According to statute, a nontraditional defense contractor is defined as an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation of sources by the Department of Defense for the procurement or transaction, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41 and the regulations implementing such section.

To summarize, in order to be considered a nontraditional defense contractor:

Your company cannot be currently performing a contract or subcontract that is subject to full coverage under the cost accounting standards (CAS); and,

Your company has not performed a contract or subcontract subject to full coverage under the CAS within one-year of RFS release.