A bill to require the Secretary of Defense to conduct a systematic cost-effectiveness review before contracting for personal services.

Requires the Secretary of Defense, before entering into any contract for more than $100,000 for the performance of any commercial or industrial activity of the Department, to conduct a cost effectiveness review of such activity to determine whether it should be done by contract or by Government personnel. Authorizes the Secretary to waive such review under specified circumstances. Directs the Secretary to conduct random audits of such contracts.