GM To Supply Ventilators Under $489 Million Federal Contract

General Motors Corp GM. will deliver 30,000 ventilators to the Strategic National Stockpile by the end of August under a $489.4 million contract with the U.S. Department of Health and Human Services.

The contract comes after Pres. Donald Trump directed HHS Secretary Alex Azar to invoke the Defense Production Act on March 27 to compel GM to produce the much needed equipment vital for treatment of COVID-19 patients. 

“Invoking the Defense Production Act to secure ventilator production from GM and other companies is a part of President Trump’s all-of-America approach to combating the coronavirus,” said Azar in a statement. “By rating contracts under the DPA, HHS is helping manufacturers like GM get the supplies they need to produce ventilators as quickly as possible, while also ensuring that these ventilators are routed through the Strategic National Stockpile to where they’re needed most.” 

GM had already been working with Bothell, Wash.-based Ventec Life Systems to produce ventilators, serving as a contractor, helping to source parts and offer manufacturing expertise. But the contract with HHS now puts the automaker in the lead for supplying the devices.

“GM and Ventec Life Systems are working with speed and urgency to arm front-line medical professionals with the critical care ventilators they need to treat seriously ill patients,” GM said in a statement. “GM is proud to deploy its purchasing and manufacturing capability alongside the respiratory care expertise of Ventec. We remain dedicated to working with the Administration to ensure American innovation and manufacturing meet the needs of the country during this global pandemic.”