[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR728.305-70]



[Page 37-38]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 728_BONDS AND INSURANCE--Table of Contents

 

                         Subpart 728.3_Insurance

 

Sec. 728.305-70  Overseas worker's compensation and war-hazard insurance--waivers 

and USAID insurance coverage.





    (a) Upon the recommendation of the USAID Administrator, the 

Secretary of Labor may waive the applicability of the Defense Base Act 

(DBA) with respect to any contract, subcontract, or subordinate 

contract, work location, or classification of employees. Either the 

contractor or USAID can request a waiver from coverage. Such a waiver 

can apply to any employees who are not U.S. citizens, not residents of, 

or not hired in the United States. Waivers requested by the contractor 

are submitted to the contracting officer for approval and further 

submission to the Department of Labor, which grants the waiver. 

Application for a waiver is submitted on Labor Department Form BEC 565. 

USAID has a number of blanket waivers already in effect for certain 

countries that are applicable to its direct contracts with contractors 

performing in such countries. Where such waivers are granted from 

coverage under the DBA, the waiver is conditioned on providing other 

worker's compensation coverage to employees to which the waiver applies. 

Usually this takes the form of securing worker's compensation coverage 

of the country where work will be performed



[[Page 38]]



or of the country of the employee's nationality, whichever offers 

greater benefits. The Department of Labor has granted partial blanket 

waivers of DBA coverage applicable to USAID-financed contracts performed 

in certain countries, subject to two conditions:

    (1) Employees hired in the United States by the contractor, and 

citizens or residents of the United States are to be provided DBA 

insurance coverage;

    (2) Waived employees (i.e., employees who are neither U.S. citizens 

nor U.S. resident aliens, and who were hired outside the United States) 

will be provided worker's compensation benefits as required by the laws 

of the country in which they are working or the laws of their native 

country, whichever offers greater benefits. Information as to whether a 

DBA Waiver has been obtained by USAID for a particular country may be 

obtained from the cognizant USAID contracting officer.

    (b) To assist contractors in securing insurance at minimal rates for 

the workmen's compensation insurance required under the DBA, and to 

facilitate meeting insurance requirements for such coverage, USAID, 

after open and competitive negotiation, has entered into a contract with 

an insurance carrier to provide such coverage at a specified rate. The 

terms of this contract require the insurance carrier to provide 

coverage, and the contractor to make payments to and handle its claims 

with that insurance carrier. Contracting officers are responsible for 

explaining and advising contractors of the details of securing such 

insurance.



[49 FR 13249, Apr. 3, 1984, as amended at 52 FR 4144, Feb. 10, 1987. 

Redesignated at 53 FR 50630, Dec. 16, 1988, and amended at 54 FR 16122, 

Apr. 21, 1989; 56 FR 67224, Dec. 30, 1991]