Understanding OCONUS Contracts
Geopolitical shifts are driving the need for increased support within OCONUS (Outside of Continental United States) government contracting. New government programs mean more primary and sub-contracted employers will be called upon to support the US military and its operations abroad. Involved in a bid? Here’s what you need to know.
Overseas government contracting is not a new business sector. In fact, civilian companies have supported overseas operations for the US government for several decades. In 1941 the Defense Base Act (DBA) was passed, mandating health cover for workers on military bases outside of Outside of Continental United States (OCONUS).
In 1941 the Defense Base Act (DBA) was passed, mandating health cover for workers on military bases outside of Outside of Continental United States (OCONUS).1
Since then the DBA has been amended and expanded to include mandatory coverage for just about all non-military projects and other enterprises involving United States national security. Today, almost any contract for work outside the US, whether military in nature or not, with an agency of the US government, likely requires DBA coverage.
Non-military support required by DBA
The need for OCONUS coverage has fluctuated, due to political changes around the world. The current United States administration has increased military spending to support operations overseas.2 The resulting boon will provide a tremendous opportunity for a variety of industries, all of which will need to provide suitable health benefit coverage for their contracted civilian employees working overseas.
Understanding OCONUS bidding requirements
In 2019, the US Army will launch a new series of Logistics Civilian Augmentation Programs (LOGCAP) contracts for contingency support. This increased defense spending means more employers will be called upon for overseas contracts.
The 2019 Logistics Civilian Augmentation Programs (LOGCAP) contract involves over 1000 subcontractors and an anticipated nearly $82 billion of contracts.3
Health care coverage is a critical component of contracts being awarded. Before bidding there are some key questions to ask your insurer/health services company to ensure they’ll meet the contract needs.
Have you been awarded a contract?
Federal contracting is highly regulated, and providing group benefits to federal contractors may seem challenging. Benefit programs need to reflect the realities of different parts of the world and help to mitigate the distinct risks into which expatriate employees are deployed.
As a result, DBA standards may present gaps in coverage that Cigna can work with you to resolve, ensuring comprehensive benefits coverage for contracted workers, minimal disruptions and enhanced peace of mind.
Why Cigna can help, and what we provide?
With more than 25 years’ experience supporting overseas government contractors, and the carrier of choice to over 250 OCONUS contractors, Cigna is uniquely qualified to provide regionally relevant and compliant benefit solutions for contracted employees positioned around the world.4
Cigna has strong familiarity with US Military standards. We ‘speak the language’, meaning delivery of services and information when you need it. For those putting together bids or managing contracts, the key benefits are:
Cigna offers contractors comprehensive resources to support physical and mental health and well being. Our employee assistance programs (EAP) and wellness programs are embedded as part of our unique proposition and designed to support our customers to help them remain well – and working, with the goal of minimizing costly assignment disruptions.
For assistance with bids, or more information on how Cigna can support your OCONUS contract, contact us.
1 Congressional Research Service June 2, 2010. The Defense Base Act : The Federally Mandated Workers’ Compensation System for Overseas Government Contractors. Retrieved from https://www.everycrsreport.com/reports/RL34670.html
2 Center for Strategic and International Studies January 31, 2019. What to Look for in the FY 2020 Defense Budget Request. Retrieved from https://www.csis.org/analysis/what-look-fy-2020-defense-budget-request
3 Professional Overseas Contractors, LLC April 12, 2019. Contract Award: U.S. Army has chosen 4 companies for the $82 billion LOGCAP V global logistics contract. Retrieved from https://www.your-poc.com/contract-award-u-s-army-has-chosen-4-companies-for-the-82-billion-logcap-v-global-logistics-contract/
4 IV Figures based on analysis of CGHB book of business as of January 2018, subject to change.
5 Average response time based on internal data June 2019 Cigna Global Underwriting and Actuarial. Some exclusions may apply.
Cigna Global Health Benefits® products and services are offered by Cigna Health and Life Insurance Company or its affiliates and contracted companies. Products and services may not be available in all jurisdictions and are expressly excluded where prohibited by applicable law. All group health insurance policies and health benefit plans contain exclusions and limitations. For costs and details of coverage, contact a Cigna representative.
While studying or teaching abroad, students, faculty and staff will take on new and exciting experiences that will enrich their journey. They may find themselves learning a new language and culture. They may also find themselves adapting to a new medical system and accessing care.
Take a look at these myth-busting insights to help you get a better idea into the holiday season and stay healthy.
Whether you wish to speak to our sales team or get general help if you are already a Cigna Healthcare member, we’ll get you to the right information.
Contact Information© 2025 Cigna Healthcare. All rights reserved.
*Please note, this is a representation of the benefits available and does not contain the terms, conditions, and exclusions specific to each benefit. The benefits may be subject to change. Some benefits may be part of an optional module. Please see the Customer Guide for full details.
This website is provided by Cigna European Services (UK) Limited, a company incorporated in England and Wales having its registered address at 13th Floor, 5 Aldermanbury Square, London EC2V 7HR and registered number 00199739. The Cigna Healthcare name, logo and other Cigna Healthcare marks are owned by Cigna Intellectual Property, Inc., licensed for use by The Cigna Group and its operating subsidiaries.