A bill to require the Secretary of Defense to complete cost comparisons within two years under OMB Circular A-76 for all automated data processing and data entry functions in the Department of Defense and to require contracting out of such functions in cases in which cost savings will result.

Requires the Secretary of Defense to compare the costs of performance by Department of Defense civilian employees and by a private contractor of all automated data processing functions and data entry functions of the Department. Specifies that the procedures and requirements of Office of Management and Budget Circular A-76 shall be used in making such comparison.

Requires the Secretary to contract with a private contractor for the performance of such functions if private contractor performance will result in a cost savings to the Government over the life of the contract.