Clarification of conditions for payments for commercial products and commercial services

Section 3805 of title 10, United States Code, is amended— (1) in subsection (d)— (A) by striking The conditions and inserting (1) The conditions; and (B) by adding at the end the following new paragraph: (2) For the purposes of section 3803 of this title, a payment for covered services acquired through a commercially utilized acquisition strategy shall not be considered an advance payment made under section 3801 of this title.; and (2) by adding at the end the following new subsection: (e) Definitions In this section: (1) The term commercially utilized acquisition strategy means an acquisition of a service by the head of an agency under terms and conditions that— (A) are similar to the terms and conditions under which such service is available to the public; and (B) provide such service— (i) as a consumption-based solution (as defined in section 3605 of this title); or (ii) under a technology subscription model or other model based on predetermined pricing for access to such service. (2) The term covered service means a commercial service that includes access to or use of any combination of hardware, equipment, software, labor, or services, including access to commercial satellite data and associated services, that is integrated to provide a capability..