Subpart 11.6 - Priorities and Allocations

Parent topic: Part 11 - Describing Agency Needs

11.600 Scope of subpart.

This subpart implements the Defense Priorities and Allocations System (DPAS), a Department of

Commerce regulation in support of approved national defense, emergency preparedness, and energy

programs (see 15 CFR part 700).

11.601 Definitions.

As used in this subpartApproved program means a program determined as necessary or appropriate for priorities and

allocations support to promote the national defense by the Secretary of Defense, the Secretary of

Energy, or the Secretary of Homeland Security, under the authority of the Defense Production Act,

the Stafford Act, and Executive Order 12919, or the Selective Service Act and related statutes and

Executive Order 12742.

Delegate Agency means a Government agency authorized by delegation from the Department of

Commerce to place priority ratings on contracts or orders needed to support approved programs.

National defense means programs for military and energy production or construction, military

assistance to any foreign nation, stockpiling, space, and any directly related activity. Such term

includes emergency preparedness activities conducted pursuant to title VI of The Robert T. Stafford

Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5195 et seq.) and critical infrastructure

protection and restoration. ( 50 U.S.C. App. § 2152).

Rated order means a prime contract, a subcontract, or a purchase order in support of an approved

program issued in accordance with the provisions of the DPAS regulation (15 CFR part 700).

11.602 General.

(a) Under Title I of the Defense Production Act of 1950 (50 U.S.C. App.2061, etseq.), 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:

www.bis.doc.gov/dpas.
11.603 Procedures.

(a) There are two levels of priority for rated orders established by the DPAS, identified by the rating

symbols "DO" and "DX". All DO rated orders have equal priority with each other and take preference

over unrated orders. All DX rated orders have equal priority with each other and take preference

over DO rated and unrated orders (see 15 CFR 700.11). The DPAS regulation contains provisions

concerning the elements of a rated order (see 15 CFR 700.12); acceptance and rejection of rated

orders (see 15 CFR 700.13); preferential scheduling (see 15 CFR 700.14); extension of priority

ratings (flowdown) (see 15 CFR 700.15); changes or cancellations of priority ratings and rated

orders (see 15 CFR 700.16); use of rated orders (see 15 CFR 700.17); and limitations on placing

rated orders (see 15 CFR 700.18).

(b) The Delegate Agencies have been given authority by the Department of Commerce to place rated

orders in support of approved programs (see Schedule I of the DPAS). Other U.S. Government

agencies, Canada, and foreign nations may apply for priority rating authority.

(c) Rated orders shall be placed in accordance with the provisions of the DPAS.

(d) Agency heads shall ensure compliance with the DPAS by contracting activities within their

agencies.

(e) Agency heads shall provide contracting activities with specific guidance on the issuance of rated

orders in support of approved agency programs, including the general limitations and jurisdictional

limitations on placing rated orders (see 15 CFR 700.18 and Executive Order 12919).

(f) Contracting officers shall follow agency procedural instructions concerning the use of rated

orders in support of approved agency programs.

(g) Contracting officers, contractors, or subcontractors at any tier, that experience difficulty placing

rated orders, obtaining timely delivery under rated orders, locating a contractor or supplier to fill a

rated order, ensuring that rated orders receive preferential treatment by contractors or suppliers, or

require rating authority for items not automatically ratable under the DPAS, should promptly seek

special priorities assistance in accordance with agency procedures (see 15 CFR 700.50-700.55 and

700.80).

(h) The Department of Commerce may take specific official actions (Ratings Authorizations,

Directives, Letters of Understanding, Administrative Subpoenas, Demands for Information, and

Inspection Authorizations) to implement or enforce the provisions of the DPAS (see 15 CFR

700.60-700.71).

(i) Contracting officers shall report promptly any violations of the DPAS in accordance with agency

procedures to the Office of Strategic Industries and Economic Security, U.S. Department of

Commerce, Room 3876, Washington, DC 20230, Ref: DPAS; telephone: (202) 482-3634 or fax: (202)

482-5650.

11.604 Solicitation provision and contract clause.

(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.

(b) Contracting officers shall insert the clause at 52.211-15, Defense Priority and Allocation

Requirements, in contracts that are rated orders.