To require a local hiring preference for certain defense contracts and subcontracts performed in or near labor surplus areas and closing military bases.

Requires each contract or subcontract entered into by the Department of Defense during FY 1995 for construction services to be performed in whole or in part in, or within 30 miles of, a labor surplus area and within 30 miles of a military installation approved for closure or realignment to include provisions requiring the contractor or subcontractor to employ individuals who: (1) are residents of such labor surplus area or the county in which such area is located; and (2) possess or would be able to acquire promptly the necessary skills for any craft or trade needed to perform the contract or subcontract.

Authorizes the Secretary of Defense to: (1) waive such requirement if it would be inconsistent with the national security objectives of the United States; and (2) allow a contractor to make an exception in the case of a particular craft or trade if there is no individual residing or available for hire in the labor surplus area or county who possesses the skills for that craft or trade.