Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Proposed Rules 8363 

(a) Comments Due Date

The FAA must receive comments on this

airworthiness directive (AD) by March 25, 

2024. 

(b) Affected ADs

None.

(c) Applicability

This AD applies to the ATR—GIE Avions

de Transport Re ́gional airplanes specified in 

paragraphs (c)(1) and (2) of this AD, 

certificated in any category, as identified in 

European Union Aviation Safety Agency 

(EASA) AD 2023–0181, dated October 13, 

2023 (EASA AD 2023–0181). 

(1) Model ATR42–200, –300, –320, and

–500 airplanes.

(2) Model ATR72–101, –102, –201, –202,

–211, –212, and –212A airplanes.

(d) Subject

Air Transport Association (ATA) of

America Code 24, Electrical power. 

(e) Unsafe Condition

This AD was prompted by a report of an

electrical contactor that failed with contacts 

in the intermediate position, causing the 

airplane to lose power to multiple electrical 

systems. The FAA is issuing this AD to 

address an electrical failure. The unsafe 

condition, if not addressed, could result in 

temporary loss of the direct current 

emergency electrical network and loss of 

control of the airplane. 

(f) Compliance

Comply with this AD within the

compliance times specified, unless already 

done. 

(g) Requirements

Except as specified in paragraph (h) of this

AD: Comply with all required actions and 

compliance times specified in, and in 

accordance with, EASA AD 2023–0181. 

(h) Exceptions to EASA AD 2023–0181

(1) Where EASA AD 2023–0181 refers to its

effective date, this AD requires using the 

effective date of this AD. 

(2) This AD does not adopt the ‘‘Remarks’’

section of EASA AD 2023–0181. 

(i) Additional AD Provisions

The following provisions also apply to this

AD: 

(1) Alternative Methods of Compliance

(AMOCs): The Manager, International 

Validation Branch, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or 

responsible Flight Standards Office, as 

appropriate. If sending information directly 

to the manager of the International Validation 

Branch, mail it to the address identified in 

paragraph (j)(1) of this AD. Information may 

be emailed to: 9-AVS-AIR-730-AMOC@

faa.gov. Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the responsible Flight Standards Office. 

(2) Contacting the Manufacturer: For any

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, International Validation 

Branch, FAA; or EASA; or ATR–GIE Avions 

de Transport Re ́gional’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(j) Additional Information

(1) For more information about this AD,

contact Shahram Daneshmandi, Aviation 

Safety Engineer, FAA, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; telephone: 

206–231–3220; email: 

shahram.daneshmandi@faa.gov. 

(2) For ATR service information identified

in this AD that is not incorporated by 

reference, contact ATR–GIE Avions de 

Transport Re ́gional, 1 Alle ́e Pierre Nadot, 

31712 Blagnac Cedex, France; telephone +33 

(0) 5 62 21 62 21; fax +33 (0) 5 62 21 67 18;

email continued.airworthiness@atraircraft.com; website atr-aircraft.com. You

may view this service information at the

FAA, Airworthiness Products Section,

Operational Safety Branch, 2200 South 216th

St., Des Moines, WA. For information on the

availability of this material at the FAA, call

206–231–3195.

(3) Service information identified in this

AD that is not incorporated by reference is 

available at the addresses specified in 

paragraphs (k)(3) and (4) of this AD. 

(k) Material Incorporated by Reference

(1) The Director of the Federal Register

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information

as applicable to do the actions required by 

this AD, unless this AD specifies otherwise. 

(i) European Union Aviation Safety Agency

(EASA) AD 2023–0181, dated October 13, 

2023. 

(ii) [Reserved]

(3) For EASA AD 2023–0181, contact

EASA, Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; telephone +49 221 8999 

000; email ADs@easa.europa.eu; website 

easa.europa.eu. You may find this EASA AD 

on the EASA website at ad.easa.europa.eu. 

(4) You may view this material at the FAA,

Airworthiness Products Section, Operational 

Safety Branch, 2200 South 216th St., Des 

Moines, WA. For information on the 

availability of this material at the FAA, call 

206–231–3195. 

(5) You may view this material at the

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, 

visit www.archives.gov/federal-register/cfr/ 

ibr-locations, or email fr.inspection@

nara.gov. 

Issued on February 1, 2024. 

Victor Wicklund, 

Deputy Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2024–02442 Filed 2–6–24; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 700 

[Docket No. 240108–0002] 

RIN 0694–AJ15 

Clarifications and Updates to Defense 

Priorities and Allocations System 

Regulation 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

amend the Bureau of Industry and 

Security’s (BIS) Defense Priorities and 

Allocations System (DPAS) regulation 

by providing administrative changes to 

well-established standards and 

procedures. This proposed rule would: 

clarify existing standards and 

procedures by which BIS may provide 

Special Priorities Assistance (SPA); 

revise Schedule I to provide 

transparency and differentiation 

between other departments’ priorities 

jurisdiction and the Department of 

Commerce’s jurisdiction; and provide 

technical edits to reflect certain nonsubstantive updates since the DPAS 

regulation was last amended in 2014, 

including providing updated contact 

information, legal citations, and 

definitions. 

DATES: Comments on this proposed rule 

must be received by BIS by no later than 

March 8, 2024. 

ADDRESSES: Comments on this proposed 

rule may be submitted to the Federal 

rulemaking portal 

(www.regulations.gov). The 

regulations.gov ID for this rule is: BIS– 

2024–0002. Please refer to RIN 0694– 

AJ15 in all comments. Anyone 

submitting business confidential 

information should clearly identify any 

business confidential portion of a 

comment at the time of submission, file 

a statement justifying nondisclosure and 

referring to the specific legal authority 

claimed, and provide a non-confidential 

version of the submission. 

For comments submitted 

electronically containing business 

confidential information, the file name 

of the business confidential version 

should begin with the characters ‘‘BC.’’ 

Any page containing business 

confidential information must be clearly 

marked ‘‘BUSINESS CONFIDENTIAL’’ 

on the top of that page. The 

corresponding non-confidential version 

of those comments must be clearly 

marked ‘‘PUBLIC.’’ The file name of the 

non-confidential version should begin 


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8364 Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Proposed Rules 

with the character ‘‘P.’’ Any 

submissions with file names that do not 

begin with either a ‘‘BC’’ or a ‘‘P’’ will 

be assumed to be public and will be 

made publicly available through https:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Katie Reid at (202) 482–3634, DPAS@

bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

This proposed rule would update the 

priorities and allocations provisions set 

forth in the Defense Priorities and 

Allocations System (DPAS) regulation 

(15 CFR part 700) and implemented by 

the Department of Commerce (DOC), 

Bureau of Industry and Security (BIS) 

consistent with its authorities under 

Title I of the Defense Production Act of 

1950, as amended (50 U.S.C. 4501 et 

seq.) (DPA), as delegated by Executive 

Order 13603 (March 16, 2012). 

The DPAS has two principal 

components, priorities and allocations. 

Under the priorities component, certain 

contracts between the government and 

private parties or between private 

parties for the production or delivery of 

industrial resources are required to be 

given priority over other contracts to 

facilitate expedited delivery in 

promotion of the U.S. national defense. 

Under the allocations component, 

materials, services, and facilities may be 

allocated to promote the national 

defense. For both components, the term 

‘‘national defense’’ means programs for 

military and energy production or 

construction, homeland security, 

stockpiling, space, emergency 

preparedness, critical infrastructure 

protection and restoration, and any 

directly related activity. The term also 

includes military and critical 

infrastructure assistance to any foreign 

nation. 

Section-by-Section Analysis of the 

Clarifications and Updates That This 

Proposed Rule Would Make to the 

Existing DPAS Regulation 

The following discussion explains the 

changes that this proposed rule would 

make to the existing DPAS regulation. 

Subpart A—Purpose 

Section 700.1—Purpose of this part. 

This section would add the legal 

citation for the DPA and update the 

legal citation for the Robert T. Stafford 

Disaster Relief Emergency Assistance 

Act. This rule would also make minor 

changes to the language to be consistent 

with the DPA and Executive Order 

(E.O.) 13603. 

Subpart B—Overview 

Section 700.2—Introduction. This 

section would change reference to 

‘‘industrial items’’ to ‘‘industrial 

resources’’ in paragraph (b) in order to 

use the term ‘‘industrial resources’’ 

defined in § 700.8. Paragraph (c) would 

be revised to highlight that the DOC is 

also listed as an agency in Schedule I 

and the reason why. BIS believes that 

the additional information would 

provide a more complete description of 

Schedule I. 

Section 700.3—Priority ratings and 

rated orders. This section would add in 

paragraph (a) references to the rating 

symbol to conform with the current 

definition of priority rating in section 

700.8 as well as a description of a rating 

symbol. BIS would make these changes 

so that paragraph (a) will give a more 

complete description of a priority rating. 

It also revises paragraph (d) of this 

section by changing ‘‘items’’ to 

‘‘industrial resources’’ in order to use 

the term ‘‘industrial resources’’ defined 

in section 700.8. 

Subpart C—Definitions 

Section 700.8—Definitions. This 

section would update the legal citation 

for the DPA found in the definition of 

‘‘Defense Production Act.’’ It would 

update the legal citation for the Stafford 

Act found in the definitions of ‘‘national 

defense’’ and ‘‘Stafford Act,’’ and it 

would update the legal citation for the 

Selective Service Act found in the 

definition of ‘‘Selective Service Act.’’ 

Both the definition of ‘‘approved 

program’’ and ‘‘priorities authority’’ are 

proposed for updates in order to be 

consistent with the language of the DPA 

and E.O. 13603. It would also update 

the definition of ‘‘priority rating’’ to 

provide clarity that the DOC may assign 

the priority rating, which is consistent 

with 15 CFR part 700. It would remove 

the definition of ‘‘item’’ and update the 

definition of ‘‘industrial resources’’ to 

clarify and be consistent with the use of 

both terms in 15 CFR part 700. This 

section would include the definitions of 

‘‘facilities,’’ ‘‘materials,’’ and ‘‘services’’ 

to provide clarity and be consistent with 

the DPA. It would also provide a 

definition for ‘‘determination 

department’’ and ‘‘resources 

department’’ to provide clarity and be 

consistent with sections 201 and 202 of 

E.O. 13603 and other priorities and 

allocations regulations. It would also 

make non-substantiative changes by 

adding a comma after ‘‘administrative 

subpoenas’’ in the definition of official 

action and a comma after ‘‘chemicals’’ 

in the definition of ‘‘maintenance and 

repair and/or operating supplies 

(MRO).’’ 

Subpart D—Industrial Priorities 

Section 700.10—Authority. This 

section would revise the last sentence of 

paragraph (c)(1), to provide clarity on 

what the provisions of 15 CFR part 700 

are not applicable to by removing ‘‘those 

other items which include’’. This 

change is to be consistent with the use 

of ‘‘item’’ in 15 CFR part 700. 

Section 700.11—Priority ratings. This 

section would make a non-substantive 

change in paragraph (a)(1) by moving 

the period inside the quotation. It would 

also capitalize the word ‘‘schedule’’ in 

paragraph (b) as this word references 

Schedule I, a specific part of 15 CFR 

part 700, which is capitalized 

throughout 15 CFR part 700. It would 

also clarify the explanation of what 

‘‘A7’’ signifies to be consistent with 

Schedule I. This section would update 

paragraph (c) by replacing reference to 

the ‘‘C2’’ program identification symbol 

with ‘‘A7’’ in order to refer to the 

program identification symbol later 

referenced as an example of a priority 

rating in this paragraph. 

Section 700.12—Elements of a rated 

order. This section would replace the 

example that refers to a ‘‘DX–A4’’ 

priority rating, which is not currently in 

use, with a reference to a ‘‘DX–A2’’ 

priority rating, which is more 

commonly used, in paragraph (a)(1). It 

would also revise paragraph (a)(4) by 

changing the word ‘‘regulations’’ to 

‘‘regulation’’ to be consistent with the 

use of the word when referencing 15 

CFR part 700. 

Section 700.13—Acceptance and 

rejection of rated orders. This section 

would replace the brackets with 

parentheses in paragraph (c)(5) to be 

consistent with other sections of 15 CFR 

part 700. It would add ‘‘(1)’’ in between 

‘‘one’’ and ‘‘working day’’ in paragraph 

(d)(3) to be consistent with other parts 

of this section. 

Section 700.14—Preferential 

scheduling. This section would revise 

the ‘‘Examples’’ by changing ‘‘June 2’’ to 

‘‘June 3’’ so that the fact pattern makes 

sense. 

Section 700.15—Extension of priority 

ratings. This section would revise 

paragraphs (a), (b), and (c) by changing 

‘‘items’’ to ‘‘industrial resources’’ to 

clarify the type of resource covered by 

the extension of priority ratings 

provision. It would also revise 

paragraph (a) by adding a pinpoint 

citation to section 700.17 to add clarity 

as to which section of 15 CFR part 700 

is being referenced. This section would 

insert language in paragraphs (a) and (b) 

to clarify that all four required elements 


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of a rated order outlined in section 

700.12 must be included on each 

successive order placed to fulfill a rated 

order. It would also insert language in 

the ‘‘Example’’ to clarify that a ‘‘DO– 

A3’’ is a priority rating on a rated order. 

Section 700.16—Changes or 

cancellations of priority ratings and 

rated orders. This section would make 

one non-substantive change to 

paragraph (b) by removing the comma 

after ‘‘DO’’. 

Section 700.17—Use of rated orders. 

This section would clarify in paragraph 

(a)(4) that a ‘‘DO–A3’’ and ‘‘DO–H7’’ are 

a priority rating on a rated order. This 

section would update paragraph (b)(1) 

by adding the spelling of ‘‘90’’ and 

parentheses around ‘‘90’’ to be 

consistent with other sections of 15 CFR 

part 700. This section would revise 

paragraph (d)(1)(ii) by changing the 

word ‘‘regulations’’ to ‘‘regulation’’ to be 

consistent with the use of the word 

when referencing 15 CFR part 700. This 

section would change the value of 

$75,000 listed in paragraph (f) to 

$125,000. This change would be made 

to conform with the changes to the 

Simplified Acquisition Threshold (SAT) 

value made under the National Defense 

Authorization Act for Fiscal Year 2018 

(Pub. L. 115–91), which raised the SAT 

from $150,000 to $250,000. As a result 

of the SAT increase, U.S. firms are not 

required to place a priority rating on an 

order less than $125,000 (one-half of the 

revised SAT of $250,000), as this 

amount is greater than $75,000. BIS 

posted a notice to its website notifying 

the public of the change in the SAT after 

it was raised by statute, but is making 

the change in the regulation itself with 

this update. 

Section 700.18—Limitations on 

placing rated orders. This section would 

change the cross reference of section 

700.41 found in paragraph (a)(2)(iii) and 

paragraph (a)(2)(iv)(B) to section 700.51, 

which is the correct cross reference. It 

would also make a non-substantive 

change by adding a comma after 

‘‘expansion’’ in paragraph (a)(2)(iv)(A). 

Subpart E—Industrial Priorities for 

Energy Programs 

Section 700.21—Application for 

priority rating authority. This section 

would update the contact information 

for the Department of Energy. 

Subpart F—Allocations Actions 

Section 700.31—General Procedures. 

This section would make one nonsubstantive change in paragraph (f). 

‘‘Allocations’’ would be made singular 

to instead state ‘‘allocation’’ to be 

consistent with the definition of 

‘‘allocation order’’ in section 700.8. 

Section 700.33—Types of allocations 

orders. This section would make one 

non-substantive change in the heading 

of this section and the first paragraph. 

‘‘Allocations’’ would be made singular 

to instead state ‘‘allocation’’ to be 

consistent with the definition of 

‘‘allocation order’’ in section 700.8. 

Section 700.34—Elements of an 

allocation order. This section would 

make four non-substantive changes. In 

paragraph (a)(1), a comma would be 

added after ‘‘DO rated orders.’’ In 

paragraph (b)(1), the word ‘‘regulations’’ 

would be changed to ‘‘regulation’’ to be 

consistent with the use of the word 

when referencing 15 CFR part 700. In 

paragraph (c), ‘‘that gives’’ would be 

changed to ‘‘issued by.’’ In paragraph 

(c)(1), the word ‘‘regulations’’ would be 

changed to ‘‘regulation’’ to be consistent 

with the use of the word when 

referencing 15 CFR part 700. 

Subpart H—Special Priorities 

Assistance 

Section 700.50—General Provisions. 

This section would re-organize 

paragraph (a) to include two paragraphs 

in order to provide clarity as to when 

special priorities assistance should be 

sought from the DOC or the Delegate 

Agency. This section would change the 

word ‘‘can’’ to ‘‘may’’ in the first 

sentence of paragraph (b) to be 

consistent with the use of the word 

‘‘may’’ in other sections of 15 CFR part 

700. It would also change paragraph (c) 

to clarify special priorities assistance 

can be sought from the DOC to be 

consistent with other sections of 15 CFR 

part 700. This section would capitalize 

‘‘appendix’’ in paragraph (c) as this 

word references Appendix I, a specific 

part of 15 CFR part 700. This section 

would also include a website reference 

to FORM BIS–999 in paragraph (c). 

Section 700.51—Requests for priority 

rating authority. This section would add 

a new paragraph as paragraph (b) to 

clarify what a person should do if they 

do not have priority rating authority 

under this part and would like to 

request priority rating authority to be 

consistent with current practice and 

requirements under E.O. 13603. As a 

result of this additional paragraph, this 

section would change paragraph (b) to 

paragraph (c) and paragraph (c) to 

paragraph (d). This section would 

clarify how to request priority rating 

authority for production and 

construction equipment from Delegate 

Agencies and the DOC in paragraph 

(c)(1) to be consistent with the 

delegations issued to the Delegate 

Agencies. This section would include 

the phrase ‘‘or those authorized by the 

DOC to priority rate the prime contract’’ 

in paragraph (d)(1) and would remove 

reference to the ‘‘Delegate Agency’’ in 

paragraph (d)(2) to take into account 

that sponsorship may be obtained from 

sources other than just the Delegate 

Agencies. This section would clarify in 

paragraph (d)(4) that ‘‘Commerce’’ is 

referencing the ‘‘Department of 

Commerce.’’ 

Section 700.52—Examples of 

assistance. This section would 

emphasize in paragraph (a) that special 

priorities assistance is in support of an 

approved program and would insert 

cross references on how to request a 

determination from the appropriate 

Determination Department that a 

request is necessary or appropriate to 

promote the national defense, consistent 

with the DPA and E.O. 13603. This 

section would also add paragraph (3) to 

paragraph (a) to list another situation in 

which special priorities assistance is 

usually provided. 

Section 700.53—Criteria for 

assistance. This section would add 

‘‘Determination Department’’ to the list 

of agencies that require timely requests 

to be consistent with E.O. 13603. 

Section 700.54—Instances where 

assistance will not be provided. This 

section would add ‘‘Determination 

Departments’’ in the list of agencies that 

have input on special priorities 

assistance requests to be consistent with 

E.O. 13603. 

Section 700.55—Homeland security, 

emergency preparedness, and critical 

infrastructure protection and restoration 

assistance programs within the United 

States. This section would change the 

title of this section to ‘‘Requests for 

determination that program within the 

United States is necessary or 

appropriate to promote the national 

defense’’. The information originally in 

this section would be made into a new 

paragraph (a). This section would clarify 

what types of requests should be 

submitted to the Federal Emergency 

Management Agency (FEMA) to be 

consistent with E.O. 13603. This section 

would update the contact information 

for FEMA’s Office of Policy and 

Program Analysis in paragraph (a). This 

section would create paragraph (b) to 

provide information on requesting a 

determination from the Department of 

Defense (DOD) to be consistent with 

E.O. 13603. Paragraph (c) would be 

created to provide information on 

requesting a determination from the 

Department of Energy (DOE). 

Section 700.56—Military assistance 

programs with Canada. This section 

would update the contact information, 

including the name of the agency, for 

the Government of Canada. It would 

clarify in paragraph (g) that requests for 


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8366 Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Proposed Rules 

assistance in obtaining items in Canada 

must submit a request to the Office of 

Strategic Industries and Economic 

Security. This would provide clarity 

that while these requests may go 

through the Delegate Agency, it is not 

required. 

Section 700.57—Military assistance 

programs with other nations and 

international organizations. This 

section would revise information 

regarding the list of countries that are 

signatory to a bilateral security of 

supply arrangement with the DOD in 

paragraphs (a) and (c). The revision 

would add Denmark, Israel, Japan, 

Latvia, and Norway to the list of 

countries that are signatory to a bilateral 

security of supply arrangement with the 

DOD. It would also provide the DOD 

website for up-to-date information on 

the security of supply arrangements, 

including the current list of foreign 

nations that are signatories to the 

bilateral security of supply 

arrangements with the DOD. This 

change is needed as the list of foreign 

nations that are signatories to bilateral 

security of supply arrangements with 

the DOD has updated to include 

Denmark, Israel, Japan, Latvia, and 

Norway, and it is expected that this list 

will continually be updated. This 

section would also update the DOD 

contact information in paragraph (b) and 

paragraph (c). This section would move 

the last sentence of paragraph (2) to a 

new paragraph (3) so that the 

information provided in this sentence is 

not lost as it is different from the 

information provided in paragraph (2). 

Section 700.58—Critical 

infrastructure assistance programs to 

foreign nations and international 

organizations. This section would make 

a non-substantive change in paragraph 

(a) to add a comma after ‘‘for example.’’ 

It would update paragraph (b) by reorganizing the information into two 

paragraphs. This section would clarify 

in the new paragraph (b)(1) that requests 

for assistance should be submitted on 

Form BIS–999 to be consistent with 

other types of special priorities 

assistance requests. This section would 

clarify in the new paragraph (b)(2) what 

the request to FEMA is for to be 

consistent with E.O. 13603. It would 

also update the contact information for 

FEMA’s Office of Policy and Program 

Analysis. 

Subpart I—Official Actions 

Section 700.61—Rating 

authorizations. This section would 

clarify in paragraph (a)(1) that a rating 

authorization permits a person to place 

a priority rating on an order for an item 

which, for example, can include an item 

not normally ratable under this 

regulation. This clarification would be 

consistent with the clarifications made 

in section 700.51 and section 700.52. 

Section 700.63—Letters of 

Understanding. This section would 

change ‘‘which’’ to ‘‘that’’ in paragraph 

(a) as well as revise information in the 

parentheses to add ‘‘e.g.,’’ and remove 

‘‘and’’ to clarify this is an example list 

of parties. It would also add 

‘‘Determination Department’’ to the 

example list of parties. 

Subpart J—Compliance 

Section 700.70—General provisions. 

This section would remove specific 

penalties information for violating the 

DPA, and instead directly reference the 

penalties’ sections within the DPA. 

Section 700.71—Audits and 

investigations. This section would make 

one non-substantive change to 

paragraph (a). A comma after ‘‘other 

writings’’ would be added. 

Section 700.74—Violations, penalties, 

and remedies. This section would 

remove specific penalties information 

for violating the DPA in paragraph (a), 

and instead directly reference the 

penalties sections of the DPA. It would 

also change the word ‘‘Sections’’ in 

paragraph (a) to ‘‘sections’’ as this word 

references sections of the DPA, which 

begins with a lower case ‘‘s’’ throughout 

15 CFR part 700. This section would 

change ‘‘also, for example’’ to ‘‘e.g.,’’ in 

paragraph (c) to be consistent with how 

15 CFR part 700 refers to examples. 

Subpart K—Adjustments, Exceptions, 

and Appeals 

Section 700.80—Adjustments or 

exceptions. This section would make 

one non-substantive change to 

paragraph (c). The number ‘‘25’’ would 

be moved behind the word ‘‘twentyfive’’ and put in parentheses, and the 

parentheses would be removed around 

the word ‘‘twenty-five’’. This proposed 

change is to be consistent with other 

sections of 15 CFR part 700. 

Section 700.81—Appeals. This 

section would make one nonsubstantive change to paragraph (b). In 

both sentences, the number ‘‘45’’ would 

be put in parentheses and the word 

‘‘forty-five’’ would be added. This 

proposed change is to be consistent with 

other sections of 15 CFR part 700. 

Subpart L—Miscellaneous Provisions 

Section 700.93—Communications. 

This section would make one nonsubstantive change by moving ‘‘and’’ to 

after ‘‘explanatory information,’’. It 

would add the address of the Office of 

Strategic Industries and Economic 

Security. It would also add ‘‘special’’ in 

front of ‘‘priorities assistance’’ in the 

last paragraph to be consistent with this 

part. 

Schedule I to Part 700—Approved 

Programs and Delegate Agencies 

This section would revise the first 

paragraph to clarify that Schedule I is a 

list of approved programs, which is a 

defined term in section 700.8. A 

sentence would be added that also 

clarifies that use of the authority under 

15 CFR part 700 requires written 

authorization by the DOC to be 

consistent with other sections of 15 CFR 

part 700. It would also move footnote 2 

to the end of the first paragraph and 

adds a cross reference to section 700.50 

for additional information. 

This section would update the 

description of the ‘‘A2’’ program 

identification symbol from ‘‘Missile’’ to 

‘‘Missile and Space’’ in Schedule I in 

order to be consistent with DOD’s 

program determination that the 

approved program that uses the ‘‘A2’’ 

program identification symbol includes 

both Missile and Space programs. 

This section would remove the ‘‘C1’’ 

program identification symbol for food 

resources in Schedule I as ‘‘food 

resources (combat rations)’’ now falls 

under the jurisdiction of the Department 

of Agriculture’s (USDA) Agriculture 

Priorities and Allocation System (APAS) 

regulation (7 CFR part 789). Although 

items that fell under this program 

identification symbol were always food 

resources, the authority for which has 

always been delegated to USDA under 

E.O. 13603 and its predecessors, USDA 

did not have a published regulation to 

enact that delegated authority. 

Therefore, under an agreement between 

USDA and the DOC, DOD was permitted 

to place ratings using the ‘‘C1’’ symbol 

for combat rations using the DPAS. 

However, in 2015, USDA published the 

APAS regulation and DOD now uses 

that authority to place priority ratings 

on combat rations, and no longer uses 

the previous agreement to rate them 

under the DPAS. 

This section would update the 

description of the ‘‘J1’’ program 

identification symbol to ‘‘Co-Production 

Programs’’ in Schedule I to reflect 

DOD’s update to the approved program. 

DOD made a program determination 

under E.O. 13603 to expand the 

approved program that uses the ‘‘J1’’ 

program identification symbol from ‘‘F– 

16 Co-Production Program’’ to ‘‘CoProduction Programs.’’ This change 

expands DOD’s use of this program 

identification symbol to other programs 

outside of the F–16 program. 

This section would also make a nonsubstantive change to the description of 


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the ‘‘H1’’ program identification symbol 

to change ‘‘section’’ to the symbol. 

This section would update the 

description of the ‘‘N8’’ program 

identification symbol in Schedule I from 

‘‘Miscellaneous’’ to ‘‘Continuity of 

Government’’ in order to clarify DHS’s 

program determination is for Continuity 

of Government-related programs. 

This section would also add an 

‘‘Other Programs’’ section to Schedule I, 

which includes the program 

identification symbols for national 

defense programs administered by other 

departments but that might, in some 

instances, need industrial resources that 

are under the jurisdiction of the DPAS. 

BIS proposes making these revisions to 

Schedule I to help provide transparency 

and ease between other departments’ 

priorities authority and the DOC’s 

priorities authority when a Delegate 

Agency needs industrial resources to 

implement any approved program 

related to other resources (i.e., food 

resources, energy resources, health 

resources, civil transportation, or water 

resources) subject to other departments’ 

priorities authority and authorized for 

priorities support by the appropriate 

department. 

Four departments are administering 

priorities and allocations regulations 

similar to the DPAS for resources under 

their jurisdictions as outlined in E.O. 

13603. Those departments and the 

resources under their jurisdiction are: 

USDA, food resources; DOE, energy 

resources; the Department of Health and 

Human Services (HHS), health 

resources; and the Department of 

Transportation (DOT), civil 

transportation. Persons placing priority 

ratings on contracts and orders pursuant 

to those systems may need industrial 

resources that are subject to DPAS in 

support of those contracts or orders. For 

example, spare tires or engine parts 

(industrial resources under DPAS 

jurisdiction) might be needed to support 

a contract to provide civil transportation 

resources. 

In administering the DPAS, BIS has 

noted that the Departments of Defense, 

Energy, Homeland Security, and Health 

and Human Services and the General 

Services Administration are the U.S. 

Government agencies that most 

frequently procure industrial resources 

needed to implement approved national 

defense programs. Accordingly, BIS has 

delegated to those five agencies certain 

DPAS authority to place priority ratings 

on contracts and orders for industrial 

resources in support of approved 

national defense programs (Delegate 

Agencies). BIS expects that those five 

agencies are also likely to be the 

agencies that most frequently procure 

any industrial resources that may be 

needed to implement any future 

approved programs related to food 

resources, energy resources, health 

resources, civil transportation, and 

water resources. 

Considering these facts and to assist 

in developing ‘‘a consistent and unified 

Federal priorities and allocations 

system’’ as called for by Section 

101(d)(2) of the DPA, BIS, as part of 

those delegations, has authorized these 

Delegate Agencies to place priority 

ratings on contracts and orders for 

industrial resources needed to 

implement any program related to food 

resources, energy resources, health 

resources, civil transportation, or water 

resources determined as necessary or 

appropriate to promote the national 

defense and authorized for priorities 

support by the appropriate resource 

agency (i.e., Departments of Agriculture, 

Energy, Health and Human Services, 

and Transportation). Therefore, Delegate 

Agencies are authorized to use the same 

program identification symbol on such 

contracts and orders for industrial 

resources as authorized by the 

appropriate resource agency to support 

the approved program. However, any 

priority rated contract or order for 

industrial resources placed to 

implement an approved program related 

to food resources, energy resources, 

health resources, civil transportation, or 

water resources remains subject to the 

DPAS. The addition of the second 

paragraph before the Schedule I and the 

‘‘Other Programs’’ section within 

Schedule I reflects this delegated 

authority. 

Defense Production Act of 1950, as 

Amended 

On September 8, 1950, the President 

signed the Defense Production Act of 

1950 (DPA), as amended into law. Title 

VII of the DPA includes a sunset clause 

for the majority of the DPA authorities 

which require periodic reauthorization. 

On August 13, 2018, the President 

signed the John S. McCain National 

Defense Authorization Act for Fiscal 

Year 2019 into law, which reauthorized 

the DPA, 50 U.S.C. 4501 et seq., through 

September 30, 2025. The DPA provides 

the legal basis for BIS’s principal 

authorities and serves as the authority 

under which BIS issues this proposed 

rule. 

Expected Impact of the Proposed Rule 

BIS believes this rule merely provides 

clarifications and transparency to 

Federal, state, local, tribal, and 

territorial government agencies, foreign 

governments, and the public to ensure 

ease of understanding and 

implementation of established 

procedures and would not have a 

significant economic impact on 

government agencies or the public. 

The administrative changes proposed 

are for ease, clarity, and transparency of 

the existing standards and procedures 

used to authorize and require priority 

performance of certain contracts or 

orders that promote the national defense 

over other contracts and orders. 

The amendments proposed provide 

technical, non-substantive 

administrative changes to ensure 

consistency with the Defense 

Production Act of 1950 (DPA) and E.O. 

13603; provide clarity on procedures for 

the placement, acceptance, and 

performance of the Defense Priorities 

and Allocations System (DPAS) priority 

rated orders; and provide transparency 

to the process for parties to request SPA. 

The standards and process under 

which a rated order is authorized, 

placed, or performed on would not be 

changed. There are no proposed 

modifications to the procedures for the 

placement, acceptance, and 

performance of rated orders or for the 

allocation of materials, services, and 

facilities. Firms would not be required 

to reduce the total volume of orders, or 

require the recipient of a rated order to 

reduce prices or provide rated orders 

with more favorable terms than 

comparable unrated orders. Nor to the 

changes proposed amend the 

requirements or procedures for 

requesting Special Priorities Assistance 

(SPA). 

Rulemaking Requirements 

1. This rule has been determined to be 

a significant regulatory action for 

purposes of Executive Order (E.O.) 

12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection of information subject 

to the requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. With this rule, 

BIS is proposing changes to an existing 

approved information collection, 

Request for Special Priorities Assistance 

(OMB Control Number 0694–0057) 

which will be updated to reflect the 

changes discussed. 

This collection currently carries a 

burden estimate of 30 minutes for an 

electronic submission for a total burden 

estimate of 22 hours. BIS believes the 

total burden hours are not expected to 

materially increase as a result of this 


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rule. The current version of this 

collection—including all background 

materials—can be found at https://

www.reginfo.gov/public/do/PRAMain by 

using the search function to enter either 

the title of the collection or the OMB 

Control Number. BIS is proposing 

changes to the form as discussed below. 

The citation in the top paragraph 

would be updated from ‘‘50 U.S.C. App. 

4455(d)’’ to ‘‘50 U.S.C. 4555(d).’’ 

Block 1.a would be updated to 

include a field for country. BIS can 

currently receive applications from 

persons located outside of the United 

States. This proposed change would 

insert a field for an Applicant to provide 

the country in which the Applicant 

resides. 

Block 1.b would be updated to 

include a field for country and an email 

address. This proposed change would 

insert a field for an Applicant customer, 

if not an end-user Government agency, 

to provide the country in which the 

Applicant customer resides as well as 

an email address for the Applicant 

customer. 

Block 3 would be updated to include 

‘‘manufacturer’’ as part of the 

description of the item. This proposed 

change is needed when the item the 

Applicant is requiring assistance with is 

not manufactured by the Applicant’s 

supplier listed in Block 4.a. This may 

occur, for example, if an Applicant is 

procuring the item through a distributor. 

Block 4.a is updated to include a field 

for the country of the applicant’s 

supplier. Applicants may procure items 

that they need assistance with through 

foreign suppliers. For example, foreign 

applicants may request assistance with 

an item manufactured in the United 

States that they acquire through a 

foreign distributor. If an applicant is 

requesting DPAS rating authority, BIS 

requires the country information of the 

supplier listed in Block 4.a to ensure 

that the appropriate entities are 

authorized to place priority rated 

contracts and orders with suppliers 

physically located in the United States. 

Block 8 would be updated to remove 

the information listed in the parentheses 

now that electronic signatures are 

available. 

Block 9.g would be updated to remove 

specific references to the Department of 

Defense or foreign requests to allow for 

flexibility for each Determination 

Department request process. 

Page 3 of Form BIS–999 titled, 

‘‘INSTRUCTIONS FOR SUBMITTING 

FORM BIS–999’’ would be updated for 

ease of understanding and consistency 

with 15 CFR part 700, including the 

changes made by this proposed rule, 

and the delegations to the Delegate 

Agencies from the Department of 

Commerce. The Office of Strategic 

Industries and Economic Security’s 

email address is also added as an option 

on how to submit Form BIS–999. 

A. Public Reporting Burden 

Public reporting burden specific to 

this proposed rule and the revision to 

collection of information previously 

approved is voluntary and includes the 

time for reviewing instructions, 

searching existing data sources, 

gathering and maintaining the data 

needed, and completing and reviewing 

the collection of information. 

Respondents: 22. 

Responses per Respondent: 1. 

Total Responses: 22. 

Hours per Response: 30 minutes. 

Total Burden Hours: 11. 

Public comments are particularly 

invited on: Whether this collection of 

information is necessary and whether it 

will have practical utility; whether our 

estimate of the public burden of this 

collection of information is accurate and 

based on valid assumptions and 

methodology; and ways to enhance the 

quality, utility, and clarity of the 

information to be collected. 

Requesters may obtain a copy of the 

information collection documents from 

Mark Crace at Mark.Crace@bis.doc.gov. 

Please cite ‘‘Information Collection 

0694–0057, in all correspondence. 

3. These proposed changes do not 

contain policies with federalism 

implications as that term is defined in 

E.O. 13132. 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 5 U.S.C. 

601 et seq., generally requires an agency 

to prepare a regulatory flexibility 

analysis of any rule subject to the notice 

and comment rulemaking requirements 

under the Administrative Procedure Act 

(5 U.S.C. 553) or any other statute. 

Under section 605(b) of the RFA, 

however, if the head of an agency 

certifies that a rule will not have a 

significant impact on a substantial 

number of small entities, the statute 

does not require the agency to prepare 

a regulatory flexibility analysis. 

Pursuant to section 605(b), the Chief 

Counsel for Regulation, Department of 

Commerce, certified to the Chief 

Counsel for Regulation, Small Business 

Administration that this proposed rule 

will not have a significant impact on a 

substantial number of small entities for 

the reasons explained below. No other 

law requires such an analysis. 

Consequently, no regulatory flexibility 

analysis is required, and none has been 

prepared. The factual support for this 

certification is provided below. 

Number of Small Entities 

Small entities include small 

businesses, small organizations, and 

small governmental jurisdictions. For 

purposes of assessing the impacts of this 

proposed rule on small entities, a small 

business, as described in the Small 

Business Administration’s Table of 

Small Business Size Standards Matched 

to North American Industry 

Classification System Codes (Effective 

March 17, 2023), has a maximum 

annual revenue of $47 million and a 

maximum of 1,500 employees (for some 

business categories, these numbers are 

lower). A small governmental 

jurisdiction is a government of a city, 

town, school district or special district 

with a population of less than 50,000. A 

small organization is any not-for-profit 

enterprise which is independently 

owned and operated and is not 

dominant in its field. 

This proposed rule would make nonsubstantive changes to clarify wellestablished standards and procedures 

under which BIS (or agencies to which 

BIS delegates authority) would 

authorize prioritization of certain orders 

or contracts as well as criteria under 

which BIS would issue orders allocating 

resources or production facilities. This 

proposed rule does not amend 

requirements for organizations that 

enter into contracts to supply materials, 

services and facilities that are necessary 

or appropriate for the national defense. 

Rather, this proposed rule would 

provide transparency to organizations 

on the DPAS to ensure ease of 

understanding and implementation of 

established processes. 

BIS’s experience in administering its 

priorities authority indicates that forprofit businesses are the organizations 

that provide materials, services, and 

facilities necessary or appropriate to 

promote the national defense. If it 

becomes necessary to exercise 

allocations authority, the same types of 

materials, services, and facilities and the 

same types of businesses are the ones 

likely to be affected. Therefore, BIS 

believes that two of the categories of 

small entities identified by the RFA, 

small organizations and small 

government jurisdictions, are unlikely 

to experience any economic impact as a 

result of this proposed rule. However, 

BIS has no basis on which to estimate 

the number of small businesses that are 

likely to be affected by this proposed 

rule. 


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Impact 

BIS believes that any impact that this 

proposed rule might have on small 

businesses would be minor. This 

proposed rule would not change the 

processes for the placement, acceptance, 

and performance of rated orders or for 

the allocation of materials, services, and 

facilities. Nor does this proposed rule 

change the procedures to request special 

priorities assistance. BIS expects that 

this proposed rule would not result in 

any increase in the use of rated orders. 

The standards under which a rated 

order would be issued are not changed 

by this proposed rule. Rather, this 

proposed rule provides simplifications 

and clarifications to the placement, 

acceptance, and performance of rated 

orders and the SPA process to ensure 

ease of understanding and 

implementation of established 

procedures. 

Further, although rated orders could 

require a firm to fill one order prior to 

filling another, they would not require 

a reduction in the total volume of 

orders, nor would they require the 

recipient to reduce prices or provide 

rated orders with more favorable terms 

than a similar non-rated order. Under 

these circumstances, the economic 

effects on the rated order recipient of 

substituting one order for another are 

likely to be offsetting, resulting in no net 

loss. 

Conclusion 

Although BIS cannot determine 

precisely the number of small entities 

that would be affected by this proposed 

rule, BIS believes that the overall impact 

on such entities would not be 

significant as this proposed rule would 

provide administrative changes to wellestablished standards and procedures. 

Consequently, this proposed rule would 

not likely increase the number of rated 

contracts and orders compared to the 

number being placed currently. BIS 

believes that the expected unchanged 

level of contract and order 

prioritizations, planning and review 

requirements and requirements of 

section 701 of the DPA, which are 

directed at protecting the interests of 

small businesses, provide reasonable 

assurance that any impact on small 

business will not be significant. For the 

reasons set forth above, the Chief 

Counsel for Regulations at the 

Department of Commerce certified that 

this action would not have a significant 

impact on a substantial number of small 

entities. 

List of Subjects in 15 CFR Part 700 

Administrative practice and 

procedure, Business and industry, 

Government contracts, National defense, 

Reporting and recordkeeping 

requirements, Strategic and critical 

materials. 

Accordingly, 15 CFR part 700 of the 

DPAS regulation, proposes to amend as 

follows: 

PART 700—DEFENSE PRIORITIES 

AND ALLOCATIONS SYSTEM 

■ 1. The authority citation for 15 CFR 

part 700 continues to read as follows: 

Authority: 50 U.S.C. 4501 et seq.; 42 

U.S.C. 5195, et seq.; 50 U.S.C. 3816; 10 U.S.C. 

2538; 50 U.S.C. 82; E.O. 12656, 53 FR 226, 

3 CFR, 1988 Comp., p. 585; E.O. 12742, 56 

FR 1079, 3 CFR, 1991 Comp., p. 309; E.O. 

13603, 77 FR 16651, 3 CFR, 2012 Comp., p. 

225. 

■ 2. Section 700.1 is amended by 

revising the second and third sentences 

to read as follows: 

§ 700.1 Purpose of this part. 

* * * The DPAS implements the 

priorities and allocations authority of 

the Defense Production Act (50 U.S.C. 

4501 et seq.), delegated to the 

Department of Commerce under 

Executive Order 13603, including use of 

that authority to support emergency 

preparedness activities pursuant to Title 

VI of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act 

(42 U.S.C. 5121 et seq.), and the 

priorities authority of the Selective 

Service Act and related statutes, all with 

respect to industrial resources. The 

DPAS establishes procedures for the 

placement, acceptance, and 

performance of priority rated contracts 

and orders (other than contracts of 

employment) and for the allocation of 

materials, services, and facilities for 

approved programs. * * * 

■ 3. Revise section 700.2 to read as 

follows: 

§ 700.2 Introduction. 

(a) Certain national defense and 

energy programs (including military, 

emergency preparedness, homeland 

security, and critical infrastructure 

protection and restoration activities) 

may be eligible for priorities and 

allocations support as determined by a 

Determination Department. 

(b) The Department of Commerce 

administers the DPAS and may exercise 

priorities and allocations authority to 

ensure the timely delivery of industrial 

resources to meet approved program 

requirements. 

(c) The Department of Commerce has 

delegated authority to place priority 

ratings on contracts or orders necessary 

or appropriate to promote the national 

defense to certain government agencies 

that issue such contracts or orders. Such 

delegations include authority to 

authorize recipients of rated orders to 

place ratings on contracts or orders to 

contractors, subcontractors, and 

suppliers. Schedule I to this part 

includes a list of agencies to which the 

Department of Commerce has delegated 

authority. The Department of Commerce 

is also listed as an agency for programs 

where its authorization is necessary to 

place rated orders. 

■ 4. Section 700.3 is amended by 

revising paragraphs (a) and (d) to read 

as follows: 

§ 700.3 Priority ratings and rated orders. 

(a) Rated orders are identified by a 

priority rating, which consists of a 

rating symbol (DO or DX), and a 

program identification symbol. Rated 

orders take precedence over all unrated 

orders as necessary to meet required 

delivery dates. Rating symbols indicate 

the level of priority. Among rated 

orders, DX rated orders take precedence 

over DO rated orders. Program 

identification symbols indicate which 

approved program is attributed to the 

rated order. 

* * * * * 

(d) Persons who receive rated orders 

must in turn place rated orders with 

their suppliers for the industrial 

resources they need to fill the orders. 

This provision ensures that suppliers 

will give priority treatment to rated 

orders from contractor to subcontractor 

to suppliers throughout the 

procurement chain. 

* * * * * 

■ 5. Section 700.8 is amended by 

■ a. Adding in alphabetical order the 

definitions of ‘‘Determination 

Department’’, ‘‘Facilities’’, ‘‘Materials’’, 

‘‘Resource Department’’, and 

‘‘Services’’; 

■ b. Revising the definitions of 

‘‘Approved program’’, ‘‘Defense 

Production Act’’, ‘‘Industrial resources’’, 

‘‘National defense’’, ‘‘Official action’’, 

‘‘Priorities authority’’, ‘‘Priority rating’’, 

‘‘Selective Service Act’’, and ‘‘Stafford 

Act’’; and 

■ c. Removing the definition of ‘‘Item’’. 

Revisions and additions read as 

follows: 

§ 700.8 Definitions. 

* * * * * 

Approved program. A program 

determined in writing 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 


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Homeland Security, under the authority 

of the Defense Production Act and 

Executive Order 13603, or the Selective 

Service Act and Executive Order 12742. 

* * * * * 

Defense Production Act. The Defense 

Production Act of 1950, as amended (50 

U.S.C. 4501 et seq.). 

* * * * * 

Determination Department. Any of 

the three Federal departments whose 

head is delegated authority by the 

President under section 202 of 

Executive Order 13603 to determine in 

writing that a program is necessary or 

appropriate to promote the national 

defense (referred to as ‘‘approved 

program’’): 

(1) The Secretary of Defense with 

respect to military production and 

construction, military assistance to 

foreign nations, military use of civil 

transportation, stockpiles managed by 

the Department of Defense, space, and 

directly related activities; 

(2) The Secretary of Energy with 

respect to energy production and 

construction, distribution and use, and 

directly related activities; and 

(3) The Secretary of Homeland 

Security with respect to all other 

national defense programs, including 

civil defense and continuity of 

Government. 

* * * * * 

Facilities. The term ‘‘facilities’’ 

includes all types of buildings, 

structures, or other improvements to 

real property (but excluding farms, 

churches or other houses of worship, 

and private dwelling houses), and 

services relating to the use of any such 

building, structure, or other 

improvement. 

* * * * * 

Industrial resources. All materials, 

services, and facilities, including 

construction materials, the authority for 

which has not been delegated to other 

agencies under Executive Order 13603. 

This term may also be referred to as 

‘‘item’’ in this part. 

* * * * * 

Materials. Includes: 

(1) Any raw materials (including 

minerals, metals, and advanced 

processed materials), commodities, 

articles, components (including critical 

components), products, and items of 

supply; and 

(2) Any technical information or 

services ancillary to the use of any such 

materials, commodities, articles, 

components, products, or items. 

National defense. Programs for 

military and energy production or 

construction, military or critical 

infrastructure assistance to any foreign 

nation, homeland security, 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. 5121 et seq.) 

and critical infrastructure protection 

and restoration. 

Official action. An action taken by the 

Department of Commerce under the 

authority of the Defense Production Act, 

the Selective Service Act and related 

statutes, and this part. Such actions 

include the issuance of rating 

authorizations, directives, letters of 

understanding, demands for 

information, inspection authorizations, 

administrative subpoenas, and 

allocation orders. 

* * * * * 

Priorities authority. The authority of 

the Department of Commerce, pursuant 

to section 101 of the Defense Production 

Act, to require priority performance of 

contracts and orders (other than 

contracts of employment) for industrial 

resources for use in approved programs. 

Priority rating. An identifying code, 

consisting of the rating symbol and the 

program identification symbol, assigned 

by the Department of Commerce, a 

Delegate Agency, or authorized person 

and placed on all rated orders. 

* * * * * 

Resource Department. Any of the six 

Federal departments whose head is 

delegated authority by the President 

under section 201 of Executive Order 

13603 to require acceptance and priority 

performance of contracts or orders 

(other than contracts of employment) to 

promote the national defense over 

performance of any other contracts or 

orders, and to allocate materials, 

services, and facilities as deemed 

necessary or appropriate to promote the 

national defense (referred to as 

‘‘approved program’’): 

(1) The Secretary of Agriculture with 

respect to food resources, food resource 

facilities, livestock resources, veterinary 

resources, plant health resources, and 

the domestic distribution of farm 

equipment and commercial fertilizer; 

(2) The Secretary of Energy with 

respect to all forms of energy; 

(3) The Secretary of Health and 

Human Services with respect to health 

resources; 

(4) The Secretary of Transportation 

with respect to all forms of civil 

transportation; 

(5) The Secretary of Defense with 

respect to water resources; and 

(6) The Secretary of Commerce with 

respect to all other materials, services, 

and facilities, including construction 

materials (referred to as ‘‘industrial 

resources’’). 

* * * * * 

Services. Includes any effort that is 

needed for or incidental to: 

(1) The development, production, 

processing, distribution, delivery, or use 

of an industrial resource or a critical 

technology item; 

(2) The construction of facilities; or 

(3) Other national defense programs 

and activities. 

Selective Service Act. Section 18 of 

the Selective Service Act of 1948 (50 

U.S.C. 3816). 

* * * * * 

Stafford Act. Title VI (Emergency 

Preparedness) of the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act, as amended (42 U.S.C. 

5121 et seq.). 

* * * * * 

■ 6. Section 700.10 is amended by 

revising the last sentence in paragraph 

(c)(1) to read as follows: 

§ 700.10 Authority. 

* * * * * 

(c) Jurisdiction limitations. 

(1) * * * Unless otherwise agreed to 

by the concerned agencies, the 

provisions of this part are not applicable 

to: 

* * * * * 

■ 7. Section 700.11 is amended by 

revising paragraph (a)(1), the second 

and third sentences of paragraph (b), 

and the first sentence of paragraph (c) to 

read as follows: 

§ 700.11 Priority ratings. 

(a) Levels of priority. 

(1) There are two levels of priority 

established by this regulation, identified 

by the rating symbols ‘‘DO’’ and ‘‘DX.’’ 

* * * * * 

(b) * * * The list of approved 

programs and their identification 

symbols is found in schedule I to this 

part. For example, A1 identifies defense 

aircraft programs and A7 signifies 

defense electronic and communications 

equipment programs. * * * 

(c) Priority ratings. A priority rating 

consists of the rating symbol—DO and 

DX—and the program identification 

symbol, such as A1, A7, or N1. * * * 

■ 8. Section 700.12 is amended by 

revising paragraphs (a)(1) and (a)(4) to 

read as follows: 

§ 700.12 Elements of a rated order. 

(a) * * * 

(1) The appropriate priority rating and 

program identification symbol (e.g., 

DO–A1, DX–A2, DO–N1). 

* * * * * 

(4) A statement that reads in 

substance: ‘‘This is a rated order 


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certified for national defense use and 

you are required to follow all the 

provisions of the Defense Priorities and 

Allocations System regulation (15 CFR 

part 700).’’ 

* * * * * 

■ 9. Section 700.13 is amended by 

revising paragraphs (c)(5) and (d)(3) to 

read as follows: 

§ 700.13 Acceptance and rejection of rated 

orders. 

* * * * * 

(c) * * * 

(5) If acceptance of a rated order or 

performance against a rated order would 

violate any other regulation, official 

action, or order of the Department of 

Commerce issued under the authority of 

the Defense Production Act or the 

Selective Service Act and related 

statutes (see § 700.75). 

(d) * * * 

(3) 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 

(hard copy) or electronic confirmation 

must be provided within one (1) 

working day of the verbal notice. 

■ 10. Section 700.14 is amended by 

revising the second sentence in 

‘‘Examples’’ to paragraph (b) to read as 

follows: 

§ 700.14 Preferential Scheduling. 

* * * * * 

(b) * * * 

Examples: 

* * * If a DX rated order is received 

calling for delivery on July 15 and a 

person has a DO rated order requiring 

delivery on June 3 and operations can 

be scheduled to meet both deliveries, 

there is no need to alter production 

schedules to give any additional 

preference to the DX rated order. * * * 

* * * * * 

■ 11. Revise Section 700.15 to read as 

follows: 

§ 700.15 Extension of priority ratings. 

(a) A person must use rated orders 

with suppliers to obtain industrial 

resources needed to fill a rated order. 

All elements of a rated order outlined in 

section 700.12 must be included on the 

rated order. The person must use the 

priority rating indicated on the 

customer’s rated order, except as 

otherwise provided in this part (see 

§ 700.17) or as directed by the 

Department of Commerce. 

Example: 

If a person is in receipt of a rated 

order with a priority rating of DO–A3 

for a navigation system and needs to 

purchase semiconductors for its 

manufacture, that person must use a 

DO–A3 priority rating to obtain the 

needed semiconductors. 

(b) The required elements of a rated 

order outlined in section 700.12 must be 

included on each successive order 

placed to obtain industrial resources 

needed to fill a customer’s rated order. 

Therefore, the inclusion of the rating 

will continue from contractor to 

subcontractor to supplier throughout the 

entire supply chain. 

(c) A person must use rated orders 

with suppliers to obtain industrial 

resources needed to fill an emergency 

preparedness rated order. That person 

must require acceptance or rejection, 

and transmission of that acceptance or 

rejection by the supplier within the time 

limit stated in the rated order that is 

being filled. 

■ 12. Section 700.16 is amended by 

revising paragraph (b) to read as follows: 

§ 700.16 Changes or cancellations of 

priority ratings and rated orders. 

* * * * * 

(b) If an unrated order is amended so 

as to make it a rated order, or a DO 

rating is changed to a DX rating, the 

supplier must give the appropriate 

preferential treatment to the order as of 

the date the change is received by the 

supplier. 

* * * * * 

■ 13. Section 700.17 is amended by 

revising paragraphs (a)(4), (b)(1), 

(d)(1)(ii), and (f) to read as follows: 

§ 700.17 Use of rated orders. 

(a) * * * 

(4) MRO needed to produce the 

finished items to fill rated orders. 

However, for MRO, the priority rating 

used must contain the program 

identification symbol H7 along with the 

rating symbol contained on the 

customer’s rated order. For example, a 

person in receipt of a rated order with 

a priority rating of DO–A3 rated order, 

who needs MRO, would place a rated 

order with a priority rating of DO–H7 

rated order with the person’s supplier. 

(b) * * * 

(1) The order must be placed within 

ninety (90) days of the date of use of the 

inventory. 

* * * * * 

(d) * * * 

(1) * * * 

(ii) The elements of a rated order, as 

required by § 700.12, are included on 

the order with the statement required in 

§ 700.12(a)(4) modified to read in 

substance: ‘‘This purchase order 

contains rated order quantities certified 

for national defense use, and you are 

required to follow all the provisions of 

the Defense Priorities and Allocations 

System regulation (15 CFR part 700) as 

it pertains to the rated quantities.’’ 

* * * * * 

(f) A person is not required to place 

a priority rating on an order for less than 

$125,000, or one half of the Simplified 

Acquisition Threshold (as established in 

the Federal Acquisition Regulation 

(FAR)) (see FAR section 2.101), 

whichever amount is greater, provided 

that delivery can be obtained in a timely 

fashion without the use of the priority 

rating. 

■ 14. Section 700.18 is amended by 

revising paragraphs (a)(2)(iii), 

(a)(2)(iv)(A), and (a)(2)(iv)(B) to read as 

follows: 

§ 700.18 Limitations on placing rated 

orders. 

(a) * * * 

(2) * * * 

(iii) Items in advance of the receipt of 

a rated order, except as specifically 

authorized by the Department of 

Commerce (see § 700.51(c) for 

information on obtaining authorization 

for a priority rating in advance of a rated 

order); or 

(iv) * * * 

(A) Items for plant improvement, 

expansion, or construction, unless they 

will be physically incorporated into a 

construction project covered by a rated 

order; or 

(B) Production or construction 

equipment or items to be used for the 

manufacture of production equipment 

(for information on requesting priority 

rating authority, see § 700.51). 

* * * * * 

■ 15. Section 700.21 is amended by 

revising the last sentence of paragraph 

(a) to read as follows: 

§ 700.21 Application for priority rating 

authority. 

(a) * * *Further information may be 

obtained from the Department of 

Energy, Office of Cybersecurity, Energy 

Security, and Emergency Response, 

1000 Independence Avenue SW, 

Washington, DC 20585; Telephone: 

(202) 586–8100; Email: askcr@

hq.doe.gov. 

* * * * * 

■ 16. Section 700.31 is amended by 

revising paragraph (f) to read as follows: 

§ 700.31 General procedures. 

* * * * * 

(f) A detailed description of the 

provisions that will be included in the 

allocation orders, including the type(s) 

of allocation orders, the percentages or 

quantity of capacity or output to be 

allocated for each purpose, the 


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relationship with previously or 

subsequently received priority rated and 

unrated contracts and orders, and the 

duration of the allocation action (e.g., 

anticipated start and end dates); 

* * * * * 

■ 17. Section 700.33 is amended by 

revising the section heading and 

introductory text to read as follows: 

§ 700.33 Types of allocation orders. 

There are three types of allocation 

orders available for communicating 

allocation actions. 

* * * * * 

■ 18. Section 700.34 is amended by 

revising paragraphs (a)(1), (b)(1), (c) 

introductory text, and (c)(1) to read as 

follows: 

§ 700.34 Elements of an allocation order. 

* * * * * 

(a) * * * 

(1) A detailed description of the 

required allocation action(s), including 

its relationship to previously or 

subsequently received DX rated orders, 

DO rated orders, and unrated orders. 

* * * * * 

(b) * * * 

(1) A statement that reads in 

substance: ‘‘This is an allocation order 

certified for national defense use. [Insert 

the name of the person receiving the 

order] is required to comply with this 

order, in accordance with the provisions 

of the Defense Priorities and Allocations 

System regulation (15 CFR part 700).’’ 

* * * * * 

(c) Elements to be included in an 

allocation order issued by constructive 

notice through publication in the 

Federal Register. 

(1) A statement that reads in 

substance: ‘‘This is an allocation order 

certified for national defense use. [Insert 

the name(s) of the person(s) to whom 

the order applies or a description of the 

class of persons to whom the order 

applies] is (are) required to comply with 

this order, in accordance with the 

provisions of the Defense Priorities and 

Allocations System regulation (15 CFR 

part 700).’’ 

* * * * * 

■ 19. Revise section 700.50 to read as 

follows: 

§ 700.50 General provisions. 

(a) Once a priority rating has been 

authorized pursuant to this part, further 

action by the Department of Commerce 

generally is not needed. However, it is 

anticipated that from time-to-time 

problems will occur. In this event, a 

person should immediately contact the 

appropriate contract administration 

officer or the Department of Commerce 

for guidance or assistance. Special 

priorities assistance is a service 

provided to alleviate problems that do 

arise. 

(1) If additional formal aid is needed 

for a rated order placed by a Delegate 

Agency, special priorities assistance 

should be sought from the Delegate 

Agency through the contract 

administration officer. If the Delegate 

Agency is unable to resolve the problem 

or to authorize the use of a priority 

rating and believes additional assistance 

is warranted, the Delegate Agency may 

forward the request to the Department of 

Commerce for action. 

(2) If additional formal aid is needed 

for a rated order placed by other 

authorized persons, special priorities 

assistance should be sought from the 

Department of Commerce. 

(b) Special priorities assistance may 

be provided for any reason consistent 

with this part, such as assisting in 

obtaining timely deliveries of items 

needed to satisfy rated orders or 

authorizing the use of priority ratings on 

orders to obtain items not otherwise 

ratable under this part. If the 

Department of Commerce is unable to 

resolve the problem or to authorize the 

use of a priority rating and believes 

additional assistance is warranted, the 

Department of Commerce may forward 

the request to another agency, identified 

in § 700.10(c), as appropriate, for action. 

(c) A request for special priorities 

assistance must be submitted on Form 

BIS–999 (OMB control number 0694– 

0057) to the local contract 

administration representative or to the 

Department of Commerce. Form BIS– 

999 may be obtained from the Delegate 

Agency representative or from the 

Department of Commerce. A sample 

Form BIS–999 is attached at Appendix 

I. A fillable Form BIS–999 may be 

obtained on the following website: 

https://www.bis.doc.gov/. 

■ 20. Revise 700.51 to read as follows: 

§ 700.51 Requests for priority rating 

authority. 

(a) If a rated order is likely to be 

delayed because a person is unable to 

obtain items not normally rated under 

this part, the person may request the 

authority to use a priority rating in 

ordering the needed items. Examples of 

items for which priority ratings may be 

authorized include: 

(1) Production or construction 

equipment; 

(2) Computers when not used as 

production items; and 

(3) Expansion, rebuilding or replacing 

plant facilities. 

(b) If a person does not have priority 

rating authority under this part from a 

Delegate Agency or the Department of 

Commerce and is unable to ensure the 

timely delivery of industrial resources, 

the person may request the authority to 

use a priority rating in ordering the 

needed items. 

(1) A request for priority rating 

authority under this part must be 

submitted on Form BIS–999 to the 

Department of Commerce (see 

§ 700.50(c) for information on Form 

BIS–999). 

(2) A request for priority rating 

authority under this part may be used 

only to support approved programs (see 

§ 700.55, § 700.57, and § 700.58 for 

information on requesting a 

determination by the appropriate 

Determination Department that the 

request supports a program that is 

necessary or appropriate to promote the 

national defense). 

(c) Rating authority for production or 

construction equipment. 

(1) A request for priority rating 

authority for production or construction 

equipment must be submitted to the 

appropriate Delegate Agency or the 

Department of Commerce. Requests in 

support of Department of Defense 

approved programs should be submitted 

to the Department of Defense on 

Department of Defense Form DD 691. 

All other requests should be submitted 

on Form BIS–999. If the Delegate 

Agency is unable to resolve the problem 

or authorize the use of a priority rating, 

the Delegate Agency may forward the 

request to the Department of Commerce 

for action. 

(2) When the use of a priority rating 

is authorized for the procurement of 

production or construction equipment, a 

rated order may be used either to 

purchase or to lease such equipment. 

However, in the latter case, the 

equipment may be leased only from a 

person engaged in the business of 

leasing such equipment or from a 

person willing to lease rather than sell. 

(d) Rating authority in advance of a 

rated prime contract. 

(1) In certain cases and upon specific 

request, the Department of Commerce, 

in order to promote the national 

defense, may authorize a person to place 

a priority rating on an order to a 

supplier in advance of the issuance of 

a rated prime contract. In these 

instances, the person requesting 

advance rating authority must obtain 

sponsorship of the request from the 

appropriate Delegate Agency or those 

authorized by the Department of 

Commerce to priority rate the prime 

contract. The person shall also assume 

any business risk associated with the 

placing of rated orders if these orders 


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have to be cancelled in the event the 

rated prime contract is not issued. 

(2) The person must state the 

following in the request: 

It is understood that the authorization 

of a priority rating in advance of our 

receiving a rated prime contract and our 

use of that priority rating with our 

suppliers in no way commits the 

Department of Commerce or any other 

government agency to enter into a 

contract or order or to expend funds. 

Further, we understand that the Federal 

Government shall not be liable for any 

cancellation charges, termination costs, 

or other damages that may accrue if a 

rated prime contract is not eventually 

placed and, as a result, we must 

subsequently cancel orders placed with 

the use of the priority rating authorized 

as a result of this request. 

(3) In reviewing requests for rating 

authority in advance of a rated prime 

contract, the Department of Commerce 

will consider, among other things, the 

following criteria: 

(i) The probability that the prime 

contract will be awarded; 

(ii) The impact of the resulting rated 

orders on suppliers and on other 

authorized programs; 

(iii) Whether the contractor is the sole 

source; 

(iv) Whether the item being produced 

has a long lead time; and 

(v) The time period for which the 

rating is being requested. 

(4) The Department of Commerce may 

require periodic reports on the use of 

the rating authority granted under 

paragraph (c) of this section. 

(5) If a rated prime contract is not 

issued, the person shall promptly notify 

all suppliers who have received rated 

orders pursuant to the advanced rating 

authority that the priority rating on 

those orders is cancelled. 

■ 21. Section 700.52 is amended by 

revising paragraph (a) and adding new 

paragraph (a)(3) to read as follows: 

§ 700.52 Examples of assistance. 

(a) While special priorities assistance 

may be provided for any reason in 

support of this regulation and an 

approved program (see § 700.55, 

§ 700.57, § 700.58, and Schedule I of 

this part), it is usually provided in 

situations where: 

(1) A person is experiencing difficulty 

in obtaining delivery against a rated 

order by the required delivery date; 

(2) A person cannot locate a supplier 

for an item needed to fill a rated order; 

or 

(3) A person is experiencing difficulty 

in obtaining delivery for an unrated 

order by the required delivery date. 

* * * * * 

■ 22. Amend section 700.53 by revising 

the introductory text to read as follows: 

§ 700.53 Criteria for assistance. 

Requests for special priorities 

assistance should be timely, i.e., the 

request has been submitted promptly 

and enough time exists for the 

Determination Department, Delegate 

Agency, or the Department of Commerce 

to effect a meaningful resolution to the 

problem, and must establish that: 

* * * * * 

■ 23. Amend section 700.54 by revising 

the first sentence of the introductory 

text to read as follows: 

§ 700.54 Instances where assistance will 

not be provided. 

Special priorities assistance is 

provided at the discretion of the 

Determination Departments, Delegate 

Agencies, and the Department of 

Commerce when it is determined that 

such assistance is warranted to meet the 

objectives of this regulation. * * * 

* * * * * 

■ 24. Revise section 700.55 to read as 

follows: 

§ 700.55 Requests for determination that 

program within the United States is 

necessary or appropriate to promote the 

national defense. 

(a) Homeland security, emergency 

response, and critical infrastructure 

protection and restoration assistance 

programs within the United States. Any 

person requesting priority rating 

authority or requiring assistance in 

obtaining rated items under this part 

supporting homeland security, 

emergency preparedness, and critical 

infrastructure protection and restoration 

related activities should submit a 

request for a determination in writing 

that the request supports a program that 

is necessary or appropriate to promote 

the national defense (referred to as 

‘‘approved program’’) to the Office of 

Policy and Program Analysis, Federal 

Emergency Management Agency, 

Department of Homeland Security, 500 

C Street SW, Washington, DC 20472; 

Telephone: (202) 212–2900; Fax: (202) 

646–4601; Email: FEMA-DPA@

fema.dhs.gov, website: https://

www.fema.gov/disaster/defenseproduction-act. 

(b) Military production and 

construction, military use of civil 

transportation, stockpiles managed by 

the Department of Defense, space, and 

directly related activities within the 

United States. Any person requesting 

priority rating authority or requiring 

assistance under this part in obtaining 

rated items supporting military 

production and construction, military 

use of civil transportation, stockpiles 

managed by the Department of Defense, 

space, and directly related activities 

should submit a request for a 

determination in writing that the 

request supports a program that is 

necessary or appropriate to promote the 

national defense (referred to as 

‘‘approved program’’) to the Department 

of Defense DPA Title I Lead in the 

Office of the Assistant Secretary of 

Defense for Industrial Base Policy, 3330 

Defense Pentagon, Room 3B854, 

Washington, DC 20301; Telephone: 

(703) 697–0051; Fax: (703) 695–4885; 

Email: osd.pentagon.ousd-as.mbx.indpol-dpa-title-i@mail.mil; 

website: https://www.businessdefense.

gov/. 

(c) Energy production and 

construction, distribution and use, and 

directly related activities within the 

United States. Any person requesting 

priority rating authority or requiring 

assistance under this part in obtaining 

rated items supporting energy 

production and construction, 

distribution and use, and directly 

related activities should submit a 

request for a determination in writing 

that the request supports a program that 

is necessary or appropriate to promote 

the national defense (referred to as 

‘‘approved program’’) to the Department 

of Energy, Office of Cybersecurity, 

Energy Security, and Emergency 

Response, 1000 Independence Avenue 

SW, Washington, DC 20585; Telephone: 

(202) 586–8100; Email: askcr@

hq.doe.gov. 

■ 25. Section 700.56 is amended by 

revising paragraphs (c), (d), (e), (f), and 

(g) to read as follows: 

§ 700.56 Military assistance programs with 

Canada. 

* * * * * 

(c) The Department of Commerce 

coordinates with Public Works and 

Government Services Canada on all 

matters of mutual concern relating to 

the administration of this part. 

(d) Any person in the United States 

ordering defense items in Canada in 

support of an approved program should 

inform the Canadian supplier that the 

items being ordered are to be used to fill 

a rated order. The Canadian supplier 

should be informed that if production 

materials are needed from the United 

States by the Canadian supplier or the 

Canadian supplier’s vendor to fill the 

order, the Canadian supplier or vendor 

should contact Public Works and 

Government Services Canada for 

authority to place rated orders in the 

United States: Public Works and 

Government Services Canada, 

Acquisitions Branch, Business 


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Management Directorate, Phase 3, Place 

du Portage, 0B2–103, 11 Laurier Street, 

Gatineau, Quebec, K1A 0S5, Canada; 

Telephone: (819) 420–7200; Fax: (819) 

997–9776, or electronically at 

TPSGC.PAPrioritesdedefenseAPDefencePriorities.PWGSC@tpsgcpwgsc.gc.ca. 

(e) Any person in Canada producing 

defense items for the Canadian 

government may also obtain priority 

rating authority for items to be 

purchased in the United States by 

applying to Public Works and 

Government Services Canada, 

Acquisitions Branch, Business 

Management Directorate, in accordance 

with its procedures. 

(f) Persons in Canada needing special 

priorities assistance in obtaining 

defense items in the United States may 

apply to Public Works and Government 

Services Canada, Acquisitions Branch, 

Business Management Directorate, for 

such assistance. Public Works and 

Government Services Canada will 

forward appropriate requests to the 

Department of Commerce. 

(g) Any person in the United States 

requiring assistance in obtaining items 

in Canada must submit a request to the 

Office of Strategic Industries and 

Economic Security, U.S. Department of 

Commerce on Form BIS–999. The 

Department of Commerce will forward 

appropriate requests to Public Works 

and Government Services Canada. 

■ 26. Section 700.57 is amended by 

revising paragraphs (a), (b)(1), and (c) to 

read as follows: 

§ 700.57 Military assistance programs with 

other nations and international 

organizations. 

(a) Scope. To promote military 

assistance to foreign nations and 

international organizations (for 

example, the North Atlantic Treaty 

Organization or the United Nations), 

this section provides for authorizing 

priority ratings to persons in foreign 

nations or international organizations to 

obtain items in the United States in 

support of approved programs. 

Although priority ratings have no legal 

authority outside of the United States, 

this section also provides information 

on how persons in the United States 

may obtain informal assistance in 

foreign nations that are signatories to 

bilateral security of supply 

arrangements with the Department of 

Defense. These foreign nations include 

Australia, Denmark, Finland, Israel, 

Italy, Japan, Latvia, The Netherlands, 

Norway, Spain, Sweden, and the United 

Kingdom. The most current security of 

supply arrangement information, 

including an up-to-date list of countries, 

may be found on the following website: 

https://www.businessdefense.gov/ 

security-of-supply.html. 

(b) * * * 

(1) Any person in a foreign nation 

other than Canada, or any person in an 

international organization, requiring 

assistance in obtaining items in the 

United States or priority rating authority 

for items to be purchased in the United 

States, should submit a request for such 

assistance or priority rating authority to: 

the Department of Defense DPA Title I 

Lead in the Office of the Assistant 

Secretary of Defense for Industrial Base 

Policy, 3330 Defense Pentagon, Room 

3B854, Washington, DC 20301; 

Telephone: (703) 697–0051; Fax: (703) 

695–4885; Email: osd.pentagon.ousd-as.mbx.indpol-dpa-title-i@mail.mil, 

website: https://www.businessdefense.

gov/. 

(i) If the end product is being acquired 

by a U.S. Government agency, the 

request should be submitted to the 

Department of Defense DPA Title I Lead 

through the U.S. contract administration 

representative. 

(ii) If the end product is being 

acquired by a foreign nation or 

international organization, the request 

must be sponsored prior to its 

submission to the Department of 

Defense DPA Title I Lead by the 

government of the foreign nation or the 

international organization that will use 

the end product. 

* * * * * 

(c) Requesting assistance in foreign 

nations that are signatories to bilateral 

security of supply arrangements. 

(1) The Department of Defense has 

entered into bilateral security of supply 

arrangements with several foreign 

nations that allow the Department of 

Defense to request the priority delivery 

for Department of Defense contracts, 

subcontracts, and orders from 

companies in these countries. These 

countries include Australia, Denmark, 

Finland, Israel, Italy, Japan, Latvia, The 

Netherlands, Norway, Spain, Sweden, 

and the United Kingdom. The most 

current security of supply arrangement 

information, including an up-to-date list 

of countries, may be found on the 

following website: https://www.business

defense.gov/security-of-supply.html. 

(2) Any person in the United States 

requiring assistance in obtaining the 

priority delivery of a contract, 

subcontract, or order in foreign nations 

that are signatories to bilateral security 

of supply arrangements with the 

Department of Defense should contact 

the Department of Defense DPA Title I 

Lead in the Office of the Assistant 

Secretary of Defense for Industrial Base 

Policy for assistance. 

(3) Persons in foreign nations that are 

signatories to bilateral security of 

supply arrangements with the 

Department of Defense should request 

assistance in accordance with paragraph 

(b)(1) of this section. 

■ 27. Revise section 700.58 to read as 

follows: 

§ 700.58 Critical infrastructure assistance 

programs to foreign nations and 

international organizations. 

(a) Scope. To promote critical 

infrastructure assistance to foreign 

nations, this section provides for 

authorizing priority ratings to persons in 

foreign nations or international 

organizations (for example, the North 

Atlantic Treaty Organization or the 

United Nations) to obtain items in the 

United States in support of approved 

programs. 

(b) Foreign nations or international 

organizations. (1) Any person in a 

foreign nation or representing an 

international organization requiring 

assistance in obtaining items under this 

part to be purchased in the United 

States for support of critical 

infrastructure protection and restoration 

should submit a request for priority 

rating authority on Form BIS–999 to the 

Department of Commerce (see 

§ 700.50(c) for information on Form 

BIS–999). 

(2) Any person in a foreign nation or 

representing an international 

organization requesting priority rating 

authority or requiring assistance in 

obtaining rated items under this part in 

support of critical infrastructure 

protection and restoration related 

activities should submit a request for a 

determination in writing that the 

request supports a program that is 

necessary or appropriate to promote the 

national defense to the Office of Policy 

and Program Analysis, Federal 

Emergency Management Agency, 

Department of Homeland Security, 500 

C Street SW, Washington, DC 20472; 

Telephone: (202) 212–2900; Fax: (202) 

646–4601; Email: FEMA-DPA@

fema.dhs.gov, website: https://

www.fema.gov/disaster/defenseproduction-act. 

■ 28. Section 700.61 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 700.61 Rating authorization. 

(a) * * * 

(1) Permits a person to place a priority 

rating on an order for an item, such as 

an item not normally ratable under this 

regulation; or 

* * * * * 

■ 29. Section 700.63 is amended by 

revising paragraph (a) to read as follows: 


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§ 700.63 Letters of understanding. 

(a) A letter of understanding is an 

official action that may be issued in 

resolving special priorities assistance 

cases to reflect an agreement reached by 

all parties (e.g., the Department of 

Commerce, the Determination 

Department, the Delegate Agency, the 

supplier, the customer). 

* * * * * 

■ 30. Section 700.70 is amended by 

revising paragraph (b) to read as follows: 

§ 700.70 General provisions. 

* * * * * 

(b) Willful violation of any of the 

provisions of Title I or section 705 of the 

Defense Production Act, this part, or an 

official action of the Department of 

Commerce, is a criminal act, punishable 

as provided in sections 103 and 705 of 

the Defense Production Act. 

■ 31. Section 700.71 is amended by 

revising the first sentence of paragraph 

(a) to read as follows: 

§ 700.71 Audits and investigations. 

(a) Audits and investigations are 

official actions involving the 

examination of books, records, 

documents, other writings, and 

information to ensure that the 

provisions of the Defense Production 

Act, the Selective Service Act and 

related statutes, and this part have been 

properly followed. * * * 

* * * * * 

■ 32. Section 700.74 is amended by 

revising paragraph (a) and paragraph (c) 

introductory text to read as follows: 

§ 700.74 Violations, penalties, and 

remedies. 

(a) Willful violation of the provisions 

of Title I or sections 705 or 707 of the 

Defense Production Act, the priorities 

provisions of the Selective Service Act 

and related statutes or this part is a 

crime and upon conviction, a person 

may be punished by fine or 

imprisonment, or both as provided in 

sections 103 and 705 of the Defense 

Production Act and in section 468(f) of 

the Selective Service Act. 

* * * * * 

(c) In order to secure the effective 

enforcement of the Defense Production 

Act, this part, and official actions, the 

following are prohibited (see section 

704 of the Defense Production Act; see 

e.g., sections 2 and 371 of Title 18 

United States Code): 

* * * * * 

■ 33. Section 700.80 is amended by 

revising the last sentence in paragraph 

(c) to read as follows: 

§ 700.80 Adjustments or exceptions. 

* * * * * 

(c) * * * The Office of Strategic 

Industries and Economic Security shall 

respond to requests for adjustment of or 

exceptions to compliance with the 

provisions of this part or an official 

action within twenty-five (25) days, not 

including Saturdays, Sundays or 

Government holidays, of the date of 

receipt. 

* * * * * 

■ 34. Section 700.81 is amended by 

revising paragraph (b) to read as follows: 

§ 700.81 Appeals. 

* * * * * 

(b) Appeals of denied requests for 

exceptions from or adjustments to 

compliance with the provisions of this 

part or an official action must be 

received by the Assistant Secretary for 

Export Administration no later than 

forty-five (45) days after receipt of a 

written notice of denial from the Office 

of Strategic Industries and Economic 

Security. After this forty-five (45) day 

period, an appeal may be accepted at 

the discretion of the Assistant Secretary 

for Export Administration. 

* * * * * 

■ 35. Revise section 700.93 to read as 

follows: 

§ 700.93 Communications. 

General communications concerning 

this part, including how to obtain copies 

of this part, explanatory information, 

and requests for guidance or 

clarification, may be addressed to the 

Office of Strategic Industries and 

Economic Security, Room 3876, 

Department of Commerce, 1401 

Constitution Ave. NW, Washington, DC 

20230, Ref: DPAS; Telephone (202) 482– 

3634, email DPAS@bis.doc.gov. Request 

for special priorities assistance under 

§ 700.50, adjustments or exceptions 

under § 700.80, or appeals under 

§ 700.81, must be submitted in the 

manner specified in those sections. 

■ 36. Revise Schedule I to Part 700 to 

read as follows: 

Schedule I to Part 700—Approved 

Programs and Delegate Agencies 

Schedule I provides a list of approved 

programs. They have equal preferential 

status. Use of this part in support of an 

approved program requires written 

authorization by the Department of 

Commerce. The Department of 

Commerce has authorized the delegate 

agencies listed in the third column to 

use this part in support of those 

programs assigned to them, as indicated 

below. The Department of Commerce is 

also listed as an agency in the third 

column for programs where its 

authorization in writing is necessary to 

place rated orders (see § 700.51 for 

information on how to request priority 

rating authority). 

The Department of Commerce has 

authorized Delegate Agencies to place 

priority ratings on contracts and orders 

for industrial resources needed to 

implement any approved program that 

has been authorized for priorities 

support by the appropriate Resource 

Department. The program identification 

symbol used on priority rated contracts 

and orders authorized by the 

appropriate Resource Department to 

support the approved program must also 

be used on rated orders for industrial 

resources needed to implement the 

approved program. However, any rated 

order for industrial resources placed to 

implement an approved program that 

has been authorized for priorities 

support by a Resource Department 

remains subject to the provisions of this 

part. The program identification 

symbols for these approved programs 

are found under the ‘‘Other Programs’’ 

section of Schedule I. 

Program identification symbol Approved program Agency(ies) 

Defense Programs 

A1 .................................................... Aircraft .................................................................................................... Department of Defense. 

A2 .................................................... Missiles and Space ................................................................................ Department of Defense. 

A3 .................................................... Ships ...................................................................................................... Department of Defense. 

A4 .................................................... Tank—Automotive ................................................................................. Department of Defense. 

A5 .................................................... Weapons ................................................................................................ Department of Defense. 

A6 .................................................... Ammunition ............................................................................................ Department of Defense. 

A7 .................................................... Electronic and communications equipment ........................................... Department of Defense. 

B1 .................................................... Military building supplies ........................................................................ Department of Defense. 

B8 .................................................... Production equipment (for defense contractor’s account) .................... Department of Defense. 

B9 .................................................... Production equipment (Government owned) ......................................... Department of Defense. 


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8376 Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Proposed Rules 

Program identification symbol Approved program Agency(ies) 

C2 .................................................... Department of Defense construction ..................................................... Department of Defense. 

C3 .................................................... Maintenance, repair, and operating supplies (MRO) for Department of 

Defense facilities.

Department of Defense. 

C9 .................................................... Miscellaneous ........................................................................................ Department of Defense. 

Military Assistance to Canada 

D1 .................................................... Canadian military programs ................................................................... Department of Commerce. 

D2 .................................................... Canadian production and construction .................................................. Department of Commerce. 

D3 .................................................... Canadian atomic energy program ......................................................... Department of Commerce. 

Military Assistance to Other Foreign Nations 

G1 .................................................... Certain munitions items purchased by foreign governments through 

domestic commercial channels for export.

Department of Commerce. 

G2 .................................................... Certain direct defense needs of foreign governments other than Canada.Department of Commerce. 

G3 .................................................... Foreign nations (other than Canada) production and construction ...... Department of Commerce. 

Critical Infrastructure Assistance to Foreign Nations 

G4 .................................................... Foreign critical infrastructure programs ................................................. Department of Commerce. 

Co-Production 

J1 ..................................................... Co-Production Program ......................................................................... Departments of Commerce and 

Defense. 

Atomic Energy Programs 

E1 .................................................... Construction ........................................................................................... Department of Energy. 

E2 .................................................... Operations—including maintenance, repair, and operating supplies 

(MRO).

Department of Energy. 

E3 .................................................... Privately owned facilities ....................................................................... Department of Energy. 

Domestic Energy Programs 

F1 .................................................... Exploration, production, refining, and transportation ............................. Department of Energy. 

F2 .................................................... Conservation .......................................................................................... Department of Energy. 

F3 .................................................... Construction, repair, and maintenance ................................................. Department of Energy. 

Other Defense, Energy, and Related Programs 

H1 .................................................... Certain combined orders (see § 700.17(c)) ........................................... Department of Commerce. 

H5 .................................................... Private domestic production .................................................................. Department of Commerce. 

H6 .................................................... Private domestic construction ................................................................ Department of Commerce. 

H7 .................................................... Maintenance, repair, and operating supplies (MRO) ............................ Department of Commerce. 

H8 .................................................... Designated Programs ............................................................................ Department of Commerce. 

K1 .................................................... Federal supply items ............................................................................. General Services Administration. 

Homeland Security Programs 

N1 .................................................... Federal emergency preparedness, mitigation, response, and recovery Department of Homeland Security. 

N2 .................................................... State, local, tribal, and territorial government emergency preparedness, mitigation, response, and recovery.Department of Homeland Security. 

N3 .................................................... Intelligence and warning systems ......................................................... Department of Homeland Security. 

N4 .................................................... Border and transportation security ........................................................ Department of Homeland Security. 

N5 .................................................... Domestic counter-terrorism, including law enforcement ....................... Department of Homeland Security. 

N6 .................................................... Chemical, biological, radiological, and nuclear countermeasures ........ Department of Homeland Security. 

N7 .................................................... Critical infrastructure protection and restoration ................................... Department of Homeland Security. 

N8 .................................................... Continuity of Government ...................................................................... Department of Homeland Security. 

Other Programs 

Health Resources/Health Resources Priorities and Allocations System (HRPAS): 

M1 ................................................... Pharmaceuticals and biological related products.

M2 ................................................... Health, medical, and safety supply chains.

M3 ................................................... Health related equipment, devices, and material.

M4 ................................................... Vaccines.

M5 ................................................... Mental Health.

M6 ................................................... Mitigation measures.

M7 ................................................... Facilities.

M8 ................................................... Personal protective equipment.

M9 ................................................... Miscellaneous.


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Federal Register / Vol. 89, No. 26 / Wednesday, February 7, 2024 / Proposed Rules 8377 

1See, e.g., 39 U.S.C. 3642; Postal Regulatory 

Commission, Annual Report to the President and 

Congress Fiscal Year 2021, January 25, 2022, at 26 

(FY 2021 Annual Report) (stating that the 

Commission reviews Market Dominant NSAs to 

ensure they comply with 39 U.S.C. 3622(c)(10) and 

the Commission’s regulations in 39 CFR part 3040, 

subpart G); id. at 28 (stating that Competitive NSAs 

require prior Commission review for compliance 

with 39 U.S.C. 3633(a) and 39 CFR part 3035). The 

focus of this docket is Competitive NSAs. 2See 39 CFR 3035.105. This information includes 

‘‘[s]ufficient revenue and cost data for the 12-month 

period following the effective date of the rate or 

class to demonstrate that each affected competitive 

product will be in compliance with 39 U.S.C. 

3633(a)(2)[.]’’ 39 CFR 3035.105(c)(1). 

3See, e.g., Docket No. CP2008–5, Order 

Concerning Global Expedited Package Services 

Contracts, June 27, 2008 (Order No. 86). 4See, e.g., Order No. 5753 at 2–3 (summarizing 

the Commission’s approach to ‘‘umbrella’’ 

products); Docket No. R2013–9, Order Granting, in 

Part, Motion for Partial Reconsideration of Order 

No. 1864 and Modifying, in Part, Order No. 1864, 

August 11, 2014, at 7 (Order No. 2148) (allowing 

then-existing ‘‘umbrella’’ products to designate 

multiple baseline agreements but ‘‘plan[ning] to 

discontinue the practice of designating more than 

one baseline reference.’’). The Commission also has 

considered similar arrangements termed ‘‘shell 

classifications,’’ which may use a ‘‘shell’’ or 

template in lieu of an actual agreement as a 

baseline. See Docket No. CP2008–8 et al., Order 

Concerning Global Plus Negotiated Service 

Agreements, June 27, 2008, at 7–8 (Order No. 85); 

cf. Docket No. MC2008–6 et al., Order Concerning 

Prices Under Inbound Direct Entry Contracts with 

Certain Foreign Postal Administrations, September 

4, 2008, at 3, 7 (Order No. 105). 

Program identification symbol Approved program Agency(ies) 

[80 FR 42408; Jul. 15, 2015].

Food Resources/Agriculture Priorities and Allocations System (APAS): 

P1 .................................................... Food and food resources (civilian).

P2 .................................................... Agriculture and food critical infrastructure protection and restoration.

P3 .................................................... Food resources (combat rations).

P4 .................................................... Certain combined orders.

[80 FR 63890; Dec. 21, 2015].

Transportation Resources/Transportation Priorities and Allocations System (TPAS): 

T1 .................................................... Federal emergency preparedness, mitigation, response, and recovery.

Thea D. Rozman Kendler, 

Assistant Secretary for Export Administration 

[FR Doc. 2024–01930 Filed 2–6–24; 8:45 am] 

BILLING CODE 3510–JT–P 

POSTAL REGULATORY COMMISSION 

39 CFR Parts 3000, 3010, 3040, 3041 

[Docket No. RM2023–5; Order No. 6953] 

RIN 3211–AA34 

Competitive Postal Products 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Notice of Proposed 

Rulemaking seeks comment on a 

proposal for reviewing contracts 

negotiated between the Postal Service 

and customers for competitive services. 

These contracts are known as 

competitive negotiated service 

agreements (NSAs). The proposal 

includes a default method for reviewing 

competitive NSAs and three optional 

streamlined methods. Different 

requirements apply to each method for 

reviewing proposed competitive NSAs. 

In addition, the proposal includes 

requirements for administering 

approved competitive NSAs. The 

proposal is designed to streamline 

competitive NSA review, ensure 

transparency and accountability, 

preserve existing flexibility, and enable 

a smooth transition with minimum 

disruption for stakeholders. This 

document informs the public of the 

filing, invites public comment, and 

takes other administrative steps. 

DATES: Comments are due: April 8, 

2024; Reply comments are due: May 7, 

2024. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at https://

www.prc.gov. Those who cannot submit 

comments electronically should contact 

the person identified in the FOR FURTHER

INFORMATION CONTACT section by 

telephone for advice on filing 

alternatives. The Rule Summary can be 

found on the Commission’s Rule 

Summary Page at https://www.prc.gov/ 

rule-summary-page. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Basis of Proposed Rules 

III. Proposed Rules 

I. Background 

A Negotiated Service Agreement 

(NSA) is ‘‘a written contract, to be in 

effect for a defined period of time, 

between the Postal Service and a mailer, 

which provides for customer-specific 

rates or fees and/or terms of service in 

accordance with the terms and 

conditions of the contract.’’ 39 CFR 

3010.101(f). These NSAs require prior 

Commission approval before they are 

added to the applicable product lists; 

however, different statutory and 

regulatory criteria apply to the approval 

of Market Dominant NSAs and 

Competitive NSAs.1

Before adding a product (such as a 

Competitive NSA) to the Competitive 

product list, the Commission undertakes 

two types of review: (1) review under 39 

U.S.C. 3642; and (2) review under 39 

U.S.C. 3633. Upon consideration of 

required information submitted by the 

Postal Service, including projections of 

the proposed product’s revenues and 

costs and responses to any information 

requests,2 the Commission determines 

whether the product complies with the 

requirements for Competitive products 

in 39 U.S.C. 3642. The Commission also 

makes a preliminary determination of 

whether the proposed product will 

comply with the criteria outlined in 39 

U.S.C. 3633(a). Final determination of 

compliance with 39 U.S.C. 3633(a) is 

made retrospectively, in the 

Commission’s Annual Compliance 

Determination(s) (ACD), as set forth in 

39 U.S.C. 3653. 

Over the years, various efforts have 

sought to streamline review of NSAs in 

certain respects by applying the concept 

of functional equivalence to groups of 

NSAs.3 An ‘‘umbrella’’ product is a 

grouping of NSAs that are functionally 

equivalent to a baseline agreement. The 

Commission has used a functional 

equivalence analysis to approve 

‘‘umbrella’’ product agreements.4 Nonpublished rates NSA products are a 

refinement of ‘‘umbrella’’ products that 

receive further streamlined review 

because the products ‘‘conform to a 

template agreement and offer prices 

within specified, pre-approved ranges.’’ 

Order No. 5753 at 3. These products 

must comply with Commission 

classification and regulatory 

requirements, including pre-approved 

pricing formulas, minimum cost 

coverage, and documentation, allow for 

a streamlined review process because 


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