How Billion-Dollar Companies May Benefit From One Defense Bill Provision

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The $900 billion National Defense Authorization Act (NDAA) passed by Congress includes a “non-traditional” provision warned by analysts to benefit the United States’ biggest defense contractors. Section 821 of the NDAA stipulates that companies already with billions of dollars’ worth in Pentagon contracts can maintain non-traditional status by keeping research and development costs, as well as bid-and-proposal costs, below $1.1 million. Total DoD revenue overall wouldn’t affect such status. The

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