Sec. 896. Pilot program for adoption of acquisition strategy for Defense Base Act insurance
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The Secretary of Defense shall establish a pilot program for the United States Army Corps of Engineers (USACE) for purposes of adopting an acquisition strategy for insurance required by the Defense Base Act ( 42 U.S.C. 1651 et seq.) in order to minimize the cost of such insurance to the Department of Defense. The pilot program acquisition strategy developed pursuant to subsection
(a)shall address the following criteria: Minimize overhead costs associated with obtaining insurance required by the Defense Base Act, such as direct or indirect costs for contract management and contract administration. Minimize costs for coverage of such insurance consistent with realistic assumptions regarding the likelihood of incurred claims by contractors of the Department and USACE. 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. Provide for a competitive marketplace for insurance required by the Defense Base Act to the maximum extent practicable. In adopting the pilot program acquisition strategy pursuant to subsection (a), the Secretary shall enter into a single Defense Base Act insurance contract for USACE for contracts involving performance in all theaters, and potentially including combat operations. The contract shall extend to all categories of insurance coverage, including construction, aviation, security, and services contracts. The contract entered into under this subsection shall be in effect for at least 3 years, or as considered appropriate by the Secretary. Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the pilot program and the acquisition strategy adopted pursuant to subsection (a). The report required under paragraph
(1)shall include— a discussion of each of the options considered and the extent to which each option addresses the criteria identified under subsection (b); and a plan to implement within 18 months after the date of enactment of this Act the acquisition strategy adopted by the Secretary. The Secretary shall review the pilot program and may renew the program, provided that the objectives have been reached.
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Sec. 896
Pilot program for adoption of acquisition strategy for Defense Base Act insurance
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