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Defense Production Act: Order Directing Continued Operation of Meat and Poultry Processing Facilities for the National Defense

By David F. Dowd, Marcia E. Goodman, Kim A. Leffert & Marcia Madsen on April 29, 2020
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By Executive Order (“EO”) dated April 28, 2020, President Trump invoked the authority of the Defense Production Act (“DPA”) to direct that meat and poultry processing facilities continue operations notwithstanding the COVID-19 pandemic. As explained in our previous Legal Updates,1 the DPA gives the President “an array of authorities to shape national defense preparedness programs and to take steps to maintain and enhance the domestic industrial base.” 50 U.S.C. § 4502(a)(4).

The Executive Order

The EO makes the determination required by DPA section 101(b) (50 U.S.C. § 4511 (b)) to activate the President’s powers under the statute to intervene in the commercial meat and poultry market. The EO makes the policy finding that it is important to national defense that processors of beef, pork, and poultry carry on operations and fulfillment of orders to ensure a continued supply of protein for the American people. The EO notes that recent outbreaks of COVID-19 have led to reduction in production capacity at such facilities. It also notes that some state actions have led to the complete closure of large processing facilities. According to the EO, those actions may differ from, or be inconsistent with, recent joint guidance from the Centers for Disease Control (“CDC”) and the Occupational Safety and Health Administration (“OSHA”) regarding operation of meat and poultry facilities.

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Photo of David F. Dowd David F. Dowd

David Dowd is an experienced litigator whose practice has a strong emphasis in government contracting issues and controversies. He advises such clients as those involved in health care, information technology, large military systems, engineering services, and other industries regarding federal procurements and related…

David Dowd is an experienced litigator whose practice has a strong emphasis in government contracting issues and controversies. He advises such clients as those involved in health care, information technology, large military systems, engineering services, and other industries regarding federal procurements and related issues. His counsel in this area includes commercial items, conflicts of interest, cost allowability issues, defective pricing, contract and subcontract negotiations, contract financing, assignments and novations, leasing, prime/sub disputes, preparation of claims, and procurement fraud.

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Photo of Marcia Madsen Marcia Madsen

Marcia focuses on Government Contracts and Litigation, advising clients on contract formation, teaming and strategic alliances, contract and subcontract negotiations, performance disputes, audits, terminations, cost accounting and allowability, technical data rights and trade secrets, and fraud/false claims investigations • litigates bid protests and…

Marcia focuses on Government Contracts and Litigation, advising clients on contract formation, teaming and strategic alliances, contract and subcontract negotiations, performance disputes, audits, terminations, cost accounting and allowability, technical data rights and trade secrets, and fraud/false claims investigations • litigates bid protests and claims and disputes before the GAO, the Boards of Contract Appeals, the Court of Federal Claims, and various other federal and state courts • has handled numerous ADR and mediation proceedings • areas of concentration include aerospace and defense contracts, systems integration, information systems and telecommunications contracts, health care and bio-technology, homeland security contracts, environmental remediation, and research and development contracts.

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  • Posted in:
    Business and Commercial
  • Blog:
    COVID-19 Response Blog
  • Organization:
    Mayer Brown

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