A “Non-traditional defense contractor” is defined by statute as “an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation sources by the Department of Defense for the procurement or transaction, any contract or subcontract for the Department of Defense that is subject to the full coverage under the cost accounting standards prescribed pursuant to Section 1502 of title 41 and the regulations implementing such section.”  In plainspeak, if your firm is obligated to follow government accounting standards (is DCAA compliant), then you are a traditional firm.  If you have never heard of DCAA, then assume your firm is a non-traditional.