S.Amdt. 1628

SA 1628. Mr. DURBIN (for himself and Mr. Cassidy) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Schumer to the bill S. 1260, to establish a new Directorate for
Technology and Innovation in the National Science Foundation, to
establish a regional technology hub program, to require a strategy and
report on economic security, science, research, innovation,
manufacturing, and job creation, to establish a critical supply chain
resiliency program, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place in title I of division F, insert
the following:

SEC. 61__. DOMESTIC PPE PROCUREMENT PILOT PROGRAM.

(a) In General.--Section 319F-2(a) of the Public Health
Service Act (42 U.S.C. 247d-6b(a)), as amended by section
4153(f)(3), is further amended by adding at the end the
following:
``(7) Domestic procurement pilot program.--
``(A) In general.--
``(i) Requirement to purchase domestic end products.--For
the period of fiscal years 2022 through 2026, subject to
clause (ii), the Secretary shall ensure that not less than 40
percent of amounts made available under this section for
purposes of procuring covered testing equipment and personal
protective equipment for the stockpile under paragraph (1)
are allocated to procurement of such equipment that is a
domestic end product (as defined in part 25.003 of the
Federal Acquisition Regulations maintained under section
1303(a)(1) of title 41, United States Code (or any successor
regulations)) manufactured by an entity or entities that
enter into a contract with the Secretary to sell such
equipment to the Secretary for such purpose.
``(ii) Clarifications.--In carrying out the requirement
under clause (i), the following shall apply:

``(I) The Secretary is encouraged to exceed, to the
greatest extent practicable, the procurement threshold of 40
percent domestic end products for such covered testing
equipment and personal protective equipment described in
clause (i), provided that such supply exists and the cost of
procuring equipment that is a domestic end product is not
unreasonably high compared to the cost of procuring equipment
that is not a domestic end product.
``(II) In the event that there is insufficient domestic end
product available for procurement to meet the needs for
certain covered testing equipment and personal protective
equipment for the stockpile under paragraph (1) while
satisfying the requirement of clause (i), or that the cost of
procuring equipment that is a domestic end product in
quantities required under clause (i) would be unreasonably
high compared to other equipment that is not a domestic end
product, clause (i) shall be applied with respect to the
applicable equipment only to the extent that such equipment
that is a domestic end product is available and to the extent
that the cost is not unreasonable, as applicable. In the case
that the requirement under clause (i) is applied only to such
an extent as described in the preceding sentence, in
procuring such portion of such equipment that are not
domestic end products, as applicable, the Secretary shall
prioritize procurement of equipment that is manufactured in a
country in North, Central, or South America with which the
United States has a free trade agreement in effect.

``(B) Sale or transfer of ppe.--
``(i) In general.--With respect to any covered testing
equipment and personal protective equipment in the stockpile
under paragraph (1), the Secretary--

``(I) shall assess the stock of such equipment on a regular
basis, and not less frequently than--

``(aa) twice per year, other than during periods described
in item (bb); or
``(bb) monthly, during any period in which the Secretary
determines it likely that such equipment will be deployed,
such as during a public health emergency;

``(II) shall communicate to manufacturers and suppliers of
such equipment to the stockpile under paragraph (1) if an
assessment under subclause (I) indicates that there will be
an increased need for such equipment;
``(III) may, at appropriate intervals and with respect to
any such equipment in such stockpile--

``(aa) transfer such equipment, in accordance with the
needs of agencies, divisions, departments, or States, to--
``(AA) other agencies or operating divisions within the
Department of Health and Human Services;
``(BB) the Department of Defense, the Department of
Homeland Security, the Department of Veterans Affairs, or any
other Federal agency or department; or
``(CC) State governments, including State public health,
emergency management, and human services agencies; or
``(bb) sell such equipment to health care entities at a
competitive price, as determined by the Secretary, taking
into account the current market pricing for the applicable
equipment and the operational budget for the stockpile;

``(IV) shall, prior to any sale of such equipment in the
commercial market, including a sale described in subclause
(III)(bb), provide adequate notification to relevant
manufacturers, distributors, or other appropriate entities in
order to mitigate any commercial disruption from such sale;
``(V) may enter into a contract or cooperative agreement
with an entity that has expertise in supply chain logistics
and management to carry out the activities described in this
subparagraph.

``(ii) Group purchasing organizations and medical product
distributors.--In making sales under clause (i)(II)(bb), the
Secretary may transact with group purchasing organizations
and medical product distributors to facilitate timeliness,
logistical assistance, and appropriate pricing, and to
determine appropriate amounts of covered testing equipment
and personal protective equipment for applicable health care
entities.
``(iii) Compensation to hhs.--

``(I) Transfers from other agencies.--A Federal agency or
State government receiving equipment as described in clause
(i)(III)(aa) shall transfer to the Secretary, for purposes of
procuring covered testing equipment and personal protective
equipment for the stockpile under paragraph (1), such amounts
as the Secretary and head of the applicable agency or State
government determine to be fair compensation for such

[[Page S3147]]

equipment, and such amounts shall be available, without
further appropriation, until expended, for purposes of
procuring covered testing equipment and personal protective
equipment for the stockpile under paragraph (1).
``(II) Sales of ppe.--In the case of a sale described in
clause (i)(III)(bbb), the proceeds from the sale shall be
available, without further appropriation, until expended, for
purposes of procuring covered testing equipment and personal
protective equipment for the stockpile under paragraph (1).

``(C) Vendor-managed inventory.--For purposes of meeting
the goals under subparagraph (A), and to promote efficient
and predictable operations of the stockpile while mitigating
the risk of product expiration or shortages, the Secretary
may enter into arrangements, through a competitive bidding
process, with one or more manufacturers of domestic end
products to establish and utilize revolving stockpiles of
covered testing equipment and personal protective equipment
managed and operated by such manufacturer. Under such an
arrangement--
``(i) the manufacturer (or a subcontractor or agent of the
manufacturer)--

``(I) shall--

``(aa) produce or procure covered testing equipment or
personal protective equipment for the stockpile under
paragraph (1);
``(bb) maintain constant supply, possession, and re-
stocking capacity of such equipment in such quantities as the
Secretary requires for purposes of the stockpile under
paragraph (1); and
``(cc) fulfill or support the deployment, distribution, or
dispensing functions of the stockpile at the State and local
levels, consistent with paragraph (3); and

``(II) may sell or transfer such equipment for the purposes
of the manufacturer's existing inventory and commercial
contracts; and

``(ii) the Secretary shall pay a management fee, which may
include compensation to the manufacturer for the covered
testing equipment or personal protective equipment, as
appropriate.
``(D) Evaluation and report.--
``(i) In general.--The Secretary shall--

``(I) conduct an evaluation of the program under this
paragraph;
``(II) not later than 2 years after the date of enactment
of this paragraph, submit an interim report to Congress on
such program; and
``(III) not later than 5 years after the date of enactment
of this paragraph, complete such evaluation and submit to
Congress a final report on the program.

``(ii) Considerations.--The evaluation and reports under
clause (i) shall consider how the program has impacted the
continuity of stockpiling and readiness for the stockpile
under paragraph (1), implications of the program on the
domestic supply chain, cost effectiveness of the program, and
access to covered testing equipment and personal protective
equipment for the Federal agencies and health care entities
pursuant to subparagraph (B)(i)(II).
``(E) Covered testing equipment and personal protective
equipment.--For purposes of this paragraph, the term `covered
testing equipment and personal protective equipment' means
test supplies (which may include test kits, reagents, and
swabs), respirators, masks, gloves, eye and face protection,
gowns, and any other appropriate ancillary medical equipment
or supplies related to testing or to the protection of
oneself or others that meet the Secretary's requirements for
inclusion in the stockpile under paragraph (1).''.
______