The
Defense Production Act (
Pub.L. 81-774) is a
United States law enacted on September 8, 1950, in response to the start of the
Korean War. It was part of a broad
civil defense and war
mobilization effort in the context of the
Cold War. Its implementing regulations, the Defense Priorities and Allocation System (DPAS), are located at 15
CFR §§700 to 700.93. The Act has been periodically reauthorized and amended, and remains in force as of 2012.
The Act contains three major sections. The first authorizes the
President to require businesses to sign contracts or fulfill orders deemed necessary for national defense. The second authorizes the President to establish mechanisms (such as regulations, orders or agencies) to allocate materials, services and facilities to promote national defense. The third section authorizes the President to control the civilian economy so that scarce and/or critical materials necessary to the national defense effort are available for defense needs.
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The Act also authorizes the President to requisition property, force industry to expand production and the supply of basic resources, impose wage and price controls, settle labor disputes, control consumer and real estate credit, establish contractual priorities, and allocate raw materials to aid the national defense.
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The President's authority to place contracts under the DPA is the part of the Act most often used by the
Department of Defense (DOD) since the 1970s. Most of the other functions of the Act are administered by the Office of Strategic Industries and Economic Security (SIES) in the
Bureau of Industry and Security in the
Department of Commerce.
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