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DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement the requirements of sections 877 and 878 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017 and further implement section 848 of the NDAA for FY 2018. The rule requires that items valued at less than $10,000 and purchased by a contractor for use in the performance of multiple contracts with DoD and other parties and are not identifiable to any particular contract be treated as a commercial item. In addition, the rule requires that services provided by a business unit that is a nontraditional defense contractor (as that term is defined in 10 U.S.C. 2302(9)) be treated as commercial items, to the extent that such services use the same pool of employees as used for commercial customers and are priced using methodology similar to methodology used for commercial pricing. Section 848 addresses that a contract for an item using Federal Acquisition Regulation part 12 procedures shall serve as a prior commercial item determination.