Supporting National SecuritySupporting National Security

TACOM APBITACOM APBI

Liam McMenaminLiam McMenaminSenior Staff OfficerSenior Staff Officer

Office of Strategic Industries and Economic SecurityOffice of Strategic Industries and Economic SecurityBureau of Industry and SecurityBureau of Industry and SecurityU.S. Department of CommerceU.S. Department of Commerce

www.bis.doc.gov/osies

Commerce RoleCommerce RoleDefense Priorities and Allocations Defense Priorities and Allocations

System (DPAS)System (DPAS)TACOM APBITACOM APBI

October 27, 2005October 27, 2005

Liam McMenaminLiam McMenaminSenior Staff OfficerSenior Staff Officer

Defense Priorities and Defense Priorities and Allocations System Allocations System

(DPAS)(DPAS)RegulationsRegulations

(15 CFR 700)(15 CFR 700)

DPAS ObjectivesDPAS Objectives

Keep Current Defense And Emergency Keep Current Defense And Emergency Preparedness Programs On SchedulePreparedness Programs On Schedule

Provide System For Rapid Industrial Provide System For Rapid Industrial Response (Acceleration / Expansion) In Response (Acceleration / Expansion) In A National EmergencyA National Emergency

Minimize Disruption To Normal Minimize Disruption To Normal Company Commercial ActivitiesCompany Commercial Activities

DPAS Legal AuthorityDPAS Legal Authority Defense Production Act of 1950Defense Production Act of 1950

• Acceptance And Priority Performance On Rated Acceptance And Priority Performance On Rated Contracts And OrdersContracts And Orders

• Allocation Of Materials, Services, And Facilities Allocation Of Materials, Services, And Facilities Essential To The National Defense Essential To The National Defense

Stafford Act (1994 revision)Stafford Act (1994 revision)• Priorities Authority Is Used For “Hazards”Priorities Authority Is Used For “Hazards”

Catastrophic Natural DisasterCatastrophic Natural Disaster Man-Caused (Terrorism) EventMan-Caused (Terrorism) Event DO-N1 Priority Rating DO-N1 Priority Rating

Commerce Delegation of DPA (Title I) Priorities Commerce Delegation of DPA (Title I) Priorities

and Allocations Authority forand Allocations Authority for Industrial ResourcesIndustrial Resources

CONGRESS Defense Production Act of 1950

Selective Service Act of 1948

PRESIDENTE.O. 12919E.O. 12742

DEPARTMENT OF COMMERCEDefense Priorities and Allocations System

DPAS

DELEGATE AGECIES MEMORANDA OF UNDERSTANDING

DEFENSE Defense Programs

ENERGYAtomic Energy

Programs

HOMELAND SECURITYCivil Emergency

Preparedness andResponse

GENERAL SERVICESADMINISTRATION

Federal SupplyProgram

AGRICULTUREFood

Farm Equipment

ENERGYPetroleum/GasProducts and

Equipment

INTERIOR/USGSMineral Facilities

and Materials(suspended)

CANADAPriorities andAllocations

Support

Responding to a “Rated Order”Responding to a “Rated Order”Industry ActionsIndustry Actions

Mandatory Acceptance Of Rated OrdersMandatory Acceptance Of Rated Orders• Except As Provided By The RulesExcept As Provided By The Rules

Preferential Scheduling Of Rated OrdersPreferential Scheduling Of Rated Orders• Timely Delivery To CustomersTimely Delivery To Customers

Mandatory Extension Of Priority RatingsMandatory Extension Of Priority Ratings• Timely Delivery From Vendors And SuppliersTimely Delivery From Vendors And Suppliers

DPASDPAS In The Current Environment In The Current Environment DOD Applies DPAS To 750,000 Contract Actions DOD Applies DPAS To 750,000 Contract Actions

AnnuallyAnnually

DPAS Is Used To Make Sure American Men And DPAS Is Used To Make Sure American Men And Women Stay Safe And PreparedWomen Stay Safe And Prepared

Apply Priority Rating – Insurance PolicyApply Priority Rating – Insurance Policy

Give Field Commanders Critical Items And Tools Give Field Commanders Critical Items And Tools Necessary To Do Their JobsNecessary To Do Their Jobs

DPAS Responds to the 21st Century DPAS Responds to the 21st Century ChallengesChallenges

Shrinking / Globalizing Defense Industrial Shrinking / Globalizing Defense Industrial BaseBase

DOD Commercial (COTS) Sourcing Initiatives DOD Commercial (COTS) Sourcing Initiatives And Dual-Use ProductsAnd Dual-Use Products

Supports Industry’s Just-In-Time Production Supports Industry’s Just-In-Time Production And Delivery PracticesAnd Delivery Practices

Special Priorities AssistanceSpecial Priorities AssistanceProgram Manager ActionsProgram Manager Actions

Investigate Assumptions and Facts to Investigate Assumptions and Facts to Determine Possible RemediesDetermine Possible Remedies

Coordinate With Affected partiesCoordinate With Affected parties

Negotiate An Acceptable SolutionNegotiate An Acceptable Solution

Special Priorities AssistanceSpecial Priorities AssistanceOfficial ActionsOfficial Actions

Directive – Order Requiring Supplier To Directive – Order Requiring Supplier To Deliver Or Take Other Action Within A Deliver Or Take Other Action Within A Specified Time FrameSpecified Time Frame

Letter Of Understanding – Informal Letter Of Understanding – Informal Agreement With Supplier To Expedite Agreement With Supplier To Expedite Delivery or Take Other ActionDelivery or Take Other Action

Rating Authorization – To Authorize Use Of Rating Authorization – To Authorize Use Of A Priority Rating By A Foreign Entity Or A Priority Rating By A Foreign Entity Or Other USG AgencyOther USG Agency

COMPLIANCECOMPLIANCE

Criminal Prosecution Criminal Prosecution Defense Production Act $10,000 Defense Production Act $10,000

Fine, 1 Year in Prison, Or BothFine, 1 Year in Prison, Or Both Selective Service Act $50,000 Selective Service Act $50,000

Fine, 3 years In Prison, Or Both Fine, 3 years In Prison, Or Both

Civil Injunction Under DPACivil Injunction Under DPA - Prohibit Action- Prohibit Action - Enforce Compliance- Enforce Compliance

Contact InformationContact Information

Liam McMenaminLiam McMenamin Senior Staff OfficerSenior Staff Officer OSIES/Room 3876OSIES/Room 3876 U.S. Department of CommerceU.S. Department of Commerce Washington, D.C. 20230Washington, D.C. 20230 Tel: (202) 482-3634Tel: (202) 482-3634 Email: Email: lmcmenam@bis.doc.govlmcmenam@bis.doc.gov Web Site: Web Site: www.bis.doc.govwww.bis.doc.gov Click On Industrial Base ProgramsClick On Industrial Base Programs