This report provides an overview of the Defense Base Act (DBA) and the systems used to provide DBA insurance at the Department of State (DOS), the U.S. Agency for International Development (USAID), the Department of Defense (DOD), and the U.S. Army Corps of Engineers (USACE). Also included are criticisms of the current DOD DBA policy raised by GAO and Army auditors as well as responses to those criticisms by DOD and USACE. The report concludes with a discussion of several DBA reform options suggested by the House of Representatives in recent legislation and analyzed by DOD.