The Impact of the Privacy Act of 1974 on Federal Contractors

Provisions of the Privacy Act of 1974 must be applied to systems of records on people when federal contractors accomplish a function for a federal agency. However, implementation of the subsection of the act addressing contractors has been given low priority by contracting agencies and by the contractors. Many agency and contractor officials believe this is not a cause for concern. Since there is a potential for harm of varying consequences to persons involved, the Office of Management and Budget should direct and encourage federal agencies and departments to improve their efforts to comply with the relevant provisions.