Coronavirus Update: The Defense Production Act Is Not a Contractor’s Shield Against Local Shutdown Orders
Morrison & Foerster – The President is invoking the Defense Production Act (DPA), 50 U.S.C. §§ 4501 et seq., to acquire much needed medical supplies and equipment. Meanwhile, contractors that already are performing DX or DO rated orders under the DPA are asking if the Act can be used affirmatively by them to avoid shutdown or shelter-in-place orders issued by state and local health authorities. The short answer is “no,” the DPA per sedoes not permit contractors to continue operations in the face of a clear order precluding operations.
