This brings up a big question of Government contracts with private companies in general.
Michael Hiltzik:
Big Data Broker Eyes DMV Records
It's axiomatic that to get ahead in business, you have to possess a quality known through the ages as moxie or chutzpah. No one would ever accuse ChoicePoint Inc. of having that quality in short supply.
ChoicePoint is the Georgia-based data broker that has fessed up to having divulged the personal records of at least 162,000 individuals to a gang of Los Angeles identity thieves. Following its initial public disclosure of the breach in February, the company tried to portray itself as the victim in the case, even though its own sloppy procedures led to the information release and the real risk of financial loss was borne by the innocent people whose credit ratings and privacy had been compromised. (A Nigerian national who cadged the data from ChoicePoint, apparently with ridiculous ease, later pleaded guilty to criminal charges.)
snip
ChoicePoint says it requested the DMV records for a client, the U.S. Department of Homeland Security. That suggests it may ask the state to waive the normal fee of 10 cents per record, or about $3 million. By state law, government agencies can access DMV records for free.
But the money is a secondary consideration. The primary issue for the DMV has to be this: Given ChoicePoint's history, should it be allowed anywhere near our motor vehicle records?
snip
The company's handling of motor vehicle records hasn't inspired confidence, either. In 2000, Pennsylvania terminated ChoicePoint's access to its drivers' license records and fined the company nearly $1.4 million because some records had been sold to unauthorized purchasers. ChoicePoint, characteristically, blamed one of its own customers for violating its rules. Pennsylvania authorities reinstated the contract a year later, with stringent conditions, because the company so dominated the business of providing motorist data to insurance companies that the insurers could barely function without it.
snip
Its real purpose in seeking the records remains murky. ChoicePoint refused to discuss its negotiations, other than to confirm that its client is the Department of Homeland Security. Staff members there were unable to identify the relevant contract for me. Then ChoicePoint, which holds about $50 million in contracts from a wide range of federal agencies, acknowledged that although Homeland Security was seeking the California records, it wasn't actually the contracting agency. Instead, it was utilizing an umbrella contract through which ChoicePoint services something called FedLink. This seems to be an information access program for the government, operated by the Library of Congress.
Wohlford wouldn't agree to my request for an interview. People in the know say that she is as determined a guardian of DMV records as you could wish for, so it's possible that these discussions are in firm hands.
http://www.latimes.com/business/la-fi-golden1dec01,1,5636035.column?coll=la-headlines-business