President Trump issued an Executive Order on March 27 requiring the General Motors Company to accept and perform contracts and fulfill orders for the manufacture and production of ventilators to treat patients afflicted with the COVID-19 virus. This action represents a departure from the most common use of the Defense Production Act (DPA), which involves government contractors that are well versed in the strict deadlines and other requirements imposed under these types of contracts and bid for these contracts on that basis. This action expands the normal application of the DPA to US businesses operating in sectors not normally considered subject to DPA authority.
On this webcast, lawyers and professionals from Shearman’s CFIUS and national security practice provided guidance on the potential legal obligations and key business implications arising from an expanded use of the DPA:
Special thanks to Lisa Raisner, Head of Government Relations, for her participation in this webinar.