Department of Defense medical supply chain risk identification and transparency enhancement

(a) Assessments and list Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall— (1) conduct supply chain risk assessments across the Defense Health Agency and relevant acquisition offices of the Department of Defense to determine the origin of covered items; and (2) develop and maintain a prioritized list, which may be classified, of high-risk critical medical products that rely on covered items originating from the People’s Republic of China. (b) Elements The assessments under subsection (a)(1) shall include— (1) identification and prioritization of critical medical products for review; (2) evaluation of dependencies on inputs originating from China; (3) analysis of vulnerability to supply chain disruption during war, national emergency, or public health crisis; (4) assessment of domestic manufacturing capacity, including gaps, single points of failure, and economic threats to domestic producers; (5) identification of the location of design, manufacturing, and packaging facilities; and (6) evaluation of dependencies in deployable medical units, military medical treatment facilities, and medical logistics systems of the Department. (c) Report (1) Requirement Not later than180 days after the date of the initial assessment conducted under paragraph (1) of subsection (a), and annually thereafter, the Secretary shall submit to the congressional defense committees a report detailing— (A) findings from the high-risk medical products list developed under paragraph (2) of such subsection; (B) strategies to strengthen stockpiles and readiness contracts; and (C) recommendations to reduce reliance on Chinese supply chains, including procurement policy revisions, alternative sourcing, expansion of domestic manufacturing, and incentives for United States-based production of covered items. (2) Form The report under paragraph (1) may be submitted in classified form. (d) Definitions In this section: (1) The term covered items means pharmaceuticals, active pharmaceutical ingredients, personal protective equipment, medical devices, and medical diagnostic equipment, used by the Department of Defense. (2) The term critical medical product means any covered item identified by the Secretary of Defense as essential to national defense, force health protection, or continuity of operations. (3) The term domestic manufacturing means the conduct in the United States of research and development, engineering, or production activities necessary for manufacturing a critical medical product. (4) The term foreign country of concern has the meaning given the term covered nations in section 4872(f)(2) of title 10, United States Code, and any additional countries so designated by the Department of State.