Department of Defense Privatization and Outsourcing Moratorium Act

Department of Defense Privatization and Outsourcing Moratorium Act - Prohibits any commercial or industrial type function currently being performed by Department of Defense (DOD) civilian employees from being converted to performance by the private sector until five years after the Secretary of Defense certifies to Congress that all actions necessary to carry out the 1995 round of military base closures and realignments under the Defense Base Closure and Realignment Act of 1990 have been completed. Makes an exception for such a function being converted, or being considered for conversion, to private performance under a DOD strategic sourcing or business process and re-engineering plan.

Requires the Secretary to report to Congress evaluating: (1) each conversion that was carried out since October 1, 1996; and (2) each function that was considered for conversion since such date, but not converted.

Directs the Secretary, on account of such moratorium, to provide for an adjustment in the operating budgets of the armed forces and military installations to compensate for the fact that such budgets were previously reduced to reflect savings anticipated from the conversion of such functions to private sector performance.