Defense Priorities and Allocations System Program   [open pdf - 208KB]

Under Title I of the Defense Production Act of 1950, as amended (DPA), the President is authorized to require preferential acceptance and performance of contracts or orders supporting certain approved national defense and energy programs, and to allocate materials, services, and facilities in such a manner as to promote these approved programs. Additional priorities authority to require prompt delivery of articles and materials for the exclusive use of the U.S. armed forces is found in Section 18 of the Selective Service Act of 1948, in 10 U.S.C. 2538, and in 50 U.S.C. 82. The DPA priorities and allocations authority has also been extended to support emergency preparedness activities under Title VI of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. On June 11, 1998, in consideration of numerous comments from industry and government users, termination of the controlled materials (steel, copper, aluminum, and nickel alloys) program, and to make the DPAS more effective and efficient in the post-Cold War era, we published in the Federal Register (63 FR 31918) a revision of the DPAS to update, modify, and clarify a number of its provisions. Changes include removing the controlled materials rules, extending the time for a supplier to accept or reject a rated order, simplifying the rules for combining rated and unrated orders, clarifying the rules for determining the precedence of conflicting rated orders of equal priority after acceptance of these orders, increasing the minimum rated order dollar amount, and various technical and administrative adjustments. The purpose of the DPAS remains unchanged: (1) to assure the timely availability of industrial resources to meet current national defense and emergency preparedness program requirements; and (2) to provide an operating system to support rapid industrial response in a national emergency. In pursuing these goals, we attempt to minimize disruptions to normal commercial activities. In view of our shrinking domestic defense industrial base, the growing commercialization of defense procurement, the increasing use of dual use products and technologies and just-in-time production and inventory techniques, the consequences of catastrophic natural, accidental, or man-caused disaster events upon our civilian population, and the ongoing requirement for our Nation to maintain a strong defense preparedness and military readiness capability, the DPAS will continue to be a key element of our national security and civil emergency preparedness.

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