The COVID-19 pandemic threatens to stretch Americans’ medical resources incredibly thin. From disposable face masks to respirators, there is real concern that current supplies will be insufficient to treat the anticipated influx of COVID-19 patients.
To address this problem, many have pointed to the Defense Production Act as a way to increase production of this essential equipment. This is largely because the Defense Production Act substantially modifies some of the core government contracting principals articulated in the FAR.
From a legal standpoint the Defense Production Act provides some extraordinary powers to the President to increase domestic production in time of crisis, powers that drastically differ from the procedures of the FAR. Importantly, these changes would only impact procurements conducted directly under Defense Production Act authority. For those businesses subject to its provisions, though, the differences could be quite stark.
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