S.Amdt. 1803

SA 1803. 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:

Strike paragraph (3) of section 4153(f) and insert the
following:
(3) Strategic national stockpile.--Section 319F-2(a) of the
Public Health Service Act (42 U.S.C. 247d-6b(a)) is amended
by adding at the end the following:
``(6) Transfer of items.--
``(A) In general.--During the 6-year period that begins on
the date of enactment of this paragraph, the Secretary, in
coordination with the Secretary of Homeland Security, may, at
appropriate intervals, sell or transfer drugs, vaccines and
other biological products, medical devices, or other supplies
maintained in the stockpile under paragraph (1) to a Federal
agency or private, nonprofit, State, local, tribal, or
territorial entity.
``(B) Requirements.--In carrying out subparagraph (A), the
Secretary--
``(i) shall, on a regular basis, assess the stock of such
equipment and communicate to manufacturers and suppliers of
such equipment to the stockpile under paragraph (1) if such
assessment indicates that there will be an increased need for
such equipment;
``(ii) shall, for any sale or transfer or any such
equipment, do so at a competitive and fair price, as
determined by the Secretary, taking into account the current
market pricing for the applicable equipment and the
operational budget for the stockpile;
``(iii) shall, prior to any sale of such equipment in the
commercial market, including a sale to a private or nonprofit
entity described in subparagraph (A), provide adequate
notification to relevant manufacturers, distributors, or
other appropriate entities in order to mitigate any
commercial disruption from such sale;
``(iv) may enter into a contract or cooperative agreement
with an entity that has expertise in supply chain logistics
and management, including a group purchasing organization or
medical product distributor, to carry out activities
described in this paragraph, which may include facilitating
timeliness, logistical assistance, appropriate pricing, and
to determine appropriate amounts of such equipment; and
``(v) may, for purposes of meeting the goals described in
subparagraph (A), and to promote efficient and predictable
operations of the stockpile while mitigating the risk of
product expiration or shortages, enter into arrangements,
through a competitive bidding process, with one or more
manufacturers or such products to establish and utilize
revolving stockpiles of such products managed and operated by
such manufacturer.
``(C) Revolving stockpile arrangements.--Under an
arrangement described in subparagraph (B)(v)--
``(i) the manufacturer (or a subcontractor or agent of the
manufacturer)--

``(I) shall--

``(aa) produce or procure such 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 such equipment,
as appropriate.
``(D) Compensation to hhs.--In the case of a sale or
transfer of such equipment to an entity described in
subparagraph (A), the proceeds from the sale shall be
transferred to the Secretary and be made available, without
further appropriation, until expended, for purposes of
procuring such equipment for the stockpile under paragraph
(1).''.

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