Overview
This section prescribes the mandatory inclusion of FAR clause 52.234-1 in federal contracts to address the use and management of industrial resources developed under the Defense Production Act (DPA).
Key Rules
- Mandatory Insertion: Contracting Officers must insert the clause at FAR 52.234-1 in all applicable solicitations and contracts.
- Scope of Applicability: The requirement applies to all contracts for:
- Major systems; and
- Items of supply.
- Regulatory Focus: The clause specifically concerns industrial resources developed under Title III of the Defense Production Act, which aims to create, maintain, or expand domestic industrial capacity for national defense.
Practical Implications
- Compliance Requirement: Contractors involved in large-scale system acquisitions or supply chains must be prepared to prioritize and utilize domestic industrial resources as incentivized by the DPA.
- Supply Chain Management: This ensures that the government can track and leverage specific manufacturing capabilities or materials that were funded to reduce foreign reliance or mitigate critical shortages.