A bill to promote cost-savings and efficiency in government by providing for an independent contract study of certain proposed major expenditures before a final decision is made to proceed with such expenditures.

Requires the Secretary of Defense to provide for an independent analysis by a private contractor of any major new defense system before a final decision is made to procure such system. Requires that the analysis contain conclusions regarding the impact of the proposed defense system on the public sector and other defense programs.

Directs the Secretary to give preference to private contractors whose personnel are not largely composed of retired military or retired civilian employees of the Department of Defense.

Provides for a seven-member panel to review each proposed contract and determine the suitability of the proposed contractor. Prohibits the Secretary from awarding a contract to other than a contractor approved by the panel.