AID Needs Clarification on Defense Base Act Insurance Requirements

ID-81-8 Published: Oct 30, 1980. Publicly Released: Oct 30, 1980.

Highlights

A review was undertaken of the insurance requirements of the Defense Base Act (DBA) as they relate to Agency for International Development (AID) contractors working overseas. DBA was enacted in order to extend workers' compensation protection to employees of Government contractors working at overseas defense bases. As a result, AID requires DBA insurance for employees working overseas, including: (1) those under AID direct contracts; (2) those under contracts between host governments and third parties financed by AID loans; and (3) those under contracts between AID grantees and third parties.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
U.S. Agency for International Development	The Administrator of AID should exercise the option specified in section 1(a)(5) of the act by requesting that the Secretary of Labor bring individual development loans under the DBA requirements.	Closed Please call 202/512-6100 for additional information.
U.S. Agency for International Development	The Administrator of AID should contingently plan for inclusion of contracts under development loans in the appropriate blanket contract should you decide to request that these loans be brought under DBA.	Closed Please call 202/512-6100 for additional information.
U.S. Agency for International Development	The Administrator of AID should (1) ensure that DBA coverage is available to all affected contractors at the lowest possible cost and (2) proceed with work towad a blanket contract for DBA coverage on host country contracts.	Closed Please call 202/512-6100 for additional information.
Department of Labor	The Secretary of Labor should direct appropriate Labor officials to: (1) formalize Labor's position concerning DBA requirements; (2) prepare either broad agency guidelines or a written statement of Labor's opinions on when DBA requirements should be extended to overseas Government contracts; and (3) disseminate the guidelines or statements to all agencies which Labor believes to be affected by DBA.	Closed Please call 202/512-6100 for additional information.

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