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  • Question

    Does DBA insurance apply to contracts on the African continent? The vendor base usually consists of African vendors and European vendors with the occasional US vendor quoting.


    Answer

    In a word, “Yes” it does apply to contracts on the African continent.
     
    Rationale: see the definition of a “Public Work” contract at FAR 28.305(a), which is fairly encompassing of all of our service contracts awarded overseas and/or for work overseas.  The exceptions are found at FAR 28.305(b)(i) and (ii); and those are quite limited in their scope. Guidance for how to apply DBA to your contracts/BPAs can be found at FAR 28.309(a) and DFARS 228.305 (along with PGI 228.305) if the 414 CSB is considering a waiver.
     
    There are a number of excellent resources at your disposal which discuss DBA requirements, they are:
     
    a) http://www.acq.osd.mil/dpap/cpic/cp/defense_base_act_insurance.html - this will also provide you with a listing of the 17 countries where an existing waiver is in place (note: none are on the African Continent).
     
    b) http://www.dol.gov/owcp/dlhwc/lsdba.htm - This is the DOL homepage for DBA related issues, including FAQs.
     
    c) http://www.acq.osd.mil/dpap/ccap/cc/jcchb/index.html - The Defense Contingency Contracting Handbook.  Go to Chapter 5, or go to briefings under the Training tab.
     
    Finally:  If using the uniform contract format, the clause (52.228-3) goes in section I.  Although the FAR matrix says the clause may be incorporated by reference, we don’t recommend it, besides the clause is very short compared to others.  If using the commercial contract format you will notice that 52.228-3 is not one of those listed in 52.212-5 or 52.212-3.  Depending on how your contract writing system works, we suggest following the guidance at FAR 12.303(c)(2) an addendum to 52.212-4, pointing this out to all potential offerors.  We also encourage you to seek a legal opinion regarding your approach and inclusion of DBA in your solicitations and contracts and BPAs.

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