To provide for funding for Federal employee pay adjustments and comparability payments through reductions in agency spending on service contracts for fiscal year 1996.

Reduces by $2 billion the amount of FY 1996 executive branch appropriations available for entering into service contracts and increases by the same amount the funds available for pay schedule adjustments and locality-based comparability payments.

Requires: (1) the Director of the Office of Management and Budget to allocate the reductions and increases among the appropriate accounts and to report to the Congress on such allocations; (2) each department, agency, and instrumentality in the executive branch to submit to the Director, within 90 days after the end of FY 1996, a certification of compliance with this Act in accordance with the required allocations; and (3) the Director to report to the Congress on such certifications.