National Stockpiles: Background and Issues for Congress

National Stockpiles: Background and Issues for Congress

June 15, 2020
National Stockpiles: Background and Issues for Congress
The United States maintains several distinct stockpiles of
request assets and are generally responsible for receiving,
supplies, equipment, and raw materials that may be used for
staging, distributing, and dispensing assets. However, in the
a national emergency, military operation, or other natural
current COVID-19 response, the Federal Emergency
disaster or manmade event where commercial supply and
Management Agency (FEMA) is coordinating allocation
distribution are unavailable. Some of these stockpiles were
and delivery of SNS assets. Examples of assets stockpiled
established by Congress in law, while others began as
include: antibiotics, anti-bioterrorism vaccines (e.g.,
policy-driven initiatives of federal departments and
smallpox and anthrax vaccines), personal protective
agencies. In general, there are two types of stockpiles that
equipment (PPE), and ventilators. SNS storage sites are
the U.S. government owns and manages: (1) those intended
geographically distributed across the United States to
to support a subset of the general public in an emergency
enable the delivery of initial assets within 12 hours of a
(i.e., public stockpiles) and (2) those intended to support the
request (typically made by a state governor). HHS provides
national defense during a war or other type of military
SNS assets at no cost to receiving authorities.
operation (i.e., defense stockpiles).
Prior to the 2020 COVID-19 pandemic, the SNS contained
Typically, a single federal department (including military
about $8 billion of medical assets. Figure 1 shows SNS
departments) is responsible for managing each stockpile.
funding and asset deployment history.
Within departments, stockpiles are often supported by one
Figure 1. SNS Funding and Deployments
or more logistics organizations that provide procurement,
storage, transportation, disposal, and/or other technical
In millions of FY2019 dollars
services to stockpile managers. The degree to which
stockpile managers store certain goods, instead of relying
on pre-negotiated or rapidly executed contracts to deliver
goods in an emergency, varies. Stockpile managers often
consider several factors when making a decision to
stockpile, including: statutory requirements, forecasted
commercial availability of a product/material, anticipated
loss of suppliers in a certain geographic area during an
emergency, forecasted demand during peacetime and
emergencies, the rareness or criticality of a material, and a
department’s overall stockpiling strategy.
Examples of Public Stockpiles
Federally owned public stockpiles are meant to be deployed
when a domestic emergency overwhelms local or state
supplies. Additionally, they may contain specialized assets,
such as smallpox vaccines unlikely to be stockpiled locally.

Source: Department of Health and Human Services; CRS Graphics.
The Strategic National Stockpile (SNS)
In 1999, the Department of Health and Human Services
According to 42 U.S.C. §247d–6b, HHS is required to
(HHS) established a stockpile of vaccines and antidotes to
provide Congress an annual threat-based assessment of the
respond to biological or chemical agent attacks on the
sufficiency of stockpile contents.
United States. In 2002, Congress named this initiative the
“Strategic National Stockpile” and expanded its mission “to
Veterans Health Administration (VHA) Al -
provide for the emergency health security of the United
Hazards Emergency Cache (AHEC)
States … in the event of a bioterrorist attack or other public
The Department of Veterans Affairs (VA) VHA maintains
health emergency” (see Title 42, U.S. Code [U.S.C.]
its own stockpile (otherwise caches) of drugs and medical
§247d–6b). According to HHS, the SNS contains
supplies at VA medical facilities . Its contents are meant for
“potentially life-saving pharmaceuticals and medical
local VA “facility Veterans and staff during the initial 48
supplies for use in a public health emergency in which local
hours of a major catastrophic emergency.” These caches
supplies have been or may be depleted.”
serve to bridge any gap between what might be available
on-hand at local VA medical facilities, and what other
The HHS Assistant Secretary for Preparedness and
resources such as the SNS could provide.
Response (HHS/ASPR) manages the SNS, including
procurement, storage, deployment, and replenishment of
As established by VA policy, each cache (formally AHEC)
supplies (otherwise SNS assets). State and local authorities
is considered both a federal and community asset. The VA
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National Stockpiles: Background and Issues for Congress
Under Secretary for Health decides which medical facilities
Army Medical Materiel Agreement (AMMA) Sites
will have a cache—which consists of a standard supply of
Separate from the Service-maintained WRM, the Services
38 drugs and 44 medical supplies—though quantities differ
may also enter into agreements to store other materiel. For
between large and small caches. Products generally
example, the Department of the Army has a performance-
available include: antibiotics, antivirals, chemical
based agreement with DLA called the AMMA. AMMA is
countermeasures, emergency medications, intravenous (IV)
“a formalized partnership between DLA and the Army
fluids, wound care, and PPE. In 2018, the VA reported
Medical Command which grants designated army activities
there were 141 caches (91 large/50 small) located at VA
access to, and use of, DLA’s working capital fund.” This
medical facilities across the United States and its territories.
agreement allows the Army to use DLA funds to purchase
medical materiel for storage at Army distribution sites (i.e.,
Examples of Department of Defense
AMMA sites); however, ownership of the materiel remains
(DOD) Stockpiles
with DLA. In a medical-related emergency, AMMA site
DOD maintains a range of stockpiles for defense needs in
stocks can be made available to support DOD. As of 2016,
times of war and for other contingencies. These stockpiles
there are four Army hospitals designated as AMMA sites,
vary significantly in types and quantities of Government
three of which are overseas.
Purchased Materiel (GPM) stored. In general, DOD has
opted to apply a “just-in-time” logistics strategy across the
Issues for Congress
Department for manufactured products, which reduces the
 Limitations of Stockpiles. In an emergency, stockpiled
amount of GPM stockpiled in favor of commercial-reliant
items are typically expended at a rate relative to the size
solutions, such as direct vendor delivery, prime vendor
of the demand. If the demand is beyond what a stockpile
contracting, and contingency contracts (i.e., “readiness
was designed to support over a set period of time, then
contracts”) for times that military-held stocks are depleted.
stocks may be depleted at a rate higher than anticipated.
The National Defense Stockpile (NDS)
In this case, the lead agency in an emergency may need
to prioritize consumers of government stockpiles. In
Established under 50 U.S.C. §98 et seq., the NDS is a raw
addition, procuring new items to replace expenditures,
materials-based stockpile meant to decrease or prevent
“
as well as maintaining an inventory of items that expire,
dependence upon foreign and single points of supply for
requires regular congressional funding and oversight.
strategic and critical materials needed in times of national
emergency.” DOD currently stockpiles in the NDS 42
 Just-in-Time (JIT) vs. Just-in-Case (JIC) Logistics.
commodities that are critical to defense needs. The Under
Federal departments can have different management
Secretary of Defense for Acquisition and Sustainment
strategies for stockpiles. Two common ones are JIT and
(USD(A&S)) is the Stockpile Manager for the NDS and the
JIC logistics. JIT logistics is contractor-reliant and its
Defense Logistics Agency (DLA) implements the NDS
credited benefits are increased efficiency and reduced
program (i.e., day-to-day management). DOD is required to
costs. Its drawbacks are delayed delivery of goods when
provide to Congress a biennial report on stockpile
commercial stocks are exhausted and manufacturing
requirements, and an annual report on stockpile operations
disruptions if essential civilian workers are unavailable.
and planning. Examples of materials stockpiled include:
Conversely, JIC logistics relies on purchased and stored
boron carbide, magnesium, vanadium, and yttrium.
reserves to satisfy demand and its benefits are direct
possession and guaranteed delivery of goods. Its stated
War Reserve Materiel (WRM) Stocks
drawbacks are increased costs and personnel.
Each military service (hereafter “Service”), with support
from DLA, maintains its own stock of war reserve materiel
Relevant Statutes
(WRM) to support the immediate needs of military
Title 42, U.S. Code §247d–6b. [SNS]
departments across a spectrum of contingencies. DOD
defines WRM as “mission-essential secondary items,
Title 50, U.S. Code §98 et seq. [NDS]
principal and end items , and munitions sufficient to attain
Title 10 U.S. Code §2229 and 2229a. [PWRM]
and sustain operational objectives in scenarios” authorized

by DOD. Examples of WRM include: spare parts, medical
supplies and equipment, fuel, clothing, and combat rations.
CRS Products
According to the Government Accountability Office
CRS Report R46340, Federal Response to COVID-19:
(GAO), WRM can be “prepositioned overseas or aboard
Department of Veterans Affairs, coordinated by Sidath Viranga
ships, stored in DOD warehouses as part of general-issue
Panangala and Jared S. Sussman
stocks, or obtained from the commercial market.”

WRM that is pre-positioned (or PWRM) is “strategically
Other Resources
located to facilitate a timely response in support of CCDR
[combatant commander] requirements during the initial
HHS, Receiving, Distributing, and Dispensing Strategic National
phases of an operation.” Pursuant to 10 U.S.C. §2229a,
Stockpile Assets: A Guide to Preparedness, Version 11.
DOD must report the status of PWRM to Congress
VHA Directive 1047, Al -Hazards Emergency Cache Program
annually. The USD(A&S) is responsible for establishing
DOD Instruction 3110.06, War Reserve Materiel
DOD-wide policy and guidance for all WRM.

G. James Herrera, Analyst in U.S. Defense Readiness and
Infrastructure
https://crsreports.congress.gov

National Stockpiles: Background and Issues for Congress

IF11574
Frank Gottron, Specialist in Science and Technology
Policy

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