Armed Services Procurement Policy Act of 1981

Armed Services Procurement Policy Act of 1981 - Permits the Secretary of a military department to acquire services and property by any kind of contract, excluding cost-plus-a-percentage-of-cost contracts, but including multiyear contracts of not more than five years. Sets forth the factors the Secretary should consider in entering into such contracts, including the national security interests of the United States, the continuing requirement for the items to be purchased, and whether furnishing such items requires a substantial investment in plant or equipment by the contractor.

Directs the Secretary to notify the appropriate committees of Congress whenever any military contract contains a cancellation ceiling in excess of $50,000,000. Requires the cancellation of multiyear contracts if funds are not made available in subsequent fiscal years. Sets forth payment procedures for the costs of such cancellation.

Directs the Secretary of Defense and the Director of the Office of Management and Budget to modify regulations to conform with this Act. Amends the Department of Defense Appropriation Authorization Act, 1976 to make conforming changes.