1. Supporting National Security TACOM APBI Liam McMenamin Senior Staff Officer Office of Strategic Industries and Economic Security Bureau of Industry and Security U.S. Department of Commerce www.bis.doc.gov/osies

2. Commerce Role Defense Priorities and Allocations System (DPAS) TACOM APBI October 27, 2005 Liam McMenamin Senior Staff Officer

3. Defense Priorities and Allocations System (DPAS) Regulations (15 CFR 700)

4. DPAS Objectives Keep Current Defense And Emergency Preparedness Programs On Schedule Keep Current Defense And Emergency Preparedness Programs On Schedule Provide System For Rapid Industrial Response (Acceleration / Expansion) In A National Emergency Provide System For Rapid Industrial Response (Acceleration / Expansion) In A National Emergency Minimize Disruption To Normal Company Commercial Activities Minimize Disruption To Normal Company Commercial Activities

5. DPAS Legal Authority Defense Production Act of 1950 Defense Production Act of 1950 Acceptance And Priority Performance On Rated Contracts And OrdersAcceptance And Priority Performance On Rated Contracts And Orders Allocation Of Materials, Services, And Facilities Essential To The National DefenseAllocation Of Materials, Services, And Facilities 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 Disaster Catastrophic Natural Disaster Man-Caused (Terrorism) Event Man-Caused (Terrorism) Event DO-N1 Priority Rating DO-N1 Priority Rating

6. Commerce Delegation of DPA (Title I) Priorities and Allocations Authority for Industrial Resources CONGRESS Defense Production Act of 1950 Selective Service Act of 1948 PRESIDENT E.O. 12919 E.O. 12742 DEPARTMENT OF COMMERCE Defense Priorities and Allocations System DPAS DELEGATE AGECIES DEFENSE Defense Programs ENERGY Atomic Energy Programs HOMELAND SECURITY Civil Emergency Preparedness and Response GENERAL SERVICES ADMINISTRATION Federal Supply Program MEMORANDA OF UNDERSTANDING AGRICULTURE Food Farm Equipment ENERGY Petroleum/Gas Products and Equipment INTERIOR/USGS Mineral Facilities and Materials (suspended) CANADA Priorities and Allocations Support

7. Responding to a “Rated Order” Industry Actions Mandatory Acceptance Of Rated Orders Mandatory Acceptance Of Rated Orders Except As Provided By The Rules Except As Provided By The Rules Preferential Scheduling Of Rated Orders Preferential Scheduling Of Rated Orders Timely Delivery To Customers Timely Delivery To Customers Mandatory Extension Of Priority Ratings Mandatory Extension Of Priority Ratings Timely Delivery From Vendors And Suppliers Timely Delivery From Vendors And Suppliers

8. DPAS In The Current Environment DOD Applies DPAS To 750,000 Contract Actions Annually DOD Applies DPAS To 750,000 Contract Actions Annually DPAS Is Used To Make Sure American Men And Women Stay Safe And Prepared DPAS Is Used To Make Sure American Men And Women Stay Safe And Prepared Apply Priority Rating – Insurance Policy Apply Priority Rating – Insurance Policy Give Field Commanders Critical Items And Tools Necessary To Do Their Jobs Give Field Commanders Critical Items And Tools Necessary To Do Their Jobs

9. DPAS Responds to the 21st Century Challenges Shrinking / Globalizing Defense Industrial Base Shrinking / Globalizing Defense Industrial Base DOD Commercial (COTS) Sourcing Initiatives And Dual-Use Products DOD Commercial (COTS) Sourcing Initiatives And Dual-Use Products Supports Industry’s Just-In-Time Production And Delivery Practices Supports Industry’s Just-In-Time Production And Delivery Practices

10. Special Priorities Assistance Program Manager Actions Investigate Assumptions and Facts to Determine Possible Remedies Investigate Assumptions and Facts to Determine Possible Remedies Coordinate With Affected parties Coordinate With Affected parties Negotiate An Acceptable Solution Negotiate An Acceptable Solution

11. Special Priorities Assistance Official Actions Directive – Order Requiring Supplier To Deliver Or Take Other Action Within A Specified Time Frame Directive – Order Requiring Supplier To Deliver Or Take Other Action Within A Specified Time Frame Letter Of Understanding – Informal Agreement With Supplier To Expedite Delivery or Take Other Action Letter Of Understanding – Informal Agreement With Supplier To Expedite Delivery or Take Other Action Rating Authorization – To Authorize Use Of A Priority Rating By A Foreign Entity Or Other USG Agency Rating Authorization – To Authorize Use Of A Priority Rating By A Foreign Entity Or Other USG Agency

12. COMPLIANCE Criminal Prosecution Criminal Prosecution Defense Production Act $10,000 Fine, 1 Year in Prison, Or Both Defense Production Act $10,000 Fine, 1 Year in Prison, Or Both Selective Service Act $50,000 Fine, 3 years In Prison, Or Both Selective Service Act $50,000 Fine, 3 years In Prison, Or Both Civil Injunction Under DPA Civil Injunction Under DPA - Prohibit Action - Prohibit Action - Enforce Compliance - Enforce Compliance

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