Authority to award follow-on production contracts or transactions, procure supplies for experimental or test purposes, and acquire innovative commercial products and commercial services

Section 319L of the Public Health Service Act (42 U.S.C. 247d–7e) is amended—(1)in subsection (a)(6)(B), by amending clause (ii) to read as follows:

(ii)design and development of—(I)tests and prototypes, including obtaining sufficient quantities for evaluation of such tests and prototypes; and(II)models, including animal models, for such testing and prototypes;

; and

(2)in subsection (c)(5)—(A)in subparagraph (A)—(i)by redesignating clause (iv) as clause (v); and(ii)by inserting after clause (iii) the following new clause:

(iv)

Follow-on production contracts or transactions

(I)

In general

A transaction entered into under this subparagraph for the design or development of a prototype may provide for the award of a follow-on production contract or transaction to the participants in the transaction.(II)

Prototype subprojects

A transaction entered into under this subparagraph includes all prototype subprojects awarded under the transaction to carry out authorities under this section.(III)

Exception to competitive procedures

Notwithstanding clause (ii), a follow-on production contract or transaction provided for in a transaction under this clause may be awarded to the participants in the transaction without the use of competitive procedures, even if explicit notification was not listed within the request for proposal for the transaction, if competitive procedures were used for the selection of parties for participation in the initial transaction.

; and

(B)by adding at the end the following new subparagraphs:

(I)

Procurement for experimental or test purposes

(i)

In general

The Secretary may purchase medical countermeasures, products, and supplies, chemical materials and reagents, manufacturing supplies, protective equipment, and such other supplies, including parts and accessories, and designs thereof, as the Secretary determines necessary for experimental or test purposes in the development of supplies that are necessary for national public health and health security.(ii)

Procedures

Notwithstanding subparagraph (A)(ii), the Secretary may make purchases under this subparagraph by contract, or by entering into a transaction other than a contract, using noncompetitive procedures.(J)

Acquisition of innovative commercial products and commercial services using general solicitation competitive procedures

(i)

In general

Notwithstanding subparagraph (A)(ii), the Secretary may acquire innovative commercial products and commercial services through a competitive selection of proposals resulting from a general solicitation and the peer review of such proposals.(ii)

Treatment as competitive procedures

Use of general solicitation competitive procedures under clause (i) shall be considered to be use of competitive procedures for purposes of chapter 33 of title 41, United States Code.(iii)

Limitations

(I)

Transactions in excess of $100,000,000

The Secretary may not enter into a contract or agreement in excess of $100,000,000 using the authority under clause (i), unless the Secretary makes a written determination of the efficacy of the effort to meet mission needs of the Department of Health and Human Services.(II)

Fixed-price

Contracts or agreements entered into using the authority under clause (i) shall be fixed-price, including fixed-price incentive contracts.(iv)

Congressional notification required

(I)

Submission

Not later than 45 days after the award of a contract for an amount exceeding $100,000,000 using the authority under clause (i), the Secretary shall provide notification of such award to the Committee on Energy and Commerce and the Committee on Appropriations of the House of Representatives, and the Committee on Health, Education, Labor, and Pensions and the Committee on Appropriations of the Senate.(II)

Contents

Notification of an award under subclause (I) shall include the following:(aa)Description of the innovative commercial product or commercial service acquired.(bb)Description of the requirement, capability gap, or potential technological advancement with respect to which the innovative commercial product or commercial service acquired provides a solution or a potential new capability.(cc)Amount of the contract awarded.(dd)Identification of the contractor awarded the contract.(v)

Innovative defined

In this subparagraph, the term innovative, with respect to a commercial product or commercial service, means—(I)any technology, process, or method, including research and development, that is new as of the date of submission of a proposal; or(II)with respect to a technology, process, or method, including research and development, existing as of the date of submission of a proposal, any application of such technology, process, or method that is new to the Federal Government as of such date.