John Shire, CPA and Asa Gilliland

John Shire, CPA and Asa Gilliland

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What Could Defense Production Act Mean?

The President has announced he has invoked the 1950 Defense Production Act (DPA).  This act provides the Government with the ability to direct businesses to accept contracts and increase the production of necessary goods and services.  The act has been used numerous times since 1950 to support emergencies, including natural disasters and the war on terrorism.  The current fight with COVID-19 has necessitated it once again.  A July 28, 2014, Congressional Research Service paper titled “The Defense Production Act of 1950: History, Authorities, and Reauthorization” summarized the current act to include:

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Topics: Contracts & Subcontracts Administration, Government Regulations, COVID-19