FAR 52.224-1—Privacy Act Notification.
Plain-English Summary
FAR 52.224-1, Privacy Act Notification, is a solicitation and contract clause used when a contractor will design, develop, or operate a system of records on individuals to carry out an agency function. The clause alerts the contractor that the work is subject to the Privacy Act of 1974, 5 U.S.C. 552a, and to applicable agency Privacy Act regulations. Its purpose is to put the contractor on notice that handling personal information in a covered system of records is not just a routine contract task, but a legally regulated activity with potential criminal consequences for violations. In practice, this clause is a trigger for privacy compliance planning: contractors must understand whether the work involves a Privacy Act system of records, what agency rules apply, and how records must be protected, used, and disclosed. Contracting officers use the clause to ensure the contractor is formally informed of the legal framework before performance begins. The clause does not itself spell out all Privacy Act duties, but it ties the contract work to those duties and makes compliance expectations explicit.
Key Rules
Use only for covered systems
The clause is inserted when the contract requires the contractor to design, develop, or operate a system of records on individuals to accomplish an agency function. If the work does not involve a Privacy Act system of records, this clause is not the applicable notice.
Privacy Act applies to the work
The contractor is notified that the system of records is subject to the Privacy Act of 1974, 5 U.S.C. 552a, and to the agency’s implementing regulations. This means the contractor must treat the records and related handling requirements as legally controlled, not merely contractually sensitive.
Criminal penalties are possible
The clause expressly warns that violating the Privacy Act may result in criminal penalties. This elevates the importance of compliance and puts contractors on notice that improper handling of records can have personal and organizational consequences.
Agency regulations also govern
Compliance is not limited to the statute itself; applicable agency regulations also apply. Contractors must therefore review and follow the specific privacy rules, procedures, and safeguards issued by the ordering agency.
Notice, not a full compliance manual
This clause is a notification clause, not a complete statement of all Privacy Act obligations. It serves to alert the contractor and support later enforcement of privacy requirements, but the detailed duties come from the statute, agency regulations, and any other contract clauses or security requirements.
Responsibilities
Contracting Officer
Determine whether the acquisition requires the contractor to design, develop, or operate a system of records on individuals for an agency function, and insert the clause when required. Ensure the contractor is notified that the Privacy Act and applicable agency regulations govern the work.
Contractor
Recognize that the contract work involves a Privacy Act-covered system of records and comply with the statute and agency regulations. Protect records appropriately, limit improper use or disclosure, and understand that violations may carry criminal penalties.
Agency
Maintain and apply the agency’s Privacy Act regulations and any related procedures that govern contractor handling of systems of records. Provide the regulatory framework and oversight needed to ensure contractor performance is consistent with Privacy Act requirements.
Practical Implications
This clause is a red flag that privacy compliance must be built into performance from the start, including data handling procedures, access controls, and staff training.
A common pitfall is assuming the clause alone explains all obligations; contractors must also identify and follow the agency’s specific Privacy Act regulations and any related contract clauses.
Contractors should confirm whether the work truly involves a 'system of records' under the Privacy Act, because that determination drives the compliance burden.
Because the clause warns of criminal penalties, mishandling records, unauthorized disclosure, or weak internal controls can create serious legal exposure beyond ordinary contract risk.
Contracting officers should make sure the clause is used only when appropriate and that privacy-related requirements are coordinated with security, records management, and program staff.
Official Regulatory Text
As prescribed in 24.104 , insert the following clause in solicitations and contracts, when the design, development, or operation of a system of records on individuals is required to accomplish an agency function: Privacy Act Notification (Apr 1984) The Contractor will be required to design, develop, or operate a system of records on individuals, to accomplish an agency function subject to the Privacy Act of1974, Public Law93-579, December 31,1974 ( 5 U.S.C. 552a ) and applicable agency regulations. Violation of the Act may involve the imposition of criminal penalties. (End of clause)