A bill to amend title 5, United States Code, to establish certain requirements for the procurement by contract of certain services which are reserved for performance by preference eligibles in in the competitive service.

Prohibits a Federal agency from procuring by contract any services performed by Federal employees in the competitive service positions of guards, elevator operators, messengers, and custodians if such procurement would: (1) cause the involuntary separation of a preference eligible from any such position; or (2) preclude the performance of any such service by a qualified preference eligible. Provides that neither an involuntary reassignment within the same agency nor an involuntary transfer to another agency shall be considered to be an involuntary separation if such reassignment or transfer is to a vacant position which is the same type, at the same or higher pay, within the same commuting area, and for which the preference eligible is qualified.

Allows the procurement of such services by contract: (1) when qualified preference eligibles are not available; and (2) for positions held by employees other than preference eligibles. Requires that any such procurement be conducted in accordance with applicable Federal procurement laws, including specified provisions requiring certain procurements of services from qualified nonprofit agencies for the blind and for other severely handicapped.