Monday, March 23, 2020

COVID-19: Defense Production Act (DPA)

3.11.2020 - The World Health Organization announced that the outbreak of COVID-19 can be characterized as a pandemic.

3.18.2020 - Defense Production Act is invoked by President Trump.

(Excerpt)
"Trump Invokes a Cold War Relic...
Bowing to increasing pressure to do so, President Trump announced Wednesday he would use a law dating back to the early years of the Cold War to address serious shortages of supplies needed for responding to the coronavirus outbreak in the U.S."
MEDIA CREDIT: NPR, 3.18.2020











(Excerpt)
Implementing the DPA to Boost Output of Medical Resources
"In his executive order, Trump delegates his authority to carry out the law 'to the Secretary of Health and Human Services with respect to all health and medical resources needed to respond to the spread of COVID-19 within the United States.' HHS Secretary Alex Azar is directed to consult with Commerce Secretary Wilbur Ross and the heads of other agencies to determine 'the proper nationwide priorities and allocation of all health and medical resources, including controlling the distribution of such materials' for responding to the coronavirus crisis."
MEDIT CREDIT: NPR, 3.18.2020

The Defense Production Act of 1950, as Amended,
Enacted: 10.30.2009 - PDF
(Excerpt)...
Statement of Policy
It is the policy of the United States that—

(1) to ensure the adequacy of productive capacity and supply, Federal departments and agencies that are responsible for national defense acquisition should continuously assess the capability of the domestic industrial base to satisfy production requirements under both peacetime and emergency conditions, specifically evaluating the availability of adequate production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel;

(2) every effort should be made to foster cooperation between the defense and commercial sectors for research and development and for acquisition of materials, components, and equipment;

(3) plans and programs to carry out the purposes of this Act [50 U.S.C. App. § 2061- 2171] should be undertaken with due consideration for promoting efficiency and competition;

(4) in providing United States Government financial assistance under this Act [50 U.S.C. App. § 2061-2171] to correct a domestic industrial base shortfall, the President should give consideration to the creation or maintenance of production sources that will remain economically viable after such assistance has ended;

(5) authorities under this Act [50 U.S.C. App. § 2061-2171] should be used to reduce the vulnerability of the United States to terrorist attacks, and to minimize the damage and assist in the recovery from terrorist attacks that occur in the United States;

(6) in order to ensure productive capacity in the event of an attack on the United States, the United States Government should encourage the geographic dispersal of industrial facilities in the United States to discourage the concentration of such productive facilities within limited geographic areas that are vulnerable to attack by an enemy of the United States;

(7) to ensure that essential national defense requirements are met, consideration should be given to stockpiling strategic materials, to the extent that such stockpiling is economical and feasible; and

(8) in the construction of any industrial facility owned by the United States Government, in the rendition of any financial assistance by the United States Government for the construction, expansion, or improvement of any industrial facility, and in the production of goods and services, under this Act [50 U.S.C. App. § 2061-2171] or any other provision of law, each department and agency of the United States Government should apply, under the coordination of the Federal Emergency Management Agency, when practicable and consistent with existing law and the desirability for maintaining a sound economy, the principle of geographic dispersal of such facilities in the interest of national defense.

Source: DPA, 10.30.2009, pages 2-3

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