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FEMA Coronavirus - Defense Production Act

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COVID-19 WHOLE-OF-AMERICA RESPONSE

What is the Defense Production Act (DPA)? CURRENT DPA AUTHORITIES COVID-19

AUTHORIZED IN 1950, THE DEFENSE PRODUCTION ACT WAS ENACTED SO THAT THE FEDERAL GOVERNMENT CAN USE PRIVATE INDUSTRY AS A RESOURCE FOR SUPPLIES IN TIMES OF WAR, NATURAL DISASTERS, AND TERRORIST ATTACKS.

EXPIRED AUTHORITIES AS OF 1953

TITLE I – PRIORITIES AND ALLOCATIONS

• Ensures timely availability of critical materials, equipment, and services produced in private industry in the interest of national defense, and to receive those materials, equipment, and services through contracts before any other competing interest. • Allows President to allocate or control general distribution of materials, services, and facilities.

TITLE III – EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY

• Authorizes the U.S. Government to financially incentivize private industry to produce supplies and services by expanding operations or speeding up production timelines.

TITLE VII – GENERAL PROVISIONS

• Allows for voluntary agreements between the U.S. Government and private industry for planning and coordinating actions to support response activities.

TITLE II AUTHORITY TO REQUISITION AND CONDEMN

TITLE IV PRICE AND WAGE STABILIZATION

TITLE V SETTLEMENT OF LABOR DISPUTES

TITLE VI CONTROL OF CONSUMER AND REAL ESTATE CREDIT


COVID-19 WHOLE-OF-AMERICA RESPONSE

COVID-19 DPA Timeline MARCH 27, 2020 First contract to General Motors for the production of 30,000 ventilators

APRIL 21, 2020 $133 million Title III investment in N95 respirator production

APRIL 24, 2020 NY residents charged with violating DPA anti-hoarding/price-gouging provisions

APRIL 3, 2020 Memorandum on Allocating Certain Scarce or Threatened Health and Medical Resources to Domestic Use

APRIL 20, 2020 $750 million Title III appropriations for health resources

APRIL 29, 2020 $75 million in Title III investments to increase nasal swab production

APRIL 8, 2020

APRIL 13, 2020

Contract to Philips for 2,500 ventilators to the Strategic National Stockpile by the end of May 2020 and a total of 43,000 ventilators by the end of December 2020.

APRIL 17, 2020

Five new contracts for ventilator production to General Electric, Hill-Rom, Medtronic, ResMed, and Vyaire

APRIL 14, 2020

Allocation order to review exports of five types of PPEneeded to respond to COVID-19

4 newpriority-rated orders for N95 respirators from 3M

MAY 5, 2020

MAY 14, 2020

Meat processing plants directed to continue or resume operations utilizing COVID-19 guidelines

DFC-DPA loan program will allow companies to borrow up to $500 million for use in COVID-19 efforts

DPA Outcomes The need for N95 will exceed National demand on or by October 1. U.S. production will increase from 40M N95 mask a month to 100M in August and will reach 160M N95 masks a month by the fall

Surgical Mask production will increase to 250M a month from below 100M a month before this fall. National demand will be met early 2021 once machines are installed and running

Swabs for testing is complete – using the DPA we will have national demand covered by October

Point of care test kits will reach 30M test kits a month by February 2021

Less than 2% of nursing homes indicated they are short of PPE such as N95 masks last week. That is a 4% decrease in shortage since May 31, 2020


COVID-19 WHOLE-OF-AMERICA RESPONSE

Why We Use DPA EXPANDING AMERICAN MANUFACTURING First contract to General Motors for the production of 30,000 ventilators Contract to Philips for 2,500 ventilators to the Strategic National Stockpile by the end of May 2020 and a total of 43,000 ventilators by the end of December 2020. Five new contracts for ventilator production to General Electric, Hill-Rom, Medtronic, ResMed, and Vyaire $133 million Title III investment in N95 respirator production $750 million Title III appropriations for health resources Allocation order to review exports of five types of PPEneeded to respond to COVID-19 Meat processing plants directed to continue or resume operations utilizing COVID-19 guidelines $75 million in Title III investments to increase nasal swab production NY residents charged with violating DPA anti-hoarding/ price-gouging provisions DFC-DPA loan program will allow companies to borrow up to $500 million for use in COVID-19 efforts 4 new priority-rated orders for N95 respirators from 3M

PROTECTING AMERICAN LIVES

CREATING JOBS

STRENGTHENING AMERICAN PPE SUPPLY CHAIN


COVID-19 WHOLE-OF-AMERICA RESPONSE

Who Has Participated in the DPA Supporting American Industry


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