To amend the Federal Property and Administrative Services Act of 1949 and title 10, United States Code, to require as a term in each contract for property or services made by an executive agency that the contractor (and any subcontractors under that contract) shall comply with the workmen's compensation laws of each State in which the contract is performed.

Amends the Federal Property and Administrative Services Act of 1949 and specified defense procurement provisions to require each contract for the purchase of property or services made by an executive agency to provide: (1) that the prime contractor and any subcontractor thereof shall guarantee to comply with State workmen's compensation laws; and (2) for the termination of the right of the offending contractor or subcontractor to proceed with the work being carried out in a State in which compliance with such a law is not demonstrated, subject to specified requirements.

Makes specified exceptions to such provisions under the Defense Base Act and the Longshore and Harbor Workers' Compensation Act.

Authorizes the President to suspend operation of this Act in the event of a national emergency.