DBA Insurance Rate Agreement

The Department of State Office of Acquisition Management is conducting market research through a Request for Information (RFI) to explore innovative approaches for structuring Defense Base Act (DBA) insurance coverage for U.S. Government contractors operating overseas. The agency seeks responses from insurance companies with direct authority and financial capacity to guarantee rates and bind coverage, explicitly excluding brokers and intermediaries. Key objectives include understanding how the insurance industry allocates risk, incentivizes efficiency, and balances pricing stability with long-term sustainability. The RFI poses ten substantive questions addressing alternative pricing models, risk-sharing mechanisms such as profit sharing and rebates, claims handling integration, data reporting requirements, and contract terms supporting long-term relationships. Responses are due by 5:00 PM EST on March 6, 2026, submitted to shadeal@state.gov, and this RFI does not constitute a solicitation or commitment to award a contract.

This is market research only with no set-aside designation, and no specific award value or incumbent contractor information is disclosed in the notice. The sample solicitation Statement of Work provided for reference details a no-cost fixed-rate contract structure covering three employee categories (Services, Construction, and Security) priced per $100 of employee salary, with a base period of two years followed by three one-year option periods. The contract structure includes scenario-based rate adjustments tied to loss ratio thresholds of 32 percent, 37 percent, and 42 percent, excludes War Hazard Compensation Act losses from adjustments, and prohibits minimum premiums. The contract mandates that rates not be loaded for war risk hazards and requires subcontractor coverage provisions, with the Department of State protected by a hold harmless clause from third-party claims.