10/22/21

Supply Chain Crisis and Where is the Defense Production Act?

By: Denise Simon | Founders Code

What is the Defense Production Act?

The Defense Production Act is the primary source of presidential authorities to expedite and expand the supply of materials and services from the U.S. industrial base needed to promote the national defense. DPA authorities are available to support: emergency preparedness activities conducted pursuant to title VI of the Stafford Act; protection or restoration of critical infrastructure; and efforts to prevent, reduce vulnerability to, minimize damage from, and recover from acts of terrorism within the United States. DPA authorities may be used to:

  • Require acceptance and preferential performance of contracts and orders under DPA Title I. (See Federal Priorities and Allocations System (FPAS).)
  • Provide financial incentives and assistance (under DPA Title III) for U.S. industry to expand productive capacity and supply needed for national defense purposes;
  • Provide antitrust protection (through DPA voluntary agreements in DPA Title VII) for businesses to cooperate in planning and operations for national defense purposes, including homeland security.

But national security? Yes. We remain in the midst of the COVID-19 pandemic and those affected could and often are our protectors, not only medically but when it comes to legally or militarily.

While we are fretting over shortages and necessities in our daily lives there are two real areas of major concern, they are medicines and micro-chips (semiconductors) used for advanced technology of many varieties.

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