‘‘(A) the procurement is as described by 
paragraph (1); and 
‘‘(B) the property or services needed by 
the Secretary are available from only one re-
sponsible source or only from a limited number 
of responsible sources, and no other type of 
property or services will satisfy the Secretary’s 
needs. 
‘‘(3)
INCREASED
MICROPURCHASE
THRESH-
OLD.—
‘‘(A) IN
GENERAL.—For a procurement 
described by paragraph (1), the amount speci-
fied in subsections (c), (d), and (f) of section 32 
of the Office of Federal Procurement Policy Act 
(41 U.S.C. 428) shall be deemed to be $15,000 
in the administration of that section with re-
spect to such procurement. 
‘‘(B) INTERNAL CONTROLS TO BE INSTI-
TUTED.—The Secretary shall institute appro-
priate internal controls for purchases that are 
under this paragraph and that are greater than 
$2,500. 
‘‘(C) EXCEPTION
TO
PREFERENCE
FOR 
PURCHASE CARD MECHANISM.—No provision of 
law establishing a preference for using a Gov-
ernment purchase card method for purchases 
shall apply to purchases that are under this 
paragraph and that are greater than $2,500. 
‘‘(c) AUTHORITY TO EXPEDITE PEER REVIEW.—
‘‘(1) IN GENERAL.—The Secretary may, as the 
Secretary determines necessary to respond to press-
ing qualified countermeasure research and develop-
ment needs under this section, employ such expe-
dited peer review procedures (including consultation 
with appropriate scientific experts) as the Secretary, 
in consultation with the Director of NIH, deems ap-
propriate to obtain assessment of scientific and tech-
nical merit and likely contribution to the field of 
qualified countermeasure research, in place of the 
peer review and advisory council review procedures 
that would be required under sections 301(a)(3), 
405(b)(1)(B), 405(b)(2), 406(a)(3)(A), 492, and 
494, as applicable to a grant, contract, or coopera-
tive agreement—
‘‘(A) that is for performing, administering, 
or supporting qualified countermeasure research 
and development activities; and 
‘‘(B) the amount of which is not greater 
than $1,500,000.
‘‘(2) SUBSEQUENT
PHASES
OF
RESEARCH.—
The Secretary’s determination of whether to employ 
expedited peer review with respect to subsequent 
phases of a research grant or cooperative agreement 
under this section shall be determined without re-
gard to the peer review procedures used for any 
prior peer review of that same grant or cooperative 
agreement. 
‘‘(d) AUTHORITY
FOR PERSONAL SERVICES CON-
TRACTS.—
‘‘(1) IN GENERAL.—For the purpose of per-
forming, administering, and supporting qualified 
countermeasure research and development activities, 
the Secretary may, as the Secretary determines nec-
essary to respond to pressing qualified counter-
measure research and development needs under this 
section, obtain by contract (in accordance with sec-
tion 3109 of title 5, United States Code, but without 
regard to the limitations in such section on the pe-
riod of service and on pay) the personal services of 
experts or consultants who have scientific or other 
professional qualifications, except that in no case 
shall the compensation provided to any such expert 
or consultant exceed the daily equivalent of the an-
nual rate of compensation for the President.
‘‘(2) FEDERAL TORT CLAIMS ACT COVERAGE.—
‘‘(A) IN GENERAL.—A person carrying out 
a contract under paragraph (1), and an officer, 
employee, or governing board member of such 
person, shall be deemed to be an employee of 
the Department of Health and Human Services 
for purposes of claims under sections 1346(b) 
and 2672 of title 28, United States Code, for 
money damages for personal injury, including 
death, resulting from performance of functions 
under such contract. 
‘‘(B)
EXCLUSIVITY
OF
REMEDY.—The 
remedy provided by subparagraph (A) shall be 
exclusive of any other civil action or proceeding 
by reason of the same subject matter against 
the
person,
officer,
employee,
or
governing 
board member. 
‘‘(3)
INTERNAL
CONTROLS
TO
BE
INSTI-
TUTED.—
‘‘(A) IN
GENERAL.—The Secretary shall 
institute appropriate internal controls for con-
tracts under this subsection, including proce-
dures for the Secretary to make a determina-
tion of whether a person, or an officer, em-
ployee, or governing board member of a person,
is deemed to be an employee of the Department 
of Health and Human Services pursuant to 
paragraph (2). 
‘‘(B) DETERMINATION OF EMPLOYEE STA-
TUS
TO
BE
FINAL.—A determination by the 
Secretary under subparagraph (A) that a per-
son, or an officer, employee, or governing board 
member of a person, is or is not deemed to be 
an employee of the Department of Health and 
Human Services shall be final and binding on 
the Secretary and the Attorney General and 
other parties to any civil action or proceeding. 
‘‘(4) NUMBER
OF
PERSONAL
SERVICES
CON-
TRACTS LIMITED.—The number of experts and con-
sultants whose personal services are obtained under 
paragraph (1) shall not exceed 30 at any time. 
‘‘(e) STREAMLINED PERSONNEL AUTHORITY.—
‘‘(1) IN GENERAL.—In addition to any other 
personnel authorities, the Secretary may, as the Sec-
retary determines necessary to respond to pressing 
qualified countermeasure research and development 
needs under this section, without regard to such pro-
visions of title 5, United States Code, governing ap-
pointments in the competitive service, and without 
regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates, ap-
point professional and technical employees, not to 
exceed 30 such employees at any time, to positions 
in the National Institutes of Health to perform, ad-
minister, or support qualified countermeasure re-
search and development activities in carrying out 
this section. 
‘‘(2)
INTERNAL
CONTROLS
TO
BE
INSTI-
TUTED.—The Secretary shall institute appropriate 
internal controls for appointments under this sub-
section. 
‘‘(f) ACTIONS COMMITTED
TO AGENCY DISCRE-
TION.—Actions by the Secretary under the authority of 
this section are committed to agency discretion.’’. 
(b) TECHNICAL AMENDMENT.—Section 481A of the 
Public Health Service Act (42 U.S.C. 287a–2) is amend-
ed—
(1) in subsection (a)(1), by inserting ‘‘or the 
Director of the National Institute of Allergy and In-
fectious Diseases’’ after ‘‘Director of the Center’’; 
(2) in subsection (c)—
(A) in paragraph (1), by inserting ‘‘or the 
Director of the National Institute of Allergy
and Infectious Diseases’’ after ‘‘Director of the 
Center’’; and 
(B) in paragraph (2), in the matter pre-
ceding subparagraph (A), by striking ‘‘sub-
section (i)’’ and inserting ‘‘subsection (i)(1)’’; 
(3) in subsection (d), by inserting ‘‘or the Di-
rector of the National Institute of Allergy and Infec-
tious Diseases’’ after ‘‘Director of the Center’’; 
(4) in subsection (e)—
(A) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or the Director of 
the National Institute of Allergy and Infec-
tious Diseases’’ after ‘‘Director of the Cen-
ter’’; 
(ii) in subparagraph (A), by inserting 
‘‘(or, in the case of the Institute, 75 per-
cent)’’ after ‘‘50 percent’’; and 
(iii) in subparagraph (B), by inserting 
‘‘(or, in the case of the Institute, 75 per-
cent)’’ after ‘‘40 percent’’; 
(B) in paragraph (2), by inserting ‘‘or the 
Director of the National Institute of Allergy 
and Infectious Diseases’’ after ‘‘Director of the 
Center’’; and
(C) in paragraph (4), by inserting ‘‘of the 
Center or the Director of the National Institute 
of Allergy and Infectious Diseases’’ after ‘‘Di-
rector’’; 
(5) in subsection (f)—
(A) in paragraph (1), by inserting ‘‘in the 
case of an award by the Director of the Cen-
ter,’’ before ‘‘the applicant’’; and 
(B) in paragraph (2), by inserting ‘‘of the 
Center or the Director of the National Institute 
of Allergy and Infectious Diseases’’ after ‘‘Di-
rector’’; and 
(6) in subsection (i)—
(A) by striking ‘‘APPROPRIATIONS.—For 
the purpose of carrying out this section,’’ and 
inserting the following: ‘‘APPROPRIATIONS.—
‘‘(1) CENTER.—For the purpose of carrying out 
this section with respect to the Center,’’; and 
(B) by adding at the end the following: 
‘‘(2) NATIONAL INSTITUTE OF ALLERGY AND 
INFECTIOUS
DISEASES.—For the purpose of car-
rying out this section with respect to the National 
Institute of Allergy and Infectious Diseases, there 
are authorized to be appropriated such sums as may 
be necessary for fiscal year 2003.’’.
SEC. 3. BIOMEDICAL COUNTERMEASURES PROCUREMENT. 
(a) IN GENERAL.—Part B of title III of the Public 
Health Service Act, as amended by section 2 of this Act, 
is amended by inserting after section 319F–1 the fol-
lowing section: 
‘‘SEC. 319F–2. STRATEGIC NATIONAL STOCKPILE. 
‘‘(a) STRATEGIC NATIONAL STOCKPILE.—
‘‘(1) IN GENERAL.—The Secretary of Homeland 
Security (referred to in this section as the ‘Home-
land Security Secretary’), in coordination with the 
Secretary and the Secretary of Veterans Affairs, 
shall maintain a stockpile or stockpiles of drugs, vac-
cines and other biological products, medical devices, 
and other supplies in such numbers, types, and 
amounts as are determined by the Secretary to be 
appropriate and practicable, taking into account 
other available sources, to provide for the emergency 
health security of the United States, including the
emergency health security of children and other vul-
nerable populations, in the event of a bioterrorist at-
tack or other public health emergency. 
‘‘(2) PROCEDURES.—The Secretary, in man-
aging the stockpile under paragraph (1), shall—
‘‘(A) consult with the working group under 
section 319F(a);
‘‘(B) ensure that adequate procedures are 
followed with respect to such stockpile for in-
ventory management and accounting, and for 
the physical security of the stockpile; 
‘‘(C) in consultation with Federal, State, 
and local officials, take into consideration the 
timing and location of special events; 
‘‘(D) review and revise, as appropriate, the 
contents of the stockpile on a regular basis to 
ensure that emerging threats, advanced tech-
nologies, and new countermeasures are ade-
quately considered; 
‘‘(E) devise plans for the effective and 
timely supply-chain management of the stock-
pile, in consultation with appropriate Federal, 
State and local agencies, and the public and 
private health care infrastructure; and 
‘‘(F) ensure the adequate physical security 
of the stockpile. 
‘‘(b) SMALLPOX VACCINE DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall award 
contracts, enter into cooperative agreements, or 
carry out such other activities as may reasonably be 
required in order to ensure that the stockpile under 
subsection (a) includes an amount of vaccine against
smallpox as determined by such Secretary to be suf-
ficient to meet the health security needs of the 
United States. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to limit the private 
distribution, purchase, or sale of vaccines from 
sources other than the stockpile described in sub-
section (a). 
‘‘(c)
ADDITIONAL
AUTHORITY
REGARDING
PRO-
CUREMENT
OF
CERTAIN
BIOMEDICAL
COUNTER-
MEASURES;
AVAILABILITY
OF
SPECIAL
RESERVE 
FUND.—
‘‘(1) IN GENERAL.—
‘‘(A) USE OF FUND.—A security counter-
measure may, in accordance with this sub-
section, be procured with amounts in the special 
reserve fund under paragraph (10). 
‘‘(B) SECURITY
COUNTERMEASURE.—For 
purposes of this subsection, the term ‘security 
countermeasure’
means
a
priority
counter-
measure (as defined in section 319F(h))—
‘‘(i) that affects national security; 
‘‘(ii) that is determined under para-
graph (2)(B)(ii) to be a necessary counter-
measure; and
‘‘(iii)(I) that is approved or cleared 
under chapter V of the Federal Food, 
Drug, and Cosmetic Act, or licensed under 
section 351 of this Act, for use as a coun-
termeasure to a chemical, biological, radio-
logical, or nuclear agent identified as a 
material threat under paragraph (2)(A)(ii); 
or 
‘‘(II) for which the Secretary deter-
mines that sufficient and satisfactory clin-
ical experience or research data (including 
data, if available, from pre-clinical and 
clinical trials) support a reasonable conclu-
sion that the countermeasure will qualify 
for approval or licensing after the date of 
a determination under paragraph (5).
‘‘(2)
DETERMINATION
OF
MATERIAL 
THREATS.—
‘‘(A) MATERIAL THREAT.—The Homeland 
Security Secretary, in consultation with the 
heads of other agencies as appropriate, shall on 
an ongoing basis—
‘‘(i)
assess
current
and
emerging 
threats of chemical, biological, radiological, 
and nuclear agents; and
‘‘(ii) determine which of such agents 
present
a
material
threat
against
the 
United States population. 
‘‘(B) PUBLIC HEALTH IMPACT; NECESSARY 
COUNTERMEASURES.—The Secretary shall on 
an ongoing basis—
‘‘(i) assess the potential public health 
consequences of use against the United 
States
population
of
agents
identified 
under subparagraph (A)(ii); and 
‘‘(ii) determine, on the basis of such 
assessment, the agents for which priority 
countermeasures are necessary to protect 
the public health from a material threat. 
‘‘(3) ASSESSMENT OF AVAILABILITY AND AP-
PROPRIATENESS OF COUNTERMEASURES.—The Sec-
retary, in consultation with the Homeland Security 
Secretary, shall assess on an ongoing basis the avail-
ability
and
appropriateness
of
specific
counter-
measures to address specific threats identified under 
paragraph (2). 
‘‘(4) CALL FOR SECURITY COUNTERMEASURES; 
COMMITMENT
FOR
RECOMMENDATION
FOR
PRO-
CUREMENT.—
‘‘(A) PROPOSAL TO THE PRESIDENT.—If, 
pursuant to an assessment under paragraph 
(3), the Homeland Security Secretary and the 
Secretary make a determination that a security 
countermeasure would be appropriate, such Sec-
retaries may jointly submit to the President a 
proposal to—
‘‘(i) issue a call for the development of 
such security countermeasure; and 
‘‘(ii) make a commitment that, upon 
the
first
development
of
such
security 
countermeasure that meets the conditions 
for procurement under paragraph (5), the 
Secretaries will, based in part on informa-
tion obtained pursuant to such call, make 
a recommendation under paragraph (6) 
that the special reserve fund under para-
graph (10) be made available for the pro-
curement of such security countermeasure. 
‘‘(B)
COUNTERMEASURE
SPECIFICA-
TIONS.—The Homeland Security Secretary and 
the Secretary shall, to the extent practicable, 
include in the proposal under subparagraph 
(A)—
‘‘(i) estimated quantity of purchase 
(in the form of number of doses or number 
of effective courses of treatments regard-
less of dosage form); 
‘‘(ii) necessary measures of minimum 
safety and effectiveness; 
‘‘(iii) estimated price for each dose or 
effective course of treatment regardless of 
dosage form; and 
‘‘(iv) other information that may be 
necessary to encourage and facilitate re-
search, development, and manufacture of 
the countermeasure or to provide specifica-
tions for the countermeasure. 
‘‘(C)
PRESIDENTIAL
APPROVAL.—If
the 
President approves a proposal under subpara-
graph (A), the Homeland Security Secretary 
and the Secretary shall make known to persons 
who may respond to a call for the security 
countermeasure involved—
‘‘(i) the call for the countermeasure; 
‘‘(ii) specifications for the counter-
measure under subparagraph (B); and 
‘‘(iii) a commitment described in sub-
paragraph (A)(ii).
‘‘(5) SECRETARY’S DETERMINATION OF COUN-
TERMEASURES
APPROPRIATE
FOR
FUNDING
FROM 
SPECIAL RESERVE FUND.—
‘‘(A) IN GENERAL.—The Secretary, in ac-
cordance with the provisions of this paragraph, 
shall identify specific security countermeasures 
that the Secretary determines, in consultation 
with the Homeland Security Secretary, to be 
appropriate for inclusion in the stockpile under 
subsection (a) pursuant to procurements made 
with amounts in the special reserve fund under 
paragraph (10) (referred to in this subsection 
individually as a ‘procurement under this sub-
section’). 
‘‘(B) REQUIREMENTS.—In making a deter-
mination under subparagraph (A) with respect 
to a security countermeasure, the Secretary 
shall determine and consider the following: 
‘‘(i) The quantities of the product 
that will be needed to meet the needs of 
the stockpile. 
‘‘(ii) The feasibility of production and 
delivery
within
five
years
of
sufficient 
quantities of the product.
‘‘(iii) Whether there is a lack of a sig-
nificant commercial market for the product 
at the time of procurement, other than as 
a security countermeasure. 
‘‘(6) RECOMMENDATION FOR PRESIDENT’S AP-
PROVAL.—
‘‘(A)
RECOMMENDATION
FOR
PROCURE-
MENT.—In the case of a security counter-
measure that the Secretary has, in accordance 
with paragraphs (2), (3), and (5), determined 
to be appropriate for procurement under this 
subsection, the Homeland Security Secretary 
and the Secretary shall jointly submit to the 
President, in coordination with the Director of 
the Office of Management and Budget, a rec-
ommendation
that
the
special
reserve
fund 
under paragraph (10) be made available for the 
procurement of such countermeasure.
‘‘(B) PRESIDENTIAL APPROVAL.—The spe-
cial reserve fund under paragraph (10) is avail-
able for a procurement of a security counter-
measure only if the President has approved a 
recommendation under subparagraph (A) re-
garding the countermeasure.
‘‘(C) NOTICE
TO
CONGRESS.—The Sec-
retary and the Homeland Security Secretary 
shall notify the Congress of each decision of the 
President to approve a recommendation under 
subparagraph (A). Such notice shall include an 
explanation of the decision to make available 
the special reserve fund under paragraph (10) 
for procurement of such a countermeasure, in-
cluding, where available, the identification of 
the potential supplier or suppliers of such coun-
termeasure, and whether other potential sup-
pliers of the same or similar countermeasures 
were considered and rejected for procurement 
under this section and the reasons therefor. 
‘‘(D)
SUBSEQUENT
SPECIFIC
COUNTER-
MEASURES.—Procurement
under
this
sub-
section of a security countermeasure for a par-
ticular purpose does not preclude the subse-
quent procurement under this subsection of any 
other security countermeasure for such purpose 
if the Secretary has determined under para-
graph (5)(A) that such countermeasure is ap-
propriate for inclusion in the stockpile and if, 
as determined by the Secretary, such counter-
measure provides improved safety or effective-
ness, or for other reasons enhances prepared-
ness to respond to threats of use of a biological, 
chemical, radiological, or nuclear agent. Such a 
determination by the Secretary is committed to 
agency discretion. 
‘‘(E)
RULE
OF
CONSTRUCTION.—Rec-
ommendations and approvals under this para-
graph apply solely to determinations that the 
special reserve fund under paragraph (10) will 
be made available for a procurement of a secu-
rity countermeasure, and not to the substance 
of contracts for such procurement or other mat-
ters relating to awards of such contracts. 
‘‘(7) PROCUREMENT.—
‘‘(A) IN
GENERAL.—For purposes of a 
procurement under this subsection that is ap-
proved by the President under paragraph (6), 
the Homeland Security Secretary and the Sec-
retary shall have responsibilities in accordance 
with subparagraphs (B) and (C). 
‘‘(B) INTERAGENCY AGREEMENTS.—
‘‘(i)
FOR
PROCUREMENT.—The 
Homeland Security Secretary shall enter 
into an agreement with the Secretary for 
procurement of a security countermeasure
in accordance with the provisions of this 
paragraph. The special reserve fund under 
paragraph (10) shall be available for the 
Secretary’s
costs
of
such
procurement, 
other than as provided in clause (ii). 
‘‘(ii) FOR ADMINISTRATIVE COSTS.—
The agreement entered into between the 
Homeland Security Secretary and the Sec-
retary for managing the stockpile under 
subsection (a) shall provide for reimburse-
ment
of
the
Secretary’s
administrative 
costs relating to procurements under this 
subsection. 
‘‘(C) PROCUREMENT.—
‘‘(i)
IN
GENERAL.—The
Secretary 
shall be responsible for—
‘‘(I) arranging for procurement 
of a security countermeasure, includ-
ing negotiating terms (including quan-
tity, production schedule, and price) 
of, and entering into, contracts and 
cooperative agreements, and for car-
rying out such other activities as may 
reasonably be required, in accordance
with the provisions of this subpara-
graph; and 
‘‘(II) promulgating regulations to 
implement clauses (v), (vi), and (vii), 
and any other provisions of this sub-
section. 
‘‘(ii) CONTRACT TERMS.—A contract 
for procurements under this subsection 
shall (or, as specified below, may) include 
the following terms: 
‘‘(I) PAYMENT CONDITIONED ON 
SUBSTANTIAL
DELIVERY.—The
con-
tract shall provide that no payment 
may be made until delivery has been 
made of a substantial portion (as de-
termined by the Secretary) of the 
total number of units contracted for, 
except
that,
notwithstanding
any 
other provision of law, the contract 
may provide that, if the Secretary de-
termines (in the Secretary’s discre-
tion) that an advance payment is nec-
essary to ensure success of a project, 
the Secretary may pay an amount, not 
to exceed 10 percent of the contract
amount, in advance of delivery. The 
contract shall provide that such ad-
vance payment is required to be re-
paid if there is a failure to perform 
under the contract, except in special 
circumstances as determined by the 
Secretary on a contract by contract 
basis. 
‘‘(II)
CONTRACT
DURATION.—
The contract shall be for a period not 
to exceed five years, except that, in 
first awarding the contract, the Sec-
retary may provide for a longer dura-
tion, not exceeding eight years, if the 
Secretary determines that complexities 
or other difficulties in performance 
under the contract justify such a pe-
riod. The contract shall be renewable
for additional periods, none of which 
shall exceed five years. 
‘‘(III) STORAGE
BY
VENDOR.—
The contract may provide that the 
vendor will provide storage for stocks 
of a product delivered to the owner-
ship of the Federal Government under
the
contract,
for
such
period
and 
under such terms and conditions as 
the Secretary may specify, and in 
such case amounts from the special 
reserve fund under paragraph (10) 
shall be available for costs of ship-
ping, handling, storage, and related 
costs for such product. 
‘‘(iii) AVAILABILITY
OF
SIMPLIFIED 
ACQUISITION PROCEDURES.—
‘‘(I) IN GENERAL.—The amount 
of any procurement under this sub-
section shall be deemed to be below 
the threshold amount specified in sec-
tion 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 
403(11)), for purposes of application 
to such procurement, pursuant to sec-
tion 302A(a) of the Federal Property 
and Administrative Services Act of 
1949 (41 U.S.C. 252a(a)), of—
‘‘(aa)
section
303(g)(1)(A) 
of the Federal Property and Ad-
ministrative Services Act of 1949
(41 U.S.C. 253(g)(1)(A)) and its 
implementing regulations; and 
‘‘(bb)
section
302A(b)
of 
such Act (41 U.S.C. 252a(b)) 
and its implementing regulations. 
‘‘(II) APPLICATION OF CERTAIN 
PROVISIONS.—Notwithstanding
sub-
clause (I) and the provision of law 
and regulations referred to in such 
clause, each of the following provi-
sions shall apply to procurements de-
scribed in this clause to the same ex-
tent that such provisions would apply 
to such procurements in the absence 
of subclause (I): 
‘‘(aa) Chapter 37 of title 40, 
United States Code (relating to 
contract work hours and safety 
standards). 
‘‘(bb) Subsections (a) and 
(b) of Section 7 of the Anti-Kick-
back Act of 1986 (41 U.S.C. 
57(a) and (b)). 
‘‘(cc) Section 304C of the 
Federal Property and Adminis-
trative Services Act of 1949 (41 
U.S.C. 254d) (relating to the ––
–
examination
of
contractor 
records). 
‘‘(iv) USE OF NONCOMPETITIVE PRO-
CEDURES.—In addition to any other au-
thority to use procedures other than com-
petitive procedures, the Secretary may use 
such other procedures for a procurement 
under this subsection if the product is 
available from only one responsible source 
or only from a limited number of respon-
sible sources, and no other type of product 
will satisfy the Secretary’s needs. 
‘‘(v) PREMIUM
PROVISION
IN
MUL-
TIPLE AWARD CONTRACTS.—
‘‘(I) IN GENERAL.—If, under this 
subsection, the Secretary enters into 
contracts with more than one vendor 
to procure a security countermeasure, 
such Secretary may, notwithstanding 
any other provision of law, include in 
each of such contracts a provision 
that—
‘‘(aa) identifies an increment 
of the total quantity of security 
countermeasure required, wheth-
er by percentage or by numbers 
of units; and 
‘‘(bb) promises to pay one or 
more specified premiums based 
on the priority of such vendors’ 
production and delivery of the in-
crement
identified
under
item 
(aa),
in
accordance
with
the 
terms and conditions of the con-
tract. 
‘‘(II) DETERMINATION
OF
GOV-
ERNMENT’S
REQUIREMENT
NOT
RE-
VIEWABLE.—If the Secretary includes 
in each of a set of contracts a provi-
sion as described in subclause (I), 
such Secretary’s determination of the 
total
quantity
of
security
counter-
measure required, and any amend-
ment of such determination, is com-
mitted to agency discretion. 
‘‘(vi) EXTENSION OF CLOSING DATE 
FOR RECEIPT OF PROPOSALS NOT REVIEW-
ABLE.—A decision by the Secretary to ex-
tend the closing date for receipt of pro-
posals for a procurement under this sub-
section is committed to agency discretion. 
‘‘(vii)
LIMITING
COMPETITION
TO 
SOURCES RESPONDING TO REQUEST FOR 
INFORMATION.—In conducting a procure-
ment under this subsection, the Secretary 
may exclude a source that has not re-
sponded to a request for information under 
section
303A(a)(1)(B)
of
the
Federal 
Property and Administrative Services Act 
of 1949 (41 U.S.C. 253a(a)(1)(B)) if such 
request has given notice that the Secretary 
may so exclude such a source. 
‘‘(8) INTERAGENCY COOPERATION.—
‘‘(A) IN GENERAL.—In carrying out activi-
ties under this section, the Homeland Security 
Secretary and the Secretary are authorized, 
subject to subparagraph (B), to enter into 
interagency agreements and other collaborative
undertakings with other agencies of the United 
States Government. 
‘‘(B) LIMITATION.—An agreement or un-
dertaking under this paragraph shall not au-
thorize another agency to exercise the authori-
ties provided by this section to the Homeland 
Security Secretary or to the Secretary. 
‘‘(9)
RESTRICTIONS
ON
USE
OF
FUNDS.—
Amounts in the special reserve fund under para-
graph (10) shall not be used to pay—
‘‘(A) costs for the purchase of vaccines 
under procurement contracts entered into be-
fore the date of the enactment of the Project 
BioShield Act of 2003; or 
‘‘(B) administrative costs. 
‘‘(10) SPECIAL RESERVE FUND.—For purposes 
of this subsection, the term ‘special reserve fund’ 
has the meaning given such term in section 510 of 
the Homeland Security Act of 2002. 
‘‘(d) DISCLOSURES.—No Federal agency shall dis-
close under section 552, United States Code, any informa-
tion identifying the location at which materials in the 
stockpile under subsection (a) are stored. 
‘‘(e) DEFINITION.—For purposes of subsection (a), 
the term ‘stockpile’ includes—
‘‘(1) a physical accumulation (at one or more 
locations) of the supplies described in subsection (a); 
or
‘‘(2)
a
contractual
agreement
between
the 
Homeland Security Secretary and a vendor or ven-
dors under which such vendor or vendors agree to 
provide to such Secretary supplies described in sub-
section (a). 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) STRATEGIC
NATIONAL
STOCKPILE.—For 
the purpose of carrying out subsection (a), there are 
authorized to be appropriated $640,000,000 for fis-
cal year 2002, and such sums as may be necessary 
for each of fiscal years 2003 through 2006. Such 
authorization is in addition to amounts in the special 
reserve fund under subsection (c)(10). 
‘‘(2) SMALLPOX VACCINE DEVELOPMENT.—For 
the purpose of carrying out subsection (b), there are 
authorized to be appropriated $509,000,000 for fis-
cal year 2002, and such sums as may be necessary 
for each of fiscal years 2003 through 2006.’’. 
(b) AMENDMENT TO HOMELAND SECURITY ACT OF 
2002.—Title V of the Homeland Security Act of 2002 
(116 Stat. 2212; 6 U.S.C. 311 et seq.) is amended by add-
ing at the end the following:
‘‘SEC.
510.
PROCUREMENT
OF
SECURITY
COUNTER-
MEASURES
FOR
STRATEGIC
NATIONAL 
STOCKPILE. 
‘‘(a)
AUTHORIZATION
OF
APPROPRIATIONS.—For 
procurement of security countermeasures under section 
319F–2(c) of the Public Health Service Act (referred to 
in this section as the ‘security countermeasures program’), 
there
is
authorized
to
be
appropriated
up
to 
$5,593,000,000 for the fiscal years 2004 through 2013. 
Of the amounts appropriated under the preceding sen-
tence, not to exceed $3,418,000,000 may be obligated dur-
ing the fiscal years 2004 through 2008, of which not to 
exceed $890,000,000 may be obligated during fiscal year 
2004. 
‘‘(b) SPECIAL RESERVE FUND.—For purposes of the 
security countermeasures program, the term ‘special re-
serve fund’ means the appropriations account established 
as a result of any appropriations made under subsection 
(a). 
‘‘(c) AVAILABILITY.—
‘‘(1) DURATION OF AVAILABILITY FOR OBLIGA-
TION.—Subject to paragraph (2), all amounts appro-
priated under subsection (a) are available for obliga-
tion through the end of fiscal year 2013, provided 
that any portion of such amount that remains unob-
ligated for such purposes on the expiration of such