DBA Insurance Rate Agreement

The Department of State Office of Acquisition Management seeks to establish an unfunded rate agreement for Defense Base Act workers' compensation insurance covering all Department of State-awarded contracts with overseas employee performance, with proposals due September 30, 2026. This is a new award (no incumbent) structured as a fixed-rate contract under FAR Part 12, Commercial Services.

Place of performance is Washington, DC. The insurer must be licensed in a U.S. state or the District of Columbia and appear on the Department of Labor's approved DBA carriers list. The contract spans a two-year base period plus three one-year option periods, with pricing structured per $100 of employee salary across three labor categories (Services, Construction, Security) and four State Department travel advisory risk levels (Levels 1–4). Rates adjust based on cumulative loss ratio thresholds: rates decrease if loss ratios remain below 32% through Option Period 1 (measured February 16, 2025), below 37% for Option Period 2, and below 42% for Option Period 3. No minimum premiums are permitted, and broker commissions and processing fees must be included in quoted rates.

The insurer must handle all DBA claims with reasonable standard of care, timely acknowledge and investigate claims per LHWCA/DBA procedures, contest meritless claims, and submit quarterly and annual plain English reports detailing premiums, claims, losses, loss ratios, and war hazard claims within 20 days of each reporting period. Indemnification provisions require the insurer to cover costs of negligent or improper claim handling, failure to contest claims, and inaccurate War Hazards Compensation Act reimbursement submissions.

Technical evaluation is pass/fail, assessing corporate capabilities and DBA claims management experience (limited to 5 single-spaced pages). Award will be made to the lowest-cost offeror receiving a passing technical rating. NAICS 522220, PSC G006. Amendment 004 (effective August 18, 2026) extended the deadline to September 30 at 1:00 PM ET; amendment acknowledgment is required prior to submission or offers risk rejection.