12 2 STA T .45 4 0PUBLIC LA W 110 – 41 7—O CT. 14 , 200 8SEC.843 . R E QUI RE M E NTFO R D E PA RTMENT OF DEFENSE TO ADOPT AN ACQUISITION STRATE GY FOR DEFENSE B ASE ACT INSURANCE. (a)INGE NE RAL.—TheS e cr e t ar yofD efe ns e sha l la d o p tan ac qui sition strate g y for insurance required b y the Defense B ase A ct( 42U .S. C . 165 1 et seq.) w hich m inimi z es the cost of such insurance to the Department of Defense and to defense contractors sub j ect to such Act. (b) CR IT ERIA.—The Secretary shall ensure that the acquisition strategy adopted pursuant to subsection (a) addresses the following criteria
(1) M inimize o v erhead costs associated with obtaining such insurance , such as direct or indirect costs for contract manage - ment and contract administration. (2) Minimize costs for coverage of such insurance consistent with realistic assumptions regarding the li k elihood of incurred claims by contractors of the Department. ( 3 ) P rovide for a correlation of premiums paid in relation to claims incurred that is modeled on best practices in govern- ment and industry for similar kinds of insurance. (4) Provide for a low level of risk to the Department. (5) Provide for a competitive marketplace for insurance required by the Defense Base Act to the ma x imum extent practicable. (c) OP TI O N S .—In adopting the acquisition strategy pursuant to subsection (a), the Secretary shall consider such options (including entering into a single Defense Base Act insurance con- tract) as the Secretary deems to best satisfy the criteria identified under subsection (b). (d) R EPORT.—(1) N ot later than 2 70 days after the date of enactment of this Act, the Secretary shall submit to the Committees on Armed Services of the Senate and the H ouse of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Oversight and Government Reform of the House of Representatives a report on the acquisition strategy adopted pursuant to subsection (a). (2) The report shall include a discussion of each of the options considered pursuant to subsection (c) and the extent to which each option addresses the criteria identified under subsection (b), and shall include a plan to implement within 1 8 months after the date of enactment of this Act the acquisition strategy adopted by the Secretary. (e) RE V IE W O F A CQU ISITION STRATE GY .—As considered appro- priate by the Secretary, but not less often than once every 3 years, the Secretary shall review and, as necessary, update the acquisition strategy adopted pursuant to subsection (a) to ensure that it best addresses the criteria identified under subsection (b). SEC. 844. REPORT ON USE OF OFF - S H ORE SUBSIDIARIES BY DEFENSE CONTRACTORS. (a) REPORT REQUIRE D .—Not later than one year after the date of the enactment of this Act, the Comptroller General shall provide a report to the Committees on Armed Services of the Senate and the House of Representatives on the use of off-shore subsidiaries by contractors of the Department of Defense. (b) MATTERS COVERED.—The report shall comprehensively examine the rationale, implications, and costs and benefits for both Deadlin e .
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