Defense Production Act

The Defense Priorities and Allocations System (DPAS) is used to prioritize national defense-related contracts/orders throughout the U.S. supply chain to support military, energy, homeland security, emergency preparedness, and critical infrastructure (including the Water and Wastewater Systems Sector) requirements. Use of DPAS for applications other than military and energy requires a programmatic determination from the Federal Emergency Management Agency (FEMA) concurring that it is necessary to promote the national defense. Furthermore, such a request must be sponsored by a federal agency. For the Water and Wastewater Systems Sector, EPA is typically the sponsoring agency. EPA may also be the sponsoring agency if a product manufacturer or supplier experiences an issue with obtaining timely deliveries that impact their ability supply critical products to public water systems (PWSs) or publicly owned treatment works (POTWs).

Select the appropriate link below to learn more.

How PWSs and POTWs Can Request Assistance From EPA

Use of the DPAS by PWSs or POTWs should be limited to products other than water treatment chemicals. If the disruption involves treatment chemicals, visit EPA’s SDWA Section 1441 webpage for guidance on the process to request a certification of need.

If PWSs or POTWs experience a supply disruption for a product critical to its operations, other than a water treatment chemical, they should first attempt to resolve the situation by completing the following steps:

  • Work with their current supplier to understand the supply issue and attempt to arrange for product delivery.
  • Evaluate the timeframe in which the product is needed to sustain critical operations, and determine whether the product will be available within that timeframe.
  • Contact mutual aid networks (e.g., WARNs) to request assistance.
  • Consult with the primacy agency or permitting authority to inform them of the situation and determine if they can provide assistance with obtaining the needed product.

If these steps are completed without resolving the situation, PWSs and POTWs may contact EPA at [email protected] to request technical assistance. If during the course of technical assistance EPA determines that the DPA may be applicable, EPA will work with the requesting system to initiate and complete that process.

How PWSs and POTWs Can Request Use of DPAS for Prioritized Contracts/Orders

If a PWS or POTW needs assistance in obtaining timely deliveries of products critical to operations, a request for priority rating authority can be made to the Department of Commerce (DOC) Bureau of Industry and Security (BIS). To make this request, the following steps should be taken by the PWS or POTW:

  1. Complete the following three documents and provide them to EPA at [email protected]:
    • Letter addressed to FEMA requesting a programmatic determination that action under DPAS is necessary to promote the national defense. The letter must be provided on utility letterhead and signed by a PWS or POTW representative who is authorized to represent the PWS or POTW. (Letter template)
    • Application to Request EPA Sponsorship for a Rated Order under the Defense Production Act
    • Request for Special Priority Assistance Form (BIS-999)
  2. EPA will review these documents and advise the PWS or POTW if revisions are necessary.
  3. EPA will prepare a sponsorship letter and provide it to the PWS or POTW.
  4. Submit the (1) letter to FEMA, (2) EPA sponsorship letter, and (3) BIS-999 form to FEMA at [email protected]. FEMA will evaluate the package to determine whether Special Priorities Assistance is necessary to support the national defense. If FEMA makes a positive programmatic determination, it will forward the package to DOC. For more information about FEMA’s role in DPAS, visit the FEMA Defense Production Act website.
  5. DOC will review the request and may ask the PWS or POTW for additional information. DOC will provide notification to the PWS or POTW if a rating authorization is granted. If the request is found to not apply to the definition of national defense, it will be returned to the requestor.
  6. If a rating authorization is granted to the PWS or POTW, the system may place a rated order in accordance with the rating authorization provided by DOC and the provisions of the DPAS regulation.
  7. Any person who places or receives a rated order should be thoroughly familiar with, and must comply with, the provisions of the DPAS regulation. Willful violation of any of the provisions of Title I or section 705 or 707 of the DPA, the DPAS regulation, or an official action of the DOC is a criminal act, punishable as provided in the DPA and as set in § 700.74 of the DPAS regulation. DPAS program resources and training materials are available on the DOC/BIS DPAS website.

Note that it may take one month to process the form and another fifteen days for the vendor to accept the order. PWSs and POTWs are advised to be proactive and plan ahead if there is a potential shortage of a critical product and there are no alternative sources. Remember, if the product needed is a water treatment chemical, the SDWA 1441 process should be followed rather than the DPAS, as SDWA 1441 is generally a quicker process. If you have questions regarding this process, you may contact EPA at SupplyChainSupport@epa.gov.

How Product Suppliers and Manufacturers Can Request Assistance From EPA

If a product supplier experiences an issue with obtaining timely deliveries that impact their ability to supply critical products to PWSs or POTWs, they can contact EPA at [email protected] to request relief under the DPA. If the disruption involves treatment chemicals, visit EPA’s SDWA Section 1441 webpage for guidance on requesting a certification of need.

How Product Suppliers and Manufacturers Can Request Use of DPAS for Prioritized Contracts/Orders

  1. Complete the following three documents and provide them to EPA at [email protected]:
    •  Letter addressed to FEMA requesting a programmatic determination that action under DPAS is necessary to promote the national defense. The letter must be provided on company letterhead and signed by a representative who is authorized to represent the company.  
    • Application to Request EPA Sponsorship for a Rated Order under the Defense Production Act 
    • Request for Special Priority Assistance Form (BIS-999)
  2. While not required, suppliers or manufacturers are encouraged to include letters of support from PWSs or POTWs impacted by the supply disruption. This will strengthen the case for a positive programmatic determination from FEMA.
  3. EPA will review these documents and advise the company if revisions are necessary.
  4. EPA will prepare a sponsorship letter and provide it to the company.
  5. Submit the (1) letter to FEMA, (2) EPA sponsorship letter, and (3) BIS-999 form three documents to FEMA at [email protected]. FEMA will evaluate the package to determine whether Special Priorities Assistance is necessary to support the national defense. If FEMA makes a positive programmatic determination, it will forward the package to DOC. For more information about FEMA’s role in DPAS, visit the FEMA Defense Production Act website.
  6. DOC will review the request and may ask the company for additional information. DOC will provide notification to the company if a rating authorization is granted. If the request is found to not apply to the definition of national defense, it will be returned to the requestor.
  7. If a rating authorization is granted to the company, the company may place a rated order in accordance with the rating authorization provided by DOC and the provisions of the DPAS regulation.
  8. Any person who places or receives a rated order should be thoroughly familiar with, and must comply with, the provisions of the DPAS regulation. Willful violation of any of the provisions of Title I or section 705 or 707 of the DPA, the DPAS regulation, or an official action of the DOC is a criminal act, punishable as provided in the DPA and as set in § 700.74 of the DPAS regulation. DPAS program resources and training materials are available on the DOC/BIS DPAS website.

Note that it may take one month to process the form and another fifteen days for the vendor to accept the order.  If you have questions regarding this process, you may contact EPA at SupplyChainSupport@epa.gov.

Frequently Asked Questions about the DPA

When is it appropriate to use the DPA rather than SDWA 1441?

If the item needed is anything other than a water treatment chemical, the DPA should be used. If the needed item is a water treatment chemical, SDWA 1441 should be used.

Does a rated order issued under the DPA guarantee that a PWS, POTW, or company will receive the required item(s) in the timeframe they are needed?

No. A rated order is prioritized over all non-rated orders. However, if other customers have rated orders preceding issuance of a PWS/POTW/company’s rated order, or if the rated order is of a higher grade, those orders will be filled ahead of the PWS/POTW/company’s order. However, it is often still advantageous to request Special Priorities Assistance under the DPAS and secure a rated order for a critical item that is in short supply.

Are requests for Special Priorities Assistance under the DPA made public?

No. Information for neither the applicant nor the supplier is made public. This is unlike SDWA 1441 that requires EPA to publish applications in a Federal Register Notice.

Can a rating authorization under the DPA be used to order a manufacturer to produce a product it is not currently producing?

Under Title I of the DPA, a rated order cannot compel an entity to supply a commodity under conditions of force majeure or to resume production of a commodity that it has ceased to produce for market or other reasons.  For more information, please visit the DOC website.

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Last updated on June 13, 2024