As used in this subpart-
“Nontraditional defense contractor” means a business unit that-
(1) Has entered into an other transaction agreement with DoD; and
(2) Has not, for a period of at least 1 year prior to the date of the other transaction agreement, entered into or performed on-
(i) Any contract that is subject to full coverage under the cost accounting standards described in FAR Part 30; or
(ii) Any other contract exceeding $500,000 to carry out prototype projects or to perform basic, applied, or advanced research projects for a Federal agency that is subject to the FAR.
“Other transaction” means a transaction that-
(1) Is other than a contract, grant, or cooperative agreement;
(2) Is not subject to the FAR or its supplements; and
(3) Is entered into in accordance with 32 CFR Part 3.
