[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3146-S3147]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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).''.
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