A bill to amend chapter 137 of title 10, United States Code, to impose certain requirements on the awarding of sole-source contracts by the military departments.

Restricts the authority of the head of a defense agency to award a sole-source contract. Permits the Secretary of Defense to waive specified requirements in the interests of national security. Excludes from such restrictions classified procurements and the procurement of utility services, perishable commodities, emergency and other specified procurement situations.

Requires the Secretary of Defense to report annually to the appropriate committees of Congress on specified sole-source contracts.