SEC. 2. REQUIREMENT FOR USE OF GOVERNMENT SELF-IN-
SURANCE PROGRAM FOR INSURANCE UNDER 
DEFENSE BASE ACT. 
Section 1 of the Defense Base Act (42 U.S.C. 1651) 
is amended by adding at the end the following new sub-
section: 
‘‘(g) TRANSITION
TO GOVERNMENT SELF-INSUR-
ANCE PROGRAM.— 
‘‘(1) IN
GENERAL.—On the effective date of 
this subsection, the requirements in paragraphs (1) 
through (6) of subsection (a) imposed on contractors 
to secure the payment of compensation and other 
benefits under the provisions of this Act and to 
maintain in full force and effect such security for 
the payment of such compensation and benefits 
shall, for injuries sustained after such effective date, 
be satisfied through the Government Defense Base 
Act self-insurance program. 
‘‘(2) GOVERNMENT DEFENSE BASE ACT SELF- 
INSURANCE PROGRAM DEFINED.—In this subsection, 
the term ‘Government Defense Base Act self-insur-
ance program’ means a self-insurance program de-
veloped in the implementation strategy required by 
section 3 of the Defense Base Act Insurance Im-
provement Act of 2012 and under which— 
VerDate Mar 15 2010 
23:19 Jun 06, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5891.IH
H5891
srobinson on DSK4SPTVN1PROD with BILLS
‘‘(A) compensation and benefits for inju-
ries sustained are satisfied directly by the Gov-
ernment, without action of the contractor (or 
subcontractor or subordinate contractor with 
respect to such contractor); and 
‘‘(B) compensation and benefits are funded 
by the agencies whose contracts are affected. 
‘‘(3) EFFECTIVE DATE.—The effective date of 
this subsection is the date occurring one year after 
the date of the enactment of the Defense Base Act 
Insurance Improvement Act of 2012.’’. 
SEC. 3. IMPLEMENTATION STRATEGY FOR GOVERNMENT 
DEFENSE BASE ACT SELF-INSURANCE PRO-
GRAM. 
(a) REQUIREMENT.—The Secretary of Defense and 
the Secretary of Labor shall jointly develop and execute 
an implementation strategy for a self-insurance program 
for insurance required by the Defense Base Act (42 
U.S.C. 1651 et seq.). 
(b) MATTERS COVERED.—The implementation strat-
egy required under subsection (a) shall address and pro-
vide a plan for the following: 
(1) Appropriate administration of the self-insur-
ance program, including appropriate program fi-
nancing. 
VerDate Mar 15 2010 
23:19 Jun 06, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5891.IH
H5891
srobinson on DSK4SPTVN1PROD with BILLS
(2) Appropriate procedures for claims proc-
essing, claims adjudication, and benefits delivery, 
taking into consideration the unique circumstances 
of insuring overseas contractors. 
(3) A timeline and strategy to transfer existing 
claims covered under the Defense Base Act (42 
U.S.C. 1651 et seq.) and the War Hazards Com-
pensation Act (42 U.S.C. 1701 et seq.) by private 
carriers to a Government self-insurance program. 
(4) Recommendations for any additional statu-
tory revisions necessary to carry out the strategy. 
(c) REPORT AND DEADLINE.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense and the Secretary of Labor shall jointly 
prepare and submit to the appropriate congressional com-
mittees a report on the implementation strategy. 
SEC. 4. REPORT. 
(a) REPORT REQUIREMENT.—Not later than 2 years 
after the date of the enactment of this Act, the Secretary 
of Defense and the Secretary of Labor shall jointly pre-
pare a report on the implementation of this Act and the 
amendment made by this Act. 
(b) MATTERS COVERED.—The report shall cover, at 
a minimum, the following with respect to the Government 
VerDate Mar 15 2010 
23:19 Jun 06, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5891.IH
H5891
srobinson on DSK4SPTVN1PROD with BILLS