EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDIARIES, AND AFFILIATES.

SEC. 1208. EXCEPTION FOR TRANSFERS BETWEEN DIVISIONS, SUBSIDIARIES, AND AFFILIATES. Subsection (i) of section 2306a of title 10, United States Code, as redesignated by section 1204(1), is amended to read as follows: “(i) Definitions.— In this section: “(1) Cost or pricing data.— The term ‘cost or pricing data’ means all facts that, as of the date of agreement on the price of a contract (or the price of a contract modification), or, if applicable consistent with subsection (e)(1)(B), another date agreed upon between the parties, a prudent buyer or seller would reasonably expect to affect price negotiations significantly. Such term does not include information that is judgmental, but does include the factual information from which a judgment was derived. “(2) Subcontract.— The term ‘subcontract’ includes a transfer of commercial items between divisions, subsidiaries, or affiliates of a contractor or a subcontractor. “(3) Commercial item.— The term ‘commercial item’ has the meaning provided such term in section 4(12) of the Office of Federal Procurement Policy Act.”.