Capital Edge’s Tip Line #14: 2026 NDAA: Nontraditional Defense Contractors

Capital Edge Tip Line – February 20, 2026

2026 NDAA: Nontraditional Defense Contractors – Edition 14

In this week’s Capital Edge Tip Line, CEO Chad Braley revisits the 2026 National Defense Authorization Act (NDAA), with a specific focus on nontraditional defense contractors.

Key Updates from This Week’s Tip Line

What You Need To Know

What’s happening? The 2026 NDAA had several important changes that will simplify requirements for nontraditional defense contractors. Businesses may consider how to take advantage of these changes to operate in a more commercial manner.

What's being discussed? As part of the new NDAA, nontraditional defense contractors are now exempt from:

• DFARS business systems requirements.
• DFARS 215.407, or the successor regulation around areas such as defective pricing, FPRAs, and should-cost reviews.
• 10 USC 3702, meaning they’d no longer need to submit certified cost and pricing data.
• FAR Part 31, or the successor regulation pertaining to the cost principles.

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