[Federal Register Volume 89, Number 26 (Wednesday, February 7, 2024)]
[Proposed Rules]
[Pages 8363-8377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01930]


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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.

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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 non-substantive 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

[[Page 8364]]

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, 
<a href="/cdn-cgi/l/email-protection#387c68796b785a514b165c575b165f574e"><span class="__cf_email__" data-cfemail="eaaebaabb9aa888399c48e8589c48d859c">[email protected]</span></a>.

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 Sec.  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

[[Page 8365]]

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 
non-substantive 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

[[Page 8366]]

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 re-organizing 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 ``twenty-five'' 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 non-
substantive 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 non-
substantive 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 ``Co-Production 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 non-substantive change to the 
description of

[[Page 8367]]

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

[[Page 8368]]

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 <a href="/cdn-cgi/l/email-protection#703d11021b5e3302111315301219035e141f135e171f06"><span class="__cf_email__" data-cfemail="5f123e2d34711c2d3e3c3a1f3d362c713b303c71383029">[email protected]</span></a>. 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 non-substantive changes to clarify 
well-established 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 for-profit 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.

[[Page 8369]]

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 well-
established 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

0
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.

0
2. Section 700.1 is amended by revising the second and third sentences 
to read as follows:


Sec.  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. * * *
0
3. Revise section 700.2 to read as follows:


Sec.  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.
0
4. Section 700.3 is amended by revising paragraphs (a) and (d) to read 
as follows:


Sec.  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.
* * * * *
0
5. Section 700.8 is amended by
0
a. Adding in alphabetical order the definitions of ``Determination 
Department'', ``Facilities'', ``Materials'', ``Resource Department'', 
and ``Services'';
0
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
0
c. Removing the definition of ``Item''.
    Revisions and additions read as follows:


Sec.  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

[[Page 8370]]

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.).
* * * * *
0
6. Section 700.10 is amended by revising the last sentence in paragraph 
(c)(1) to read as follows:


Sec.  700.10   Authority.

* * * * *
    (c) Jurisdiction limitations.
    (1) * * * Unless otherwise agreed to by the concerned agencies, the 
provisions of this part are not applicable to:
* * * * *
0
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:


Sec.  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. * * *
0
8. Section 700.12 is amended by revising paragraphs (a)(1) and (a)(4) 
to read as follows:


Sec.  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

[[Page 8371]]

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).''
* * * * *
0
9. Section 700.13 is amended by revising paragraphs (c)(5) and (d)(3) 
to read as follows:


Sec.  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 
Sec.  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.
0
10. Section 700.14 is amended by revising the second sentence in 
``Examples'' to paragraph (b) to read as follows:


Sec.  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. * * *
* * * * *
0
11. Revise Section 700.15 to read as follows:


Sec.  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 
Sec.  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.
0
12. Section 700.16 is amended by revising paragraph (b) to read as 
follows:


Sec.  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.
* * * * *
0
13. Section 700.17 is amended by revising paragraphs (a)(4), (b)(1), 
(d)(1)(ii), and (f) to read as follows:


Sec.  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 Sec.  700.12, 
are included on the order with the statement required in Sec.  
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.
0
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:


Sec.  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 Sec.  
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 Sec.  700.51).
* * * * *
0
15. Section 700.21 is amended by revising the last sentence of 
paragraph (a) to read as follows:


Sec.  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: <a href="/cdn-cgi/l/email-protection#28495b434b5a684059064c474d064f475e"><span class="__cf_email__" data-cfemail="dcbdafb7bfae9cb4adf2b8b3b9f2bbb3aa">[email protected]</span></a>.
* * * * *
0
16. Section 700.31 is amended by revising paragraph (f) to read as 
follows:


Sec.  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

[[Page 8372]]

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);
* * * * *
0
17. Section 700.33 is amended by revising the section heading and 
introductory text to read as follows:


Sec.  700.33   Types of allocation orders.

    There are three types of allocation orders available for 
communicating allocation actions.
* * * * *
0
18. Section 700.34 is amended by revising paragraphs (a)(1), (b)(1), 
(c) introductory text, and (c)(1) to read as follows:


Sec.  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).''
* * * * *
0
19. Revise section 700.50 to read as follows:


Sec.  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 Sec.  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/.
0
20. Revise 700.51 to read as follows:


Sec.  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 Sec.  
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 Sec.  700.55, Sec.  700.57, 
and Sec.  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

[[Page 8373]]

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.
0
21. Section 700.52 is amended by revising paragraph (a) and adding new 
paragraph (a)(3) to read as follows:


Sec.  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 Sec.  
700.55, Sec.  700.57, Sec.  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.
* * * * *
0
22. Amend section 700.53 by revising the introductory text to read as 
follows:


Sec.  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:
* * * * *
0
23. Amend section 700.54 by revising the first sentence of the 
introductory text to read as follows:


Sec.  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. * * *
* * * * *
0
24. Revise section 700.55 to read as follows:


Sec.  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: <a href="/cdn-cgi/l/email-protection#1650535b573b5246575670737b7738727e6538717960"><span class="__cf_email__" data-cfemail="d395969e92fe97839293b5b6beb2fdb7bba0fdb4bca5">[email protected]</span></a>, website: https://www.fema.gov/disaster/defense-production-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: <a href="/cdn-cgi/l/email-protection#93fce0f7bde3f6fde7f2f4fcfdbdfce6e0f7bef2bee0bdfef1ebbdfafdf7e3fcffbef7e3f2bee7fae7fff6befad3fef2faffbdfefaff"><span class="__cf_email__" data-cfemail="442b37206a34212a3025232b2a6a2b313720692569376a29263c6a2d2a20342b286920342569302d302821692d0429252d286a292d28">[email protected]</span></a>; 
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: <a href="/cdn-cgi/l/email-protection#8aebf9e1e9f8cae2fba4eee5efa4ede5fc"><span class="__cf_email__" data-cfemail="b8d9cbd3dbcaf8d0c996dcd7dd96dfd7ce">[email protected]</span></a>.
0
25. Section 700.56 is amended by revising paragraphs (c), (d), (e), 
(f), and (g) to read as follows:


Sec.  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

[[Page 8374]]

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 <a href="/cdn-cgi/l/email-protection#6034303327234e30213012090f12091405130405040506050e13054d2130240506050e03053012090f1209140905134e30372733232014101307034d5c0140081205065d" http: pwgsc.gc.ca">pwgsc.gc.ca</a>">TPSGC.PAPrioritesdedefense-APDefencePriorities.PWGSC@tpsgc-pwgsc.gc.ca</a>.
    (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.
0
26. Section 700.57 is amended by revising paragraphs (a), (b)(1), and 
(c) to read as follows:


Sec.  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: <a href="/cdn-cgi/l/email-protection#b7d8c4d399c7d2d9c3d6d0d8d999d8c2c4d39ad69ac499dad5cf99ded9d3c7d8db9ad3c7d69ac3dec3dbd29adef7dad6dedb99dadedb"><span class="__cf_email__" data-cfemail="6a05190e441a0f041e0b0d050444051f190e470b4719440708124403040e1a0506470e1a0b471e031e060f47032a070b030644070306">[email protected]</span></a>, 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.businessdefense.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.
0
27. Revise section 700.58 to read as follows:


Sec.  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 Sec.  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: <a href="/cdn-cgi/l/email-protection#90d6d5ddd1bdd4c0d1d0f6f5fdf1bef4f8e3bef7ffe6"><span class="__cf_email__" data-cfemail="81c7c4ccc0acc5d1c0c1e7e4ece0afe5e9f2afe6eef7">[email protected]</span></a>, website: https://www.fema.gov/disaster/defense-production-act.
0
28. Section 700.61 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  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
* * * * *
0
29. Section 700.63 is amended by revising paragraph (a) to read as 
follows:

[[Page 8375]]

Sec.  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).
* * * * *
0
30. Section 700.70 is amended by revising paragraph (b) to read as 
follows:


Sec.  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.
0
31. Section 700.71 is amended by revising the first sentence of 
paragraph (a) to read as follows:


Sec.  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. * * *
* * * * *
0
32. Section 700.74 is amended by revising paragraph (a) and paragraph 
(c) introductory text to read as follows:


Sec.  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):
* * * * *
0
33. Section 700.80 is amended by revising the last sentence in 
paragraph (c) to read as follows:


Sec.  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.
* * * * *
0
34. Section 700.81 is amended by revising paragraph (b) to read as 
follows:


Sec.  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.
* * * * *
0
35. Revise section 700.93 to read as follows:


Sec.  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 <a href="/cdn-cgi/l/email-protection#a8ecf8e9fbe8cac1db86ccc7cb86cfc7de"><span class="__cf_email__" data-cfemail="2165716072614348520f454e420f464e57">[email protected]</span></a>. Request for special priorities 
assistance under Sec.  700.50, adjustments or exceptions under Sec.  
700.80, or appeals under Sec.  700.81, must be submitted in the manner 
specified in those sections.
0
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 Sec.  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          Department of
                                 communications          Defense.
                                 equipment.
B1............................  Military building       Department of
                                 supplies.               Defense.
B8............................  Production equipment    Department of
                                 (for defense            Defense.
                                 contractor's account).
B9............................  Production equipment    Department of
                                 (Government owned).     Defense.

[[Page 8376]]

 
C2............................  Department of Defense   Department of
                                 construction.           Defense.
C3............................  Maintenance, repair,    Department of
                                 and operating           Defense.
                                 supplies (MRO) for
                                 Department of Defense
                                 facilities.
C9............................  Miscellaneous.........  Department of
                                                         Defense.
------------------------------------------------------------------------
                      Military Assistance to Canada
------------------------------------------------------------------------
D1............................  Canadian military       Department of
                                 programs.               Commerce.
D2............................  Canadian production     Department of
                                 and construction.       Commerce.
D3............................  Canadian atomic energy  Department of
                                 program.                Commerce.
------------------------------------------------------------------------
              Military Assistance to Other Foreign Nations
------------------------------------------------------------------------
G1............................  Certain munitions       Department of
                                 items purchased by      Commerce.
                                 foreign governments
                                 through domestic
                                 commercial channels
                                 for export.
G2............................  Certain direct defense  Department of
                                 needs of foreign        Commerce.
                                 governments other
                                 than Canada.
G3............................  Foreign nations (other  Department of
                                 than Canada)            Commerce.
                                 production and
                                 construction.
------------------------------------------------------------------------
          Critical Infrastructure Assistance to Foreign Nations
------------------------------------------------------------------------
G4............................  Foreign critical        Department of
                                 infrastructure          Commerce.
                                 programs.
------------------------------------------------------------------------
                              Co-Production
------------------------------------------------------------------------
J1............................  Co-Production Program.  Departments of
                                                         Commerce and
                                                         Defense.
------------------------------------------------------------------------
                         Atomic Energy Programs
------------------------------------------------------------------------
E1............................  Construction..........  Department of
                                                         Energy.
E2............................  Operations--including   Department of
                                 maintenance, repair,    Energy.
                                 and operating
                                 supplies (MRO).
E3............................  Privately owned         Department of
                                 facilities.             Energy.
------------------------------------------------------------------------
                        Domestic Energy Programs
------------------------------------------------------------------------
F1............................  Exploration,            Department of
                                 production, refining,   Energy.
                                 and transportation.
F2............................  Conservation..........  Department of
                                                         Energy.
F3............................  Construction, repair,   Department of
                                 and maintenance.        Energy.
------------------------------------------------------------------------
               Other Defense, Energy, and Related Programs
------------------------------------------------------------------------
H1............................  Certain combined        Department of
                                 orders (see Sec.        Commerce.
                                 700.17(c)).
H5............................  Private domestic        Department of
                                 production.             Commerce.
H6............................  Private domestic        Department of
                                 construction.           Commerce.
H7............................  Maintenance, repair,    Department of
                                 and operating           Commerce.
                                 supplies (MRO).
H8............................  Designated Programs...  Department of
                                                         Commerce.
K1............................  Federal supply items..  General Services
                                                         Administration.
------------------------------------------------------------------------
                       Homeland Security Programs
------------------------------------------------------------------------
N1............................  Federal emergency       Department of
                                 preparedness,           Homeland
                                 mitigation, response,   Security.
                                 and recovery.
N2............................  State, local, tribal,   Department of
                                 and territorial         Homeland
                                 government emergency    Security.
                                 preparedness,
                                 mitigation, response,
                                 and recovery.
N3............................  Intelligence and        Department of
                                 warning systems.        Homeland
                                                         Security.
N4............................  Border and              Department of
                                 transportation          Homeland
                                 security.               Security.
N5............................  Domestic counter-       Department of
                                 terrorism, including    Homeland
                                 law enforcement.        Security.
N6............................  Chemical, biological,   Department of
                                 radiological, and       Homeland
                                 nuclear                 Security.
                                 countermeasures.
N7............................  Critical                Department of
                                 infrastructure          Homeland
                                 protection and          Security.
                                 restoration.
N8............................  Continuity of           Department of
                                 Government.             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.........

[[Page 8377]]

 
[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


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