AAPD 22-01 Defense Base Act (DBA) Insurance: This AAPD replaces AAPD 17-05
Subject: Acuisition
I. Purpose: This AAPD provides Defense Base Act (DBA) insurance rates and contact information for USAID’s DBA insurance carrier. AAPD 22-01 was originally issued on June 10, 2022; this Revision 1 clarifies “Note 1” below regarding the calculation of the DBA rates,
with no other changes to the AAPD content or policy.
In addition, this AAPD contains information and guidance regarding AIDAR 752.228-3, (“Worker’s Compensation Insurance (Defense Base Act)”), which has been revised through a class deviation. The full text of the deviated AIDAR 752.228-3 clause can be found in Attachment 1 . Use of this deviated AIDAR clause is authorized through the approval of Class Deviation No. M-OAA-DEV-AIDAR-22-10c.
Historically, in addition to AIDAR 752.228-3, contracts contained a separate “Defense Base Act Insurance” clause, found in Section H of contracts, with the specific rates and contact information for USAID’s DBA insurance carrier. The purpose of this deviated AIDAR 752.228-3 clause is to simplify the process by directing contractors to USAID’s website for this information, removing the need for individual contracts to specify those details. This also eliminates the need for multiple future contract modifications to address any changes in the rates or contact information for USAID’s DBA insurance carrier.
This AAPD is effective as of June 10, 2022 and continues in effect until June 09, 2024 unless rescinded earlier.
II. Required Actions: For existing contracts that include AIDAR 752.228-3, as prescribed in AIDAR 728.309, Contracting Officers (COs) must modify each affected contract to:
Remove any references to specific rates or contact information for any DBA insurance carrier. For example, if there is a “Defense Base Act Insurance” clause in Section H of the contract that details rates and contact information, this clause should be removed from the contract.
Replace AIDAR 752.228-3 with the deviated AIDAR 752.228-3 clause.
COs may make these changes when next modifying affected contracts; however, COs must modify all affected contracts no later than October 31, 2022 .
Attachment 2 contains sample language that COs may adapt for these contract modifications.
For new contracts, COs must ensure those contracts are awarded with the deviated AIDAR 752.228-3 clause, as prescribed in AIDAR 728.309, with no references to any specific rates or contact information for any DBA insurance carrier.
For new solicitations, COs must ensure those solicitations are issued with the deviated AIDAR 752.228-3 clause, as prescribed in AIDAR 728.309, with no references to any specific rates or contact information for any DBA insurance carrier.
III. Background: DBA insurance is worker’s compensation coverage for employees in the event they are injured while working on a contract financed by the U. S. Government performed outside the United States. DBA coverage also pays benefits to dependents of employees in the event that an employee is killed as a direct result of the employee's employment under a contract financed by the U.S. Government. DBA coverage is required by statute (see 42 U.S.C. 1651, et seq.) for employees of contractors and subcontractors, regardless of the duration of their assignment. Subcontractors under USAID-financed contracts must also obtain coverage. USAID contractors and subcontractors must possess DBA coverage before their employees arrive in country and commence work on the contract. Contractors and subcontractors must maintain the insurance coverage until covered employees complete their overseas performance under the contract.
Issued Date: June 10, 2022
