President Biden signs waiver focusing on defense industrial base, supply chain resilience

The Defense Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Office is touting President Joe Biden’s recent signing of a waiver focusing on defense industrial base and supply chain resilience.

The action addresses some statutory requirements authorizing the Defense Production Act (DPA) to allow the Department of Defense (DoD) to include defense organic industrial base supply chains critical to the DoD, as well as critical supply chains for electronics, kinetic capabilities, castings and forgings, minerals and materials and power and energy storage.

“This authorization allows the Department of Defense to act with urgency and efficiency in shoring up America’s supply chains and strengthening our national security,” MCEIP Office Director Anthony Di Stasio said. “This flexibility will allow the Department to act strategically to protect the United States’ military and commercial interests while maintaining our superiority over competitor nations.”

Per the DoD, the waiver permits the agency to leverage DPA Title III incentives against critical vulnerabilities while removing the statutory spending limitation for aggregate action against a single shortfall exceeding $50 million while enabling the DoD to make more substantial, longer-term investments.

According to the MCEIP, the office seeks to prioritize and address supply chain and industrial challenges identified by the DoD and other stakeholders, determining appropriate authorities to address shortfalls and support domestic industry with direct engagements and investments.