Audit of USAID’s Defense Base Act Insurance Program

USAID's Office of Acquisition and Assistance evaluate cost-effective alternatives to the present system of administering and complying with the Defense Base Act insurance program, including the option to self-insure with congressional approval, and document the results.

USAID's Office of Acquisition and Assistance modify its follow-on contract with the selected Defense Base Act insurance provider to place adjustable limits on the amount of overseas employee remuneration used to determine premiums, so that remuneration does not exceed current Department of Labor benefit levels.

USAID's Office of Acquisition and Assistance evaluate and document with USAID management whether to transfer responsibilities for Defense Base Act insurance management to another division within the Office or to a more appropriate USAID Office with expertise in matters related to workers' compensation insurance.

USAID's Office of Acquisition and Assistance issue written guidance to its contracting officers to increase oversight of its contractors and of implementing partners that purchase DBA insurance, including obtaining before contract closeout a copy of the insurance provider's final invoice showing adjusted premium amounts.

USAID's Office of Acquisition and Assistance determine the allowability of $6,586,427 in ineligible questioned costs arising from Defense Base Act insurance premium refunds issued to USAID contracting organizations and recover from them any amounts determined to be unallowable.