Attachment_10_DBA_AAPD_12_01.pdf

Acquisition & Assistance Policy Directive (AAPD)

From the Director, Office of Acquisition & Assistance Issued: Nov. 1, 2011

AAPD 12-01

Defense Base Act (DBA) Insurance for 2010-2015

Subject Category: Acquisition Management*

Type: POLICY

AAPDs provide information of significance to all agency personnel and partners involved in the Acquisition and Assistance process. Information includes (but is not limited to): advance notification of changes in acquisition or assistance regulations; reminders; procedures; and general information. Also, AAPDs may be used to implement new requirements on short-notice, pending formal amendment of acquisition or assistance regulations.

AAPDs are EFFECTIVE AS OF THE ISSUED DATE unless otherwise noted in the guidance below; the directives remain in effect until this office issues a notice of cancellation.

This AAPD: Is New Replaces/ Amends CIB/AAPD No: 07-04

Applicable to:

Existing awards; Modification required

No later than

As noted in guidance below*

RFPs/RFAs issued on or after the effective date of this AAPD; all other Pending Awards, i.e., 8(a), sole source, IQC

Other *Applies to assistance as stated in the Purpose Section of the AAPD

Precedes change to:

AIDAR Part(s) Appendix

USAID Automated Directives System (ADS) Chapter

Code of Federal Regulations

Other

No change to regulations

New Provision/Clause Provided Herein: If checked, scheduled update to GLAAS:

_____________/s/ ________________ Aman S. Djahanbani

PURPOSE: The purpose of this directive is to provide Defense Base Act (DBA) rates and contact information in accordance with USAID’s contract with Allied World Assurance Company (AWAC).

BACKGROUND: Insurance coverage is mandatory for all contractor and subcontractor employees performing work outside of the United States. USAID contractors and subcontractors must possess this 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.

Assistance awardees are not required to purchase DBA insurance coverage for their own overseas employees. However, pursuant to Appendix A of 22 CFR 226, contracts under assistance that require performance outside the United States must contain a provision requiring each contractor and subcontractor to purchase DBA insurance coverage for its overseas employees. If assistance awardees elect to purchase DBA insurance coverage, they are permitted to use the AWAC rates listed below. Costs for such insurance are an allowable expense.

Answers to general Frequently Asked Questions about DBA insurance may be found on the Department of Labor’s website at http://www.dol.gov/owcp/dlhwc/dbafaqs.htm. Agency guidance concerning DBA insurance requirements is found in ADS 302.3.5.8 and its mandatory reference. In accordance with ADS 302, updated information concerning USAID’s DBA insurance contract and rates are provided through AAPDs.

GUIDANCE: Pursuant to ADS 302.3.5.8, this AAPD announces that USAID executed a contract for DBA insurance with AWAC. Policies written under the prior contract with Fidelity and Casualty of New York will continue in force until their expiration. The rates in this AAPD were effective March 1, 2010.

Below find the applicable rates and contact information for DBA coverage under the AWAC contract:

A. RATES

There are three different rates, depending on the nature of the services provided. If a contract contains more than one of the services listed below, the premium will be distributed proportionally to the amount of overseas employee remuneration estimated for each category.

Contract Year Period of

Performance Services Construction Security

Guards Base Period 3/1/10 – 2/29/12 $2.00 $4.50 $7.50 Option 1 3/1/12 – 2/28/13 $2.00 $4.50 $7.50 Option 2 3/1/13 – 2/28/14 $2.00 $4.50 $7.50 Option 3 3/1/14 – 2/28/15 $2.00 $4.50 $7.50

The rates are per $100 of contractors’ overseas employee remuneration.

“Overseas employee remuneration” means the salary of an employee eligible for DBA coverage earned overseas and includes

Overseas recruitment incentive, Post differential, and Danger pay, But excludes

Per diem, Housing allowance, Travel expenses, Temporary quarters allowance, Education allowance, and Any other miscellaneous post allowances

Any changes in the amount of remuneration paid during the term of the policy will result in corresponding changes to the amount of the premium.

B. OBTAINING DBA COVERAGE

Contractors must apply for coverage directly to AON Risk Insurance Services Inc., the agent for AWAC DBA Insurance, at one of the following offices:

(1) AON Risk Insurance Services West, Inc.

199 Fremont St., Suite 1400 San Francisco, CA 94105

Hours: 8:30 A.M. to 5:00 PM, Pacific Time

Primary Contact: Fred Robinson Phone: (415) 486-7516 Fax: (415) 486-7059 Email: Fred.Robinson@aon.com

Secondary Contact: Angela Falcone Phone: (415) 486-7000 Email: Angela.Falcone@aon.com

OR

(2) AON Risk Insurance Services East, Inc.

1120 20th St., N.W., Suite 600 Washington D.C. 20036

Hours: 8:30 A.M. to 4:00 P.M., Eastern Time

Primary Contact: Ellen Rowan

Phone: (202) 862-5306 Fax: (202) 429-8530

Email: Ellen.Rowan@aon.com

Secondary Contact: Chris Thompson Phone: (202) 862-5302 Email: Chris.Thompson@aon.com

Applicants request coverage by completing Attachment I, “Application for Defense Base Act Insurance.” Submit a faxed copy to either AON office or e-mail an executed application to usaiddbains@aon.com.

C. FORMS/REPORTS

Copies of Department of Labor (DOL) Forms LS 201 and LS 202 to make an initial report of death, injury, or illness are available at http://www.dol.gov/owcp/dlhwc/lsforms.htm/.

D. NOTICE OF EXCLUSION OF MEDICAL EVACUATION COVERAGE

Pursuant to AIDAR 752.228-70, medical evacuation insurance is a separate insurance requirement for overseas performance of USAID contracts and the Defense Base Act insurance addressed herein does not provide coverage for medical evacuation.

E. WAIVERS FOR THIRD COUNTRY AND LOCAL NATIONALS

Attachment I identifies the USAID DBA Waiver List for Third Country Nationals (TCNs) and Cooperating Country Nationals (CCNs).

POINT OF CONTACT:

Name: Barry Cohen, M/OAA/E Phone: (202) 567-4629 Email: bcohen@usaid.gov

ATTACHMENTS:

I. “Application for Defense Base Act Coverage,” which includes the USAID DBA Waiver List.

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