Defense Priorities and Allocation System (DPAS)

Subject: DPAS

Source: FARProperty "Source" has a restricted application area and cannot be used as annotation property by a user.

FAR Part: FAR 11

DFAR Part:

Purpose^[1]

§ 700.1 Purpose of this regulation.

(a) Title I of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061, et seq.) (Defense Production Act), authorizes the President: to require the priority performance of contracts and orders necessary or appropriate to promote the national defense over other contracts or orders; to allocate materials, services, and facilities as necessary or appropriate to promote the national defense; and to require the allocation of, or the priority performance under contracts or orders relating to, supplies of materials, equipment, and services in order to assure domestic energy supplies for national defense needs.

FAR Part 11.6 implements the Defense Priorities and Allocations System (DPAS), a Department of Commerce Regulation in support of approved national defense, emergency preparedness, and energy programs.

Defense Priorities and Allocation System (DPAS) rated contracts give certain US Government orders priority under Federal Law over all other US Government and commercial work, and notwithstanding other contractual commitments. There are two levels of priority for rated orders established by DPAS. They are:

DX Orders have highest priority,and take priority over DO
DO Orders have priority over all non-rated orders except DX rated orders^[2].

A couple rules regarding priorities of rated orders.

1. First received applies when establishing priorities among like rated orders,
2. Must redirect materials and labor away from other orders in order to comply with rating.

Exemptions/Not Required

Under the DPAS regulation a person is not required to place a priority rating on an order for less than $50,000 or one half the FAR Simplified Acquisition Threshold, (Currently $75,000) whichever is larger, provided that delivery can be obtained in a timely fashion without the use of the priority rating (15 CFR 700.17(f)). This does not preclude a person from rating an order under $50,000 if he chooses to do so to insure timely delivery. This threshold would also apply to the mandatory priority rating extension requirements for contractors in FAR 11.603(d)(2).

Department of Defense Priorities and Allocations Manual

File:Department of Defense DPAS Manual.pdf

Training Content

Defense Priorities and Allocation System (DPAS) - Purpose

§ 700.1 Purpose of this regulation.

(a) Title I of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061, et seq.) (Defense Production Act), authorizes the President: to require the priority performance of contracts and orders necessary or appropriate to promote the national defense over other contracts or orders.

(b) Section 18 of the Selective Service Act of 1948 (50 U.S.C. app. 468) (Selective Service Act) authorizes the President to place an order with a supplier for any articles or materials required for the exclusive use of the U.S. armed forces whenever the President determines that in the interest of national security, prompt delivery of the articles and materials is required.

(c) Section 602(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5195a(b)) provides that the terms “national defense” and “defense” as used in the Defense Production Act includes “emergency preparedness activities” conducted pursuant to Title VI of the Stafford Act.

The Defense Priorities and Allocations System (DPAS) regulation implements the priorities and allocations authority of the Defense Production Act.

The DPAS ensures the timely availability of industrial resources for approved programs and provides an operating system to support rapid industrial response to a national emergency.

Defense Priorities and Allocation System (DPAS) - Background

FAR Part 11.6 implements the Defense Priorities and Allocations System (DPAS), a Department of Commerce Regulation in support of approved national defense, emergency preparedness, and energy programs. Defense Priorities and Allocation System (DPAS) rated contracts give certain US Government orders priority under Federal Law over all other US Government and commercial work.

Defense Priorities and Allocation System (DPAS) – Levels of Priority

There are two levels of priority for rated orders established by DPAS

DX Orders have highest priority, and take priority over DO DO Orders have priority over all non-rated orders except DX rated orders.

Rules regarding Priorities of Rated Orders 1. First received applies when establishing priorities among like rated orders, 2. Must redirect materials and labor away from other orders in order to comply with rating.

Defense Priorities and Allocation System (DPAS) – Thresholds

Under the DPAS regulation a person is not required to place a priority rating on an order for less than $50,000 or one half the FAR Simplified Acquisition Threshold,(Currently $75,000) whichever is larger, provided that delivery can be obtained in a timely fashion without the use of the priority rating (15 CFR 700.17(f)).

This does not preclude a person from rating an order under $50,000 if he chooses to do so to insure timely delivery.

Defense Priorities and Allocation System (DPAS) – Solicitation Provision

FAR 52.211-14 - Notice of Priority Rating for National Defense, Emergency Preparedness, and Energy Program Use

Prescription (a) Contracting officers shall insert the provision at 52.211-14, Notice of Priority Rating for National Defense, Emergency Preparedness, and Energy Program Use, in solicitations when the contract to be awarded will be a rated order.

Provision Any contract awarded as a result of this solicitation will be ___ DX rated order; ___ DO rated order certified for national defense, emergency preparedness, and energy program use under the Defense Priorities and Allocations System (DPAS) (15 CFR 700), and the Contractor will be required to follow all of the requirements of this regulation. [Contracting Officer check appropriate box.]

Defense Priorities and Allocation System (DPAS) – Contract Clause

FAR 52.211-15 - Defense Priority and Allocation Requirements

Prescription (b) Contracting officers shall insert the clause at 52.211-15, Defense Priority and Allocation Requirements, in contracts that are rated orders.

Provision This is a rated order certified for national defense, emergency preparedness, and energy program use, and the Contractor shall follow all the requirements of the Defense Priorities and Allocations System regulation (15 CFR 700).

Contractor Notification Requirements

(1) A person must accept or reject a rated order and transmit the acceptance or 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) working days after receipt of a DX rated order. If the order is rejected, the person must also provide the reasons for the rejection, pursuant to paragraphs (b) and (c) of this section, in writing (hard copy) or electronic format.

(2) If a person has accepted a rated order and subsequently finds that shipment or performance will be delayed, the person must notify the customer immediately, give the reasons for the delay, and advise of a new shipment or performance date. If notification is given verbally, written or electronic confirmation must be provided within five (5) working days. (The information collection requirements in paragraphs (d)(1) and (d)(2) are approved by the Office of Management and Budget under OMB control number 0694-0053)