CDC VACCINE STOCKPILE FISCAL AND MANAGEMENT ISSUES

1
CDC VACCINE STOCKPILE FISCAL AND MANAGEMENT ISSUES

• A Presentation At The National Vaccine Advisory
  Committee Meeting
• February 4, 2003

Kimberly S. Lane Associate Director for
Management and Operations National
Immunization Program
2
Overview

• Legal Authority
• Budget
• Purchase Timetable
• Accountability

3
Legal Authority

• OBRA 1993 legislation authorized DHHS to procure
  an adequate supply of vaccine.
• GAO recommendation - specifically address
  whether vaccines stockpiled under this program
  may be made available to children not otherwise
  eligible.
• HHSs Office of General Counsel reviewed this
  issue and confirmed the Secretarys authority
  under current law to establish a VFC stockpile of
  vaccines equal to the amount needed for the U.S.
  pediatric population for 6 months.

4
VFC Stockpile Fiscal Update

• FY 2001 and 2002 - 29M
• FY 2004 Presidents Budget - 124M
• FY 2003 Presidents Budget (approved January
  2002) - 29M
• December 2002 Budget Negotiations with HHS and
  OMB secured additional FY 2003 funding - 143M
  for a total of 172M
• January 2003 OMB approved a 4-year stockpile
  purchase plan in the amount of 707M

5
VFC Stockpile Fiscal Update

• Estimated 4-year stockpile purchase plan
• FY 2003 - 172M
• FY 2004 - 124M
• FY 2005 - 206M
• FY 2006 - 206M
• Assumption 6 month national supply of
  recommended childhood vaccine based on estimated
  quantities of vaccine that the manufacturers can
  produce by 2006. Manufacturer estimates provided
  in September 2002.

6
VFC Stockpile Fiscal Update

• Contract award for the development of stockpile
  strategic plan in February 2003.
• Strategic Plan may alter current stockpile cost
  estimates
• New vaccines recommended by ACIP may alter
  current stockpile cost estimates

7
CDCs Estimated Purchase Timetable (Sept. 2002)
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Accountability

• Stockpile purchase and storage/rotation contract
  modifications based on
• New CDC Strategic Plan
• Office of General Counsel Expertise
• Financial Management/Accounting Expertise
• Stockpile Access
• Manufacturer borrowing
• Official withdrawals
• 317 and VFC orders authorized
• Resale to manufacturer for private sector
  purchases

9
Accountability

• Financial Transactions
• Automation via NIPs new Vaccine Management
  Enterprise System
• Transaction process included in new HHS Unified
  Financial Management System
• Account transaction Standard Operating Procedures
  (SOPs) due to multiple funding sources (317, VFC
  and manufacturer resale)

10
Conclusions

• Expansion of the CDC stockpile is imminent
• Strong support from HHS and OMB
• Legal Authority exists under current law
• 4-year 707M estimated cost
• Enhanced program accountability