11.602 General
Source: FAR 11.602 on acquisition.gov
FAR 11.602 establishes that certain contracts may be subject to mandatory prioritization and resource allocation under the Defense Production Act, administered by the Department of Commerce through the DPAS.
Overview
FAR 11.602 outlines the legal authority and administrative structure for prioritizing and allocating contracts and orders that support national defense and energy programs under the Defense Production Act (DPA) of 1950. The section explains that the President has the power to require preferential acceptance and performance of certain contracts and to allocate resources to promote approved programs. This authority has been delegated to the Secretary of Commerce, who administers the Defense Priorities and Allocations System (DPAS). Contractors and contracting officers must be aware that certain contracts may be subject to these priorities and allocations, which can affect performance timelines and resource allocation. The section also provides a reference to the DPAS website for further guidance.
Key Rules
- Presidential Authority under the DPA
- The President can require preferential treatment for contracts supporting national defense and energy programs and allocate resources accordingly.
- Delegation to Secretary of Commerce
- The Secretary of Commerce administers the DPAS, which implements these priorities and allocations.
Responsibilities
- Contracting Officers: Must recognize when contracts are subject to DPAS and ensure compliance with priority ratings and allocation requirements.
- Contractors: Must accept and prioritize rated orders as required by DPAS, unless exceptions apply.
- Agencies: Must coordinate with the Department of Commerce for guidance and oversight on DPAS-rated contracts.
Practical Implications
- This section ensures that critical national defense and energy needs are met by prioritizing certain contracts and resources.
- Contractors may need to adjust schedules and resource allocations to comply with DPAS-rated orders.
- Failure to comply with DPAS requirements can result in legal and contractual consequences.
(a) Under Title I of the Defense Production Act of 1950 (50 U.S.C. App.2061, et seq.), the President is authorized to require preferential acceptance and performance of contracts and orders supporting certain approved national defense and energy programs and to allocate materials, services, and facilities in such a manner as to promote these approved programs.
(b) The President delegated the priorities and allocations authorities of the Defense Production Act in Executive Order 12919. As part of that delegation, the President designated the Secretary of Commerce to administer the DPAS. For more information, check the DPAS website at: https://www.bis.doc.gov/index.php/other-areas/strategic-industries-and-economic-security-sies/defense-priorities-a-allocations-system-program-dpas" target="_blank">https://www.bis.doc.gov/index.php/other-areas/strategic-industries-and-economic-security-sies/defense-priorities-a-allocations-system-program-dpas.