[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR28.305]

[Page 545-546]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 28_BONDS AND INSURANCE--Table of Contents
 
                         Subpart 28.3_Insurance
 
Sec.  28.305  Overseas workers' compensation and war-hazard insurance.

    (a) Public-work contract, as used in this subpart, means any 
contract for a fixed improvement or for any other project, fixed or not, 
for the public use

[[Page 546]]

of the United States or its allies, involving construction, alteration, 
removal, or repair, including projects or operations under service 
contracts and projects in connection with the national defense or with 
war activities, dredging, harbor improvements, dams, roadways, and 
housing, as well as preparatory and ancillary work in connection 
therewith at the site or on the project.
    (b) The Defense Base Act (42 U.S.C. 1651 et seq.) extends the 
Longshoremen's and Harbor Workers' Compensation Act (33 U.S.C. 901) to 
various classes of employees working outside the United States, 
including those engaged in performing--
    (1) Public-work contracts; or
    (2) Contracts approved or financed under the Foreign Assistance Act 
of 1961 (Pub. L. 87-195) other than (i) contracts approved or financed 
by the Development Loan Fund (unless the Secretary of Labor, acting upon 
the recommendation of a department or agency, determines that such 
contracts should be covered) or (ii) contracts exclusively for materials 
or supplies.
    (c) When the Defense Base Act applies (see 42 U.S.C. 1651 et seq.) 
to these employees, the benefits of the Longshoremen's and Harbor 
Workers' Compensation Act are extended through operation of the War 
Hazards Compensation Act (42 U.S.C. 1701 et seq.) to protect the 
employees against the risk of war hazards (injury, death, capture, or 
detention). When, by means of an insurance policy or a self-insurance 
program, the contractor provides the workers' compensation coverage 
required by the Defense Base Act, the contractor's employees 
automatically receive war-hazard risk protection.
    (d) When the agency head recommends a waiver to the Secretary of 
Labor, the Secretary may waive the applicability of the Defense Base Act 
to any contract, subcontract, work location, or classification of 
employees.
    (e) If the Defense Base Act is waived for some or all of the 
contractor's employees, the benefits of the War Hazards Compensation Act 
are automatically waived with respect to those employees for whom the 
Defense Base Act is waived. For those employees, the contractor shall 
provide workers' compensation coverage against the risk of work injury 
or death and assume liability toward the employees and their 
beneficiaries for war-hazard injury, death, capture, or detention. The 
contract shall provide either that the costs of this liability or the 
reasonable costs of insurance against this liability shall be allowed as 
a cost under the contract.