The Defense Production Act Title III program is one of three active authorities in the Defense Production Act, which was first signed into law in 1950 and was last renewed in 2018. The Title III program provides the President broad authority to ensure the timely availability of essential domestic industrial resources to support national defense and homeland security requirements through the use of highly tailored economic incentives. Specifically, the program is designed to create, maintain, protect, expand, or restore domestic industrial base capabilities.
The Defense Production Act Title III Office reports to the Deputy Assistant Secretary of Defense for Industrial Policy within the Office of the Under Secretary of Defense for Acquisition and Sustainment. The Defense Production Act Title III Office provides direction, guidance, and oversight to the Defense Production Act Title III program within the Department of Defense. The program is executed through the careful selection and implementation of projects designed to mitigate critical shortfalls in domestic defense industries.
WHO WORKS IN THE DEFENSE PRODUCTION ACT TITLE III OFFICE?
In order to successfully execute its mission of providing direction, guidance, and oversight of the Defense Production Act Title III program, the office is primarily staffed by portfolio managers and financial analysts.
Portfolio Managers typically have deep experience in program management and defense acquisitions. They play an important role in selecting projects, designing approved projects, and providing oversight of projects being executed.
Financial Analysts typically hail from industry and have deep experience in banking and financial analysis. They play an important role in reviewing the financial health of companies being considered for projects and monitoring the financial health of projects being executed.
We are the only government organization dedicated to identifying and rectifying critical domestic shortfalls in the defense industrial base. By executing our mission, we reduce our reliance on foreign supply chains and, at the same time, we ensure the integrity of the materials supplied to the Uniformed Services.
We accomplish this by working in partnership with the Uniformed Services and the US companies to identify areas where crucial industrial capacity is lagging or non-existent. Once an area of need is identified, we find, vet, and partner with selected companies to fix the problem using grants, purchase commitments, loans, or loan guarantees.
Our primary customer is the American Warfighter and, through them, the American People.
According to law (Title 50, Chapter 55, Section 4533), Defense Production Act Title III has three broad focus areas:
SUSTAIN CRITICAL PRODUCTION
“...to create, maintain, protect, expand, or restore industrial base capabilities essential for national defense.”
Example: A project created to sustain a heavy forging capability ensured the Navy had access to a domestic supply source for propulsion shafts and nuclear reactor containment vessels. These types of projects have accounted for 54% of the projects overseen by the Defense Production Act Title III Office.
COMMERCIALIZE R&D INVESTMENTS
“...from Government sponsored research and development to commercial applications.”
Example: A project created to support additive manufacturing for liquid rocket engines reduced the cost of critical components by employing this breakthrough technology. These types of projects have accounted for 31% of the projects overseen by the Defense Production Act III Office.
SCALE EMERGING TECHNOLOGIES
“...for the increased use of emerging technologies in security program applications and the rapid transition of emerging technologies.”
Example: A project created to expand production of inverted metamorphic solar cells which can serve as replacement for traditional germanium solar cells in photovoltaic batteries. These types of projects have accounted for 15% of the projects overseen by the Defense Production Act Title III Office.