The 2016 National Defense Authorization Act changed the nontraditional definition from the two condition definition referenced in the question to the following: “An entity that is not currently performing and has not performed, for at least the one-year period preceding the issue date of the Request for Prototype Proposals, 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.” Organizations with SBIRs should still qualify as a non-traditional.