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  • Question

    Does the law mandate that contractor's have DBA before contract award? And is this a good enough reason to terminate?


    Answer

    The provision allowing a company to go without DBA insurance for up to 14 days after award seems to be improper and in violation of the FAR.  FAR 52.228-3 requires a contractor to take actions before commencing performance- see the highlighted area below. 
     
     
    FAR  52.228-3 Workers’ Compensation Insurance (Defense Base Act).
     
    As prescribed in 28.309 <https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%2028_3.html#wp1078833> (a), insert the following clause:
     
    Workers’ Compensation Insurance (Defense Base Act) (Jul 2014)
     
    (a) The Contractor shall
     
    (1) Before commencing performance under this contract, establish provisions to provide for the payment of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors, by purchasing workers’ compensation insurance or qualifying as a self-insurer under the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 932 <http://uscode.house.gov/> ) as extended by the Defense Base Act (42 U.S.C. 1651 <http://uscode.house.gov/> , et seq.), and continue to maintain provisions to provide such Defense Base Act benefits until contract performance is completed;.......
     
    Yes, not having DBA insurance is both a breach of contract and a labor law violation. A termination for default/cause  may be warranted.  Please consult with your legal counsel.
     


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