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GAO-05-280R 1 (2005-04-29)

handle is hein.gao/gaocrptarhc0001 and id is 1 raw text is: -Ac... ntbIIity * Ilntegrlty Reliability United States Government Accountability Office Washington, DC 20548 April 29, 2005 The Honorable John Warner Chairman The Honorable Carl Levin Ranking Minority Member Committee on Armed Services United States Senate The Honorable Duncan Hunter Chairman The Honorable Ike Skelton Ranking Minority Member Committee on Armed Services House of Representatives Subject: Defense Base Act Insurance: Review Needed of Cost and Implementation Issues Since the Iraq conflict began in March 2003, the Departments of Defense (DOD) and State, the U.S. Agency for International Development, and other federal agencies have issued contracts to perform reconstruction activities in Iraq. The large number of contractors working amid continued violence has raised concerns over the use of contractors to support U.S. military and civilian operations overseas, including the cost of workers' compensation insurance provided to contractor employees in Iraq under the Defense Base Act (DBA).' We have received requests from over 100 members of Congress asking us to review a number of Iraq-related issues, including issues associated with DBA insurance. Because of the level of interest in issues dealing with Iraq, the Comptroller General initiated this review under his statutory authority. The objectives of our review were to identify the cost to the U.S. government of insurance coverage purchased under DBA and to assess the act's implementation. DBA provides disability and medical benefits for contractors' and subcontractors' employees injured on the job and death benefits to survivors when those employees are killed. We are limited at this time in what we can conclude about the cost of DBA insurance. Recent investigations by several states into a number of insurance companies and brokers during the 1 42 U.S.C. 1651-1654. GAO-05-280R Defense Base Act Insurance Page I

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