Overview
This section prescribes the specific contract clauses contracting officers must use to ensure proper workers' compensation coverage for employees performing government work outside the United States.
Key Rules
- Clause 52.228-3 (Defense Base Act): Must be included in solicitations and contracts for public-work projects performed outside the U.S. or those funded under the Foreign Assistance Act of 1961 (unless specifically excluded).
- Clause 52.228-4 (Worker’s Compensation and War-Hazard Insurance Overseas): Must be used for overseas public-work contracts only when the Secretary of Labor has granted a waiver for the Defense Base Act requirements.
- Applicability Trigger: The requirement is primarily driven by the performance location (outside the U.S.) and the nature of the work (public-work or specific legislative funding).
Practical Implications
- Contractors must account for the high cost of Defense Base Act (DBA) insurance in their proposals for international work unless a formal waiver is confirmed.
- Contracting officers must perform due diligence on the geographic location and funding source of a project to ensure the correct liability protection is legally mandated in the solicitation.