Northwest Aerospace News June | July Issue No. 15 | Page 55
PACIFIC NORTHWEST DEFENSE COALITION SPOTLIGHT
The DPA also enables the U.S. government to allocate
the production of goods and services among designated
users, whether the U.S. government or other federal
contractors. Finally, the DPA gives the U.S. government
the power to commandeer factories to expand or channel
production of needed supplies, to take land or other property,
to fix prices and wages, to resolve or end labor disputes,
and to take over any other necessary aspects of the
civilian economy to meet national defense requirements.
Many PNDC members already know one aspect of the
DPA – the Defense Priorities and Allocations System
(DPAS). The Defense Contract Management Agency
(DCMA) summarizes DPAS this way:
The purpose of DPAS is to assure the
timely availability of industrial resources
to meet current national defense
and emergency preparedness
program requirements and to provide
an operating system to support rapid
industrial response in a national emergency.
The [DPA] authorized the President
to require preferential treatment
of national defense programs. Executive
Order 12919 put Department of
Commerce in charge of program. 15
CFR 700 provides rules for DPAS program.
DoD 4400.1-M provides guidance
for DoD activities.
Under DPAS, only the Secretary of Defense can give a
“DX” rating, the highest priority for fulfillment. A “DO”
contract is the next lower priority in DPAS.
On April 2, President Trump issued two memoranda to
the U.S. Secretary of Health and Human Services and
the U.S. Secretary of Homeland Security. One memo
declared that PPE and ventilators are essential commodities
under the DPA and directed those two Cabinet officials
to use their delegated DPA authority to facilitate
the production of such items by General Electric Company;
Hill-Rom Holdings, Inc.; Medtronic Public Limited
Company; ResMed Inc.; Royal Philips N.V.; and Vyaire
Medical, Inc. The second memo covered N95 respirators
and named the 3M Company.
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JUNE | JULY 2020 ISSUE NO. 15 55