An Act to amend the Defense Production Act of 1950, as amended, and for other purposes
PL 84-295 (S.2391), enacted 08/09/1955

580 
PUBLIC LAW 295-AUG. 9, 1955 
[69 ST A T . 
August 9, 1955 
[S. 23911 
Defense Produc-
tion Act Amend-
ments of 1955. 
64 Stat. 798. 
50 u s e 
a p p . 
2062. 
Public Law 295 
CHAPTER 655 
AN ACT 
To amend the Defense Production Act of 1950, as amended, and for other purposes. 
Be it enacted hy the Senate and Ho'u^e of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Defense Production Act Amendments of 1955". 
SEC. 2. Section 2 of the Defense Production Act of 1950, as amended, 
is amended to read as follows: 
so u s e 
app, 
2093. 
50 U S C 
2151. 
D i s t r ibution of 
defense contracts. 
DECLARATION OF POLICY 
"SEC. 2. In view of the present international situation and in order 
to provide for the national defense and national security, our mobiliza-
tion effort continues to require some diversion of certain materials and 
facilities from civilian use to military and related purposes. It also 
requires the development of preparedness programs and the expansion 
of productive capacity and supply beyond the levels needed to meet the 
civilian demand, in order to reduce the time required for full mobiliza-
tion in the event of an attack on the United States." 
SEC. 3. Section 303 of the Defense Production Act of 1950, as 
amended, is amended by adding at the end thereof a new subsection 
as follows: 
"(g) When in his judgment it will aid the national defense, and 
upon a certification by the Secretary of Agriculture or the Secretary 
of the Interior that a particular strategic and critical material is likely 
to be in short supply in time of war or other national emergency, the 
President may make provision for the development of substitutes for 
such strategic and critical materials." 
SEC. 4. Subsection (c) of section 701 of the Defense Production 
Act of 1950, as amended, is amended to read as follows: 
"(c) Whenever the President invokes the powers given him in this 
Act to allocate any material in the civilian market, he shall do so in 
such a manner as to make available, so far as practicable, for business 
and various segments thereof in the normal channel of distribution of 
such material, a fair share of the available civilian supply based, so 
far as practicable, on the share received by such business under normal 
conditions during a representative period preceding any future allo-
cation of materials: Provided, That the President shall, in the alloca-
tion of materials in the civilian market, give due consideration to the 
needs of new concerns and newly acquired operations, undue hard-
ships of individual businesses, and the needs ot smaller concerns in an 
industry." 
SEC. 5. Section 701 of the Defense Production Act of 1950, as 
amended, is amended by adding after subsection (c) a new subsection 
as follows: 
" (d) In order to further the objectives and purposes of this section, 
the Office of Defense Mobilization is directed to investigate the dis-
tribution of defense contracts with particular reference to the share 
of such contracts which has gone and is now going to small business, 
either directly or by subcontract; to review the policies, procedures, 
and administrative arrangements now being followed in order to in-
crease participation by small business in the mobilization program; 
to explore all practical ways, whether by amendments to laws, policies, 
regulations, or administrative arrangements, or otherwise, to increase 
the share of defense procurement going to small business; to get from 
the departments and agencies engaged in procurement, and from other 
appropriate agencies including the Small Business Administration, 
their views and recommendations on ways to increase the share of 
69 
S T A T . ] 
PUBLIC LAW 295-AUG. 9, 1955 
581 
procurement going to small business; and to make a report to the Pres-
ident and the Congress, not later than six months after the enactment 
of the Defense Production Act Amendments of 1955, which report 
shall contain the following: (i) a full statement of the steps taken by 
the Office of Defense Mobilization in making investigations required 
by this subsection; (ii) the findings of the Office of Defense Mobiliza-
tion with respect to the share of procurement which has gone and is 
now going to small business; (iii) a full and complete statement of 
the actions taken by the Office of Defense Mobilization and other 
agencies to increase such small business share; (iv) a full and com-
plete statement of the recommendations made by the procurement 
agencies and other agencies consulted by the Office of Defense Mobil-
ization; and (v) specific recommendations by the Office of Defense 
Mobilization for further action to increase the share of procurement 
going to small business." 
SEC. 6. Section 708 of the Defense Production Act of 1950, as 
amended, is amended— 
(1) by inserting before the period at the end of the first sen-
tence of subsection (b) a colon and the following: ^''Provided^ 
however^ That after the enactment of the Defense Production Act 
Amendments of 1955, the exemption from the prohibitions of the 
antitrust laws and the Federal Trade Commission Act of the 
United States shall apply only (1) to acts and omissions to act 
requested by the President or his duly authorized delegate pur-
suant to duly approved voluntary agreements or programs re-
lating solely to the exchange between actual or prospective con-
tractors of technical or other information, production techniques, 
and patents or patent rights, relating to equipment used primarily 
by or for the military which is being procured by the Depart-
ment of Defense or any department thereof, and the exchange of 
materials, equipment, and personnel to be used in the production 
of such equipment; and (2) to acts and omissions to act requested 
by the President or his duly authorized delegate pursuant to 
voluntary agreements or programs which were duly approved 
under this section before the enactment of the Defense Production 
Act Amendments of 1955. The Attorney General shall review 
each of the voluntary agreements and programs covered by this 
section, and the activities being carried on thereunder, and, if he 
finds, after such review and after consultation with the Director 
of the Office of Defense Mobilization and other interested agencies, 
that the adverse effects of any such agreement or program on the 
competitive free enterprise system outweigh the benefits of the 
agreement or program to the national defense, he shall withdraw 
his approval in accordance with subsection (d) of this section. 
This review and determination shall be made within ninety days 
after the enactment of the Defense Production Act Amendments 
of 1955.";. 
, 
. 
(2) by inserting in subsection (d) thereof after the word "here-
under" the following: ", or upon withdrawal by the Attorney 
General of his approval of the voluntary agreement or program 
on which the request or finding is based,"; 
(3) by inserting after the first sentence of subsection (e) 
thereof the following new sentence: "Such surveys, and the reports 
hereafter required, shall include studies of the voluntary agree-
ments and programs authorized by this section."; 
(4) by striking out from the last sentence of subsection (e) 
thereof the words "at such times thereafter as he deems desirable" 
and inserting in lieu thereof the words "at least once every three 
months". 
Reports to P resi-
dent and Congress. 
50 u s e 
a p p . 
2158. 
Voluntary agrea-
m e n t s and pro-
grams. 
5 2 Stat. 117. 
15 u s e 58. 
R e v i e w by At-
torney General. 
582 
PUBLIC LAW 295-AUG. 9, 1955 
[69 S T A T . 
50 u s e 
a p p . 
2160. 
Employment 
o f 
p e r s o n s without 
compensation. 
App o in t m e nt 
policies, etc. 
Exemptions. 
62 Stat. 697. 
W r i t t e n certifi-
cation. 
SEC. 7. Section 710 (b) of the Defense Production Act of 1950, as 
amended, is amended to read as follows: 
"(b) (1) The President is further authorized, to the extent he deems 
it necessary and appropriate in order to carry out the provisions of 
this Act, and subject to such regulations as he may issue, to employ 
persons of outstanding experience and ability without compensation; 
"(2) The President shall be guided in the exercise of the authority 
provided in this subsection tiy the following policies: 
"(i) So far as possible, operations under the Act shall be carried 
on by full-time, salaried employees of the Government, and appoint-
ments under this authority shall be to advisory or consultative posi-
tions only. 
"(ii) Appointments to positions other than advisory or consulta-
tive may be made under this authority only when the requirements 
of the position are such that the incumbent must personally possess 
outstanding experience and ability not obtainable on a full-time, sal-
aried basis. 
"(iii) In the appointment of personnel and in assignment of their 
duties, the head of the department or agency involved shall take steps 
to avoid, to as great an extent as possible, any conflict between the 
governmental duties and the private interests of such personnel. 
"(3) Appointees under this subsection (b) shall, when policy mat-
ters are involved, be limited to advising appropriate full-time salaried 
Government officials who are responsible for making policy decisions. 
"(4) Any person employed under this subsection (b) is hereby 
exempted, with respect to such employment, from the operation of 
sections 281, 283, 284, 434, and 1914 of title 18, United States Code, 
and section 190 of the Revised Statutes (5 U. S. C. 99), except that— 
" (i) exemption hereunder shall not extend to the negotiation or 
execution, by such appointee, of Government contracts with the 
private employer of such appointee or with any corporation, joint 
stock company, association, firm, partnership, or other entity 
in the pecuniary profits or contracts of which the appointee has 
any direct or indirect interest; 
"(ii) exemption hereunder shall not extend to making any 
recommendation or taking any action with respect to individual 
applications to the Government for relief or assistance, on appeal 
or otherwise, made by the private employer of the appointee or 
by any corporation, joint stock company, association, firm, part-
nership, or other entity in the pecuniary profits or contracts of 
which the appointee has any direct or indirect interest; 
"(iii) exemption hereunder shall not extend to the prosecution 
by the appointee, or participation by the appointee in any fashion 
in the prosecution, of any claims against the Government involv-
ing any matter concerning which the appointee had any responsi-
bility during his employment under this subsection, during the 
period of such employment and the further period of two years 
after the termination of such employment; and 
"(iv) exemption hereunder shall not extend to the receipt or 
payment of salary in connection with the appointee's Government 
service hereunder from any source other than the private employer 
of the appointee at the time of his appointment hereunder. 
" (5) Appointments under this subsection (b) shall be supported by 
written certification by the head of the employing department or 
agency— 
"(i) that the appointment is necessary and appropriate in 
order to carry out the provisions of the Act; 
" (ii) that the duties of the position to which the appointment is 
being made require outstanding experience and ability; 
69 S T A T . ] 
PUBLIC LAW 295-AUG. 9, 1955 
583 
"(iii) that the appointee has the outstanding experience and 
ability required by the position; and 
"(iv) that the department or agency head has been unable to 
obtain a person with the qualifications necessary for the position 
on a full-time, salaried basis. 
"(6) The heads of the departments or agencies making appoint-
ments under this subsection (b) shall file with the Division of the 
Federal Register for publication in the Federal Register a statement 
including the name of the appointee, the employing department or 
agency, the title of his position, and the name of his private employer, 
and the appointee shall file with such Division for publication in the 
Federal Register a statement listing the names of any corporations of 
which he is an officer or director or within sixty days preceding his 
appointment has been an officer or director, or in which he owns, or 
within sixty days preceding his appointment has owned, any stocks, 
bonds, or other financial interests, and the names of any partnerships 
in which he is, or was within sixty days preceding his appointment, a 
partner, and the names of any other businesses in which he owns, or 
within such sixty-day period has owned, any similar interest. At the 
end of each succeeding six-month period, the appointee shall file with 
such Division for publication in the Federal Register a statement show-
ing any changes in such interests during such period. 
"(7) At least once every three months the Chairman of the United 
States Civil Service Commission shall survey appointments made 
under this subsection and shall report his findings to the President 
and the Joint Committee on Defense Production and make such rec-
ommendations as he may deem proper. 
"(8) Persons appointed under the authority of this subsection may 
be allowed transportation and not to exceed $15 per diem in lieu of 
subsistence while away from their homes or regular places of busi-
ness pursuant to such appointment." 
SEC. 8. Section 710 of the Defense Production Act of 1950, as 
amended, is further amended by redesignating subsections "(e)" and 
" ( f ) " as subsections " ( f ) " and "(g)", respectively, and by inserting 
after subsection " ( d ) " a new subsection as follows: 
"(e) The President is further authorized to provide for the estaJD-
lishment and training of a nucleus executive reserve for employment 
jn executive positions in Government during periods of emergency. 
Members of this executive reserve who are not full-time Government 
employees may be allowed transportation and not to exceed $15 per 
diem in lieu of subsistence while away from their homes or regular 
places of business for the purpose of participating in the executive 
reserve training program. The President is authorized to provide by 
regulation for the exemption of such persons who are not full-time 
Government employees from the operation of sections 281, 283, 284, 
134, and 1914 of title 18 of the United States Code and section 190 
of the Revised Statutes (5 U. S. C. 99)." 
SEC. 9. Section 712 of the Defense Production Act of 1950, as 
amended, is amended— 
(1) by striking out "25" from the second sentence of subsection 
(c) thereof and inserting in lieu thereof "40"; and 
(2) by striking out "$50,000" in the first sentence of subsection 
(e) thereof and inserting in lieu thereof "$65,000". 
SEC. 10. Section 717 of the Defense Production Act of 1950, as 
amended, is amended by striking out "July 31, 1955" from the first 
sentence of subsection (a) thereof and inserting in lieu thereof "June 
30,1956". 
SEC. 11. The provisions of this Act shall take effect as of the close 
of July 31, 1955. 
Approved August 9, 1955. 
P u b l i c ation of 
statements in FR. 
S u r v e y of ap-
p o i n t m e n t s ; re-
port. 
Transportation; 
per diems. 
50 U S C 
a p p . 
2160. 
Nucleus 
exect^ 
tive reserve. 
62 Stat. 697. 
50 U S C app 
2162. 
Ante, p. 225. 
Effective date.