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ID-82-60 1 (1982-09-14)

handle is hein.gao/gaobabmqi0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE it 9 WASHINGTON, D.C. 20548 INrCRNATONAL DIVISION RELEASED 2 2Accoutf Not to be SEPTEMBER 14, 1982 B-20882 bcont. reyod OUts-id. h ~Fea B-20 826Office except an t!10 11a ~ by the o f _e c etr. elst8 the nener ...,,Of Congressio.n_ . ..sOf specific approv..al . .•-.a' Re/ations, ,. ,,d The Honorable Joseph M. Gaydos, Chairman Congressional Steel Caucus House of Representatives 119690 Subject: Priority Support for Energy Programs Under the Defense Production Act (GAO/ID-82-60) Dear Mr. Chairman: In your letter of May 13, 1982, to the Comptroller General, you requested, among other things, information on Commerce Depart- ment procedures under the Defense Production Act as they pertain to priorities for steel to meet future energy requirements. This letter responds to that part of your request. Section 101(c) of the Defense Production Act of 1950, as amended, authorizes the President to give priority support to cer- tain energy programs to maximize domestic energy supplies. After making certain findings, the President can require that contracts or orders for material and equipment relating to authorized energy programs be accepted and performed on a priority basis. This means, in essence, that priority-rated orders get production sched- uling and delivery preference for industrial materials, products, and services. In general, priority-rated contracts and purchase orders must be accepted and the items delivered by the contractor or supplier in preference to non-rated orders. This helps to ensure that authorized energy programs are kept on schedule. There are criminal penalties for violation of these requirements. To implement section 101(c) authority, the President dele- gated responsibilities to the Federal Emergency Management Agency and the Departments of Commerce and Energy. The Federal Emergency Management Agency is responsible for the direction, control, and overall coordination of the section 101(c) program. The Depart- ments of Commerce and Energy administer the day-to-day responsi- bilities of the program. 483363

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