As global supply chains face increasing scrutiny due to national security concerns, the BIOSECURE Act has emerged as a significant legislative response. This act aims to bolster U.S. biosecurity by restricting federal funding and contracts with biotechnology companies deemed as risks, particularly those connected to foreign adversaries.
Here’s what you need to know about this pivotal legislation.
What is the BIOSECURE Act?
The BIOSECURE Act, introduced in the U.S. House of Representatives and the Senate in May 2024, seeks to enhance the nation’s biosecurity by prohibiting federal funding or contracts with certain biotechnology companies. This legislation is particularly focused on companies that have ties to nations of concern, which include China, Russia, Iran, North Korea, Cuba, and Venezuela.
The act was born out of concerns over the potential risks that foreign entities pose to U.S. biosecurity, particularly highlighted during the COVID-19 pandemic. The pandemic underscored vulnerabilities in supply chains, especially in the biotech sector, where collaboration with foreign companies can present significant national security threats. The BIOSECURE Act aims to mitigate these risks by enforcing stricter controls on federal funding and contracts.
Some key features and provisions of the BIOSECURE Act include:
- Designation of Companies of Concern: The act grants authority to the Office of Management and Budget (OMB) and the Department of Defense to designate biotechnology companies that may pose national security risks. Once designated, these companies are placed on a restricted list, effectively barring them from receiving federal support.
- Waiver Mechanism: The BIOSECURE Act includes a provision that allows federal agencies to grant waivers for up to 365 days for specific companies to continue operations with federal contracts if it is deemed in the interest of national security. This allows for some flexibility in the application of the act while still prioritizing its goals.
- Implications for Supply Chains: The restrictions imposed by the BIOSECURE Act may prompt U.S. companies to reevaluate their supply chain partnerships, particularly with foreign firms linked to the designated companies. This could lead to increased costs and delays in the production of critical goods, potentially impacting drug availability.
How Sayari Map Can Address the BIOSECURE Act
For businesses navigating the implications of the upcoming BIOSECURE Act, Sayari offers a solution that enhances supply chain transparency and ensures teams can mitigate risks with ease. Sayari Map empowers supply chain risk management, responsible sourcing, sustainability, and procurement teams to quickly map upstream and downstream supply chains, identify supply chain risk, and build comprehensive risk adjudication and monitoring workflows. With Sayari Map, companies can perform due diligence on their partners and suppliers, ensuring they aren’t working either directly or indirectly with any of the designated companies of concern.
The BIOSECURE Act marks a significant shift in U.S. policy regarding supply chain security in the biotechnology industry. As this act progresses through Congress, stakeholders in the biotechnology and pharmaceutical sectors must stay informed about its implications for their operations. For more information on how Sayari Map can help you remain in compliance, watch our webinar “Introducing Sayari Map: Automated Supply Chain Mapping and Risk Identification.”