[Federal Register Volume 78, Number 54 (Wednesday, March 20, 2013)]
[Proposed Rules]
[Pages 17176-17178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06325]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAR Case 2012-016; Docket 2012-0016; Sequence 1]
RIN 9000-AM50


Federal Acquisition Regulation; Defense Base Act

AGENCIES:  Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to clarify contractor and subcontractor 
responsibilities to obtain workers' compensation insurance or to 
qualify as a self-insurer, and other requirements, under the terms of 
the Longshore and Harbor Workers' Compensation Act as extended by the 
Defense Base Act.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addressees shown below on or 
before May 20, 2013 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAR Case 2012-016 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2012-016.'' Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2012-016.'' Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2012-016'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th 
Floor, Washington, DC 20417.
    Instructions: Please submit comments only and cite FAR Case 2012-
016, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Mr. Edward N. Chambers, Procurement

[[Page 17177]]

Analyst, at 202-501-3221, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAR Case 2012-016.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are proposing to revise the FAR to clarify 
contractor and subcontractor responsibilities to obtain workers' 
compensation insurance or to qualify as a self-insurer, and other 
requirements, under the terms of the Longshore and Harbor Workers' 
Compensation Act as extended by the Defense Base Act.

II. Discussion and Analysis

    The Defense Base Act of 1941, codified at 42 U.S.C. 1651, et seq., 
extended the federal workers' compensation protections provided by the 
Longshore and Harbor Workers' Compensation Act (LHWCA) (33 U.S.C. 901, 
et seq.) to the following employment outside of the United States: Work 
for private employers on United States military bases, generally; work 
on public work contracts--where ``public work'' is not limited to 
construction, but includes service contracts--with a United States 
Government agency; work on contracts approved and funded by the U.S. 
under the Foreign Assistance Act; and work for American employers 
providing welfare or similar services for the benefit of the Armed 
Services, e.g., the United Service Organizations (USO). It is intended 
to provide disability compensation and medical benefits to covered 
employees for work-related injuries, and death benefits to eligible 
survivors of employees whose deaths are work-related. Recent experience 
and anticipated contingency contracting efforts require the 
clarification of the responsibilities of contractors and subcontractors 
under the LHWCA to purchase workers' compensation insurance or to 
qualify as a self-insurer; to submit a timely, written report to the 
Department of Labor (DOL) in the event of an employee's injury or 
death; to make timely payment of all compensation due for disability or 
death, and to submit a timely, written report of such payment to the 
DOL; and to adhere to all other provisions of the Longshore and Harbor 
Workers' Compensation Act, as extended by the Defense Base Act.
    Therefore, this action proposes to revise FAR clause 52.228-3, 
Workers Compensation Insurance (Defense Base Act) to clarify the 
responsibilities of contractors under the Defense Base Act, including 
the requirement to include flow down of this clause to all 
subcontractors to which the Defense Base Act applies.
    This rule reflects statutory and DOL requirements, and does not 
impose additional burdens beyond those requirements.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this proposed rule to have a 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., because the revisions to FAR clause 52.228-3, Workers' 
Compensation Insurance (Defense Base Act), merely clarify the existing 
requirements set forth in the Defense Base Act of 1941 (DBA), codified 
at 42 U.S.C. 1651, et seq.
    However, an initial regulatory flexibility analysis (IRFA) has been 
prepared consistent with 5 U.S.C. 603, and is summarized as follows:

    This rule amends the Federal Acquisition Regulation (FAR) to 
clarify contractor and subcontractor responsibilities to obtain 
workers' compensation insurance or to qualify as a self-insurer, and 
other requirements, under the terms of the Longshore and Harbor 
Workers' Compensation Act as extended by the Defense Base Act.
    The objective of the rule is to amend FAR clause 52.228-3, 
Workers' Compensation Insurance (Defense Base Act) to clarify the 
responsibilities of contractors under the Defense Base Act, 
including the requirement to include flow down of this clause to all 
subcontractors to which the Defense Base Act applies.
    DoD, NASA and GSA do not expect this proposed rule to have a 
significant economic impact on a substantial number of small 
entities within the meaning of the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq., because the revisions to FAR clause 52.228-3, 
Workers' Compensation Insurance (Defense Base Act), merely clarify 
the existing requirements set forth in the Defense Base Act of 1941 
(DBA), codified at 42 U.S.C. Sec.  1651, et seq.
    The proposed rule imposes no reporting, recordkeeping, or other 
information collection requirements than what are already required 
to be reported to the Department of Labor as per the Defense Base 
Act. The rule does not duplicate, overlap, or conflict with any 
other Federal rules. There are no known significant alternatives to 
the rule.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, 
and NASA invite comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by this 
proposed rule in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610 (FAR case 
2012-016) in correspondence.

V. Paperwork Reduction Act

    The proposed rule does not contain any new information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: March 14, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Therefore, DoD, GSA, and NASA propose amending 48 CFR part 52 as 
set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

0
2. Revise section 52.228-3 to read as follows:


52.228-3  Workers Compensation Insurance (Defense Base Act).

    As prescribed in 28.309(a), insert the following clause:

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Workers' Compensation Insurance (Defense Base Act) (Mar 2013)

    (a) The Contractor shall--
    (1) Before commencing performance under this contract, establish 
provisions to provide for the payment of disability compensation and 
medical benefits to covered employees and death benefits to their 
eligible survivors, by purchasing workers' compensation insurance or 
qualifying as a self-insurer under the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 932) as extended by the Defense Base Act 
(42 U.S.C. 1651, et seq.), and continue to maintain provisions to 
provide such Defense Base Act benefits until contract performance is 
completed;
    (2) Within ten days of an employee's injury or death or from the 
date the Contractor has knowledge of the injury or death, submit 
Form LS-202 (Employee's First Report of Injury or Occupational 
Illness) to the Department of Labor in accordance with the Longshore 
and Harbor Workers' Compensation Act (33 U.S.C. 930(a), 20 CFR 
702.201 to 702.203);
    (3) Pay all compensation due for disability or death within the 
time frames required by the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 914, 20 CFR 702.231 and 703.232);
    (4) Provide for medical care as required by the Longshore and 
Harbor Workers' Compensation Act (33 U.S.C. 907, 20 CFR 702.402 and 
702.419);
    (5) If controverting the right to compensation, submit Form LS-
207 (Notice of Controversion of Right to Compensation) to the 
Department of Labor in accordance with the Longshore and Harbor 
Workers' Compensation Act (33 U.S.C. 914(d), 20 CFR 702.251);
    (6) Immediately upon making the first payment of compensation in 
any case, submit Form LS-206 (Payment Of Compensation Without Award) 
to the Department of Labor in accordance with the Longshore and 
Harbor Workers' Compensation Act (33 U.S.C. 914(c), 20 CFR 702.234);
    (7) When payments are suspended or when making the final 
payment, submit Form LS-208 (Notice of Final Payment or Suspension 
of Compensation Payments) to the Department of Labor in accordance 
with the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 
914(c) and (g), 20 CFR 702.234 and 702.235); and
    (8) Adhere to all other provisions of the Longshore and Harbor 
Workers' Compensation Act as extended by the Defense Base Act, and 
Department of Labor regulations at 20 CFR Parts 701 to 704.
    (b) The actions set forth under paragraphs (a)(2) through (a)(8) 
may be performed by the contractor's agent or insurance carrier.
    (c) For additional information on the Longshore and Harbor 
Workers' Compensation Act requirements see http://www.dol.gov/owcp/dlhwc/lsdba.htm.
    (d) The Contractor shall insert the substance of this clause, 
including this paragraph (d) in all subcontracts to which the 
Defense Base Act applies.


(End of clause)

[FR Doc. 2013-06325 Filed 3-19-13; 8:45 am]
BILLING CODE 6820-EP-P