FAR 11.602—General.
Plain-English Summary
FAR 11.602 explains the legal basis for the Defense Priorities and Allocations System (DPAS) and the government’s authority to give certain contracts and orders priority over others. It covers two main topics: first, the Defense Production Act (DPA) authority that allows the President to require preferential acceptance and performance of contracts and orders supporting approved national defense and energy programs, and to allocate materials, services, and facilities to support those programs; and second, the President’s delegation of that authority through Executive Order 12919, which assigned administration of DPAS to the Secretary of Commerce. In practical terms, this section tells contractors and contracting officers why some requirements may carry priority ratings and why suppliers may be required to accept and expedite rated orders ahead of unrated work. It also points readers to the Department of Commerce’s DPAS program for operational guidance, since the FAR section itself is a high-level statement of authority rather than a detailed procedures manual. The section matters because DPAS can affect scheduling, subcontracting, production planning, and compliance obligations across the supply chain for defense and energy-related programs.
Key Rules
DPA priority authority
The Defense Production Act authorizes the President to require preferential acceptance and performance of contracts and orders that support approved national defense and energy programs. It also allows the government to allocate materials, services, and facilities to support those programs.
Executive delegation to Commerce
The President delegated the DPA priorities and allocations authorities in Executive Order 12919. Under that delegation, the Secretary of Commerce is responsible for administering the DPAS.
DPAS is the operating system
DPAS is the practical mechanism used to implement priorities and allocations authority. The FAR section points users to the Department of Commerce DPAS resources for the detailed rules, procedures, and current program guidance.
Applies to approved programs only
Priority and allocation authority is not general-purpose; it applies to approved national defense and energy programs. A rated order or allocation action must be tied to that authorized purpose.
Responsibilities
President
Exercises the statutory authority under the Defense Production Act to require preferential acceptance and performance of qualifying contracts and orders and to allocate resources supporting approved national defense and energy programs.
Secretary of Commerce
Administers the Defense Priorities and Allocations System under the President’s delegation and issues or oversees the program guidance that implements priorities and allocations authority.
Contracting Officers
Recognize when a requirement may be subject to DPAS authority, use the proper program guidance when issuing or managing rated orders, and ensure contract actions align with the applicable priorities rules.
Contractors and Suppliers
Understand that certain rated orders may require preferential acceptance and performance, comply with DPAS requirements when applicable, and manage production and supply decisions accordingly.
Practical Implications
DPAS can change normal scheduling and sourcing decisions because rated orders may have to be accepted and performed ahead of unrated work.
Contractors should not assume every defense or energy-related contract is automatically rated; the authority applies only when the order is properly issued under the approved program.
A common pitfall is relying on the FAR text alone; the detailed compliance obligations are in DPAS regulations and Commerce guidance, not in this section.
Supply-chain flowdown matters: subcontractors and vendors may also be affected if a prime contract carries a priority rating.
Contracting officers and contractors should verify current DPAS procedures and rating requirements through the Department of Commerce resources, since operational details can change and are not fully spelled out in FAR 11.602.
Official Regulatory Text
(a) Under Title I of the Defense Production Act of 1950 (50 U.S.C. App.2061, et seq .), the President is authorized to require preferential acceptance and performance of contracts and orders supporting certain approved national defense and energy programs and to allocate materials, services, and facilities in such a manner as to promote these approved programs. (b) The President delegated the priorities and allocations authorities of the Defense Production Act in Executive Order 12919. As part of that delegation, the President designated the Secretary of Commerce to administer the DPAS. For more information, check the DPAS website at: https://www.bis.doc.gov/index.php/other-areas/strategic-industries-and-economic-security-sies/defense-priorities-a-allocations-system-program-dpas .