Page 1 GAO-25-107688 Defense Production Act
The Defense Production Act (DPA) of 1950 is a key tool that delegated federal
agencies can use to ensure the supply and timely delivery of products, materials,
and services critical to national defense in times of peace as well as national
emergencies. For example, agencies used the DPA to secure access to personal
protective equipment like gloves and masks during the COVID-19 response and
to replenish U.S. supplies of ammunition sent to Ukraine. The various DPA
authorities enable the domestic industrial base—which includes companies in the
U.S. and certain allied nations—to maintain or increase production of key
defense resources.
Currently, the DPA provides the President three broad authorities—Titles I, III,
and VII. Title I authority allows agencies and other entities delegated authority by
the President to place priority ratings on certain contracts and orders and allocate
materials to support national defense. Title III allows agencies delegated by the
President to provide financial incentives—through either investments or loans—
to the domestic industrial base to add new or increase existing capacity. Title VII
allows agencies delegated by the President to survey the industrial base for
vulnerabilities, establish voluntary agreements with industry to foster
collaboration, and create an executive reserve to include private sector personnel
to aid federal agencies in times of national emergency, among other things.
In 2018, Congress reauthorized the DPA through September 30, 2025, at which
point most of the DPA’s provisions are set to expire unless action is taken by
Congress. We were asked to review agencies’ use of the DPA authorities since
the last reauthorization, including challenges and areas for improvement. This
report describes how selected federal agencies have used each of the DPA
authorities from fiscal years 2018 to 2024 as well as examples of outcomes of its
use. It also examines challenges experienced and actions agencies can take to
more effectively use the DPA authorities. For this review, we selected the seven
federal agencies delegated responsibility for implementing the expiring DPA
authorities identified in Executive Order 13603—the Departments of Agriculture
(USDA), Commerce, Defense (DOD), Energy (DOE), Homeland Security (DHS),
Health and Human Services (HHS), and Transportation.
• From fiscal years 2018 to 2024, the selected agencies placed over 2.5 million
Title I priority ratings on contracts or orders, which require the receiving
companies to preference the delivery of goods or services needed to support
national defense. For example, DOD uses priority ratings to support the
production of military aircraft and ships, among others.
• The selected agencies made 222 Title III investments valued at
approximately $3.2 billion from fiscal years 2018 to 2024 to bolster the
domestic industrial base. DOD made 208 of these investments to respond to
COVID-19 and increase production of strategic and critical materials used in
weapon systems, among others.
U.S. Government Accountability Office
Defense Production Act: Information Sharing
Needed to Improve Use of Authorities
-25-107688
Report to Congressional Requesters
