; liquidation of inventory (1) Duration A contract awarded under this section shall be for a term of no more than 3 years. (2) Liquidation of inventory A drug held in a stockpile pursuant to a contract under this section may be liquidated by the eligible entity at the end of the period of the contract. (e) Stockpile requirements (1) Ensuring availability of unexpired products Each eligible entity with a contract under this section for a stockpile of generic drugs at risk of shortage shall— (A) ensure that each drug maintained in the stockpile has an expiration date at least 1 year beyond the current date; and (B) to comply with subparagraph (A)— (i) sell drugs in the stockpile through normal commercial channels and replace those drugs; or (ii) if there is no commercial market for a drug in the stockpile, dispose of the drug, report such disposal to the Secretary, and replace the drug. (2) Management of stockpile (A) In general Each eligible entity with a contract under this section for a stockpile of generic drugs at risk of shortage shall— (i) acquire not later than 6 months following the date the contract is awarded, and maintain thereafter, a 6-month supply of each type of drug the eligible entity has contracted to stockpile, which 6-month supply shall be in addition to the average levels of inventory held by such eligible entity over the previous year for such drug; and (ii) if it is not possible to comply with clause (i), notify the Secretary, citing the reason why it is not possible and the expected time of acquisition of the drug. (B) Inventory management Each eligible entity with a contract under this section for a stockpile of generic drugs at risk of shortage shall manage inventory to ensure that drugs in the stockpile are efficiently cycled to the commercial market and— (i) may stockpile inventory at the eligible entity’s distribution center with specified inventory amounts virtually reserved for the Federal Government with constant cycling to reduce product expiration