Medical Supply Transparency and Delivery Act

I 116TH CONGRESS 2D SESSION H. R. 6711 To provide for the expedited and transparent procurement and distribution of equipment and supplies needed to combat COVID–19. IN THE HOUSE OF REPRESENTATIVES MAY 5, 2020 Mr. CROW (for himself, Ms. SLOTKIN, Mr. RYAN, Ms. PORTER, Mr. SCHNEI- DER, Ms. SCANLON, Ms. GARCIA of Texas, Mr. ESPAILLAT, Ms. CRAIG, Mr. TONKO, Ms. ROYBAL-ALLARD, Ms. TLAIB, Mr. MALINOWSKI, Mr. NEGUSE, Mr. ROSE of New York, Mr. GALLEGO, Mr. CLAY, Ms. WEXTON, Mr. PAPPAS, Mr. KHANNA, Ms. KUSTER of New Hampshire, Mr. THOMPSON of Mississippi, Ms. SCHRIER, Mr. LEVIN of Michigan, Mr. ROUDA, Mr. KILMER, Mr. RUPPERSBERGER, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. LARSON of Connecticut, Mr. SOTO, Ms. DELAURO, Mr. RASKIN, Mrs. HAYES, Mrs. FLETCHER, Ms. UNDER- WOOD, Mr. LEVIN of California, Ms. DEGETTE, Mr. TRONE, Mr. DEFA- ZIO, Mr. VARGAS, Mrs. LURIA, Mrs. DEMINGS, Ms. KAPTUR, Mr. DAVID SCOTT of Georgia, Mr. CISNEROS, Ms. VELA´ZQUEZ, Mr. MOULTON, Ms. JACKSON LEE, and Ms. FUDGE) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Transportation and Infrastructure, Armed Services, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for the expedited and transparent procurement and distribution of equipment and supplies needed to combat COVID–19. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6711 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Medical Supply Trans- 2 parency and Delivery Act’’. 3 SEC. 2. EMERGENCY PRODUCTION OF MEDICAL EQUIP- 4 MENT AND SUPPLIES TO ADDRESS COVID–19. 5 (a) EXECUTIVE OFFICER FOR CRITICAL MEDICAL 6 EQUIPMENT AND SUPPLIES.— 7 (1) APPOINTMENT.—Not later than 3 days 8 after the date of the enactment of this Act, the Sec- 9 retary of Defense shall appoint, detail, or tempo- 10 rarily assign a civilian to serve as the Executive Of- 11 ficer for Critical Medical Equipment and Supplies 12 (in this section referred to as the ‘‘Executive Offi- 13 cer’’), who shall— 14 (A) direct, through the National Response 15 Coordination Center of the Federal Emergency 16 Management Agency, the national production 17 and distribution of critical medical equipment 18 and supplies, including personal protective 19 equipment, in support of the response of the 20 Federal Emergency Management Agency to the 21 Coronavirus Disease 2019 (commonly known as 22 ‘‘COVID–19’’); and 23 (B) report directly to the Administrator of 24 the Federal Emergency Management Agency 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6711 IH for the duration of the appointment, detail, or 1 temporary assignment. 2 (2) QUALIFICATIONS.—The Secretary of De- 3 fense, in consultation with the Administrator of the 4 Federal Emergency Management Agency, shall se- 5 lect the individual to serve as the Executive Officer 6 from among individuals with sufficient experience in 7 defense and industrial acquisition and production 8 matters, including such matters as described in sec- 9 tion 668(a)(1)(B) of title 10, United States Code. 10 (3) AUTHORITIES.—The Executive Officer, act- 11 ing through the National Response Coordination 12 Center and in direct consultation with the Secretary 13 of Homeland Security, the Secretary of Defense, the 14 Secretary of Health and Human Services, and the 15 Secretary of Commerce, shall use all available Fed- 16 eral acquisition authorities, including the authorities 17 described under sections 101(b), 102, 301, 302, 303, 18 704, 705, 706, 708(c) and (d), and 710 of the De- 19 fense Production Act of 1950 (50 U.S.C. 4511(b), 20 4512, 4531, 4532, 4533, 4554, 4555, 4556, 4558 21 (c) and (d), and 4560), to oversee all acquisition and 22 logistics functions related to the response by the Na- 23 tional Response Coordination Center to COVID–19. 24 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6711 IH (4) RESPONSIBILITIES.—The Executive Officer, 1 as the officer overseeing the acquisition and logistics 2 functions of the response by the National Response 3 Coordination Center to COVID–19, shall— 4 (A) receive all requests for equipment and 5 supplies, including personal protective equip- 6 ment, from States and Indian Tribes; 7 (B) make recommendations to the Presi- 8 dent on utilizing the full authorities available 9 under the Defense Production Act of 1950 (50 10 U.S.C. 4501 et seq.) to increase production ca- 11 pacity as identified under subparagraphs (C) 12 and (H) of subsection (c)(1); 13 (C) ensure that allocation of critical re- 14 sources is carried out in a manner consistent 15 with the needs identified in the reports required 16 by subsection (c); 17 (D) direct, in consultation with the Federal 18 Emergency Management Agency, the Depart- 19 ment of Health and Human Services, the De- 20 fense Logistics Agency, and other Federal agen- 21 cies as appropriate, all distribution of critical 22 equipment and supplies to the States and In- 23 dian Tribes, through existing commercial 24 distributers where practical; 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6711 IH (E) communicate with State and local gov- 1 ernments and Indian Tribes with respect to 2 availability and delivery schedule of equipment 3 and supplies; 4 (F) contribute to the COVID–19 strategic 5 testing plan required by title I of division B of 6 the Paycheck Protection Program and Health 7 Care Enhancement Act (Public Law 116–139) 8 to ensure the Secretary of Health and Human 9 Services includes in that plan a comprehensive 10 plan to scale production and optimize distribu- 11 tion of COVID–19 tests, including molecular, 12 antigen, and serological tests, in the United 13 States; and 14 (G) establish, in direct consultation with 15 the Secretary of Health and Human Services, 16 and the heads of any other appropriate Federal 17 agencies, a comprehensive plan to address nec- 18 essary supply chain issues in order to rapidly 19 scale up production of a SARS–CoV–2 vaccine. 20 (5) TRANSPARENCY.—The Executive Officer 21 shall make available, including on a publicly avail- 22 able website, information, updated not less fre- 23 quently than every 3 days, including— 24 (A) the reports required by subsection (c); 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6711 IH (B) requests for equipment and supplies 1 from State governments and Indian Tribes; 2 (C) standards used for data collection; 3 (D) modeling and any formulas used to de- 4 termine allocation of equipment and supplies, 5 and any related chain of command making final 6 decisions on allocations; 7 (E) the amount and destination of equip- 8 ment and supplies delivered; 9 (F) an explanation of why any portion of 10 a purchase order placed under subsection (d), 11 whether to replenish the Strategic National 12 Stockpile or otherwise, will not be filled; 13 (G) the percentage amounts of procured 14 products used to replenish the Strategic Na- 15 tional Stockpile, targeted to COVID–19 hot- 16 spots, or going into the commercial market; 17 (H) metrics, formulas, and criteria used to 18 determine hotspots or areas of critical need at 19 the State, county, and Indian Health Service 20 area level; 21 (I) production and procurement bench- 22 marks, where practicable; and 23 (J) results of the outreach and stakeholder 24 reviews required by subsection (c). 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6711 IH (6) ADDITIONAL PERSONNEL.—The Secretary 1 of Defense may detail members of the armed forces 2 on active duty, or additional civilian employees of 3 the Department of Defense, as appropriate, with rel- 4 evant experience in acquisition matters, to support 5 the Executive Officer. 6 (7) TERMINATION.—The office of the Executive 7 Officer shall terminate 30 days after the Executive 8 Officer certifies in writing to Congress that all needs 9 of States and Indian Tribes identified in reports 10 submitted under subsection (c) have been met and 11 all Federal Government stockpiles have been replen- 12 ished. 13 (b) COMMERCIAL SECTOR PARTICIPATION.— 14 (1) IN GENERAL.—The Executive Officer shall 15 collect and compile data from each of the commer- 16 cial distributors that is able to fulfill purchase orders 17 authorized by this Act through the Federal Emer- 18 gency Management Agency, the Defense Logistics 19 Agency, the Department of Health and Human 20 Services, the Department of Veterans Affairs, and 21 any other appropriate Federal agencies. 22 (2) DATA INCLUDED.—The data to be collected 23 and compiled under paragraph (1) includes— 24 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 6711 IH (A) the name and address of each delivery 1 of supplies and equipment under a purchase 2 order authorized by this Act; 3 (B) the number of such supplies and 4 equipment delivered; and 5 (C) the date of each such delivery. 6 (c) REPORTS REQUIRED.— 7 (1) IN GENERAL.—Not later than 7 days after 8 the date of the enactment of this Act, and every 7 9 days thereafter until the termination date described 10 in subsection (a)(7), the Executive Officer, in coordi- 11 nation with the National Response Coordination 12 Center of the Federal Emergency Management 13 Agency, the Defense Logistics Agency, the Depart- 14 ment of Health and Human Services, the Depart- 15 ment of Veterans Affairs, and other Federal agen- 16 cies as appropriate, shall submit to Congress and the 17 President, and publish in a timely manner in the 18 Federal Register a summary of, a report including— 19 (A) an assessment of the needs of the 20 States and Indian Tribes for equipment and 21 supplies necessary to prevent, identify, mitigate, 22 and recover from cases of COVID–19, including 23 personal protective equipment, ventilators, test- 24 ing supplies, construction supplies, and emer- 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 6711 IH gency food sources, for each month during the 1 2-year period beginning on the date of the en- 2 actment of this Act; 3 (B) an assessment of the quantities of 4 equipment and supplies in the Strategic Na- 5 tional Stockpile as of the date of the report and 6 the projected gap between the quantities of 7 equipment and supplies identified as needed in 8 the assessment under subparagraph (A) and the 9 quantities in the Stockpile; 10 (C) an identification of the industry sec- 11 tors and manufacturers most ready to fulfill 12 purchase orders for such equipment and sup- 13 plies, including manufacturers that may be 14 incentivized, through the exercise of authority 15 under section 303(e) of the Defense Production 16 Act of 1950 (50 U.S.C. 4533(e)), to modify, ex- 17 pand, or improve production processes to manu- 18 facture such equipment and supplies; 19 (D) an estimate of the funding and other 20 measures necessary to rapidly expand manufac- 21 turing production capacity for such equipment 22 and supplies, including— 23 (i) any efforts to expand, retool, or re- 24 configure production lines; 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 6711 IH (ii) any efforts to establish new pro- 1 duction lines through the purchase and in- 2 stallation of new equipment; or 3 (iii) the issuance of additional con- 4 tracts, purchase orders, purchase guaran- 5 tees, or other similar measures; 6 (E) an identification of government and 7 privately owned stockpiles of equipment and 8 supplies not included in the Strategic National 9 Stockpile that could be repaired or refurbished; 10 (F) an identification of previously distrib- 11 uted critical supplies that can be redistributed 12 based on current need; 13 (G) an identification of critical areas of 14 need by county and Indian Health Service area 15 in the United States and the metrics and cri- 16 teria for their identification as critical; 17 (H) an inventory of the national produc- 18 tion capacity for equipment and supplies identi- 19 fied as needed in the assessment under sub- 20 paragraph (A); and 21 (I) an identification of the needs of essen- 22 tial employees and healthcare workers based on 23 regular stakeholder reviews. 24 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 6711 IH (2) FORM OF REPORTS.—Each report required 1 by paragraph (1) shall be submitted in unclassified 2 form but may include a classified annex. 3 (d) PURCHASE ORDERS.— 4 (1) IN GENERAL.—Not later than 1 day after 5 receiving a report required under subsection (c), the 6 President, using authorities provided under the De- 7 fense Production Act of 1950 (50 U.S.C. 4501 et 8 seq.), shall— 9 (A) establish a fair and reasonable price 10 for the sale of equipment and supplies identified 11 in the reports required by subsection (c); and 12 (B) issue rated priority purchase orders 13 pursuant to Department of Defense Directive 14 4400.1, part 101, subpart A of title 45, Code 15 of Federal Regulations, or any other applicable 16 acquisition authority, to procure equipment and 17 supplies identified in the reports required by 18 subsection (c). 19 (2) DISPOSITION OF UNUSED EQUIPMENT AND 20 SUPPLIES.—Any equipment or supplies produced 21 pursuant to paragraph (1) using amounts from the 22 Defense Production Act Fund and in excess of needs 23 identified in reports required by subsection (c) shall 24 be deposited in the Strategic National Stockpile. 25 VerDate Sep 11 2014 23:47 May 14, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H6711.IH H6711 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 6711 IH (3) AUTHORIZATION OF CONGRESS TO [Text truncated for display. 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