; and (C) requirements for entities receiving an award under this section, including the extent of excess manufacturing capacity the manufacturers will be required to generate, the amount of redundancy required, and requirements relating to advanced quality systems. (3) Preference In awarding contracts and cooperative agreements under subsection (a), the Secretary shall give preference to eligible entities that will carry out the requirements of paragraph (1) through one or more domestic establishments registered under section 510(b) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 360(b) ) capable of manufacturing the eligible drug. To the greatest extent practicable, the Secretary shall award contracts and cooperative agreements with manufacturers in a manner that strengthens domestic manufacturing, resiliency, and capacity of eligible drugs and their active pharmaceutical ingredients. (c) Additional contract and cooperative agreement terms (1) In general Each contract or cooperative agreement under subsection (a) shall be subject to such terms and conditions as the Secretary may specify, including terms and conditions with respect to procurement, maintenance, storage, testing, and delivery of drugs, in alignment with inventory management and other applicable best practices, under such contract or cooperative agreement, which may consider, as appropriate, costs of transporting and handling such drugs. (2) Terms concerning the acquisition, construction, alteration, or renovation of establishments Notwithstanding section 6303 of title 41, United States Code, the Secretary may award a contract or cooperative agreement under this section to support the acquisition, construction, alteration, or renovation of non-federally owned establishments— (A) as determined necessary to carry out or improve preparedness and response capability at the State and local level