The rise of DPAS rated orders and how to handle them

By Skyler Handl, Corporate Counsel, Public Sector

Your marketing strategy may focus on one thing, but the government’s increasing application of the Defense Production Act may have other plans for you. If your government business has a manufacturing component, it’s important to be able to navigate this legislation.

The COVID-19 pandemic and ensuing supply chain shortages have put a spotlight on Defense Production Act (DPA) 15 C.F.R. Part 700.  Enacted in 1950, this post World War II era legislation grants the U.S. government authority to jump to the front of the line in acquiring goods or services required to meet national defense requirements and promote “emergency preparedness.” The Department of Defense issues approximately 300,000 DPAS (Defense Priorities and Allocation Systems) rated orders annually. While traditionally used for military and national security acquisitions, the DPA recently made national news for its use by the U.S. government to acquire personal protective equipment (PPE) and baby formula. It has even been invoked as a possible way to get gas and oil prices under control.