Contracts broaden the range of services that can be offered by a single agency. Contracts allow the agency to experiment with a variety of services and various methods of delivery and provide invaluable research and statistical information. However, contracts also expand the possibility that private data on individuals may be misused. The responsible authority of the welfare system must ensure that access to not-public data by contractors is limited and secure.
Contractors are a part of the welfare system to the extent specified in the contract.
As a result some contractors will have the same rights and responsibilities in maintaining data as do government agencies within the welfare system. It is important that all contracts be drafted to clearly spell out data to which the contractor is entitled and the responsibilities of the contractor under the Data Practices Act. Specific wording to limit liability has been developed by the attorney general's staff. It should never be assumed that the contractor knows what is expected because of what was discussed in the contract negotiations. While the agency should never purport to offer legal advice, many training and informational materials about data practices are available to the contractor.