[USC03] 50 USC 4511: Priority in contracts and orders
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50 USC 4511: Priority in contracts and orders Text contains those laws in effect on June 18, 2019
From Title 50-WAR AND NATIONAL DEFENSECHAPTER 55-DEFENSE PRODUCTIONSUBCHAPTER I-PRIORITIES AND ALLOCATIONS

§4511. Priority in contracts and orders

(a) Allocation of materials, services, and facilities

The President is hereby authorized (1) to require that performance under contracts or orders (other than contracts of employment) which he deems necessary or appropriate to promote the national defense shall take priority over performance under any other contract or order, and, for the purpose of assuring such priority, to require acceptance and performance of such contracts or orders in preference to other contracts or orders by any person he finds to be capable of their performance, and (2) to allocate materials, services, and facilities in such manner, upon such conditions, and to such extent as he shall deem necessary or appropriate to promote the national defense.

(b) Critical and strategic materials

The powers granted in this section shall not be used to control the general distribution of any material in the civilian market unless the President finds (1) that such material is a scarce and critical material essential to the national defense, and (2) that the requirements of the national defense for such material cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market to such a degree as to create appreciable hardship.

(c) Domestic energy; materials, equipment, and services

(1) Notwithstanding any other provision of this chapter, the President may, by rule or order, require the allocation of, or the priority performance under contracts or orders (other than contracts of employment) relating to, materials, equipment, and services in order to maximize domestic energy supplies if he makes the findings required by paragraph (3) of this subsection.

(2) The authority granted by this subsection may not be used to require priority performance of contracts or orders, or to control the distribution of any supplies of materials, services, and facilities in the marketplace, unless the President finds that-

(A) such materials, services, and facilities are scarce, critical, and essential-

(i) to maintain or expand exploration, production, refining, transportation;

(ii) to conserve energy supplies; or

(iii) to construct or maintain energy facilities; and


(B) maintenance or expansion of exploration, production, refining, transportation, or conservation of energy supplies or the construction and maintenance of energy facilities cannot reasonably be accomplished without exercising the authority specified in paragraph (1) of this subsection.


(3) During any period when the authority conferred by this subsection is being exercised, the President shall take such action as may be appropriate to assure that such authority is being exercised in a manner which assures the coordinated administration of such authority with any priorities or allocations established under subsection (a) of this section and in effect during the same period.

(d) Rules; consultation among agency heads

The head of each Federal agency to which the President delegates authority under this section shall-

(1) issue, and annually review and update whenever appropriate, final rules, in accordance with section 553 of title 5, that establish standards and procedures by which the priorities and allocations authority under this section is used to promote the national defense, under both emergency and nonemergency conditions; and

(2) as appropriate and to the extent practicable, consult with the heads of other Federal agencies to develop a consistent and unified Federal priorities and allocations system.

(Sept. 8, 1950, ch. 932, title I, §101, 64 Stat. 799 ; July 31, 1951, ch. 275, title I, §101(a), 65 Stat. 131 ; June 30, 1952, ch. 530, title I, §§101, 102, 66 Stat. 296 , 297; June 30, 1953, ch. 171, §3, 67 Stat. 129 ; Pub. L. 94–163, title I, §104(a), Dec. 22, 1975, 89 Stat. 878 ; Pub. L. 102–99, §6, Aug. 17, 1991, 105 Stat. 490 ; Pub. L. 111–67, §4, Sept. 30, 2009, 123 Stat. 2009 ; Pub. L. 113–172, §3, Sept. 26, 2014, 128 Stat. 1897 .)

Termination of Section

For termination of section, see section 4564(a) of this title.

References in Text

This chapter, referred to in subsec. (c)(1), was in the original "this Act", meaning act Sept. 8, 1950, ch. 932, 64 Stat. 798 , known as the Defense Production Act of 1950, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 4501 of this title and Tables.

Codification

Section was formerly classified to section 2071 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Amendments

2014-Subsec. (d)(1). Pub. L. 113–172 substituted "issue, and annually review and update whenever appropriate, final rules" for "not later than 270 days after the date of enactment of the Defense Production Act Reauthorization of 2009, issue final rules".

2009-Subsec. (d). Pub. L. 111–67 added subsec. (d).

1991-Subsec. (a)(2). Pub. L. 102–99, §6(1), substituted "materials, services, and facilities" for "materials and facilities".

Subsec. (c)(1). Pub. L. 102–99, §6(2), substituted "materials, equipment, and services" for "supplies of materials and equipment".

Subsec. (c)(2) to (4). Pub. L. 102–99, §6(3), (4), added par. (2), redesignated par. (4) as (3), and struck out former pars. (2) and (3) which read as follows:

"(2) The President shall report to the Congress within sixty days after December 22, 1975, on the manner in which the authority contained in paragraph (1) will be administered. This report shall include the manner in which allocations will be made, the procedure for requests and appeals, the criteria for determining priorities as between competing requests, and the office or agency which will administer such authorities.

"(3) The authority granted in this subsection may not be used to require priority performance of contracts or orders, or to control the distribution of any supplies of materials and equipment in the marketplace, unless the President finds that-

"(A) such supplies are scarce, critical, and essential to maintain or further (i) exploration, production, refining, transportation, or (ii) the conservation of energy supplies, or (iii) for the construction and maintenance of energy facilities; and

"(B) maintenance or furtherance of exploration, production, refining, transportation, or conservation of energy supplies or the construction and maintenance of energy facilities cannot reasonably be accomplished without exercising the authority specified in paragraph (1) of this subsection."

1975-Subsec. (c). Pub. L. 94–163 added subsec. (c).

1953-Subsec. (a). Act June 30, 1953, struck out provisions which related to slaughtering of livestock and allocation of meat and meat products.

Subsec. (b). Act June 30, 1953, retained priorities and allocation authority for defense production but generally to discontinue such authority with respect to the civilian market except in the special cases where, because of shortages and demands of the defense effort, there otherwise would be a significant dislocation in the civilian market resulting in appreciable hardship.

1952-Act June 30, 1952, redesignated existing provisions as subsec. (a), inserted provisions relating to meat and meat products, and added subsec. (b).

1951-Act July 31, 1951, inserted provision relating to slaughtering of livestock.

Effective Date of 1991 Amendment

Pub. L. 102–99, §7, Aug. 17, 1991, 105 Stat. 490 , provided that: "This Act [see Tables for classification] shall take effect on October 20, 1990."

Delegation of Functions

Functions of President under this chapter relating to production, conservation, use, control, distribution, and allocation of energy, delegated to Secretary of Energy, see section 4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set out as a note under section 761 of Title 15, Commerce and Trade.

For delegation of certain authority of President under this section, see sections 201 to 203 of Ex. Ord. No. 13603, Mar. 16, 2012, 77 F.R. 16652, 16653, set out as a note under section 4553 of this title.

Report on Industry Preparedness

Pub. L. 110–53, title X, §1002(b), Aug. 3, 2007, 121 Stat. 375 , provided that: "Not later than 6 months after the last day of fiscal year 2007 and each subsequent fiscal year, the Secretary of Homeland Security, in cooperation with the Secretary of Commerce, the Secretary of Transportation, the Secretary of Defense, and the Secretary of Energy, shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Financial Services and the Committee on Homeland Security of the House of Representatives a report that details the actions taken by the Federal Government to ensure, in accordance with subsections (a) and (c) of section 101 of the Defense Production Act of 1950 (50 U.S.C. App. 2071) [now 50 U.S.C. 4511], the preparedness of industry to reduce interruption of critical infrastructure and key resource operations during an act of terrorism, natural catastrophe, or other similar national emergency."

Presidential Authority To Issue Orders Relating to Domestic Energy Supplies

Pub. L. 94–163, title I, §104(b), Dec. 22, 1975, 89 Stat. 879 , as amended by Pub. L. 99–58, title I, §101(b), July 2, 1985, 99 Stat. 102 ; Pub. L. 101–46, §1(2), June 30, 1989, 103 Stat. 132 ; Pub. L. 101–262, §2(a), Mar. 31, 1990, 104 Stat. 124 ; Pub. L. 101–360, §2(a), Aug. 10, 1990, 104 Stat. 421 ; Pub. L. 101–383, §2(1), Sept. 15, 1990, 104 Stat. 727 ; Pub. L. 105–388, §6, Nov. 13, 1998, 112 Stat. 3479 ; Pub. L. 106–469, title I, §103(2), Nov. 9, 2000, 114 Stat. 2029 , provided that: "The expiration of the Defense Production Act of 1950 [50 U.S.C. 4501 et seq.] or any amendment of such Act after the date of enactment of this Act [Dec. 22, 1975] shall not affect the authority of the President under section 101(c) of such Act [50 U.S.C. 4511(c)], as amended by subsection (a) of this section and in effect on the date of enactment of this Act, unless Congress by law expressly provides to the contrary."