Commerce Proposes Updates To Reauthorized Defense Production Act

On June 7, 2010, the Department of Commerce issued a proposed rule implementing 2009 legislation to reauthorize and improve the Defense Production Act. In addition to reauthorizing the use by designated federal agencies of priority ratings on contracts or orders, requiring contractors (and potentially their subcontractors and vendors) to give priority to those contracts or orders over other contracts or orders, the proposed rule "clarifies" the standards and procedures for issuing a rated contract/order and establishes new procedures by which an agency may allocate scarce materials, services, and facilities to promote the national defense or to respond to a national emergency.