 
the Inspector General recommend policies for, and conduct, supervise, 
and coordinate activities in the Department and between the Department 
and other Federal, State, and local government agencies with respect to 
all matters relating to the prevention and detection of fraud in 
programs and operations administered or financed by the Department, and 
to the identification and prosecution of participants in such fraud. 
Under the Inspector General Act,

[[Page 36458]]

whenever the Inspector General has reasonable grounds to believe that 
there has been a violation of Federal criminal law, the Inspector 
General must report the matter expeditiously to the Attorney General. 
In addition to these principal functions pertaining to the enforcement 
of criminal laws, the Inspector General may receive and investigate 
complaints on information from various sources concerning the possible 
existence of activities constituting violations of law, rules, or 
regulations, or mismanagement, gross waste of funds, abuses of 
authority, or substantial and specific danger to the public health and 
safety. The provisions of the Privacy Act from which exemptions are 
claimed under 5 U.S.C. 552a(j)(2) are as follows: 5 U.S.C. 552a(c)(3) 
and (4); 5 U.S.C. 552a(d); 5 U.S.C. 552a(e)(1), (2) and (3); 5 U.S.C. 
552a(e)(4)(G), (H), and (I); 5 U.S.C. 552a(e)(5) and (8); 5 U.S.C. 
552a(f); and 5 U.S.C. 552a(g).
    To the extent that the exemption under 5 U.S.C. 552a(j)(2) is held 
to be invalid or inapplicable, then the exemptions under 5 U.S.C. 
552a(k)(2) and (k)(5) are claimed for all material which meets the 
criteria of these two subsections.
    The provisions of the Privacy Act from which exemptions are claimed 
under 5 U.S.C. 552a(k)(2) and (k)(5) are as follows: 5 U.S.C. 
552a(c)(3); 5 U.S.C. 552a(d); 5 U.S.C. 552a(e)(1); 5 U.S.C. 
552a(e)(4)(G), (H), and (I); and 5 U.S.C. 552a(f).
    Reasons for exemptions: In general, the exemption of this 
information and material is necessary in order to accomplish the law 
enforcement function of the OIG, to prevent subjects of investigations 
from frustrating the investigatory process, to prevent the disclosure 
of investigative techniques, to fulfill commitments made to protect the 
confidentiality of sources, to maintain access to sources of 
information, and to avoid endangering these sources and law enforcement 
personnel. Additional details are as follows:
    Reasons for exemptions under 5 U.S.C. 552a(j)(2) and (k)(2):
    (1) 5 U.S.C. 552a(c)(3) requires that upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The application of 
this provision would alert subjects of an investigation to the 
existence of the investigation and that such persons are subjects of 
that investigation. Since release of such information to subjects of an 
investigation would provide the subjects with significant information 
concerning the nature of the investigation, it could result in the 
altering or destruction of documentary evidence, improper influencing 
of witnesses, and other activities that could impede or compromise the 
investigation. More broadly, the application of this provision could 
reveal the OIG's investigative interests, which could compromise those 
investigative interests. Application of this provision could also 
disclose the confidentiality or privacy interests of others.
    (2) 5 U.S.C. 552a(c)(4), (d), (e)(4)(G) and (H), (f) and (g) relate 
to an individual's right to be notified of the existence of records 
pertaining to such individual; requirements for identifying an 
individual who requests access to records; the agency procedures 
relating to access to records and the contest of information contained 
in such records; and the civil remedies available to the individual in 
the event of adverse determinations by an agency concerning access to 
or amendment of information contained in records systems. This system 
is exempt from the foregoing provisions for the reasons set forth in 
this paragraph. Notifying an individual at the individual's request of 
the existence of records pertaining to such individual, or granting 
access to those records could interfere with investigative and 
enforcement proceedings, deprive co-defendants of a right to a fair 
trial or other impartial adjudication, constitute an unwarranted 
invasion of personal privacy of others, disclose the identity of 
confidential sources, reveal confidential information supplied by these 
sources, and disclose investigative techniques and procedures.
    (3) 5 U.S.C. 552a(e)(4)(I) requires the publication of the 
categories of sources of records in each system of records. The 
application of this provision could require disclosure of investigative 
techniques and procedures and cause sources to refrain from giving such 
information because of fear of reprisal, or fear of breach of promises 
of anonymity and confidentiality. This would compromise the ability to 
conduct investigations, and to identify, detect, and apprehend 
violators.
    (4) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed:
    a. Because it is not possible to determine relevance or necessity 
of specific information in the early stages of an investigation, audit, 
evaluation, inspection, or other review pursuant to the Inspector 
General Act.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after the information is 
evaluated that the relevance and necessity of such information can be 
established.
    c. The Inspector General may obtain information concerning the 
violations of laws other than those within the scope of his or her 
jurisdiction. In the interest of effective law enforcement, the 
Inspector General should retain this information as it may aid in 
establishing patterns of criminal activity and provide leads for those 
law enforcement agencies charged with enforcing other segments of 
criminal or civil law.
    (5) 5 U.S.C. 552a(e)(2) requires an agency to collect information 
to the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under Federal programs. 
The application of the provision would impair investigations of illegal 
acts, violations of the rules of conduct, merit system, and any other 
misconduct for the following reasons:
    a. In certain instances the subject of an investigation cannot be 
required to supply information to investigators. In those instances, 
information relating to a subject's illegal acts, violations of rules 
of conduct, or any other misconduct, etc., must be obtained from other 
sources.
    b. Most information collected about an individual under 
investigation is obtained from third parties such as witnesses and 
informers. It is not feasible to rely upon the subject of the 
investigation as a source for information regarding his or her 
activities.
    c. The subject of an investigation will be alerted to the existence 
of an investigation if any attempt is made to obtain information from 
the subject. This could afford the individual the opportunity to 
conceal any criminal activities to avoid apprehension.
    d. In any investigation, it is necessary to obtain evidence from a 
variety of sources other than the subject of the investigation in order 
to verify the evidence necessary for successful litigation.
    e. In some cases, such as where information can be collected from 
databases, collecting that information

[[Page 36459]]

from individuals would impose significant administrative burdens that 
would interfere with the Inspector General's oversight responsibilities 
under the Inspector General Act.
    (6) 5 U.S.C. 552a(e)(3) requires that an agency must inform an 
individual who is asked to supply information of:
    a. The authority under which the information is sought and whether 
disclosure of the information is mandatory or voluntary,
    b. The purposes for which the information is intended to be used,
    c. The routine uses which may be made of the information, and
    d. The effects on the individual, if any, of not providing the 
requested information.
    The reasons for exempting this system of records from the foregoing 
provision are as follows:
    (i) The disclosure to the subject of any investigation as stated in 
(b) above would provide the subject with substantial information 
relating to the nature of the investigation and could impede or 
compromise the investigation.
    (ii) If the subject were informed of the information required by 
this provision, it could seriously interfere with undercover activities 
requiring disclosure of undercover agents' identity and impairing their 
safety, as well as impairing the successful conclusion of the 
investigation.
    (iii) Individuals may be contacted during preliminary information-
gathering in investigations before any individual is identified as the 
subject of an investigation. Informing the individual of the matters 
required by this provision would hinder or adversely affect any present 
or subsequent investigations.
    (7) 5 U.S.C. 552a(e)(5) requires that records be maintained with 
such accuracy, relevance, timeliness, and completeness as is reasonably 
necessary to assure fairness to the individual in making any 
determination about an individual. Because the law defines ``maintain'' 
to include the collection of information, complying with this provision 
would prevent the collection of any data not shown to be accurate, 
relevant, timely, and complete at the moment of its collection. In 
gathering information during the course of an investigation, it is not 
possible to determine this prior to collection of the information. 
Facts are first gathered and then placed into a logical order which 
supports legal conclusions and Inspector General findings. Material 
that may seem unrelated, irrelevant, incomplete, untimely, etc., may 
take on added meaning as an investigation progresses. The restrictions 
in this provision could interfere with the preparation of complete OIG 
reports.
    (8) 5 U.S.C. 552a(e)(8) requires an agency to make reasonable 
efforts to serve notice on an individual when any record of such 
individual is made available to any persons under compulsory legal 
process when such process becomes a matter of public record. The notice 
requirements of this provision could prematurely reveal and impede an 
ongoing criminal investigation.
    Reasons for exemptions under 5 U.S.C. 552a(k)(5):
    (1) 5 U.S.C. 552a(c)(3) requires that upon request, an agency must 
give an individual named in a record an accounting that reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The application of 
this provision would alert subjects of an investigation to the 
existence of the investigation and that such persons are subjects of 
that investigation. Since release of such information to subjects of an 
investigation would provide the subjects with significant information 
concerning the nature of the investigation, it could result in the 
altering or destruction of documentary evidence, improper influencing 
of witnesses, and other activities that could impede or compromise the 
investigation. More broadly, the application of this provision could 
reveal the OIG's investigative interests, which could compromise those 
investigative interests. Application of this provision could also 
disclose the confidentiality or privacy interests of others.
    (2) 5 U.S.C. 552a(d), (e)(4)(G) and (H), and (f) relate to an 
individual's right to be notified of the existence of records 
pertaining to such individual; requirements for identifying an 
individual who requests access to records; and the agency procedures 
relating to access to records and the contest of information contained 
in such records. This system is exempt from the foregoing provisions 
for the following reasons: To notify an individual at the individual's 
request of the existence of records in an investigative file pertaining 
to such individual or to grant access to an investigative file could 
interfere with investigative and enforcement proceedings; deprive co-
defendants of a right to a fair trial or other impartial adjudication; 
constitute an unwarranted invasion of personal privacy of others; 
disclose the identity of confidential sources and reveal confidential 
information supplied by these sources; and disclose investigative 
techniques and procedures.
    (3) 5 U.S.C. 552a(e)(4)(I) requires the publication of the 
categories of sources of records in each system of records. The 
application of this provision could disclose investigative techniques 
and procedures and cause sources to refrain from giving such 
information because of fear of reprisal, or fear of breach of promises 
of anonymity and confidentiality. This would compromise the ability to 
conduct investigations, and to make fair and objective decisions on 
questions of suitability for Federal employment and related issues.
    (4) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed:
    a. Because it is not possible to determine relevance or necessity 
of specific information in the early stages of an investigation, audit, 
evaluation, inspection, or other review pursuant to the Inspector 
General Act.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after that information is 
evaluated that the relevance and necessity of such information can be 
established.
    c. In any investigation the Inspector General may obtain 
information concerning the violations of laws other than those within 
the scope of his or her jurisdiction. In the interest of effective law 
enforcement, the Inspector General should retain this information as it 
may aid in establishing patterns of criminal activity and provide leads 
for those law enforcement agencies charged with enforcing other 
segments of criminal or civil law.
    d. In interviewing persons, or obtaining other forms of evidence 
during an investigation, information may be supplied to the 
investigator which relate to matters incidental to the main purpose of 
the investigation, but which may relate to matters under investigative 
jurisdiction of another agency. Such information cannot readily be 
segregated.

HISTORY:
    No history.

[[Page 36460]]

    March 31, 2022 Notice of New System of Record.

Jennifer Goode,
Department of Commerce, Deputy Director and Acting Chief Privacy 
Officer and Director of the Office of Privacy and Open Government.
[FR Doc. 2022-12569 Filed 6-16-22; 8:45 am]
BILLING CODE 3510-22-P


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