Defense Production Act: Key Provisions and Takeaways

Bradley Arant Boult Cummings – On March 18, 2020, President Donald Trump signed an Executive Order invoking and delegating the authorities of the Defense Production Act (DPA) to the secretary of the U.S. Department of Health and Human Services (HHS) to provide critical health and medical resources to respond to the spread of the novel coronavirus pandemic (COVID-19). On March 27, 2020, the president further directed HHS to utilize the DPA authorities to compel General Motors (GM) to manufacture ventilators.

Under the DPA authority, HHS can compel businesses to prioritize the production and supply of health and medical devices and equipment. These authorities apply equally to those that currently do business with the government, as well as those that never have. Manufacturers and producers of health and medical devices and equipment, including ventilators, masks, gloves, and other personal protective equipment, should familiarize themselves and their employees with the president’s executive order and the obligations they may face under the DPA.