>DEFENSE PRODUCTION ACT
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"Provisions
The Act contains three major sections. The first authorizes the President to require businesses to sign contracts or fulfill orders deemed necessary for national defense. The second authorizes the President to establish mechanisms (such as regulations, orders or agencies) to allocate materials, services and facilities to promote national defense. The third section authorizes the President to control the civilian economy so that scarce and/or critical materials necessary to the national defense effort are available for defense needs.[3]
The Act also authorizes the President to requisition property, force industry to expand production and the supply of basic resources, impose wage and price controls, settle labor disputes, control consumer and real estate credit, establish contractual priorities, and allocate raw materials towards national defense.[3]
The President's authority to place contracts under the DPA is the part of the Act most often used by the Department of Defense (DOD) since the 1970s. Most of the other functions of the Act are administered by the Office of Strategic Industries and Economic Security (SIES) in the Bureau of Industry and Security in the Department of Commerce.[4]
The Defense Priorities and Allocations System institutes a rating system for contracts and purchase orders.[5] The highest priority is DX, which must be approved by the Secretary of Defense. The next level down is DO, and below that are unrated contracts."