Schneider Urges Creation of “Supply Chain Czar” to Oversee Federal Response Medical Equipment Shortages Caused by COVID-19

Today, Congressman Brad Schneider (IL-10) urged the creation of a singular emergency COVID-19 medical supply chain authority, or "supply chain czar," to oversee and coordinate federal efforts surrounding the production, acquisition, and national distribution of medical equipment in response to the coronavirus epidemic.

In a letter to Speaker Nancy Pelosi and House Energy & Commerce Chairman Frank Pallone, Schneider requested they include language creating this position in any future congressional legislation addressing the crisis.

In the letter, Schneider highlighted the lack of critical equipment, including personal protective equipment (PPE) and ventilators in Illinois and across the country.

Schneider writes that the scarcity and lack of central coordinating authority has created a desperate situation where states, "compete with each other to meet demand thus driving up prices, as well as subjecting hospitals to price-gouging tactics from suppliers looking to profit off the pandemic. Manufacturers are similarly left to decide between competing orders with minimal direction, possible fraudulent orders, and limited ability to increase production."

"I urge you to immediately remedy this situation by legislating a "supply chain czar" with statutory authority to oversee the manufacturing and distribution of ventilators, PPE, and other critical supplies," writes Schneider.

Full letter text:

Dear Speaker Pelosi and Chairman Pallone,

I want to thank you for your ongoing efforts to stem the spread of the coronavirus disease (COVID-19), ensure testing and care for our most vulnerable citizens, and provide economic relief to businesses crippled by the outbreak. As you consider legislative priorities in any upcoming stimulus packages to address the COVID-19 pandemic, I urge you include the creation of a singular emergency COVID-19 medical supply chain authority (i.e., "supply chain czar"). This authority should establish centralized responsibility to direct and oversee both the production or acquisition and national distribution of medical equipment critical to COVID-19 response.

Our hospitals and providers continue to suffer from a lack of critical equipment, namely ventilators and personal protective equipment (PPE), resulting in substandard care, unsafe work conditions, and increasingly critical staffing shortages. A scarcity of supplies has left states to compete with each other to meet demand thus driving up prices, as well as subjecting hospitals to price-gouging tactics from suppliers looking to profit off the pandemic. Manufacturers are similarly left to decide between competing orders with minimal direction, possible fraudulent orders, and limited ability to increase production.

I urge you to immediately remedy this situation by legislating a "supply chain czar" with statutory authority to oversee the manufacturing and distribution of ventilators, PPE, and other critical supplies. Such authorities could include, but are not limited to the ability to:

• Survey states and hospitals to determine need of critical supplies;
• Monitor the ongoing production and capacity of supplies;
• Mandate production under the Defense Production Act (DPA) of both components and finished product of supplies;
• Become the central purchaser of all critical supplies on behalf of states and the federal government;
• Distribute supplies based on need at the discretion of the czar;
• Report supply gaps and daily progress made in closing the gaps.

Thank you again for your rapid response to this ongoing pandemic. I appreciate your timely and close consideration of this urgent matter.