To amend title 10, United States Code, to prohibit any individual convicted of contract-related fraud and any suspended or debarred contractor from entering into subcontracts with defense contractors.

Places additional prohibitions on individuals convicted of felonies in connection with Department of Defense (DOD) contracts. Disallows such individuals from having any contact with defense subcontracts or subcontractors during such prohibition.

Prohibits the Secretaries of the military departments from allowing (current law prohibits the approval of) the award of DOD subcontracts to suspended or debarred contractors.

Directs the heads of defense agencies, in awarding contracts, to require each subcontractor to certify that he or she: (1) is not, at the time of such award, debarred, suspended, proposed for debarment, or declared ineligible for the award of subcontracts by any Federal agency; and (2) has not been convicted of any felony arising out of a DOD contract during the five years preceding such certification.