---
kind: "section"
citation: "42 U.S.C. § 1655"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1655"
heading: "Requirement for Department of Defense to adopt an acquisition strategy for Defense Base Act insurance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1655"
units:
  - "Chapter 11 — Compensation for Disability or Death to Persons Employed at Military, Air, and Naval Bases Outside United States"
---

# §1655. Requirement for Department of Defense to adopt an acquisition strategy for Defense Base Act insurance

- (a) **In general—** The [Secretary](/usc/42/242q–4.md?p=2) of Defense shall adopt an acquisition strategy for insurance required by the Defense Base Act ([42 U.S.C. 1651](/usc/42/1651.md) et seq.) which minimizes the cost of such insurance to the Department of Defense and to defense contractors subject to such Act.
- (b) **Criteria—** The [Secretary](/usc/42/242q–4.md?p=2) shall ensure that the acquisition strategy adopted pursuant to [subsection (a)](#a) addresses the following criteria:
  - (1) Minimize overhead costs associated with obtaining such insurance, such as direct or indirect costs for contract management and contract administration.
  - (2) Minimize costs for coverage of such insurance consistent with realistic assumptions regarding the likelihood of incurred claims by contractors of the Department.
  - (3) Provide for a correlation of premiums paid in relation to claims incurred that is modeled on best [practices](/usc/42/17061.md?p=19) in government 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 [[42 U.S.C. 1651](/usc/42/1651.md) et seq.] to the maximum extent practicable.
- (c) **Options—** In adopting the acquisition strategy pursuant to [subsection (a)](#a), the [Secretary](/usc/42/242q–4.md?p=2) shall consider such options (including entering into a single Defense Base Act insurance contract) as the [Secretary](/usc/42/242q–4.md?p=2) deems to best satisfy the criteria identified under [subsection (b)](#b).
- (d) **Report—**
  - (1) Not later than 270 days after October 14, 2008, the [Secretary](/usc/42/242q–4.md?p=2) shall submit to the Committees on Armed Services of the Senate and the House 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)](#a).
  - (2) The report shall include a discussion of each of the options considered pursuant to [subsection (c)](#c) and the extent to which each option addresses the criteria identified under [subsection (b)](#b), and shall include a plan to implement within 18 months after October 14, 2008, the acquisition strategy adopted by the [Secretary](/usc/42/242q–4.md?p=2).
- (e) **Review of acquisition strategy—** As considered appropriate by the [Secretary](/usc/42/242q–4.md?p=2), but not less often than once every 3 years, the [Secretary](/usc/42/242q–4.md?p=2) shall review and, as necessary, update the acquisition strategy adopted pursuant to [subsection (a)](#a) to ensure that it best addresses the criteria identified under [subsection (b)](#b).

## Source credit

(Pub. L. 110–417, [div. A], title VIII, § 843, Oct. 14, 2008, 122 Stat. 4540.)

## Notes

### Editorial Notes

### References in Text

The Defense Base Act, referred to in section catchline and subsecs. (a) to (c), is act Aug. 16, 1941, ch. 357, 55 Stat. 622, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1651 of this title and Tables.

### Codification

Section was enacted as part of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009, and not as part of the Defense Base Act which comprises this chapter.

### Statutory Notes and Related Subsidiaries

### Change of Name

Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023.