TREATMENT OF SERVICES PROVIDED BY NONTRADITIONAL CONTRACTORS AS COMMERCIAL ITEMS.

SEC. 878. TREATMENT OF SERVICES PROVIDED BY NONTRADITIONAL CONTRACTORS AS COMMERCIAL ITEMS. (a) In General.—Section 2380A of title 10, United States Code, is amended— (1) by striking “Notwithstanding” and inserting the following: “(a) Goods and Services Provided by Nontraditional Defense Contractors. Notwithstanding” ; and (2) by adding at the end the following new subsection: “(b) Services Provided by Certain Nontraditional Contractors. Notwithstanding section 2376(1) of this title, services provided by a business unit that is a nontraditional defense contractor (as that term is defined in section 2302(9) of this title) shall be treated as commercial items for purposes of this chapter, to the extent that such services use the same pool of employees as used for commercial customers and are priced using methodology similar to methodology used for commercial pricing.” . (b) Conforming Amendments.— (1) Section heading.—Section 2380A of title 10, United States Code, as amended by subsection (a), is further amended by striking the section heading and inserting the following: “SEC. 2380a. Treatment of certain items as commercial items” . (2) [10 U.S.C. 2375] Table of sections.—The table of sections at the beginning of chapter 140 of title 10, United States Code, is amended by striking the item relating to section 2380A and inserting the following new item: “2380a. Treatment of certain items as commercial items.” .