Title I – Priorities and Allocations
ASPR leads, coordinates, centralizes, and implements the use of HHS' delegated Defense Production Act (DPA) Title I authorities to ensure the United States has a robust supply of health resources necessary to prepare for and respond to public health threats.
What is HRPAS?
The
Health Resources Priorities and Allocations System (HRPAS) establishes standards and procedures for implementing HHS' priorities and allocation authorities to support programs that have been determined necessary or appropriate to promote the national defense. HHS is delegated authority, through Section 201 of Executive Order 13603 to implement priorities and allocations provisions for health resources, defined as “drugs, biological products, medical devices, materials, facilities, health supplies, services, and equipment required to diagnose, mitigate, or prevent the impairment of, improve, treat, cure, or restore the physical or mental health conditions of the population."
What is a rated order?
A rated order is a contract or order placed in support of a national defense program, pursuant to Title I of the DPA.
A rated order takes precedence over all unrated orders, when necessary to meet delivery dates specified in the rated order.
A “priority rating" on a contract or purchase order notifies a contractor, subcontractor, or supplier that a contract is supporting a national defense program and that the supplier is required by law to accept and give the order priority over unrated or commercial orders, as necessary to meet the required delivery date of each rated order, in accordance with the provisions of the HRPAS.
As delegated by the President of the United States, HHS has the authority to issue priority ratings on contracts or purchase orders (other than contracts of employment) for health resources (as defined in EO 13603) that have been determined necessary or appropriate to promote the national defense.
What are the requirements of a rated order?
To be valid and enforceable, each rated order must contain the following four requirements:
- Appropriate priority rating designation (DO-HR or DX-HR),
- A required delivery date or dates,
- Digital or written signature of a person authorized to place rated orders, and
- Certification statement: This is a rated order certified for national defense use, and you are required to follow all the provisions of the HRPAS regulation (45 CFR part 101).
DO-rated orders must be given preference over unrated orders, if necessary, to meet required delivery dates, even if this requires the diversion of items being processed or ready for delivery or services being performed against unrated orders. Similarly, DX-rated orders must be given preference over DO-rated orders and unrated orders. The HHS Secretary has delegated DO priority rating authority to the HHS Assistant Secretary for Preparedness and Response but retains the authority to issue DX priority rating authorization.
Frequently Asked Questions
How are HRPAS and DPAS different?
HRPAS and DPAS are both part of the Federal Priorities and Allocations System (FPAS). HRPAS is specific to “health resources" while DPAS (managed by Department of Commerce) is specific to industrial resources, which are all materials, services, facilities, including construction materials, The authority for which has not been delegated to another federal agency under EO 13603.
What must a business do when it receives a rated order?
Generally, any company in the United States must accept and fill a rated order for health resources that the company normally supplies. The recipient of a rated order must schedule its operations, including the acquisition of all needed production items, in a timely manner to satisfy the delivery requirements of each rated order. In most cases, companies that receive rated orders for health resources must, in turn, place rated orders with their subcontractors, suppliers, and vendors for health resources they need to fill the rated orders. This allows the priority rating to “extend" from contractor to subcontractor to supplier throughout the procurement chain.
Can a rated order be rejected?
Yes, unless otherwise directed by HHS for a rated order of health resources:
- A person shall not accept a rated order for delivery on a specific date if unable to fill the order by that date. However, the person must inform the customer of the earliest date on which delivery can be made and offer to accept the order on the basis of that date. Scheduling conflicts with previously accepted lower rated or unrated orders are not sufficient reason for rejection under this section.
- A person shall not accept a DO-rated order for delivery on a date which would interfere with delivery of any previously accepted DO- or DX-rated orders. However, the person must offer to accept the order based on the earliest delivery date otherwise possible.
- A person shall not accept a DX-rated order for delivery on a date which would interfere with delivery of any previously accepted DX-rated orders, but must offer to accept the order based on the earliest delivery date otherwise possible.
- If a person is unable to fill all of the rated orders of equal priority status received on the same day, the person must accept, based upon the earliest delivery dates, only those orders which can be filled, and reject the other orders. For example, a person must accept order A requiring delivery on December 15 before accepting order B requiring delivery on December 31. However, the person must offer to accept the rejected orders based on the earliest delivery dates otherwise possible.
Additionally, a priority rated purchase order may be rejected if the following conditions are met:
- If the person placing the order is unwilling or unable to meet regularly established terms of sale or payment;
- If the order is for an item not supplied or for a service not capable of being performed;
- If the order is for an item or service produced, acquired, or provided only for the supplier's own use for which no orders have been filled for two years prior to the date of receipt of the rated order;
- If the person placing the rated order, other than the U.S. Government, makes the item or performs the service being ordered; or
- If acceptance of a rated order or performance against a rated order would violate any other regulation, official action, or order issued under the authority of the Defense Production Act or another relevant statute.
- A company in receipt of a rated order must either accept or reject the rated order in writing or electronically to the customer placing the order within 15 days after receipt of a “DO" rated order and within 10 working days after receipt of a “DX" rated order. If the order is rejected, a company must provide the reasons in writing for the rejection.
Are there limitations on the use of rated orders?
Rated orders may not be used to obtain greater quantity of an item or services than needed and prohibits stockpiling. Ensuring rated purchase orders are placed for the appropriate types and quantities of raw materials and are placed just in time, as required for manufacturing, will thus reduce the impact of priority rated orders on the rest of the health manufacturing industry.
How are problems with, or conflicts between, rated orders handled?
Once a priority rating has been authorized pursuant to the HRPAS, further action by ASPR generally is not needed. However, from time-to-time, problems will occur as government-buying activities, prime contractors, subcontractors, and other suppliers may need assistance in obtaining timely delivery of items or services needed to support approved program requirements. In this event, special priorities assistance is available from the DPA-ERA Office.
What is Special Priorities Assistance (SPA)?
Generally, SPA is provided to expedite deliveries, resolve delivery conflicts, locate suppliers, or to verify information provided by customers and vendors. Any person requiring such assistance should contact the HHS ASPR DPA Mailbox at
aspr.dpa@hhs.gov
HRPAS Program Resources
Rating Authorization Fact Sheet for Contractors, Subcontractors, and Suppliers Supporting HHS
Department of Homeland Security
Information on the Federal Priorities and Allocations System (FPAS)
DPAS Webpage
Department of Commerce Defense Priorities and Allocations System Program (DPAS)
DPAS training course
DPAS regulation published in the E-CFR
Contact Us
For more information about the Defense Production Act (DPA) and the Health Resources Priorities and Allocations System (HRPAS), please contact the HHS ASPR DPA Mailbox at
aspr.dpa@hhs.gov
