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DCCUNEXT RIUNI
05714 - [B1226183]
(Priorities and materials Allocations under Defense Production
Act). ID-78-39; B-36983. April 24*, 1S78. 3 pp. * enclosure (9
VP.).
Report to Rep. Charles J. Carney, C'.airran, House of
Representctives: Conqressional Steol Caucus; by J. Kenneth
Fasick, Director, International Div.
issue Area: International Economic and Military Programs 1600);
Interuational Economic and military Programs: U.S.
Comparative Advantage in Trade and Technology (608).
Contact: International Div.
Budget Function: Natural Resources, Environment, and Energy:
Watsr Resources and Power (301).
Orqanization Concerned: Department of Commerce; General Services
Administration.
Congressional Relevance: Rep. Charles 3. Carney.
Authority: Defense Production Act of 1950. Inergi Policy and
Conservation Act of 1975.
The Defense Production Act and its implementing
regulations and procedures were revieed to determine the
procedures established for priorities and materials allozation
support for energy psoqrams. The Department of CommeCes
Assistant secretary for Industry and 1fade has adviseC that it
is difticult to estimate the potential demand for domestic steel
or other materials under this [Frograo. However, he believes that
the authority ot the statute is intended to be used sparingly
and does not anticipate that the impact on steel Frcducers will
be great. Since the program is new, it is not Eossible to judge
how well it will work. During past periods of shortages in
processed materials, some Federal programs of vital national
interest have been delayed. During shortages in 1973 and 1974,
defense contractors were not as adversely affected as nondefense
contractors since the former had priczity ratings. 7he authority
of a single agency to administer priority programs prevents
creation of a materials priorities and allocation system that
would conflict with the Defense Priorities Syster anm the
Defense Baterials System (DPS/DMS). One of the features cf the
DPS/DFS system is the Special Priorities Assistance Program
which is intended to resolve conflicts when a defense-related
contract or order is refused or the delivery date is not met.
This proqrat will uot be available tor energy programs and
projects. (BRS)](ViewImageLocal?handle=hein.gao/gaobaaxcp0001&div=1&collection=&method=preview&ext=.png&size=3)