On Tuesday, the Department of Health and Human Services (HHS) announced it had signed a four-year, $354 million contract with Phlow Corporation. The company, based in Richmond, Virginia, will produce drug ingredients to make "critical medicines to help alleviate or prevent drug shortages" amid COVID-19. Facilities across the U.S. are expected to manufacture the drug ingredients. According to HHS Secretary Alex Azar, this is a "significant step to rebuild our domestic ability to protect ourselves from health threats by utilizing American-made ingredients and creating new American jobs in the process." HHS Secretary Alex Azar HHS Secretary Alex Azar According to HHS, the contract can be extended for up to a total of $812 million over 10 years. The contract comes after President Trump announced a new partnership to develop a COVID-19 vaccine last week.