Defense Production Act brings compliance risks for vendors

     Federal agencies have utilized the Defense Production Act (DPA) in an expanded fashion in recent weeks to order contractors to produce medical supplies--including masks and ventilators--for COVID-19 response.

      In the past, the DPA was primarily for defense. Recently, that has broadened to include public health.

      Under the DPA, agencies may place top priority “rated orders” on industry for products and services. Compliance is mandatory. The DPA orders take precedence over all others.

      While the recent DPA orders are intended for a short-term emergency, affected vendors face long-term risks of liability and litigation...more....