DBA Minimum Earned Premium

Started by DOECPA · May 28, 2020 · 1 replies

  1. D

    DOECPA

    May 28, 2020 · 6y ago

    Original post

    Can anyone tell me if the "Minimum Earned Premium" for DBA Insurance is an allowable cost on a Cost Contract.  Example - Policy based on Estimated Payroll of $20 Million.  Premium of $2M based on 10% DBA Rate.  Minimum Earned Premium based on 50% or $1 Million.  Actual Payroll $7.5M.  Can Contractor Invoice for DBA coverage on the $2.5M Shortfall or adjust the DBA Rate to make up the difference.  Does anyone know where this is explained in DCAA Audit Manual or elsewhere

    Thank You

  2. N

    Neil Roberts

    May 28, 2020 · 6y ago

    ASBCA case 59557, https://www.asbca.mil/Decisions/2015/59557 Kellogg Brown & Root Services, Inc. 1.22.15.pdf

    Not exactly on point with "minimum earned premium" but discussion therein regarding DBA premiums based on estimated payroll and whether subject to retroactive adjustment based on actual payroll.

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