; or (B) for the production of drugs, devices, and supplies where the Secretary determines that such a contract or cooperative agreement is necessary to ensure sufficient amounts of such drugs, devices, and supplies. (d) Requirements in awarding contracts To the greatest extent practicable, the Secretary shall award contracts and cooperative agreements under this section in a manner that— (1) maximizes quality, minimizes cost, minimizes vulnerability of the United States to severe shortages or disruptions for eligible drugs and their active pharmaceutical ingredients, gives preference to domestic manufacturers, and encourages competition in the marketplace; and (2) increases domestic production surge capacity and reserves of domestic-based manufacturing establishments for critical drugs and active pharmaceutical ingredients of such drugs. (e) Definitions In this section: (1) Active pharmaceutical ingredient The term active pharmaceutical ingredient has the meaning given such term in section 744A of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 379j–41 ). (2) Drug The term drug has the meaning given such term in section 201(g) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 321(g) ). (3) Drug shortage; shortage The term drug shortage or shortage has the meaning given such term in section 506C of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 356c ). (4) Eligible drug The term eligible drug means a drug, as determined by the Secretary, in coordination with the with Assistant Secretary for Preparedness and Response, the Director of the Centers for Disease Control and Prevention, and the Commissioner of Food and Drugs— (A) that is approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 355(j) ) or licensed under section 351(k) of the Public Health Service Act ( 42 U.S.C. 262(k) ); (B) (i) that is reasonably likely to be required to respond to a public health emergency or to a chemical, biological, radiological, or nuclear threat