R--Request for Information Regarding U.S. Army Corps of Engineers (USACE) Centrally-Managed Defense Base Act (DBA) Insurance Program

The U.S. Army Corps of Engineers (USACE) is requesting information from industry on the future of the current Defense Base Act (DBA) Insurance Program ID/IQ Contract with USACE. Under the current USACE contract, all USACE contracts and subcontracts involving overseas performance are required by law to provide overseas employees with insurance coverage pursuant to the Longshoremens and Harbor Workers Compensation Act/Defense Base Act or DBA. The current program is centrally managed by a single insurance company and its broker unless a waiver has been obtained from the U.S. Department of Labor. The current contractor deals directly with the contractors requiring DBA insurance for payment arrangements and resolution of issues. Reimbursement of DBA insurance is made under the appropriate contract. USACE is canvassing industry to gain assured availability and affordability of coverage. USACE has come to realize that the market may have changed as the insurance carriers have gained more knowledge of the risks associated with being in the war zones and as knowledge of the requirement for DBA Insurance has improved. At its inception, the centrally managed program appears to have resulted in lower premiums than the open market, especially for the small business concerns. DOD-wide DBA premium information for FY 2009 reveals that the open market rates are lower than the USACE single-provider contract rates, computed on a weighted average basis. However, USACE has concerns that open market rates for DBA Insurance may not be conducive for small businesses. Additionally, the current single-provider program does not require a minimum premium. USACE would like to ask Industry to respond to this request for information by answering the following: a. A brief statement as to thoughts of USACE getting out of the insurance business. Is it a good idea to continue a Centrally-Managed Program with a single source provider? b. Are carriers still charging minimum premiums in the current market? If so, how much are they charging? c. How would your rates be affected by small businesses that perform overseas? d. Would industry be interested in competing should USACE decide to issue another solicitation for a single source provider of DBA Insurance? e. Would industry (contractors requiring DBA insurance) have interest in participating in the single-provider program if participation were optional? Responses should be sent to Susan Stewart, either via email at [email protected] or mail to U.S. Army Corps of Engineers, Humphreys Engineer Center Support Activity (HECSA), Contracting Office, ATTN: Susan M. Stewart, 7701 Telegraph Road, Alexandria, VA 22315. Responses must be received not later than 1400 hrs, local time on 16 July 2010.