Sec. 860. RISK MANAGEMENT FOR DEPARTMENT OF DEFENSE PHARMACEUTICAL SUPPLY CHAINS

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## SEC. 860 RISK MANAGEMENT FOR DEPARTMENT OF DEFENSE PHARMACEUTICAL SUPPLY CHAINS ###

(a)Risk Management for All Department of Defense Pharmaceutical Supply Chains Not later than one year after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition and Sustainment shall— ####

(1)develop and issue implementing guidance for risk management for Department of Defense supply chains for pharmaceutical materiel for the Department; ####

(2)identify, in coordination with the Secretary of Health and Human Services, supply chain information gaps regarding the Department’s reliance on foreign suppliers of drugs, including active pharmaceutical ingredients and final drug products; and ####

(3)submit to the Committees on Armed Services of the Senate and the House of Representatives a report regarding— #####

(A)existing information streams, if any, that may be used to assess the reliance by the Department of Defense on high-risk foreign suppliers of drugs; #####

(B)vulnerabilities in the drug supply chains of the Department of Defense; and #####

(C)any recommendations to address— ######

(i)information gaps identified under paragraph (2); and ######

(ii)any risks related to such reliance on foreign suppliers. ###

(b)Risk Management for Department of Defense Pharmaceutical Supply Chain The Director of the Defense Health Agency shall— ####

(1)not later than one year after the issuance of the guidance required under subsection (a)(1), develop and publish implementing guidance for risk management for the Department of Defense supply chain for pharmaceuticals; and ####

(2)establish a working group— #####

(A)to assess risks to the Department’s pharmaceutical supply chain; #####

(B)to identify the pharmaceuticals most critical to beneficiary care at military treatment facilities; and #####

(C)to establish policies for allocating scarce pharmaceutical resources of the Department of Defense in case of a supply disruption.