(A) Before award of the contract, the con-
tractor shall provide cost estimates of salary, 
insurance, materials, logistics, travel, adminis-
trative costs, and other costs of carrying out 
the contract. 
(B) Before contract closeout, the con-
tractor shall provide a report on the actual 
costs of carrying out the contract, in the same 
categories as provided under subparagraph (A). 
(3) CASUALTY REPORTING.—Each covered con-
tract shall require full reporting by the contractor of 
all personnel casualties in carrying out the contract. 
(4) OVERSIGHT.—Before a covered contract is 
awarded, the head of the agency awarding the con-
tract shall ensure that sufficient funds are available 
to enable contracting officers of the agency to per-
form oversight of the performance of the contract. 
(5) WAIVER
AUTHORITY.—The head of the 
agency awarding a covered contract may waive a re-
quirement of this section with respect to a contract 
in an emergency or exceptional situation, as deter-
mined by the head of the agency. Any such waiver 
shall be limited to the requirements that are impos-
sible or impracticable to implement because of the 
emergency or exceptional situation. In any case in
which the head of an agency waives a requirement 
under this section with respect to a contract, the 
agency head shall submit to Congress a report, with-
in 30 days after the date of award of the contract, 
that describes the contract, the waiver, the emer-
gency or exceptional situation that justified the 
waiver, and a plan for bringing the contract into 
compliance with the waived requirements as soon as 
possible or an explanation of why the waiver needs 
to be permanent. 
(6) FAR REVISIONS.—Not later than 120 days 
after the date of the enactment of this Act, the Fed-
eral Acquisition Regulation shall be revised to imple-
ment the provisions of this subsection. 
(b) REQUIREMENTS
OF
THE SECRETARY
OF DE-
FENSE RELATING TO CONTRACTS WITH PRIVATE SECU-
RITY CONTRACTORS.— 
(1) HIRING STANDARDS RELATING TO PRIVATE 
SECURITY CONTRACTORS.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall prescribe in regulations min-
imum standards for the persons that private security 
contractors may hire for the performance of any cov-
ered contract. The standards may vary based on the 
duties of personnel, but must address past criminal
activity, security clearance requirements, and other 
issues the Secretary determines may lead to security 
or performance concerns. 
(2) COMPARATIVE ANALYSIS.—Before a Federal 
agency enters into a covered contract, the Secretary 
of Defense shall perform a cost and effectiveness 
analysis for every category of potential activity that 
may be carried out by the private security contractor 
under the contract, comparing the cost and effective-
ness that would be associated with the same activi-
ties being carried out by civilian employees of the 
Department of Defense or members of the Armed 
Forces. The Secretary shall ensure, as part of the 
analysis, that the overall military mission would not 
be significantly affected if the contractor personnel 
refused to perform work as required under the con-
tract. 
(c) DEFINITIONS.—In this section: 
(1) COVERED CONTRACTS.—The term ‘‘covered 
contract’’ means a contract entered into by the Fed-
eral Government with a private security contractor, 
except that, in the case of a task or delivery order 
contract entered into by the Federal Government 
with a private security contractor, the term means 
a task order issued under the contract.