AFAICT this has very little to do with the military. Quoting from the actual bill:

(A) IN GENERAL.—This Act shall not apply to classified source code or source code developed primarily for use in a national security system (as defined in section 11103 of title 40, United States Code).

(B) NATIONAL SECURITY.—An exemption from the requirements under section 3 shall apply to classified source code or source code developed—

(i) primarily for use in a national security system (as defined in section 11103 of title 40, United States Code); or

(ii) by an agency, or part of an agency, that is an element of the intelligence community (as defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4)).