Overview
This section establishes the legal basis for the Defense Priorities and Allocations System (DPAS), identifying the President’s authority under the Defense Production Act of 1950 to prioritize specific contracts for national defense and energy programs.
Key Rules
- Preferential Treatment: The government is authorized to require contractors to accept and perform certain contracts preferentially over other orders to support national security.
- Allocation Authority: The President may allocate materials, services, and facilities as necessary to promote approved national programs.
- Delegation of Authority: Under Executive Order 12919, the Secretary of Commerce is tasked with the administration of the DPAS.
- Regulatory Oversight: Detailed guidance and resources for DPAS compliance are maintained by the Department of Commerce, Bureau of Industry and Security (BIS).
Practical Implications
- Contractors must prioritize DPAS-rated orders (DX or DO ratings) over non-rated commercial or government orders, even if it results in delays to other projects.
- Government personnel must ensure that solicitations and contracts for eligible programs include the proper DPAS ratings to guarantee timely resource allocation in the supply chain.