DPAS Amendments Finalized, effective August 21

The Bureau of Industry and Security is finalizing amendments to its Defense Priorities and Allocations System (DPAS) regulation as originally proposed on February 7, 2024 with minor technical amendments (see  [11713]).

The DPAS establishes procedures for the placement, acceptance, and performance of priority rated contracts and orders for industrial resources, and for the allocation of materials, services, and facilities in support of approved national defense programs. 

This final rule

• clarifies existing standards and procedures by which BIS may provide Special Priorities Assistance (SPA);
• revises Schedule I to provide transparency and differentiation between other departments' priorities jurisdiction and the Department of Commerce's jurisdiction; and
• provides technical edits to reflect certain non-substantive updates since the DPAS regulation was last amended in 2014, including updated contact information, legal citations, and definitions.

The two technical amendments are made to accurately reflect updated information sourced from other Federal agencies.

Modest Impact of the Rule

BIS believes this final rule merely provides clarifications and transparency to Federal, State, local, Tribal, and territorial government agencies, foreign governments, and the public to ensure ease of understanding and implementation of established procedures and will not have a significant economic impact on government agencies or the public. No comments were received and BIS is finalizing this section with no changes.

These changes improve the ease, clarity, and transparency of the existing standards and procedures used to authorize and require priority performance of certain contracts or orders that promote the national defense over other contracts and orders.

The changes to ensure consistency with the Defense Production Act of 1950 (DPA) and E.O. 13603; provide clarity on procedures for the placement, acceptance, and performance of the Defense Priorities and Allocations System (DPAS) priority rated orders; and provide transparency to the process for parties to request SPA.

• The standards and process under which a rated order is authorized, placed, or performed on are not changed with this final rule.
• There are no modifications to the procedures for the placement, acceptance, and performance of rated orders or for the allocation of materials, services, and facilities.
• Firms are not required to reduce the total volume of orders or require the recipient of a rated order to reduce prices or provide rated orders with more favorable terms than comparable unrated orders.
• Nor do the changes amend the requirements or procedures for requesting Special Priorities Assistance (SPA).

This final rule is effective August 21, 2024.  [89 FR 58965]