Industrial Policy
Security of Supply Arrangements
Last updated: July 2, 2007
The Department of Defense (DoD) has entered into arrangements with several nations to ensure the mutual supply of defense goods and services. These bilateral Security of Supply arrangements allow the DoD to request priority delivery for DoD contracts, subcontracts, or orders from companies in these countries. Similarly, the arrangements allow the signatory nations to request priority delivery for their contracts and orders with U.S. firms. Security of Supply arrangements are conducted under the overarching Declarations of Principles for Enhanced Cooperation in Matters of Defense Equipment and Industry that have been signed with certain nations. Security of Supply arrangements implement the “Meeting National Defense Requirements” section of these documents, which recognizes the potential for a certain degree of mutual interdependence of supplies needed for national security, and calls for the parties to explore solutions for achieving assurance of supply.
Reciprocal industrial priority systems encourage partner nations to acquire defense goods from each other, promote interoperability, and provide assurance of timely delivery during peacetime, emergency, and armed conflict.
The DoD uses the Defense Priorities and Allocations System (DPAS) to provide priority support. Information on DPAS can be found at: http://www.bis.doc.gov/defenseindustrialbaseprograms/OSIES/DPAS/Default.htm
Partner nations have instituted, or are in the process of instituting, government-industry “codes of conduct” whereby firms agree to make every reasonable effort to provide priority support. Participation in these codes of conduct is voluntary.
The bilateral arrangements, country codes of conduct, and the foreign firms participating are included below. Participating firms may offer their participation in a code of conduct as an indication of their reliability in providing defense goods and services to the Department of Defense and its contractors.
(Although the Department of Defense does not have a Security of Supply arrangement with Canada, it is included below because the U.S. Department of Commerce has a Memorandum of Understanding with the Canadian Public Works and Government Services Canada to mutually provide priorities support. DoD program managers, contractors, and subcontractors can request priority assistance for U.S. defense purchases in Canada through the Department of Defense.)
Italy
DoD program managers, contractors, and subcontractors acquiring materials and services from participating firms may request priority delivery for their contract, subcontract, or order when necessary to meet U.S. defense requirements.
In addition, program managers, contractors, and subcontractors may request assistance when acquiring an item from a firm which is located in a participating country but is not itself participating in that country’s code of conduct. In such cases, the DoD will request the foreign Ministry of Defense request the company join its code of conduct, or otherwise provide priority support for the U.S. defense order.
Persons seeking priority assistance should contact the DoD DPAS Program Manager at: Industrial_Policy@osd.mil.