DPAS Defense Priorities & Allocations System For The .
DPASDefense Priorities & AllocationsSystem for the ContractorPresented By:DCMAWednesday, February 1, 2017March 20141
DPAS for the CONTRACTORAny person who places or receives a rated ordershould be thoroughly familiar with, and mustcomply with, the provisions of 15 CFR 700http://www.ecfr.govThis training is a representation of the basicrequirements that a person must adhere to whenaccepting DPAS rated orders from activities orservices of the Department of Defense2
DPAS for the CONTRACTORContractor should ensure that DPAS isintegrated into their Production Planning andControl System in order to be in compliancewith the requirements of rated orders.3
DPAS for the CONTRACTORProgram Overview Definitions DPAS Authority Purpose Objectives Priority ratings for DoD Provisions Special Priorities Assistance (SPA) Compliance Protection Against Claims Applicability4
Definitions Person - any individual, corporation, partnership, association,or any other organized group of persons, or legal successoror representative thereof. Approved program - A program determined as necessary orappropriate for priorities and allocations support to promotethe national defense by the Secretary of Defense. Delegate Agency - A government agency authorized bydelegation from the Department of Commerce to place priorityratings on contracts or orders needed to support approvedprograms. 5
Definitions Official action - An action taken by Commerce under theauthority of the Defense Production Act, the Selective ServiceAct and related statutes, and 15 CFR 700. Such actionsinclude the issuance of Set-asides, Rating Authorizations,Directives, Letters of Understanding, Demands forInformation, Inspection Authorizations, and AdministrativeSubpoenas. Rated order - A prime contract, a subcontract, or a purchaseorder in support of an approved program issued inaccordance with the provisions of 15 CFR 700. 6
Definitions Defense Production Act - the Defense Production Act of1950, as amended (50 U.S.C. App. 2061, et seq.). Selective Service Act and related statutes - Section 18 ofthe Selective Service Act of 1948 (50 U.S.C. app. 468), 10U.S.C. 2538, and 50 U.S.C. 82. Stafford Act -Title VI (Emergency Preparedness) of theRobert T. Stafford Disaster Relief and Emergency AssistanceAct, as amended (42 U.S.C. 5195 et seq.). National Defense - Includes programs for military and energyproduction or construction, military or critical infrastructureassistance to any foreign nation, homeland security,stockpiling, space, and any directly related activity.7
DPAS AuthorityDefense Production Act of 1950 President’s primary authority to mobilize resources andexpedite critical industrial items for national defense Does not require an emergency declaration Require priority in acceptance Require priority in scheduling 8
DPAS AuthorityDefense Priorities and Allocations System (DPAS) A regulation administered by the Department of Commerce (DoC) that implementsthe priorities and allocations authority contained in Title 1 of the DefenseProduction Act (DPA) of 1950 with respect to industrial resources. The purpose ofDPAS is to ensure the timely availability of industrial resources to meet nationaldefense and emergency preparedness requirements. Certain national defense,energy, and homeland security programs are approved for priorities andallocations support. The DoC has delegated authority to DoD to place priorityratings on its contracts in accordance with DPAS and DoD issues approximately300,000 rated orders annually. DoD uses two priority ratings: DX and DO. DXrated programs and their orders are of the highest national defense urgency andare approved by the Secretary of Defense (SECDEF) or Deputy Secretary ofDefense (DEPSECDEF). DO rated orders are of lower priority than DX-ratedorders but take precedence over unrated orders. DPAS cannot be used to prioritizefood, energy, health, water, or civil transportation resources.9
DPAS AuthorityTitle 1 of the DPA: Priorities and Allocation Allows the President to require persons (including businessesand corporations) to prioritize and accept contracts formaterials and services as necessary to promote the nationaldefense. 10
DPAS Authority Title 1 of the Defense Production Act (DPA) of 1950 is thestatutory basis for the Defense Priorities and Allocations System(DPAS). Title 1 is also one of the non-permanent provisions ofthe DPA that needs to be periodically reauthorized, whichCongress has done in the past for periods of 1 to 5 years. TheDPA provides the President with the authority to requireacceptance and priority performance on contracts and orders,and to allocate materials, services, and facilities to supportnational defense and emergency preparedness requirements.The President has delegated his priority and allocation authorityto the Department of Defense, the Department of HomelandSecurity, and the Department of Energy according to resourcerequired.11
DPAS AuthorityHow Title 1 WorksCongressDefense Production Act of 1950Title 1Office of FederalProcurement PolicyPresidentExecutive Order 13603Department ofCommerceDPAS Regulation 15 CFR 700& Delegation 1Department ofDefensePriority & Allocation Manual4400.1-MFederal AcquisitionRegulation 11.604Contract Clauses52.211 14&15Contracts andPurchase Orders 12
DPAS AuthoritySection 201 of Executive Order 13603 delegates theauthority granted the President in Section 101 of the DPAAgriculture DefenseDefenseFood Resources and Related Facilitates,Domestic Distribution of Farm Equipmentand Commercial FertilizerWater ResourcesEnergyTransportationAll Forms of EnergyAll Forms of Energy CivilTransportationHealth and Human ServicesCommerceHealth ResourcesAll other materials, Services &Facilities (Including ConstructionMaterials). Generally called“industrial resources”DPAS 13
DPAS AuthorityExecutive Order 13603 Part II-Priorities and Allocations, Section 201-Delegation ofPriorities and Allocations, authorizes the Secretary ofCommerce to re-delegate to the Secretary of Defense, andthe heads of other departments and agencies as appropriate,authority for the priority rating of contracts and orders for allmaterials, services, and facilities needed in support ofprograms approved under Section 202 of Executive Order13603. 14
DPAS AuthorityPriorities and Allocations (P&A) Manual 4400.1-M The DoC implements its P&A authority by issuing,administering, and enforcing the DPAS Regulation 15 CFR700. The Secretary of Commerce has re-delegated authorityunder the DPAS to the Secretary of Defense to rate contractsand orders that support national defense programs.Department ofDefensePriority & Allocation Manual4400.1-MDPAS PriorityContracts andPurchase Orders15
DPAS Purpose Assure timely availability of industrial resources to meetcurrent national defense and emergency preparednessprogram requirements 16
DPAS Purpose Authority to order priority performance (delivery) on defensecontracts and allocate materials to meet national securityrequirements (DO/DX ratings)17
Objectives Provide an operating system to support rapid industrialresponse in a national emergency 18
OBJECTIVES Minimize disruption to normal commercial activities19
Priority RatingsDPAS rules are standard part of U.S. defense contractingprocess: (15 CFR 700.11 (a)) Two levels of priority ratings: (DX) Highest national defense urgency All DX rated orders have equal priority and take preference over DOand unrated orders (based on ship schedule) (DO) Critical to national defense All DO rated orders have equal priority and take preference overunrated orders (based on ship schedule)20
Priority Ratings for �𝑃𝑃𝑃𝑃 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 ��𝑃 𝐼𝐼𝐼𝐼 amples:𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐷𝐷𝐷𝐷 𝐴𝐴𝐴𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐷𝐷𝐷𝐷 𝐴𝐴𝐴 Aircraft MRAP Vehicles Question: How do I know what a Program ID Symbolidentifies?Answer: Schedule I to 15 CFR Part 700—Approved Programsand Delegate Agencies(Program identification symbols, in themselves,do not connote any priority)21
Program Symbols22
Priority Ratings for DoD Question: How do I know what programs are approved forDX rating? Answer: You can retrieve an updated copy of programs thathave been approved by the Secretary of Defense for the useof DX ratings on contracts, subcontracts, and purchase ordersby going to US DoC Bureau of Industry and Security andviewing the list of DPAS Program Resources.23
DX PROGRAMS Updated: March 1, 2016 The Department of Defense has authority underthe Defense Priorities and Allocations System (15CFR 700) to place industrial priority ratings on itscontracts. DoD uses two ratings: "DO" and "DX."If necessary to meet required delivery dates at anylevel in the supply chain, DO rated orders must begiven production preference over unrated(commercial) orders, and DX rated orders must begiven preference over DO-rated orders andunrated orders. In accordance with DoD 4400.1-M, "Departmentof Defense Priorities and Allocations Manual," DOratings are placed on the vast majority of DoDcontracts. DX ratings can only be approved by theSecretary of Defense. DoD components arecurrently authorized to use DX industrial priorityratings in support of the following programs: Department of Defense Program 390 Integrated Ballistic Missile Defense System Department of the Navy Presidential Helicopters (VH-3, VH-60) Fleet Ballistic Missile Weapons System, TridentSystem Program 341 Department of the Air Force Space-Based Infrared System (SBIRS) High Intercontinental Ballistic Missile, Minuteman III B-2 Stealth Bomber VC-25A Presidential Aircraft24
What Is A Rated OrderA rated order is a prime contract, a subcontract or a purchaseorder in support of an approved program issued in accordancewith the provisions of 15 CFR 700.Supported by four key elements: Priority Rating (DOA1) A required delivery date (on or about or asap will not do) Manual or electronic signature A statement that reads in substance:"This is a rated order certified for national defense use, and youare required to follow all provisions of the Defense Priorities andAllocations System regulation (15 CFR 700).“ (FAR 52.211-15)” 25
What Is A Rated Order The four elements of a properly rated order on the previousslide must appear on every contract, purchase order, ordelivery order. A person receiving a rated order must ensure during thereceipt and review process determining acceptance orrejection of the order, that all four elements are present.The elements of a rated order are discussed in section700.12 (a, b, c, d)26
Basic ProvisionsMandatory Acceptance or Rejectionof Rated Orders (Section 700.13)Preferential Scheduling(Section 700.14)Extension of Priority Ratings(Section 700.15)27
BASIC PROVISIONSMandatory Acceptance or Rejectionof Rated Orders (Section 700.13) A person shall accept every rated order received and must fillsuch orders regardless of any other rated or unrated orders A person shall not discriminate against rated orders A person shall not accept a rated order for delivery on aspecific date if unable to fill the order by that date. However,the person must inform the customer of the earliest date onwhich delivery can be made Unless otherwise directed by Commerce, rated orders may berejected in accordance with700.13 (c) (1-5) 28
Basic ProvisionsCustomer notification requirements:A person must accept or reject a rated order and transmit the acceptanceor rejection in writing (hard copy), or in electronic format, within fifteen (15)working days after receipt of a DO rated order and within ten (10) workingdays after receipt of a DX rated order. If the order is rejected, the personmust also provide the reasons for the rejection, pursuant to paragraphs (b)and (c) of this section, in writing (hard copy) or electronic format.If a rated order is placed for the purpose of emergency preparednessrequirements and expedited action is necessary or appropriate to meetthese requirements and the order includes the statement set forth in§700.12(b), a person must accept or reject the rated order and transmit theacceptance or rejection in writing or in an electronic format within the timespecified in the rated order.29
Basic ProvisionsCustomer notification requirements: (Continued)The minimum times for acceptance or rejection that such orders mayspecify are six (6) hours after receipt of the order if the order is issued byan authorized person in response to a hazard that has occurred, ortwelve (12) hours after receipt if the order is issued by an authorizedperson to prepare for an imminent hazard.If a person has accepted a rated order and subsequently finds thatshipment or performance will be delayed, the person must notify thecustomer immediately, give the reasons for the delay, and advise of anew shipment or performance date. If notification is given verbally,written (hard copy) or electronic confirmation must be provided withinone working day of the verbal notice.30
Basic ProvisionsPreferential Scheduling(Section 700.14) A person must schedule operations, including the acquisitionof all needed production items, in a timely manner to satisfythe delivery requirements of each rated order. Modifyingproduction or delivery schedules is necessary only whenrequired delivery dates for rated orders cannot otherwise bemet. 31
Basic Provisions Examples: If a person receives a DO rated order with adelivery date of June 3 and if meeting that date would meandelaying production or delivery of an item for an unratedorder, the unrated order must be delayed. If a DX rated orderis received requiring delivery on July 15 and a person has aDO rated order requiring delivery on June 2 and operationscan be scheduled to meet both deliveries, there is no need toalter production schedules to give any additional preference tothe DX rated order. 32
BASIC PROVISIONSConflicting rated orders:1. If a person finds that delivery or performance against any accepted rated ordersconflicts with the delivery or performance against other accepted rated orders ofequal priority status, the person shall give preference to the conflicting orders inthe sequence in which they are to be delivered or performed (not to the receiptdates). If the conflicting rated orders are scheduled to be delivered or performedon the same day, the person shall give preference to those orders which havethe earliest receipt dates.2. If a person is unable to resolve rated order delivery or performance conflictsunder this section, the person should promptly seek special priorities assistanceas provided in §§700.50 through 700.54. If the person's customer objects to therescheduling of delivery or performance of a rated order, the customer shouldpromptly seek special priorities assistance as provided in §§700.50 through700.54. For any rated order against which delivery or performance will bedelayed, the person must notify the customer as provided in §700.13(d)(3).33
Basic ProvisionsExtension of Priority Ratings(Section 700.15) A person must use rated orders with suppliers to obtain itemsneeded to fill a rated order. The person must use the priorityrating indicated on the customer's rated order, except asotherwise provided in 15 CFR 700 or as directed by theDepartment of Commerce. 34
Basic Provisions For example, if a person is in receipt of a DO-A3 rated orderfor a navigation system and needs to purchasesemiconductors for its manufacture, that person must use aDO-A3 rated order to obtain the needed semiconductors. The priority rating must be included on each successive orderplaced to obtain items needed to fill a customer's rated order.This continues from contractor to subcontractor to supplierthroughout the entire procurement chain.35
Special Priorities Assistance§700.50 General provisions. The DPAS is designed to be largely self-executing. Special Priorities Assistance (SPA) is a service provided toalleviate problems that do arise. SPA should be sought from the Delegate Agency through thecontract administration office.Uses: Obtaining timely deliveries of items needed to satisfy rated orders. Authorizing the use of priority ratings on orders. 36
Special Priorities Assistance§700.51 Requests for priority rating authority If a rated order is likely to be delayed because a person isunable to obtain items not normally rated under 15 CFR 700,the person may request the authority to use a priority rating inordering the needed items. Rating authority for production or construction equipment.(Department of Defense Form DD 691.) Rating authority in advance of a rated prime contract. Mustfollow guidance of 700.51 (c) (1-5) 37
Special Priorities Assistance§700.52 Examples of assistance While special priorities assistance may be provided for anyreason in support of 15 CFR 700, it is usually provided insituations where: Difficulty in obtaining delivery against a rated order by therequired delivery date. Cannot locate a supplier for an item needed to fill a rated order. 38
Special Priorities Assistance§700.53 Criteria for assistance Requests for special priorities assistance should be timely,i.e., the request has been submitted promptly and enoughtime exists for the Delegate Agency or Commerce to effect ameaningful resolution to the problem, and must establish that: There is an urgent need for the item The applicant has made a reasonable effort to resolve theproblem 39
Special Priorities Assistance §700.54 Instances where assistance will not be provided Secure a price advantage Obtain delivery prior to the time requiredto fill a rated order Gain competitive advantage Overcome a supplier's regularly established terms of sale orconditions of doing business 40
Special Priorities AssistanceFORM BIS 999This form can be found asAppendix I to 15 CFR 700Your local DCMA DPAS POC will assist in preparation of BIS 99941
Compliance§700.70 General provisions Any person who places or receives a rated order should bethoroughly familiar with, and must comply with, the provisionsof 15 CFR 700. Willful violation of any of the provisions of Title I or section705 of the Defense Production Act, 15 CFR 700, or an officialaction of the Department of Commerce, is a criminal act,punishable as provided in the Defense Production Act and asset forth in §700.74 of 15 CFR 700. 42
Compliance§700.71 Audits and investigations Audits and investigations are official examinations of books,records, documents, other writings and information to ensurethat the provisions of the Defense Production Act, theSelective Service Act and related statutes, 15 CFR 700, andofficial actions have been properly followed. An audit orinvestigation may also include interviews and a systemsevaluation to detect problems or failures in the implementationof 15 CFR 700. 43
Compliance§700.72 Compulsory process If a person refuses to permit a duly authorized representativeof Commerce to have access to any premises or source ofinformation necessary to the administration or theenforcement of the Defense Production Act, the SelectiveService Act and related statutes, 15 CFR 700, or officialactions, the Commerce representative may seek compulsoryprocess. Compulsory process means the institution ofappropriate legal action, including ex parte application for aninspection warrant or its equivalent, in any forum ofappropriate jurisdiction. 44
Compliance§700.72 Compulsory process (Continued) Compulsory process may be sought in advance of an audit,investigation, or other inquiry, if, in the judgment of theDirector of the Office of Strategic Industries and EconomicSecurity, U.S. Department of Commerce, in consultation withthe Chief Counsel for Industry and Security, U.S. Departmentof Commerce, there is reason to believe that a person willrefuse to permit an audit, investigation, or other inquiry, or thatother circumstances exist which make such process desirableor necessary.45
Compliance§700.73 Notification of failure to comply Commerce may inform the person in writing wherecompliance with the requirements of the Defense ProductionAct, the Selective Service Act and related statutes, 15 CFR700, or an official action were not met. In cases where Commerce determines that a person hasfailed to comply, the person may be informed in writing of theparticulars involved and the corrective action to be taken.Failure to take corrective action may then be construed as awillful violation of the Defense Production Act, 15 CFR 700, oran official action.46
Compliance§700.74 Violations, penalties, and remedies Willful violation of the provisions of Title I or Sections 705 or707 of the Defense Production Act, the priorities provisions ofthe Selective Service Act and related statutes, 15 CFR 700, oran official action, is a crime and upon conviction, a personmay be punished by fine or imprisonment, or both. Themaximum penalty provided by the Defense Production Act isa 10,000 fine, or one year in prison, or both. The maximumpenalty provided by the Selective Service Act and relatedstatutes is a 50,000 fine, or three years in prison, or both.47
COMPLIANCE§700.75 Compliance conflicts If compliance with any provision of the Defense ProductionAct, the Selective Service Act and related statutes, 15 CFR700, or an official action would prevent a person from filling arated order or from complying with another provision of theDefense Production Act, 15 CFR 700, or an official action, theperson must immediately notify the Department of Commercefor resolution of the conflict. DoC e-Mail: DPAS@bis.doc.gov48
Protection Against ClaimsA person shall not be held liable for damagesor penalties for any act or failure to actresulting directly or indirectly from compliancewith the DPAS, or an official action,notwithstanding that such provision or actionshall subsequently be declared invalid byjudicial or other competent authority.49
Applicability§700.92 Applicability of 15 CFR 700 and official actions 15 CFR 700 and all official actions, unless specifically statedotherwise, apply to transactions in any state, territory, orpossession of the United States and the District of Columbia. 15 CFR 700 and all official actions apply not only to deliveriesto other persons but also include deliveries to affiliates andsubsidiaries.50
References Department of Commerce Regulation 15 CFR 700 DOD Priorities and Allocation Manual DoD 4400.1M51
DCMA Local DPAS POCs Contact the Engineering Manufacturing Group representative(Industrial Specialist/Engineer) at the DCMA contractadministration office identified on your contract.SAMPLE52
DCMA HQ DPAS POCsManufacturing & Production Primary HQ DPAS Officer - Charles Iannarelli (804) 734-1209Charles.Iannarelli@dcma.mil Alternate HQ DPAS Officer - VACANT53
CFR 700)to place industrial priority ratings on its contracts. DoD uses two ratings: "DO" and "DX." If necessary to meet required delivery dates at any level in the supply chain, DO rated orders mustbe given production preference overunrated (commercial) orders, andDX rated orders mustbe givenpreference over DO-rated orders and unrated orders
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Italian and French DPAs all have newsletters.14 The Dutch DPA has a separate newsletter directed towards DPOs specifically.15. Social Media is also used by DPAs. The Danish, Dutch, French, Italian and UK DPAs all have an active social media presence.16
Defense Advanced Research Projects Agency. Defense Commissary Agency. Defense Contract Audit Agency. Defense Contract Management Agency * Defense Finance and Accounting Service. Defense Health Agency * Defense Information Systems Agency * Defense Intelligence Agency * Defense Legal Services Agency. Defense Logistics Agency * Defense POW/MIA .
Research, Development, Test and Evaluation, Defense-Wide Defense Advanced Research Projects Agency Volume 1 Missile Defense Agency Volume 2 . Defense Contract Management Agency Volume 5 Defense Threat Reduction Agency Volume 5 The Joint Staff Volume 5 Defense Information Systems Agency Volume 5 Defense Technical Information Center Volume 5 .
8283 GREENSBORO DR MCLEAN VA 22102-4904 1. THIS CONTRACT IS A RATED ORDER UNDER DPAS (15 CFR 700) 2. CONTRACT NO. W91247-12-D-0008 8. ADDRESS OFFER TO 9. Sealed offers in original and 5 copies for furnishing the supplies or services in the Schedule will be received at the place specified i
8283 GREENSBORO DR MCLEAN VA 22102-3830 1. THIS CONTRACT IS A RATED ORDER UNDER DPAS (15 CFR 700) 2. CONTRACT NO. W911S019D0005 W911S0 8. ADDRESS OFFER TO See Item 7 9. Sealed offers in original and 0 copies for furnishing the supplies or services in the Schedule will be received
DPA materializes two among the top drawing points. There are, therefore, two top DPAs and 4 bottom DPAs (see Figure 1). Each drawing point need a winch, a swivel pulley at the location of the drawing point, and a force sensor for monitoring the cable tension. The components are the same
conforming to ASTM F480 and (ASTM D1785 or ASTM D2241): (check one): Schedule 40 Schedule 80 Schedule 120. Thermoset Plastic: (check one) Filament Wound Resin Pipe conforming to ASTM D2996 Centrifugally Cast Resin Pipe conforming to ASTM D2997 Reinforced Plastic Mortar Pressure Pipe conforming to ASTM D3517 Glass Fiber Reinforced Resin Pressure Pipe conforming to AWWA C950 PTFE Fluorocarbon .
