Coronavirus May Compel Companies To Do Business With The Federal Government Under Defense Production Act



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 coronavirus (COVID-19). Under the authority of the DPA, HHS can issue "rated orders" compelling businesses to provide health and medical resources in front of all other customer orders, with a short response time and tight delivery deadline. Companies that have never done business with the federal government but that manufacture medical devices and supplies, including ventilators, masks and gloves, should ensure their personnel are aware of the president's executive order and obligations under the DPA.
 
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