DPA Rated Order

A DPA Rated Order is a government contract, subcontract, or purchase order that carries a Defense Priorities and Allocations System (DPAS) priority rating, either "DO" (Department Order) or "DX" (the highest national defense priority), that legally obligates the recipient to accept the order, prioritize its performance ahead of lower-rated or unrated orders, and deliver on the government's requested schedule.

What is a DPA Rated Order?

The DPAS rating on a government contract is identified by a "DO-" or "DX-" prefix followed by a program identification code (e.g., "DO-C9" for emergency preparedness programs, "DO-A1" for military aircraft). This rating appears on the face of the contract or purchase order, and the contractor receiving it must acknowledge this rating.

Under DPAS regulations (15 CFR Part 700), a contractor receiving a rated order must: accept the order (unless a legitimate legal excuse exists); schedule and prioritize the rated order over lower-priority or unrated commercial work; fill the rated order before other orders if capacity is limited; and flow down the priority rating to subcontractors and suppliers whose components or materials are needed to fulfill the rated order. The flow-down obligation is critically important, a rated order generates a cascade of rated suborders through the supply chain.

The government uses rated orders when defense production might otherwise be constrained by commercial demand. During supply chain disruptions, semiconductor shortages, COVID-19 PPE shortfalls, material scarcity, rated orders give the government legal authority to commandeer productive capacity without negotiating with each supplier individually.

Contractors who receive rated orders but cannot perform due to genuine capacity constraints must notify the ordering office promptly with a specific explanation of the constraint and a date by which they expect to be able to fill the order. DPAS regulations also establish procedures for rating conflicts (when multiple rated orders compete for the same scarce capacity) and for seeking exemptions in extreme circumstances.

Why DPA Rated Orders matter for government contractors

Rated orders create legal compliance obligations that override commercial contract priorities. Contractors, particularly in defense supply chains, must understand DPAS obligations to avoid inadvertent violations and to manage their commercial customers' expectations when government rated orders displace commercial orders.

Example

A specialty alloy manufacturer holds commercial contracts with automotive and aerospace customers. It receives a DO-C2 rated order from the Army Materiel Command for titanium plate needed for an armored vehicle program. The manufacturer must accept the rated order, reschedule the titanium production to prioritize the Army order above its commercial customers' orders, and notify commercial customers of the delay. The commercial customers, who are not on rated orders, have no legal recourse to compel delivery ahead of the government's rated order.

Frequently Asked Questions

What is the DPAS rating code system?

DPAS ratings use a two-letter code system: "DO-" indicates Department Order priority (standard defense priority); "DX-" indicates the highest national defense priority designated by the President. The letter and number suffix identifies the program: A1=aircraft; C2=water transportation; K5=government construction; etc. The full list of program identification codes is in the DPAS regulations at 15 CFR Part 700.

Do DPAS ratings apply only to manufacturing contracts?

No. Rated orders apply to contracts for products, services, and construction alike. Service contracts can carry DPAS ratings requiring priority performance of the service; construction contracts can carry ratings requiring priority scheduling. However, rated orders are most commonly associated with manufacturing and supply contracts.

Can a contractor pass a DPAS rating down to a sub-tier supplier?

Yes, and it is legally required. When a contractor receives a rated order that requires components or materials from a supplier, the contractor must issue rated suborders to those suppliers using the same program identification as the prime rated order. The cascade of rated suborders through the supply chain is how the government ensures that critical materials reach the final assembler on schedule.

What penalties apply to DPAS violations?

Civil penalties under the DPA can reach $10,000 per violation, with each day of continued violation constituting a separate offense. Criminal penalties, for willful violations, can include fines and imprisonment. The Department of Commerce's BIS enforces DPAS compliance and investigates complaints from government customers or contractors whose rated orders were not properly prioritized.