AGG partner and leader of the firm’s Government Contracts practice, Tenley Carp, authored an article for Corporate Compliance Insights discussing the use of the Defense Production Act (“DPA”) historically and how it has become all the more relevant in the current political climate in which policymakers and national security analysts have expressed concern over an impending global military conflict.
Tenley provided insight into why private companies must react in response to the likelihood that the DPA will be used more aggressively, especially considering that DPA applies to any business that touches a critical supply chain and could become subject to DPA authorities during a national emergency, not just traditional defense contractors or companies that have existing federal contracts.
Businesses could face civil and criminal penalties, contractual liability and loss of government business for noncompliance. Tenley recommended preemptively identifying whether company products or services would be covered by DPA historically, review contractual protections, develop a DPA compliance framework, build flexibility into production and logistics, and engage with federal agencies before a crisis.
“As the global risk environment continues to evolve, the question is not whether the DPA will be used again — it’s when. And when that time comes, will your company be ready?” remarked Tenley.
To read the full article, please click here.
Author:
Tenley Carp
Email: tenley.carp@agg.com