52.228-3
Workers’ Compensation Insurance (Defense Base Act)
Contractors must secure and maintain Defense Base Act workers’ compensation insurance, promptly report injuries, and comply with all Department of Labor requirements for covered employees.
Overview
FAR 52.228-3 requires contractors performing work subject to the Defense Base Act (DBA) to secure and maintain workers’ compensation insurance or qualify as a self-insurer for covered employees. The clause mandates strict compliance with the Longshore and Harbor Workers’ Compensation Act (LHWCA) as extended by the DBA, including timely reporting, payment, and documentation of employee injuries, illnesses, or deaths. Contractors must also flow down these requirements to applicable subcontractors.
Key Rules
- Insurance Requirement
- Contractors must secure workers’ compensation insurance or qualify as a self-insurer before starting contract performance and maintain coverage throughout the contract period.
- Timely Reporting
- Injuries or deaths must be reported to the Department of Labor within 10 days using Form LS-202.
- Compensation Payments
- All compensation for disability or death must be paid within the timeframes specified by the LHWCA.
- Medical Care
- Contractors must provide medical care as required by the LHWCA.
- Controversion and Payment Notices
- If disputing compensation, submit Form LS-207; upon first payment, submit Form LS-206; and upon suspension or final payment, submit Form LS-208 to the Department of Labor.
- Subcontractor Flowdown
- The clause must be included in all subcontracts subject to the DBA.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable contracts and subcontracts.
- Contractors: Obtain and maintain required insurance, comply with all reporting and payment requirements, and flow down the clause to subcontractors.
- Agencies: Oversee contractor compliance and ensure proper clause implementation.
Practical Implications
- This clause ensures that employees working on overseas government contracts are protected by workers’ compensation insurance.
- Failure to comply can result in penalties, contract disputes, or loss of contract.
- Contractors must be diligent in timely reporting, documentation, and communication with the Department of Labor.