DBA Insurance Rate Agreement

The purpose of this award is to enter into a rate agreement (unfunded contract) in which the contractor, hereafter referred to as the Insurer, will be the source of Workers’ Compensation Insurance as required by the Defense Base Act (DBA) for all Department of State (DoS) awarded contracts. Defense Base Act (42 U.S.C. 1651 “DBA”) requires federal contractors and subcontractors working outside the continental United States to provide the equivalent of workers’ compensation insurance to their employees. The U.S. Government reimburses DBA insurance carriers for claims paid in connection with injuries or deaths from war hazards as defined and covered by the War Hazards Compensation Act. According to the Federal Acquisition Regulation (FAR 28.305), contracting officers must include DBA (workers’ compensation) insurance in each contract approved or financed under the Foreign Assistance Act of 1961, as amended (Public Law 87-195) unless the Secretary of Labor approves a waiver of coverage.