On April 29, 2020, the US Department of Defense (DoD) announced that it had exercised its authority under Title III of the Defense Production Act (“DPA”), 50 U.S.C. § 4501 et seq., to fund increased production capacity for swabs in light of the COVID-19 pandemic.
Section 303 of the DPA provides authority to ensure the timely availability of essential domestic industrial resources to support national defense and homeland security requirements through the use of tailored economic incentives. Authorized incentives include direct purchases and purchase commitments, development of emerging technologies, and the authority to procure and install equipment in private industrial facilities. 50 U.S.C. § 4533.
Previously in April, DoD provided $133 million in Title III contracts to bolster production of N95 respirators.