Impact of Shortages of Processed Materials on Programs of Vital National Interest

PSAD-76-14: Published: Feb 27, 1976. Publicly Released: Feb 27, 1976.

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During periods of shortages in processed materials, some Federal programs of vital national interest are delayed because they do not qualify as "defense related" and, therefore, cannot obtain priority ratings for procurement.

In 1973 and 1974 contractors were faced with producer-imposed material allocations, rapidly increasing procurement leadtimes, and rising prices. The situation was complicated by producers' imposing allocation systems on their customers and refusing to accept orders from new customers. Many of the countermeasures taken were basically good management practices which should have been employed earlier. The decision to provide priority support for civil and civilian programs should depend upon an independent and balanced assessment of urgent needs.

Matter for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: Congress should consider amending the Defense Production Act to broaden application of the priority and allocation authority to include nondefense programs of vital national interest. To prevent competition, a single agency should be authorized to administer all priority programs.


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