Defense Base Act Insurance Acquisition Strategy; Questions for Industry and Other Interested Parties, 13197-13199 [E9-6808]

Download as PDF Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices c. Recreational Fishing Data Collection Options d. Status of State of Hawaii Fishing Regulations Review e. Report on State of Hawaii Protected Species Activities f. Allowing Commercial Harvest of Invasive Sardines/Herrings g. Cooperative Research — Report on Bottomfish Tagging Project 6. Upcoming 145th Council Meeting Actions a. Hawaii Offshore Handline Permits and Limited Entry b. Main Hawaiian Islands Bottomfish Stock Assessment Review c. Annual Catch Limits for NonPelagic Species d. Small-scale Traditional Fisheries 7. Other Business 8. Public Comment 9. Discussion and Action Schedule and Agenda for the Hawaii Archipelagic Regional Ecosystem Advisory Committee Meeting 20:28 Mar 25, 2009 Jkt 217001 Special Accomodations These meetings are physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Kitty M. Simonds, (808)522–8220 (voice) or (808)522–8226 (fax), at least 5 days prior to the meeting date. Authority: 16 U.S.C. 1801 et seq. Dated: March 23, 2009. Tracey L. Thompson, Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. E9–6737 Filed 3–25–09; 8:45 am] BILLING CODE 3510–22–S 9:00 a.m. — 4:00 p.m. Friday, April 17, 2009 1. Welcome and Introduction of Members 2. Approval of Draft Agenda 3. Update on Federal Fisheries Management Actions a. Hawaii Offshore Handline Permits and Limited Entry b. FEP amendments on ACLs/ACTs/ AMs c. Defining Small-scale traditional fishing d. Discussion and Recommendation 4. Community Marine Management Forum a. Hawaii’s Living Seascape: A Strategy For A Prosperous Future b. Report on Aha Kiole Final Report and Legislation c. Invasive Species i. Hawaii Invasive Species Council Strategy 2008–2013 ii. Allowing Commercial Harvest of Invasive Sardines/Herrings d. Discussion and Recommendation 5. Coastal Ecosystems a. Marine Education and Training Program Priorities b. Coastal America Program and Projects c. Report on the State’s Recreational Renaissance Plan d. Marine Recreational Information Program Initiatives e. Habitat Initiatives i. Habitat Assessment Improvement Plan ii. Refining Essential Fish Habitat Designations in Hawaii iii. Military Activities to Remove Mangroves 6. Public Comments VerDate Nov<24>2008 7. Discussion and Recommendations The order in which agenda items are addressed may change. Public comment periods will be provided throughout each agenda. The PT, AP and REAC will meet as late as necessary to complete scheduled business. DEPARTMENT OF DEFENSE Defense Acquisition Regulations System Defense Base Act Insurance Acquisition Strategy; Questions for Industry and Other Interested Parties AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Request for public input. SUMMARY: DoD is soliciting information and feedback from defense contractors, insurance industry representatives, and others, on DoD’s requirement to develop a comprehensive acquisition strategy for Defense Base Act insurance that will address provisions of Section 843 of the National Defense Authorization Act for Fiscal Year 2009. Responses must be limited to no more than 20 pages. DATES: Submit written comments to the address shown below on or before April 3, 2009. ADDRESSES: You may submit comments using any of the following methods. Email is the preferred method. Æ E-mail: Teresa.Lawson@osd.mil. Æ Fax: 703–602–7887. Æ Mail: Deputy Director, Defense Procurement and Acquisition Policy (Cost, Price, and Finance), ATTN: Ms. Teresa Lawson, 3062 Defense Pentagon, Washington, DC 20301–3062. Æ Hand Delivery/Courier: Deputy Director, Defense Procurement and Acquisition Policy (Cost, Price, and Finance), ATTN: Ms. Teresa Lawson, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202–3402. PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 13197 FOR FURTHER INFORMATION CONTACT: Ms. Teresa A. Lawson, by telephone at 703– 602–2402, or by e-mail at Teresa.Lawson@osd.mil. SUPPLEMENTARY INFORMATION: DoD is soliciting information and feedback from defense contractors, insurance industry representatives, and others, on DoD’s requirement to develop a comprehensive acquisition strategy for Defense Base Act insurance that will address the following provisions of Section 843 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110–417): The Secretary of Defense shall adopt an acquisition strategy for insurance required by the Defense Base Act (42 U.S.C. 1651 et seq.) which minimizes the cost of such insurance to the Department of Defense and to defense contractors subject to such Act * * * The Secretary shall ensure that the acquisition strategy adopted * * * addresses the following criteria: (1) Minimize overhead costs associated with obtaining such insurance, such as direct or indirect costs for contract management and contract administration. (2) Minimize costs for coverage of such insurance consistent with realistic assumptions regarding the likelihood of incurred claims by contractors of the Department. (3) Provide for a correlation of premiums paid in relation to claims incurred that is modeled on best practices in government and industry for similar kinds of insurance. (4) Provide for a low level of risk to the Department. (5) Provide for a competitive marketplace for insurance required by the Defense Base Act to the maximum extent practicable. * * * In adopting the acquisition strategy * * * the Secretary shall consider such options (including entering into a single Defense Base Act insurance contract) as the Secretary deems to best satisfy the (five aforementioned) criteria * * * 1. Policy Options Under current law and DoD regulations, generally contractors performing work outside the United States are required to have Defense Base Act (DBA) insurance to provide workers’ compensation benefits for employees, unless the requirement has been waived by the Department of Labor (DoL). To meet the requirement of Section 843 of the National Defense Authorization Act for Fiscal Year 2009, DoD is considering all options for its acquisition strategy and welcomes comments highlighting the advantages and disadvantages of any of a nonexclusive set of options, which includes but is not limited to: (1) A single-source contract awarded on a competitive basis issued and administered by DoD; (2) a multiple-award contract awarded on a competitive basis issued and administered by DoD; (3) no change (i.e., contractors are required to obtain E:\FR\FM\26MRN1.SGM 26MRN1 13198 Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices appropriate DBA insurance on their own); (4) Government self-insuring for DBA losses while contracting to the private sector for program administrative and claims processing; (5) Government self-insuring with DoD and DoL employees performing all administrative and claims processing; (6) a GSA schedules-type set of maximum rates, which may include awards based on geographic location of the work to be performed and/or based on the nature of the work to be performed, with competition for each major contract (a vehicle structured similar to state-side workers compensation policies); (7) a prequalified list of DoD-approved DBA carriers and brokers/agents who meet a predetermined set of criteria/ qualifications to provide DBA insurance from which contractors would be required to obtain appropriate DBA coverage; (8) contractors self-insuring either on an individual basis or by pooling of contractors, including information on how a panel/pool participant would avoid adverse selection; or (9) other alternative recommendations not listed above. DoD would appreciate responses to the following questions pertinent to consideration of the various acquisition options: a. Cost Drivers. What are the main cost drivers of DoD’s DBA expense? How can those cost drivers be better controlled or mitigated? b. Main Stakeholders. Identify the main stakeholders in DBA. How should DoD (and DoL or others if applicable) orchestrate communications and involvement to ensure all stakeholder interests are represented? c. Claims Management. How critical are claims management practices to controlling ultimate DBA costs? Drawing on the best practices of claims management (whether currently applied to DBA claims or not), what should be required to address claims promptly, fairly, and efficiently to ensure good service and care and proper treatment for workers serving those who serve our country? d. Technical Exhibits. What claims history or other information should DoD include in its technical exhibits to any solicitation to enhance competition? 2. Additional Questions Regarding Potential Policy Options DoD would appreciate additional specific responses to the following questions citing pros and cons of the various alternatives: a. Single Source DBA Contract. Regarding a potential single source contract (which would be awarded VerDate Nov<24>2008 20:28 Mar 25, 2009 Jkt 217001 based on source selection procedures considering price, technical, management, and past performance criteria), would your insurance company be willing to bid on such a contract? Why or why not? For broker respondents, do you believe one or more insurance companies/brokers would be interested in bidding on a single source contract? Why or why not? Please provide insight into whether one provider could handle all claims associated with DoD’s DBA insurance requirements for contractor performance overseas for U.S. citizens, foreign nationals, and third country nationals. Finally, please provide insight into the market implications of having only one source for DBA insurance for all of DoD. b. Multiple-Award DBA Contract. Please provide your recommendations and rationale regarding the basis for dividing the multiple awards—by geographic location, by type of work performed (e.g., basic logistics support, technical services, security, construction), by military department or defense agency, by war zone versus nonwar-zone, by dollar value of payroll involved and/or dollar amount of contract, to ensure DoD meets the criteria outlined in the National Defense Authorization Act (minimizing direct and indirect overhead costs associated with administering the program, minimizing insurance costs, etc.). Please consider the implications of pooling of like risks (or unlike risks) to minimize insurance costs to DoD. c. Minimum Policy Amounts. Please provide your recommendations and rationale considering the options regarding minimum policy amounts of a single provider or a multiple award contract. If a multiple award contract were divided in part based on dollar value of payrolls/dollar value of contracts, what is the maximum threshold you would recommend be used as the basis for not having a minimum policy amount? Should DoD avoid dividing any multiple award contract based on dollar value to minimize the need for minimum policy amounts? Please keep in mind that DoD aims to not discourage small businesses from performing overseas work for DoD and any minimum policy amounts might inhibit that competition. d. No Change (Contractors procure their own DBA coverage). If the current approach is retained, how can it be modified to be responsive to the five criteria outlined in Section 843 of the National Defense Authorization Act for Fiscal Year 2009? e. Self-Insurance. If DoD elected to directly self-insure contractor DBA losses, what would be the relative pros PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 and cons of contracted administration vs. ‘‘in-house’’ Government administration? Please provide comments regarding the pros and cons of contractors self-insuring either on an individual basis or by pooling of contractors. Recognizing that there are many variations of self-insurance, which do you believe are relevant for DoD to consider and why? 3. Specific Questions for Brokers/ Carriers In addition to the questions above soliciting information from all interested parties, DoD would appreciate additional responses from interested brokers and carriers to the following questions: a. Experience. What is your experience in handling DBA insurance? For example, how many clients, years, and geography of experience, payroll exposure, and premium volume managed? b. Competition. How do you suggest that Government ensure the broadest industry participation in establishing a DBA insurance acquisition strategy given a limited pool of qualified carriers and broker/agents? c. Broker/Agent Role. What is the role of the insurance broker/agent in the open-market DBA insurance procurement process? d. Rating Approach. What is your rating approach in light of the underwriting and service complications of insuring this long-tail catastrophic liability? In the absence of adequate loss history data to rate DBA coverage, what is the rationale/rating methodology you apply? How do you measure a contractor’s risk mitigation/loss reduction results to reward the best performing contractors and minimize costs to the Government? e. Data. Are you willing and able to provide aggregate loss and development information to include medical expenses, lost wages, reserves, adequate medical care/evacuation/infrastructure expenses, administrative costs, and other appropriate support services? Are you willing to provide the rate of return and amounts made on invested insurance premiums? f. Retrospective Plans. Regarding establishing a program with rates that change based on overall program loss experience, what is your experience in structuring loss-sensitive rated DBA programs? Please provide suggestions regarding the potential structures of such retrospective rating plans. g. Term Length. Regarding the length of any contract term for any of the policy options being considered, what term length of a contract would be E:\FR\FM\26MRN1.SGM 26MRN1 Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices reasonable (1, 3, or 5 years)? If more than a one-year term, could retrospective pricing be a reasonable approach based on the profit/loss ratio? h. Subcontractors. Do you recommend that subcontractors obtain their own individual policies, or do you recommend that the prime contractor purchase the insurance for all its subcontractors (at all tiers)? i. DBA Data. Please provide recommendations on how DoD can best collect, analyze, and act on relevant DBA data from various sources to optimize its understanding and tracking of DBA costs and trends and put DoD in the most favorable negotiating position. j. Medical Care. Please provide data and analysis on the costs of finding sources of adequate medical care for countries where the standard of care is insufficient. k. Contracting Entity. If DoD procures DBA coverage (vs. contractors procuring), should DoD be contracting with broker(s) or carrier(s) or some combination of the two? l. Discounts. By including DBA insurance with other insurance coverage, what type of discount is typically obtained on DBA insurance? m. Impact of Safety Record. How does a contractor’s safety record affect insurance rates—does it have a significant impact? How much of a discount is normally offered for a good safety record? n. Maximum Mandated DBA Rates. What is your position on DoD mandating maximum DBA rates based upon job description (classification), geography (e.g., Iraq vs. Germany) and loss experience? What would be your response to having to file your proposed rates with DoD for approval each year, based upon your own individual loss experience and trending? o. WHA Claims. Please provide the percent of DBA claims that are initially believed to be War Hazard Act (WHA) claims. Please provide the percent of initial WHA claims that are later determined by DoL not to be WHA claims. How long on average does it take DoL to settle and reimburse the insurance carrier for WHA claims? Typically, does DoL pay the entire WHA claim amount the carrier submits—if not, what is the average percent? 4. Specific Questions for DoD Contractors In addition to the questions in 1 and 2 above soliciting information from all interested parties, DoD would appreciate additional responses from DoD contractors to the following questions: VerDate Nov<24>2008 20:28 Mar 25, 2009 Jkt 217001 a. Current Practice. How do you acquire your DBA coverage today? Do you purchase insurance or are you an approved self-insurer for this coverage? b. Purchased Insurance. If you purchase your DBA insurance, is it: (a) Acquired through a stand-alone insurance policy; (b) acquired through a multi-line insurance program with DBA coverage separately priced; or (c) acquired through a multi-line insurance program with DBA coverage not separately priced? c. Supplemental Coverage. Do you supplement the standard DBA coverage for employees with medical assistance or additional life or disability coverage? Do you do so: (a) For all DBA covered employees; or (b) only for specific categories of employees? Are the premiums for any such coverage: (a) Paid for in full by the company; (b) paid for in part by the company and in part by the employee; or (c) paid in full by the employee? d. Subcontractors. Do you recommend that subcontractors obtain their own individual policies, or do you recommend that the prime contractor purchase the insurance for all its subcontractors (at all tiers)? e. Discounts. By including DBA insurance with other insurance coverage, what type of discount is typically obtained on DBA insurance? f. Impact of Safety Record. How does a contractor’s safety record affect insurance rates—does it have a significant impact? How much of a discount is normally offered for a good safety record? Michele P. Peterson, Editor, Defense Acquisition Regulations System. [FR Doc. E9–6808 Filed 3–25–09; 8:45 am] BILLING CODE 5001–08–P DEPARTMENT OF EDUCATION Notice of Proposed Information Collection Requests Department of Education. The Director, Information Collection Clearance Division, Regulatory Information Management Services, Office of Management, invites comments on the proposed information collection requests as required by the Paperwork Reduction Act of 1995. DATES: Interested persons are invited to submit comments on or before May 26, 2009. SUPPLEMENTARY INFORMATION: Section 3506 of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires that the Office of Management and AGENCY: SUMMARY: PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 13199 Budget (OMB) provide interested Federal agencies and the public an early opportunity to comment on information collection requests. OMB may amend or waive the requirement for public consultation to the extent that public participation in the approval process would defeat the purpose of the information collection, violate State or Federal law, or substantially interfere with any agency’s ability to perform its statutory obligations. The Director, Regulatory Information Management Services, Office of Management, publishes that notice containing proposed information collection requests prior to submission of these requests to OMB. Each proposed information collection, grouped by office, contains the following: (1) Type of review requested, e.g., new, revision, extension, existing or reinstatement; (2) Title; (3) Summary of the collection; (4) Description of the need for, and proposed use of, the information; (5) Respondents and frequency of collection; and (6) Reporting and/or Recordkeeping burden. OMB invites public comment. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Dated: March 20, 2009. Angela C. Arrington, Director, Information Collections Clearance Division, Regulatory Information Management Services, Office of Management. Office of Postsecondary Education Type of Review: New. Title: IEPS Fulbright-Hays Group Projects Abroad Customer Surveys. Frequency: On Occasion. Affected Public: Individuals or household. Reporting and Recordkeeping Hour Burden: Responses: 1,629. Burden Hours: 723. Abstract: The purpose of this evaluation is to assess the impact of the Group Projects Abroad (GPA) program in enhancing the foreign language capacity of the United States. Three surveys will be conducted: A survey of the GPA Project Directors; a survey of E:\FR\FM\26MRN1.SGM 26MRN1

Agencies

[Federal Register Volume 74, Number 57 (Thursday, March 26, 2009)]
[Notices]
[Pages 13197-13199]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6808]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System


Defense Base Act Insurance Acquisition Strategy; Questions for 
Industry and Other Interested Parties

AGENCY: Defense Acquisition Regulations System, Department of Defense 

(DoD).

ACTION: Request for public input.

-----------------------------------------------------------------------

SUMMARY: DoD is soliciting information and feedback from defense 
contractors, insurance industry representatives, and others, on DoD's 
requirement to develop a comprehensive acquisition strategy for Defense 
Base Act insurance that will address provisions of Section 843 of the 
National Defense Authorization Act for Fiscal Year 2009. Responses must 
be limited to no more than 20 pages.

DATES: Submit written comments to the address shown below on or before 
April 3, 2009.

ADDRESSES: You may submit comments using any of the following methods. 
E-mail is the preferred method.
    [cir] E-mail: Teresa.Lawson@osd.mil.
    [cir] Fax: 703-602-7887.
    [cir] Mail: Deputy Director, Defense Procurement and Acquisition 
Policy (Cost, Price, and Finance), ATTN: Ms. Teresa Lawson, 3062 
Defense Pentagon, Washington, DC 20301-3062.
    [cir] Hand Delivery/Courier: Deputy Director, Defense Procurement 
and Acquisition Policy (Cost, Price, and Finance), ATTN: Ms. Teresa 
Lawson, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.

FOR FURTHER INFORMATION CONTACT: Ms. Teresa A. Lawson, by telephone at 
703-602-2402, or by e-mail at Teresa.Lawson@osd.mil.

SUPPLEMENTARY INFORMATION: DoD is soliciting information and feedback 
from defense contractors, insurance industry representatives, and 
others, on DoD's requirement to develop a comprehensive acquisition 
strategy for Defense Base Act insurance that will address the following 
provisions of Section 843 of the National Defense Authorization Act for 
Fiscal Year 2009 (Pub. L. 110-417):

    The Secretary of Defense shall adopt an acquisition strategy for 
insurance required by the Defense Base Act (42 U.S.C. 1651 et seq.) 
which minimizes the cost of such insurance to the Department of 
Defense and to defense contractors subject to such Act * * * The 
Secretary shall ensure that the acquisition strategy adopted * * * 
addresses the following criteria: (1) Minimize overhead costs 
associated with obtaining such insurance, such as direct or indirect 
costs for contract management and contract administration. (2) 
Minimize costs for coverage of such insurance consistent with 
realistic assumptions regarding the likelihood of incurred claims by 
contractors of the Department. (3) Provide for a correlation of 
premiums paid in relation to claims incurred that is modeled on best 
practices in government and industry for similar kinds of insurance. 
(4) Provide for a low level of risk to the Department. (5) Provide 
for a competitive marketplace for insurance required by the Defense 
Base Act to the maximum extent practicable. * * * In adopting the 
acquisition strategy * * * the Secretary shall consider such options 
(including entering into a single Defense Base Act insurance 
contract) as the Secretary deems to best satisfy the (five 
aforementioned) criteria * * *

1. Policy Options

    Under current law and DoD regulations, generally contractors 
performing work outside the United States are required to have Defense 
Base Act (DBA) insurance to provide workers' compensation benefits for 
employees, unless the requirement has been waived by the Department of 
Labor (DoL). To meet the requirement of Section 843 of the National 
Defense Authorization Act for Fiscal Year 2009, DoD is considering all 
options for its acquisition strategy and welcomes comments highlighting 
the advantages and disadvantages of any of a non-exclusive set of 
options, which includes but is not limited to: (1) A single-source 
contract awarded on a competitive basis issued and administered by DoD; 
(2) a multiple-award contract awarded on a competitive basis issued and 
administered by DoD; (3) no change (i.e., contractors are required to 
obtain

[[Page 13198]]

appropriate DBA insurance on their own); (4) Government self-insuring 
for DBA losses while contracting to the private sector for program 
administrative and claims processing; (5) Government self-insuring with 
DoD and DoL employees performing all administrative and claims 
processing; (6) a GSA schedules-type set of maximum rates, which may 
include awards based on geographic location of the work to be performed 
and/or based on the nature of the work to be performed, with 
competition for each major contract (a vehicle structured similar to 
state-side workers compensation policies); (7) a pre-qualified list of 
DoD-approved DBA carriers and brokers/agents who meet a predetermined 
set of criteria/qualifications to provide DBA insurance from which 
contractors would be required to obtain appropriate DBA coverage; (8) 
contractors self-insuring either on an individual basis or by pooling 
of contractors, including information on how a panel/pool participant 
would avoid adverse selection; or (9) other alternative recommendations 
not listed above.
    DoD would appreciate responses to the following questions pertinent 
to consideration of the various acquisition options:
    a. Cost Drivers. What are the main cost drivers of DoD's DBA 
expense? How can those cost drivers be better controlled or mitigated?
    b. Main Stakeholders. Identify the main stakeholders in DBA. How 
should DoD (and DoL or others if applicable) orchestrate communications 
and involvement to ensure all stakeholder interests are represented?
    c. Claims Management. How critical are claims management practices 
to controlling ultimate DBA costs? Drawing on the best practices of 
claims management (whether currently applied to DBA claims or not), 
what should be required to address claims promptly, fairly, and 
efficiently to ensure good service and care and proper treatment for 
workers serving those who serve our country?
    d. Technical Exhibits. What claims history or other information 
should DoD include in its technical exhibits to any solicitation to 
enhance competition?

2. Additional Questions Regarding Potential Policy Options

    DoD would appreciate additional specific responses to the following 
questions citing pros and cons of the various alternatives:
    a. Single Source DBA Contract. Regarding a potential single source 
contract (which would be awarded based on source selection procedures 
considering price, technical, management, and past performance 
criteria), would your insurance company be willing to bid on such a 
contract? Why or why not? For broker respondents, do you believe one or 
more insurance companies/brokers would be interested in bidding on a 
single source contract? Why or why not? Please provide insight into 
whether one provider could handle all claims associated with DoD's DBA 
insurance requirements for contractor performance overseas for U.S. 
citizens, foreign nationals, and third country nationals. Finally, 
please provide insight into the market implications of having only one 
source for DBA insurance for all of DoD.
    b. Multiple-Award DBA Contract. Please provide your recommendations 
and rationale regarding the basis for dividing the multiple awards--by 
geographic location, by type of work performed (e.g., basic logistics 
support, technical services, security, construction), by military 
department or defense agency, by war zone versus non-war-zone, by 
dollar value of payroll involved and/or dollar amount of contract, to 
ensure DoD meets the criteria outlined in the National Defense 
Authorization Act (minimizing direct and indirect overhead costs 
associated with administering the program, minimizing insurance costs, 
etc.). Please consider the implications of pooling of like risks (or 
unlike risks) to minimize insurance costs to DoD.
    c. Minimum Policy Amounts. Please provide your recommendations and 
rationale considering the options regarding minimum policy amounts of a 
single provider or a multiple award contract. If a multiple award 
contract were divided in part based on dollar value of payrolls/dollar 
value of contracts, what is the maximum threshold you would recommend 
be used as the basis for not having a minimum policy amount? Should DoD 
avoid dividing any multiple award contract based on dollar value to 
minimize the need for minimum policy amounts? Please keep in mind that 
DoD aims to not discourage small businesses from performing overseas 
work for DoD and any minimum policy amounts might inhibit that 
competition.
    d. No Change (Contractors procure their own DBA coverage). If the 
current approach is retained, how can it be modified to be responsive 
to the five criteria outlined in Section 843 of the National Defense 
Authorization Act for Fiscal Year 2009?
    e. Self-Insurance. If DoD elected to directly self-insure 
contractor DBA losses, what would be the relative pros and cons of 
contracted administration vs. ``in-house'' Government administration? 
Please provide comments regarding the pros and cons of contractors 
self-insuring either on an individual basis or by pooling of 
contractors. Recognizing that there are many variations of self-
insurance, which do you believe are relevant for DoD to consider and 
why?

3. Specific Questions for Brokers/Carriers

    In addition to the questions above soliciting information from all 
interested parties, DoD would appreciate additional responses from 
interested brokers and carriers to the following questions:
    a. Experience. What is your experience in handling DBA insurance? 
For example, how many clients, years, and geography of experience, 
payroll exposure, and premium volume managed?
    b. Competition. How do you suggest that Government ensure the 
broadest industry participation in establishing a DBA insurance 
acquisition strategy given a limited pool of qualified carriers and 
broker/agents?
    c. Broker/Agent Role. What is the role of the insurance broker/
agent in the open-market DBA insurance procurement process?
    d. Rating Approach. What is your rating approach in light of the 
underwriting and service complications of insuring this long-tail 
catastrophic liability? In the absence of adequate loss history data to 
rate DBA coverage, what is the rationale/rating methodology you apply? 
How do you measure a contractor's risk mitigation/loss reduction 
results to reward the best performing contractors and minimize costs to 
the Government?
    e. Data. Are you willing and able to provide aggregate loss and 
development information to include medical expenses, lost wages, 
reserves, adequate medical care/evacuation/infrastructure expenses, 
administrative costs, and other appropriate support services? Are you 
willing to provide the rate of return and amounts made on invested 
insurance premiums?
    f. Retrospective Plans. Regarding establishing a program with rates 
that change based on overall program loss experience, what is your 
experience in structuring loss-sensitive rated DBA programs? Please 
provide suggestions regarding the potential structures of such 
retrospective rating plans.
    g. Term Length. Regarding the length of any contract term for any 
of the policy options being considered, what term length of a contract 
would be

[[Page 13199]]

reasonable (1, 3, or 5 years)? If more than a one-year term, could 
retrospective pricing be a reasonable approach based on the profit/loss 
ratio?
    h. Subcontractors. Do you recommend that subcontractors obtain 
their own individual policies, or do you recommend that the prime 
contractor purchase the insurance for all its subcontractors (at all 
tiers)?
    i. DBA Data. Please provide recommendations on how DoD can best 
collect, analyze, and act on relevant DBA data from various sources to 
optimize its understanding and tracking of DBA costs and trends and put 
DoD in the most favorable negotiating position.
    j. Medical Care. Please provide data and analysis on the costs of 
finding sources of adequate medical care for countries where the 
standard of care is insufficient.
    k. Contracting Entity. If DoD procures DBA coverage (vs. 
contractors procuring), should DoD be contracting with broker(s) or 
carrier(s) or some combination of the two?
    l. Discounts. By including DBA insurance with other insurance 
coverage, what type of discount is typically obtained on DBA insurance?
    m. Impact of Safety Record. How does a contractor's safety record 
affect insurance rates--does it have a significant impact? How much of 
a discount is normally offered for a good safety record?
    n. Maximum Mandated DBA Rates. What is your position on DoD 
mandating maximum DBA rates based upon job description 
(classification), geography (e.g., Iraq vs. Germany) and loss 
experience? What would be your response to having to file your proposed 
rates with DoD for approval each year, based upon your own individual 
loss experience and trending?
    o. WHA Claims. Please provide the percent of DBA claims that are 
initially believed to be War Hazard Act (WHA) claims. Please provide 
the percent of initial WHA claims that are later determined by DoL not 
to be WHA claims. How long on average does it take DoL to settle and 
reimburse the insurance carrier for WHA claims? Typically, does DoL pay 
the entire WHA claim amount the carrier submits--if not, what is the 
average percent?

4. Specific Questions for DoD Contractors

    In addition to the questions in 1 and 2 above soliciting 
information from all interested parties, DoD would appreciate 
additional responses from DoD contractors to the following questions:
    a. Current Practice. How do you acquire your DBA coverage today? Do 
you purchase insurance or are you an approved self-insurer for this 
coverage?
    b. Purchased Insurance. If you purchase your DBA insurance, is it: 
(a) Acquired through a stand-alone insurance policy; (b) acquired 
through a multi-line insurance program with DBA coverage separately 
priced; or (c) acquired through a multi-line insurance program with DBA 
coverage not separately priced?
    c. Supplemental Coverage. Do you supplement the standard DBA 
coverage for employees with medical assistance or additional life or 
disability coverage? Do you do so: (a) For all DBA covered employees; 
or (b) only for specific categories of employees? Are the premiums for 
any such coverage: (a) Paid for in full by the company; (b) paid for in 
part by the company and in part by the employee; or (c) paid in full by 
the employee?
    d. Subcontractors. Do you recommend that subcontractors obtain 
their own individual policies, or do you recommend that the prime 
contractor purchase the insurance for all its subcontractors (at all 
tiers)?
    e. Discounts. By including DBA insurance with other insurance 
coverage, what type of discount is typically obtained on DBA insurance?
    f. Impact of Safety Record. How does a contractor's safety record 
affect insurance rates--does it have a significant impact? How much of 
a discount is normally offered for a good safety record?

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
 [FR Doc. E9-6808 Filed 3-25-09; 8:45 am]
BILLING CODE 5001-08-P