Defense Production Act Orders for COVID-19 Related Medical Equipment
Piliero Mazza – The outbreak of COVID-19 has rapidly increased demand for medical supplies and equipment such as N95 respirators, isolation gowns, isolation masks, surgical masks, eye protection, intensive care unit equipment, and diagnostic testing supplies. To address the resulting shortage, President Trump issued Executive Order 13909 on March 18, 2020, under the Defense Production Act of 1950 (DPA), authorizing the Department of Health and Human Services to prioritize orders for “health and medical resources needed to respond to the spread of COVID-19, including personal protective equipment and ventilators.”
The DPA allows the government to issue “rated orders” which take priority over a contractor’s pre-existing government and commercial contracts. If you are a contractor providing medical equipment and you receive a rated order for the equipment identified above, it could disrupt pre-existing contracts and operations. Accordingly, it is critical to know your rights and obligations under the DPA.
